senate Bill S7324

2011-2012 Legislative Session

Authorizes streamlined adjudicatory proceedings for small businesses appearing as respondents before certain state agencies

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
Jun 11, 2012 advanced to third reading
Jun 06, 2012 2nd report cal.
Jun 05, 2012 1st report cal.1028
May 02, 2012 referred to commerce, economic development and small business

Votes

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Jun 5, 2012 - Commerce, Economic Development and Small Business committee Vote

S7324
12
0
committee
12
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Commerce, Economic Development and Small Business committee vote details

Commerce, Economic Development and Small Business Committee Vote: Jun 5, 2012

S7324 - Bill Details

See Assembly Version of this Bill:
A9273
Current Committee:
Senate Rules
Law Section:
State Administrative Procedure Act
Laws Affected:
Add §308, St Ad Proc Act; amd §133, Ec Dev L

S7324 - Bill Texts

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Authorizes streamlined adjudicatory proceedings for small businesses appearing as respondents before certain state agencies; authorizes a pilot program by the departments of environmental conservation, health and labor and requires a report after 1 year.

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BILL NUMBER:S7324

TITLE OF BILL:
An act
to amend the state administrative procedure act and the economic
development law, in relation to streamlined adjudicatory proceedings for
small businesses

PURPOSE OR GENERAL IDEA OF BILL:
This bill would cut the cost and
complexity of small business participation in adjudicatory
proceedings by allowing agencies to offer streamlined optional
proceedings (e.g., mail, e-mail, telephone conferencing, Skype) to
small businesses.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new § 308 to the State Administrative Procedure Act
(SAPA) to allow agencies to adopt regulations providing for
streamlined proceedings involving small businesses for specific
programs and categories of violations/other issues that can be fairly
resolved without a physical hearing. In adopting such regulations, an
agency shall consider the types of programs and issues for which such
streamlined proceedings may reasonably be conducted, and shall:

> ensure that a streamlined proceeding is at the option of the
respondent small business with the consent of the agency and other
necessary parties, and no rights will be diminished through exercise
of this option;

> establish available formats and procedures for requesting,
scheduling, conducting and recording such proceedings; and

> provide that, if it becomes impractical or inappropriate to continue
a stream-lined proceeding, the matter may be rescheduled as an
ordinary adjudicatory proceeding without prejudice to any party.

Section 2 amends Economic Development Law § 133(6) to empower the
Small Business Advisory Board to report on agency use of streamlined
optional adjudicatory proceedings for small businesses.

Section 3 requires three agencies that regulate small businesses
(either the Departments of Environmental Conservation, Health and
Labor, or others to be substituted by the Governor) to undertake
pilot projects to conduct streamlined proceedings.

Section 4 provides that the act shall be not construed to limit any
existing authority of any agency to provide for the conduct of
adjudicatory proceedings by mail, telephone or electronic means.

JUSTIFICATION:
The success of small businesses is key to our economy. New York State
must continue its efforts to improve the business climate and allow
the use of technology to reduce the costs of government and improve
efficiency. This requires rethinking statutory requirements to ensure
that 20th - or sometimes 19th - century laws are not creating


barriers to job creation, agency coordination and administrative
streamlining.

The costs and burdens of attending an in-person hearing for minor
violations can have a disproportionate impact on a small business.
New technologies and innovative procedures can allow New York State
to conduct such operations in a way that minimizes these burdens.

In 2010, the New York City Regulatory Reform Review Panel recommended
that City agencies "facilitate ways for small business owners to
avoid having to appear in person before administrative tribunals,
such as by settling or contesting violations by mail or telephone or
over the internet." In response, the City recently launched a program
allowing "One-Click Hearings" which allows people to contest various
violations handled by the Environmental Control Board (e.g., trash
violations, mobile food carts) as well as parking tickets. In an
effort to provide relief to taxpayers, this bill will increase agency
efficiency and limit the burdens on small businesses throughout New
York State.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
It is anticipated long term savings will be achieved by utilizing more
efficient operations.

EFFECTIVE DATE:
This act shall take effect immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7324

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT to amend the state administrative procedure act and the economic
  development law, in relation to streamlined  adjudicatory  proceedings
  for small businesses

