Bill Text: NY S03591 | 2015-2016 | General Assembly | Amended


Bill Title: Prohibits lessors or agents thereof from assessing a lessee any fee for legal services in connection with any operation or rental of a residential unit unless the lessor has the legal authority to do so.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2016-01-06 - REFERRED TO JUDICIARY [S03591 Detail]

Download: New_York-2015-S03591-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        3591--A
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 12, 2015
                                      ___________
       Introduced  by Sens. ESPAILLAT, DIAZ, HASSELL-THOMPSON, HOYLMAN, PARKER,
         PERKINS, SERRANO -- read twice and ordered printed, and  when  printed
         to be committed to the Committee on Judiciary -- committee discharged,
         bill  amended,  ordered  reprinted  as amended and recommitted to said
         committee
       AN ACT to amend the administrative code of the city  of  New  York,  the
         emergency tenant protection act of nineteen seventy-four, the emergen-
         cy  housing rent control law and the real property law, in relation to
         prohibiting charges for legal fees
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. The administrative code of the city of New York is amended
    2  by adding a new section 26-416 to read as follows:
    3    S 26-416 UNAUTHORIZED LEGAL FEES.  A LESSOR OR AGENT THEREOF SHALL  BE
    4  PROHIBITED  FROM  ASSESSING A LESSEE ANY FEE, SURCHARGE OR OTHER CHARGES
    5  FOR LEGAL SERVICES IN CONNECTION WITH THE OPERATION OR RENTAL OF A RESI-
    6  DENTIAL UNIT UNLESS THE LESSOR HAS THE LEGAL AUTHORITY TO DO SO PURSUANT
    7  TO A COURT ORDER. ANY AGREEMENT OR ASSESSMENT TO THE CONTRARY  SHALL  BE
    8  VOID AS CONTRARY TO PUBLIC POLICY.
    9    S  2.  Section  6  of  section  4  of chapter 576 of the laws of 1974,
   10  constituting the emergency tenant protection act  of  nineteen  seventy-
   11  four, is amended by adding a new subdivision f-1 to read as follows:
   12    F-1.  A  LESSOR  OR AGENT THEREOF SHALL BE PROHIBITED FROM ASSESSING A
   13  LESSEE ANY FEE,  SURCHARGE  OR  OTHER  CHARGES  FOR  LEGAL  SERVICES  IN
   14  CONNECTION WITH THE OPERATION OR RENTAL OF A RESIDENTIAL UNIT UNLESS THE
   15  LESSOR  HAS  THE LEGAL AUTHORITY TO DO SO PURSUANT TO A COURT ORDER. ANY
   16  AGREEMENT OR ASSESSMENT TO THE CONTRARY SHALL BE  VOID  AS  CONTRARY  TO
   17  PUBLIC POLICY.
   18    S 3. Section 26-512 of the administrative code of the city of New York
   19  is amended by adding a new subdivision g to read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01832-03-5
       S. 3591--A                          2
    1    G.  A  LESSOR  OR  AGENT  THEREOF SHALL BE PROHIBITED FROM ASSESSING A
    2  LESSEE ANY FEE,  SURCHARGE  OR  OTHER  CHARGES  FOR  LEGAL  SERVICES  IN
    3  CONNECTION WITH THE OPERATION OR RENTAL OF A RESIDENTIAL UNIT UNLESS THE
    4  LESSOR  HAS  THE LEGAL AUTHORITY TO DO SO PURSUANT TO A COURT ORDER. ANY
    5  AGREEMENT  OR  ASSESSMENT  TO  THE CONTRARY SHALL BE VOID AS CONTRARY TO
    6  PUBLIC POLICY.
    7    S 4. Subdivision 4 of section 4 of chapter 274 of the  laws  of  1946,
    8  constituting  the  emergency  housing  rent  control  law, is amended by
    9  adding a new paragraph (f) to read as follows:
   10    (F) A LESSOR OR AGENT THEREOF SHALL BE  PROHIBITED  FROM  ASSESSING  A
   11  LESSEE  ANY  FEE,  SURCHARGE  OR  OTHER  CHARGES  FOR  LEGAL SERVICES IN
   12  CONNECTION WITH THE OPERATION OR RENTAL OF A RESIDENTIAL UNIT UNLESS THE
   13  LESSOR HAS THE LEGAL AUTHORITY TO DO SO PURSUANT TO A COURT  ORDER.  ANY
   14  AGREEMENT  OR  ASSESSMENT  TO  THE CONTRARY SHALL BE VOID AS CONTRARY TO
   15  PUBLIC POLICY.
   16    S 5. The real property law is amended by adding a new section 234-a to
   17  read as follows:
   18    S 234-A. UNAUTHORIZED LEGAL FEES. A LESSOR OR AGENT THEREOF  SHALL  BE
   19  PROHIBITED  FROM  ASSESSING A LESSEE ANY FEE, SURCHARGE OR OTHER CHARGES
   20  FOR LEGAL SERVICES IN CONNECTION WITH THE OPERATION OR RENTAL OF A RESI-
   21  DENTIAL UNIT UNLESS THE LESSOR HAS THE LEGAL AUTHORITY TO DO SO PURSUANT
   22  TO A COURT ORDER. ANY AGREEMENT OR ASSESSMENT TO THE CONTRARY  SHALL  BE
   23  VOID AS CONTRARY TO PUBLIC POLICY.
   24    S  6.  This  act  shall  take  effect  immediately; provided that: (a)
   25  section 26-416 of the city rent  and  rehabilitation  law  as  added  by
   26  section  one  of  this act shall remain in full force and effect only as
   27  long as the public emergency requiring the  regulation  and  control  of
   28  residential  rents and evictions continues, as provided in subdivision 3
   29  of section 1 of the local emergency housing rent control act;
   30    (b) the amendments to section 4 of chapter 576 of  the  laws  of  1974
   31  constituting  the  emergency  tenant protection act of nineteen seventy-
   32  four made by section two of this act shall expire on the  same  date  as
   33  such  act  expires  and  shall  not affect the expiration of such act as
   34  provided in section 17 of chapter 576 of the laws of 1974;
   35    (c) the amendments to section 26-512 of chapter 4 of title 26  of  the
   36  administrative  code  of  the city of New York, made by section three of
   37  this act shall expire on the same date as such law expires and shall not
   38  affect the expiration of such law as provided under  section  26-520  of
   39  such law; and
   40    (d)  the amendments to section 4 of the emergency housing rent control
   41  law made by section four of this act shall expire on the  same  date  as
   42  such  law  expires  and  shall  not affect the expiration of such law as
   43  provided in subdivision 2 of section 1 of chapter 274  of  the  laws  of
   44  1946.
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