S T A T E   O F   N E W   Y O R K
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                                 5898--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              March 6, 2015
                               ___________

Introduced  by  M.  of  A. KOLB, BARCLAY, BLANKENBUSH, BRABENEC, BUTLER,
  CERETTO, CORWIN, CROUCH, CURRAN, DiPIETRO, DUPREY, FINCH, FITZPATRICK,
  FRIEND,  GARBARINO,  GIGLIO,  GOODELL,  GRAF,  HAWLEY,  JOHNS,  LALOR,
  LAWRENCE, LOPEZ, LUPINACCI, MALLIOTAKIS, McDONOUGH, McKEVITT, MONTESA-
  NO, MURRAY, NOJAY, OAKS, PALMESANO, PALUMBO, RA, RAIA, SALADINO, STEC,
  TEDISCO, WALTER, WOZNIAK, KATZ -- Multi-Sponsored by -- M. of A. MAGEE
  -- read once and referred to the Committee on Ways and Means -- recom-
  mitted  to the Committee on Ways and Means in accordance with Assembly
  Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law, in relation to a tax deduction for small
  business (Part A); to amend the tax law, in relation to small business
  employee retention tax credit (Part  B);  to  amend  the  tax  law  in
  relation  to  small  business hire-NY tax credit (Part C); relating to
  directing the commissioner of taxation and finance to develop a  small
  business  sales  tax  amnesty  program  (Part  D); to amend the public
  service law, in relation to the temporary  state  energy  and  utility
  service  conservation  assessment; and to repeal certain provisions of
  such law relating thereto (Part E); to amend the tax law, in  relation
  to the college to work program and credit (Part F); to amend the exec-
  utive  law, the state administrative procedure act and the legislative
  law, in relation to the division of  regulatory  review  and  economic
  growth (Part G); relating to directing the commissioner of the depart-
  ment  of  economic  development to develop a small business regulatory
  amnesty program (Part  H);  and  to  amend  the  legislative  law,  in
  relation to an unfunded mandate moratorium (Part I)

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

  Section 1. This act shall be known and may  be  cited  as  the  "Small
Business Full Employment Act".

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08793-04-6

              

A. 5898--A                          2

  S  2.  This  act enacts into law components of legislation relating to
"Small Business Full Employment Act". Each component is wholly contained
within a Part identified as Parts A through I. The  effective  date  for
each particular provision contained within such Part is set forth in the
last section of such Part. Any provision in any section contained within
a  Part, including the effective date of the Part, which makes reference
to a section "of this act", when used in connection with that particular
component, shall be deemed  to  mean  and  refer  to  the  corresponding
section of the Part in which it is found.

                                 PART A

  Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
section 210 of the tax law, as amended by section 12 of part A of  chap-
ter 59 of the laws of 2014, is amended to read as follows:
  (iv)  (A)  for taxable years beginning before January first, two thou-
sand sixteen, if the business income base is not more than  two  hundred
ninety  thousand dollars the amount shall be six and one-half percent of
the business income base; if the business income base is more  than  two
hundred  ninety thousand dollars but not over three hundred ninety thou-
sand dollars the amount shall be the sum of (1) eighteen thousand  eight
hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
the business income base over two hundred ninety  thousand  dollars  but
not  over three hundred ninety thousand dollars and (3) four and thirty-
five hundredths percent of the excess of the business income  base  over
three  hundred  fifty thousand dollars but not over three hundred ninety
thousand dollars;
  (B) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND SEVENTEEN, IF THE BUSINESS INCOME BASE IS NOT MORE THAN TWO HUNDRED
NINETY THOUSAND DOLLARS THE AMOUNT SHALL BE FOUR PERCENT OF THE BUSINESS
INCOME BASE; IF THE BUSINESS INCOME BASE IS MORE THAN TWO HUNDRED NINETY
THOUSAND  DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS THE
AMOUNT SHALL BE THE SUM OF (1) ELEVEN THOUSAND SIX HUNDRED DOLLARS,  (2)
SIX  AND ONE-HALF PERCENT OF THE EXCESS OF THE BUSINESS INCOME BASE OVER
TWO HUNDRED NINETY-THOUSAND DOLLARS BUT NOT OVER  THREE  HUNDRED  NINETY
THOUSAND DOLLARS AND (3) EIGHTEEN AND THIRTEEN HUNDREDTHS PERCENT OF THE
EXCESS  OF  THE  BUSINESS  INCOME BASE OVER THREE HUNDRED FIFTY THOUSAND
DOLLARS BUT NOT OVER THREE HUNDRED NINETY THOUSAND DOLLARS;
  S 2. Paragraph 39 of subsection (c) of section 612 of the tax law,  as
added  by  section  1  of  part  Y of chapter 59 of the laws of 2013, is
amended to read as follows:
  (39) (A) In the case of a taxpayer  who  is  a  small  business  OR  A
TAXPAYER WHO IS A MEMBER, PARTNER, OR SHAREHOLDER OF A LIMITED LIABILITY
COMPANY, PARTNERSHIP, OR NEW YORK S CORPORATION, RESPECTIVELY, THAT IS A
SMALL  BUSINESS,  who OR WHICH has business income and/or farm income as
defined in the laws of the United States, an  amount  equal  to  [three]
FIFTEEN  percent  of  the  net items of income, gain, loss and deduction
attributable to such business or farm  entering  into  federal  adjusted
gross income, but not less than zero[, for taxable years beginning after
two  thousand  thirteen,  an  amount  equal  to three and three-quarters
percent of the net items of income, gain, loss and  deduction  attribut-
able  to  such  business  or  farm  entering into federal adjusted gross
income, but not less than zero, for taxable years  beginning  after  two
thousand  fourteen, and an amount equal to five percent of the net items
of income, gain, loss and deduction attributable  to  such  business  or

A. 5898--A                          3

farm  entering  into  federal  adjusted  gross income, but not less than
zero, for taxable years beginning after two thousand fifteen].
  (B)(I)  For  the  purposes  of this paragraph, the term small business
shall mean: (I) a sole proprietor [or a farm business] who  employs  one
or  more persons during the taxable year and who has net business income
or net farm income of less than two hundred fifty thousand dollars;
  OR (II) A LIMITED LIABILITY COMPANY, PARTNERSHIP OR NEW YORK S  CORPO-
RATION  THAT DURING THE TAXABLE YEAR EMPLOYS ONE OR MORE PERSONS AND HAS
NEW YORK GROSS BUSINESS INCOME ATTRIBUTABLE TO A NON-FARM BUSINESS  THAT
IS  GREATER  THAN  ZERO  BUT LESS THAN ONE MILLION FIVE HUNDRED THOUSAND
DOLLARS OR NET FARM INCOME ATTRIBUTABLE  TO  A  FARM  BUSINESS  THAT  IS
GREATER THAN ZERO BUT LESS THAN TWO HUNDRED FIFTY THOUSAND DOLLARS.
  (II)  FOR PURPOSES OF THIS PARAGRAPH, THE TERM NEW YORK GROSS BUSINESS
INCOME SHALL MEAN: (I) IN THE CASE OF LIMITED  LIABILITY  COMPANY  OR  A
PARTNERSHIP  NEW YORK SOURCE GROSS INCOME AS DEFINED IN SUBPARAGRAPH (B)
OF PARAGRAPH THREE OF SUBSECTION (C) OF SECTION SIX HUNDRED  FIFTY-EIGHT
OF  THIS ARTICLE, AND, (II) IN THE CASE OF A NEW YORK S CORPORATION, NEW
YORK RECEIPTS INCLUDED IN THE  NUMERATOR  OF  THE  APPORTIONMENT  FACTOR
DETERMINED UNDER SECTION TWO HUNDRED TEN-A OF THIS CHAPTER FOR THE TAXA-
BLE YEAR.
  (C)  TO  QUALIFY FOR THIS MODIFICATION IN RELATION TO A SMALL BUSINESS
THAT IS A LIMITED LIABILITY COMPANY, PARTNERSHIP OF NEW  YORK  S  CORPO-
RATION,  THE  TAXPAYER'S  INCOME ATTRIBUTABLE TO THE NET BUSINESS INCOME
AND/OR NET FARM INCOME FROM ITS OWNERSHIP INTERESTS IN LIMITED LIABILITY
COMPANIES, PARTNERSHIPS OR NEW YORK S CORPORATIONS MUST BE LESS THAN TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  S 3. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART B

  Section 1. The tax law is amended by adding a new section 42  to  read
as follows:
  S  42.  SMALL BUSINESS EMPLOYEE RETENTION TAX CREDIT. (A) ALLOWANCE OF
CREDIT.  A SMALL BUSINESS TAXPAYER, WHICH IS SUBJECT TO TAX UNDER  ARTI-
CLE  NINE-A  OR  TWENTY-TWO  OF  THIS  CHAPTER AND RETAINS THE BASE YEAR
EMPLOYMENT LEVEL, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE CREDIT
SHALL BE ONE THOUSAND DOLLARS FOR SMALL BUSINESSES THAT  RETAIN  BETWEEN
ONE AND TEN EMPLOYEES; TWO THOUSAND FIVE HUNDRED DOLLARS FOR SMALL BUSI-
NESSES THAT RETAIN BETWEEN ELEVEN AND TWENTY-FIVE EMPLOYEES; THREE THOU-
SAND FIVE HUNDRED DOLLARS FOR SMALL BUSINESSES THAT RETAIN BETWEEN TWEN-
TY-SIX  AND  FIFTY  EMPLOYEES;  AND  FIVE  THOUSAND  DOLLARS  FOR  SMALL
BUSINESSES THAT RETAIN BETWEEN FIFTY-ONE AND ONE HUNDRED EMPLOYEES.
  (B) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "SMALL BUSINESS TAXPAYER" SHALL MEAN AN EMPLOYER WITH AT LEAST ONE
EMPLOYEE BUT NOT MORE THAN ONE HUNDRED FULL TIME EMPLOYEES.
  (2) "BASE YEAR" SHALL MEAN THE PRIOR TAX YEAR.
  (3) "EMPLOYEE" SHALL MEAN AN INDIVIDUAL EMPLOYED ON A FULL-TIME BASIS.
  (C)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:

