Bill Text: NY S08351 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides that no personal liability provision of a commercial lease or other rental agreement involving real property and to which a business impacted by COVID-19 is a party as tenant may be enforced against an individual where the default or other event allowing for such enforcement occurs during the COVID-19 period.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-05-19 - REFERRED TO JUDICIARY [S08351 Detail]
Download: New_York-2019-S08351-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8351 IN SENATE May 19, 2020 ___________ Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the general obligations law, in relation to personal liability provisions in commercial leases during the COVID-19 period The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general obligations law is amended by adding a new 2 section 5-338 to read as follows: 3 § 5-338. Personal liability provisions in commercial leases during the 4 COVID-19 period. 1. Definitions. For the purposes of this section, the 5 following terms have the following meanings: 6 (a) "COVID-19" means the two thousand nineteen novel coronavirus or 7 2019-nCoV. 8 (b) "COVID-19 period" means March seventh, two thousand twenty through 9 the later of: 10 (i) the end of the first month that commences after the expiration of 11 the moratorium on enforcement of evictions of residential and commercial 12 tenants set forth in executive order number 202.8, as issued by the 13 governor on March twentieth, two thousand twenty and thereafter 14 extended; 15 (ii) September thirtieth, two thousand twenty, inclusive. 16 (c) "Impacted by COVID-19" means that: 17 (i) the business was subject to seating, occupancy or on-premises 18 service limitations pursuant to an executive order issued by the gover- 19 nor during the COVID-19 period; or 20 (ii) the revenues of the business during any three-month period within 21 the COVID-19 period were less than fifty percent of its revenues for the 22 same period in two thousand nineteen or less than fifty percent of its 23 aggregate revenues for the months of December two thousand nineteen, 24 January two thousand twenty and February two thousand twenty. 25 (d) "Personal liability provision" means, with respect to a commercial 26 lease or other rental agreement involving real property and to which a 27 business is a party as tenant, a term that provides for an individual to 28 become wholly or partially personally liable for an obligation of such EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16322-02-0S. 8351 2 1 business arising under such lease or agreement upon the occurrence of a 2 default or other event. 3 2. No personal liability provision of a commercial lease or other 4 rental agreement involving real property and to which a business 5 impacted by COVID-19 is a party as tenant may be enforced against an 6 individual where the default or other event allowing for such enforce- 7 ment occurs during the COVID-19 period. 8 § 2. This act shall take effect immediately.