What's happening
This bill allows small businesses a chance to correct first-time minor regulatory violations before facing state agency penalties.
Why it matters
Gives small businesses a chance to fix minor or paperwork-related violations. without immediate penalties, potentially reducing fear and administrative burden from honest mistakes.
Includes many exceptions. No grace period is given if violations involve actual or potential harm (to public safety, health, environment), are willful, repeat offenses, involve discrimination, tax fraud, employee wage/benefit loss, or are substantive to the business—ensuring serious issues are still penalized immediately.
Requires agencies to help educate and support compliance. , either by giving clear regulatory guides or offering meetings to explain requirements—potentially making government enforcement less adversarial and more collaborative for small firms.
Sets a minimum 90-day correction period. (at agency discretion), so small businesses have meaningful time to address issues, but agencies retain flexibility to adjust as needed.
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Who cares
Headline styles
Ease Fines for Small Businesses
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
History
- Substituted by A7540B
- Amended on third reading (t) 5815c
- Vote reconsidered - restored to third reading
- Returned to senate
- Recalled from assembly
- Referred to small business
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1349
- Committee discharged and committed to rules
- Print number 5815b
- Amend and recommit to finance
Show 3 earlier actions
- Print number 5815a
- Amend (t) and recommit to finance
- Referred to finance
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
Signed by Governor · Sponsor John T. McDonald III
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5815--C Cal. No. 1349
2019-2020 Regular Sessions
IN SENATE
May 15, 2019
Introduced by Sens. KAPLAN, AKSHAR, LIU -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee… Show allHide
Introduced by Sens. KAPLAN, AKSHAR, LIU -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -committee discharged and said bill committed to the Committee on Rules -- reported favorably from said committee, ordered to a third reading, passed by Senate and delivered to the Assembly, recalled, vote reconsidered, restored to third reading, amended and ordered reprinted, retaining its place in the order of third reading
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11565-12-9
S. 5815--C 2
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 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.
Sponsor's memo
Title of bill
An act to amend the executive law, in relation to regulatory fines for small businesses
Purpose or general idea of bill
This bill is intended to reduce regulatory fines on businesses and to create a productive relationship between the state and business owners that will allow them to work closely together.
Summary of specific provisions
Section 1 amends the executive law by adding a new section 170-c to provide a small business with the opportunity to cure for a first violation of such agency's regulations unless explicitly exempted. Violation must be paperwork related, or omissions that are de minimus. A successful completion will prevent the imposition of penalties. Howev- er, no waiver may be given if the agency determines 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 rights or civil rights law in loss of employee wages or benefits; interferes with any remedy, review, or resolution related to harassment or discrim- ination claims; was a willful violation; violates requirements related to federal funding; relates to state procurement; is similar to other violations; is a penal law violation; or relates to a substantive part of the business. Upon first violation a state agency shall provide the small business with a copy of any applicable small business regulation guide, or provide an in person meeting, teleconference or videoconfer- ence to help with the small business' compliance with the agency's rules and regulations.
Changes have been incorporated into the bill language to address the veto message concerns.
(Veto No. 285 of 2018).
Paragraph 2 of Section 1 defines the terms "small business" and "state agency".
Paragraph 3 of Section 1 outlines that this language won't prevent waiv- ers of penalties by agencies for reasons not listed.
Section 2 lists the effective date.
Justification
New York's small businesses are heavily regulated and are not always aware of the numerous current and new regulations. Various regulations can cost small businesses thousands of dollars in implementation and penalties. According to CNBC, New York state is currently ranked 29th when comparing top business states across the country (2016).
For small business to effectively abide by state regulations, they should be provided with essential resources such as literature or an in-person meeting that informs the owner(s) of their obligations to New
York's state agencies. This includes frequent updates on updated rules or regulations.
By allowing our small businesses the opportunity to cure as opposed to an immediate fine, the state would be improving communication with our small businesses and working to improve our business climate.
Legislative history
2017/18: A.8205B/S.4120B, Veto 285 of 2018.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.