NY State Senate Bill 2019-S8265

Senate Bill S8265

2019-2020 Legislative Session

Relates to permitting a residential tenant to utilize a security deposit to pay rent during a state disaster emergency

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 01, 2020	referred to judiciary

co-Sponsors

2019-S8265 (ACTIVE) - Details

Current Committee:: Senate Judiciary
Law Section:: General Obligations Law
Laws Affected:: Amd §7-108, Gen Ob L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S2000
2023-2024: S2055

2019-S8265 (ACTIVE) - Summary

Permits a residential tenant to utilize a security deposit to pay rent during a state disaster emergency if such tenant has had a loss of income or loss of employment due to such state disaster emergency, provides a one year period to replenish such security deposit.

2019-S8265 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8265

SPONSOR: JACKSON
 
TITLE OF BILL:

An act to amend the general obligations law, in relation to permitting a
tenant to utilize a security deposit to pay rent during a state disaster
emergency

 
PURPOSE:

The purpose of this legislation is to allow tenants to use their securi-
ty deposit, in whole or in part, in lieu of a rental payment as a result
of the loss of a job or income during a state disaster emergency.

 
SUMMARY OF PROVISIONS:

Section 1 adds a new subdivision 1-b to Section 7-108 of the General
Obligations Law that provides tenants may use their security deposit, in
whole or in part, in lieu of a rental payment or a portion thereof when
a tenant has lost their job or has a loss of income during a state

disaster emergency. Tenants will have the opportunity to replenish their
entire security deposit or the portions that were used for rental
payments within one year from the last date the security deposit was
used to make such payment. "Residential tenant" is also defined.

Section 2 is the effective date.

 
JUSTIFICATION:

Tenants in our state are facing an unprecedented crisis. Millions of New
Yorkers, gainfully employed just a few weeks ago, are facing a terrible
situation. They are out of their jobs with no paycheck in sight because
of the depth of the crisis we face.  The rent is due for many whose
wallets are empty. Adding to the stress they face from job loss is the
fear that they may lose the roofs over their heads, their home for their
families. This is a crisis not of their making, and our state has an
obligation to assist them during this time. And, given the millions of
renters in our state, we also must provide some relief for their proper-
ty owners who also face financial difficulties.

The clearest path forward is to allow tenants to use their security
deposits for rent payments during this hardship period. This bill builds
in safeguards for landlords so they will be compensated for this tempo-
rary financial pain they will suffer.  None of us anticipated a crisis
of this magnitude devastating our state. We must take dramatic steps to
help save working families in distress.

 
LEGISLATIVE HISTORY:

New bill.

 
STATE AND LOCAL FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to any lease or
rental agreement or renewal of a lease or rental agreement entered into
on or after such date.

2019-S8265 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8265
 
                             I N  S E N A T E
 
                                May 1, 2020
                                ___________
 
 Introduced  by  Sen. JACKSON -- read twice and ordered printed, and when
   printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the general obligations law, in relation to permitting a
   tenant to utilize a security deposit to pay rent during a state disas-
   ter emergency
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 7-108 of the general obligations law is amended by
 adding a new subdivision 1-b to read as follows:
   1-B. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY,  DURING
 A STATE DISASTER EMERGENCY AS DEFINED IN SECTION TWENTY OF THE EXECUTIVE
 LAW,  A  RESIDENTIAL TENANT WHO HAS SUFFERED A LOSS OF INCOME OR LOSS OF
 EMPLOYMENT AS A RESULT OF SUCH STATE DISASTER  EMERGENCY  MAY  ELECT  TO
 UTILIZE  ANY SUM OF MONEY DEPOSITED AS SECURITY FOR THE FULL PERFORMANCE
 BY SUCH RESIDENTIAL TENANT OF THE TERMS OF THE LEASE,  IN  WHOLE  OR  IN
 PART, TO PAY THE MONTHLY RENT DUE PURSUANT TO SUCH LEASE.
   (B)  A  RESIDENTIAL  TENANT  WHO  MAKES  AN  ELECTION  PURSUANT TO THE
 PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL REPLENISH ANY SUCH
 MONEY DEPOSITED AS SECURITY USED TO PAY RENT WITHIN ONE  YEAR  FROM  THE
 LAST DATE SUCH ELECTION WAS MADE.
   (C)  FOR  THE PURPOSES OF THIS SUBDIVISION, "RESIDENTIAL TENANT" SHALL
 MEAN: A TENANT AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF SECTION
 TWO HUNDRED THIRTY-FIVE-F OF THE REAL PROPERTY LAW; A PERSON WHO  OTHER-
 WISE  PAYS  FOR  THE  USE AND OCCUPANCY OF A RESIDENTIAL DWELLING; OR AN
 OCCUPANT, AS DEFINED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION  TWO
 HUNDRED THIRTY-FIVE-F OF THE REAL PROPERTY LAW.
   §  2.  This  act  shall take effect immediately and shall apply to any
 lease or rental agreement or renewal of  a  lease  or  rental  agreement
 entered into on or after such date.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16166-02-0

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Senate Bill S8265

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Sponsored By

Robert Jackson