S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7193
 
                             I N  S E N A T E
 
                             January 10, 2020
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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

 S. 7193                             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.