Image credit: New York City Council.
On October 10, 2024, Councilmember Mercedes Narcisse introduced Int. 1082, legislation mandating the NYC Commissioner of Small Business Services to conduct a study and report on the fees and costs required to start and maintain small businesses in New York City – with particular focus on certified minority- or women-owned businesses (M/WBEs). The bill defines small business to cover those that meet the size standards under the code of federal regulations, are not a franchise owned by a franchisee under the general business law, and occupy commercial space in New York City.
The bill requires the study to identify and analyze regulatory compliance fees and costs for small businesses, including at minimum: certification, permitting, and licensing fees; entity formation fees; relevant taxes; the costs of providing insurance benefits to employees; and waste removal costs. The study must also identity and analyze attorney fees, and any fees and costs that are unique to small businesses that are MWBEs. Additionally, the study requires the small business services commissioner to work in coordination with the commissioner of transportation to identify and analyze any fees and costs that are unique to small businesses located in areas underserved by public transportation.
If approved, the law will take effect immediately and the commissioner will have 180 days to submit a report of the study’s findings to the mayor and speaker of the Council, and post the report on the Department of Small Business Services’ website. The report must include recommendations for legislation or regulatory actions to lower or offset the fees and costs identified in the study, including specific recommendations for lowering or offsetting such fees and costs that are unique to small businesses that are also MWBEs or located in neighborhoods underserved by public transit.
Speaking on the introduction of Intro. 1082 during the city council’s stated meeting last week, Councilmember Narcisse explained: “This bill will study and report on this, the costs required to start and maintain a small business, with recommendation on how we can reduce these barriers. Small businesses are the backbone of the community – that’s what we said, this is rhetoric. But the black and brown communities are losing their business left and right, and we must ensure that entrepreneurs are given the support [that they] need and deserve [for] success, especially in today’s challenging economic environment [which] is not really welcoming those that have the big dream.”[1]
As of this writing, the bill has been referred to the Committee on Small Business.
By: Maya Moskowitz (Maya is a New York Law School student, Class of 2025.)
[1] City Council Stated Meeting, Dated October 10, 2024; https://citymeetings.nyc/city-council/2024-10-10-0130-pm-stated-meeting/chapter/council-member-mercedes-narcisse-addresses-maternal-health-legislation-and-introduces-a-small-business-bill