S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    538
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens. THOMAS, SKOUFIS -- read twice and ordered printed,
   and when  printed  to  be  committed  to  the  Committee  on  Consumer
   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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01895-01-3
              

 S. 538                              2
 
 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.