The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10646
 
                           I N  A S S E M B L Y
 
                              August 12, 2022
                                ___________
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
   read once and referred to the Committee on Housing
 
 AN ACT to amend the real property law and the general  obligations  law,
   in relation to prohibiting residential landlords from charging tenants
   a  fee  for  a  dishonored rent check in excess of the actual costs or
   fees incurred by such landlord as a result thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 238-a of real property law is amended by adding a
 new subdivision 2-a to read as follows:
   2-A. (A) NO LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR SHALL  DEMAND  ANY
 PAYMENT, FEE, OR CHARGE FROM A TENANT FOR THE DELIVERY OF A CHECK, DRAFT
 OR  LIKE  INSTRUMENT THAT WAS GIVEN IN PAYMENT FOR RENT AND SUBSEQUENTLY
 DISHONORED BY THE TENANT'S FINANCIAL INSTITUTION FOR INSUFFICIENT  FUNDS
 EXCEPT AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION.
   (B) NOTWITHSTANDING ANY CONTRARY PROVISION HEREIN, A LANDLORD, LESSOR,
 SUB-LESSOR  OR  GRANTOR  MAY  DEMAND  ANY PAYMENT, FEE, OR CHARGE FROM A
 TENANT FOR THE DELIVERY OF A DISHONORED CHECK ONLY IF SUCH PAYMENT, FEE,
 OR CHARGE WAS PROVIDED FOR IN THE  INITIAL  LEASE  OR  CONTRACT  BETWEEN
 LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR AND THE TENANT; PROVIDED, HOWEV-
 ER, THAT SUCH PAYMENT, FEE, OR CHARGE SHALL NOT EXCEED THE ACTUAL COSTS,
 CHARGES  OR FEES INCURRED BY LANDLORD, LESSOR, SUB-LESSOR OR GRANTOR FOR
 THE RETURN OF SUCH DISHONORED CHECK OR THE AMOUNT SET FORTH IN  SUBDIVI-
 SION THREE OF SECTION 5-328 OF THE GENERAL OBLIGATIONS LAW, WHICHEVER IS
 LESS.
   (C)  AS  USED  IN  THIS SUBDIVISION, "DISHONORED CHECK" SHALL HAVE THE
 SAME MEANING AS SUCH TERM IS DEFINED IN SECTION  5-328  OF  THE  GENERAL
 OBLIGATIONS LAW.
   § 2. Subdivision 3 of section 5-328 of the general obligations law, as
 added by chapter 529 of the laws of 1995, is amended to read as follows:
   3.  (A) Notwithstanding any other provision of law, any person to whom
 a check, draft or like instrument, other than a money order, bank  cash-
 ier's  check  or certified check, is tendered for any transaction, other
 than a consumer transaction,  may,  if  such  instrument  is  dishonored
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16178-01-2
 A. 10646                            2
 
 charge  or collect from the maker or drawer the amount of twenty dollars
 for the return of such unpaid or dishonored instrument.
   (B)  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS SUBDIVISION, A LAND-
 LORD, LESSOR, SUB-LESSOR OR GRANTOR TO  WHOM  A  CHECK,  DRAFT  OR  LIKE
 INSTRUMENT,  OTHER THAN A MONEY ORDER, BANK CASHIER'S CHECK OR CERTIFIED
 CHECK, IS TENDERED FOR PAYMENT  OF  RENT,  MAY  IF  SUCH  INSTRUMENT  IS
 DISHONORED  CHARGE  OR  COLLECT  FROM  THE MAKER OR DRAWER THE AMOUNT OF
 ACTUAL COSTS, CHARGES OR FEES INCURRED BY SUCH  LANDLORD,  LESSOR,  SUB-
 LESSOR  OR GRANTOR FOR THE RETURN OF SUCH DISHONORED CHECK OR THE AMOUNT
 SET FORTH IN PARAGRAPH (A)  OF  THIS  SUBDIVISION,  WHICHEVER  IS  LESS,
 PROVIDED  THAT  SUCH  DISHONORED  CHECK CHARGE WAS CONTRACTED FOR IN THE
 INITIAL LEASE AGREEMENT BETWEEN THE TENANT AND  LANDLORD,  LESSOR,  SUB-
 LESSOR  OR  GRANTOR  IN  ACCORDANCE WITH THE REQUIREMENTS OF SUBDIVISION
 TWO-A OF SECTION TWO HUNDRED THIRTY-EIGHT-A OF THE REAL PROPERTY LAW.
   § 3. This act shall take effect immediately and shall apply to actions
 and proceedings commenced on and after such effective date.