Bill Text: NY A09674 | 2021-2022 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Exempts certain timesharing plans involving ten or fewer purchasers from certain filing requirements relating to real estate investments; excludes New York City.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2022-05-26 - print number 9674b [A09674 Detail]

Download: New_York-2021-A09674-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          9674

                   IN ASSEMBLY

                                     March 28, 2022
                                       ___________

        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:

     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
    26  more real estate ventures, including cooperative  interests  in  realty,
    27  unless and until there shall have been filed with the department of law,
    28  prior  to  such offering, a written statement or statements, to be known

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11588-01-1
        A. 9674                             2

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