Authorizes streamlined adjudicatory proceedings for small businesses appearing as respondents before certain state agencies

BILL NUMBER:S7324

Title of bill

An act to amend the state administrative procedure act and the economic development law, in relation to streamlined adjudicatory proceedings for small businesses

Purpose or general idea of bill

This bill would cut the cost and complexity of small business participation in adjudicatory proceedings by allowing agencies to offer streamlined optional proceedings (e.g., mail, e-mail, telephone conferencing, Skype) to small businesses.

Summary of specific provisions

Section 1 adds a new § 308 to the State Administrative Procedure Act (SAPA) to allow agencies to adopt regulations providing for streamlined proceedings involving small businesses for specific programs and categories of violations/other issues that can be fairly resolved without a physical hearing. In adopting such regulations, an agency shall consider the types of programs and issues for which such streamlined proceedings may reasonably be conducted, and shall:

> ensure that a streamlined proceeding is at the option of the respondent small business with the consent of the agency and other necessary parties, and no rights will be diminished through exercise of this option;

> establish available formats and procedures for requesting, scheduling, conducting and recording such proceedings; and

> provide that, if it becomes impractical or inappropriate to continue a stream-lined proceeding, the matter may be rescheduled as an ordinary adjudicatory proceeding without prejudice to any party.

Section 2 amends Economic Development Law § 133(6) to empower the Small Business Advisory Board to report on agency use of streamlined optional adjudicatory proceedings for small businesses.

Section 3 requires three agencies that regulate small businesses (either the Departments of Environmental Conservation, Health and Labor, or others to be substituted by the Governor) to undertake pilot projects to conduct streamlined proceedings.

Section 4 provides that the act shall be not construed to limit any existing authority of any agency to provide for the conduct of adjudicatory proceedings by mail, telephone or electronic means.

Justification

The success of small businesses is key to our economy. New York State must continue its efforts to improve the business climate and allow the use of technology to reduce the costs of government and improve efficiency. This requires rethinking statutory requirements to ensure that 20th - or sometimes 19th - century laws are not creating

barriers to job creation, agency coordination and administrative streamlining.

The costs and burdens of attending an in-person hearing for minor violations can have a disproportionate impact on a small business. New technologies and innovative procedures can allow New York State to conduct such operations in a way that minimizes these burdens.

In 2010, the New York City Regulatory Reform Review Panel recommended that City agencies "facilitate ways for small business owners to avoid having to appear in person before administrative tribunals, such as by settling or contesting violations by mail or telephone or over the internet." In response, the City recently launched a program allowing "One-Click Hearings" which allows people to contest various violations handled by the Environmental Control Board (e.g., trash violations, mobile food carts) as well as parking tickets. In an effort to provide relief to taxpayers, this bill will increase agency efficiency and limit the burdens on small businesses throughout New York State.

Prior legislative history

New Bill.

Fiscal implications

It is anticipated long term savings will be achieved by utilizing more efficient operations.

Effective date

This act shall take effect immediately.