S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7941
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              August 4, 2023
                                ___________
 
 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.
                                                            LBD11409-02-3
              

 A. 7941                             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.