NY State Senate Bill S5144B

Archive: Last Bill Status - In Senate Committee Judiciary Committee

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

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Actions

view actions (13)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to judiciary returned to senate died in assembly
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

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S5144 - Details

See Assembly Version of this Bill:: A6539
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:: S168

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

 
BILL NUMBER: S5144

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to personal liability
provisions in certain commercial leases

 
PURPOSE:

The purpose of this bill is to relieve certain guarantors of commercial
leases of the financial responsibilities to pay 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, throughout the COVID-19 crisis.

 
SUMMARY OF PROVISIONS:

Section one amends the real property law to add a new section 235-i that
relieves certain guarantors of commercial leases of the financial
responsibilities of paying rent, utility expenses, and taxes owed by the

tenant if the guarantor became partially or wholly liable for such
financial obligations by some event occurring between March 7, 2020
through and after the end of the state disaster emergency issued pursu-
ant to Executive Order 202 of 2020 relating to the COVID19 pandemic.
Specifically, guarantors of commercial leases are relieved of these
financial responsibilities if the tenant was required to cease oper-
ations or cease serving patrons food or beverages under Executive Order
202.3 of 2020, if the tenant was required to close to members of the
public under Executive Order 202.7 of 2020, or if the tenant was a non-
essential retail establishment subject to in-person limitations under
guidance issued by the New York State Department pursuant to Executive
Order 202.6 of 2020. This section also defines any attempt to enforce a
personal liability provision that a landlord knows or should reasonably
know is not enforceable pursuant to the section as an act of commercial
tenant harassment.

Section two sets the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

Businesses in New York State, particularly small businesses, have been
devastated by the economic consequences of COVID-19 pandemic.  Commer-
cial renters that have been forced to close their businesses or reduce
in-person capacity in accordance with Executive Orders issued by the
Governor to limit the spread of the coronavirus in the state have been
struggling to meet their financial obligations to commercial landlords.
This bill protects guarantors of those commercial leases from being held
liable for those financial obligations throughout the course of the
COVID-19 state of emergency.  Similar to protections already provided in
New York City, this bill also defines any attempt to hold the tenant or
guarantor liable for those financial obligations through and after the
state disaster emergency declared in response to the COVID-19 pandemic
as commercial tenant harassment.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately.

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

 S. 5144                             2
 
   (B)  THE DEFAULT OR OTHER EVENT CAUSING SUCH NATURAL PERSONS TO BECOME
 WHOLLY OR PARTIALLY  PERSONALLY  LIABLE  FOR  SUCH  OBLIGATION  OCCURRED
 BETWEEN  MARCH SEVENTH, TWO THOUSAND TWENTY THROUGH THE END OF THE STATE
 DISASTER EMERGENCY RELATING TO THE COVID-19 PANDEMIC ISSUED PURSUANT  TO
 EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY, AS AMENDED.
   2.  AN AGREEMENT MADE UNENFORCEABLE BY SUBDIVISION ONE OF THIS SECTION
 SHALL NOT BE ENFORCEABLE AGAINST SUCH NATURAL PERSONS AT ANY POINT, EVEN
 AFTER THE END OF THE STATE DISASTER EMERGENCY RELATING TO  THE  COVID-19
 PANDEMIC ISSUED PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO OF TWO THOU-
 SAND TWENTY, AS AMENDED.
   3.  AN  ATTEMPT TO ENFORCE A PERSONAL LIABILITY PROVISION THAT A LAND-
 LORD KNOWS OR REASONABLY SHOULD KNOW IS NOT ENFORCEABLE PURSUANT TO THIS
 SECTION SHALL BE CONSIDERED AN ACT OF COMMERCIAL TENANT HARASSMENT.
   § 2. This act shall take effect immediately.

Co-Sponsors

S5144A - Details

See Assembly Version of this Bill:: A6539
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:: S168

S5144A - Summary

S5144A - Sponsor Memo

 
BILL NUMBER: S5144a

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to personal liability
provisions in certain commercial leases

 
PURPOSE:

The purpose of this bill is to relieve certain guarantors of commercial
leases of the financial responsibilities to pay 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, throughout the COVID-19 crisis.

 
SUMMARY OF PROVISIONS:

Section one amends the real property law to add a new section 235-i that
relieves certain guarantors of commercial leases of the financial
responsibilities of paying rent, utility expenses, and taxes owed by the

tenant if the guarantor became partially or wholly liable for such
financial obligations by some event occurring between March 7, 2020
through the expiration of ninety days after the COVID-19 declared disas-
ter emergency has ended. Specifically, guarantors of commercial leases
are relieved of these financial responsibilities if the tenant was
required to cease operations or cease serving patrons food or beverages
under Executive Order 202.3 of 2020, if the tenant was a non-essential
business subject to in-person limitations under guidance issued by the
New York State Department pursuant to Executive Order 202.6 of 2020, or
if the tenant was required to close to members of the public under Exec-
utive Order 202.7 of 2020. This section also defines any attempt to
enforce a personal liability provision that a landlord knows or should
reasonably know is not enforceable pursuant to the section as an act of
commercial tenant harassment.

Section two sets the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

Businesses in New York State, particularly small businesses, have been
devastated by the economic consequences of COVID-19 pandemic.  Commer-
cial renters that have been forced to close their businesses or reduce
in-person capacity in accordance with Executive Orders issued by the
Governor to limit the spread of the coronavirus in the state have been
struggling to meet their financial obligations to commercial landlords.
This bill protects certain guarantors of those commercial leases from
ever being held liable for financial obligations which occurred through-
out the course of the COVID-19 declared disaster emergency and for nine-
ty days after the declared disaster emergency expires. Similar to
protections already provided in New York City, this bill also defines
any attempt to hold the tenant or guarantor liable for those financial
obligations through and after the state disaster emergency declared in
response to the COVID-19 pandemic as commercial tenant harassment.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately.

