A05898 Summary:

BILL NOA05898A
 
SAME ASNo Same As
 
SPONSORKolb
 
COSPNSRBarclay, Blankenbush, Brabenec, Butler, Ceretto, Corwin, Crouch, Curran, DiPietro, Duprey, Finch, Fitzpatrick, Friend, Garbarino, Giglio, Goodell, Graf, Hawley, Johns, Lalor, Lawrence, Lopez, Lupinacci, Malliotakis, McDonough, McKevitt, Montesano, Murray, Oaks, Palmesano, Palumbo, Ra, Raia, Saladino, Stec, Tedisco, Walter, Wozniak, Katz
 
MLTSPNSRMagee
 
Amd §§210, 612, 210-B & 606, add §§42 & 43, Tax L; amd §18-a, rpld sub 6, Pub Serv L; ren Art 50 §§1000 - 1003 to be Art 52 §§1050 - 1053, add Art 50 §§1010 - 1017, Exec L; amd §202, St Ad Proc Act; amd §§86 - 88, §51, add §§88-a & 51-a, Leg L
 
Enacts the small business full employment act; enacts various measures to provide tax and regulatory relief for small businesses to encourage growth.
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A05898 Actions:

BILL NOA05898A
 
03/06/2015referred to ways and means
01/06/2016referred to ways and means
02/08/2016amend and recommit to ways and means
02/08/2016print number 5898a
06/15/2016held for consideration in ways and means
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A05898 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5898A
 
SPONSOR: Kolb (MS)
  TITLE OF BILL: An act to amend the tax law, in relation to a tax deduction for small business (Part A); to amend the tax law, in relation to small business employee retention tax credit (Part B); to amend the tax law in relation to small business hire-NY tax credit (Part C); relating to directing the commissioner of taxation and finance to devel- op a small business sales tax amnesty program (Part D); to amend the public service law, in relation to the temporary state energy and utili- ty service conservation assessment; and to repeal certain provisions of such law relating thereto (Part E); to amend the tax law, in relation to the college to work program and credit (Part F); to amend the executive law, the state administrative procedure act and the legislative law, in relation to the division of regulatory review and economic growth (Part G); relating to directing the commissioner of the department of economic development to develop a small business regulatory amnesty program (Part H); and to amend the legislative law, in relation to an unfunded mandate moratorium (Part I)   PURPOSE OR GENERAL IDEA OF BILL: To enact the "Small Business Full Employment Act" to provide various tax cuts to support small businesses, reduce regulatory burdens on small businesses, eliminate the unnecessary 18-A energy tax assessment and prohibit any new unfunded mandates on local governments, school districts and small businesses. This bill will also provide an amnesty period for small businesses to pay outstanding sales tax debts and fix violations of regulatory requirements without penalty or fines.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 contains the title the "Small Business Full Employment Act." Section 2 amends several sections of law in parts A through I: PART A: Small Business Corporate Franchise Tax Rate Reduction and Personal Income Tax Exemption Small businesses making less than $290,000 would reduce their Corporate Franchise Tax Rate from 6.5% to 4%. Would expand a current Personal Income Tax exemption from 3% to 15% for qualifying small businesses. A small business is defined as a sole proprietor with business income less than $250,000, non-farm LLCs, LLPs and S-Corps with gross income less than $1.5 million, farm LLCs, LLPs and S-Corps with business income less than $250,000. Shareholders and partners can also qualify for the exemption if their income attributable to the gross income of an LLC, LLP, or S Corp is less than $250,000. PART B: Small Business Employee Retainment Tax Credit Small businesses with at least one and up to 100 employees would be eligible for up to a $5,000 tax credit against PIT and CFT for maintain- ing their current employment levels for one year. These credits would be non-refundable. This would be a tiered credit based on the number of employees a small business maintains: *1-10 employees:$1,000 credit *11-25 employees:$2,500 credit *26-50 employees:$3,500 credit *51-100 employees:$5,000 credit PART C: Small Business Hire-NY Tax Credit Small businesses with less than 100 employees would be eligible for a $5,000 tax credit, against PIT and CFT, for each new job created annual- ly. PART D: Small Business Sales Tax Amnesty Program Create a sales tax amnesty program for struggling small businesses that have recently been audited and fined by the department of taxation and finance. Tax amnesty is a limited-time opportunity for small businesses to pay a defined amount, in exchange for forgiveness of a tax liability (includ- ing interest and penalties) relating to a previous tax period or periods and without fear of criminal prosecution. PART E: Temporary 18-A Repeal Repeal the temporary 18-a assessment immediately. PART F: Small Business Tuition Assistance Tax Credit Grant Small businesses a 25 percent tax credit, up to $5,000 annually, if they pay towards college tuition for an employee in exchange for that person's commitment to work for a specified number of years, pursuant to written agreement. PART G: Division of Regulatory Review & Economic Growth Establish a Division to review and make binding recommendations for the elimination of burdensome regulations on small businesses. Require the Division to: *Require a small business economic impact statement prior to the passage of any rule or regulation that impacts small businesses; *Require a regulatory flexibility analysis prior to the adoption of any proposed regulation with the goal of minimizing adverse impact on small businesses *Require a periodic review of rules and regulations to determine whether such rules should be continued without change, or should be amended or rescinded to minimize economic impact of the rules on small businesses. *Review and make recommendations for the elimination of burdensome state agency rules, regulatory process and permit requirements affecting local governments, school districts, or businesses. *Establish an 800 hotline and website to assist businesses and for the public to report regulator), burdens and excessive fines and to submit requests for regulatory review. *Review every proposed state agency rule and either approve or reject such rule. *Submit an annual report to the governor and legislature with recommen- dations on repealing or amending rules, regulatory process and permit requirements it deems necessary to lower costs for local governments, school districts, and businesses or promote economic growth. Require those recommendations to take effect unless rejected by the governor or by a concurrent resolution of the Legislature. *Produce an annual report on the regulatory reform actions proposed and implemented and their estimated or actual cost savings to the taxpayer. *Prepare or have prepared a comprehensive study to measure and report the cost of regulations to businesses throughout New York State. Change the makeup of the joint legislative Administrative Regulations Review Commission to eight members, with two members appointed by each of the four legislative leaders, and authorize the Commission to review legislation and laws that require the promulgation of rules and make recommendations for action by the Legislature. Implements "Regulatory Wednesdays," requiring the joint legislative Administrative Regulations Review Commission, to meet on Wednesdays, which are scheduled Session Days and to and make recommendations for regulatory reform. Also, requires the Legislature to take up any legis- lation approved by the Commission prior to taking up any other legis- lation, unless such action is waived by a majority vote. PART H: Small Business Regulatory Amnesty Program Implement a "regulatory amnesty" period to allow for small businesses to remedy rules or regulations violations. If a small business remedies the violation within a time period of at least 6 months or more as deter- mined by the Commissioner, they would not be subjected to fines or penalties. PART I: Unfunded Mandate Moratorium Prohibit any new unfunded state mandates on local governments, school districts and small businesses and require fiscal notes on bills. Section 3 contains the severability clause. Section 4 contains the effective date.   JUSTIFICATION: Small businesses create jobs, provide the goods and services all New Yorkers rely on and are community staples that bind neighbors. Giving them a fair shot, which the overregulated and overtaxed business climate has denied them, is a legislative priority. Simply put, there is too much red tape, too many taxes and too many misguided legislative proposals that are standing in the way. New York needs sustained policies to foster economic growth, and the Small Business Full Employment act is designed to help our small busi- nesses realize immediate and long-term success. According to Empire State Development, small businesses make up 98 percent of all businesses in New York. This legislation would create the environment necessary for these small businesses to compete in the 21st century global economy, and is critical to sustained economic growth.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately.
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A05898 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5898--A
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 6, 2015
                                       ___________
 
