Bill Text: NY S05144 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 5-0)

Status: (Engrossed - Dead) 2022-01-05 - REFERRED TO JUDICIARY [S05144 Detail]

Download: New_York-2021-S05144-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         5144--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 25, 2021
                                       ___________

        Introduced  by  Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- 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 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.  1.    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 fees and charges relating to
    10  routine building maintenance owed by the tenant  under  such  agreement,
    11  shall not be enforceable against such natural persons for the period set
    12  forth in subdivision two of this section if the conditions of paragraphs
    13  (a) and (b) of this subdivision are satisfied:
    14    (a) The tenant was:
    15    (i) required to cease serving patrons food or beverage for on-premises
    16  consumption  or  to  cease  operation under executive order number 202.3
    17  issued by the governor on March sixteenth, two thousand twenty;
    18    (ii) a non-essential business subject to in-person  limitations  under
    19  guidance issued by the New York state department of economic development
    20  pursuant to executive order number 202.6 issued by the governor on March
    21  eighteenth, two thousand twenty; or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09802-04-1
        S. 5144--A                          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 through the expiration of
     7  ninety days after the COVID-19 declared disaster emergency has ended.
     8    2. An agreement made unenforceable by subdivision one of this  section
     9  shall not be enforceable against such natural persons at any point.
    10    3.  An  attempt to enforce a personal liability provision that a land-
    11  lord knows or reasonably should know is not enforceable pursuant to this
    12  section shall be considered an act of commercial tenant harassment.
    13    § 2. This act shall take effect immediately.