A. 5898--A                          4

  49. SMALL BUSINESS EMPLOYEE RETENTION TAX  CREDIT.  (A)  ALLOWANCE  OF
CREDIT.  A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED
IN SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE TAX  IMPOSED  BY  THIS
ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  SMALL  BUSINESS  EMPLOYEE  RETENTION TAX CREDIT. (1) A TAXPAYER
WILL BE ALLOWED A CREDIT, TO THE EXTENT ALLOWED UNDER SECTION  FORTY-TWO
OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF  CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.   HOWEVER,  IF  THE  AMOUNT  OF
CREDIT  ALLOWED  UNDER  THIS SUBSECTION FOR ANY TAXABLE YEAR REDUCES THE
TAX TO SUCH AMOUNT, ANY AMOUNT OR CREDIT THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE  YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR
REFUNDED IN ACCORDANCE WITH  THE  PROVISIONS  OF  SECTION  ONE  THOUSAND
EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,  THE  PROVISIONS  OF
SUBSECTION (C) OF SECTION ONE  THOUSAND  EIGHTY-EIGHT  OF  THIS  CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:
(XLI) SMALL BUSINESS EMPLOYEE        AMOUNT OF CREDIT UNDER
RETENTION TAX CREDIT UNDER           SUBDIVISION FORTY-NINE OF
SUBSECTION (CCC)                     SECTION TWO HUNDRED TEN-B
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART C

  Section  1.  The tax law is amended by adding a new section 43 to read
as follows:
  S 43. SMALL BUSINESS HIRE-NY TAX CREDIT. (A) ALLOWANCE  OF  CREDIT.  A
SMALL BUSINESS TAXPAYER, WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR
TWENTY-TWO  OF  THIS  CHAPTER  AND CREATES A NEW JOB, SHALL BE ALLOWED A
CREDIT AGAINST SUCH TAX. THE CREDIT SHALL BE FIVE THOUSAND  DOLLARS  FOR
ANY  NEW  JOB  FOR  ONE  FULL YEAR OF EMPLOYMENT BY AN EMPLOYEE; IF THAT
EMPLOYEE HAS BEEN HIRED FOR LESS THAN A FULL TAX YEAR THIS AMOUNT  SHALL
BE PRORATED AND APPORTIONED TO EACH TAX YEAR.
  (B)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "SMALL BUSINESS TAXPAYER" SHALL MEAN AN EMPLOYER WITH AT LEAST ONE
EMPLOYEE BUT NOT MORE THAN ONE HUNDRED FULL-TIME EMPLOYEES.
  (2) "BASE YEAR" SHALL MEAN THE PRIOR TAX YEAR.

A. 5898--A                          5

  (3) "NEW  JOB"  SHALL  MEAN  THE  NUMBER  OF  FULL-TIME  EMPLOYEES  OR
FULL-TIME  EQUIVALENT EMPLOYEES ABOVE THE NUMBER OF EMPLOYEES DURING THE
BASE YEAR. FOR A NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (4) "EMPLOYEE" SHALL MEAN AN INDIVIDUAL EMPLOYED ON A FULL-TIME BASIS.
  (C)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 51 to read as follows:
  51. SMALL BUSINESS HIRE-NY TAX CREDIT. (A) ALLOWANCE  OF  CREDIT.    A
TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION
FORTY-THREE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(eee) to read as follows:
  (EEE)  SMALL  BUSINESS  HIRE-NY  TAX  CREDIT.  (1)  A TAXPAYER WILL BE
ALLOWED A CREDIT, TO THE EXTENT ALLOWED  UNDER  SECTION  FORTY-THREE  OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CRED-
IT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAX
TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xliii) to read as
follows:
(XLIII) SMALL BUSINESS HIRE-NY TAX   AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION              SUBDIVISION FIFTY-ONE OF
(EEE)                                SECTION TWO HUNDRED TEN-B
  S 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2017.

                                 PART D

  Section 1. The commissioner of taxation and finance shall develop  and
implement  a  "sales  tax amnesty program" which allows a period of time
for small businesses to pay a defined payment of tax  amount  due  as  a
result  of  an  audit  by  the  department  of  taxation and finance, in
exchange for forgiveness of a  tax  liability,  including  interest  and

A. 5898--A                          6

penalties.  Small  businesses  are businesses with less than one hundred
employees.
  S 2. This act shall take effect immediately.

                                 PART E

  Section  1. Subdivision 6 of section 18-a of the public service law is
REPEALED.
  S 2. Paragraph (g) of subdivision 2 of  section  18-a  of  the  public
service  law,  as  amended  by section 2 of part A of chapter 173 of the
laws of 2013, is amended to read as follows:
  (g) The total amount which may be charged to any public utility compa-
ny and the Long Island power authority under authority of this  subdivi-
sion  for  any  state  fiscal year shall not exceed ONE-THIRD OF one per
centum of such public utility company's or authority's  gross  operating
revenues  derived from intrastate utility operations in the last preced-
ing calendar year, or other twelve month period  as  determined  by  the
chairman;  provided,  however,  that  no  corporation  or person that is
subject to the jurisdiction of the commission only with respect to safe-
ty, or the power authority of the state of New York, shall be subject to
the general assessment provided for under this subdivision.
  Notwithstanding the provisions of subdivision one of this section, for
telephone corporations as defined in subdivision  seventeen  of  section
two  of  this article, the total amount which may be charged such corpo-
rations for department expenses under the authority of  subdivision  one
of  this section for any state fiscal year shall not exceed one-third of
one percentum of such corporation's gross operating  revenue,  over  and
above  five  hundred  thousand  dollars, derived from intrastate utility
operations in the last preceding calendar year, or  other  twelve  month
period as determined by the chairman.
  S 3. This act shall take effect immediately.

                                 PART F

  Section  1.  Section  210-B  of the tax law is amended by adding a new
subdivision 52 to read as follows:
  52. CREDIT FOR COLLEGE TO WORK PROGRAM. (A) ALLOWANCE OF  CREDIT.    A
TAXPAYER  WHO  IS  A  SMALL  BUSINESS  SHALL  BE ALLOWED A CREDIT, TO BE
COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
CLE,  BASED  UPON  ITS  PAYMENT  OF  TUITION TO AN INSTITUTION OF HIGHER
EDUCATION ON BEHALF OF A QUALIFIED INDIVIDUAL EMPLOYEE FOR A  NUMBER  OF
YEARS,  AS  SET  FORTH IN A WRITTEN AGREEMENT BETWEEN THE SMALL BUSINESS
TAXPAYER AND THE INDIVIDUAL EMPLOYEE.
  (B) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN THE TUITION AND FEES PAID FOR THE ENROLLMENT AND  ATTENDANCE  OF  A
QUALIFIED  INDIVIDUAL EMPLOYEE AT AN INSTITUTION OF HIGHER EDUCATION, AS
WELL AS MONIES PAID FOR TEXTBOOKS IN CONNECTION WITH  ATTENDANCE  AT  AN
INSTITUTION  OF  HIGHER  EDUCATION. PROVIDED, HOWEVER, ANY AMOUNTS WHICH
HAVE BEEN PAID FOR OR REIMBURSED BY ANY OTHER SCHOLARSHIPS OR  FINANCIAL
AID,  OR  TUITION  REQUIRED  FOR ENROLLMENT OR ATTENDANCE IN A COURSE OF
STUDY LEADING TO THE GRANTING OF A POST BACCALAUREATE OR OTHER  GRADUATE
DEGREE, SHALL BE EXCLUDED FORM THE DEFINITION OF "TUITION".
  (C)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-

