The New York State Senate

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

                                  10471

                          I N  A S S E M B L Y

                              May 22, 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 real property law, in  relation  to  permitting  the
  early  termination  of  a  lease  by certain tenants during a state of
  emergency

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

  Section  1.  The  real property law is amended by adding a new section
227-g to read as follows:
  § 227-G. TERMINATION OF CERTAIN COMMERCIAL LEASES DURING  A  STATE  OF
EMERGENCY.  1.  (A)  FOR  THE PURPOSES OF THIS SECTION, A "TENANT" SHALL
MEAN A TENANT THAT IS (I) A SMALL BUSINESS, AS DEFINED  BY  SECTION  ONE
HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW, OR (II) A NON-PROFIT
ORGANIZATION EMPLOYING LESS THAN ONE HUNDRED PEOPLE.
  (B)  IN  ANY  LEASE OR RENTAL AGREEMENT COVERING PREMISES OCCUPIED FOR
COMMERCIAL PURPOSES,  WHERE  THE  TENANT  OF  SUCH  PROPERTY  NO  LONGER
REQUIRES  USE OF THE PROPERTY FOR REASONS INCLUDING, BUT NOT LIMITED TO,
THE CAUSE OF A DECLARED STATE OF EMERGENCY CAUSING: (I)  SEATING,  OCCU-
PANCY OR ON-PREMISES SERVICE LIMITATIONS AT THE TENANT'S BUSINESS PURSU-
ANT TO AN EXECUTIVE ORDER ISSUED BY THE GOVERNOR DURING A DECLARED STATE
OF  EMERGENCY  OR  THE  SIX  MONTHS AFTER THE EXPIRATION OF THE STATE OF
EMERGENCY; (II) THE REVENUES OF THE  TENANT'S BUSINESS DURING ANY THREE-
MONTH PERIOD WITHIN THE DECLARED STATE OF EMERGENCY OR  WITHIN  THE  SIX
MONTHS  AFTER  THE  EXPIRATION OF THE STATE OF EMERGENCY TO BE LESS THAN
FIFTY PERCENT OF ITS REVENUES FOR THE SAME PERIOD IN THE  PREVIOUS  YEAR
OR  LESS  THAN  FIFTY  PERCENT  OF  ITS AGGREGATE REVENUES FOR THE THREE
MONTHS PRECEDING THE DECLARED STATE OF EMERGENCY; OR (III)  THE  COVERED
PREMISES    TO  BE UNUSABLE FOR SIXTY DAYS OR MORE, SUCH TENANT SHALL BE
PERMITTED TO TERMINATE SUCH LEASE  OR  RENTAL  AGREEMENT  AND  QUIT  AND
SURRENDER POSSESSION OF THE LEASEHOLD PREMISES AND THE LAND SO LEASED OR
OCCUPIED  PURSUANT  TO THE PROVISIONS OF THIS SECTION AND TO BE RELEASED
FROM ANY LIABILITY TO PAY TO THE LESSOR OR OWNER, RENT OR OTHER PAYMENTS
IN LIEU OF RENT FOR THE TIME SUBSEQUENT TO THE DATE  OF  TERMINATION  OF
SUCH  LEASE IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION. A TENANT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD16419-02-0

A. 10471                            2

SHALL BE PERMITTED TO TERMINATE SUCH LEASE OR RENTAL AGREEMENT UP TO SIX
MONTHS AFTER THE EXPIRATION OF SUCH STATE OF EMERGENCY.
  2.  ANY  LEASE  OR RENTAL AGREEMENT COVERED BY SUBDIVISION ONE OF THIS
SECTION MAY BE TERMINATED BY NOTICE IN WRITING DELIVERED TO  THE  LESSOR
OR  OWNER  OR  TO THE LESSOR'S OR OWNER'S AGENT BY A TENANT.  UNLESS THE
LEASE OR RENTAL AGREEMENT PROVIDES FOR AN EARLIER TERMINATION DATE, SUCH
TERMINATION SHALL BE EFFECTIVE NO EARLIER THAN  THIRTY  DAYS  AFTER  THE
DATE  ON  WHICH THE NEXT RENTAL PAYMENT SUBSEQUENT TO THE DATE WHEN SUCH
NOTICE IS DELIVERED IS DUE AND PAYABLE. SUCH NOTICE SHALL BE ACCOMPANIED
BY DOCUMENTATION OF THE REASONS THE TENANT OF SUCH  PROPERTY  NO  LONGER
REQUIRES USE OF THE PROPERTY. SUCH NOTICE SHALL BE DEEMED DELIVERED FIVE
DAYS AFTER MAILING.
  3.  ANY PERSON WHO SHALL KNOWINGLY SEIZE, HOLD, OR DETAIN THE PROPERTY
OF ANY TENANT WHO HAS LAWFULLY TERMINATED A LEASE  OR  RENTAL  AGREEMENT
COVERED BY THIS SECTION, OR IN ANY MANNER INTERFERES WITH THE REMOVAL OF
SUCH  PROPERTY  FROM THE PREMISES COVERED BY SUCH LEASE OR RENTAL AGREE-
MENT, FOR THE PURPOSE OF SUBJECTING OR ATTEMPTING TO SUBJECT ANY OF SUCH
PROPERTY TO A PURPORTED CLAIM FOR RENT ACCRUING SUBSEQUENT TO  THE  DATE
OF  TERMINATION OF SUCH LEASE OR RENTAL AGREEMENT, OR ATTEMPTS SO TO DO,
SHALL BE GUILTY OF A MISDEMEANOR AND SHALL BE PUNISHED  BY  IMPRISONMENT
NOT TO EXCEED ONE YEAR OR BY FINE NOT TO EXCEED ONE THOUSAND DOLLARS, OR
BY BOTH SUCH FINE AND IMPRISONMENT.
  4.  UPON TERMINATION, THE PREMISES SHALL BE DELIVERED TO THE LESSOR OR
OWNER IN ACCORDANCE WITH THE TERMS OF THE LEASE RELATING TO DELIVERY  OF
THE PREMISES AT THE TERMINATION OF THE LEASE.
  5.  ANY  AGREEMENT  BY  A  TENANT  OF PREMISES OCCUPIED FOR COMMERCIAL
PURPOSES WAIVING OR MODIFYING HIS OR HER RIGHTS AS  SET  FORTH  IN  THIS
SECTION SHALL BE VOID AS CONTRARY TO PUBLIC POLICY.
  § 2. This act shall take effect immediately.