        Introduced  by  M.  of  A. KOLB, BARCLAY, BLANKENBUSH, BRABENEC, BUTLER,
          CERETTO, CORWIN, CROUCH, CURRAN, DiPIETRO, DUPREY, FINCH, FITZPATRICK,
          FRIEND,  GARBARINO,  GIGLIO,  GOODELL,  GRAF,  HAWLEY,  JOHNS,  LALOR,
          LAWRENCE, LOPEZ, LUPINACCI, MALLIOTAKIS, McDONOUGH, McKEVITT, MONTESA-
          NO, MURRAY, NOJAY, OAKS, PALMESANO, PALUMBO, RA, RAIA, SALADINO, STEC,
          TEDISCO, WALTER, WOZNIAK, KATZ -- Multi-Sponsored by -- M. of A. MAGEE
          -- read once and referred to the Committee on Ways and Means -- recom-
          mitted  to the Committee on Ways and Means in accordance with Assembly
          Rule  3,  sec.  2  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to  amend the tax law, in relation to a tax deduction for small
          business (Part A); to amend the tax law, in relation to small business
          employee retention tax credit (Part  B);  to  amend  the  tax  law  in
          relation  to  small  business hire-NY tax credit (Part C); relating to
          directing the commissioner of taxation and finance to develop a  small
          business  sales  tax  amnesty  program  (Part  D); to amend the public
          service law, in relation to the temporary  state  energy  and  utility
          service  conservation  assessment; and to repeal certain provisions of
          such law relating thereto (Part E); to amend the tax law, in  relation
          to the college to work program and credit (Part F); to amend the exec-
          utive  law, the state administrative procedure act and the legislative
          law, in relation to the division of  regulatory  review  and  economic
          growth (Part G); relating to directing the commissioner of the depart-
          ment  of  economic  development to develop a small business regulatory
          amnesty program (Part  H);  and  to  amend  the  legislative  law,  in
          relation to an unfunded mandate moratorium (Part I)
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may  be  cited  as  the  "Small
     2  Business Full Employment Act".

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08793-04-6

        A. 5898--A                          2
 
     1    §  2.  This  act enacts into law components of legislation relating to
     2  "Small Business Full Employment Act". Each component is wholly contained
     3  within a Part identified as Parts A through I. The  effective  date  for
     4  each particular provision contained within such Part is set forth in the
     5  last section of such Part. Any provision in any section contained within
     6  a  Part, including the effective date of the Part, which makes reference
     7  to a section "of this act", when used in connection with that particular
     8  component, shall be deemed  to  mean  and  refer  to  the  corresponding
     9  section of the Part in which it is found.
 
    10                                   PART A
 
    11    Section  1.  Subparagraph  (iv)  of  paragraph (a) of subdivision 1 of
    12  section 210 of the tax law, as amended by section 12 of part A of  chap-
    13  ter 59 of the laws of 2014, is amended to read as follows:
    14    (iv)  (A)  for taxable years beginning before January first, two thou-
    15  sand sixteen, if the business income base is not more than  two  hundred
    16  ninety  thousand dollars the amount shall be six and one-half percent of
    17  the business income base; if the business income base is more  than  two
    18  hundred  ninety thousand dollars but not over three hundred ninety thou-
    19  sand dollars the amount shall be the sum of (1) eighteen thousand  eight
    20  hundred  fifty dollars, (2) seven and one-tenth percent of the excess of
    21  the business income base over two hundred ninety  thousand  dollars  but
    22  not  over three hundred ninety thousand dollars and (3) four and thirty-
    23  five hundredths percent of the excess of the business income  base  over
    24  three  hundred  fifty thousand dollars but not over three hundred ninety
    25  thousand dollars;
    26    (B) for taxable years beginning on or after January first,  two  thou-
    27  sand seventeen, if the business income base is not more than two hundred
    28  ninety thousand dollars the amount shall be four percent of the business
    29  income base; if the business income base is more than two hundred ninety
    30  thousand  dollars but not over three hundred ninety thousand dollars the
    31  amount shall be the sum of (1) eleven thousand six hundred dollars,  (2)
    32  six  and one-half percent of the excess of the business income base over
    33  two hundred ninety-thousand dollars but not over  three  hundred  ninety
    34  thousand dollars and (3) eighteen and thirteen hundredths percent of the
    35  excess  of  the  business  income base over three hundred fifty thousand
    36  dollars but not over three hundred ninety thousand dollars;
    37    § 2. Paragraph 39 of subsection (c) of section 612 of the tax law,  as
    38  added  by  section  1  of  part  Y of chapter 59 of the laws of 2013, is
    39  amended to read as follows:
    40    (39) (A) In the case of a taxpayer  who  is  a  small  business  or  a
    41  taxpayer who is a member, partner, or shareholder of a limited liability
    42  company, partnership, or New York S corporation, respectively, that is a
    43  small  business,  who or which has business income and/or farm income as
    44  defined in the laws of the United States, an  amount  equal  to  [three]
    45  fifteen  percent  of  the  net items of income, gain, loss and deduction
    46  attributable to such business or farm  entering  into  federal  adjusted
    47  gross income, but not less than zero[, for taxable years beginning after
    48  two  thousand  thirteen,  an  amount  equal  to three and three-quarters
    49  percent of the net items of income, gain, loss and  deduction  attribut-
    50  able  to  such  business  or  farm  entering into federal adjusted gross
    51  income, but not less than zero, for taxable years  beginning  after  two
    52  thousand  fourteen, and an amount equal to five percent of the net items
    53  of income, gain, loss and deduction attributable  to  such  business  or

        A. 5898--A                          3

     1  farm  entering  into  federal  adjusted  gross income, but not less than
     2  zero, for taxable years beginning after two thousand fifteen].
     3    (B)(i)  For  the  purposes  of this paragraph, the term small business
     4  shall mean: (I) a sole proprietor [or a farm business] who  employs  one
     5  or  more persons during the taxable year and who has net business income
     6  or net farm income of less than two hundred fifty thousand dollars;
     7    or (II) a limited liability company, partnership or New York s  corpo-
     8  ration  that during the taxable year employs one or more persons and has
     9  New York gross business income attributable to a non-farm business  that
    10  is  greater  than  zero  but less than one million five hundred thousand
    11  dollars or net farm income attributable  to  a  farm  business  that  is
    12  greater than zero but less than two hundred fifty thousand dollars.
    13    (ii)  For purposes of this paragraph, the term New York gross business
    14  income shall mean: (I) in the case of limited  liability  company  or  a
    15  partnership  New York source gross income as defined in subparagraph (B)
    16  of paragraph three of subsection (c) of section six hundred  fifty-eight
    17  of  this article, and, (II) in the case of a New York S corporation, New
    18  York receipts included in the  numerator  of  the  apportionment  factor
    19  determined under section two hundred ten-A of this chapter for the taxa-
    20  ble year.
    21    (C)  To  qualify for this modification in relation to a small business
    22  that is a limited liability company, partnership of New  York  S  corpo-
    23  ration,  the  taxpayer's  income attributable to the net business income
    24  and/or net farm income from its ownership interests in limited liability
    25  companies, partnerships or New York S corporations must be less than two
    26  hundred fifty thousand dollars.
    27    § 3. This act shall take effect immediately and shall apply to taxable
    28  years beginning on or after January 1, 2017.
 
