Bill Text: NY A10457 | 2019-2020 | General Assembly | Introduced


Bill Title: Prohibits the enforcement of personal liability provisions in commercial leases or rental agreements involving a COVID-19 impacted tenant where the default or other trigger event happened during the COVID-19 state of emergency and considers threatening to or attempting to enforce such a provision to be a form of harassment.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2020-05-18 - referred to judiciary [A10457 Detail]

Download: New_York-2019-A10457-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10457

                   IN ASSEMBLY

                                      May 18, 2020
                                       ___________

        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Carroll) --
          read once and referred to the Committee on Judiciary

        AN ACT to amend the real property law, in relation  to  prohibiting  the
          enforcement  of  certain  personal  liability provisions in commercial
          leases or rental agreements involving a COVID-19 impacted  tenant  and
          considering  threatening  to or attempting to enforce such a provision
          to be a form of harassment

          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  238-b to read as follows:
     3    § 238-b. Personal liability provisions in commercial  leases;  harass-
     4  ment.
     5    1.  Definitions. For the purposes of this section, the following terms
     6  shall have the following meanings:
     7    (a) "commercial tenant" means a person or entity lawfully occupying  a
     8  covered property pursuant to a lease or other rental agreement.
     9    (b)  "covered  property"  means any building or portion of a building:
    10  (i) that is lawfully used for buying,  selling  or  otherwise  providing
    11  goods  or  services,  or  for other lawful business, commercial, profes-
    12  sional services or  manufacturing  activities;  and  (ii)  for  which  a
    13  certificate of occupancy authorizing residential use of such building or
    14  such portion of a building has not been issued.
    15    (c) "COVID-19" means the 2019 novel coronavirus or 2019-nCoV.
    16    (d) "COVID-19 period" means March seventh, two thousand twenty through
    17  the  later  of:  (i) the end of the first month that commences after the
    18  expiration of the moratorium on enforcement of evictions of  residential
    19  and  commercial  tenants  set  forth in executive order number 202.8, as
    20  issued by the governor on March twentieth, two thousand twenty and ther-
    21  eafter extended; (ii) the end of the first month  that  commences  after
    22  the  expiration  of  the moratorium on certain residential evictions set
    23  forth in section 4024 of the coronavirus aid, relief, and economic secu-
    24  rity, or CARES act and any subsequent amendments  to  such  section;  or
    25  (iii) September thirtieth, two thousand twenty.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16332-02-0

