S. 5858 2
zone, (3) whether certification will have the undesired effect of caus-
ing individuals to transfer from existing employment with another busi-
ness enterprise to similar employment with the business enterprise so
certified, and transferring existing employment from one or more other
municipalities, towns or villages in the state, or transferring existing
employment from one or more other businesses in the zone, (4) whether
such enterprise is likely to enhance the economic climate of the zone,
(5) whether the commissioner of labor establishes that such business
enterprise, during the three years preceding the submission of an appli-
cation for certification, has engaged in a substantial violation or a
pattern of violations of laws regulating unemployment insurance, workers
compensation, public work, child labor, employment of minorities and
women, safety and health, or other laws for the protection of workers as
determined by final judgment of a judicial or administrative proceeding;
(6) whether such business meets the requirements of the cost benefit
analysis as established in paragraph (p) of section nine hundred fifty-
seven of this article, and (7) if the commissioner of labor establishes
that the business enterprise has been found in a criminal proceeding to
have violated, in the previous three years, any of the laws referred to
in subparagraph five of this paragraph or regulations promulgated pursu-
ant to such laws, the conditions of any permit issued thereunder, or
similar statute, regulation, order or permit condition of any other
government agency, foreign or domestic, such business shall not be
certified; provided, however, that a business enterprise that has shift-
ed its operations, or some portions thereof, from an area within New
York state not designated as an empire zone or zone equivalent area to
an area so designated shall not be certified to receive such benefits
except where such shift is entirely within a municipality and has been
approved by the local governing body of such municipality or in situ-
ations where it has been established, after a public hearing, that
extraordinary circumstances exist which warrant the relocation of a
business, in whole or part, into an empire zone or a zone equivalent
area from another municipality and the municipality from which the busi-
ness is relocating approves of such relocation; or where such shift in
operations is from a business incubator facility operated by a munici-
pality or by a public or private not-for-profit entity which provides
space and business support services to newly established firms; and (iv)
the decertification by the commissioner, upon the recommendation of the
commissioner of labor, so as to revoke the certification of business
enterprises for benefits referred to in section nine hundred sixty-six
of this article with respect to an empire zone or zone equivalent area
upon a finding that the business enterprise has committed substantial
violations of laws for the protection of workers including all federal,
state and local labor laws, rules or regulations; and (v) the decertif-
ication by the commissioner so as to revoke the certification of busi-
ness enterprises for benefits referred to in section nine hundred
sixty-six of this article with respect to an empire zone or zone equiv-
alent area upon a finding of any one of the following: (1) the business
enterprise made material misrepresentations of fact on its application
for certification or in any of its business annual reports, or the busi-
ness enterprise failed to disclose facts in its application for certif-
ication that would constitute grounds for not issuing a certification;
(2) the business enterprise has failed to construct, expand, rehabili-
tate or operate or invest in its facility substantially in accordance
with the representations contained in its application for certification;
