NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8967A
SPONSOR: Rosenthal L TITLE OF BILL:
An act to amend the real property law, in relation to prohibiting resi-
dential landlords from charging tenants with fees for the payment of
rent through an automated clearing house or online payment system
PURPOSE:
This legislation will ensure tenants who pay rent via online portals do
not face additional charges or fees.
SUMMARY OF SPECIFIC PROVISIONS:
Section one amends section 235-g of the real property law by adding new
subdivisions 2 and 3.
Section two establishes the effective date.
JUSTIFICATION:
As with other monthly bills, many tenants now pay their rent via online
platforms, such as automated clearing house (ACH) systems that electron-
ically transfer funds from one's bank account to the building owner's
account. While these systems provide a convenient way to pay and receive
rent, some charge tenants a fee to use them. This legislation will
prohibit building owners from imposing a fee or other charge on tenants
who elect to pay rent through an online platform.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8967--A
IN ASSEMBLY
January 31, 2024
___________
Introduced by M. of A. L. ROSENTHAL -- read once and referred to the
Committee on Housing -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the real property law, in relation to prohibiting resi-
dential landlords from charging tenants with fees for the payment of
rent through an automated clearing house or online payment system
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 235-g of the real property law, as added by chapter
2 367 of the laws of 2010, is amended to read as follows:
3 § 235-g. Electronic billing and/or payment of rent. 1. A landlord
4 shall not require a lessee or tenant to use an electronic billing and/or
5 payment system as the only method for the payment of rent. A landlord
6 shall not assess any fee or other charge for a lessee or tenant that
7 chooses not to use an electronic billing and/or payment system.
8 2. A landlord shall not assess any fee or other charge for the use of
9 an automated clearing house payment for the payment of rent.
10 3. A landlord shall provide a lessee or tenant a method for the
11 payment of rent that does not incur a fee or other charge assessed by
12 the landlord. This method may include but is not limited to cash or
13 personal check of the lessee or tenant.
14 4. Any agreement by a lessee or tenant of a dwelling waiving or modi-
15 fying [his or her] their rights as set forth in this section shall be
16 void as contrary to public policy.
17 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14021-02-4
