H.B. 581 Summary

• Prohibits commercial landlords from initiating or continuing eviction proceedings or collecting past-due rent from impacted commercial tenants during any COVID-19 emergency proclamation and for 90 days after it ends, provided the tenant serves written notice of impacted status.

• Requires unpaid rent accrued during the emergency proclamation to be due at the end of the month containing the date 12 months after the proclamation ends, unless landlord and tenant agree otherwise.

• Allows impacted commercial tenants to negotiate lease modifications during the emergency or within 60 days after, with right to terminate the lease with 14 days' notice if no agreement is reached within 30 days.

• Upon lease termination and vacating within 14 days, tenant liability is limited to the lesser of three months' rent or actual unpaid emergency rent, plus any pre-emergency unpaid rent; all guaranties terminate and become unenforceable.

• Establishes civil penalties of $250 to $2,000 per incident for willful violations plus actual damages and attorney's fees; applies to tenants with 20% revenue decline, prevented openings, or 15% capacity reductions due to COVID-19.

• Act sunsets and is repealed on July 1, 2022.