Bill Text: NY A06539 | 2021-2022 | General Assembly | Amended

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Bill Title: Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2022-01-05 - referred to judiciary [A06539 Detail]

Download: New_York-2021-A06539-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         6539--B

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                     March 19, 2021
                                       ___________

        Introduced  by  M.  of A. KELLES, GALLAGHER, EPSTEIN, MITAYNES, DICKENS,
          ENGLEBRIGHT, JACKSON, SILLITTI, COLTON, SIMON, J. RIVERA, GONZALEZ-RO-
          JAS, OTIS -- read once and referred to the Committee on  Judiciary  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee -- again reported  from  said  committee
          with  amendments, ordered reprinted as amended and recommitted to said
          committee

        AN ACT to amend the real property law, in relation to personal liability
          provisions in certain commercial leases

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  The  real property law is amended by adding a new section
     2  235-i to read as follows:
     3    § 235-i. Personal  liability  provisions  in  commercial  leases.    A
     4  provision in a commercial lease or other rental agreement involving real
     5  property  located  within  New  York state that provides for one or more
     6  natural persons who are not the tenant under such agreement  to  become,
     7  upon  the  occurrence  of  a default or other event, wholly or partially
     8  personally liable for payment of rent, utility expenses, or  taxes  owed
     9  by  the  tenant  under  such  agreement,  or  any other fees, charges or
    10  payments owed by the tenant under such agreement, shall not be enforcea-
    11  ble against such natural persons at any point if:
    12    (a) The tenant was:
    13    (i) required to cease serving patrons food or beverage for on-premises
    14  consumption or to cease operation under  executive  order  number  202.3
    15  issued by the governor on March sixteenth, two thousand twenty;
    16    (ii)  a  non-essential business subject to in-person limitations under
    17  guidance issued by the New York state department of economic development
    18  pursuant to executive order number 202.6 issued by the governor on March
    19  eighteenth, two thousand twenty; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09802-07-1
        A. 6539--B                          2

     1    (iii) required to close to members of the public under executive order
     2  number 202.7 issued by the governor on March  nineteenth,  two  thousand
     3  twenty; and
     4    (b)  The default or other event causing such natural persons to become
     5  wholly or partially  personally  liable  for  such  obligation  occurred
     6  between  March seventh, two thousand twenty and August thirty-first, two
     7  thousand twenty-one.
     8    § 2. This act shall take effect immediately.