S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7091--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 28, 2021
                                ___________
 
 Introduced  by Sens. THOMAS, GAUGHRAN, SKOUFIS -- read twice and ordered
   printed, and when printed to be committed to the Committee on Consumer
   Protection -- recommitted to the Committee on Consumer  Protection  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 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
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11588-02-2
 S. 7091--A                          2
 
 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
 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.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7091--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 28, 2021
                                ___________
 
 Introduced  by  Sens. THOMAS, BOYLE, GAUGHRAN, SKOUFIS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Consumer  Protection  --  recommitted  to  the  Committee  on Consumer
   Protection in accordance with Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  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 MORE THAN TEN PURCHASERS, OR, IN  A  CITY
 WITH  A  POPULATION OF ONE MILLION OR MORE, three or more 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11588-04-2
              

 S. 7091--B                          2
 
 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
 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,  EXCEPT  IN  A  CITY  WITH A POPULATION OF ONE MILLION OR MORE,
 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 RESIDENTIAL
 REAL PROPERTY FOR THE COUNTY IN WHICH SUCH PROPERTY OR UNIT IS  LOCATED,
 AS  DETERMINED  BY  THE  COMMISSIONER  OF TAXATION AND FINANCE. 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, EXCEPT IN A CITY WITH
 A POPULATION OF ONE MILLION OR MORE, 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 COUN-
 TY IN WHICH SUCH PROPERTY OR UNIT  IS  LOCATED,  AS  DETERMINED  BY  THE
 COMMISSIONER  OF  TAXATION  AND  FINANCE,  or  other realty or leases or
 interests therein. 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
 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.