    29                                   PART B
 
    30    Section 1. The tax law is amended by adding a new section 42  to  read
    31  as follows:
    32    §  42.  Small business employee retention tax credit. (a) Allowance of
    33  credit.  A small business taxpayer, which is subject to tax under  arti-
    34  cle  nine-A  or  twenty-two  of  this  chapter and retains the base year
    35  employment level, shall be allowed a credit against such tax. The credit
    36  shall be one thousand dollars for small businesses that  retain  between
    37  one and ten employees; two thousand five hundred dollars for small busi-
    38  nesses that retain between eleven and twenty-five employees; three thou-
    39  sand five hundred dollars for small businesses that retain between twen-
    40  ty-six  and  fifty  employees;  and  five  thousand  dollars  for  small
    41  businesses that retain between fifty-one and one hundred employees.
    42    (b) Definitions. As used in this section, the  following  terms  shall
    43  have the following meanings:
    44    (1) "Small business taxpayer" shall mean an employer with at least one
    45  employee but not more than one hundred full time employees.
    46    (2) "Base year" shall mean the prior tax year.
    47    (3) "Employee" shall mean an individual employed on a full-time basis.
    48    (c)  No  credit  shall be allowed under this section to a taxpayer for
    49  any new employee if the taxpayer claims  any  other  credit  under  this
    50  article for such new employee where the basis of such other credit is an
    51  increase in employment.
    52    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    53  sion 49 to read as follows:

        A. 5898--A                          4
 
     1    49. Small business employee retention tax  credit.  (a)  Allowance  of
     2  credit.  A taxpayer will be allowed a credit, to be computed as provided
     3  in section forty-two of this chapter, against the tax  imposed  by  this
     4  article.
     5    (b)  Application  of credit. The credit allowed under this subdivision
     6  for any taxable year may not reduce the tax due for such  year  to  less
     7  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
     8  section two hundred ten of this article. However, if the amount of cred-
     9  it allowed under this subdivision for any taxable year reduces  the  tax
    10  to such amount, any amount of credit thus not deductible in such taxable
    11  year will be treated as an overpayment of tax to be credited or refunded
    12  in  accordance with the provisions of section one thousand eighty-six of
    13  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    14  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    15  interest will be paid thereon.
    16    § 3. Section 606 of the tax law is amended by adding a new  subsection
    17  (ccc) to read as follows:
    18    (ccc)  Small  business  employee  retention tax credit. (1) A taxpayer
    19  will be allowed a credit, to the extent allowed under section  forty-two
    20  of this chapter, against the tax imposed by this article.
    21    (2)  Application  of  credit. The credit allowed under this subsection
    22  for any taxable year may not reduce the tax due for such  year  to  less
    23  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    24  section two hundred ten of this chapter.   However,  if  the  amount  of
    25  credit  allowed  under  this subsection for any taxable year reduces the
    26  tax to such amount, any amount or credit thus  not  deductible  in  such
    27  taxable  year will be treated as an overpayment of tax to be credited or
    28  refunded in accordance with  the  provisions  of  section  one  thousand
    29  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
    30  subsection (c) of section one  thousand  eighty-eight  of  this  chapter
    31  notwithstanding, no interest will be paid thereon.
    32    §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    33  of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
    34  follows:
    35  (xli) Small business employee        Amount of credit under
    36  retention tax credit under           subdivision forty-nine of
    37  subsection (ccc)                     section two hundred ten-B
    38    § 5. This act shall take effect immediately and shall apply to taxable
    39  years beginning on or after January 1, 2017.
 
    40                                   PART C
 
    41    Section  1.  The tax law is amended by adding a new section 43 to read
    42  as follows:
    43    § 43. Small business hire-NY tax credit. (a) Allowance  of  credit.  A
    44  small business taxpayer, which is subject to tax under article nine-A or
    45  twenty-two  of  this  chapter  and creates a new job, shall be allowed a
    46  credit against such tax. The credit shall be five thousand  dollars  for
    47  any  new  job  for  one  full year of employment by an employee; if that
    48  employee has been hired for less than a full tax year this amount  shall
    49  be prorated and apportioned to each tax year.
    50    (b)  Definitions.  As  used in this section, the following terms shall
    51  have the following meanings:
    52    (1) "Small business taxpayer" shall mean an employer with at least one
    53  employee but not more than one hundred full-time employees.
    54    (2) "Base year" shall mean the prior tax year.

        A. 5898--A                          5
 
     1    (3) "New job" shall mean the number of full-time  employees  or  full-
     2  time  equivalent employees above the number of employees during the base
     3  year. For a new business, base employment shall begin at zero.
     4    (4) "Employee" shall mean an individual employed on a full-time basis.
     5    (c)  No  credit  shall be allowed under this section to a taxpayer for
     6  any new employee if the taxpayer claims  any  other  credit  under  this
     7  article for such new employee where the basis of such other credit is an
     8  increase in employment.
     9    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    10  sion 51 to read as follows:
    11    51. Small business hire-NY tax credit. (a) Allowance  of  credit.    A
    12  taxpayer will be allowed a credit, to be computed as provided in section
    13  forty-three of this chapter, against the tax imposed by this article.
    14    (b)  Application  of credit. The credit allowed under this subdivision
    15  for any taxable year may not reduce the tax due for such  year  to  less
    16  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    17  section two hundred ten of this article. However, if the amount of cred-
    18  it allowed under this subdivision for any taxable year reduces  the  tax
    19  to such amount, any amount of credit thus not deductible in such taxable
    20  year will be treated as an overpayment of tax to be credited or refunded
    21  in  accordance with the provisions of section one thousand eighty-six of
    22  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    23  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    24  interest will be paid thereon.
    25    § 3. Section 606 of the tax law is amended by adding a new  subsection
    26  (eee) to read as follows:
    27    (eee)  Small  business  hire-NY  tax  credit.  (1)  A taxpayer will be
    28  allowed a credit, to the extent allowed  under  section  forty-three  of
    29  this chapter, against the tax imposed by this article.
    30    (2)  Application  of credit. The credit allowed under this subdivision
    31  for any taxable year may not reduce the tax due for such  year  to  less
    32  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    33  section two hundred ten of this article. However, if the amount of cred-
    34  it allowed under this subdivision for any taxable year reduces  the  tax
    35  to such amount, any amount of credit thus not deductible in such taxable
    36  year will be treated as an overpayment of tax to be credited or refunded
    37  in  accordance with the provisions of section one thousand eighty-six of
    38  this chapter. Provided, however, the provisions  of  subsection  (c)  of
    39  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    40  interest will be paid thereon.
    41    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    42  of  the  tax  law  is  amended by adding a new clause (xliii) to read as
    43  follows:
    44  (xliii) Small business hire-NY tax   Amount of credit under
    45  credit under subsection              subdivision fifty-one of
    46  (eee)                                section two hundred ten-B
    47    § 5. This act shall take effect immediately and shall apply to taxable
    48  years beginning on or after January 1, 2017.

    49                                   PART D
 
    50    Section 1. The commissioner of taxation and finance shall develop  and
    51  implement  a  "sales  tax amnesty program" which allows a period of time
    52  for small businesses to pay a defined payment of tax  amount  due  as  a
    53  result  of  an  audit  by  the  department  of  taxation and finance, in
    54  exchange for forgiveness of a  tax  liability,  including  interest  and

        A. 5898--A                          6
 
     1  penalties.  Small  businesses  are businesses with less than one hundred
     2  employees.
     3    § 2. This act shall take effect immediately.
 
     4                                   PART E
 
     5    Section  1. Subdivision 6 of section 18-a of the public service law is
     6  REPEALED.
     7    § 2. Paragraph (g) of subdivision 2 of  section  18-a  of  the  public
     8  service  law,  as  amended  by section 2 of part A of chapter 173 of the
     9  laws of 2013, is amended to read as follows:
    10    (g) The total amount which may be charged to any public utility compa-
    11  ny and the Long Island power authority under authority of this  subdivi-
    12  sion  for  any  state  fiscal year shall not exceed one-third of one per
    13  centum of such public utility company's or authority's  gross  operating
    14  revenues  derived from intrastate utility operations in the last preced-
    15  ing calendar year, or other twelve month period  as  determined  by  the
    16  chairman;  provided,  however,  that  no  corporation  or person that is
    17  subject to the jurisdiction of the commission only with respect to safe-
    18  ty, or the power authority of the state of New York, shall be subject to
    19  the general assessment provided for under this subdivision.
    20    Notwithstanding the provisions of subdivision one of this section, for
    21  telephone corporations as defined in subdivision  seventeen  of  section
    22  two  of  this article, the total amount which may be charged such corpo-
    23  rations for department expenses under the authority of  subdivision  one
    24  of  this section for any state fiscal year shall not exceed one-third of
    25  one percentum of such corporation's gross operating  revenue,  over  and
    26  above  five  hundred  thousand  dollars, derived from intrastate utility
    27  operations in the last preceding calendar year, or  other  twelve  month
    28  period as determined by the chairman.
    29    § 3. This act shall take effect immediately.
 
