Senate Bill S7305

                                 
BILL NUMBER: S7305

SPONSOR: CLEARE
 
TITLE OF BILL:

An act in relation to enacting the "protect main street act"; and
providing for the repeal of such provisions upon the expiration thereof

 
PURPOSE OF BILL:

The purpose of the Main Street is to provide a settlement conference so
that the commercial tenant and the landlord are provided an opportunity
to explore settlement options and avoid the necessity of litigation.
Such conferences are necessary to encourage good faith negotiation to
protect the leasehold interest of the tenant and to maintain the charac-
ter of our neighborhoods and avoid empty storefronts.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section (1) provides this act shall be known as may be cited as the
"Protect Main Street Act."

              

Section (2) amends the New York City Civil Court Act, the Uniform City
Court Act, the Uniform Justice Court Act, and the Uniform District Court
Act to create a procedural requirement of a mandatory settlement confer-
ence for certain commercial eviction proceedings and, to provide guid-
ance to settlement discussions, the statutory language codifies the
common law standard to determine whether performance under the lease was
frustrated or made objectively impossible.

Section (3) provides that this act shall take effect immediately and
expires one year after taking effect.

 
JUSTIFICATION:

Our local small businesses are essential to maintaining a vibrant and
diverse community. COVID-19 has brought great strain upon small busi-
ness, forcing many to either temporarily shut down or scale back their
operations. When the New York Court system announced that settlement
conferences are a required pre-requisite to residential evictions as a
consequence of foreclosure, they did not address the need to help
rebuild small businesses, protect the character of our communities, and
prevent the spread of vacant neighborhood storefronts. Moreover, settle-
ment conferences are likely to be more productive in the commercial
context where the parties are generally represented by counsel and can
more readily communicate via phone or video conference. Main Street
makes clear that New Yorkers are not going to leave small businesses to
shudder their doors and terminate valuable, long-term leasehold inter-
est, specifically where the amount of rent due is in dispute or other-
wise can be resolved as part of a mutually agreeable resolution.

 
PRIOR LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and expires one year after taking
effect.