Chat Live
By Douglas J. Rose
New York regulators are notorious for their unforgiving approach toward businesses that have been found to have committed minor or technical violations. However, a new law could have agencies showing a little more mercy and granting small businesses time to fix non-compliance problems before imposing penalties.
On Sept. 23, 2011 Gov. Andrew Cuomo signed legislation into law (Ch. 524, L. 2011) requiring agencies to consider including cure periods or any “other opportunity for ameliorative action” into new rules that establish or modify violations or penalties. Businesses can avoid penalties if they manage to resolve non-compliance problems during the cure period.
Under the law, which took effect Oct. 1, 2011 agencies must consider including cure period provisions in the regulatory flexibility analyses they are required to develop for each new rule that could have adverse economic impacts on small businesses and local governments. The law, however, does not mean small businesses will not be saved from the automatic imposition of penalties for all violations. Agencies must provide an explanation in their regulatory flexibility analysis why no cure period provisions were included in a new rule. According to the bill’s sponsor memo, the law targets “low-risk violations”.
During the first two months of the law’s effective period, no agencies proposed cure periods for new rules, according to a review of State Register postings. In an emergency rule concerning the sanitary conditions of shellfish, the Department of Environmental Conservation said no cure period was included because of the “potential adverse impact…on the health of shellfish consumers.”
Minor and technical violations can often be very costly for small businesses. It is crucial for Capital Region business owners to immediately consult with a business law attorney or corporate counsel. A business lawyer can challenge an agency’s charges and attempt to get them withdrawn or to get penalties reduced. For violations with cure periods, a small business lawyer could help ensure non-compliance issues are resolved in a timely fashion. Tully Rinckey PLLC’s corporate and business law attorneys in Albany, N.Y. can assist businesses throughout New York’s Capital Region, including Albany, Troy, Schenectady, and Saratoga Springs.
Douglas James Rose is a partner at Tully Rinckey PLLC who concentrates his practice on corporate and commercial law, civil litigation, bankruptcy law, real estate law. He can be contacted at drose@1888Law4Life.com. To schedule a meeting with one of Tully Rinckey PLLC’s civil litigation attorneys in Albany, N.Y. call 1-888-LAW-4-LIFE.