    30                                   PART F
 
    31    Section  1.  Section  210-B  of the tax law is amended by adding a new
    32  subdivision 52 to read as follows:
    33    52. Credit for college to work program. (a) Allowance of  credit.    A
    34  taxpayer  who  is  a  small  business  shall  be allowed a credit, to be
    35  computed as hereinafter provided, against the tax imposed by this  arti-
    36  cle,  based  upon  its  payment  of  tuition to an institution of higher
    37  education on behalf of a qualified individual employee for a  number  of
    38  years,  as  set  forth in a written agreement between the small business
    39  taxpayer and the individual employee.
    40    (b) Tuition. For the purposes of this credit, the term "tuition" shall
    41  mean the tuition and fees paid for the enrollment and  attendance  of  a
    42  qualified  individual employee at an institution of higher education, as
    43  well as monies paid for textbooks in connection with  attendance  at  an
    44  institution  of  higher  education. Provided, however, any amounts which
    45  have been paid for or reimbursed by any other scholarships or  financial
    46  aid,  or  tuition  required  for enrollment or attendance in a course of
    47  study leading to the granting of a post baccalaureate or other  graduate
    48  degree, shall be excluded form the definition of "tuition".
    49    (c)  Institution of higher education. For the purposes of this credit,
    50  the term "institution of higher education" shall mean any institution of
    51  higher education, recognized and approved by the regents, or any succes-
    52  sor organization, of the university of the state of New York or  accred-

        A. 5898--A                          7
 
     1  ited  by  a  nationally  recognized  accrediting  agency  or association
     2  accepted as such by the regents, or any successor organization,  of  the
     3  university  of  the  state of New York, which provides a course of study
     4  leading  to  the  granting  of  a  post-secondary degree, certificate or
     5  diploma.
     6    (d) Qualified individual employee. For purposes of  this  credit,  the
     7  term  "qualified individual employee" shall mean any individual employee
     8  who is not a spouse, child or dependent of the taxpayer or any  individ-
     9  ual  employee  who is not a spouse, child or dependent of any officer or
    10  employee of the taxpayer.
    11    (e) Written agreement. For purposes of this credit, the term  "written
    12  agreement"  shall  mean  a  document  signed and dated by both the small
    13  business taxpayer and the qualified individual employee  which  contains
    14  provisions  including  but  not  limited to the minimum salary which the
    15  taxpayer will pay to the qualified individual  upon  completion  of  the
    16  individual's degree; the required duration of employment upon completion
    17  of the individual's degree; and the parties' respective responsibilities
    18  in the event that the taxpayer ceases operations or later decides not to
    19  offer  employment to the individual upon completion of his/her degree or
    20  in the event that the qualified individual fails to complete the  degree
    21  or to work for the taxpayer for the agreed upon term.
    22    (f) Small business. For purposes of this credit, the term "small busi-
    23  ness" shall mean any business with less than one hundred employees.
    24    (g)  Amount of credit. Notwithstanding the provision of any other law,
    25  a taxpayer which provides for the payment of  an  individual  employee's
    26  tuition  under  the college to work program established by this subdivi-
    27  sion, shall be allowed a credit against the tax imposed by this article,
    28  to the extent of twenty-five percent of monies paid  for  each  individ-
    29  ual's  tuition,  but  such credit shall not exceed five thousand dollars
    30  for one year for each such qualified individual.
    31    (h) Carryover. The credit allowed under this subdivision for any taxa-
    32  ble year shall not reduce the tax due for such year  to  less  than  the
    33  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    34  hundred ten of this article. Provided, however, if the amount of  credit
    35  allowable under this subdivision for any taxable year reduces the tax to
    36  such  amount,  any  amount of credit not deductible in such taxable year
    37  may be carried over to the following year or years, and may be  deducted
    38  from the taxpayer's tax for such year or years.
    39    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    40  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
    41  follows:
    42  (xliv) College to work program       Amount of credit under
    43  credit under subsection (s-1)        subdivision fifty-two
    44                                       of section two hundred ten-B
    45    §  3. Section 606 of the tax law is amended by adding a new subsection
    46  (s-1) to read as follows:
    47    (s-1) Credit for college to work program. (1) Allowance of  credit.  A
    48  taxpayer  who  is  a  small  business  shall  be allowed a credit, to be
    49  computed as hereinafter provided, against the tax imposed by this  arti-
    50  cle,  based upon such taxpayer's payment of tuition to an institution of
    51  higher education  on  behalf  of  a  qualified  individual  employee  in
    52  exchange  for  the  individual  agreeing  to work for the taxpayer for a
    53  number of years, as set forth in a written agreement between the taxpay-
    54  er and the individual.  For the purpose of this subsection "small  busi-
    55  ness" shall mean a business which has one hundred or fewer employees.

        A. 5898--A                          8
 
     1    (2) Tuition. For the purposes of this credit, the term "tuition" shall
     2  mean  the  tuition and fees paid for the enrollment and attendance of an
     3  individual at an institution of higher education, as well as monies paid
     4  for textbooks in connection with attendance at an institution of  higher
     5  education.  Provided,  however,  any amounts which have been paid for or
     6  reimbursed by any  other  scholarships  or  financial  aid,  or  tuition
     7  required  for  enrollment  or attendance in a course of study leading to
     8  the granting of a post baccalaureate or other graduate degree, shall  be
     9  excluded from the definition of "tuition".
    10    (3)  Institution of higher education. For the purposes of this credit,
    11  the term "institution of higher education" shall mean any institution of
    12  higher education, recognized and approved by the regents, or any succes-
    13  sor organization, of the university of the state of New York or  accred-
    14  ited  by  a  nationally  recognized  accrediting  agency  or association
    15  accepted as such by the regents, or any successor organization,  of  the
    16  university  of  the  state of New York, which provides a course of study
    17  leading to the granting  of  a  post-secondary  degree,  certificate  or
    18  diploma.
    19    (4)  Qualified  individual  employee. For purposes of this credit, the
    20  term "qualified individual employee" shall mean any individual  employee
    21  who  is not a spouse, child or dependent of the taxpayer or any individ-
    22  ual employee who is not a spouse, child or dependent of any  officer  or
    23  employee of the taxpayer.
    24    (5)  Written agreement. For purposes of this credit, the term "written
    25  agreement" shall mean a document signed and  dated  by  both  the  small
    26  business  taxpayer  and the qualified individual employee which contains
    27  provisions including but not limited to the  minimum  salary  which  the
    28  taxpayer  will  pay  to  the qualified individual upon completion of the
    29  individual's degree; the required duration of employment upon completion
    30  of the individual's degree; and the parties' respective responsibilities
    31  in the event that the taxpayer ceases operations or later decides not to
    32  offer employment to the individual upon completion of his/her degree  or
    33  in  the event that the qualified individual fails to complete the degree
    34  or to work for the taxpayer for the agreed upon term.
    35    (6) Small business. For purposes of this credit, the term "small busi-
    36  ness" shall mean any business with less than one hundred employees.
    37    (7) Amount of credit. Notwithstanding the provisions of any other law,
    38  a taxpayer who provides for the  payment  of  an  individual  employee's
    39  tuition   under   the  college  to  work  program  established  by  this
    40  subsection, shall be allowed a credit against the tax  imposed  by  this
    41  article,  to  the  extent of twenty-five percent of monies paid for each
    42  individual's tuition, but such credit shall  not  exceed  five  thousand
    43  dollars for one year for each such qualified individual.
    44    (8) Carryover. If the amount of credit allowable under this subsection
    45  for  any  taxable  year  exceeds  the  taxpayer's tax for such year, any
    46  amount of credit not deductible in such taxable year may be carried over
    47  to the following year or years and may be deducted from  the  taxpayer's
    48  tax for such year or years.
    49    §  4.  This  act  shall take effect immediately and shall apply to all
    50  taxable years commencing after January 1, 2017.
 
