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Legislative Memo

Ken Pokalsky
Director of Government Affairs
T 518.465.7517 x205
www.bcnys.org

BILL:

A.7061-A (Christensen) / S.5627 (Flanagan)

  Support

SUBJECT:

Installment Payment Plans for Small Businesses

 

A.7061-A (Christensen) / S.5627 (Flanagan)

DATE:

June 15, 2005

 

The Business Council of New York State, Inc., whose membership includes large and small
companies, chambers of commerce, and associations strongly support the above captioned
legislation.

This legislation provides for installment payment plans for small businesses on fees and civil
penalties owed to the state. Thus, alleviating the burden a financially pressed small business has
with payment of one large fine. Most often, agency fines are issued to small businesses requiring
the amount be paid in one lump sum payment. This requirement can cause profound hardship for
small businesses to operate or worse yet, force some businesses to close.

This bill would allow the payment of penalties of and exceeding $1000, to be paid in four quarterly
installments with added interest. If the fine is exceedingly large or if the business' ability to pay
were in question, the state would be allowed to require the posting of a surety bond. The
proposed legislation benefits all parties involved by allowing the small business to continue to
operate while making payments on their fine and supplying the agencies with assurance that the
matter will be resolved. In general, this bill would provide a measure of financial flexibility that
New York's small business owners need.

For all the above stated reasons, The Business Council supports A.7061-A/S.5627 and strongly
recommends its adoption.