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Assembly Bill A6539B

2021-2022 Legislative Session

Relates to personal liability provisions in certain commercial leases

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Archive: Last Bill Status - In Assembly Committee

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Bill Amendments

co-Sponsors

2021-A6539 - Details

See Senate Version of this Bill:
S5144
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:
S168

2021-A6539 - Summary

Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

2021-A6539 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6539
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by M. of A. KELLES, GALLAGHER, EPSTEIN, MITAYNES, DICKENS --
   read once and referred to the Committee on Judiciary
 
 AN ACT to amend the real property law, in relation to personal liability
   provisions in certain commercial leases
 
   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
 235-i to read as follows:
   § 235-I. PERSONAL LIABILITY PROVISIONS IN COMMERCIAL  LEASES.  1.    A
 PROVISION IN A COMMERCIAL LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL
 PROPERTY  LOCATED  WITHIN  NEW  YORK STATE THAT PROVIDES FOR ONE OR MORE
 NATURAL PERSONS WHO ARE NOT THE TENANT UNDER SUCH AGREEMENT  TO  BECOME,
 UPON  THE  OCCURRENCE  OF  A DEFAULT OR OTHER EVENT, WHOLLY OR PARTIALLY
 PERSONALLY LIABLE FOR PAYMENT OF RENT, UTILITY EXPENSES, OR  TAXES  OWED
 BY  THE  TENANT  UNDER  SUCH  AGREEMENT, OR FEES AND CHARGES RELATING TO
 ROUTINE BUILDING MAINTENANCE OWED BY THE TENANT  UNDER  SUCH  AGREEMENT,
 SHALL NOT BE ENFORCEABLE AGAINST SUCH NATURAL PERSONS FOR THE PERIOD SET
 FORTH IN SUBDIVISION TWO OF THIS SECTION IF THE CONDITIONS OF PARAGRAPHS
 (A) AND (B) OF THIS SUBDIVISION ARE SATISFIED:
   (A) THE TENANT WAS:
   (I) REQUIRED TO CEASE SERVING PATRONS FOOD OR BEVERAGE FOR ON-PREMISES
 CONSUMPTION  OR  TO  CEASE  OPERATION UNDER EXECUTIVE ORDER NUMBER 202.3
 ISSUED BY THE GOVERNOR ON MARCH SIXTEENTH, TWO THOUSAND TWENTY;
   (II) A NON-ESSENTIAL BUSINESS SUBJECT TO IN-PERSON  LIMITATIONS  UNDER
 GUIDANCE ISSUED BY THE NEW YORK STATE DEPARTMENT OF ECONOMIC DEVELOPMENT
 PURSUANT TO EXECUTIVE ORDER NUMBER 202.6 ISSUED BY THE GOVERNOR ON MARCH
 EIGHTEENTH, TWO THOUSAND TWENTY; OR
   (III) REQUIRED TO CLOSE TO MEMBERS OF THE PUBLIC UNDER EXECUTIVE ORDER
 NUMBER  202.7  ISSUED  BY THE GOVERNOR ON MARCH NINETEENTH, TWO THOUSAND
 TWENTY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09802-03-1

co-Sponsors

2021-A6539A - Details

See Senate Version of this Bill:
S5144
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:
S168

2021-A6539A - Summary

Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

2021-A6539A - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6539--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by  M.  of A. KELLES, GALLAGHER, EPSTEIN, MITAYNES, DICKENS,
   ENGLEBRIGHT, JACKSON, SILLITTI, COLTON, SIMON, J. RIVERA, GONZALEZ-RO-
   JAS, OTIS -- read once and referred to the Committee on  Judiciary  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee

 AN ACT to amend the real property law, in relation to personal liability
   provisions in certain commercial leases
 
