S T A T E O F N E W Y O R K
________________________________________________________________________
6060--A
2011-2012 Regular Sessions
I N A S S E M B L Y
March 4, 2011
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Introduced by M. of A. LANCMAN, BRONSON, SCARBOROUGH, ROBERTS, WEPRIN,
MILLMAN, LAVINE, COLTON, GABRYSZAK, P. RIVERA -- Multi-Sponsored by --
M. of A. ABINANTI, CROUCH, DUPREY, GUNTHER, P. LOPEZ, McDONOUGH,
MONTESANO, TENNEY, THIELE, TITONE -- read once and referred to the
Committee on Economic Development -- reference changed to the Commit-
tee on Codes -- committee discharged, bill amended, ordered reprinted
as amended and recommitted to said committee
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:
Section 1. Short title. This act shall be known and may be cited as
the "institutional investor recovery act".
S 2. The general business law is amended by adding a new section 353-b
to read as follows:
S 353-B. ACTION BY CERTAIN PUBLIC RETIREMENT SYSTEMS AND MULTI-EMPLOY-
ER HEALTH AND WELFARE RETIREMENT PLANS ORGANIZED UNDER THE TAFT-HARTLEY
ACT. (A) ANY PUBLIC RETIREMENT SYSTEM AS DEFINED IN SUBDIVISION TWEN-
TY-THREE OF SECTION FIVE HUNDRED ONE OF THE RETIREMENT AND SOCIAL SECU-
RITY LAW, OR ANY MULTI-EMPLOYER HEALTH AND WELFARE RETIREMENT PLAN
ORGANIZED UNDER THE TAFT-HARTLEY ACT AND INCORPORATED UNDER THE LAWS OF
THIS STATE OR WHICH MAINTAINS ITS PRINCIPAL PLACE OF BUSINESS IN THIS
STATE, THAT IS DAMAGED IN CONNECTION WITH THE PURCHASE OR SALE OF A
SECURITY AS A RESULT OF THE COMMISSION OF ANY ACT PROHIBITED BY SECTION
THREE HUNDRED FIFTY-TWO-C OF THIS ARTICLE, MAY BRING AN ACTION FOR
DAMAGES AGAINST ANY PERSON, PARTNERSHIP, CORPORATION, COMPANY, LIMITED
LIABILITY COMPANY, TRUST, OR ASSOCIATION THAT COMMITTED, AIDED OR ABET-
TED OR IN ANY WAY PARTICIPATED IN THE COMMISSION OF SUCH PROHIBITED ACT.
(B) NO PUBLIC RETIREMENT SYSTEM OR MULTI-EMPLOYER HEALTH AND WELFARE
RETIREMENT PLANS ORGANIZED UNDER THE TAFT-HARTLEY ACT THAT HAD FEWER
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06099-10-1
A. 6060--A 2
THAN ONE HUNDRED BENEFICIARIES AT THE TIME OF THE PURCHASE OR SALE OF
THE SECURITY MAY BRING AN ACTION UNDER THIS SECTION.
(C) NO SUCH ACTION MAY BE BROUGHT MORE THAN SIX YEARS FROM THE TIME
THE PLAINTIFF DISCOVERED THE ALLEGEDLY PROHIBITED ACT OR COULD, WITH
REASONABLE DILIGENCE, HAVE DISCOVERED IT.
(D) AFTER SUCH ACTION HAS BEEN BROUGHT, NOTWITHSTANDING ANY PROVISION
OF LAW TO THE CONTRARY, DISCLOSURE AND RELATED PROCEEDINGS SHALL NOT BE
STAYED DURING THE PENDENCY OF ANY MOTION TO DISMISS, UNLESS THE COURT SO
DIRECTS.
S 3. Section 353 of the general business law is amended by adding a
new subdivision 4 to read as follows:
4. NOTHING IN THIS ARTICLE SHALL PREEMPT ANY PURCHASER OR SELLER OF
SECURITIES OR COMMODITIES FROM BRINGING ANY COMMON LAW CLAIMS CONCERNING
ANY ALLEGED DECEPTION, MISREPRESENTATION, CONCEALMENT, SUPPRESSION,
FRAUD, FALSE PRETENSE OR FALSE PROMISE MADE IN CONNECTION WITH THE SALE
OR PURCHASE OF SUCH SECURITIES OR COMMODITIES AS DESCRIBED IN SECTION
THREE HUNDRED FIFTY-TWO OF THIS ARTICLE.
S 4. This act shall take effect immediately and shall apply to causes
of action accruing and actions pending before, on, or after its effec-
tive date.