The New York State Senate

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

                                  8951

                          I N  A S S E M B L Y

                             January 6, 2020
                               ___________

Introduced by M. of A. McDONALD -- read once and referred to the Commit-
  tee on Small Business

AN  ACT  to amend the executive law, in relation to regulatory fines for
  small businesses; and to amend a chapter of the laws of 2019, amending
  the executive law relating to regulatory fines for  small  businesses,
  in relation to the effectiveness thereof

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

  Section 1. Section 170-c of the executive law, as added by  a  chapter
of  the  laws of 2019, amending the executive law relating to regulatory
fines for small businesses, as proposed in legislative bills numbers  S.
5815-C and A. 7540-B, is amended to read as follows:
  § 170-c. Regulatory penalties for small businesses.  1. Unless explic-
itly  exempted  or excluded by any other law, rule or regulation, upon a
first time violation of a state agency's rules or regulations related to
paperwork submitted to a state agency or actions or omissions  that  are
DETERMINED  BY  SUCH STATE AGENCY TO BE de minimus, a small business, AS
DEFINED IN SUBDIVISION EIGHT OF SECTION ONE HUNDRED  TWO  OF  THE  STATE
ADMINISTRATIVE  PROCEDURE  ACT, shall be afforded a cure period or other
opportunity for ameliorative action if the violation can  be  corrected,
the successful completion of which will prevent the imposition of penal-
ties  on  the party or parties subject to enforcement OF SUCH DE MINIMUS
VIOLATION.  However, no waiver of penalties  or  cure  period  or  other
opportunity  for  ameliorative  action may be given if the agency deter-
mines that the violation [resulted] MAY RESULT  in  a  natural  resource
damage  claim or serious actual harm, or may [have presented] PRESENT an
[imminent and substantial] endangerment to public safety,  human  health
or the environment, is a violation of human or civil rights law, results
in  loss  of  employee  wages  or  benefits, interferes with any remedy,
review, or resolution related to harassment  or  discrimination  claims,
was  OR  IS a willful violation, [involved] INVOLVES tax fraud, violates
requirements related to federal funding to the state, relates  to  state
funding  or  procurement, is similar to prior violations, is a penal law
violation, [or] relates to a material  or  substantive  portion  of  the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD11565-13-0

A. 8951                             2

business,  OR  IS  IN CONTRAVENTION OF THE PUBLIC INTEREST AND/OR POLICY
REFLECTED BY THE AGENCY'S MISSION. Upon such first  violation,  a  state
agency  shall  (a)  provide  the small business with a copy of [any] THE
applicable  small  business  regulation  guides  pursuant to section one
hundred two-a of the state administrative procedure act  and  any  other
helpful  [compliance]  GUIDANCE  OR  information  detailing the agency's
rules and regulations, TO THE EXTENT SUCH MATERIALS EXIST, or (b) TO THE
EXTENT PRACTICABLE, provide [an opportunity for  an  in-person  meeting,
teleconference  or  videoconference  with  the  small  business  to help
assist] such small business ASSISTANCE with compliance with the agency's
rules and regulations.  The agency shall have the discretion  to  deter-
mine  the  appropriate period of time to allow [for] SUCH SMALL BUSINESS
TO CURE OR TAKE such OTHER ameliorative action  [to  occur]  TO  ADDRESS
SUCH  VIOLATION,  which  shall  be reasonable but shall not be less than
[ninety] FIFTEEN BUSINESS days UNLESS A LONGER PERIOD IS ALLOWED  PURSU-
ANT TO LAW OR REGULATION.
  2.  As  used in this section[: (a) "Small business" shall mean a busi-
ness which is resident in this state, independently owned and  operated,
not dominant in its field and employs one hundred or less persons.
  (b)]  "[State] STATE agency" shall mean an agency as defined in subdi-
vision one of section one hundred two of the state administrative proce-
dure act; provided that "state agency" shall not include the  department
of taxation and finance [but shall also mean], the workers' compensation
board NOR THE DEPARTMENT OF FINANCIAL SERVICES.
  3.  Nothing  herein  shall  prevent  or  preclude any other waivers of
penalties that may be applicable by this or any other agency.
  § 2. Section 2 of a chapter of the laws of 2019, amending  the  execu-
tive  law relating to regulatory fines for small businesses, as proposed
in legislative bills numbers S. 5815-C and A. 7540-B, is amended to read
as follows:
  § 2. This act shall take effect immediately AND SHALL  EXPIRE  AND  BE
DEEMED REPEALED TWO YEARS AFTER SUCH DATE.
  §  3.  This act shall take effect immediately, provided, however, that
section one of this act takes effect on the same date and  in  the  same
manner  as  a  chapter  of  the laws of 2019, amending the executive law
relating to regulatory fines for small businesses, as proposed in legis-
lative bills numbers S. 5815-C and A. 7540-B, takes effect.