S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10444
 
                           I N  A S S E M B L Y
 
                               May 18, 2020
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
   read once and referred 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:

   Section 1. The general obligations law is  amended  by  adding  a  new
 section 5-338 to read as follows:
   § 5-338. PERSONAL LIABILITY PROVISIONS IN COMMERCIAL LEASES DURING THE
 COVID-19  PERIOD.  1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE
 FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
   (A) "COVID-19" MEANS THE TWO THOUSAND NINETEEN  NOVEL  CORONAVIRUS  OR
 2019-NCOV.
   (B) "COVID-19 PERIOD" MEANS MARCH SEVENTH, TWO THOUSAND TWENTY THROUGH
 THE LATER OF:
   (I)  THE END OF THE FIRST MONTH THAT COMMENCES AFTER THE EXPIRATION OF
 THE MORATORIUM ON ENFORCEMENT OF EVICTIONS OF RESIDENTIAL AND COMMERCIAL
 TENANTS SET FORTH IN EXECUTIVE ORDER NUMBER  202.8,  AS  ISSUED  BY  THE
 GOVERNOR   ON  MARCH  TWENTIETH,  TWO  THOUSAND  TWENTY  AND  THEREAFTER
 EXTENDED;
   (II) SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY, INCLUSIVE.
   (C) "IMPACTED BY COVID-19" MEANS THAT:
   (I) THE BUSINESS WAS SUBJECT  TO  SEATING,  OCCUPANCY  OR  ON-PREMISES
 SERVICE  LIMITATIONS PURSUANT TO AN EXECUTIVE ORDER ISSUED BY THE GOVER-
 NOR DURING THE COVID-19 PERIOD; OR
   (II) THE REVENUES OF THE BUSINESS DURING ANY THREE-MONTH PERIOD WITHIN
 THE COVID-19 PERIOD WERE LESS THAN FIFTY PERCENT OF ITS REVENUES FOR THE
 SAME PERIOD IN TWO THOUSAND NINETEEN OR LESS THAN FIFTY PERCENT  OF  ITS
 AGGREGATE  REVENUES  FOR  THE  MONTHS OF DECEMBER TWO THOUSAND NINETEEN,
 JANUARY TWO THOUSAND TWENTY AND FEBRUARY TWO THOUSAND TWENTY.
   (D) "PERSONAL LIABILITY PROVISION" MEANS, WITH RESPECT TO A COMMERCIAL
 LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL PROPERTY AND TO  WHICH  A
 BUSINESS IS A PARTY AS TENANT, A TERM THAT PROVIDES FOR AN INDIVIDUAL TO
 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.
                                                            LBD16322-02-0

 A. 10444                            2
 
 BUSINESS ARISING UNDER SUCH LEASE OR AGREEMENT UPON THE OCCURRENCE OF  A
 DEFAULT OR OTHER EVENT.
   2.  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  ENFORCE-
 MENT OCCURS DURING THE COVID-19 PERIOD.
   § 2. This act shall take effect immediately.