N.Y. Executive Law § 170-c: Regulatory penalties for small businesses

* § 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 determined by such state agency to be de minimus, a small

business, as defined in subdivision eight of section one hundred two of

the state administrative procedure act, 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

of such de minimus violation. However, no waiver of penalties or cure

period or other opportunity for ameliorative action may be given if the

agency determines that the violation may result in a natural resource

damage claim or serious actual harm, or may present an 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 or is a willful violation, involves 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, relates to a material or substantive portion

of the business, or is in contravention of the public interest and/or

policy reflected by the agency's mission. Upon such first violation, a

state agency shall (a) provide the small business with a copy of the

applicable small business regulation guides pursuant to section one

hundred two-a of the state administrative procedure act and any other

helpful guidance or information detailing the agency's rules and

regulations, to the extent such materials exist, or (b) to the extent

practicable, provide such small business assistance with compliance with

the agency's rules and regulations. The agency shall have the discretion

to determine the appropriate period of time to allow such small business

to cure or take such other ameliorative action to address such

violation, which shall be reasonable but shall not be less than fifteen

business days unless a longer period is allowed pursuant to law or

regulation.

2. As used in this section "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, the workers'

compensation board nor the department of financial services.

3. Nothing herein shall prevent or preclude any other waivers of

penalties that may be applicable by this or any other agency.

4. Every state agency shall provide to the division for small

business, created pursuant to section one hundred thirty-two of the

economic development law, the following information covering the

previous calendar year, annually by July first following the effective

date of this subdivision, and every July first thereafter: (a) how many

cure periods or other opportunities for ameliorative action were

afforded pursuant to subdivision one of this section and how many small

businesses made use of such options, (b) how many cure periods and other

opportunities for ameliorative action were successfully completed and

resulted in the avoidance of a penalty, (c) what, if any, guidance,

information, and assistance with compliance was provided to small

businesses issued pursuant to subdivision one of this section, and (d)

the range of time granted by the state agency to correct first time

violations and the type of violations that were ameliorated. The

division for small business shall by October first following the

effective date of this subdivision, and every October first thereafter,

prepare a report compiling this information, by agency, and shall post

this report on its website and shall provide a copy of such report to

the governor, the speaker of the assembly and the temporary president of

the senate.

* NB Repealed December 20, 2027