A. 5898--A                          7

ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY
LEADING  TO  THE  GRANTING  OF  A  POST-SECONDARY DEGREE, CERTIFICATE OR
DIPLOMA.
  (D) QUALIFIED INDIVIDUAL EMPLOYEE. FOR PURPOSES OF  THIS  CREDIT,  THE
TERM  "QUALIFIED INDIVIDUAL EMPLOYEE" SHALL MEAN ANY INDIVIDUAL EMPLOYEE
WHO IS NOT A SPOUSE, CHILD OR DEPENDENT OF THE TAXPAYER OR ANY  INDIVID-
UAL  EMPLOYEE  WHO IS NOT A SPOUSE, CHILD OR DEPENDENT OF ANY OFFICER OR
EMPLOYEE OF THE TAXPAYER.
  (E) WRITTEN AGREEMENT. FOR PURPOSES OF THIS CREDIT, THE TERM  "WRITTEN
AGREEMENT"  SHALL  MEAN  A  DOCUMENT  SIGNED AND DATED BY BOTH THE SMALL
BUSINESS TAXPAYER AND THE QUALIFIED INDIVIDUAL EMPLOYEE  WHICH  CONTAINS
PROVISIONS  INCLUDING  BUT  NOT  LIMITED TO THE MINIMUM SALARY WHICH THE
TAXPAYER WILL PAY TO THE QUALIFIED INDIVIDUAL  UPON  COMPLETION  OF  THE
INDIVIDUAL'S DEGREE; THE REQUIRED DURATION OF EMPLOYMENT UPON COMPLETION
OF THE INDIVIDUAL'S DEGREE; AND THE PARTIES' RESPECTIVE RESPONSIBILITIES
IN THE EVENT THAT THE TAXPAYER CEASES OPERATIONS OR LATER DECIDES NOT TO
OFFER  EMPLOYMENT TO THE INDIVIDUAL UPON COMPLETION OF HIS/HER DEGREE OR
IN THE EVENT THAT THE QUALIFIED INDIVIDUAL FAILS TO COMPLETE THE  DEGREE
OR TO WORK FOR THE TAXPAYER FOR THE AGREED UPON TERM.
  (F) SMALL BUSINESS. FOR PURPOSES OF THIS CREDIT, THE TERM "SMALL BUSI-
NESS" SHALL MEAN ANY BUSINESS WITH LESS THAN ONE HUNDRED EMPLOYEES.
  (G)  AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISION OF ANY OTHER LAW,
A TAXPAYER WHICH PROVIDES FOR THE PAYMENT OF  AN  INDIVIDUAL  EMPLOYEE'S
TUITION  UNDER  THE COLLEGE TO WORK PROGRAM ESTABLISHED BY THIS SUBDIVI-
SION, SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE,
TO THE EXTENT OF TWENTY-FIVE PERCENT OF MONIES PAID  FOR  EACH  INDIVID-
UAL'S  TUITION,  BUT  SUCH CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS
FOR ONE YEAR FOR EACH SUCH QUALIFIED INDIVIDUAL.
  (H) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
HUNDRED TEN OF THIS ARTICLE. PROVIDED, HOWEVER, IF THE AMOUNT OF  CREDIT
ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
follows:
(XLIV) COLLEGE TO WORK PROGRAM       AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (S-1)        SUBDIVISION FIFTY-TWO
                                     OF SECTION TWO HUNDRED TEN-B
  S  3. Section 606 of the tax law is amended by adding a new subsection
(s-1) to read as follows:
  (S-1) CREDIT FOR COLLEGE TO WORK PROGRAM. (1) ALLOWANCE OF  CREDIT.  A
TAXPAYER  WHO  IS  A  SMALL  BUSINESS  SHALL  BE ALLOWED A CREDIT, TO BE
COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
CLE,  BASED UPON SUCH TAXPAYER'S PAYMENT OF TUITION TO AN INSTITUTION OF
HIGHER EDUCATION  ON  BEHALF  OF  A  QUALIFIED  INDIVIDUAL  EMPLOYEE  IN
EXCHANGE  FOR  THE  INDIVIDUAL  AGREEING  TO WORK FOR THE TAXPAYER FOR A
NUMBER OF YEARS, AS SET FORTH IN A WRITTEN AGREEMENT BETWEEN THE TAXPAY-
ER AND THE INDIVIDUAL.  FOR THE PURPOSE OF THIS SUBSECTION "SMALL  BUSI-
NESS" SHALL MEAN A BUSINESS WHICH HAS ONE HUNDRED OR FEWER EMPLOYEES.

A. 5898--A                          8

  (2) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN  THE  TUITION AND FEES PAID FOR THE ENROLLMENT AND ATTENDANCE OF AN
INDIVIDUAL AT AN INSTITUTION OF HIGHER EDUCATION, AS WELL AS MONIES PAID
FOR TEXTBOOKS IN CONNECTION WITH ATTENDANCE AT AN INSTITUTION OF  HIGHER
EDUCATION.  PROVIDED,  HOWEVER,  ANY AMOUNTS WHICH HAVE BEEN PAID FOR OR
REIMBURSED BY ANY  OTHER  SCHOLARSHIPS  OR  FINANCIAL  AID,  OR  TUITION
REQUIRED  FOR  ENROLLMENT  OR ATTENDANCE IN A COURSE OF STUDY LEADING TO
THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE, SHALL  BE
EXCLUDED FROM THE DEFINITION OF "TUITION".
  (3)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-
ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY
LEADING TO THE GRANTING  OF  A  POST-SECONDARY  DEGREE,  CERTIFICATE  OR
DIPLOMA.
  (4)  QUALIFIED  INDIVIDUAL  EMPLOYEE. FOR PURPOSES OF THIS CREDIT, THE
TERM "QUALIFIED INDIVIDUAL EMPLOYEE" SHALL MEAN ANY INDIVIDUAL  EMPLOYEE
WHO  IS NOT A SPOUSE, CHILD OR DEPENDENT OF THE TAXPAYER OR ANY INDIVID-
UAL EMPLOYEE WHO IS NOT A SPOUSE, CHILD OR DEPENDENT OF ANY  OFFICER  OR
EMPLOYEE OF THE TAXPAYER.
  (5)  WRITTEN AGREEMENT. FOR PURPOSES OF THIS CREDIT, THE TERM "WRITTEN
AGREEMENT" SHALL MEAN A DOCUMENT SIGNED AND  DATED  BY  BOTH  THE  SMALL
BUSINESS  TAXPAYER  AND THE QUALIFIED INDIVIDUAL EMPLOYEE WHICH CONTAINS
PROVISIONS INCLUDING BUT NOT LIMITED TO THE  MINIMUM  SALARY  WHICH  THE
TAXPAYER  WILL  PAY  TO  THE QUALIFIED INDIVIDUAL UPON COMPLETION OF THE
INDIVIDUAL'S DEGREE; THE REQUIRED DURATION OF EMPLOYMENT UPON COMPLETION
OF THE INDIVIDUAL'S DEGREE; AND THE PARTIES' RESPECTIVE RESPONSIBILITIES
IN THE EVENT THAT THE TAXPAYER CEASES OPERATIONS OR LATER DECIDES NOT TO
OFFER EMPLOYMENT TO THE INDIVIDUAL UPON COMPLETION OF HIS/HER DEGREE  OR
IN  THE EVENT THAT THE QUALIFIED INDIVIDUAL FAILS TO COMPLETE THE DEGREE
OR TO WORK FOR THE TAXPAYER FOR THE AGREED UPON TERM.
  (6) SMALL BUSINESS. FOR PURPOSES OF THIS CREDIT, THE TERM "SMALL BUSI-
NESS" SHALL MEAN ANY BUSINESS WITH LESS THAN ONE HUNDRED EMPLOYEES.
  (7) AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
A TAXPAYER WHO PROVIDES FOR THE  PAYMENT  OF  AN  INDIVIDUAL  EMPLOYEE'S
TUITION   UNDER   THE  COLLEGE  TO  WORK  PROGRAM  ESTABLISHED  BY  THIS
SUBSECTION, SHALL BE ALLOWED A CREDIT AGAINST THE TAX  IMPOSED  BY  THIS
ARTICLE,  TO  THE  EXTENT OF TWENTY-FIVE PERCENT OF MONIES PAID FOR EACH
INDIVIDUAL'S TUITION, BUT SUCH CREDIT SHALL  NOT  EXCEED  FIVE  THOUSAND
DOLLARS FOR ONE YEAR FOR EACH SUCH QUALIFIED INDIVIDUAL.
  (8) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR  ANY  TAXABLE  YEAR  EXCEEDS  THE  TAXPAYER'S TAX FOR SUCH YEAR, ANY
AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM  THE  TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS.
  S  4.  This  act  shall take effect immediately and shall apply to all
taxable years commencing after January 1, 2017.

