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.