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The state administrative procedure act is amended by adding
a new section 308 to read as follows:
  S 308. STREAMLINED OPTIONAL ADJUDICATORY PROCEEDINGS FOR  SMALL  BUSI-
NESSES.  UNLESS  OTHERWISE  PROHIBITED BY LAW, AN AGENCY MAY ADOPT REGU-
LATIONS PROVIDING FOR USE AT THE OPTION OF A SMALL BUSINESS  OF  STREAM-
LINED  ADJUDICATORY  PROCEEDINGS  CONDUCTED  BY  MAIL,  ELECTRONIC MAIL,
TELEPHONE CONFERENCE OR VIDEOCONFERENCE. IN ADOPTING  SUCH  REGULATIONS,
THE AGENCY SHALL:
  1.  CONSIDER  THE  TYPES OF PROGRAMS AND ISSUES FOR WHICH SUCH STREAM-
LINED PROCEEDINGS MAY REASONABLY BE CONDUCTED, TAKING INTO  ACCOUNT  (A)
THE  COMPLEXITY OF THE MATTERS TO BE RESOLVED IN THE PROCEEDING, (B) THE
SEVERITY OF POTENTIAL SANCTIONS, (C) ANY NECESSITY FOR PERSONAL  APPEAR-
ANCES,  INCLUDING BUT NOT LIMITED TO REQUIREMENTS FOR SWORN TESTIMONY OR
CROSS-EXAMINATION, AND (D) ANY POTENTIAL  REDUCTION  IN  THE  COSTS  AND
BURDENS  OF PARTICIPATING IN THE PROCEEDING FOR THE AGENCY AND FOR OTHER
PARTIES, AND SHALL APPROPRIATELY LIMIT THE AVAILABILITY  OF  STREAMLINED
PROCEEDINGS  TO PROGRAMS AND ISSUES IN WHICH THE PUBLIC INTEREST IN FAIR
OUTCOMES CAN CONTINUE TO BE ASSURED;
  2. ENSURE THAT A STREAMLINED PROCEEDING MAY ONLY BE USED AT THE OPTION
OF THE RESPONDENT SMALL BUSINESS WITH THE CONSENT OF THE AGENCY AND  ANY
OTHER NECESSARY PARTY TO THE PROCEEDING, AND THAT THE RIGHTS OF RESPOND-
ENTS  AND  OTHER PARTIES WILL NOT BE DIMINISHED IN ANY RESPECT BY VIRTUE
OF PARTICIPATION IN A STREAMLINED PROCEEDING;
  3. SPECIFY THE FORMAT OR FORMATS FOR  REMOTE  CONDUCT  OF  STREAMLINED
PROCEEDINGS;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14128-01-2

S. 7324                             2

  4.   ESTABLISH   PROCEDURES   FOR   REQUESTING   AND  SCHEDULING  SUCH
PROCEEDINGS, FOR THE CONDUCT OF SUCH PROCEEDINGS, AND FOR  THE  DEVELOP-
MENT  OF  A  COMPLETE RECORD AS PROVIDED IN SECTION THREE HUNDRED TWO OF
THIS ARTICLE; AND
  5.  PROVIDE THAT, IN THE EVENT THAT IT BECOMES IMPRACTICAL OR INAPPRO-
PRIATE TO CONTINUE A PROCEEDING COMMENCED PURSUANT TO THIS SECTION AS  A
STREAMLINED PROCEEDING, SUCH PROCEEDING MAY BE RESCHEDULED AS AN ADJUDI-
CATORY  PROCEEDING PURSUANT TO SECTION THREE HUNDRED ONE OF THIS ARTICLE
WITHOUT PREJUDICE TO ANY PARTY.
  S 2. Paragraphs (g) and (h) of subdivision 6 of  section  133  of  the
economic  development law, paragraph (g) as amended and paragraph (h) as
added by section 5 of part BB of chapter 59 of the  laws  of  2006,  are
amended and a new paragraph (i) is added to read as follows:
  (g)  establish procedures for making annual awards to be known as "New
York State Small Business Awards". These non-monetary  awards  shall  be
given in recognition of unusual performance by persons, firms and organ-
izations  which  are  engaged  in  the operation of New York state small
businesses or which are engaged in activities to assist small businesses
in the state. The board may nominate up to five award  winners  annually
and forward such names to the governor for his consideration. The gover-
nor  may  designate award winners from these nominees at his discretion.
Current members of the advisory board  are  not  eligible  as  nominees;
[and]
  (h)  advise the commissioner on recommendations for the selection of a
minority and women-owned business enterprise statewide advocate  as  set
forth by section three hundred eleven-a of the executive law[.]; AND
  (I)  REPORT  TO  THE COMMISSIONER, THE GOVERNOR AND THE LEGISLATURE ON
AGENCY USE OF STREAMLINED OPTIONAL ADJUDICATORY  PROCEEDINGS  FOR  SMALL
BUSINESSES.
  S 3. Within one hundred eighty days of the effective date of this act,
the  departments  of  environmental conservation, health and labor shall
institute pilot projects  to  offer  optional  streamlined  adjudicatory
proceedings  for small businesses for at least one regulatory program of
the agency under which small businesses currently appear as  respondents
in  adjudicatory  proceedings;  provided, however, that the governor may
direct that another agency shall institute a pilot project instead of  a
listed  agency.  Such  pilot projects shall be designed by the agency in
conjunction with the division for small business and in consideration of
input solicited from small businesses and other stakeholders.   Notwith-
standing the provisions of section one of this act, the agency shall not
be  required  to adopt regulations governing such proceedings, but shall
ensure that such proceedings are governed by guidelines consistent  with
the  provisions  of  such  section  one  and voluntarily accepted by all
participants. One year after initiating  a  pilot  project,  the  agency
shall  prepare  a comparative review of the cost, timeliness and outcome
of streamlined proceedings and  ordinary  adjudicatory  proceedings  and
shall  provide  such  review to the small business advisory board, along
with any other information which the board shall request.
  S 4. Nothing in this act shall be  construed  to  limit  any  existing
authority  of  any  agency  to  provide  for the conduct of adjudicatory
proceedings by mail, telephone or electronic means.
  S 5. This act shall take effect immediately.

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