senate Bill S5144B

2021-2022 Legislative Session

Relates to personal liability provisions in certain commercial leases

download bill text pdf

Sponsored By

Current Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (10)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 09, 2021 referred to judiciary
delivered to assembly
passed senate
Jun 07, 2021 ordered to third reading cal.1546
committee discharged and committed to rules
Jun 03, 2021 print number 5144b
Jun 03, 2021 amend and recommit to judiciary
Apr 21, 2021 print number 5144a
Apr 21, 2021 amend and recommit to judiciary
Feb 25, 2021 referred to judiciary

Co-Sponsors

S5144 - Details

See Assembly Version of this Bill:
A6539
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L

S5144 - 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.

S5144 - Sponsor Memo

S5144 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5144
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 25, 2021
                                ___________
 
 Introduced  by  Sens.  GIANARIS, BROUK, GOUNARDES, JACKSON -- read twice
   and ordered printed, and when printed to be committed 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 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 RETAIL ESTABLISHMENT SUBJECT TO IN-PERSON LIMITA-
 TIONS 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.
                                                            LBD09802-01-1

Co-Sponsors

S5144A - Details

See Assembly Version of this Bill:
A6539
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L

S5144A - 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.

S5144A - Sponsor Memo

S5144A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5144--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 25, 2021
                                ___________
 
 Introduced  by  Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- read
   twice and ordered printed, and when printed to  be  committed  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.
                                                            LBD09802-04-1

Co-Sponsors

S5144B (ACTIVE) - Details

See Assembly Version of this Bill:
A6539
Current Committee:
Assembly Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §235-i, RP L

S5144B (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.

S5144B (ACTIVE) - Sponsor Memo

S5144B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5144--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 25, 2021
                                ___________
 
 Introduced  by  Sens. GIANARIS, BROUK, GOUNARDES, JACKSON, MYRIE -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on Judiciary -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said  committee  --  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.   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.
                                                            LBD09802-06-1

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