ALBANY, N.Y. — It is no secret that the hospitality industry has been among those impacted the most since the COVID-19 pandemic took hold last spring.
Now two downstate legislators have introduced a package of bills in Albany trying to provide some relief to bars, restaurants and hotels that are struggling.
Senator Diane Savino (D-Staten Island/Brooklyn) and Assemblyman Mike Cusik (D-Staten Island) say the legislation includes a Hospitality Relief Fund and amnesty from fines imposed by the State Liquor Authority (SLA).
“We’ve seen bars and restaurants across the city and state be forced to close due to the COVID-19 pandemic. Many more are struggling to find a way to keep the doors open as we enter the winter months. These businesses are not just places we enjoy a night out at, they employ hundreds of thousands of people and the products they purchase have an economic impact across the state. This package is a step towards making them whole and ensuring that they can continue to operate here in New York,” said Senator Diane Savino (D-Staten Island/Brooklyn).
The proposed package calls for:
- Passage of the business interruption bill, S8211/A10226, which will hold harmless businesses and nonprofits that currently hold business interruption insurance for losses sustained because of the COVID-19 pandemic, but for which no such coverage is currently being provided;
- The Superintendent of Financial Services to create a Hospitality Relief Fund, requiring all insurers that issue commercial general liability policies in New York to contribute to a fund to ensure the businesses they rely on are able to continue to operate;
- The creation of a temporary Hospitality Business Relief Insurance Credit for businesses with a CGL policy in 2020. As businesses did not operate for up to 75% of the year their insurance covered them, insurers faced no risk. Insurers should provide a credit back to businesses in an amount to be determined that reflects the dramatically reduced risk carried in 2020;
- Amnesty for struggling businesses from fines imposed by the State Liquor Authority;
- Providing commercial rent relief for businesses.
“Bars and restaurants were among the first business to close, the last to reopen, and are struggling to recover financially. More needs to be done for New York’s businesses, but we can start with these proposals,” said Assemblyman Mike Cusick (D-Staten Island).
Both legislators urge swift passage of these proposals to prevent the potential for permanent loss of thousands jobs, businesses and revenue.