                                 PART G

  Section 1. Article 50 and sections 1000, 1001, 1002 and  1003  of  the
executive  law,  as  renumbered  by  chapter 770 of the laws of 1978 are

A. 5898--A                          9

renumbered article 52 and sections 1050, 1051, 1052 and 1053 and  a  new
article 50 is added to read as follows:
                               ARTICLE 50
            DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
SECTION 1010. DEFINITIONS.
        1011. DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH.
        1012. GENERAL FUNCTIONS, POWERS AND DUTIES.
        1013. ASSISTANCE OF OTHER STATE AGENCIES.
        1014. REGULATION REVIEW.
        1014-A. REGULATIONS AFFECTING SMALL BUSINESS.
        1015. DIVISION ANNUAL RECOMMENDATIONS.
        1016. IMPLEMENTATION OF RECOMMENDATIONS.
        1017. COST OF REGULATION STUDY.
  S  1010.  DEFINITIONS.  WHEN USED IN THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DIVISION OF REGULATORY
REVIEW AND ECONOMIC GROWTH.
  2. "DIVISION" MEANS THE DIVISION OF  REGULATORY  REVIEW  AND  ECONOMIC
GROWTH CREATED BY THIS ARTICLE.
  3.  "PERMIT"  SHALL MEAN THE WHOLE OR PART OF ANY STATE AGENCY PERMIT,
LICENSE, CERTIFICATE, APPROVAL, REGISTRATION, CHARTER, OR  SIMILAR  FORM
OF  PERMISSION  OR  AUTHORITY  REQUIRED  BY  LAW OR BY STATE AGENCY RULE
HAVING THE FORCE AND EFFECT OF LAW, WHICH IS  REQUIRED  FOR  A  BUSINESS
UNDERTAKING,  PROJECT  OR ACTIVITY; PROVIDED, HOWEVER, IT SHALL NOT MEAN
INDIVIDUAL LICENSES FOR PRACTICING  A  PROFESSION  PRESCRIBED  IN  TITLE
EIGHT  OF  THE EDUCATION LAW, FILINGS UNDER THE UNIFORM COMMERCIAL CODE,
OR ROUTINE LICENSES AND PERMITS  FOR  INDIVIDUAL  PRIVILEGES,  INCLUDING
LICENSES  FOR  OPERATING  A MOTOR VEHICLE AND AMATEUR SPORTING LICENSES,
SUCH AS FOR HUNTING AND FISHING.
  4. "RULE" MEANS A RULE AS DEFINED IN SUBPARAGRAPH (I) OF PARAGRAPH (A)
OF SUBDIVISION TWO OF SECTION ONE HUNDRED TWO OF THE  STATE  ADMINISTRA-
TIVE  PROCEDURE ACT, INCLUDING RULES OF THE WORKERS' COMPENSATION BOARD,
BUT DOES NOT INCLUDE THE RULES OF  THE  STATE  COMPTROLLER  OR  ATTORNEY
GENERAL,  RULES  REGARDING  JURISDICTIONAL  CLASSIFICATIONS  PURSUANT TO
SUBDIVISION ONE OF SECTION SIX OF THE CIVIL SERVICE LAW, AND THE  ALTER-
ATION  OF  HUNTING  OR FISHING SEASONS PURSUANT TO ARTICLE ELEVEN OF THE
ENVIRONMENTAL CONSERVATION LAW.
  5. "STATE AGENCY" MEANS AN AGENCY AS DEFINED  IN  SUBDIVISION  ONE  OF
SECTION ONE HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
  6. "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS SET FORTH IN SUBDI-
VISION TWENTY OF SECTION THREE HUNDRED TEN OF THIS CHAPTER.
  S  1011.   DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH. 1. THERE
IS HEREBY CREATED IN THE EXECUTIVE DEPARTMENT THE DIVISION OF REGULATORY
REVIEW AND ECONOMIC GROWTH. THE  HEAD  OF  THE  DIVISION  SHALL  BE  THE
COMMISSIONER OF THE DIVISION WHO SHALL BE APPOINTED BY THE GOVERNOR WITH
THE CONSENT OF THE SENATE AND SERVE A TERM OF FIVE YEARS.
  2. THE COMMISSIONER MUST HAVE AT LEAST TEN YEARS OF EXPERIENCE RUNNING
A FOR-PROFIT BUSINESS, WITH AT LEAST THREE YEARS EXPERIENCE AS THE CHIEF
EXECUTIVE  OFFICER,  CHIEF OPERATING   OFFICER, CHIEF FINANCIAL OFFICER,
PRESIDENT, OWNER, OR ANY OTHER TITLE USED FOR THE HIGHEST RANKING  OFFI-
CER, ADMINISTRATOR OR MANAGER OF A FOR-PROFIT BUSINESS.
  3.  THE  COMMISSIONER SHALL BE APPOINTED BY THE GOVERNOR WITHIN THIRTY
DAYS OF THE EFFECTIVE DATE OF THIS SECTION AND WITHIN THIRTY DAYS OF THE
EXPIRATION OF EVERY FIVE YEAR TERM THEREAFTER, AND UPON CONFIRMATION  OF
THE  SENATE  SHALL SERVE A TERM OF FIVE YEARS EFFECTIVE FROM THE DATE OF
CONFIRMATION. IF THE SENATE REJECTS AN APPOINTMENT, THE  GOVERNOR  SHALL

A. 5898--A                         10

HAVE  THIRTY  DAYS  FROM  THE  DATE  OF THE REJECTION TO APPOINT ANOTHER
COMMISSIONER.
  4.  THE  COMMISSIONER  MAY  ONLY  BE  REMOVED  FROM OFFICE BY A FELONY
CONVICTION OR A CRIME INVOLVING A VIOLATION OF HIS OR HER OATH OF OFFICE
OR BY THE ASSENT OF TWO-THIRDS OF THE MEMBERS ELECTED TO EACH BRANCH  OF
THE LEGISLATURE VOTING SEPARATELY.
  5. SUCH COMMISSIONER SHALL RECEIVE AN ANNUAL SALARY TO BE FIXED BY THE
GOVERNOR  WITHIN THE AMOUNT MADE AVAILABLE THEREFOR BY APPROPRIATION AND
SHALL BE ALLOWED HIS  OR  HER  ACTUAL  AND  NECESSARY  EXPENSES  IN  THE
PERFORMANCE OF HIS OR HER DUTIES.
  6.  UPON  APPOINTMENT  AND  UNTIL  SUCH TERM EXPIRES, THE COMMISSIONER
SHALL NOT (A) PARTICIPATE IN ANY PARTISAN  POLITICAL  PARTY  ACTIVITIES,
EXCEPT THAT SUCH CANDIDATE MAY REGISTER TO VOTE AS A MEMBER OF ANY POLI-
TICAL  PARTY  AND MAY VOTE IN ANY PARTY PRIMARY FOR CANDIDATES FOR NOMI-
NATION OF THE PARTY IN WHICH HE  OR  SHE  IS  REGISTERED  TO  VOTE;  (B)
ENDORSE  ANY  CANDIDATE OR POLITICAL PARTY; OR (C) MAKE CONTRIBUTIONS TO
ANY CANDIDATE, POLITICAL PARTY COMMITTEE, POLITICAL ACTION COMMITTEE  OR
POLITICAL COMMITTEE PURSUANT TO SUBDIVISION TEN OF SECTION 14-114 OF THE
ELECTION LAW.
  7. THE COMMISSIONER SHALL DIRECT THE WORK OF THE DIVISION AND SHALL BE
THE  CHIEF EXECUTIVE OFFICER OF THE DIVISION. THE COMMISSIONER MAY ENTER
INTO CONTRACTS AND EXPEND MONEY, AND APPOINT SUCH OFFICERS AND EMPLOYEES
AS HE OR SHE MAY DEEM  NECESSARY,  PRESCRIBE  THEIR  DUTIES,  FIX  THEIR
COMPENSATION,  AND  PROVIDE FOR THE REIMBURSEMENT OF THEIR EXPENSES, ALL
WITHIN AMOUNTS MADE AVAILABLE  THEREFOR  BY  APPROPRIATION.  SUCH  STAFF
SHALL  BE  MANAGEMENT  CONFIDENTIAL  EMPLOYEES  WITH AN UNDERSTANDING OF
PRIVATE SECTOR BUSINESS.
  S 1012. GENERAL FUNCTIONS, POWERS AND DUTIES. THE DIVISION OF  REGULA-
TORY  REVIEW AND ECONOMIC GROWTH, BY AND THROUGH THE COMMISSIONER OR HIS
OR HER DULY AUTHORIZED OFFICERS AND EMPLOYEES, SHALL HAVE THE  FOLLOWING
FUNCTIONS, POWERS AND DUTIES:
  1. TO PROVIDE AN OVERSIGHT, REVIEW AND ANALYSIS OF THE RULES AND REGU-
LATORY PROCESSES OF STATE AGENCIES.
  2.  TO MAKE BINDING RECOMMENDATIONS TO THE GOVERNOR AND LEGISLATURE ON
BURDENSOME NEW YORK STATE CODES, RULES,  REGULATIONS,  REGULATORY  PROC-
ESSES,  AND  PERMIT REQUIREMENTS TO ELIMINATE OR AMEND THEM, PURSUANT TO
SECTION ONE THOUSAND FIFTEEN OF THIS ARTICLE.
  3. TO REVIEW THE  ENVIRONMENTAL  QUALITY  REVIEW  PROCESS  ESTABLISHED
UNDER  ARTICLE  EIGHT  OF  THE  ENVIRONMENTAL  CONSERVATION LAW AND MAKE
RECOMMENDATIONS PURSUANT TO SUBDIVISION TWO OF THIS SECTION TO ESTABLISH
A MORE EFFICIENT, PREDICTABLE, TIMELY, AND TRANSPARENT PROCESS,  AND  TO
ENSURE  THAT  THE  PROCESS  DOES  NOT STIFLE ECONOMIC GROWTH IN NEW YORK
STATE.
  4. TO REVIEW PERMIT REQUIREMENTS AND THE NEED BY THE STATE TO  REQUIRE
SUCH PERMITS. THE DIVISION SHALL MAKE RECOMMENDATIONS PURSUANT TO SUBDI-
VISION  TWO  OF  THIS SECTION TO ELIMINATE, CONSOLIDATE, SIMPLIFY, EXPE-
DITE, OR OTHERWISE IMPROVE PERMITS,  PERMIT  PROCEDURES,  AND  PAPERWORK
BURDENS AFFECTING LOCAL GOVERNMENTS, SCHOOL DISTRICTS OR BUSINESSES.
  5.  TO ENCOURAGE AND FACILITATE THE PARTICIPATION OF FEDERAL AND LOCAL
GOVERNMENT AGENCIES IN REGULATORY REVIEW.
  6. TO ESTABLISH AN 800 HOTLINE AND WEBSITE TO PROVIDE BUSINESSES  WITH
ONE  CONTACT  NUMBER  TO  DIRECT  QUESTIONS AND TO PROVIDE ASSISTANCE TO
BUSINESSES IN THE STATE OR BUSINESSES LOOKING TO OPEN OR EXPAND  IN  NEW
YORK STATE. SUCH HOTLINE MAY BE USED TO REPORT REGULATORY BURDENS, STATE
AGENCIES  OVERREACHING  THEIR  POWER,  EXCESSIVE  FINES  AND  TO  SUBMIT
REQUESTS FOR REGULATORY REVIEW BY THE COMMISSIONER.

