Sen. Farley Reports Senate passes a package of regulatory relief measures

State Senator Hugh T. Farley (R, C, I - Schenectady) announced that he and his colleagues in the New York State Senate this week passed a package of legislation to make it less expensive and more efficient to do business in New York. The measures include those that reverse a costly regulatory change that is driving up health care expenses for some employers and employees, require the state to pay businesses in a timely manner, as well as review and reduce outdated regulations that negatively affect New York businesses.

Bill S7104 helps businesses facing significantly higher health care costs as a result of state regulations that took effect earlier this year by redefining what constitutes a “small group employer”.

A small business has historically been defined in New York as an employer with 50 or fewer employees, but the federal Affordable Care Act (ACA) defined “small group” employers as those having 100 or fewer employees. Since New York took the required action to conform its definition of small business with the ACA’s larger number, businesses with 51-100 employees have experienced substantial increases in health care premiums or subscriber costs; higher deductibles and co-pays; fewer available policy choices from insurance carriers or health plans; and narrower in- and out-of-network provider panels.

This measure would prevent these problems from affecting these businesses by reverting the definition of “small group” in New York’s insurance law back to 1-50 employees. While federal legislation has been enacted allowing states to make such a change in implementing the ACA, each state individually must do so. Only New York, California, Colorado, and Vermont have not yet adopted the change.

The Senate today gave final passage to legislation (S6387B) that would require state agencies to pay small businesses within 15 days of receipt of an invoice and would allow state agencies one year to implement these changes to their prompt payment system.

Bill S401A would establish a Task Force for the Review of the State Administrative Procedure Act (SAPA) to help reduce the state’s regulatory burden on businesses. The Task Force would conduct a comprehensive review of SAPA by examining, evaluating, and making recommendations improving the efficiency of the rulemaking process, as well as ensuring the establishment of consistent, uniform rules.

Bill S406A would regulate businesses by reducing duplicative rules and keeps them up-to-date. It would broaden considerations required during the state’s review of existing administrative rules and during the creation of new rules. This measure would also amend SAPA to require a five-year review of all existing agency rules – not just the rules promulgated since 1997, as in currently required. As part of the five-year review, this legislation requires an agency to provide additional information regarding the need for a rule.

A bill (S4033) would provide a way for outside parties like businesses to seek a delay in the effective date of proposed agency rules if a flaw is discovered that could negatively impact them. As long as two-thirds of the Administrative Regulations Review Commission approves, a delay of 90 days would give parties a chance to discuss alternatives and correct matters.

S4328A would establish the Small Business Negotiated Rule Making Act of 2016 to create negotiated rulemaking in order to provide additional opportunities for small businesses and the public to directly participate in the development of proposed agency regulations.

The bills have been sent to the Assembly, except (S6387B), which will be sent to the Governor.