   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
 235-i to read as follows:
   § 235-I. PERSONAL LIABILITY PROVISIONS IN COMMERCIAL  LEASES.  1.    A
 PROVISION IN A COMMERCIAL LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL
 PROPERTY  LOCATED  WITHIN  NEW  YORK STATE THAT PROVIDES FOR ONE OR MORE
 NATURAL PERSONS WHO ARE NOT THE TENANT UNDER SUCH AGREEMENT  TO  BECOME,
 UPON  THE  OCCURRENCE  OF  A DEFAULT OR OTHER EVENT, WHOLLY OR PARTIALLY
 PERSONALLY LIABLE FOR PAYMENT OF RENT, UTILITY EXPENSES, OR  TAXES  OWED
 BY  THE  TENANT  UNDER  SUCH  AGREEMENT, OR FEES AND CHARGES RELATING TO
 ROUTINE BUILDING MAINTENANCE OWED BY THE TENANT  UNDER  SUCH  AGREEMENT,
 SHALL NOT BE ENFORCEABLE AGAINST SUCH NATURAL PERSONS FOR THE PERIOD SET
 FORTH IN SUBDIVISION TWO OF THIS SECTION IF THE CONDITIONS OF PARAGRAPHS
 (A) AND (B) OF THIS SUBDIVISION ARE SATISFIED:
   (A) THE TENANT WAS:
   (I) REQUIRED TO CEASE SERVING PATRONS FOOD OR BEVERAGE FOR ON-PREMISES
 CONSUMPTION  OR  TO  CEASE  OPERATION UNDER EXECUTIVE ORDER NUMBER 202.3
 ISSUED BY THE GOVERNOR ON MARCH SIXTEENTH, TWO THOUSAND TWENTY;
   (II) A NON-ESSENTIAL BUSINESS SUBJECT TO IN-PERSON  LIMITATIONS  UNDER
 GUIDANCE ISSUED BY THE NEW YORK STATE DEPARTMENT OF ECONOMIC DEVELOPMENT
 PURSUANT TO EXECUTIVE ORDER NUMBER 202.6 ISSUED BY THE GOVERNOR ON MARCH
 EIGHTEENTH, TWO THOUSAND TWENTY; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09802-05-1

co-Sponsors

2021-A6539B (ACTIVE) - Details

See Senate Version of this Bill:
S5144
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:
S168

2021-A6539B (ACTIVE) - Summary

Prohibits enforcement of personal liability provisions against individuals in the event of default on a commercial lease, where the commercial tenant was restricted from operating under certain executive orders relating to the COVID-19 pandemic.

2021-A6539B (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6539--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2021
                                ___________
 
 Introduced  by  M.  of A. KELLES, GALLAGHER, EPSTEIN, MITAYNES, DICKENS,
   ENGLEBRIGHT, JACKSON, SILLITTI, COLTON, SIMON, J. RIVERA, GONZALEZ-RO-
   JAS, OTIS -- read once and referred to the Committee on  Judiciary  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- again reported  from  said  committee
   with  amendments, ordered reprinted as amended and recommitted to said
   committee
 
 AN ACT to amend the real property law, in relation to personal liability
   provisions in certain commercial leases
 
   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
 235-i to read as follows:
   § 235-I. PERSONAL  LIABILITY  PROVISIONS  IN  COMMERCIAL  LEASES.    A
 PROVISION IN A COMMERCIAL LEASE OR OTHER RENTAL AGREEMENT INVOLVING REAL
 PROPERTY  LOCATED  WITHIN  NEW  YORK STATE THAT PROVIDES FOR ONE OR MORE
 NATURAL PERSONS WHO ARE NOT THE TENANT UNDER SUCH AGREEMENT  TO  BECOME,
 UPON  THE  OCCURRENCE  OF  A DEFAULT OR OTHER EVENT, WHOLLY OR PARTIALLY
 PERSONALLY LIABLE FOR PAYMENT OF RENT, UTILITY EXPENSES, OR  TAXES  OWED
 BY  THE  TENANT  UNDER  SUCH  AGREEMENT,  OR  ANY OTHER FEES, CHARGES OR
 PAYMENTS OWED BY THE TENANT UNDER SUCH AGREEMENT, SHALL NOT BE ENFORCEA-
 BLE AGAINST SUCH NATURAL PERSONS AT ANY POINT IF:
   (A) THE TENANT WAS:
   (I) REQUIRED TO CEASE SERVING PATRONS FOOD OR BEVERAGE FOR ON-PREMISES
 CONSUMPTION OR TO CEASE OPERATION UNDER  EXECUTIVE  ORDER  NUMBER  202.3
 ISSUED BY THE GOVERNOR ON MARCH SIXTEENTH, TWO THOUSAND TWENTY;
   (II)  A  NON-ESSENTIAL BUSINESS SUBJECT TO IN-PERSON LIMITATIONS UNDER
 GUIDANCE ISSUED BY THE NEW YORK STATE DEPARTMENT OF ECONOMIC DEVELOPMENT
 PURSUANT TO EXECUTIVE ORDER NUMBER 202.6 ISSUED BY THE GOVERNOR ON MARCH
 EIGHTEENTH, TWO THOUSAND TWENTY; OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09802-07-1

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