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S5812Senate2019-2020 SessionSame asA842

Give Small Biz More Time

Official title

“Relates to the time needed by small businesses and local governments to comply with new regulations”

Sponsor Anna KaplanSD-7+1 co-sponsorAffects Economy
Status
Senate Floor Calendar
Impact
4/10
Low
Outcome
Companion signed

Bill progress

Signed via A842

What's happening

This bill requires agencies to assess and notify small businesses and local governments of the minimum time needed to comply with new regulations.

Why it matters

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Who cares

Headline styles

Give Small Biz More Time

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Anna Kaplan

Senator · Senate District 7

Chair, Commerce, Economic Development And Small Business

History

  1. Substituted by A842
  2. Ordered to third reading cal.1400
  3. Committee discharged and committed to rules
  4. Referred to commerce, economic development and 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.

A842Assembly

Give Small Businesses More Time

Signed by Governor · Sponsor Aravella Simotas

Impact 4 · LowSigned into law

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

5812

2019-2020 Regular Sessions

IN SENATE

May 15, 2019

Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business

AN ACT to amend the state administrative procedure act, in relation to the time needed by small businesses and local governments to comply with new regulations

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraphs (e) and (f) of subdivision 2 of section 202-b of the state administrative procedure act are relettered paragraphs (f) and (g) and a new paragraph (e) is added to read as follows:

(e) an assessment of the minimum time that will be needed by small businesses and local governments to come into compliance with the rule, taking into consideration any applicable practical, legal and economic or fiscal constraints on such compliance, and a description of the measures that the agency intends to utilize to ensure that small businesses and local governments are informed of new or amended compliance requirements with sufficient lead time to achieve compliance without experiencing unnecessary costs or burdens;

§ 2. The opening paragraph and paragraph (b) of subdivision 6 of section 202-b of the state administrative procedure act, as amended by chapter 611 of the laws of 1996, are amended to read as follows:

When any rule is proposed for which a regulatory flexibility analysis is required, the agency shall assure that it has actively solicited the participation of small businesses and local governments [have been given an opportunity to participate] in the rule making through activities in addition to publication in the state register and posting on the agency's website, such [activities] as:

(b) the direct notification of interested small businesses and local governments affected by the proposed rule or organizations representing the interests of such entities;

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD01558-01-9

S. 5812 2

§ 3. This act shall take effect on the first of November next succeeding the date on which it shall have become a law and shall apply to all rules for which a notice of proposed rule making is published on or after such date.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Purpose or general idea of bill

This bill requires agencies proposing regulations that affect small businesses or local governments to assess the minimum time such entities will need to come into compliance with any new regulatory requirements.

Summary of specific provisions

Bill § 1 amends subdivision 2 of § 202-b of the State Administrative Procedure Act (SAPA), which requires an agency to prepare a regulatory flexibility analysis (RFA) when a new rule would impose adverse economic impacts or reporting, recordkeeping or other compliance requirements on small businesses or local governments.

Subdivision 2 is amended to require that the RFA include an assessment of the minimum time that will be needed by small businesses and local governments to come into compliance with the rule, taking into consider- ation any applicable practical, legal and economic or fiscal constraints on such compliance, and a description of the measures that the agency intends to utilize to ensure that small businesses and local governments are informed of new or amended compliance requirements with sufficient lead time to achieve compliance without experiencing unnecessary costs or burdens.

Read the full memo (609 words)

Bill § 2 amends subdivision 6 of SAPA . 202-b, which currently requires agencies to assure that small businesses and local governments have been given an opportunity to participate in the rulemaking requiring an RFA.

The amendments instead require the agency to actively solicit such participation, and clarify that merely publishing the rule in the State Register and posting it on the agency's website is not enough: the agency must take additional actions to ensure that affected entities are aware of and invited to provide input on proposed policy changes.

Effects of present law which this bill would alter

SAPA § 202-a(3)(i) requires an agency to indicate in a rule's regulatory impact statement "the estimated period of time necessary to enable regu- lated persons to achieve compliance" with a rule, but does not require any consideration of the different sizes or types of entities affected by the rule.

SAPA § 202-b requires agencies to assure that small businesses and local governments have been given an opportunity to participate in a rulemak- ing that could affect them, and lists a number of targeted means of outreach that agencies may employ. However, agencies frequently indicate that the routine activities of Register publication and online posting alone are sufficient to comply with this requirement.

Justification

New regulations can be needed to protect health and the environment, promote fairness or achieve other important social goals. However, such goals are only met when affected entities come into compliance with such regulations, which cannot always occur overnight. Small businesses cannot immediately access funding, retool their physical plants or train employees, and local governments must often observe specific legal and fiscal procedures before acting.

This bill would require agencies proposing new rules that would impact small businesses and local governments to give due consideration to the practical, legal and economic or fiscal constraints that may affect the ability of these entities to implement new regulatory requirements. It also requires agencies to identify the means by which they intend to communicate policy changes, since no such requirements will be effective if the target audience does not actually receive timely and adequate information on what is expected of them. Finally, to improve both the awareness of pending regulations and the effectiveness of the rulemaking process, the bill reiterates that an agency proposing a rule requiring an RFA must engage in targeted outreach to actively solicit input from affected entities.

Prior legislative history

New bill.

Fiscal implications for state and local governments

None.

Effective date

First day of November after becoming law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.