Authorizes the installment payment of fees and civil penalties owed to the state by local governments and small businesses

2 Co-sponsors

• William J. Larkin Jr.
• Michael H. Ranzenhofer

Title of bill

An act to amend the state administrative procedure act, in relation to providing for installment payment programs for small businesses

Purpose or general idea of bill

This bill would assist small businesses by enabling them to make installment payments for fees or civil penalties owed to state agencies.

Summary of provisions

Section one of the bill adds a new §208 to the State Administrative Procedure Act (SAPA) requiring each state agency to establish an installment payment program for payment of civil penalties by small businesses and inform eligible businesses of the existence of the program when they are notified that a penalty has been assessed against them.

Each state agency is required to establish rules and regulations governing the installment payment program.

The provisions of the bill do not apply to civil penalties assessed by the Division of Taxation and Finance, or to traffic infractions or parking violations.

Summary of changes in response to veto

The civil penalties threshold is eliminated. The agencies are given complete discretion as to how to implement an installment payment program which the Executive and many agencies found to be onerous in the 2006 Veto.

Effects of present law which this bill would alter

While some agencies may allow installment payments in specific cases, there is no current across-the-board statutory provision allowing the payment of fees or civil penalties on an installment basis.

Justification

Fees are required to ensure that the beneficiaries, and not the taxpayers, bear the costs of obtaining agency permits, and civil penalties are necessary to enforce regulatory standards. However, in some cases these monetary amounts can impose a disproportionate burden on small businesses. Making a one-time payment of $2000, $5000 or more may be an insignificant sum to a Fortune 500 company, but such a requirement often presents a true hardship to a cash-starved small business. Allowing for installment payments is one way to alleviate this burden.

Prior legislative history

1997: Reported to Assembly Codes Committee 1998: Passed Assembly/3rd Reading Calendar in Senate 1999-00: Passed Assembly/Senate Commerce Committee 2001-02: Passed Assembly/Senate Commerce Committee 2003: Passed Assembly/Senate Rules Committee 2004: Passed Assembly/Passed Senate/Veto No. 11 2005: Passed Assembly/Passed Senate/Veto No. 49 2006: Passed Assembly/Passed Senate/Veto No. 343 2007: Passed Assembly/Passed Senate/Veto No. 116 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

There are expected to be no adverse state or local fiscal implications. By increasing the rate of collections and allowing interest to be charged at the underpayment rate set by the Department of Taxation & Finance, the bill is expected to be revenue-neutral to the State.

Effective date

180 days after it shall have become a law.