What's happening
This bill prohibits coworking and shared workspaces from charging membership fees or rent during a state disaster emergency if use is disrupted or customers face financial hardship.
Why it matters
Protects small businesses, freelancers, and entrepreneurs. who rely on coworking spaces by preventing them from being charged fees when they are unable to use the space during state disaster emergencies, helping them conserve cash during crises.
Establishes legal clarity and fairness. by recognizing situations where use of the workspace is impossible, illegal, or impractical, or where the purpose of the contract is frustrated, thus reducing the likelihood of disputes between customers and coworking providers.
Addresses financial hardship explicitly. , allowing individuals to demonstrate inability to pay, which can be a lifeline for those whose income is disrupted during emergencies, rather than enforcing blanket rent obligations.
Imposes enforceable penalties. (up to $1,000 per violation), creating a real deterrent for coworking businesses that might otherwise attempt to collect fees in violation of these protections.
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Who cares
Headline styles
Pause Coworking Fees in Emergencies
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to consumer protection
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8288
IN SENATE
May 6, 2020
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection
AN ACT to amend the general business law, in relation to prohibiting the charging of certain membership fees or rent for coworking spaces or shared workspaces during a state disaster emergency
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 399-vv to read as follows:
§ 399-vv. Prohibition of certain membership fee or rent charges. 1. During a state disaster emergency, declared pursuant to article two-B of the executive law, no person, partnership, corporation, association or other business entity shall charge a consumer any contracted membership fee or rent for any coworking space or shared workspace when, due to such state disaster emergency:
(a) the use of such coworking space or shared workplace:
(i) has ceased, partially or fully;
(ii) has been rendered impossible, illegal or impractical; or
(iii) the non-use of such coworking space or shared workspace, or the non-rendering or the non-use of a contracted service related thereto, has frustrated the purpose of the contract; or
(b) a consumer would experience and demonstrates financial hardship if he or she were to pay such membership fee or rent.
2. Every violation of this section shall be punishable by a civil penalty not to exceed one thousand dollars.
3. Nothing in this section shall be construed to restrict any right which any person may have under any other statute or the common law.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16112-03-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to prohibiting the charging of certain membership fees or rent for coworking spaces or shared workspaces during a state disaster emergency
Purpose
The proposed legislation seeks to prevent shared working spaces agency/corporation from charging rent and membership fees during the current COVID-19 pandemic
Summary of provisions
Section 1 amends the General Business Law by adding a new section 399-vv to prevent shared working spaces organization from continuously charging monthly rent and membership fees to members who cannot access the facil- ities.
Section 2 provides that a violation shall be punishable by a civil penalty not to exceed on thousand dollars.
Section 3 sets forth the effective date.
Justification
Co-working companies, such as WeWork, provide office space, desk space, and an overall office atmosphere to entrepreneurs and small businesses that would otherwise be too expensive for these businesses to obtain and maintain. In response to COVID-19, the Governor issued a series of exec- utive orders that effectively shuttered and precluded office-work for the foreseeable future; however, Co-working companies are continuously charging small businesses and entrepreneurs rent and membership fees although they cannot use the facilities, and are otherwise unable to afford the cost. This bill seeks to protect these small business owners during these times of crisis.
Legislative history
New Bill.
Fiscal implication
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.