S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9674
 
                           I N  A S S E M B L Y
 
                              March 28, 2022
                                ___________
 
 Introduced  by M. of A. VANEL -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation  to  certain  real
   estate syndication offerings
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Subdivision 4 of section 157 of the general  business  law,
 as  added  by  chapter  754  of  the laws of 1990, is amended to read as
 follows:
   4. "Time share" means an interest in any arrangement, plan, scheme, or
 similar device, whether by membership,  agreement,  tenancy  in  common,
 sale,  lease, deed, rental agreement, license, or right-to-use agreement
 or by any other means, whereby [three or] more THAN TEN  purchasers,  in
 exchange  for a consideration, receive ownership rights in or a right to
 use the same accommodations or facilities in real property, or both, for
 different intervals of less than a full year during any given year,  but
 not  necessarily for consecutive years, and which extend for a period of
 more than three years  or  which,  for  nominal  consideration,  may  be
 renewed to continue for a period of more than three years.
   §  2.  Paragraph  (a) of subdivision 1 of section 352-e of the general
 business law, as amended by chapter 1085 of the laws of 1968, is amended
 to read as follows:
   (a) It shall be illegal and prohibited for  any  person,  partnership,
 corporation,  company,  trust  or  association, or any agent or employee
 thereof, to make or take part in a public offering or sale  in  or  from
 the  state of New York of securities constituted of participation inter-
 ests or investments in  real  estate,  mortgages  or  leases,  including
 stocks, bonds, debentures, evidences of interest or indebtedness, limit-
 ed  partnership  interests or other security or securities as defined in
 section three hundred fifty-two of this article,  when  such  securities
 consist  primarily  of  participation interests or investments in one or
 more real estate ventures, including cooperative  interests  in  realty,
 unless and until there shall have been filed with the department of law,
 prior  to  such offering, a written statement or statements, to be known
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11588-01-1
 A. 9674                             2
 
 as an "offering statement" or "prospectus" concerning  the  contemplated
 offering   which  shall  contain  the  information  and  representations
 required by paragraph (b) of this subdivision unless the security offer-
 ing  is  exempted  hereunder  or  under SUBDIVISION TWO OF section three
 hundred fifty-nine-f[, subdivision two,] of  this  article  by  rule  or
 action  of the attorney general.  PROVIDED HOWEVER, FOR PURPOSES OF THIS
 SECTION TIMESHARING PLANS INVOLVING TEN OR  FEWER  PURCHASERS  SHALL  BE
 EXEMPTED  FROM  FILING  REQUIREMENTS  UNDER THIS SECTION. The term "real
 estate" as used in [the] THIS paragraph shall not include  mineral,  oil
 or  timber leases or properties, or buildings, structures, land or other
 realty housing or containing business  offices  or  industry,  owned  or
 leased  by  the issuer, where the issuer is not primarily engaged in the
 business of buying and selling such building, TIMESHARING PLANS  INVOLV-
 ING TEN OR FEWER PURCHASERS or other realty or leases or interests ther-
 ein.  The  circulation  or  dissemination of a non-firm offer (including
 circulation or dissemination of a  preliminary  prospectus  pursuant  to
 section  ten (b) of the securities act of nineteen hundred thirty-three,
 and the rules thereto  appertaining)  shall  not  constitute  making  or
 taking part in a public offering within the meaning of this section.
   §  3.  This  act shall take effect on the ninetieth day after it shall
 become a law.   Effective immediately, the  addition,  amendment  and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9674--A
 
                           I N  A S S E M B L Y
 
                              March 28, 2022
                                ___________
 
 Introduced  by M. of A. VANEL, J. A. GIGLIO -- read once and referred to
   the  Committee  on  Consumer  Affairs  and  Protection  --   committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend the general business law, in relation to certain real
   estate syndication offerings

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision 4 of section 157 of the general business law,
 as added by chapter 754 of the laws of  1990,  is  amended  to  read  as
 follows:
   4. "Time share" means an interest in any arrangement, plan, scheme, or
 similar  device,  whether  by  membership, agreement, tenancy in common,
 sale, lease, deed, rental agreement, license, or right-to-use  agreement
 or  by  any other means, whereby [three or] more THAN TEN purchasers, in
 exchange for a consideration, receive ownership rights in or a right  to
 use the same accommodations or facilities in real property, or both, for
 different  intervals of less than a full year during any given year, but
 not necessarily for consecutive years, and which extend for a period  of
 more  than  three  years  or  which,  for  nominal consideration, may be
 renewed to continue for a period of more than three years.
   § 2. Paragraph (a) of subdivision 1 of section 352-e  of  the  general
 business law, as amended by chapter 1085 of the laws of 1968, is amended
 to read as follows:
   (a)  It  shall  be illegal and prohibited for any person, partnership,
 corporation, company, trust or association, or  any  agent  or  employee
 thereof,  to  make  or take part in a public offering or sale in or from
 the state of New York of securities constituted of participation  inter-
 ests  or  investments  in  real  estate,  mortgages or leases, including
 stocks, bonds, debentures, evidences of interest or indebtedness, limit-
 ed partnership interests or other security or securities as  defined  in
 section  three  hundred  fifty-two of this article, when such securities
 consist primarily of participation interests or investments  in  one  or
 more  real  estate  ventures, including cooperative interests in realty,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11588-03-2
 A. 9674--A                          2
 