    51                                   PART G

    52    Section 1. Article 50 and sections 1000, 1001, 1002 and  1003  of  the
    53  executive  law,  as  renumbered  by  chapter 770 of the laws of 1978 are

        A. 5898--A                          9
 
     1  renumbered article 52 and sections 1050, 1051, 1052 and 1053 and  a  new
     2  article 50 is added to read as follows:
     3                                 ARTICLE 50
     4              DIVISION OF REGULATORY REVIEW AND ECONOMIC GROWTH
     5  Section 1010. Definitions.
     6          1011. Division of regulatory review and economic growth.
     7          1012. General functions, powers and duties.
     8          1013. Assistance of other state agencies.
     9          1014. Regulation review.
    10          1014-a. Regulations affecting small business.
    11          1015. Division annual recommendations.
    12          1016. Implementation of recommendations.
    13          1017. Cost of regulation study.
    14    §  1010.  Definitions.  When used in this article, the following terms
    15  shall have the following meanings:
    16    1. "Commissioner" means the commissioner of the division of regulatory
    17  review and economic growth.
    18    2. "Division" means the division of  regulatory  review  and  economic
    19  growth created by this article.
    20    3.  "Permit"  shall mean the whole or part of any state agency permit,
    21  license, certificate, approval, registration, charter, or  similar  form
    22  of  permission  or  authority  required  by  law or by state agency rule
    23  having the force and effect of law, which is  required  for  a  business
    24  undertaking,  project  or activity; provided, however, it shall not mean
    25  individual licenses for practicing  a  profession  prescribed  in  title
    26  eight  of  the education law, filings under the uniform commercial code,
    27  or routine licenses and permits  for  individual  privileges,  including
    28  licenses  for  operating  a motor vehicle and amateur sporting licenses,
    29  such as for hunting and fishing.
    30    4. "Rule" means a rule as defined in subparagraph (i) of paragraph (a)
    31  of subdivision two of section one hundred two of the  state  administra-
    32  tive  procedure act, including rules of the workers' compensation board,
    33  but does not include the rules of  the  state  comptroller  or  attorney
    34  general,  rules  regarding  jurisdictional  classifications  pursuant to
    35  subdivision one of section six of the civil service law, and the  alter-
    36  ation  of  hunting  or fishing seasons pursuant to article eleven of the
    37  environmental conservation law.
    38    5. "State agency" means an agency as defined  in  subdivision  one  of
    39  section one hundred two of the state administrative procedure act.
    40    6. "Small business" shall have the same meaning as set forth in subdi-
    41  vision twenty of section three hundred ten of this chapter.
    42    §  1011.   Division of regulatory review and economic growth. 1. There
    43  is hereby created in the executive department the division of regulatory
    44  review and economic growth. The  head  of  the  division  shall  be  the
    45  commissioner of the division who shall be appointed by the governor with
    46  the consent of the senate and serve a term of five years.
    47    2. The commissioner must have at least ten years of experience running
    48  a for-profit business, with at least three years experience as the chief
    49  executive  officer,  chief operating   officer, chief financial officer,
    50  president, owner, or any other title used for the highest ranking  offi-
    51  cer, administrator or manager of a for-profit business.
    52    3.  The  commissioner shall be appointed by the governor within thirty
    53  days of the effective date of this section and within thirty days of the
    54  expiration of every five year term thereafter, and upon confirmation  of
    55  the  senate  shall serve a term of five years effective from the date of
    56  confirmation. If the senate rejects an appointment, the  governor  shall

        A. 5898--A                         10
 
     1  have  thirty  days  from  the  date  of the rejection to appoint another
     2  commissioner.
     3    4.  The  commissioner  may  only  be  removed  from office by a felony
     4  conviction or a crime involving a violation of his or her oath of office
     5  or by the assent of two-thirds of the members elected to each branch  of
     6  the legislature voting separately.
     7    5. Such commissioner shall receive an annual salary to be fixed by the
     8  governor  within the amount made available therefor by appropriation and
     9  shall be allowed his  or  her  actual  and  necessary  expenses  in  the
    10  performance of his or her duties.
    11    6.  Upon  appointment  and  until  such term expires, the commissioner
    12  shall not (a) participate in any partisan  political  party  activities,
    13  except that such candidate may register to vote as a member of any poli-
    14  tical  party  and may vote in any party primary for candidates for nomi-
    15  nation of the party in which he  or  she  is  registered  to  vote;  (b)
    16  endorse  any  candidate or political party; or (c) make contributions to
    17  any candidate, political party committee, political action committee  or
    18  political committee pursuant to subdivision ten of section 14-114 of the
    19  election law.
    20    7. The commissioner shall direct the work of the division and shall be
    21  the  chief executive officer of the division. The commissioner may enter
    22  into contracts and expend money, and appoint such officers and employees
    23  as he or she may deem  necessary,  prescribe  their  duties,  fix  their
    24  compensation,  and  provide for the reimbursement of their expenses, all
    25  within amounts made available  therefor  by  appropriation.  Such  staff
    26  shall  be  management  confidential  employees  with an understanding of
    27  private sector business.
    28    § 1012. General functions, powers and duties. The division of  regula-
    29  tory  review and economic growth, by and through the commissioner or his
    30  or her duly authorized officers and employees, shall have the  following
    31  functions, powers and duties:
    32    1. To provide an oversight, review and analysis of the rules and regu-
    33  latory processes of state agencies.
    34    2.  To make binding recommendations to the governor and legislature on
    35  burdensome New York state codes, rules,  regulations,  regulatory  proc-
    36  esses,  and  permit requirements to eliminate or amend them, pursuant to
    37  section one thousand fifteen of this article.
    38    3. To review the  environmental  quality  review  process  established
    39  under  article  eight  of  the  environmental  conservation law and make
    40  recommendations pursuant to subdivision two of this section to establish
    41  a more efficient, predictable, timely, and transparent process,  and  to
    42  ensure  that  the  process  does  not stifle economic growth in New York
    43  state.
    44    4. To review permit requirements and the need by the state to  require
    45  such permits. The division shall make recommendations pursuant to subdi-
    46  vision  two  of  this section to eliminate, consolidate, simplify, expe-
    47  dite, or otherwise improve permits,  permit  procedures,  and  paperwork
    48  burdens affecting local governments, school districts or businesses.
    49    5.  To encourage and facilitate the participation of federal and local
    50  government agencies in regulatory review.
    51    6. To establish an 800 hotline and website to provide businesses  with
    52  one  contact  number  to  direct  questions and to provide assistance to
    53  businesses in the state or businesses looking to open or expand  in  New
    54  York state. Such hotline may be used to report regulatory burdens, state
    55  agencies  overreaching  their  power,  excessive  fines  and  to  submit
    56  requests for regulatory review by the commissioner.

