S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8266
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 11, 2019
                                ___________
 
 Introduced by M. of A. LENTOL -- read once and referred to the Committee
   on Cities
 
 AN  ACT  to  amend  the  administrative code of the city of New York, in
   relation to commercial rent protections
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Title 22 of the administrative code of the city of New York
 is amended by adding a new chapter 12 to read as follows:
 
                                 CHAPTER 12
                           COMMERCIAL TENANCIES
 
   §  22-1201 DEFINITIONS. A. "COMMERCIAL PREMISES" SHALL MEAN A BUILDING
 OR SPACE OCCUPIED FOR NON-RESIDENTIAL PURPOSES INCLUDING, BUT NOT LIMIT-
 ED TO, MANUFACTURING, RETAIL, PROFESSIONAL SERVICES,  OFFICES,  ASSEMBL-
 ING,  PROCESSING,  CULTURAL AND NOT-FOR-PROFIT ENTITIES THAT ARE PRESENT
 IN THE CITY OF NEW YORK, WHO HAVE A VALID COMMERCIAL LEASE.
   B. "LANDLORD" SHALL MEAN ANY OWNER, LESSOR, SUBLESSOR OR OTHER  PERSON
 ENTITLED  TO  RECEIVE  RENT  FOR  THE USE OR OCCUPANCY OF ANY COMMERCIAL
 PREMISES, OR AN AGENT THEREOF.
   C. "RENT" SHALL MEAN ANY AND  ALL  CONSIDERATION,  INCLUDING  BUT  NOT
 LIMITED  TO PASS-ALONGS, RECEIVED BY THE LANDLORD IN CONNECTION WITH THE
 USE OR OCCUPANCY OF ANY COMMERCIAL PREMISES.
   D. "TENANT" SHALL MEAN TENANT, SUBTENANT, LESSEE,  SUBLESSEE,  OR  ANY
 OTHER  PERSONS  LAWFULLY  ENTITLED TO USE OR OCCUPANCY OF ANY COMMERCIAL
 PREMISES.
   § 22-1203 COMMERCIAL RENT REQUIREMENTS. A. THE RENT FOR ANY COMMERCIAL
 PREMISES SHALL NOT BE INCREASED BY THE LANDLORD DURING THE TERM  OF  THE
 LEASE, WITHOUT THE WRITTEN CONSENT OF THE TENANT, FOR ANY REASON WITHOUT
 A  DETERMINATION BY AN ARBITRATOR THAT SUCH RENT INCREASE IS NOT FRAUDU-
 LENT AND IS NOT ABOVE THE FAIR MARKET VALUE OF THE COMMERCIAL PREMISES.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13144-02-9

 A. 8266                             2
 
   B. ALL ARBITRATION CONDUCTED FOR THE PURPOSES OF THIS SECTION SHALL BE
 SUBJECT TO THE PROVISIONS OF ARTICLE SEVENTY-FIVE OF THE CIVIL  PRACTICE
 LAW  AND  RULES. THE LANDLORD AND THE ARBITRATOR SHALL MAKE A GOOD FAITH
 EFFORT TO ALLOW THE TENANT TO ATTEND AND BE HEARD AT A  HEARING  AND  TO
 HAVE REASONABLE TIME TO PREPARE FOR SUCH HEARING.
   C.  IN THE EVENT THAT A TENANT DOES NOT BELIEVE A RENT INCREASE WAS IN
 COMPLIANCE WITH SUBDIVISION A OF THIS SECTION, THE TENANT  MAY  BRING  A
 CIVIL  ACTION IN A COURT OF COMPETENT JURISDICTION FOR INJUNCTIVE RELIEF
 AND SUCH OTHER REMEDIES AS MAY BE APPROPRIATE. IF  THE  COURT  FINDS  IN
 FAVOR  OF  THE  TENANT, IT SHALL AWARD SUCH PERSON, IN ADDITION TO OTHER
 RELIEF, REASONABLE ATTORNEY'S FEES AND COSTS.
   § 22-1205 RETALIATION. NO LANDLORD SHALL IN ANY WAY RETALIATE  AGAINST
 ANY  TENANT  FOR  THE TENANT'S ASSERTION OR EXERCISE OF ANY RIGHTS UNDER
 THIS CHAPTER.  ANY SUCH RETALIATION MAY SUBJECT THE LANDLORD TO  A  SUIT
 FOR ACTUAL AND PUNITIVE DAMAGES, INJUNCTIVE RELIEF, AND ATTORNEY'S FEES.
   §  22-1207  WAIVER.  NO  PROVISION  IN ANY LEASE, RENTAL AGREEMENT, OR
 AGREEMENT MADE IN CONNECTION WITH A LEASE WHICH WAIVES OR DIMINISHES ANY
 RIGHT OF THE TENANT UNDER THIS CHAPTER IS VALID.
   § 22-1209 INCONSISTENCY WITH OTHER LAWS. IN THE EVENT  OF  ANY  INCON-
 SISTENCY WITH ANY OTHER LAWS OF THE CITY OF NEW YORK, THIS CHAPTER SHALL
 TAKE PRECEDENCE.
   §  22-1211 COMMERCIAL LEASE REQUIREMENTS. A. THE LEASE FOR ANY COMMER-
 CIAL PREMISES SHALL NOT CONTAIN A WAIVER OF  THE  RIGHT  TO  SEEK  COURT
 INTERVENTION OR JUDICIAL REDRESS FOR ANY ISSUE ARISING UNDER THE LEASE.
   B.  ANY PROVISION IN ANY LEASE, RENTAL AGREEMENT, OR AGREEMENT MADE IN
 CONNECTION WITH A LEASE WHICH WAIVES OR DIMINISHES ANY OF THE RIGHTS  TO
 JUDICIAL  INTERVENTION  OR  REDRESS  UNDER  THIS CHAPTER SHALL BE DEEMED
 INVALID.
   § 2. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid  and  after  exhaustion  of all further judicial review, the
 judgment shall not affect, impair or invalidate the  remainder  thereof,
 but  shall  be  confined in its operation to the clause, sentence, para-
 graph, section or part of this act directly involved in the  controversy
 in which the judgment shall have been rendered.
   §  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.