A. 5898--A                         11

  7. TO ADOPT SUCH RULES AND REGULATIONS, PROCEDURES, INSTRUCTIONS,  AND
FORMS  AS ARE NECESSARY OR DESIRABLE TO CARRY OUT THE FUNCTIONS, POWERS,
AND DUTIES IMPOSED UPON THE DIVISION BY THIS ARTICLE.
  8.  TO PUBLISH AN ANNUAL REPORT, AFTER JANUARY FIRST AND BEFORE FEBRU-
ARY FIRST, COMMENCING TWO THOUSAND NINETEEN, INCLUDING  ALL  RECOMMENDA-
TIONS  PROPOSED BY THE DIVISION AND THOSE RECOMMENDATIONS IMPLEMENTED BY
THE STATE DURING THE PRIOR CALENDAR  YEAR.  SUCH  REPORT  SHALL  INCLUDE
SPECIFIC DETAILS CONCERNING ESTIMATED COST SAVINGS TO THE TAXPAYERS FROM
PROPOSED  RECOMMENDATIONS  AND ACTUAL COST SAVINGS TO THE TAXPAYERS FROM
IMPLEMENTED RECOMMENDATIONS.
  S 1013. ASSISTANCE OF OTHER STATE AGENCIES. TO EFFECTUATE THE PURPOSES
OF THIS ARTICLE, THE COMMISSIONER MAY REQUEST AND SHALL BE  ENTITLED  TO
RECEIVE  FROM  ANY STATE AGENCY, AND THE SAME ARE AUTHORIZED TO PROVIDE,
SUCH ASSISTANCE, SERVICES, FACILITIES, AND DATA AS WILL ENABLE THE DIVI-
SION TO CARRY OUT ITS FUNCTIONS, POWERS AND DUTIES.
  S 1014. REGULATION REVIEW. 1. IN DEVELOPING A RULE, EACH  AGENCY  HEAD
SHALL,  PRIOR  TO  SUBMITTING A NOTICE OF PROPOSED OR REVISED RULEMAKING
FOR PUBLICATION IN THE STATE REGISTER PURSUANT TO  SECTION  TWO  HUNDRED
TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT, SUBMIT TO THE COMMISSION-
ER,  IN  SUCH  FORM  AND  MANNER  AS THE COMMISSIONER MAY PRESCRIBE, THE
COMPLETE TEXT OF THE RULE, ANY IMPACT STATEMENTS WHICH WOULD BE REQUIRED
BY ARTICLE TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT TO PROPOSE  THE
RULE,  AND ANY COST-BENEFIT ANALYSIS, RISK ASSESSMENT AND/OR THE RESULTS
OF A NEGOTIATED RULEMAKING OR POLICY DIALOGUE UNDERTAKEN IN  CONJUNCTION
WITH THE DEVELOPMENT OF THE RULE.
  2.  THE COMMISSIONER SHALL REVIEW THE AGENCY'S SUBMISSION TO DETERMINE
WHETHER IT IS COMPLETE AND IN ACCORDANCE WITH THE  GOALS,  CRITERIA  AND
REQUIREMENTS OF THIS ARTICLE AND ARTICLE TWO OF THE STATE ADMINISTRATIVE
PROCEDURE ACT, INCLUDING WHETHER THE RULE:
  (A) IS CLEARLY WITHIN THE AUTHORITY DELEGATED BY LAW;
  (B) IS CONSISTENT WITH AND NECESSARY TO ACHIEVE A SPECIFIC LEGISLATIVE
INTENT  OF PROMOTING ECONOMIC GROWTH OR PROTECTING THE HEALTH AND SAFETY
OF THE PUBLIC;
  (C) IS CONSISTENT WITH STATE STATUTORY REQUIREMENTS;
  (D) DOES NOT IMPOSE A MANDATE ON LOCAL GOVERNMENTS,  SCHOOL  DISTRICTS
OR  BUSINESSES THAT IS NOT FULLY FUNDED, EXCEPT AS SPECIFICALLY REQUIRED
BY STATE STATUTE;
  (E) IS CLEARLY WRITTEN SO THAT ITS MEANING WILL BE  EASILY  UNDERSTOOD
BY THOSE PERSONS AFFECTED BY IT;
  (F)  DOES  NOT  UNNECESSARILY  DUPLICATE OR EXCEED EXISTING FEDERAL OR
STATE STATUTES OR RULES;
  (G) PRESCRIBES METHODOLOGIES  OR  REQUIREMENTS  THAT  ALLOW  REGULATED
PARTIES  FLEXIBILITY AND ENCOURAGE INNOVATION IN MEETING THE LEGISLATIVE
OR ADMINISTRATIVE REQUIREMENTS AND OBJECTIVES UNDERLYING THE RULE;
  (H) IS BASED ON CREDIBLE ASSESSMENTS, USING RECOGNIZED  STANDARDS,  OF
THE  DEGREE  AND NATURE OF THE RISKS WHICH MAY BE REGULATED, INCLUDING A
COMPARISON WITH EVERYDAY RISKS FAMILIAR TO THE PUBLIC;
  (I) GIVES PREFERENCE TO THE LEAST COSTLY, LEAST BURDENSOME  REGULATORY
AND PAPERWORK REQUIREMENTS NEEDED TO ACCOMPLISH LEGISLATIVE AND ADMINIS-
TRATIVE OBJECTIVES;
  (J) IS BASED UPON THE BEST SCIENTIFIC, TECHNICAL AND ECONOMIC INFORMA-
TION THAT CAN REASONABLY AND AFFORDABLY BE OBTAINED; AND
  (K)  IF  POSSIBLE  AND PRACTICAL, FAVORS MARKET-ORIENTED SOLUTIONS AND
PERFORMANCE STANDARDS OVER COMMAND-AND-CONTROL REGULATION.
  3. IF THE COMMISSIONER DETERMINES THAT  THE  SUBMISSION  IS  COMPLETE,
COMPLIES  WITH  THE  PROVISIONS OF SUBDIVISION TWO OF THIS SECTION, WILL

