Legislators Believe One Word Shouldn’t Cost Businesses $1,000

Two New York State legislators recently introduced bills that would ease regulations for small business owners by allowing them a certain amount of time to fix any violations they may have committed before being automatically fined. The Albany Business Review reported that corresponding bills sponsored by New York State Assemblyman John McDonough and State Senator Fred Akshar have passed in both chambers of the Legislature. The legislation is now awaiting Governor Cuomo’s signature.

The legislation, if signed into law, would allow New York State businesses with 100 employees or less that commit a regulatory infraction for the first time to be issued a warning rather than a fine. The only condition is that the infraction does not endanger the public. The bill has special meaning for McDonough, who operates a pharmacy in Cohoes.

Brett Baxt, president of Commercial and Industrial Real Estate Brokers Inc., told the Review he supports the legislation. As someone who works in the real estate business, he knows something about the cost of doing business in New York State: if someone has on their business card “real estate broker” instead of “licensed real estate broker,” that person would be fined $1,000 in violation of New York State Department of State advertising law.

McDonald told the publication the current law, with respect to the real estate broker example, is really “a gotcha piece of legislation” which only serves as “a revenue generator for the state of New York.”

If you are a small business owner and having a difficult time navigating the regulatory maze and attempting to stay in compliance, contact the business law attorneys at Wingate, Kearney & Cullen LLP. For a free consultation or more information, call (718) 852-5900.