        A. 5898--A                         11
 
     1    7. To adopt such rules and regulations, procedures, instructions,  and
     2  forms  as are necessary or desirable to carry out the functions, powers,
     3  and duties imposed upon the division by this article.
     4    8.  To publish an annual report, after January first and before Febru-
     5  ary first, commencing two thousand nineteen, including  all  recommenda-
     6  tions  proposed by the division and those recommendations implemented by
     7  the state during the prior calendar  year.  Such  report  shall  include
     8  specific details concerning estimated cost savings to the taxpayers from
     9  proposed  recommendations  and actual cost savings to the taxpayers from
    10  implemented recommendations.
    11    § 1013. Assistance of other state agencies. To effectuate the purposes
    12  of this article, the commissioner may request and shall be  entitled  to
    13  receive  from  any state agency, and the same are authorized to provide,
    14  such assistance, services, facilities, and data as will enable the divi-
    15  sion to carry out its functions, powers and duties.
    16    § 1014. Regulation review. 1. In developing a rule, each  agency  head
    17  shall,  prior  to  submitting a notice of proposed or revised rulemaking
    18  for publication in the state register pursuant to  section  two  hundred
    19  two of the state administrative procedure act, submit to the commission-
    20  er,  in  such  form  and  manner  as the commissioner may prescribe, the
    21  complete text of the rule, any impact statements which would be required
    22  by article two of the state administrative procedure act to propose  the
    23  rule,  and any cost-benefit analysis, risk assessment and/or the results
    24  of a negotiated rulemaking or policy dialogue undertaken in  conjunction
    25  with the development of the rule.
    26    2.  The commissioner shall review the agency's submission to determine
    27  whether it is complete and in accordance with the  goals,  criteria  and
    28  requirements of this article and article two of the state administrative
    29  procedure act, including whether the rule:
    30    (a) is clearly within the authority delegated by law;
    31    (b) is consistent with and necessary to achieve a specific legislative
    32  intent  of promoting economic growth or protecting the health and safety
    33  of the public;
    34    (c) is consistent with state statutory requirements;
    35    (d) does not impose a mandate on local governments,  school  districts
    36  or  businesses that is not fully funded, except as specifically required
    37  by state statute;
    38    (e) is clearly written so that its meaning will be  easily  understood
    39  by those persons affected by it;
    40    (f)  does  not  unnecessarily  duplicate or exceed existing federal or
    41  state statutes or rules;
    42    (g) prescribes methodologies  or  requirements  that  allow  regulated
    43  parties  flexibility and encourage innovation in meeting the legislative
    44  or administrative requirements and objectives underlying the rule;
    45    (h) is based on credible assessments, using recognized  standards,  of
    46  the  degree  and nature of the risks which may be regulated, including a
    47  comparison with everyday risks familiar to the public;
    48    (i) gives preference to the least costly, least burdensome  regulatory
    49  and paperwork requirements needed to accomplish legislative and adminis-
    50  trative objectives;
    51    (j) is based upon the best scientific, technical and economic informa-
    52  tion that can reasonably and affordably be obtained; and
    53    (k)  if  possible  and practical, favors market-oriented solutions and
    54  performance standards over command-and-control regulation.
    55    3. If the commissioner determines that  the  submission  is  complete,
    56  complies  with  the  provisions of subdivision two of this section, will

        A. 5898--A                         12
 
     1  promote economic growth, or is vital to protect the health and safety of
     2  the public, the commissioner shall authorize the agency  to  submit  the
     3  rulemaking for publication in the state register pursuant to section two
     4  hundred two of the state administrative procedure act.
     5    4.  If  the  commissioner determines the submission is not complete or
     6  does not comply  with  the  requirements  of  subdivision  two  of  this
     7  section,  or  is detrimental to economic growth in New York state, or is
     8  not vital to protect the health and safety of the  public,  the  commis-
     9  sioner may reject the rule or return it to the agency, together with any
    10  direction  that  the  agency  amend,  prepare  or  revise  the rule, any
    11  supporting impact statements, cost benefit  analysis,  risk  assessment,
    12  and/or undertake a negotiated rulemaking or policy dialogue to develop a
    13  rule  for proposal.   The division may assist the agency in developing a
    14  proposal that meets the requirements of subdivision two of this section.
    15    5. An agency  may  consult  informally  with  the  division  regarding
    16  proposed rules, supporting impact statements, and other documents at any
    17  time  prior  to the submission of such materials pursuant to subdivision
    18  one of this section. Such informal consultation shall not be binding  on
    19  the division or the agency.
    20    6.  No  agency head shall submit a notice of proposed or revised rule-
    21  making for publication in the state register  pursuant  to  section  two
    22  hundred  two  of the state administrative procedure act, without express
    23  approval by the commissioner. The  commissioner,  in  his  or  her  sole
    24  discretion,  may  reject  any particular rule or category of rules he or
    25  she determines is detrimental to economic growth in New York  state,  or
    26  is  not  vital to protect the health and safety of the public. The divi-
    27  sions shall promptly notify the agency of any such rejection.
    28    § 1014-a. Regulations  affecting  small  business.  1.  Prior  to  the
    29  adoption  of  any proposed regulation that may have an adverse impact on
    30  small businesses, each agency shall prepare an economic impact statement
    31  that includes the following:
    32    (a) an identification and estimate of the number of  the  small  busi-
    33  nesses subject to the proposed regulation;
    34    (b)  the  projected reporting, record keeping and other administrative
    35  costs required for compliance with the  proposed  regulation,  including
    36  the  type of professional skills necessary for preparation of the report
    37  or record;
    38    (c) a statement of the probable effect on impacted  small  businesses;
    39  and
    40    (d)  a  description  of  any less intrusive or less costly alternative
    41  methods of achieving the purpose of the proposed regulation.
    42    2. Prior to the adoption of any proposed regulation, each agency shall
    43  prepare a regulatory flexibility analysis with the  goal  of  minimizing
    44  adverse impact on small businesses. The agency must consider each of the
    45  following  methods  of reducing the impact of the proposed regulation on
    46  small businesses:
    47    (a) the  establishment  of  less  stringent  compliance  or  reporting
    48  requirements for small businesses;
    49    (b)  the  establishment  of  less stringent schedules or deadlines for
    50  compliance or reporting requirements for small businesses;
    51    (c) the consolidation or simplification  of  compliance  or  reporting
    52  requirements for small businesses;
    53    (d) the establishment of performance standards for small businesses to
    54  replace  design  or operational standards required in the proposed regu-
    55  lation; and

        A. 5898--A                         13
 
     1    (e) the exemption of small businesses from all  or  any  part  of  the
     2  requirements contained in the proposed regulation.
     3    3.  (a)  Within four years of the effective date of this section, each
     4  agency shall review all agency rules existing at the time  of  enactment
     5  to  determine  whether such rules should be continued without change, or
     6  should be amended or rescinded, consistent with the stated objectives of
     7  those statutes, to minimize economic impact of the rules on small  busi-
     8  nesses.
     9    (b)  Rules  adopted after the effective date of this section should be
    10  reviewed every five years after the publication of  such  rules  as  the
    11  final  rule  to ensure that they minimize economic impact on small busi-
    12  nesses in a manner consistent with the stated objectives  of  applicable
    13  statutes.
    14    (c)  In  reviewing  rules  to  minimize economic impact of the rule on
    15  small businesses, the agency shall consider the following factors:
    16    (i) the continued need for the rule;
    17    (ii) the nature of complaints or comments received concerning the rule
    18  from the public;
    19    (iii) the complexity of the rule;
    20    (iv) the extent to which the rule overlaps,  duplicates  or  conflicts
    21  with other federal, state and local governmental rules; and
    22    (v) the length of time since the rule has been evaluated or the degree
    23  to  which technology, economic conditions, or other factors have changed
    24  in the area affected by the rule.
    25    § 1015. Division annual recommendations. On or before  January  first,
    26  two  thousand sixteen and annually thereafter, the division shall trans-
    27  mit to the governor and the legislature a report containing  its  recom-
    28  mendations, which shall include:
    29    1.  specific  recommendations for repealing or amending New York state
    30  codes, rules, regulations, regulatory processes, and permit requirements
    31  as it deems necessary to  lower  costs  for  local  governments,  school
    32  districts and businesses or promote economic growth; and
    33    2.  recommended dates by which such actions should occur.
    34    §  1016.  Implementation  of  recommendations.  1. Notwithstanding any
    35  contrary provision of law, rule or regulation related to the  repeal  or
    36  amendment  of  any  New York state codes, rules, regulations, regulatory
    37  processes, and permit requirements identified in the  division's  recom-
    38  mendations,  the  secretary of state shall take all actions necessary to
    39  implement, in a reasonable, cost-efficient manner,  the  recommendations
    40  of  the  division pursuant to section one thousand fifteen of this arti-
    41  cle, including, but not limited to  coordination  with  state  agencies,
    42  authorities, and other parties as the commissioner deems appropriate.
    43    2.  The provisions of subdivision one of this section shall not apply:
    44  (a) unless the governor has  transmitted  the  division's  report  under
    45  section  one  thousand  fifteen  of this article with his or her written
    46  approval of the recommendations of the division pursuant to section  one
    47  thousand fifteen of this article to the secretary of state and transmit-
    48  ted  a  message  to  the  legislature  stating  his  or  her approval or
    49  rejection of the report within five days of receiving such  report;  and
    50  (b)  if  a majority of the members of each house of the legislature vote
    51  to adopt a concurrent resolution rejecting the  recommendations  of  the
    52  division  pursuant  to  section  one thousand fifteen of this article in
    53  their entirety within sixty days, after receiving  a  message  from  the
    54  governor  under  this  subdivision.  In  no event shall the secretary of
    55  state begin to implement the recommendations of the division pursuant to