(3) the business enterprise has failed to create new employment or
S. 5858 3
prevent a loss of employment in the empire zone or zone equivalent area;
(4) where applicable, the business enterprise has failed to submit an
annual report after it has applied for zone tax benefits or program
assistance based on new hires or investments or failed to submit other
information when due; (5) the business enterprise, if first certified
pursuant to this article prior to the first day of August, two thousand
two, caused individuals to transfer from existing employment with anoth-
er business enterprise with similar ownership and located in New York
state to similar employment with the certified business enterprise or if
the enterprise acquired, purchased, leased, or had transferred to it
real property previously owned by an entity with similar ownership,
regardless of form of incorporation or organization; (6) the business
enterprise has failed to provide economic returns to the state in the
form of total remuneration to its employees (i.e. wages and benefits)
and investments in its facility greater in value to the tax benefits the
business enterprise used and had refunded to it; PROVIDED, HOWEVER,
QUALIFIED EMPIRE ZONE ENTERPRISES THAT HAVE MORE THAN ONE EMPIRE ZONE
LOCATION WITH THE SAME FEDERAL TAX IDENTIFICATION NUMBER MAY ELECT TO BE
REVIEWED IN AGGREGATE AND NOT PER EMPIRE ZONE LOCATION; PROVIDED,
FURTHER THAT QUALIFIED EMPIRE ZONE ENTERPRISES WHICH HAVE DIFFERENT
FEDERAL TAX IDENTIFICATION NUMBERS AND ARE SUBSIDIARIES OF A PARENT
BUSINESS ENTERPRISE MAY ELECT TO BE REVIEWED IN AGGREGATE BASED UPON THE
PARENT BUSINESS ENTERPRISE AND NOT PER SUBSIDIARY OR EMPIRE ZONE
LOCATION; or (7) the business enterprise has changed ownership RESULTING
IN THE BUSINESS ENTERPRISE HAVING A DIFFERENT FEDERAL TAX IDENTIFICATION
NUMBER THAN THAT WHICH THEY WERE ORIGINALLY CERTIFIED UNDER or moved its
operations out of the empire zone; said regulations shall provide that
whenever any business enterprise is decertified with respect to an
empire zone: (A) the [date determined to be the earliest event consti-
tuting grounds for revoking certification shall be the effective date of
decertification] EFFECTIVE DATE OF DECERTIFICATION SHALL NOT BE EARLIER
THAN THE FIRST DAY OF THE BUSINESS ENTITY'S TAXABLE YEAR BEGINNING ON OR
AFTER JANUARY FIRST, TWO THOUSAND TEN; (B) its certified single enter-
prise, if any, may also be decertified; and (C) the commissioner shall
notify the commissioner of taxation and finance that such decertif-
ication has occurred, and such notification should include the effective
date of such decertification and the zone or zone equivalent area to
which such decertification applies;
(A-1) NOTWITHSTANDING THE PROVISIONS IN PARAGRAPH (A) OF THIS SECTION,
A BUSINESS ENTERPRISE WHICH MEETS THE CRITERIA SET FORTH IN CLAUSE FIVE
OF PARAGRAPH (V) OF SUBDIVISION (A) OF THIS SECTION WILL NOT BE SUBJECT
TO DECERTIFICATION IF: (I) THE BUSINESS ENTERPRISE HAS PROVIDED ECONOMIC
RETURNS TO THE STATE IN THE FORM OF TOTAL REMUNERATION TO ITS EMPLOYEES
(I.E. WAGES AND BENEFITS) AND INVESTMENTS IN ITS FACILITY GREATER IN
VALUE TO THE TAX BENEFITS THE BUSINESS ENTERPRISE USED AND HAD REFUNDED
TO IT; AND (II) EITHER (1) THE BUSINESS ENTERPRISE HAS PAID WAGES AND
BENEFITS TO ITS EMPLOYEES WHO WERE NEVER EMPLOYED WITHIN THE STATE BY A
RELATED PERSON TO THE QEZE AND MADE CAPITAL INVESTMENTS IN ITS FACILI-
TIES IN ZONE LOCATIONS, AND THE TOTAL AMOUNT OF SUCH WAGES, BENEFITS,
AND CAPITAL INVESTMENT IS GREATER IN VALUE THAN THE TAX BENEFITS THE
BUSINESS ENTERPRISE USED AND HAD REFUNDED TO IT; OR (2) THE BUSINESS
ENTERPRISE HAS PAID WAGES AND BENEFITS TO ITS EMPLOYEES WHO WERE NEVER
EMPLOYED WITHIN THE STATE BY A RELATED PERSON TO THE QEZE AND MADE CAPI-
TAL INVESTMENTS IN ITS FACILITIES IN ZONE LOCATIONS, AND SUCH WAGES,
BENEFITS, AND CAPITAL INVESTMENT TOTAL MORE THAN THIRTY MILLION DOLLARS.