A. 5898--A                         12

PROMOTE ECONOMIC GROWTH, OR IS VITAL TO PROTECT THE HEALTH AND SAFETY OF
THE PUBLIC, THE COMMISSIONER SHALL AUTHORIZE THE AGENCY  TO  SUBMIT  THE
RULEMAKING FOR PUBLICATION IN THE STATE REGISTER PURSUANT TO SECTION TWO
HUNDRED TWO OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
  4.  IF  THE  COMMISSIONER DETERMINES THE SUBMISSION IS NOT COMPLETE OR
DOES NOT COMPLY  WITH  THE  REQUIREMENTS  OF  SUBDIVISION  TWO  OF  THIS
SECTION,  OR  IS DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK STATE, OR IS
NOT VITAL TO PROTECT THE HEALTH AND SAFETY OF THE  PUBLIC,  THE  COMMIS-
SIONER MAY REJECT THE RULE OR RETURN IT TO THE AGENCY, TOGETHER WITH ANY
DIRECTION  THAT  THE  AGENCY  AMEND,  PREPARE  OR  REVISE  THE RULE, ANY
SUPPORTING IMPACT STATEMENTS, COST BENEFIT  ANALYSIS,  RISK  ASSESSMENT,
AND/OR UNDERTAKE A NEGOTIATED RULEMAKING OR POLICY DIALOGUE TO DEVELOP A
RULE  FOR PROPOSAL.   THE DIVISION MAY ASSIST THE AGENCY IN DEVELOPING A
PROPOSAL THAT MEETS THE REQUIREMENTS OF SUBDIVISION TWO OF THIS SECTION.
  5. AN AGENCY  MAY  CONSULT  INFORMALLY  WITH  THE  DIVISION  REGARDING
PROPOSED RULES, SUPPORTING IMPACT STATEMENTS, AND OTHER DOCUMENTS AT ANY
TIME  PRIOR  TO THE SUBMISSION OF SUCH MATERIALS PURSUANT TO SUBDIVISION
ONE OF THIS SECTION. SUCH INFORMAL CONSULTATION SHALL NOT BE BINDING  ON
THE DIVISION OR THE AGENCY.
  6.  NO  AGENCY HEAD SHALL SUBMIT A NOTICE OF PROPOSED OR REVISED RULE-
MAKING FOR PUBLICATION IN THE STATE REGISTER  PURSUANT  TO  SECTION  TWO
HUNDRED  TWO  OF THE STATE ADMINISTRATIVE PROCEDURE ACT, WITHOUT EXPRESS
APPROVAL BY THE COMMISSIONER. THE  COMMISSIONER,  IN  HIS  OR  HER  SOLE
DISCRETION,  MAY  REJECT  ANY PARTICULAR RULE OR CATEGORY OF RULES HE OR
SHE DETERMINES IS DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK  STATE,  OR
IS  NOT  VITAL TO PROTECT THE HEALTH AND SAFETY OF THE PUBLIC. THE DIVI-
SIONS SHALL PROMPTLY NOTIFY THE AGENCY OF ANY SUCH REJECTION.
  S 1014-A. REGULATIONS  AFFECTING  SMALL  BUSINESS.  1.  PRIOR  TO  THE
ADOPTION  OF  ANY PROPOSED REGULATION THAT MAY HAVE AN ADVERSE IMPACT ON
SMALL BUSINESSES, EACH AGENCY SHALL PREPARE AN ECONOMIC IMPACT STATEMENT
THAT INCLUDES THE FOLLOWING:
  (A) AN IDENTIFICATION AND ESTIMATE OF THE NUMBER OF  THE  SMALL  BUSI-
NESSES SUBJECT TO THE PROPOSED REGULATION;
  (B)  THE  PROJECTED REPORTING, RECORD KEEPING AND OTHER ADMINISTRATIVE
COSTS REQUIRED FOR COMPLIANCE WITH THE  PROPOSED  REGULATION,  INCLUDING
THE  TYPE OF PROFESSIONAL SKILLS NECESSARY FOR PREPARATION OF THE REPORT
OR RECORD;
  (C) A STATEMENT OF THE PROBABLE EFFECT ON IMPACTED  SMALL  BUSINESSES;
AND
  (D)  A  DESCRIPTION  OF  ANY LESS INTRUSIVE OR LESS COSTLY ALTERNATIVE
METHODS OF ACHIEVING THE PURPOSE OF THE PROPOSED REGULATION.
  2. PRIOR TO THE ADOPTION OF ANY PROPOSED REGULATION, EACH AGENCY SHALL
PREPARE A REGULATORY FLEXIBILITY ANALYSIS WITH THE  GOAL  OF  MINIMIZING
ADVERSE IMPACT ON SMALL BUSINESSES. THE AGENCY MUST CONSIDER EACH OF THE
FOLLOWING  METHODS  OF REDUCING THE IMPACT OF THE PROPOSED REGULATION ON
SMALL BUSINESSES:
  (A) THE  ESTABLISHMENT  OF  LESS  STRINGENT  COMPLIANCE  OR  REPORTING
REQUIREMENTS FOR SMALL BUSINESSES;
  (B)  THE  ESTABLISHMENT  OF  LESS STRINGENT SCHEDULES OR DEADLINES FOR
COMPLIANCE OR REPORTING REQUIREMENTS FOR SMALL BUSINESSES;
  (C) THE CONSOLIDATION OR SIMPLIFICATION  OF  COMPLIANCE  OR  REPORTING
REQUIREMENTS FOR SMALL BUSINESSES;
  (D) THE ESTABLISHMENT OF PERFORMANCE STANDARDS FOR SMALL BUSINESSES TO
REPLACE  DESIGN  OR OPERATIONAL STANDARDS REQUIRED IN THE PROPOSED REGU-
LATION; AND

A. 5898--A                         13

  (E) THE EXEMPTION OF SMALL BUSINESSES FROM ALL  OR  ANY  PART  OF  THE
REQUIREMENTS CONTAINED IN THE PROPOSED REGULATION.
  3.  (A)  WITHIN FOUR YEARS OF THE EFFECTIVE DATE OF THIS SECTION, EACH
AGENCY SHALL REVIEW ALL AGENCY RULES EXISTING AT THE TIME  OF  ENACTMENT
TO  DETERMINE  WHETHER SUCH RULES SHOULD BE CONTINUED WITHOUT CHANGE, OR
SHOULD BE AMENDED OR RESCINDED, CONSISTENT WITH THE STATED OBJECTIVES OF
THOSE STATUTES, TO MINIMIZE ECONOMIC IMPACT OF THE RULES ON SMALL  BUSI-
NESSES.
  (B)  RULES  ADOPTED AFTER THE EFFECTIVE DATE OF THIS SECTION SHOULD BE
REVIEWED EVERY FIVE YEARS AFTER THE PUBLICATION OF  SUCH  RULES  AS  THE
FINAL  RULE  TO ENSURE THAT THEY MINIMIZE ECONOMIC IMPACT ON SMALL BUSI-
NESSES IN A MANNER CONSISTENT WITH THE STATED OBJECTIVES  OF  APPLICABLE
STATUTES.
  (C)  IN  REVIEWING  RULES  TO  MINIMIZE ECONOMIC IMPACT OF THE RULE ON
SMALL BUSINESSES, THE AGENCY SHALL CONSIDER THE FOLLOWING FACTORS:
  (I) THE CONTINUED NEED FOR THE RULE;
  (II) THE NATURE OF COMPLAINTS OR COMMENTS RECEIVED CONCERNING THE RULE
FROM THE PUBLIC;
  (III) THE COMPLEXITY OF THE RULE;
  (IV) THE EXTENT TO WHICH THE RULE OVERLAPS,  DUPLICATES  OR  CONFLICTS
WITH OTHER FEDERAL, STATE AND LOCAL GOVERNMENTAL RULES; AND
  (V) THE LENGTH OF TIME SINCE THE RULE HAS BEEN EVALUATED OR THE DEGREE
TO  WHICH TECHNOLOGY, ECONOMIC CONDITIONS, OR OTHER FACTORS HAVE CHANGED
IN THE AREA AFFECTED BY THE RULE.
  S 1015. DIVISION ANNUAL RECOMMENDATIONS. ON OR BEFORE  JANUARY  FIRST,
TWO  THOUSAND SIXTEEN AND ANNUALLY THEREAFTER, THE DIVISION SHALL TRANS-
MIT TO THE GOVERNOR AND THE LEGISLATURE A REPORT CONTAINING  ITS  RECOM-
MENDATIONS, WHICH SHALL INCLUDE:
  1.  SPECIFIC  RECOMMENDATIONS FOR REPEALING OR AMENDING NEW YORK STATE
CODES, RULES, REGULATIONS, REGULATORY PROCESSES, AND PERMIT REQUIREMENTS
AS IT DEEMS NECESSARY TO  LOWER  COSTS  FOR  LOCAL  GOVERNMENTS,  SCHOOL
DISTRICTS AND BUSINESSES OR PROMOTE ECONOMIC GROWTH; AND
  2.  RECOMMENDED DATES BY WHICH SUCH ACTIONS SHOULD OCCUR.
  S  1016.  IMPLEMENTATION  OF  RECOMMENDATIONS.  1. NOTWITHSTANDING ANY
CONTRARY PROVISION OF LAW, RULE OR REGULATION RELATED TO THE  REPEAL  OR
AMENDMENT  OF  ANY  NEW YORK STATE CODES, RULES, REGULATIONS, REGULATORY
PROCESSES, AND PERMIT REQUIREMENTS IDENTIFIED IN THE  DIVISION'S  RECOM-
MENDATIONS,  THE  SECRETARY OF STATE SHALL TAKE ALL ACTIONS NECESSARY TO
IMPLEMENT, IN A REASONABLE, COST-EFFICIENT MANNER,  THE  RECOMMENDATIONS
OF  THE  DIVISION PURSUANT TO SECTION ONE THOUSAND FIFTEEN OF THIS ARTI-
CLE, INCLUDING, BUT NOT LIMITED TO  COORDINATION  WITH  STATE  AGENCIES,
AUTHORITIES, AND OTHER PARTIES AS THE COMMISSIONER DEEMS APPROPRIATE.
  2.  THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION SHALL NOT APPLY:
(A) UNLESS THE GOVERNOR HAS  TRANSMITTED  THE  DIVISION'S  REPORT  UNDER
SECTION  ONE  THOUSAND  FIFTEEN  OF THIS ARTICLE WITH HIS OR HER WRITTEN
APPROVAL OF THE RECOMMENDATIONS OF THE DIVISION PURSUANT TO SECTION  ONE
THOUSAND FIFTEEN OF THIS ARTICLE TO THE SECRETARY OF STATE AND TRANSMIT-
TED  A  MESSAGE  TO  THE  LEGISLATURE  STATING  HIS  OR  HER APPROVAL OR
REJECTION OF THE REPORT WITHIN FIVE DAYS OF RECEIVING SUCH  REPORT;  AND
(B)  IF  A MAJORITY OF THE MEMBERS OF EACH HOUSE OF THE LEGISLATURE VOTE
TO ADOPT A CONCURRENT RESOLUTION REJECTING THE  RECOMMENDATIONS  OF  THE
DIVISION  PURSUANT  TO  SECTION  ONE THOUSAND FIFTEEN OF THIS ARTICLE IN
THEIR ENTIRETY WITHIN SIXTY DAYS, AFTER RECEIVING  A  MESSAGE  FROM  THE
GOVERNOR  UNDER  THIS  SUBDIVISION.  IN  NO EVENT SHALL THE SECRETARY OF
STATE BEGIN TO IMPLEMENT THE RECOMMENDATIONS OF THE DIVISION PURSUANT TO

