Bill Text: NY S05815 | 2019-2020 | General Assembly | Amended

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Bill Title: 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.

Spectrum: Bipartisan Bill

Status: (Passed) 2019-12-20 - approval memo.78 [S05815 Detail]

Download: New_York-2019-S05815-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         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.