FOR PURPOSES OF THIS SUBDIVISION THE TERM "RELATED PERSON" IS DEFINED IN
S. 5858 4
SUBPARAGRAPH (C) OF PARAGRAPH THREE OF SUBSECTION (B) OF SECTION FOUR
HUNDRED SIXTY-FIVE OF THE INTERNAL REVENUE CODE, AND SHALL INCLUDE AN
ENTITY WHICH WOULD HAVE QUALIFIED AS A "RELATED PERSON" TO THE QEZE IF
IT HAD NOT BEEN DISSOLVED, LIQUIDATED, MERGED WITH ANOTHER ENTITY, OR
OTHERWISE CEASED TO EXIST OR OPERATE. THE ANALYSES SET FORTH IN PARA-
GRAPHS (I) AND (II) OF THIS SUBDIVISION SHALL BE BASED UPON THE WAGES
AND BENEFITS PAID AND CAPITAL INVESTMENTS MADE FROM THE FIRST DAY OF THE
BUSINESS ENTERPRISE'S TAXABLE YEAR DURING WHICH THE BUSINESS ENTERPRISE
WAS CERTIFIED THROUGH THE LAST DAY OF THE BUSINESS ENTERPRISE'S TAXABLE
YEAR BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN. SUCH
ANALYSIS SHALL BE BASED ON A REVIEW OF THE AGGREGATE ECONOMIC RETURNS AT
ALL ZONE CERTIFIED LOCATIONS. THE VALUE OF THE TAX BENEFITS THE BUSINESS
ENTERPRISE USED AND HAD REFUNDED TO IT FOR THE ANALYSIS SET FORTH IN
PARAGRAPHS (I) AND (II) OF THIS SUBDIVISION WILL EQUAL THOSE TAX BENE-
FITS USED OR REFUNDED TO THE BUSINESS ENTERPRISE DURING ALL TAXABLE
YEARS FROM THE TAXABLE YEAR DURING WHICH THE BUSINESS ENTERPRISE WAS
CERTIFIED THROUGH THE LAST DAY OF THE BUSINESS ENTERPRISE'S TAXABLE YEAR
BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND SEVEN.
S 2. Paragraph (e-1) of subdivision 19 of section 210 of the tax law
is REPEALED.
S 3. Paragraph 5-a of subsection (k) of section 606 of the tax law is
REPEALED.
S 4. Paragraph 5-a of subsection (e) of section 1456 of the tax law is
REPEALED.
S 5. Paragraph 5-a of subsection (g) of section 1511 of the tax law is
REPEALED.
S 6. Paragraph (d-1) of subdivision 12-B of section 210 of the tax law
is REPEALED.
S 7. Paragraph 4-a of subsection (j) of section 606 of the tax law is
REPEALED.
S 8. Paragraph (c-1) of subdivision 12-C of section 210 of the tax law
is REPEALED.
S 9. Paragraph 3-a of subsection (j-1) of section 606 of the tax law
is REPEALED.
S 10. Paragraph (b-1) of subdivision 20 of section 210 of the tax law
is REPEALED.
S 11. Paragraph 1-a of subsection (1) of section 606 of the tax law is
REPEALED.
S 12. Paragraph 2-a of subsection (d) of section 1456 of the tax law
is REPEALED.
S 13. Paragraph 2-a of subdivision (h) of section 1511 of the tax law
is REPEALED.
S 14. Subsection (h) of section 1088 of the tax law is REPEALED.
S 15. Subsection (h) of section 688 of the tax law is REPEALED.
S 16. Paragraph 4 of subsection (c) of section 1089 of the tax law is
REPEALED.
S 17. Paragraph 4 of subsection (c) of section 689 of the tax law is
REPEALED.
S 18. Subsection (k-2) of section 1085 of the tax law is REPEALED.
S 19. Subsection (p-2) of section 685 of the tax law is REPEALED.
S 20. Subdivision (p) of section 957 of the general municipal law, as
amended by section 1 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(p) "Cost benefit analysis" shall mean, for purposes of paragraph
(iii) of subdivision (a) of section nine hundred fifty-nine of this
article, a method of determining whether to certify a business enter-
S. 5858 5
prise based on the business enterprise's projected job creation and/or
investment in the zone versus the total amount of empire zone tax bene-
fits the business enterprise will potentially be allowed to use and have
refunded to it and shall be a ratio of at least 10Aging [for manufactur-
ing enterprises and 20Aging for all other business enterprises], the
numerator of which is the sum of (i) the estimated value of all wages
and benefits paid for the first three years of certification to all
existing and projected employees of the business enterprise in the zone
and (ii) the estimated value of capital investments for the first three
years of certification in the zone, and the denominator of which is the
estimated amount of total empire zone tax benefits that may be used and
may be refunded for the first three years of certification. NON-QUANTI-
FIABLE FACTORS MAY INCLUDE A BUSINESS ENTERPRISE'S POSITIVE IMPACT ON AN
AREA THAT HAS HIGH COMMERCIAL VACANCY RATES, AND/OR IS CHARACTERIZED BY
BLIGHT AND DISINVESTMENT OR THE BUSINESS ENTERPRISE IS PART OF A STRATE-
GIC INDUSTRY CLUSTER OR SUPPLY CHAIN; OR IS ANTICIPATED TO ACCESS ZONE
CAPITAL CREDITS.
