senate Bill S514

2013-2014 Legislative Session

Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid on a security deposit or advance

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to judiciary
Jan 09, 2013 referred to judiciary

Co-Sponsors

S514 - Bill Details

See Assembly Version of this Bill:
A7034
Current Committee:
Law Section:
General Obligations Law
Laws Affected:
Amd ยง7-103, Gen Ob L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S1281
2009-2010: S3338

S514 - Bill Texts

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Prohibits the collection of administration expenses by a landlord and provides for the tenant to collect all interest paid by the banking organization on a security deposit or advance when such is deposited into an interest bearing account.

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BILL NUMBER:S514

TITLE OF BILL:

An act
to amend the general obligations law, in relation to tenant security
deposits

PURPOSE:

Prohibits the collection of administration expenses by a landlord and
provides for the tenant to collect all interest paid on a security
deposit or advance.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 7-103 of the general obligations
law to remove the ability of a landlord to collect administration
expenses on a tenant's security deposit and allows for a tenant to
collect on all interest paid on the security deposit.

EXISTING LAW:

Currently a landlord is allowed to collect, as "administration
expenses" a sum equivalent to one per cent per annum upon a tenant's
security deposit.

JUSTIFICATION:

It is unjust for a landlord to have the ability to take one percent of
the interest compounded by a tenant's security deposit. The security
deposit is the tenant's money. Therefore it is only just that the
tenant be allowed to keep all of his or her interest from that deposit.

LEGISLATIVE HISTORY:

2007: S.3556 (Duane), Died in Judiciary
2008: S.3556 (Duane), Died in Judiciary
2009: S.3338 (Duane), Died in Judiciary
2010: S.3338 (Duane), Died in Judiciary

FISCAL IMPLICATIONS:

Minimal.

EFFECTIVE DATE:

This act will take effect on the first of January next succeeding
the date on which it shall become a law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   514

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sen. ESPAILLAT -- 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 tenant secu-
  rity deposits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The section heading and subdivision 2 of section  7-103  of
the  general  obligations law, the section heading as amended by chapter
1009 of the laws of 1970 and subdivision 2 as amended by chapter 402  of
the laws of 1979, are amended to read as follows:
  Money deposited or advanced for use or rental of real property; waiver
void[; administration expenses].
  2.  Whenever the person receiving money so deposited or advanced shall
deposit such money in a banking organization, such person shall thereup-
on notify in writing each of the persons making such security deposit or
advance, giving the name and address  of  the  banking  organization  in
which  the  deposit  of  security  money is made, and the amount of such
deposit. Deposits in a banking organization pursuant to  the  provisions
of  this  subdivision  shall  be made in a banking organization having a
place of business within the state. If the person depositing such  secu-
rity  money  in a banking organization shall deposit same in an interest
bearing account,[ he shall be entitled  to  receive,  as  administration
expenses,  a  sum equivalent to one per cent per annum upon the security
money so deposited, which shall be in lieu of all  other  administrative
and custodial expenses. The balance of] the interest paid by the banking
organization  shall  be  the  money  of the person making the deposit or
advance and shall either be held in trust by the person with  whom  such
deposit or advance shall be made, until repaid or applied for the use or
rental of the leased premises, or annually paid to the person making the
deposit of security money.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01949-01-3

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