What's happening
This bill requires state agencies to give small businesses a chance to correct minor first-time violations before imposing fines, with certain exceptions.
Why it matters
Creates a “grace period” for first-time, minor or paperwork-related violations. Small businesses get at least 90 days to fix correctable first-offenses before being fined, which can reduce fear of accidental mistakes and encourage compliance rather than punishment.
Specifies carve-outs for serious or repeat violations. The bill excludes cases involving harm to health, safety, the environment, human or civil rights, willful or similar prior violations, tax fraud, or violations tied to federal or state funding, ensuring that only genuinely minor or technical errors are eligible for leniency.
Requires agencies to provide compliance help. Agencies must guide small businesses on how to comply—either by supplying regulatory guides or offering meetings/calls—potentially making complex rules clearer and lowering barriers to regulatory understanding.
Targets truly small, local businesses. Only independently owned businesses with 100 or fewer employees qualify, focusing the benefit on the smallest operators who may lack in-house legal or compliance teams.
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Who cares
New York small businesses with 100 or fewer employees
Qualifying independently owned businesses would receive at least 90 days to correct eligible first-time paperwork or minor violations and avoid penalties upon successful correction.
State regulatory agencies and the Workers’ Compensation Board
Covered agencies would have to offer eligible businesses a cure opportunity and either compliance information or a meeting, while the Department of Taxation and Finance would be excluded.
Workers and civil rights advocates
Violations involving lost wages or benefits, human or civil rights laws, or interference with harassment or discrimination remedies would be ineligible for penalty waivers or cure opportunities under the bill.
Environmental and public health advocates
Violations causing natural resource damage claims or serious actual harm, or potentially presenting imminent and substantial danger to public safety, health or the environment, would be excluded from the bill’s relief.
Headline styles
Ease Fines for Small Businesses
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 108
History
- Approval memo.78
- Signed chap.731
- Delivered to governor
- Returned to assembly
- Passed senateVote 62–0
- 3rd reading cal.1349
- Substituted for S5815C
- Referred to rules
- Delivered to senate
- Passed assembly
- Ordered to third reading rules cal.396
- Rules report cal.396
Show 7 earlier actions
- Reported
- Amend and recommit to rules 7540b
- Reported referred to rules
- Reported referred to codes
- Print number 7540a
- Amend and recommit to small business
- Referred to small business
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ease Fines for Small Businesses
Senate Floor Calendar · Sponsor Anna Kaplan
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7540--B
2019-2020 Regular Sessions
IN ASSEMBLY
May 9, 2019
Introduced by M. of A. McDONALD, STIRPE, LUPARDO, WALLACE, BUTTENSCHON, McMAHON, WOERNER, JONES, STECK -- read once and referred to the Committee on Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -reported and referred to the Committee on Codes -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the executive law, in relation to regulatory fines for small businesses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The executive law is amended by adding a new section 170-c to read as follows:
§ 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 de minimus, a small business 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. However, no waiver of penalties or cure period or other opportunity for ameliorative action may be given if the agency determines that the violation resulted in a natural resource damage claim or serious actual harm, or may have presented 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 a willful violation, involved 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11565-10-9
A. 7540--B 2
violation, or relates to a material or substantive portion of the business. Upon such first violation, a state agency shall (a) provide the small business with a copy of any applicable small business regulation guides pursuant to section one hundred two-a of the state administrative procedure act and any other helpful compliance information detailing the agency's rules and regulations, or (b) provide an opportunity for an in-person meeting, teleconference or videoconference with the small business to help assist such small business with compliance with the agency's rules and regulations. The agency shall have the discretion to determine the appropriate period of time to allow for such ameliorative action to occur, which shall be reasonable but shall not be less than ninety days.
2. As used in this section: (a) "Small business" shall mean a business which is resident in this state, independently owned and operated, not dominant in its field and employs one hundred or less persons.
(b) "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 but shall also mean the workers' compensation board.
3. Nothing herein shall prevent or preclude any other waivers of penalties that may be applicable by this or any other agency.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.