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
________________________________________________________________________
7540--B
2019-2020 Regular Sessions
IN ASSEMBLY
May 9, 2019
___________
Introduced by M. of A. McDONALD, STIRPE, LUPARDO, WALLACE, BUTTENSCHON,
McMAHON, WOERNER, JONES, STECK -- read once and referred to the
Committee on Small Business -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
reported and referred to the Committee on Codes -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
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
18 claims, was a willful violation, involved tax fraud, violates require-
19 ments related to federal funding to the state, relates to state funding
20 or procurement, is similar to prior violations, is a penal law
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11565-10-9
A. 7540--B 2
1 violation, or relates to a material or substantive portion of the busi-
2 ness. Upon such first violation, a state agency shall (a) provide the
3 small business with a copy of any applicable small business regulation
4 guides pursuant to section one hundred two-a of the state administrative
5 procedure act and any other helpful compliance information detailing the
6 agency's rules and regulations, or (b) provide an opportunity for an
7 in-person meeting, teleconference or videoconference with the small
8 business to help assist such small business with compliance with the
9 agency's rules and regulations. The agency shall have the discretion to
10 determine the appropriate period of time to allow for such ameliorative
11 action to occur, which shall be reasonable but shall not be less than
12 ninety days.
13 2. As used in this section: (a) "Small business" shall mean a business
14 which is resident in this state, independently owned and operated, not
15 dominant in its field and employs one hundred or less persons.
16 (b) "State agency" shall mean an agency as defined in subdivision one
17 of section one hundred two of the state administrative procedure act;
18 provided that "state agency" shall not include the department of taxa-
19 tion and finance but shall also mean the workers' compensation board.
20 3. Nothing herein shall prevent or preclude any other waivers of
21 penalties that may be applicable by this or any other agency.
22 § 2. This act shall take effect immediately.