S T A T E O F N E W Y O R K
________________________________________________________________________
5185
2025-2026 Regular Sessions
I N A S S E M B L Y
February 12, 2025
___________
Introduced by M. of A. NOVAKHOV -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law in relation to prohibiting
hotels, motels and lodging establishments from selling prepaid rooms
to another person in certain circumstances
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature finds that many hotel
reservations are prepaid in advance. Failure to check in on the first
night of a prepaid reservation can result in lost revenue for the hotel
and inconvenience for other guests. Some hotels have been known to sell
a prepaid room to a second person if the original guest fails to check
in, causing confusion and potential legal issues.
§ 2. The general business law is amended by adding a new section 210
to read as follows:
§ 210. PREPAID HOTEL RESERVATIONS. 1. (A) ANY HOTEL, MOTEL OR LODGING
ESTABLISHMENT SHALL BE PROHIBITED FROM SELLING A PREPAID ROOM TO A
SECOND PERSON IF THE ORIGINAL GUEST FAILS TO CHECK IN ON THE FIRST NIGHT
OF THE ORIGINALLY SCHEDULED RESERVATION. IF A RESERVATION IS SCHEDULED
FOR SEVEN DAYS OR LONGER, ANY HOTEL, MOTEL OR LODGING ESTABLISHMENT
SHALL BE PROHIBITED FROM SELLING A PREPAID ROOM TO A SECOND PERSON IF
THE ORIGINAL GUEST FAILS TO CHECK IN ON THE FIRST, SECOND OR THIRD NIGHT
OF THE ORIGINALLY SCHEDULED RESERVATION.
(B) IT SHALL BE REQUIRED THAT ANY GUEST WITH A PREPAID RESERVATION AT
A HOTEL, MOTEL OR LODGING ESTABLISHMENT WHO WILL NOT BE CHECKING IN ON
THE FIRST NIGHT OF SUCH RESERVATION SHALL PROVIDE NOTICE, BY TELEPHONE
OR ELECTRONIC MAIL, TO SUCH HOTEL, MOTEL OR LODGING ESTABLISHMENT OF
SUCH LATE CHECK-IN. IF SUCH NOTICE IS NOT PROVIDED BY THE GUEST PURSUANT
TO THIS PARAGRAPH, THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION
SHALL NOT APPLY AND SUCH HOTEL, MOTEL OR LODGING ESTABLISHMENT WHERE THE
PREPAID RESERVATION WAS MADE SHALL HAVE THE RIGHT TO CANCEL SUCH RESER-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08973-01-5
A. 5185 2
VATION AFTER TWENTY-FOUR HOURS, UNLESS THE GUEST CONTACTS SUCH HOTEL,
MOTEL OR LODGING ESTABLISHMENT AND CANCELS SUCH RESERVATION.
2. IT SHALL BE PROHIBITED FOR ANY HOTEL, MOTEL OR LODGING ESTABLISH-
MENT IN ANY BOOKING CONTRACT OR AGREEMENT BETWEEN SUCH HOTEL, MOTEL OR
LODGING ESTABLISHMENT AND A GUEST TO INCLUDE ANY PROVISION THAT ALLOWS
SUCH HOTEL, MOTEL OR LODGING ESTABLISHMENT TO CANCEL A RESERVATION,
CHARGE A CANCELLATION FEE AND RENT OUT THE RESERVED ROOM TO ANOTHER
PERSON WHEN SUCH RESERVATION HAS BEEN FULLY PREPAID.
3. ANY HOTEL, MOTEL OR LODGING ESTABLISHMENT THAT VIOLATES THE
REQUIREMENTS OF THIS SECTION SHALL BE RESPONSIBLE FOR ANY ACTUAL
DAMAGES, OR A FINE OF FIVE HUNDRED DOLLARS, WHICHEVER AMOUNT IS GREATER,
PER VIOLATION. A HOTEL, MOTEL OR LODGING ESTABLISHMENT CHARGED WITH A
VIOLATION PURSUANT TO THIS SECTION SHALL HAVE THE RIGHT TO APPEAL SUCH
VIOLATION IN A COURT OF COMPETENT JURISDICTION.
§ 3. The division of consumer protection shall establish regulations
and guidelines for the implementation of this act, including but not
limited to the definition of a hotel, motel or lodging establishment.
§ 4. This act shall take effect immediately and shall apply to all
hotels, motels and lodging establishments in the state of New York.