        A. 5898--A                         14

     1  section one thousand fifteen of this article prior to the expiration  of
     2  the legislature's sixty day review period.
     3    §  1017.  Cost of regulation study. The commissioner is hereby author-
     4  ized and directed to prepare or have prepared a comprehensive  study  to
     5  measure  and report the cost of regulations to businesses throughout the
     6  state of New York.
     7    2. Such study shall be completed within eighteen months of the  effec-
     8  tive date of this act.
     9    §  2.  Paragraph  (a)  of  subdivision 6-a of section 202 of the state
    10  administrative procedure act, as amended by chapter 171 of the  laws  of
    11  1994, is amended to read as follows:
    12    (a) An agency shall transmit a copy of any rule making notice prepared
    13  pursuant  to  this article and approved by the commissioner of the divi-
    14  sion of regulatory  review  and  economic  growth  pursuant  to  article
    15  fifty-one  of the executive law to the governor, the temporary president
    16  of the senate, the speaker of the assembly, the minority leader  of  the
    17  senate,  the  minority  leader of the assembly, the administrative regu-
    18  lations review commission and the office of  regulatory  and  management
    19  assistance  at  the  time  such  notice is submitted to the secretary of
    20  state for publication in the  state  register.  Such  transmittal  shall
    21  include  the complete rule text, regulatory impact statement, regulatory
    22  flexibility analysis, rural  area  flexibility  analysis,  or  revisions
    23  thereof,  and  any other information submitted to the secretary of state
    24  pursuant to this article.
    25    § 3. Section 86 of the legislative law, as added by chapter 689 of the
    26  laws of 1978, is amended to read as follows:
    27    § 86. Administrative regulations review commission.  There  is  hereby
    28  created  an  administrative  regulations review commission to consist of
    29  two members of the senate to be appointed by the temporary president  of
    30  the  senate,  two members of the assembly to be appointed by the speaker
    31  of the assembly, [one member] two members of the senate to be  appointed
    32  by the minority leader of the senate and [one member] two members of the
    33  assembly  to  be  appointed  by the minority leader of the assembly. The
    34  temporary president of the senate and the speaker of the assembly  shall
    35  each  appoint  a  co-chairman from among the commission membership.  Any
    36  vacancies shall be filled in the same manner as  the  original  appoint-
    37  ment.    Such  appointees  shall serve at the pleasure of the respective
    38  legislative member making such appointment.
    39    § 4. Section 87 of the legislative law, as added by chapter 689 of the
    40  laws of 1978, is amended to read as follows:
    41    § 87. Powers and duties. 1. The commission shall  exercise  continuous
    42  oversight of the process of rule making and examine rules, as defined in
    43  subdivision  two  of section one hundred two of the state administrative
    44  procedure act, adopted or proposed by each agency with  respect  to  (i)
    45  statutory  authority,  (ii)  compliance  with  legislative intent, (iii)
    46  impact on the economy and on the government operations of the state  and
    47  its  local  governments,  and  (iv)  impact on affected parties; and, in
    48  furtherance of such duties, may examine other issues it deems  appropri-
    49  ate. For purpose of this article, the term agency shall mean any depart-
    50  ment, board, bureau, commission, division, office, council, committee or
    51  officer of the state or a public benefit corporation or public authority
    52  at least one of whose members is appointed by the governor.
    53    2. The commission shall review any legislation requiring a commission-
    54  er or agency as defined by subdivision one of section one hundred two of
    55  the  state  administrative procedure act, to promulgate any codes, rules
    56  and regulations necessary for the implementation  and  make  recommenda-

        A. 5898--A                         15
 
     1  tions  to  the  members  of the legislature. Such recommendations should
     2  include the commission's approval if the legislation is deemed necessary
     3  to protect the health and safety  of  the  public  or  the  commission's
     4  disapproval if such legislation is deemed detrimental to economic growth
     5  in  New  York state, or is not vital to protect the health and safety of
     6  the public.
     7    3. The commission shall review New York state laws that result in  the
     8  promulgation  of codes, rules or regulations by a commissioner or agency
     9  as defined by subdivision one of section one hundred two  of  the  state
    10  administrative procedure act, or any laws the commission deems a regula-
    11  tory  burden  on  local  governments, school districts or businesses and
    12  make recommendations to the members of the legislature. Such recommenda-
    13  tions should include the commission's request for the repeal of laws  it
    14  deems  increase  costs  for local governments, school districts or busi-
    15  nesses or are detrimental to economic growth in New York state,  or  are
    16  not vital to protect the health and safety of the public.
    17    4.  The  commission  may employ such staff and retain such consultants
    18  and expert services as may be necessary and fix their  compensation  and
    19  expenses  within  the  amounts  appropriated therefor. Employment by the
    20  commission shall be deemed to be employment by the legislature  for  all
    21  purposes.
    22    [3] 5.  The commission shall have the power, subject to the provisions
    23  of  section  seventy-three  of  the  civil rights law, to hold hearings,
    24  subpoena witnesses, administer oaths,  take  testimony  and  compel  the
    25  production of books, papers, documents and other evidence in furtherance
    26  of  its  duties;  provided, however, that no subpoena shall issue except
    27  upon the affirmative vote of a majority of the whole membership  of  the
    28  commission.  The commission may request and shall receive from all agen-
    29  cies such assistance and data as will enable it properly  to  consummate
    30  any such examination, and review.
    31    §  5.  Section 88 of the legislative law, as amended by chapter 850 of
    32  the laws of 1990, is amended to read as follows:
    33    § 88. Reports. The commission shall, [from  time  to  time]  annually,
    34  report  its  findings and recommendations to the governor, the temporary
    35  president of the senate and the speaker of the  assembly,  the  minority
    36  leader  of  the  senate, the minority leader of the assembly, and to the
    37  members of the legislature, and may at any time make recommendations  to
    38  the  division  of  regulatory  review  and economic growth and an agency
    39  based upon its review of that agency's rule making process,  or  any  of
    40  the agency's proposed, revised or adopted rules.
    41    §  6.  The  legislative law is amended by adding a new section 88-a to
    42  read as follows:
    43    § 88-a. Regulatory Wednesdays. 1. Every Wednesday, which is  a  sched-
    44  uled  session  day  for  the  legislature in every week beginning with a
    45  scheduled session day on Monday, shall be deemed  regulatory  Wednesday.
    46  The  commission  shall be required to meet on every regulatory Wednesday
    47  to perform its powers and duties pursuant  to  section  eighty-seven  of
    48  this article.
    49    2.  On  every regulatory Wednesday, the senate and assembly shall take
    50  up any bills on any order of third reading that are before each  respec-
    51  tive  house  for final disposition, that have gained the approval of the
    52  commission prior to taking up any other bill on any order of third read-
    53  ing, unless such action is waived, without debate, upon a majority  vote
    54  of the members present.
    55    § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
    56  sion,  section  or  part  of  this act shall be adjudged by any court of

        A. 5898--A                         16
 
     1  competent jurisdiction to be invalid, such judgment  shall  not  affect,
     2  impair,  or  invalidate  the remainder thereof, but shall be confined in
     3  its operation to the clause, sentence, paragraph,  subdivision,  section
     4  or part thereof directly involved in the controversy in which such judg-
     5  ment shall have been rendered. It is hereby declared to be the intent of
     6  the  legislature  that  this  act  would  have been enacted even if such
     7  invalid provisions had not been included herein.
     8    § 8. This act shall take effect on the one hundred twentieth day after
     9  it shall have become a law and shall apply to rules and revised rules to
    10  be submitted for publication in the state register  on  and  after  such
    11  date.
 