S 21. Subdivision (b) of section 959-b of the general municipal law,
as amended by section 4 of part S-1 of chapter 57 of the laws of 2009,
is amended to read as follows:
(b) The commissioner of economic development shall serve as the sole
certification officer for businesses seeking certification as a clean
energy enterprise. The commissioner of economic development, after
consultation with the executive director of the New York state energy
research and development authority, shall promulgate regulations govern-
ing (i) criteria of eligibility for designation of a clean energy enter-
prise, (ii) the application process, and (iii) the certification by the
commissioner of economic development as to the eligibility of business
enterprises for benefits referred to in section nine hundred sixty-six
of this article. A business so certified shall be deemed to be eligible
for such benefits as if such business were located in an investment zone
as defined in paragraph (i) of subdivision (d) of section nine hundred
fifty-seven of this article. No such certification shall be made after
[June thirtieth, two thousand ten] DECEMBER THIRTY-FIRST, TWO THOUSAND
ELEVEN.
S 22. Paragraph 3 of subdivision (b) of section 15 of the tax law is
REPEALED.
S 23. Sections 30 and 31 of part S-1 of chapter 57 of the laws of 2009
amending the general municipal law and the tax law relating to enacting
reforms to the empire zones program are REPEALED.
S 24. Paragraph 2 of subdivision (a) of section 14 of the tax law, as
amended by section 32 of part S-1 of chapter 57 of the laws of 2009, is
amended to read as follows:
(2) for purposes of articles twenty-eight and twenty-nine of this
chapter, during the "sales and use tax benefit period." Such period
shall consist of one hundred twenty consecutive months beginning on the
later of (A) March first, two thousand one, or (B) [with regard to busi-
ness enterprises certified pursuant to article eighteen-B of the general
municipal law prior to April first, two thousand nine,] the first day of
the month next following the date of issuance of a qualified empire zone
enterprise certification by the commissioner under subdivision (h) of
this section[, or (C) with regard to business enterprises certified
pursuant to such article eighteen-B on or after April first, two thou-
sand nine, the first day of the month next following the date of certif-
ication under article eighteen-B as an empire zone business]. Provided
however, such period shall not include any month falling within a taxa-
S. 5858 6
ble year immediately preceded by a taxable year with respect to which
the business enterprise did not meet the employment test.
S 25. Section 14 of the tax law is amended by adding a new subdivision
(h) to read as follows:
(H) SALES AND USE TAX. (1) IN ADDITION TO THE OTHER REQUIREMENTS OF
THIS SECTION, IN ORDER FOR THE EXEMPTIONS DESCRIBED IN SUBDIVISION (Z)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THIS CHAPTER OR ANY LIKE
EXEMPTIONS FROM TAXES IMPOSED PURSUANT TO THE AUTHORITY OF ARTICLE TWEN-
TY-NINE OF THIS CHAPTER TO APPLY WITH RESPECT TO A QUALIFIED EMPIRE ZONE
ENTERPRISE, SUCH ENTERPRISE SHALL APPLY TO THE COMMISSIONER OF TAXATION
AND FINANCE FOR THE ISSUANCE OF A QUALIFIED EMPIRE ZONE ENTERPRISE
CERTIFICATION, IN THE MANNER PRESCRIBED BY SUCH COMMISSIONER. IF SUCH
COMMISSIONER GRANTS SUCH CERTIFICATION, SUCH CERTIFICATION SHALL BE
SUBJECT TO CONDITIONS SPECIFIED BY SUCH COMMISSIONER. AN ENTERPRISE TO
WHICH THE COMMISSIONER ISSUES SUCH CERTIFICATION MAY FURNISH A QUALIFIED
EMPIRE ZONE ENTERPRISE EXEMPT PURCHASE CERTIFICATE TO A PERSON REQUIRED
TO COLLECT SALES AND COMPENSATING USE TAXES IMPOSED UNDER OR PURSUANT TO
THE AUTHORITY OF ARTICLE TWENTY-EIGHT OR TWENTY-NINE OF THIS CHAPTER,
WHICH CERTIFICATE SHALL BE DEEMED TO BE AN EXEMPTION CERTIFICATE UNDER
SUBDIVISION (C) OF SECTION ELEVEN HUNDRED THIRTY-TWO OF THIS CHAPTER.
