Prohibits hotels, motels and lodging establishments from selling prepaid rooms to another person if the original guest fails to check in on the first day of the scheduled reservation or if the guest fails to check in within the first, second or third night for prepaid reservations of seven days or longer; provides penalties for violations.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7941
SPONSOR: Novakhov TITLE OF BILL:
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
PURPOSE:
To prohibit hotels and motels from reselling a prepaid room to another
party when the original purchaser did not check in on the first day of
their scheduled reservation.
SUMMARY OF PROVISIONS:
Section 1 contains the legislative intent.
Section 2 amends the general business law by adding a new section 210 to
prohibit hotel, motel or lodging establishments from selling a prepaid
room to a second person if the original guest fails to check in on the
first night.
Section 3 instructs the division of consumer protection to establish
regulations and guidelines for the implementation of this act
Section 4 includes the effective date.
JUSTIFICATION:
There have been cases where hotels, motels, and other lodging establish-
ments have rented prepaid rooms to another party if the original party
didn't arrive on time. Although the renter would have arrived late, the
room was already paid for, therefore not resulting in a lack of money
for the hotel or motel. Should the renter arrive later than originally
planned, they might discover that the room that they already paid for is
now occupied by someone else, potentially leaving them with no place to
stay. There is simply no justification for permitting this practice by
hotels or motels.
LEGISLATIVE HISTORY:
New Bill
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7941
2023-2024 Regular Sessions
IN ASSEMBLY
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:
1 Section 1. Legislative intent. The legislature finds that many hotel
2 reservations are prepaid in advance. Failure to check in on the first
3 night of a prepaid reservation can result in lost revenue for the hotel
4 and inconvenience for other guests. Some hotels have been known to sell
5 a prepaid room to a second person if the original guest fails to check
6 in, causing confusion and potential legal issues.
7 § 2. The general business law is amended by adding a new section 210
8 to read as follows:
9 § 210. Prepaid hotel reservations. 1. (a) Any hotel, motel or lodging
10 establishment shall be prohibited from selling a prepaid room to a
11 second person if the original guest fails to check in on the first night
12 of the originally scheduled reservation. If a reservation is scheduled
13 for seven days or longer, any hotel, motel or lodging establishment
14 shall be prohibited from selling a prepaid room to a second person if
15 the original guest fails to check in on the first, second or third night
16 of the originally scheduled reservation.
17 (b) It shall be required that any guest with a prepaid reservation at
18 a hotel, motel or lodging establishment who will not be checking in on
19 the first night of such reservation shall provide notice, by telephone
20 or electronic mail, to such hotel, motel or lodging establishment of
21 such late check-in. If such notice is not provided by the guest pursuant
22 to this paragraph, the provisions of paragraph (a) of this subdivision
23 shall not apply and such hotel, motel or lodging establishment where the
24 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
1 vation after twenty-four hours, unless the guest contacts such hotel,
2 motel or lodging establishment and cancels such reservation.
3 2. It shall be prohibited for any hotel, motel or lodging establish-
4 ment in any booking contract or agreement between such hotel, motel or
5 lodging establishment and a guest to include any provision that allows
6 such hotel, motel or lodging establishment to cancel a reservation,
7 charge a cancellation fee and rent out the reserved room to another
8 person when such reservation has been fully prepaid.
9 3. Any hotel, motel or lodging establishment that violates the
10 requirements of this section shall be responsible for any actual
11 damages, or a fine of five hundred dollars, whichever amount is greater,
12 per violation. A hotel, motel or lodging establishment charged with a
13 violation pursuant to this section shall have the right to appeal such
14 violation in a court of competent jurisdiction.
15 § 3. The division of consumer protection shall establish regulations
16 and guidelines for the implementation of this act, including but not
17 limited to the definition of a hotel, motel or lodging establishment.
18 § 4. This act shall take effect immediately and shall apply to all
19 hotels, motels and lodging establishments in the state of New York.
