S T A T E O F N E W Y O R K
________________________________________________________________________
934
2023-2024 Regular Sessions
I N A S S E M B L Y
January 11, 2023
___________
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 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
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.
LBD01895-01-3
A. 934 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, 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.