NOTHING HEREIN OR IN ANY OTHER LAW SHALL BE CONSTRUED TO PROHIBIT THE
DISCLOSURE, IN SUCH MANNER AS THE COMMISSIONER OF TAXATION AND FINANCE
DEEMS APPROPRIATE, OF THE NAMES AND OTHER APPROPRIATE IDENTIFYING INFOR-
MATION OF THOSE PERSONS HOLDING QUALIFIED EMPIRE ZONE ENTERPRISE CERTIF-
ICATIONS PURSUANT TO THIS SUBDIVISION, THOSE PERSONS WHOSE QUALIFIED
EMPIRE ZONE ENTERPRISE CERTIFICATIONS HAVE BEEN REVOKED OR THOSE PERSONS
WHOSE QUALIFIED EMPIRE ZONE ENTERPRISE CERTIFICATIONS HAVE EXPIRED.
(2) DURING THE PERIOD THAT A BUSINESS ENTERPRISE IS ELIGIBLE TO APPLY,
OR IS QUALIFIED, FOR EXEMPTIONS FROM SALES AND COMPENSATING USE TAXES
UNDER THIS SECTION, THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AT
THE TIME SUCH COMMISSIONER CERTIFIES OR DECERTIFIES A BUSINESS ENTER-
PRISE UNDER ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW, NOTIFY THE
COMMISSIONER OF TAXATION AND FINANCE OF SUCH CERTIFICATION OR DECERTIF-
ICATION, WHICH NOTIFICATION SHALL INCLUDE THE FULL LEGAL NAME, ADDRESS
AND FEDERAL EMPLOYER IDENTIFICATION NUMBER OF SUCH ENTERPRISE. THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL, AT THE TIME OF ANY SUCH
CERTIFICATION, ALSO ADVISE SUCH ENTERPRISE OF THE REQUIREMENTS IN PARA-
GRAPH ONE OF THIS SUBDIVISION.
S 26. Sections 34, 35, 36, 37, 38, 39, 40, 41 and 42 of part S-1 of
chapter 57 of the laws of 2009 amending the general municipal law and
the tax law relating to enacting reforms to the empire zones program,
are REPEALED.
S 27. Legislative findings. The legislature hereby finds and declares
that the current regulatory environment in New York state has a signif-
icant impact on the state's businesses, economy and global economic
competitiveness. In order to provide New York businesses the opportunity
for growth and the ability to compete, along with providing the citizens
of this state the ability to find gainful employment and the benefits of
a strong economy, New York state must provide a regulatory environment
that reduces the cost of doing business in the state, promotes business
growth and encourages job creation.
The legislature further finds that it is in the interest of the state
to undertake at this time a rational, independent review of all regu-
lations that impact the business environment of this state which stifles
the potential of New York's workers and businesses. In order to under-
take such review rationally and equitably, the legislature determines
S. 5858 7
that it is necessary to establish a commission separate and apart from
existing bodies responsible for promulgating rules and regulations which
affect the business environment, to review all existing rules and regu-
lations and to provide continued oversight on future proposed rules and
regulations in an effort to cut waste, reduce paperwork and create an
efficient and cost effective environment for doing business in New York.
S 28. Commission established. (a) There is hereby created in the exec-
utive department a commission to be known as the "Commission on Regula-
tory Reform and Economic Competitiveness," hereafter referred to as the
"commission," which shall be charged with examining all current rules
and regulations affecting the business community in New York state and
recommending changes to that system in light of factors submitted pursu-
ant to section thirty-one of this act and additional factors established
by the commission. It shall be further charged to review the economic
impact and cost of any new proposed rules or regulations and make recom-
mendations pursuant to section thirty-five of this act.
