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Assembly Bill A10471

2019-2020 Legislative Session

Relates to permitting the early termination of a commercial lease by certain tenants during a state of emergency

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Archive: Last Bill Status - In Assembly Committee

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2019-A10471 (ACTIVE) - Details

Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §227-g, RP L
Versions Introduced in 2021-2022 Legislative Session:
A3346

2019-A10471 (ACTIVE) - Summary

Permits the early termination of a commercial lease by a small business or non-profit tenant employing 100 people or less during a state of emergency where the tenant's business has been subject to seating, occupancy or on-premises service limitations pursuant to an executive order issued by the governor during or six months after a declared state of emergency; the revenues of the tenant's business during any three-month period within the declared state of emergency or six months after are 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 the covered premises is unusable for sixty days or more; permits a tenant to terminate a lease or rental agreement up to six months after the expiration of such state of emergency.

2019-A10471 (ACTIVE) - Bill Text download pdf 

                            
 
                     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

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