Bill Text: NY S00538 | 2023-2024 | General Assembly | Introduced
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: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2024-01-03 - REFERRED TO CONSUMER PROTECTION [S00538 Detail]
Download: New_York-2023-S00538-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 538 2023-2024 Regular Sessions IN SENATE 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: 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 more than ten purchasers, or, in a city 8 with a population of one million or more, three or more purchasers, in 9 exchange for a consideration, receive ownership rights in or a right to 10 use the same accommodations or facilities in real property, or both, for 11 different intervals of less than a full year during any given year, but 12 not necessarily for consecutive years, and which extend for a period of 13 more than three years or which, for nominal consideration, may be 14 renewed to continue for a period of more than three years. 15 § 2. Paragraph (a) of subdivision 1 of section 352-e of the general 16 business law, as amended by chapter 1085 of the laws of 1968, is amended 17 to read as follows: 18 (a) It shall be illegal and prohibited for any person, partnership, 19 corporation, company, trust or association, or any agent or employee 20 thereof, to make or take part in a public offering or sale in or from 21 the state of New York of securities constituted of participation inter- 22 ests or investments in real estate, mortgages or leases, including 23 stocks, bonds, debentures, evidences of interest or indebtedness, limit- 24 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. LBD01895-01-3S. 538 2 1 section three hundred fifty-two of this article, when such securities 2 consist primarily of participation interests or investments in one or 3 more real estate ventures, including cooperative interests in realty, 4 unless and until there shall have been filed with the department of law, 5 prior to such offering, a written statement or statements, to be known 6 as an "offering statement" or "prospectus" concerning the contemplated 7 offering which shall contain the information and representations 8 required by paragraph (b) of this subdivision unless the security offer- 9 ing is exempted hereunder or under subdivision two of section three 10 hundred fifty-nine-f[, subdivision two,] of this article by rule or 11 action of the attorney general. Provided however, for purposes of this 12 section, except in a city with a population of one million or more, 13 timesharing plans involving ten or fewer purchasers shall be exempted 14 from filing requirements under this section if such purchasers obtain 15 use rights or ownership rights in a single property or unit, the sale 16 price of which exceeds two times the median sales price for residential 17 real property for the county in which such property or unit is located, 18 as determined by the commissioner of taxation and finance. The term 19 "real estate" as used in [the] this paragraph shall not include mineral, 20 oil or timber leases or properties, or buildings, structures, land or 21 other realty housing or containing business offices or industry, owned 22 or leased by the issuer, where the issuer is not primarily engaged in 23 the business of buying and selling such building, except in a city with 24 a population of one million or more, timesharing plans involving ten or 25 fewer purchasers if such purchasers obtain use rights or ownership 26 rights in a single property or unit, the sale price of which exceeds two 27 times the median sales price for residential real property for the coun- 28 ty in which such property or unit is located, as determined by the 29 commissioner of taxation and finance, or other realty or leases or 30 interests therein. The circulation or dissemination of a non-firm offer 31 (including circulation or dissemination of a preliminary prospectus 32 pursuant to section ten (b) of the securities act of nineteen hundred 33 thirty-three, and the rules thereto appertaining) shall not constitute 34 making or taking part in a public offering within the meaning of this 35 section. 36 § 3. This act shall take effect on the ninetieth day after it shall 37 have become a law. Effective immediately, the addition, amendment 38 and/or repeal of any rule or regulation necessary for the implementation 39 of this act on its effective date are authorized to be made and 40 completed on or before such effective date.