(b) The commission shall consist of seventeen members. The seventeen
members shall be appointed as follows: (i) two members shall be
appointed by the temporary president of the senate; (ii) two members
shall be appointed by the speaker of the assembly; (iii) one member
shall be appointed by the minority leader of the senate; (iv) one member
shall be appointed by the minority leader of the assembly; and (v) elev-
en members shall be appointed by the governor to consist of the follow-
ing: (1) two members of the business community; (2) one member of the
small business community; (3) two members from the labor community; (4)
one member from the agricultural community; (5) one member of the local
government community; and (6) four at large members. The governor shall
designate the chair from among the members of the commission.
(c) The members of the commission shall receive no compensation for
their services as members, but shall be allowed their actual and neces-
sary expenses incurred in the performance of their duties. Members of
the commission shall be considered public officers for purposes of
section 17 of the public officers law.
(d) The commission shall begin to act forty-five days after this act
shall have become a law. A quorum shall consist of a majority of the
members of the commission entitled to vote on the matter under consider-
ation. Approval of any matter shall require the affirmative vote of a
majority of the members voting thereon.
(e) The commission shall adopt by-laws for the management and regu-
lation of its affairs.
S 29. Appointments to commission. The legislative leaders shall submit
their appointments to the governor, and the governor shall make his or
her appointments, no later than forty-five days after this act becomes a
law. If any such appointment is not made by such date, the appointing
officer may make the appointment after that date, but the vacant
appointment shall not count for calculation of a quorum until it is
filled. Vacancies in the commission shall be filled in the same manner
as the member whose vacancy is being filled was appointed.
S 30. Commission staff. The commission, acting by the chair of the
commission, may employ staff and consultants, who shall be paid from
amounts available to the commission for that purpose.
S 31. Factors and information for consideration. The commissioner of
each agency or department which promulgates rules and regulations shall
submit to the commission, no later than one hundred eighty days after
this act becomes a law, a list of factors to be considered in its delib-
erations, which shall include:
S. 5858 8
(a) the need for each rule or regulation currently in force;
(b) a list of rules and regulations which may be rescinded;
(c) the economic impact of the rules and regulations on the business
environment and job market of the state;
(d) a list of the rules and regulations which generate funds for the
state and the amount of funds generated by that rule or regulation;
(e) a list of rules or regulations which may be amended that will
result in reduced paperwork and create efficiencies in the agency or
department;
(f) a summary of how the department or agency's rules and regulations
compare to other states and other nations; and
(g) a summary of the agency or department's plans to create efficien-
cies, reduce paperwork and promote the business environment in the
state.
The agency or department may submit additional relevant factors to be
considered in the deliberations of the commission. The commission may
also adopt additional factors to be considered in its deliberations.
S 32. Deliberations of commission. The deliberations, meetings and
other proceedings of the commission and any committee thereof shall be
governed by article 7 of the public officers law, provided that,
notwithstanding section 105 of the public officers law, the commission
and any committee thereof shall conduct business in executive session
anytime it is addressing in detail the medical, financial, or credit
history of a particular general hospital or nursing home. Any one or
more members of a committee may participate in a meeting of such commit-
tee by means of a conference telephone, conference video or similar
communications equipment allowing all persons participating in the meet-
ing to hear each other at the same time. Participation by such means
shall constitute presence in person at a meeting. At any meetings of the
commission conducted by means of a conference telephone, conference
video or similar communications equipment, other than executive
sessions, the public shall be given an opportunity to listen. If a meet-
ing other than an executive session is to be conducted by means of a
conference telephone, conference video or similar communications equip-
ment, the public notice for the meeting shall inform the public that
such equipment will be used, and identify the means by which the public
may listen to such meeting.
S 33. Commission recommendations. (a) The commission shall develop
recommendations to (i) eliminate wasteful regulations which increase
business costs, stunt business growth and discourage job creation with
no clear or significant benefit to the state; and (ii) reduce paperwork,
create efficiencies, and increase the competitiveness of the state's
business environment.
(b) Such recommendations shall include: (i) recommended dates by which
such actions should occur; (ii) necessary investments, if any, that
should be made in each case to carry out the commission's recommenda-
tions, including any necessary workforce, training, or other invest-
ments; and (iii) the commission's justification for its recommendations,
including the use of the factors pursuant to section thirty-one of this
act.