    12                                   PART H
 
    13    Section  1. The commissioner of the department of economic development
    14  shall develop and implement a "regulatory amnesty" period to  allow  for
    15  small  businesses  to  remedy rules or regulations violations before any
    16  violations or sanctions are levied. Such regulatory amnesty period  must
    17  be at least six months. If a small business remedies the violation with-
    18  in  the time period established by the commissioner, such business shall
    19  not be subjected to fines or penalties.
    20    § 2. This act shall take effect immediately.
 
    21                                   PART I
 
    22    Section 1. The legislative law is amended by adding a new section 51-a
    23  to read as follows:
    24    § 51-a. Moratorium on unfunded mandates. 1. Definitions.  As  used  in
    25  this section, the following terms shall have the following meanings:
    26    (a)  "Local  government"  means  a county, city, town, village, school
    27  district, or special district.
    28    (b) "Small business" means any business with  less  than  one  hundred
    29  employees.
    30    (c)  "Net  additional cost" means the cost or costs incurred or antic-
    31  ipated to be incurred within a one year period by a local government  in
    32  performing  or  administering  any  program,  project, or activity after
    33  subtracting therefrom any revenues received or receivable by such  local
    34  government  in relation to such program, project, or activity, including
    35  but not limited to: (i) fees charged to the recipients of such  program,
    36  project,  or  activity;  (ii)  state  or federal funds received for such
    37  program, project, or activity; and (iii) an offsetting savings resulting
    38  from the diminution or elimination of any  other  program,  project,  or
    39  activity  that  state  law  requires such local government to provide or
    40  undertake.
    41    (d) "Unfunded mandate" means: (i) any state law that requires a  local
    42  government  to provide or undertake any new program, project or activity
    43  that results in an annual net additional cost to any local government in
    44  excess of ten thousand dollars or an  aggregate  annual  net  additional
    45  cost  to all local governments within the state in excess of one million
    46  dollars; or (ii) any state law  that  requires  a  local  government  to
    47  provide  a  higher  level of service or funding for an existing program,
    48  project or activity that results in an annual net additional cost to any
    49  local government in excess of ten thousand dollars or an aggregate annu-
    50  al net additional cost to all local  governments  within  the  state  in
    51  excess  of  one  million dollars; or (iii) any state law that requires a
    52  local government to grant any new property tax exemption or that  broad-

        A. 5898--A                         17
 
     1  ens the eligibility or increases the dollar amount of any existing prop-
     2  erty  tax  exemption,  on  property  that otherwise would have generated
     3  revenue under the current property tax rate of such local government  in
     4  excess  of  ten thousand dollars in any local government or in excess of
     5  one million dollars statewide; or  (iv)  any  state  law  with  a  legal
     6  requirement that would otherwise likely have the effect of raising prop-
     7  erty  taxes in excess of ten thousand dollars in any local government or
     8  in excess of one million dollars statewide; or (v) any  state  law  that
     9  requires  a  small  business  to  undertake  any new program, project or
    10  activity that results in an annual net additional cost to the business.
    11    2.  Moratorium  on  unfunded  mandates.  Notwithstanding   any   other
    12  provision of law, no unfunded mandates shall be enacted.
    13    3.  Exemptions.  (a)  A  state law shall not be considered an unfunded
    14  mandate where such law: (i) is required by a court order or judgment; or
    15  (ii) is provided at the option of the local government under a law  that
    16  is  permissive  rather than mandatory; or (iii) results from the passage
    17  of a home rule message whereby a local government requests authority  to
    18  implement the program or service specified in the statute, and the stat-
    19  ute  imposes  costs  only  upon that local government which requests the
    20  authority to impose the program or service; or (iv) is required by stat-
    21  ute or executive order that implements a federal law or  regulation  and
    22  results from costs mandated by the federal government to be borne at the
    23  local  level,  unless  the  statute  or executive order results in costs
    24  which exceed the costs mandated by the federal  government;  or  (v)  is
    25  imposed  on  both  government and non-government entities in the same or
    26  substantially similar circumstances; or (vi) repeals or revises a  state
    27  law  to  ease an existing requirement that a local government provide or
    28  undertake a program, project, or activity, or reapportions the costs  of
    29  activities  between  local governments; or (vii) is necessary to protect
    30  against an immediate threat to public health or safety.
    31    (b) The effective date of any act establishing a mandate shall provide
    32  a reasonable time for the state and any local government to plan  imple-
    33  mentation  thereof  and  shall  be  consistent  with the availability of
    34  required funds.
    35    § 2. Section 51 of the legislative law, as added by chapter 985 of the
    36  laws of 1983, is amended to read as follows:
    37    § 51. Fiscal [impact] notes on bills affecting political subdivisions.
    38  1. For the purpose of this section,  the  term  "political  subdivision"
    39  means  any  county,  city,  town,  village,  special  district or school
    40  district.
    41    2. [The legislature shall by concurrent resolution of the  senate  and
    42  assembly prescribe rules requiring fiscal notes to accompany, on a sepa-
    43  rate form, bills and amendments to bills, except as otherwise prescribed
    44  by  such rules, which] A bill that would substantially affect the reven-
    45  ues or expenses, or both, of any political subdivision shall  contain  a
    46  fiscal  note stating the estimated annual cost to the political subdivi-
    47  sion affected and the source of such estimate.
    48    3. Fiscal notes shall not, however, be required for bills: (a) subject
    49  to the provisions of section fifty of this chapter, or  (b)  accompanied
    50  by  special  home  rule requests submitted by political subdivisions, or
    51  (c) which provide discretionary authority to political subdivisions,  or
    52  (d) submitted pursuant to section twenty-four of the state finance law.
    53    4. If the estimate or estimates contained in a fiscal note are inaccu-
    54  rate,  such  inaccuracies  shall  not  affect, impair or invalidate such
    55  bill.

        A. 5898--A                         18
 
     1    § 3. This act shall take effect immediately, provided,  however,  that
     2  section  one  of  this  act  shall only apply to laws enacted after such
     3  effective date.
     4    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
     5  sion,  section  or  part  of  this act shall be adjudged by any court of
     6  competent jurisdiction to be invalid, such judgement shall  not  affect,
     7  impair,  or  invalidate  the remainder thereof, but shall be confined in
     8  its operation to the clause, sentence, paragraph,  subdivision,  section
     9  or part thereof directly involved in the controversy in which such judg-
    10  ment shall have been rendered. It is hereby declared to be the intent of
    11  the  legislature  that  this  act  would  have been enacted even if such
    12  invalid provisions had not been included herein.
    13    § 4. This act shall take effect immediately  provided,  however,  that
    14  the  applicable effective date of Parts A through I of this act shall be
    15  as specifically set forth in the last section of such Parts.
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