Bill Text: NY S04497 | 2011-2012 | General Assembly | Introduced

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

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Bill Title: Enacts the "institutional investor recovery act"; relates to an action by certain public retirement systems or multi-employer health and welfare plans organized under the Taft-Hartley act.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO CONSUMER PROTECTION [S04497 Detail]

Download: New_York-2011-S04497-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4497
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                     April 7, 2011
                                      ___________
       Introduced  by  Sen.  LIBOUS -- 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  enacting  the
         "institutional investor recovery act"
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Short title.  This act shall be known and may be  cited  as
    2  the "institutional investor recovery act".
    3    S 2. The general business law is amended by adding a new section 353-b
    4  to read as follows:
    5    S 353-B. ACTION BY CERTAIN PUBLIC RETIREMENT SYSTEMS AND MULTI-EMPLOY-
    6  ER  HEALTH  AND WELFARE PLANS ORGANIZED UNDER THE TAFT-HARTLEY ACT.  (A)
    7  ANY PUBLIC RETIREMENT SYSTEM AS DEFINED IN SUBDIVISION  TWENTY-THREE  OF
    8  SECTION  FIVE  HUNDRED ONE OF THE RETIREMENT AND SOCIAL SECURITY LAW, OR
    9  ANY  MULTI-EMPLOYER  HEALTH  AND  WELFARE  PLAN  ORGANIZED   UNDER   THE
   10  TAFT-HARTLEY  ACT AND INCORPORATED UNDER THE LAWS OF THIS STATE OR WHICH
   11  MAINTAINS ITS PRINCIPAL PLACE OF BUSINESS IN THIS STATE, THAT IS DAMAGED
   12  IN CONNECTION WITH THE PURCHASE OR SALE OF A SECURITY AS A RESULT OF THE
   13  COMMISSION OF ANY ACT PROHIBITED BY SECTION THREE HUNDRED FIFTY-TWO-C OF
   14  THIS ARTICLE, MAY BRING AN ACTION FOR DAMAGES AGAINST ANY PERSON,  PART-
   15  NERSHIP,  CORPORATION,  COMPANY,  LIMITED  LIABILITY  COMPANY, TRUST, OR
   16  ASSOCIATION THAT COMMITTED OR PARTICIPATED IN  THE  COMMISSION  OF  SUCH
   17  PROHIBITED ACT.
   18    (B)  NO  PUBLIC RETIREMENT SYSTEM OR MULTI-EMPLOYER HEALTH AND WELFARE
   19  PLANS ORGANIZED UNDER THE TAFT-HARTLEY ACT  THAT  HAD  FEWER  THAN  FIVE
   20  HUNDRED BENEFICIARIES AT THE TIME OF THE PURCHASE OR SALE OF THE SECURI-
   21  TY MAY BRING AN ACTION UNDER THIS SECTION.
   22    (C) WITH RESPECT TO ALLEGATIONS THAT A REPRESENTATION OR STATEMENT WAS
   23  FALSE,  THE  PLAINTIFF WITH RESPECT TO ALLEGATIONS REQUIRED TO PLEAD AND
   24  PROVE THAT THE PERSON WHO MADE SUCH STATEMENT: (I) KNEW THE TRUTH;  (II)
   25  WITH REASONABLE EFFORT COULD HAVE KNOWN THE TRUTH; (III) MADE NO REASON-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06099-09-1
       S. 4497                             2
    1  ABLE  EFFORT  TO  ASCERTAIN  THE  TRUTH;  OR (IV) DID NOT HAVE KNOWLEDGE
    2  CONCERNING THE REPRESENTATION OR STATEMENT MADE. WITH RESPECT TO ALLEGA-
    3  TIONS OF ANY OTHER NATURE, THE PLAINTIFF IS REQUIRED TO PLEAD AND  PROVE
    4  THAT THE PERSON ACTED WITH NEGLIGENCE.
    5    (D)  NO  SUCH  ACTION MAY BE BROUGHT MORE THAN SIX YEARS FROM THE TIME
    6  THE PLAINTIFF DISCOVERED THE ALLEGEDLY PROHIBITED  ACT  OR  COULD,  WITH
    7  REASONABLE DILIGENCE, HAVE DISCOVERED IT.
    8    (E)  AFTER SUCH ACTION HAS BEEN BROUGHT, NOTWITHSTANDING ANY PROVISION
    9  OF LAW TO THE CONTRARY, DISCLOSURE AND RELATED PROCEEDINGS SHALL NOT  BE
   10  STAYED DURING THE PENDENCY OF ANY MOTION TO DISMISS, UNLESS THE COURT SO
   11  DIRECTS.
   12    S  3.  Section  353 of the general business law is amended by adding a
   13  new subdivision 4 to read as follows:
   14    4. NOTHING IN THIS ARTICLE SHALL PREEMPT ANY PURCHASER  OR  SELLER  OF
   15  SECURITIES OR COMMODITIES FROM BRINGING ANY COMMON LAW CLAIMS CONCERNING
   16  ANY  ALLEGED  DECEPTION,  MISREPRESENTATION,  CONCEALMENT,  SUPPRESSION,
   17  FRAUD, FALSE PRETENSE OR FALSE PROMISE MADE IN CONNECTION WITH THE  SALE
   18  OR  PURCHASE  OF  SUCH SECURITIES OR COMMODITIES AS DESCRIBED IN SECTION
   19  THREE HUNDRED FIFTY-TWO OF THIS ARTICLE.
   20    S 4. This act shall take effect immediately and shall apply to  causes
   21  of  action  accruing and actions pending before, on, or after its effec-
   22  tive date.