A. 5898--A                         14

SECTION ONE THOUSAND FIFTEEN OF THIS ARTICLE PRIOR TO THE EXPIRATION  OF
THE LEGISLATURE'S SIXTY DAY REVIEW PERIOD.
  S  1017.  COST OF REGULATION STUDY. THE COMMISSIONER IS HEREBY AUTHOR-
IZED AND DIRECTED TO PREPARE OR HAVE PREPARED A COMPREHENSIVE  STUDY  TO
MEASURE  AND REPORT THE COST OF REGULATIONS TO BUSINESSES THROUGHOUT THE
STATE OF NEW YORK.
  2. SUCH STUDY SHALL BE COMPLETED WITHIN EIGHTEEN MONTHS OF THE  EFFEC-
TIVE DATE OF THIS ACT.
  S  2.  Paragraph  (a)  of  subdivision 6-a of section 202 of the state
administrative procedure act, as amended by chapter 171 of the  laws  of
1994, is amended to read as follows:
  (a) An agency shall transmit a copy of any rule making notice prepared
pursuant  to  this article AND APPROVED BY THE COMMISSIONER OF THE DIVI-
SION OF REGULATORY  REVIEW  AND  ECONOMIC  GROWTH  PURSUANT  TO  ARTICLE
FIFTY-ONE  OF THE EXECUTIVE LAW to the governor, the temporary president
of the senate, the speaker of the assembly, THE MINORITY LEADER  OF  THE
SENATE,  THE  MINORITY  LEADER OF THE ASSEMBLY, the administrative regu-
lations review commission and the office of  regulatory  and  management
assistance  at  the  time  such  notice is submitted to the secretary of
state for publication in the  state  register.  Such  transmittal  shall
include  the complete rule text, regulatory impact statement, regulatory
flexibility analysis, rural  area  flexibility  analysis,  or  revisions
thereof,  and  any other information submitted to the secretary of state
pursuant to this article.
  S 3. Section 86 of the legislative law, as added by chapter 689 of the
laws of 1978, is amended to read as follows:
  S 86. Administrative regulations review commission.  There  is  hereby
created  an  administrative  regulations review commission to consist of
two members of the senate to be appointed by the temporary president  of
the  senate,  two members of the assembly to be appointed by the speaker
of the assembly, [one member] TWO MEMBERS of the senate to be  appointed
by the minority leader of the senate and [one member] TWO MEMBERS of the
assembly  to  be  appointed  by the minority leader of the assembly. The
temporary president of the senate and the speaker of the assembly  shall
each  appoint  a  co-chairman from among the commission membership.  Any
vacancies shall be filled in the same manner as  the  original  appoint-
ment.    Such  appointees  shall serve at the pleasure of the respective
legislative member making such appointment.
  S 4. Section 87 of the legislative law, as added by chapter 689 of the
laws of 1978, is amended to read as follows:
  S 87. Powers and duties. 1. The commission shall  exercise  continuous
oversight of the process of rule making and examine rules, as defined in
subdivision  two  of section one hundred two of the state administrative
procedure act, adopted or proposed by each agency with  respect  to  (i)
statutory  authority,  (ii)  compliance  with  legislative intent, (iii)
impact on the economy and on the government operations of the state  and
its  local  governments,  and  (iv)  impact on affected parties; and, in
furtherance of such duties, may examine other issues it deems  appropri-
ate. For purpose of this article, the term agency shall mean any depart-
ment, board, bureau, commission, division, office, council, committee or
officer of the state or a public benefit corporation or public authority
at least one of whose members is appointed by the governor.
  2. THE COMMISSION SHALL REVIEW ANY LEGISLATION REQUIRING A COMMISSION-
ER OR AGENCY AS DEFINED BY SUBDIVISION ONE OF SECTION ONE HUNDRED TWO OF
THE  STATE  ADMINISTRATIVE PROCEDURE ACT, TO PROMULGATE ANY CODES, RULES
AND REGULATIONS NECESSARY FOR THE IMPLEMENTATION  AND  MAKE  RECOMMENDA-

A. 5898--A                         15

TIONS  TO  THE  MEMBERS  OF THE LEGISLATURE. SUCH RECOMMENDATIONS SHOULD
INCLUDE THE COMMISSION'S APPROVAL IF THE LEGISLATION IS DEEMED NECESSARY
TO PROTECT THE HEALTH AND SAFETY  OF  THE  PUBLIC  OR  THE  COMMISSION'S
DISAPPROVAL IF SUCH LEGISLATION IS DEEMED DETRIMENTAL TO ECONOMIC GROWTH
IN  NEW  YORK STATE, OR IS NOT VITAL TO PROTECT THE HEALTH AND SAFETY OF
THE PUBLIC.
  3. THE COMMISSION SHALL REVIEW NEW YORK STATE LAWS THAT RESULT IN  THE
PROMULGATION  OF CODES, RULES OR REGULATIONS BY A COMMISSIONER OR AGENCY
AS DEFINED BY SUBDIVISION ONE OF SECTION ONE HUNDRED TWO  OF  THE  STATE
ADMINISTRATIVE PROCEDURE ACT, OR ANY LAWS THE COMMISSION DEEMS A REGULA-
TORY  BURDEN  ON  LOCAL  GOVERNMENTS, SCHOOL DISTRICTS OR BUSINESSES AND
MAKE RECOMMENDATIONS TO THE MEMBERS OF THE LEGISLATURE. SUCH RECOMMENDA-
TIONS SHOULD INCLUDE THE COMMISSION'S REQUEST FOR THE REPEAL OF LAWS  IT
DEEMS  INCREASE  COSTS  FOR LOCAL GOVERNMENTS, SCHOOL DISTRICTS OR BUSI-
NESSES OR ARE DETRIMENTAL TO ECONOMIC GROWTH IN NEW YORK STATE,  OR  ARE
NOT VITAL TO PROTECT THE HEALTH AND SAFETY OF THE PUBLIC.
  4.  The  commission  may employ such staff and retain such consultants
and expert services as may be necessary and fix their  compensation  and
expenses  within  the  amounts  appropriated therefor. Employment by the
commission shall be deemed to be employment by the legislature  for  all
purposes.
  [3] 5.  The commission shall have the power, subject to the provisions
of  section  seventy-three  of  the  civil rights law, to hold hearings,
subpoena witnesses, administer oaths,  take  testimony  and  compel  the
production of books, papers, documents and other evidence in furtherance
of  its  duties;  provided, however, that no subpoena shall issue except
upon the affirmative vote of a majority of the whole membership  of  the
commission.  The commission may request and shall receive from all agen-
cies such assistance and data as will enable it properly  to  consummate
any such examination, and review.
  S  5.  Section 88 of the legislative law, as amended by chapter 850 of
the laws of 1990, is amended to read as follows:
  S 88. Reports. The commission shall, [from  time  to  time]  ANNUALLY,
report  its  findings and recommendations to the governor, the temporary
president of the senate and the speaker of the  assembly,  THE  MINORITY
LEADER  OF  THE  SENATE, THE MINORITY LEADER OF THE ASSEMBLY, and to the
members of the legislature, and may at any time make recommendations  to
THE  DIVISION  OF  REGULATORY  REVIEW  AND ECONOMIC GROWTH AND an agency
based upon its review of that agency's rule making process,  or  any  of
the agency's proposed, revised or adopted rules.
  S  6.  The  legislative law is amended by adding a new section 88-a to
read as follows:
  S 88-A. REGULATORY WEDNESDAYS. 1. EVERY WEDNESDAY, WHICH IS  A  SCHED-
ULED  SESSION  DAY  FOR  THE  LEGISLATURE IN EVERY WEEK BEGINNING WITH A
SCHEDULED SESSION DAY ON MONDAY, SHALL BE DEEMED  REGULATORY  WEDNESDAY.
THE  COMMISSION  SHALL BE REQUIRED TO MEET ON EVERY REGULATORY WEDNESDAY
TO PERFORM ITS POWERS AND DUTIES PURSUANT  TO  SECTION  EIGHTY-SEVEN  OF
THIS ARTICLE.
  2.  ON  EVERY REGULATORY WEDNESDAY, THE SENATE AND ASSEMBLY SHALL TAKE
UP ANY BILLS ON ANY ORDER OF THIRD READING THAT ARE BEFORE EACH  RESPEC-
TIVE  HOUSE  FOR FINAL DISPOSITION, THAT HAVE GAINED THE APPROVAL OF THE
COMMISSION PRIOR TO TAKING UP ANY OTHER BILL ON ANY ORDER OF THIRD READ-
ING, UNLESS SUCH ACTION IS WAIVED, WITHOUT DEBATE, UPON A MAJORITY  VOTE
OF THE MEMBERS PRESENT.
  S 7. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of

A. 5898--A                         16

competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 8. This act shall take effect on the one hundred twentieth day after
it shall have become a law and shall apply to rules and revised rules to
be submitted for publication in the state register  on  and  after  such
date.

                                 PART H

  Section  1. The commissioner of the department of economic development
shall develop and implement a "regulatory amnesty" period to  allow  for
small  businesses  to  remedy rules or regulations violations before any
violations or sanctions are levied. Such regulatory amnesty period  must
be at least six months. If a small business remedies the violation with-
in  the time period established by the commissioner, such business shall
not be subjected to fines or penalties.
  S 2. This act shall take effect immediately.

