New York City agencies will need to review existing business regulations and ensure local businesses face fewer fines and penalties, Mayor Eric Adams announced Sunday. This is because he announced reforms to 118 city regulations that derive from the executive order. Small Business Forwardsigned in January, and which seeks to reduce the burdens and bureaucracies of small businesses in the city.
The reforms include the repeal of 30 provisions, the reduction of civil penalties associated with 49 provisions, and amendments to 39 provisions to include a warning or cure period for the first time or to extend an existing cure period.
The reforms are expected to be implemented by December 31, 2022 and are projected to save New York City small businesses approximately $8.9 million annually. Once implemented, these efforts will represent the most comprehensive and successful review of small business regulations in New York City history.
Execute Small Business Forward it was a critical first step in reviewing how the city engages with small businesses and ensuring a more seamless and supportive interaction on all fronts.
The Small Business Advisory Commission, which was established by Executive Order 15 signed earlier this month, will partner with the city to continue this crucial work of cutting red tape, reducing fines, and introducing more cure periods and first-time warnings. time.
Meanwhile, the interagency working group that conducted EO2 will begin its work on simplifying and accelerating business processes and openings to launch the city’s one-stop online business portal.
Examples of the reforms being announced and their corresponding agencies include:
- Introduce a cure period when a business does not prominently and conspicuously display its price list: New York City Department of Consumer and Worker Protection (DCWP).
- Introduction of a universal 60-day cure period on all Class 2 “Major Violations” and Class 3 “Minor Violations” related to small businesses: New York City Department of Buildings (DOB).
- Elimination of Penalty for Failing to Maintain Required Containers for Disposal of Compostable Straws in Restaurants: New York City Department of Sanitation (DSNY).
- Increasing time for restaurants to address maintenance and replacement issues with grease interceptors: New York City Department of Environmental Protection (DEP).
- Reducing Maximum Fines for Safe Food Time/Temperature Control Violations: New York City Department of Health and Mental Hygiene (DOHMH).
- Elimination of violations for picture tubes (old televisions with cathode ray tubes) sold or offered for sale without the proper label – DCWP.
- Elimination of violation for failure to conspicuously post electrical work permit while work is in progress: date of birth; among others.
“From the earliest days of my administration, I made it clear that the city would be a partner with the small business community, which is the backbone of our economy,” said Mayor Adams. “The reforms we’re outlining are a direct result of us listening to nearly 1,000 small business owners and putting an action plan in place to help meet their needs. Today, we’re cutting red tape, reducing burdensome regulations and saving our small businesses approximately $8.9 million, fueling our recovery and paving the way for an equitable five-county economy.”
“Small Business Forward is bringing common sense back to New York City government by getting rid of outdated regulations and overly punitive violations,” said DOB Commissioner Eric Ulrich. “Mayor Adams understands that these stores and restaurants are the pillars of his communities and I am proud to be a part of this commitment to support our small businesses. By giving New Yorkers the opportunity to correct more violations without incurring additional penalties, we are sending a strong message that New York is open for business again.”
On January 4, 2022, Mayor Adams signed Executive Order 2 requesting the DOB, DEP, DSNY, Fire Department of New York (FDNY), DCWP, and DOHMH to review business regulations, with the goal of reduce citation schedules and allow for cure periods or warnings for first-time violations.
Small Business Forward required the six regulatory agencies to assess the 25 provisions of the law or the rules that are most frequently applied through the issuance of notices of violations. In total, 227 violations were assessed by the six participating agencies. Besides, Small Business Forward required agencies to review the systems used to enforce the provisions, including inspector training, administration, and the process for tracking warnings and correction periods.
Feedback on the City’s violations and enforcement practices was solicited from more than 980 small business owners through an online survey. Other stakeholders provided feedback through virtual listening sessions.
The full report is available online.