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

 S. 5144--A                          2
 
   (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
   (B)  THE DEFAULT OR OTHER EVENT CAUSING SUCH NATURAL PERSONS TO BECOME
 WHOLLY OR PARTIALLY  PERSONALLY  LIABLE  FOR  SUCH  OBLIGATION  OCCURRED
 BETWEEN  MARCH  SEVENTH,  TWO  THOUSAND TWENTY THROUGH THE EXPIRATION OF
 NINETY DAYS AFTER THE COVID-19 DECLARED DISASTER EMERGENCY HAS ENDED.
   2. AN AGREEMENT MADE UNENFORCEABLE BY SUBDIVISION ONE OF THIS  SECTION
 SHALL NOT BE ENFORCEABLE AGAINST SUCH NATURAL PERSONS AT ANY POINT.
   3.  AN  ATTEMPT TO ENFORCE A PERSONAL LIABILITY PROVISION THAT A LAND-
 LORD KNOWS OR REASONABLY SHOULD KNOW IS NOT ENFORCEABLE PURSUANT TO THIS
 SECTION SHALL BE CONSIDERED AN ACT OF COMMERCIAL TENANT HARASSMENT.
   § 2. This act shall take effect immediately.

Co-Sponsors

S5144B (ACTIVE) - Details

See Assembly Version of this Bill:: A6539
Current Committee:: Senate Judiciary
Law Section:: Real Property Law
Laws Affected:: Add §235-i, RP L
Versions Introduced in 2023-2024 Legislative Session:: S168

S5144B (ACTIVE) - Summary

S5144B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S5144B

SPONSOR: GIANARIS
 
TITLE OF BILL:

An act to amend the real property law, in relation to personal liability
provisions in certain commercial leases

 
PURPOSE:

The purpose of this bill is to relieve certain guarantors of commercial
leases of the financial responsibilities to pay 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, resulting
from the COVID-19 crisis.

 
SUMMARY OF PROVISIONS:

Section one amends the real property law to add a new section 235-i that
relieves certain guarantors of commercial leases of the financial
responsibilities of paying rent, utility expenses, and taxes owed by the

tenant if the guarantor became partially or wholly liable for such
financial obligations by some event occurring between March 7, 2020
through August 31, 2021. Specifically, guarantors of commercial leases
are relieved of these financial responsibilities if the tenant was
required to cease operations or cease serving patrons food or beverages
under Executive Order 202.3 of 2020, if the tenant was a non-essential
business subject to in-person limitations under guidance issued by the
New York State Department pursuant to Executive Order 202.6 of 2020, or
if the tenant was required to close to members of the public under Exec-
utive Order 202.7 of 2020.

Section two sets the effective date.

 
EXISTING LAW:

 
JUSTIFICATION:

Businesses in New York State, particularly small businesses, have been
devastated by the economic consequences of COVID-19 pandemic.  Commer-
cial renters that have been forced to close their businesses or reduce
in-person capacity in accordance with Executive Orders issued by the
Governor to limit the spread of the coronavirus in the state have been
struggling to meet their financial obligations to commercial landlords.
This bill protects certain guarantors of those commercial leases from
ever being held liable for financial obligations which occurred through-
out the course of the COVID-19 declared disaster emergency through to
August 31, 2021.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
LOCAL FISCAL IMPLICATIONS:

 
EFFECTIVE DATE:
This act shall take effect immediately.

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

 S. 5144--B                          2
 
   (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
   (B)  THE DEFAULT OR OTHER EVENT CAUSING SUCH NATURAL PERSONS TO BECOME
 WHOLLY OR PARTIALLY  PERSONALLY  LIABLE  FOR  SUCH  OBLIGATION  OCCURRED
 BETWEEN  MARCH SEVENTH, TWO THOUSAND TWENTY AND AUGUST THIRTY-FIRST, TWO
 THOUSAND TWENTY-ONE.
   § 2. This act shall take effect immediately.

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The New York State Senate

senate Bill S5144B

Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Your Voice

Actions

Votes

Jun 9, 2021 - floor Vote

Floor Vote: Jun 9, 2021

Jun 7, 2021 - Rules committee Vote

Rules Committee Vote: Jun 7, 2021

Bill Amendments

Co-Sponsors

S5144 - Details

S5144 - Summary

S5144 - Sponsor Memo

S5144 - Bill Text download pdf

Co-Sponsors

S5144A - Details

S5144A - Summary

S5144A - Sponsor Memo

S5144A - Bill Text download pdf

Co-Sponsors

S5144B (ACTIVE) - Details

S5144B (ACTIVE) - Summary

S5144B (ACTIVE) - Sponsor Memo

S5144B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S5144B

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Sponsored By

Archive: Last Bill Status - In Senate Committee Judiciary Committee

Your Voice

Actions

Votes

Jun 9, 2021 - floor Vote

Floor Vote: Jun 9, 2021

Jun 7, 2021 - Rules committee Vote

Rules Committee Vote: Jun 7, 2021

Bill Amendments

Co-Sponsors

S5144 - Details

S5144 - Summary

S5144 - Sponsor Memo

S5144 - Bill Text download pdf

Co-Sponsors

S5144A - Details

S5144A - Summary

S5144A - Sponsor Memo

S5144A - Bill Text download pdf

Co-Sponsors

S5144B (ACTIVE) - Details

S5144B (ACTIVE) - Summary

S5144B (ACTIVE) - Sponsor Memo

S5144B (ACTIVE) - Bill Text download pdf

Comments