Assembly Bill A7304

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7304

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               May 4, 2015
                               ___________

Introduced by M. of A. ROBINSON -- (at request of the Department of Law)
  -- read once and referred to the Committee on Banks

AN  ACT  to  amend the general business law, the financial services law,
  the state finance law and the executive law, in relation to securities
  fraud whistleblower incentives and protections

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  353-a  of the general business law is renumbered
section 353-b and a new section 353-a is added to read as follows:
  S 353-A. SECURITIES FRAUD WHISTLEBLOWER  INCENTIVES  AND  PROTECTIONS.
1. DEFINITIONS. (A) "COVERED ENFORCEMENT ACTION" SHALL MEAN: (I) ANY ONE
OR  MORE  ENFORCEMENT  ACTIONS  BROUGHT  BY  THE  ATTORNEY GENERAL UNDER
SECTION THREE HUNDRED FIFTY-THREE OF THIS ARTICLE THAT RESULTS IN  MONE-
TARY  SANCTIONS  EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE; OR (II)
ANY INVESTIGATIONS, INQUIRIES, SETTLEMENTS OR ANY OTHER  ACTION  BROUGHT
OR MADE BY THE ATTORNEY GENERAL IN RELATION TO A VIOLATION OF THIS ARTI-
CLE  THAT RESULTS IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN
THE AGGREGATE.
  (B) "MONETARY SANCTIONS" SHALL MEAN:
  (I) ANY MONIES ORDERED TO BE PAID,  OR  THAT  ARE  OTHERWISE  PAID  OR
FORFEITED AS A RESULT OF A COVERED ENFORCEMENT ACTION OR RELATED ACTION;
AND (II) ANY MONIES DEPOSITED INTO A DISGORGEMENT FUND OR PUBLIC BENEFIT
FUND AS A RESULT OF A COVERED ENFORCEMENT ACTION OR RELATED ACTION.
  (C) "ORIGINAL INFORMATION" SHALL MEAN INFORMATION THAT:
  (I)  IS DERIVED FROM THE INDEPENDENT KNOWLEDGE OR ANALYSIS OF A WHIST-
LEBLOWER;
  (II) IS NOT KNOWN TO THE  ATTORNEY  GENERAL  FROM  ANY  OTHER  SOURCE,
UNLESS THE WHISTLEBLOWER IS THE ORIGINAL SOURCE OF THE INFORMATION; AND
  (III) IS NOT EXCLUSIVELY DERIVED FROM AN ALLEGATION MADE IN A JUDICIAL
OR  ADMINISTRATIVE  HEARING, IN A GOVERNMENTAL REPORT, HEARING, AUDIT OR
INVESTIGATION OR FROM THE NEWS MEDIA,  UNLESS  THE  WHISTLEBLOWER  IS  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07595-03-5
              

