Bill Text: NY A08066 | 2021-2022 | General Assembly | Introduced

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Bill Title: Exempts timesharing plans involving ten or fewer purchasers from certain filing requirements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-03-14 - enacting clause stricken [A08066 Detail]

Download: New_York-2021-A08066-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          8066

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                      June 11, 2021
                                       ___________

        Introduced by M. of A. THIELE -- 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:

     1    Section  1.  Subdivision 4 of section 157 of the general business law,
     2  as added by chapter 754 of the laws of  1990,  is  amended  to  read  as
     3  follows:
     4    4. "Time share" means an interest in any arrangement, plan, scheme, or
     5  similar  device,  whether  by  membership, agreement, tenancy in common,
     6  sale, lease, deed, rental agreement, license, or right-to-use  agreement
     7  or  by  any other means, whereby [three or] more than ten purchasers, in
     8  exchange for a consideration, receive ownership rights in or a right  to
     9  use the same accommodations or facilities in real property, or both, for
    10  different  intervals of less than a full year during any given year, but
    11  not necessarily for consecutive years, and which extend for a period  of
    12  more  than  three  years  or  which,  for  nominal consideration, may be
    13  renewed to continue for a period of more than three years.
    14    § 2. Paragraph (a) of subdivision 1 of section 352-e  of  the  general
    15  business law, as amended by chapter 1085 of the laws of 1968, is amended
    16  to read as follows:
    17    (a)  It  shall  be illegal and prohibited for any person, partnership,
    18  corporation, company, trust or association, or  any  agent  or  employee
    19  thereof,  to  make  or take part in a public offering or sale in or from
    20  the state of New York of securities constituted of participation  inter-
    21  ests  or  investments  in  real  estate,  mortgages or leases, including
    22  stocks, bonds, debentures, evidences of interest or indebtedness, limit-
    23  ed partnership interests or other security or securities as  defined  in
    24  section  three  hundred  fifty-two of this article, when such securities
    25  consist primarily of participation interests or investments  in  one  or

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11588-01-1
        A. 8066                             2

     1  more  real  estate  ventures, including cooperative interests in realty,
     2  unless and until there shall have been filed with the department of law,
     3  prior to such offering, a written statement or statements, to  be  known
     4  as  an  "offering statement" or "prospectus" concerning the contemplated
     5  offering  which  shall  contain  the  information  and   representations
     6  required by paragraph (b) of this subdivision unless the security offer-
     7  ing  is  exempted  hereunder  or  under subdivision two of section three
     8  hundred fifty-nine-f[, subdivision two,] of  this  article  by  rule  or
     9  action  of the attorney general.  Provided however, for purposes of this
    10  section timesharing plans involving ten or  fewer  purchasers  shall  be
    11  exempted  from  filing  requirements  under this section. The term "real
    12  estate" as used in [the] this paragraph shall not include  mineral,  oil
    13  or  timber leases or properties, or buildings, structures, land or other
    14  realty housing or containing business  offices  or  industry,  owned  or
    15  leased  by  the issuer, where the issuer is not primarily engaged in the
    16  business of buying and selling such building, timesharing plans  involv-
    17  ing ten or fewer purchasers or other realty or leases or interests ther-
    18  ein.  The  circulation  or  dissemination of a non-firm offer (including
    19  circulation or dissemination of a  preliminary  prospectus  pursuant  to
    20  section  ten (b) of the securities act of nineteen hundred thirty-three,
    21  and the rules thereto  appertaining)  shall  not  constitute  making  or
    22  taking part in a public offering within the meaning of this section.
    23    §  3.  This  act shall take effect on the ninetieth day after it shall
    24  become a law.   Effective immediately, the  addition,  amendment  and/or
    25  repeal  of  any  rule  or regulation necessary for the implementation of
    26  this act on its effective date are authorized to be made  and  completed
    27  on or before such effective date.