Senate Bill S4187

                                 BILL NUMBER:  S4187

 TITLE OF BILL :

An act to amend the state administrative procedure act, in relation to
providing for installment payment programs for small businesses


 PURPOSE OR GENERAL IDEA OF BILL :

This bill would assist small businesses by enabling them to make
installment payments for fees or civil penalties owed to state
agencies.

 SUMMARY OF PROVISIONS :

Section one of the bill adds a new §208 to the State Administrative
Procedure Act (SAPA) requiring each state agency to establish an
installment payment program for payment of civil penalties by small
businesses and inform eligible businesses of the existence of the
program when they are notified that a penalty has been assessed
against them.

Each state agency is required to establish rules and regulations
governing the installment payment program.

              

The provisions of the bill do not apply to civil penalties assessed by
the Division of Taxation and Finance, or to traffic infractions or
parking violations.

 SUMMARY OF CHANGES IN RESPONSE TO VETO :

The civil penalties threshold is eliminated. The agencies are given
complete discretion as to how to implement an installment payment
program which the Executive and many agencies found to be onerous in
the 2006 Veto.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :

While some agencies may allow installment payments in specific cases,
there is no current across-the-board statutory provision allowing the
payment of fees or civil penalties on an installment basis.

 JUSTIFICATION :

Fees are required to ensure that the beneficiaries, and not the
taxpayers, bear the costs of obtaining agency permits, and civil
penalties are necessary to enforce regulatory standards. However, in
some cases these monetary amounts can impose a disproportionate burden
on small businesses. Making a one-time payment of $2000, $5000 or more
may be an insignificant sum to a Fortune 500 company, but such a
requirement often presents a true hardship to a cash-starved small
business. Allowing for installment payments is one way to alleviate
this burden.

 PRIOR LEGISLATIVE HISTORY :

1997: Reported to Assembly Codes Committee
1998: Passed Assembly/3rd Reading Calendar in Senate
1999-00: Passed Assembly/Senate Commerce Committee
2001-02: Passed Assembly/Senate Commerce Committee
2003:  Passed Assembly/Senate Rules Committee
2004: Passed Assembly/Passed Senate/Veto No. 11
2005: Passed Assembly/Passed Senate/Veto No. 49
2006: Passed Assembly/Passed Senate/Veto No. 343
2007: Passed Assembly/Passed Senate/Veto No. 116
 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

There are expected to be no adverse state or local fiscal
implications.  By increasing the rate of collections and allowing
interest to be charged at the underpayment rate set by the Department
of Taxation & Finance, the bill is expected to be revenue-neutral to
the State.

 EFFECTIVE DATE :
180 days after it shall have become a law.