Governor Cuomo has signed legislation that will help ease burdens on small businesses by implementing a “cure period" in which to correct minor regulatory violations.
The cure period is granted upon a first-time violation of a state agency's rules or regulations related to paperwork submitted or actions and omissions that are “de minimus". A regulatory agency must provide a small business (defined as a New York resident business with less than 100 employees that is not dominant in its field) no less than 90 days to remedy the violation. If the violation is corrected during the cure period, no penalties are issued.
The cure period will not apply to violations that:
- resulted in a natural resource damage claim;
- presented an imminent or substantial thread to public safety, health, or the environment;
- are a violation of the human or civil rights laws;
- result in a loss of employee wages or benefits;
- interfere with any remedy, review, or resolution of harassment or discrimination claims
- are willful;
- involve tax fraud;
- violate requirements related to federal funding to the state
- relate to state funding or procurement
- are similar to past violations
- are a penal law violation
- relate to a material portion of the business
One area where this legislation will be immediately beneficial to independent agents and brokers is the Cybersecurity Regulation, which requires the filing of notices of exemption and annual filing of certificates of compliance.
Big I NY joined a broad-based coalition of small business interests in calling for passage of this legislation, and member agents sent over 100 emails of support to the Governor in the weeks before it was signed. We thank the bill's sponsors, Senator Anna Kaplan and Assemblyman John McDonald, and Governor Cuomo for enacting this common-sense regulatory reform.