Bill Text: NY S07091 | 2021-2022 | General Assembly | Amended

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 3-1)

Status: (Introduced - Dead) 2022-05-25 - PRINT NUMBER 7091B [S07091 Detail]

Download: New_York-2021-S07091-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         7091--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                      May 28, 2021
                                       ___________

        Introduced  by Sens. THOMAS, GAUGHRAN, SKOUFIS -- read twice and ordered
          printed, and when printed to be committed to the Committee on Consumer
          Protection -- recommitted to the Committee on Consumer  Protection  in
          accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11588-02-2
        S. 7091--A                          2

     1  consist primarily of participation interests or investments  in  one  or
     2  more  real  estate  ventures, including cooperative interests in realty,
     3  unless and until there shall have been filed with the department of law,
     4  prior  to  such offering, a written statement or statements, to be known
     5  as an "offering statement" or "prospectus" concerning  the  contemplated
     6  offering   which  shall  contain  the  information  and  representations
     7  required by paragraph (b) of this subdivision unless the security offer-
     8  ing is exempted hereunder or under  subdivision  two  of  section  three
     9  hundred  fifty-nine-f[,  subdivision  two,]  of  this article by rule or
    10  action of the attorney general.  Provided however, for purposes of  this
    11  section  timesharing  plans  involving  ten or fewer purchasers shall be
    12  exempted from filing requirements under this section if such  purchasers
    13  obtain  use rights or ownership rights in a single property or unit, the
    14  sale price of which exceeds two times the median sales price  for  resi-
    15  dential  real  property for the county in which such property or unit is
    16  located, as determined by the  commissioner  of  taxation  and  finance,
    17  except  that,  for  a single property or unit located in a city having a
    18  population in excess of one million, to receive such exemption, the sale
    19  price of such  single  property  or  unit  shall  exceed  three  million
    20  dollars,  provided  that  such sale price is adjusted annually beginning
    21  March first, two thousand twenty-four and by each March first thereafter
    22  by the average quarterly value of the housing price index for New  York-
    23  Jersey  City-White  Plains, NY-NJ, or any successor metropolitan statis-
    24  tical area containing New York city,  published  by  the  United  States
    25  federal  housing finance agency for the previous calendar year. The term
    26  "real estate" as used in [the] this paragraph shall not include mineral,
    27  oil or timber leases or properties, or buildings,  structures,  land  or
    28  other  realty  housing or containing business offices or industry, owned
    29  or leased by the issuer, where the issuer is not  primarily  engaged  in
    30  the  business  of  buying  and  selling such building, timesharing plans
    31  involving ten or fewer purchasers if such purchasers obtain  use  rights
    32  or  ownership  rights  in  a  single property or unit, the sale price of
    33  which exceeds two times the median  sales  price  for  residential  real
    34  property  for  the  county in which such property or unit is located, as
    35  determined by the commissioner of taxation and finance, except that, for
    36  a single property or unit located in  a  city  having  a  population  in
    37  excess  of  one  million, the sale price of such single property or unit
    38  shall exceed three million dollars, provided that  such  sale  price  is
    39  adjusted annually beginning March first, two thousand twenty-four and by
    40  each  March first thereafter by the average quarterly value of the hous-
    41  ing price index for New York-Jersey City-White  Plains,  NY-NJ,  or  any
    42  successor  metropolitan  statistical  area  containing  New  York  city,
    43  published by the United States federal housing finance  agency  for  the
    44  previous  calendar year, or other realty or leases or interests therein.
    45  The circulation or dissemination of a non-firm offer  (including  circu-
    46  lation  or dissemination of a preliminary prospectus pursuant to section
    47  ten (b) of the securities act of nineteen hundred thirty-three, and  the
    48  rules  thereto  appertaining) shall not constitute making or taking part
    49  in a public offering within the meaning of this section.
    50    § 3. This act shall take effect on the ninetieth day  after  it  shall
    51  have  become  a  law.    Effective  immediately, the addition, amendment
    52  and/or repeal of any rule or regulation necessary for the implementation
    53  of this act on  its  effective  date  are  authorized  to  be  made  and
    54  completed on or before such effective date.