Regulatory Compliance Cure Bill (S.5815/A.7540) | 2019

May 29th, 2019

AN ACT to amend the executive law, in relation to  regulatory fines for small businesses

S.5815 (Kaplan) / A.7540 (McDonald)

MEMORANDUM IN SUPPORT 

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of business and trade organizations from all parts of Upstate New York, supports this legislation.

This legislation provides that upon an initial violation of a state agency’s rules or regulations, a small business shall be afforded a cure period or other opportunity for corrective action, which if successful shall prevent the imposition of a fine or fines. This would improve the state’s relationship with small employers and provide the necessary support to ensure regulatory compliance.

Small businesses often cite the aggressive enforcement of newly enacted regulations as a serious problem that contributes to New York State’s unfriendly business climate. A majority of state agencies do have the resources to educate these small businesses on the new laws, some businesses are not even aware that new regulations have been passed. These regulations are immediately enforced and disproportionately affect small businesses, who don’t have the resources or a compliance department to keep track of all the new regulations passed.

New York State has a reputation as a difficult place to start, grow and succeed as a business, this legislation is a step in the right direction for easing the regulatory strain on businesses. By allowing small businesses the opportunity to cure as opposed to an immediate fine, the state would be improving communication with small businesses and working to improve our business climate. This bill suggests literature or an in-person meeting to help keep businesses up-to-date, educating them rather than immediately punishing them, a step in the right direction.

For these reasons, Unshackle Upstate supports this legislation.