Relates to regulatory penalties for small businesses; provides that upon an initial violation of a state agency's rules or regulations, a small business shall be afforded a cure period or other opportunity for ameliorative action, which if successful shall prevent the imposition of a fine or fines.
STATE OF NEW YORK
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5815--C
Cal. No. 1349
2019-2020 Regular Sessions
IN SENATE
May 15, 2019
___________
Introduced by Sens. KAPLAN, AKSHAR, LIU -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Finance --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
committee discharged and said bill committed to the Committee on Rules
-- reported favorably from said committee, ordered to a third reading,
passed by Senate and delivered to the Assembly, recalled, vote recon-
sidered, restored to third reading, amended and ordered reprinted,
retaining its place in the order of third reading
AN ACT to amend the executive law, in relation to regulatory fines for
small businesses
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The executive law is amended by adding a new section 170-c
2 to read as follows:
3 § 170-c. Regulatory penalties for small businesses. 1. Unless explic-
4 itly exempted or excluded by any other law, rule or regulation, upon a
5 first time violation of a state agency's rules or regulations related to
6 paperwork submitted to a state agency or actions or omissions that are
7 de minimus, a small business shall be afforded a cure period or other
8 opportunity for ameliorative action if the violation can be corrected,
9 the successful completion of which will prevent the imposition of penal-
10 ties on the party or parties subject to enforcement. However, no waiver
11 of penalties or cure period or other opportunity for ameliorative action
12 may be given if the agency determines that the violation resulted in a
13 natural resource damage claim or serious actual harm, or may have
14 presented an imminent and substantial endangerment to public safety,
15 human health or the environment, is a violation of human or civil rights
16 law, results in loss of employee wages or benefits, interferes with any
17 remedy, review, or resolution related to harassment or discrimination
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11565-12-9
S. 5815--C 2
1 claims, was a willful violation, involved tax fraud, violates require-
2 ments related to federal funding to the state, relates to state funding
3 or procurement, is similar to prior violations, is a penal law
4 violation, or relates to a material or substantive portion of the busi-
5 ness. Upon such first violation, a state agency shall (a) provide the
6 small business with a copy of any applicable small business regulation
7 guides pursuant to section one hundred two-a of the state administrative
8 procedure act and any other helpful compliance information detailing the
9 agency's rules and regulations, or (b) provide an opportunity for an
10 in-person meeting, teleconference or videoconference with the small
11 business to help assist such small business with compliance with the
12 agency's rules and regulations. The agency shall have the discretion to
13 determine the appropriate period of time to allow for such ameliorative
14 action to occur, which shall be reasonable but shall not be less than
15 ninety days.
16 2. As used in this section: (a) "Small business" shall mean a business
17 which is resident in this state, independently owned and operated, not
18 dominant in its field and employs one hundred or less persons.
19 (b) "State agency" shall mean an agency as defined in subdivision one
20 of section one hundred two of the state administrative procedure act;
21 provided that "state agency" shall not include the department of taxa-
22 tion and finance but shall also mean the workers' compensation board.
23 3. Nothing herein shall prevent or preclude any other waivers of
24 penalties that may be applicable by this or any other agency.
25 § 2. This act shall take effect immediately.