A. 7304                             2

SOURCE  OF  THE  INFORMATION.  FOR PURPOSES OF THIS SUBPARAGRAPH: (A) AN
ALLEGATION IS NOT MADE IN A GOVERNMENTAL REPORT OR INVESTIGATION BECAUSE
IT WAS DISCLOSED OR PROVIDED PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFI-
CERS  LAW,  OR  UNDER  ANY  OTHER  FEDERAL,  STATE OR LOCAL LAW, RULE OR
PROGRAM ENABLING THE PUBLIC TO REQUEST, RECEIVE  OR  VIEW  DOCUMENTS  OR
INFORMATION  IN  THE  POSSESSION OF PUBLIC OFFICIALS OR PUBLIC AGENCIES;
AND (B) AN ALLEGATION IS NOT MADE  IN  THE  NEWS  MEDIA  MERELY  BECAUSE
INFORMATION  OF  ALLEGATIONS  OR  TRANSACTIONS  HAVE  BEEN POSTED ON THE
INTERNET OR ON A COMPUTER NETWORK.
  (D) "RELATED ACTION" SHALL MEAN ANY JUDICIAL OR ADMINISTRATIVE  ACTION
BROUGHT  BY  A  STATE  OR LOCAL AGENCY OR ENTITY BASED UPON THE ORIGINAL
INFORMATION PROVIDED BY A WHISTLEBLOWER TO THE ATTORNEY GENERAL PURSUANT
TO THIS SECTION THAT RESULTS IN MONETARY SANCTIONS EXCEEDING ONE MILLION
DOLLARS IN THE AGGREGATE.
  (E) "WHISTLEBLOWER" SHALL MEAN ANY INDIVIDUAL OR ENTITY  WHO  PROVIDES
OR TWO OR MORE INDIVIDUALS OR ENTITIES ACTING JOINTLY WHO PROVIDE INFOR-
MATION TO THE ATTORNEY GENERAL RELATING TO A VIOLATION OF THIS ARTICLE.
  2.  WHISTLEBLOWER AWARDS. (A) ONE OR MORE WHISTLEBLOWERS WHO VOLUNTAR-
ILY PROVIDE ORIGINAL INFORMATION TO THE ATTORNEY GENERAL  THAT  WAS  THE
BASIS  FOR A SUCCESSFUL COVERED ENFORCEMENT ACTION, OR A RELATED ACTION,
SHALL, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, BE ENTITLED TO
RECEIVE BETWEEN TEN AND THIRTY PERCENT OF THE  MONETARY  SANCTIONS  THAT
RESULT  FROM SUCH ACTION. ANY PAYMENT TO A PERSON PURSUANT TO THIS PARA-
GRAPH SHALL BE MADE FROM THE MONETARY SANCTIONS OF THE COVERED  ENFORCE-
MENT ACTION OR RELATED ACTION.
  (B) A WHISTLEBLOWER WHO PROVIDES THE ATTORNEY GENERAL WITH INFORMATION
RELATED  TO INFORMATION PREVIOUSLY REPORTED TO THE ATTORNEY GENERAL BY A
WHISTLEBLOWER WHO IS ELIGIBLE FOR AN AWARD UNDER THIS SECTION SHALL  NOT
BE  ENTITLED  TO AN AWARD, UNLESS THE INFORMATION PROVIDED BY THE SECOND
WHISTLEBLOWER MATERIALLY ADDS TO THE INFORMATION REPORTED TO THE  ATTOR-
NEY GENERAL BY THE FIRST WHISTLEBLOWER.
  (C)  THE DETERMINATION OF THE AMOUNT OF AN AWARD MADE WITHIN THE RANGE
ESTABLISHED BY THIS SECTION SHALL BE SOLELY IN  THE  DISCRETION  OF  THE
ATTORNEY  GENERAL. IN DETERMINING THE AMOUNT OF AN AWARD MADE WITHIN THE
RANGE ESTABLISHED BY THIS SECTION, THE ATTORNEY GENERAL SHALL TAKE  INTO
CONSIDERATION THE FOLLOWING FACTORS:
  (I)  THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE WHISTLEBLOWER
TO THE SUCCESS OF THE COVERED ENFORCEMENT ACTION OR RELATED ACTION;
  (II) THE DEGREE OF ASSISTANCE PROVIDED BY THE  WHISTLEBLOWER  AND  ANY
LEGAL  REPRESENTATIVE  OF  THE  WHISTLEBLOWER IN THE COVERED ENFORCEMENT
ACTION OR RELATED ACTION;
  (III) THE INTEREST OF THE STATE IN DETERRING VIOLATIONS OF THIS  ARTI-
CLE  AND PROMOTING THE REPORTING BY WHISTLEBLOWERS OF INFORMATION RELAT-
ING TO SUCH VIOLATIONS; AND
  (IV) SUCH ADDITIONAL RELEVANT FACTORS  AS  THE  ATTORNEY  GENERAL  MAY
ESTABLISH BY RULE OR REGULATION.
  (D) NO AWARD SHALL BE MADE TO ANY WHISTLEBLOWER IF THE ATTORNEY GENER-
AL SHALL DETERMINE THAT THE WHISTLEBLOWER:
  (I)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
INFORMATION SUBMITTED TO THE ATTORNEY  GENERAL,  A  MEMBER,  OFFICER  OR
EMPLOYEE  OF A FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY THAT REGU-
LATES SECURITIES OR THAT PROSECUTES SECURITIES VIOLATIONS;
  (II) WAS CONVICTED OF A CRIMINAL  VIOLATION  RELATED  TO  THE  COVERED
ENFORCEMENT  ACTION  FOR WHICH THE WHISTLEBLOWER OTHERWISE COULD RECEIVE
AN AWARD UNDER THIS SECTION;

