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This entry was published on 2022-12-23
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Regulatory penalties for small businesses
Executive (EXC) CHAPTER 18, ARTICLE 7
* § 170-c. Regulatory penalties 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, 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 penalties 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 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 remedy, 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 the agency's mission. Upon such first violation, a
state agency shall (a) provide the small business with a copy of the
applicable small business 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

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'
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.

4. Every state agency shall provide to the division for small
business, created pursuant to section one hundred thirty-two of the
economic development law, the following information covering the
previous calendar 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, (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 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 agency, 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.

* NB Repealed December 20, 2024