Amd §170-c, Exec L; amd §2, Chap of 2019 (as proposed in S.5815-C & A.7540-B)
Provides guidelines to determine regulatory fines for small businesses and amends the effective date for S. 5815-C and A. 7540-B to be repealed two years after the effective date.
STATE OF NEW YORK
________________________________________________________________________
7193
IN SENATE
January 10, 2020
___________
Introduced by Sen. KAPLAN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the executive law, in relation to regulatory fines for
small businesses; and to amend a chapter of the laws of 2019, amending
the executive law relating to regulatory fines for small businesses,
in relation to the effectiveness thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 170-c of the executive law, as added by a chapter
2 of the laws of 2019, amending the executive law relating to regulatory
3 fines for small businesses, as proposed in legislative bills numbers S.
4 5815-C and A. 7540-B, is amended to read as follows:
5 § 170-c. Regulatory penalties for small businesses. 1. Unless explic-
6 itly exempted or excluded by any other law, rule or regulation, upon a
7 first time violation of a state agency's rules or regulations related to
8 paperwork submitted to a state agency or actions or omissions that are
9 determined by such state agency to be de minimus, a small business, as
10 defined in subdivision eight of section one hundred two of the state
11 administrative procedure act, shall be afforded a cure period or other
12 opportunity for ameliorative action if the violation can be corrected,
13 the successful completion of which will prevent the imposition of penal-
14 ties on the party or parties subject to enforcement of such de minimus
15 violation. However, no waiver of penalties or cure period or other
16 opportunity for ameliorative action may be given if the agency deter-
17 mines that the violation [resulted] may result in a natural resource
18 damage claim or serious actual harm, or may [have presented] present an
19 [imminent and substantial] endangerment to public safety, human health
20 or the environment, is a violation of human or civil rights law, results
21 in loss of employee wages or benefits, interferes with any remedy,
22 review, or resolution related to harassment or discrimination claims,
23 was or is a willful violation, [involved] involves tax fraud, violates
24 requirements related to federal funding to the state, relates to state
25 funding or procurement, is similar to prior violations, is a penal law
26 violation, [or] relates to a material or substantive portion of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11565-13-0
S. 7193 2
1 business, or is in contravention of the public interest and/or policy
2 reflected by the agency's mission. Upon such first violation, a state
3 agency shall (a) provide the small business with a copy of [any] the
4 applicable small business regulation guides pursuant to section one
5 hundred two-a of the state administrative procedure act and any other
6 helpful [compliance] guidance or information detailing the agency's
7 rules and regulations, to the extent such materials exist, or (b) to the
8 extent practicable, provide [an opportunity for an in-person meeting,
9 teleconference or videoconference with the small business to help
10 assist] such small business assistance with compliance with the agency's
11 rules and regulations. The agency shall have the discretion to deter-
12 mine the appropriate period of time to allow [for] such small business
13 to cure or take such other ameliorative action [to occur] to address
14 such violation, which shall be reasonable but shall not be less than
15 [ninety] fifteen business days unless a longer period is allowed pursu-
16 ant to law or regulation.
17 2. As used in this section[: (a) "Small business" shall mean a busi-
18 ness which is resident in this state, independently owned and operated,
19 not dominant in its field and employs one hundred or less persons.
20 (b)] "[State] state agency" shall mean an agency as defined in subdi-
21 vision one of section one hundred two of the state administrative proce-
22 dure act; provided that "state agency" shall not include the department
23 of taxation and finance [but shall also mean], the workers' compensation
24 board nor the department of financial services.
25 3. Nothing herein shall prevent or preclude any other waivers of
26 penalties that may be applicable by this or any other agency.
27 § 2. Section 2 of a chapter of the laws of 2019, amending the execu-
28 tive law relating to regulatory fines for small businesses, as proposed
29 in legislative bills numbers S. 5815-C and A. 7540-B, is amended to read
30 as follows:
31 § 2. This act shall take effect immediately and shall expire and be
32 deemed repealed two years after such date.
33 § 3. This act shall take effect immediately, provided, however, that
34 section one of this act takes effect on the same date and in the same
35 manner as a chapter of the laws of 2019, amending the executive law
36 relating to regulatory fines for small businesses, as proposed in legis-
37 lative bills numbers S. 5815-C and A. 7540-B, takes effect.