                                 PART I

  Section 1. The legislative law is amended by adding a new section 51-a
to read as follows:
  S 51-A. MORATORIUM ON UNFUNDED MANDATES. 1. DEFINITIONS.  AS  USED  IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "LOCAL  GOVERNMENT"  MEANS  A COUNTY, CITY, TOWN, VILLAGE, SCHOOL
DISTRICT, OR SPECIAL DISTRICT.
  (B) "SMALL BUSINESS" MEANS ANY BUSINESS WITH  LESS  THAN  ONE  HUNDRED
EMPLOYEES.
  (C)  "NET  ADDITIONAL COST" MEANS THE COST OR COSTS INCURRED OR ANTIC-
IPATED TO BE INCURRED WITHIN A ONE YEAR PERIOD BY A LOCAL GOVERNMENT  IN
PERFORMING  OR  ADMINISTERING  ANY  PROGRAM,  PROJECT, OR ACTIVITY AFTER
SUBTRACTING THEREFROM ANY REVENUES RECEIVED OR RECEIVABLE BY SUCH  LOCAL
GOVERNMENT  IN RELATION TO SUCH PROGRAM, PROJECT, OR ACTIVITY, INCLUDING
BUT NOT LIMITED TO: (I) FEES CHARGED TO THE RECIPIENTS OF SUCH  PROGRAM,
PROJECT,  OR  ACTIVITY;  (II)  STATE  OR FEDERAL FUNDS RECEIVED FOR SUCH
PROGRAM, PROJECT, OR ACTIVITY; AND (III) AN OFFSETTING SAVINGS RESULTING
FROM THE DIMINUTION OR ELIMINATION OF ANY  OTHER  PROGRAM,  PROJECT,  OR
ACTIVITY  THAT  STATE  LAW  REQUIRES SUCH LOCAL GOVERNMENT TO PROVIDE OR
UNDERTAKE.
  (D) "UNFUNDED MANDATE" MEANS: (I) ANY STATE LAW THAT REQUIRES A  LOCAL
GOVERNMENT  TO PROVIDE OR UNDERTAKE ANY NEW PROGRAM, PROJECT OR ACTIVITY
THAT RESULTS IN AN ANNUAL NET ADDITIONAL COST TO ANY LOCAL GOVERNMENT IN
EXCESS OF TEN THOUSAND DOLLARS OR AN  AGGREGATE  ANNUAL  NET  ADDITIONAL
COST  TO ALL LOCAL GOVERNMENTS WITHIN THE STATE IN EXCESS OF ONE MILLION
DOLLARS; OR (II) ANY STATE LAW  THAT  REQUIRES  A  LOCAL  GOVERNMENT  TO
PROVIDE  A  HIGHER  LEVEL OF SERVICE OR FUNDING FOR AN EXISTING PROGRAM,
PROJECT OR ACTIVITY THAT RESULTS IN AN ANNUAL NET ADDITIONAL COST TO ANY
LOCAL GOVERNMENT IN EXCESS OF TEN THOUSAND DOLLARS OR AN AGGREGATE ANNU-
AL NET ADDITIONAL COST TO ALL LOCAL  GOVERNMENTS  WITHIN  THE  STATE  IN
EXCESS  OF  ONE  MILLION DOLLARS; OR (III) ANY STATE LAW THAT REQUIRES A
LOCAL GOVERNMENT TO GRANT ANY NEW PROPERTY TAX EXEMPTION OR THAT  BROAD-

A. 5898--A                         17

ENS THE ELIGIBILITY OR INCREASES THE DOLLAR AMOUNT OF ANY EXISTING PROP-
ERTY  TAX  EXEMPTION,  ON  PROPERTY  THAT OTHERWISE WOULD HAVE GENERATED
REVENUE UNDER THE CURRENT PROPERTY TAX RATE OF SUCH LOCAL GOVERNMENT  IN
EXCESS  OF  TEN THOUSAND DOLLARS IN ANY LOCAL GOVERNMENT OR IN EXCESS OF
ONE MILLION DOLLARS STATEWIDE; OR  (IV)  ANY  STATE  LAW  WITH  A  LEGAL
REQUIREMENT THAT WOULD OTHERWISE LIKELY HAVE THE EFFECT OF RAISING PROP-
ERTY  TAXES IN EXCESS OF TEN THOUSAND DOLLARS IN ANY LOCAL GOVERNMENT OR
IN EXCESS OF ONE MILLION DOLLARS STATEWIDE; OR (V) ANY  STATE  LAW  THAT
REQUIRES  A  SMALL  BUSINESS  TO  UNDERTAKE  ANY NEW PROGRAM, PROJECT OR
ACTIVITY THAT RESULTS IN AN ANNUAL NET ADDITIONAL COST TO THE BUSINESS.
  2.  MORATORIUM  ON  UNFUNDED  MANDATES.  NOTWITHSTANDING   ANY   OTHER
PROVISION OF LAW, NO UNFUNDED MANDATES SHALL BE ENACTED.
  3.  EXEMPTIONS.  (A)  A  STATE LAW SHALL NOT BE CONSIDERED AN UNFUNDED
MANDATE WHERE SUCH LAW: (I) IS REQUIRED BY A COURT ORDER OR JUDGMENT; OR
(II) IS PROVIDED AT THE OPTION OF THE LOCAL GOVERNMENT UNDER A LAW  THAT
IS  PERMISSIVE  RATHER THAN MANDATORY; OR (III) RESULTS FROM THE PASSAGE
OF A HOME RULE MESSAGE WHEREBY A LOCAL GOVERNMENT REQUESTS AUTHORITY  TO
IMPLEMENT THE PROGRAM OR SERVICE SPECIFIED IN THE STATUTE, AND THE STAT-
UTE  IMPOSES  COSTS  ONLY  UPON THAT LOCAL GOVERNMENT WHICH REQUESTS THE
AUTHORITY TO IMPOSE THE PROGRAM OR SERVICE; OR (IV) IS REQUIRED BY STAT-
UTE OR EXECUTIVE ORDER THAT IMPLEMENTS A FEDERAL LAW OR  REGULATION  AND
RESULTS FROM COSTS MANDATED BY THE FEDERAL GOVERNMENT TO BE BORNE AT THE
LOCAL  LEVEL,  UNLESS  THE  STATUTE  OR EXECUTIVE ORDER RESULTS IN COSTS
WHICH EXCEED THE COSTS MANDATED BY THE FEDERAL  GOVERNMENT;  OR  (V)  IS
IMPOSED  ON  BOTH  GOVERNMENT AND NON-GOVERNMENT ENTITIES IN THE SAME OR
SUBSTANTIALLY SIMILAR CIRCUMSTANCES; OR (VI) REPEALS OR REVISES A  STATE
LAW  TO  EASE AN EXISTING REQUIREMENT THAT A LOCAL GOVERNMENT PROVIDE OR
UNDERTAKE A PROGRAM, PROJECT, OR ACTIVITY, OR REAPPORTIONS THE COSTS  OF
ACTIVITIES  BETWEEN  LOCAL GOVERNMENTS; OR (VII) IS NECESSARY TO PROTECT
AGAINST AN IMMEDIATE THREAT TO PUBLIC HEALTH OR SAFETY.
  (B) THE EFFECTIVE DATE OF ANY ACT ESTABLISHING A MANDATE SHALL PROVIDE
A REASONABLE TIME FOR THE STATE AND ANY LOCAL GOVERNMENT TO PLAN  IMPLE-
MENTATION  THEREOF  AND  SHALL  BE  CONSISTENT  WITH THE AVAILABILITY OF
REQUIRED FUNDS.
  S 2. Section 51 of the legislative law, as added by chapter 985 of the
laws of 1983, is amended to read as follows:
  S 51. Fiscal [impact] notes on bills affecting political subdivisions.
1. For the purpose of this section,  the  term  "political  subdivision"
means  any  county,  city,  town,  village,  special  district or school
district.
  2. [The legislature shall by concurrent resolution of the  senate  and
assembly prescribe rules requiring fiscal notes to accompany, on a sepa-
rate form, bills and amendments to bills, except as otherwise prescribed
by  such rules, which] A BILL THAT would substantially affect the reven-
ues or expenses, or both, of any political subdivision SHALL  CONTAIN  A
FISCAL  NOTE STATING THE ESTIMATED ANNUAL COST TO THE POLITICAL SUBDIVI-
SION AFFECTED AND THE SOURCE OF SUCH ESTIMATE.
  3. Fiscal notes shall not, however, be required for bills: (a) subject
to the provisions of section fifty of this chapter, or  (b)  accompanied
by  special  home  rule requests submitted by political subdivisions, or
(c) which provide discretionary authority to political subdivisions,  or
(d) submitted pursuant to section twenty-four of the state finance law.
  4. If the estimate or estimates contained in a fiscal note are inaccu-
rate,  such  inaccuracies  shall  not  affect, impair or invalidate such
bill.

A. 5898--A                         18

  S 3. This act shall take effect immediately, provided,  however,  that
section  one  of  this  act  shall only apply to laws enacted after such
effective date.
  S 3. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgement shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 4. This act shall take effect immediately  provided,  however,  that
the  applicable effective date of Parts A through I of this act shall be
as specifically set forth in the last section of such Parts.