        A. 10457                            2

     1    (e) "COVID-19 state disaster emergency" means the state disaster emer-
     2  gency declared by the governor in executive order number two hundred two
     3  issued on March seventh, two thousand twenty.
     4    (f) "impacted by COVID-19" means:
     5    (i) with respect to an individual, that the individual experienced one
     6  or more of the following situations:
     7    (A)  the  individual  was  diagnosed  with COVID-19 or is experiencing
     8  symptoms of COVID-19 and seeking a medical diagnosis;
     9    (B) a member of the individual's household was diagnosed  with  COVID-
    10  19;
    11    (C)  the individual was providing care for a family member or a member
    12  of the individual's household who was diagnosed with COVID-19;
    13    (D) a member of the individual's household for  whom  the  person  had
    14  primary caregiving responsibility was unable to attend school or another
    15  facility that was closed as a direct result of the COVID-19 state disas-
    16  ter  emergency  and  such  school  or facility care was required for the
    17  person to work;
    18    (E) the individual was unable to reach their place of business because
    19  of a quarantine imposed as a direct result of the COVID-19 state  disas-
    20  ter emergency;
    21    (F) the individual was unable to reach their place of business because
    22  the person had been advised by a health care provider to self-quarantine
    23  due to concerns related to COVID-19;
    24    (G)  the  individual  became a major source of income or major support
    25  for a household because the head of  the  household  died  as  a  direct
    26  result of COVID-19; or
    27    (H)  the individual's business closed as a direct result of the COVID-
    28  19 state disaster emergency.
    29    (ii) with respect to a business, that:
    30    (A) the business was subject  to  seating,  occupancy  or  on-premises
    31  service  limitations pursuant to an executive order issued by the gover-
    32  nor or mayor during the COVID-19 period; or
    33    (B) the revenues of the business during any three-month period  within
    34  the COVID-19 period were less than fifty percent of its revenues for the
    35  same  period  in two thousand nineteen or less than fifty percent of its
    36  aggregate revenues for the months of  December  two  thousand  nineteen,
    37  January two thousand twenty, and February two thousand twenty.
    38    (g)  "landlord"  means  an  owner  of covered property or such owner's
    39  agent.
    40    (h) "personal liability provision" means, with respect to a commercial
    41  lease or other rental agreement involving real property and to  which  a
    42  business is a party as tenant, a term that provides for an individual to
    43  become  wholly  or partially personally liable for an obligation of such
    44  business arising under such lease or agreement upon the occurrence of  a
    45  default or other event.
    46    2. Personal liability provisions. No personal liability provision of a
    47  commercial  lease  or other rental agreement involving real property and
    48  to which a business impacted by COVID-19 is a party as tenant  shall  be
    49  enforced against an individual where the default or other event allowing
    50  for such enforcement occurs during the COVID-19 period.
    51    3.  Commercial  tenant  harassment. (a) A landlord shall not engage in
    52  commercial tenant harassment. Commercial tenant harassment shall be  any
    53  act or omission by or on behalf of a landlord that: (i) would reasonably
    54  cause a commercial tenant to vacate covered property, or to surrender or
    55  waive any rights under a lease or other rental agreement or under appli-
    56  cable  law  in  relation  to  such  covered  property; and (ii) includes

        A. 10457                            3

     1  threatening to or implementing a personal liability  provision  that  is
     2  not enforceable pursuant to this section.
     3    (b)  A  landlord's  lawful termination of a tenancy, lawful refusal to
     4  renew or extend a lease or other rental agreement, or lawful reentry and
     5  repossession of the covered property  shall  not  constitute  commercial
     6  tenant harassment for purposes of this subdivision.
     7    4.  Private  right  of  action.  (a)  A commercial tenant may bring an
     8  action in any court of competent jurisdiction for a claim of  commercial
     9  tenant  harassment.    If a court of competent jurisdiction finds that a
    10  landlord has engaged in commercial tenant harassment in relation to such
    11  commercial tenant, the court shall impose a civil penalty in  an  amount
    12  not  less  than  ten  thousand  dollars and not more than fifty thousand
    13  dollars for each covered property in which such  commercial  tenant  has
    14  been the subject of commercial tenant harassment and may further:
    15    (i)  issue  an order restraining the landlord from engaging in commer-
    16  cial tenant harassment and directing the  landlord  to  ensure  that  no
    17  further violation occurs; and/or
    18    (ii) award such other relief as the court deems appropriate, including
    19  but  not  limited  to  injunctive relief, equitable relief, compensatory
    20  damages, punitive damages  and  reasonable  attorneys'  fees  and  court
    21  costs.
    22    (b)  The  commercial tenant shall not be relieved of the obligation to
    23  pay any rent for which the commercial tenant is  otherwise  liable.  Any
    24  monetary remedy awarded to a commercial tenant pursuant to this subdivi-
    25  sion  shall be reduced by any amount of delinquent rent or other sum for
    26  which a court finds such commercial tenant is liable to the landlord.
    27    (c) This section does not limit or abrogate  any  claim  or  cause  of
    28  action  a  person  has under common law or by statute. The provisions of
    29  this section are in addition to any such common law and statutory  reme-
    30  dies.
    31    (d)  Nothing  contained in this section shall be construed as creating
    32  any cause of action for a commercial tenant's invitee.
    33    § 2. This act shall take effect immediately.
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