Bill > A00343

This bill establishes the "Save Merchants and Retail Tenants (SMART) Act," which creates a temporary state assistance fund to provide legal counsel for small businesses filing for bankruptcy under Chapter 11 of the federal bankruptcy code. The bill specifically targets businesses in New York that were adversely affected by COVID-19 or public health restrictions during the pandemic, offering them free legal services through the New York Office of Court Administration. Eligible "covered businesses" include small businesses, non-profits, limited partnerships, and other entities that primarily operate in New York and qualify under the Small Business Reorganization Act as amended by the CARES Act. The legal services will be available for bankruptcy proceedings filed before March 27, 2026, and will cover initial consultations and ongoing representation. The administrator will be responsible for ensuring independent and competent legal representation, monitoring service quality, and distributing funds to legal service providers. The legal assistance will terminate upon completion of the bankruptcy proceeding, at the recommendation of the U.S. trustee or bankruptcy judge, and does not cover appeals. The state will establish a dedicated fund with sufficient appropriations to support these legal services, with the administrator determining the necessary funding in consultation with the budget director.

Justice

https://www.nysenate.gov/legislation/bills/2025/A343