S T A T E O F N E W Y O R K
________________________________________________________________________
10213
I N A S S E M B L Y
February 12, 2026
___________
Introduced by M. of A. STECK -- read once and referred to the Committee
on Social Services
AN ACT to amend the executive law, in relation to regulatory penalties,
fines, and/or revocation for small business
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 amended by section 1
of subpart B of part XX of chapter 55 of the laws of 2020 and subdivi-
sion 4 as amended by chapter 39 of the laws of 2022, is amended to read
as follows:
§ 170-c. Regulatory penalties, FINES, AND/OR REVOCATION for small
businesses. 1. Unless explicitly 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] ARE MADE IN GOOD FAITH AND DO NOT INVOLVE MENDACITY, 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 imposi-
tion of penalties, FINES, AND/OR REVOCATIONS on the party or parties
subject to enforcement of such de minimus violation. However, no waiver
of penalties, FINES, AND/OR REVOCATIONS or cure period or other opportu-
nity for ameliorative action may be given if the agency determines that
the violation may result in a natural resource damage claim or serious
actual harm, or may present an 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 reme-
dy, review, or resolution related to harassment or discrimination
claims, was or is a willful violation, 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, relates to a material or substantive portion of the business,
or is in contravention of the public interest and/or policy reflected by
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14670-03-6
A. 10213 2
the agency's mission. Upon such first violation, a state agency shall
(a) provide the small business with a copy of the applicable small busi-
ness regulation guides pursuant to section one hundred two-a of the
state administrative procedure act and any other helpful guidance or
information detailing the agency's rules and regulations, to the extent
such materials exist, or (b) to the extent practicable, provide such
small business assistance with compliance with the agency's rules and
regulations. The agency shall have the discretion to determine the
appropriate period of time to allow such small business to cure or take
such other ameliorative action to address such violation, which shall be
reasonable but shall not be less than fifteen business days unless a
longer period is allowed pursuant to law or regulation.
2. As used in this section "state agency" shall mean an agency as
defined in subdivision one of section one hundred two of the state
administrative procedure act; provided that "state agency" shall not
include the department of taxation and finance, the workers' compen-
sation board nor the department of financial services.
3. Nothing herein shall prevent or preclude any other waivers of
penalties, FINES, AND/OR REVOCATIONS that may be applicable by this or
any other agency.
4. Every state agency shall provide to the division for small busi-
ness, created pursuant to section one hundred thirty-two of the economic
development law, the following information covering the previous calen-
dar year, annually by July first following the effective date of this
subdivision, and every July first thereafter: (a) how many cure periods
or other opportunities for ameliorative action were afforded pursuant to
subdivision one of this section and how many small businesses made use
of such options, (b) how many cure periods and other opportunities for
ameliorative action were successfully completed and resulted in the
avoidance of a penalty, FINES, AND/OR REVOCATIONS, (c) what, if any,
guidance, information, and assistance with compliance was provided to
small businesses issued pursuant to subdivision one of this section, and
(d) the range of time granted by the state agency to correct first time
violations, FINES, AND/OR REVOCATIONS and the type of violations that
were ameliorated. The division for small business shall by October first
following the effective date of this subdivision, and every October
first thereafter, prepare a report compiling this information, by agen-
cy, and shall post this report on its website and shall provide a copy
of such report to the governor, the speaker of the assembly and the
temporary president of the senate.
§ 2. This act shall take effect immediately; provided, however, that
the amendments to section 170-c of the executive law made by section one
of this act shall not affect the repeal of such section and shall expire
and be deemed repealed therewith.