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.