S T A T E O F N E W Y O R K
________________________________________________________________________
9160
2025-2026 Regular Sessions
I N A S S E M B L Y
October 17, 2025
___________
Introduced by M. of A. P. CARROLL -- read once and referred to the
Committee on Judiciary
AN ACT to amend the real property law, in relation to termination of
utility service to a commercial tenant
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
"the commercial tenant protection act".
§ 2. The real property law is amended by adding a new section 235-aa
to read as follows:
§ 235-AA. COMMERCIAL TENANT'S RIGHT TO OFFSET PAYMENTS. 1. IN ANY CASE
IN WHICH A UTILITY COMPANY TERMINATES SERVICE TO A COMMERCIAL TENANT
WITH A TRIPLE NET LEASE DUE TO THE LANDLORD'S FAILURE TO PAY ONE OR MORE
UTILITY CHARGES FOR THE RENTED UNIT OR UNITS, AND SUCH TENANT HAS FULLY
PAID ALL OUTSTANDING RENT AND OTHER CHARGES TO THE LANDLORD, THE TENANT
MAY HOLD BACK RENT PRO-RATED FOR THE AMOUNT OF DAYS THE UTILITIES ARE
TURNED OFF.
2. AS USED IN THIS SECTION:
(A) "TRIPLE NET LEASE" MEANS A LEASE THAT REQUIRES THE TENANT TO PAY
ALL EXPENSES ON A PROPERTY, INCLUDING REAL ESTATE TAXES, PROPERTY INSUR-
ANCE, AND OPERATING EXPENSES, ALONG WITH THE COST OF RENT AND UTILITIES;
AND
(B) "UTILITY COMPANY" INCLUDES A UTILITY COMPANY AS DEFINED IN SUBDI-
VISION TWENTY-THREE OF SECTION TWO OF THE PUBLIC SERVICE LAW, A PUBLIC
AUTHORITY, A WATER-WORKS CORPORATION AS DEFINED IN SUBDIVISION TWENTY-
SEVEN OF SECTION TWO OF THE PUBLIC SERVICE LAW, AND A MUNICIPAL WATER
SYSTEM AS PRESCRIBED IN SECTION EIGHTY-NINE-L OF THE PUBLIC SERVICE LAW.
§ 3. This act shall take effect on the ninetieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such effective date.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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