(c) In addition, the commission may include in its report: (i) recom-
mended areas of further improvement in agencies or departments outside
their rules and regulations; (ii) recommendations for the elimination of
duplicative oversight or functions shared by more than one agency or
department; (iii) recommendations on the consolidation of agencies or
departments which may have concurrent areas of jurisdiction.
S. 5858 9
(d) On or before December 1, 2011, the commission shall transmit to
the governor and the legislature a report containing its recommenda-
tions, which shall include specific recommendations regarding the elimi-
nation of rules and regulations, elimination of overlapping oversight
and functions, proposed rules or regulations, proposed initiatives to
reduce paperwork and create efficiencies and other proposals to decrease
the cost of doing business in the state.
S 34. Implementation of recommendations. (a) Notwithstanding any
contrary provision of law, rule or regulation, the commissioner or head
of any rule or regulation making agency or department shall take all
actions necessary to implement, in a reasonable, cost-efficient manner,
the recommendations of the commission pursuant to subdivisions (b) and
(c) of section thirty-three of this act, including, but not limited to
coordinating with state or local government officials and other parties
as the commissioner deems appropriate.
(b) The provisions of subdivision (a) of this section shall not apply:
(i) unless the governor has transmitted the commission's report under
section thirty-three of this act with his or her written approval of the
recommendations of the commission pursuant to subdivisions (b) and (c)
of section thirty-three of this act to the head of each agency or
department affected by these recommendations and transmitted a message
to the legislature stating his or her approval of the report on or
before December 5, 2011; and (ii) if a majority of the members of each
house of the legislature vote to adopt a concurrent resolution rejecting
the recommendations of the commission pursuant to subdivisions (b) and
(c) of section thirty-three of this act in their entirety by December
31, 2011, after receiving a message from the governor under this subdi-
vision.
S 35. Continuing responsibility to review proposed rules and regu-
lations. After submission of the commission's report to the governor
and the legislature, the commission shall be responsible for the contin-
ued review of any agency or department's proposed rules or regulations
which may impact the business environment of this state.
(a) The commission shall within thirty days of the receipt of the
proposed rule or regulation and the accompanied report outlined in
section thirty-six of this act, vote on whether such rule or regulation
shall be implemented;
(b) no rule shall be approved unless a vote of a majority of the
commission's members present shall so vote;
(c) upon a vote disapproving a rule or regulation the commission shall
give notice to the agency or department that such rule or regulation has
been disapproved, the reason for its disapproval and any recommendations
the commission shall deem appropriate to improve the proposed rule or
regulation;
(d) if the commission shall fail to act upon any proposed rule or
regulation within the thirty day period, that rule or regulation shall
have been deemed to have been approved and may be implemented; and
(e) any rule or regulation that has been disapproved by the commission
may be appealed provided that (i) the department or agency appeals with-
in thirty days of the disapproval; (ii) the agency or department details
why the disapproval may be detrimental to the health, safety or welfare
of the state or its residents; and (iii) if applicable explain why the
commission's recommended improvements are not able to be enacted.
S 36. Department and agency's responsibility to submit proposed rules
and regulations. Notwithstanding any contrary provision of law, rule or
regulation any agency or department proposing a new rule or regulation
S. 5858 10
may not implement that rule or regulation without the approval of the
commission. The department or agency when seeking to gain the approval
of a new rule or regulation must:
(a) provide the commission with a copy of the new rule or regulation;
(b) provide a summary of the rule or regulation and the reasoning for
implementing it; and
(c) provide an economic impact statement of the proposed rule or regu-
lation to include but not be limited to (i) cost or benefit to the
state; (ii) business sector or industry affected by the rule or regu-
lation; (iii) number of jobs affected by the rule or regulation; and
(iv) any other information which will assist the commission in under-
standing the economic impact of the rule or regulation.
S 37. This act shall take effect immediately; provided, however, that:
(i) sections twenty through twenty-six of this act shall be deemed to
have been in full force and effect on the same date as part S-1 of chap-
ter 57 of the laws of 2009; and (ii) sections twenty-seven through thir-
ty-six of this act shall expire and be deemed repealed June 30, 2014.