 unless and until there shall have been filed with the department of law,
 prior to such offering, a written statement or statements, to  be  known
 as  an  "offering statement" or "prospectus" concerning the contemplated
 offering   which  shall  contain  the  information  and  representations
 required by paragraph (b) of this subdivision unless the security offer-
 ing is exempted hereunder or under  SUBDIVISION  TWO  OF  section  three
 hundred  fifty-nine-f[,  subdivision  two,]  of  this article by rule or
 action of the attorney general.  PROVIDED HOWEVER, FOR PURPOSES OF  THIS
 SECTION  TIMESHARING  PLANS  INVOLVING  TEN OR FEWER PURCHASERS SHALL BE
 EXEMPTED FROM FILING REQUIREMENTS UNDER THIS SECTION IF SUCH  PURCHASERS
 OBTAIN  USE RIGHTS OR OWNERSHIP RIGHTS IN A SINGLE PROPERTY OR UNIT, THE
 SALE PRICE OF WHICH EXCEEDS TWO TIMES THE MEDIAN SALES PRICE  FOR  RESI-
 DENTIAL  REAL  PROPERTY FOR THE COUNTY IN WHICH SUCH PROPERTY OR UNIT IS
 LOCATED, AS DETERMINED BY THE  COMMISSIONER  OF  TAXATION  AND  FINANCE,
 EXCEPT  THAT,  FOR  A SINGLE PROPERTY OR UNIT LOCATED IN A CITY HAVING A
 POPULATION IN EXCESS OF ONE MILLION, TO RECEIVE SUCH EXEMPTION, THE SALE
 PRICE OF SUCH  SINGLE  PROPERTY  OR  UNIT  SHALL  EXCEED  THREE  MILLION
 DOLLARS,  PROVIDED  THAT  SUCH SALE PRICE IS ADJUSTED ANNUALLY BEGINNING
 MARCH FIRST, TWO THOUSAND TWENTY-FOUR AND BY EACH MARCH FIRST THEREAFTER
 BY THE AVERAGE QUARTERLY VALUE OF THE HOUSING PRICE INDEX FOR NEW  YORK-
 JERSEY  CITY-WHITE  PLAINS, NY-NJ, OR ANY SUCCESSOR METROPOLITAN STATIS-
 TICAL AREA CONTAINING NEW YORK CITY,  PUBLISHED  BY  THE  UNITED  STATES
 FEDERAL  HOUSING FINANCE AGENCY FOR THE PREVIOUS CALENDAR YEAR. The term
 "real estate" as used in [the] THIS paragraph shall not include mineral,
 oil or timber leases or properties, or buildings,  structures,  land  or
 other  realty  housing or containing business offices or industry, owned
 or leased by the issuer, where the issuer is not  primarily  engaged  in
 the  business  of  buying  and  selling such building, TIMESHARING PLANS
 INVOLVING TEN OR FEWER PURCHASERS IF SUCH PURCHASERS OBTAIN  USE  RIGHTS
 OR  OWNERSHIP  RIGHTS  IN  A  SINGLE PROPERTY OR UNIT, THE SALE PRICE OF
 WHICH EXCEEDS TWO TIMES THE MEDIAN  SALES  PRICE  FOR  RESIDENTIAL  REAL
 PROPERTY  FOR  THE  COUNTY IN WHICH SUCH PROPERTY OR UNIT IS LOCATED, AS
 DETERMINED BY THE COMMISSIONER OF TAXATION AND FINANCE, EXCEPT THAT, FOR
 A SINGLE PROPERTY OR UNIT LOCATED IN  A  CITY  HAVING  A  POPULATION  IN
 EXCESS  OF  ONE  MILLION, THE SALE PRICE OF SUCH SINGLE PROPERTY OR UNIT
 SHALL EXCEED THREE MILLION DOLLARS, PROVIDED THAT  SUCH  SALE  PRICE  IS
 ADJUSTED ANNUALLY BEGINNING MARCH FIRST, TWO THOUSAND TWENTY-FOUR AND BY
 EACH  MARCH FIRST THEREAFTER BY THE AVERAGE QUARTERLY VALUE OF THE HOUS-
 ING PRICE INDEX FOR NEW YORK-JERSEY CITY-WHITE  PLAINS,  NY-NJ,  OR  ANY
 SUCCESSOR  METROPOLITAN  STATISTICAL  AREA  CONTAINING  NEW  YORK  CITY,
 PUBLISHED BY THE UNITED STATES FEDERAL HOUSING FINANCE  AGENCY  FOR  THE
 PREVIOUS  CALENDAR YEAR, or other realty or leases or interests therein.
 The circulation or dissemination of a non-firm offer  (including  circu-
 lation  or dissemination of a preliminary prospectus pursuant to section
 ten (b) of the securities act of nineteen hundred thirty-three, and  the
 rules  thereto  appertaining) shall not constitute making or taking part
 in a public offering within the meaning of this section.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.