A. 7304                             3

  (III) MATERIALLY FAILED TO SUBMIT INFORMATION TO THE ATTORNEY  GENERAL
IN SUCH FORM AS THE ATTORNEY GENERAL MAY REQUIRE;
  (IV)  IS,  OR  WAS AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
INFORMATION SUBMITTED TO THE ATTORNEY GENERAL, AN OFFICER OR EMPLOYEE OF
A SELF-REGULATORY ORGANIZATION THAT REGULATES SECURITIES AND WHO  HAS  A
DUTY  BY  VIRTUE  OF SUCH POSITION TO INVESTIGATE OR REPORT A SECURITIES
VIOLATION; PROVIDED THAT THIS SUBPARAGRAPH SHALL NOT APPLY IF THE WHIST-
LEBLOWER REPORTED  THE  ORIGINAL  INFORMATION  TO  SUCH  SELF-REGULATORY
ORGANIZATION  AND  THE ATTORNEY GENERAL DETERMINES THAT THE ORGANIZATION
DID NOT TAKE ADEQUATE MEASURES WITHIN SIXTY DAYS TO INVESTIGATE OR SANC-
TION CONDUCT THAT WOULD BE A VIOLATION OF THIS ARTICLE; OR
  (V) (A) KNOWINGLY AND WILLFULLY MAKES FALSE, FICTITIOUS OR  FRAUDULENT
STATEMENTS  OR  REPRESENTATIONS  TO THE ATTORNEY GENERAL WHEN SUBMITTING
INFORMATION UNDER THIS SECTION, OR (B) USES ANY FALSE WRITING  OR  DOCU-
MENT  KNOWING  THE WRITING OR DOCUMENT CONTAINS ANY FALSE, FICTITIOUS OR
FRAUDULENT STATEMENT OR ENTRY WHEN  SUBMITTING  INFORMATION  UNDER  THIS
SECTION.
  (E)  (I)  ANY  DETERMINATION  MADE  UNDER  THIS SUBDIVISION, INCLUDING
WHETHER, TO WHOM, OR IN WHAT AMOUNT TO MAKE  AWARDS,  SHALL  BE  IN  THE
DISCRETION  OF  THE  ATTORNEY  GENERAL;  PROVIDED THAT SUCH AMOUNT SHALL
CONFORM TO THE RANGE ESTABLISHED BY PARAGRAPH (A) OF  THIS  SUBDIVISION,
AND  SHALL TAKE INTO ACCOUNT THE FACTORS LISTED IN PARAGRAPH (C) OF THIS
SUBDIVISION.
  (II) ANY SUCH DETERMINATION MAY BE CHALLENGED IN ACCORDANCE WITH ARTI-
CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED THAT ANY
SUCH CHALLENGE SHALL BE BROUGHT WITHIN FORTY-FIVE DAYS OF  THE  DATE  OF
ANY SUCH DETERMINATION.
  (F)  NO  CONTRACT WITH THE DEPARTMENT OF LAW OR ANY OTHER AGENCY SHALL
BE NECESSARY FOR ANY  WHISTLEBLOWER  TO  RECEIVE  AN  AWARD  UNDER  THIS
SECTION.
  (G)(I)  ANY  WHISTLEBLOWER  WHO  MAKES A CLAIM FOR AN AWARD UNDER THIS
SECTION MAY BE REPRESENTED BY COUNSEL.
  (II) ANY WHISTLEBLOWER WHO ANONYMOUSLY MAKES  A  CLAIM  FOR  AN  AWARD
UNDER  THIS SECTION SHALL BE REPRESENTED BY COUNSEL IF THE WHISTLEBLOWER
ANONYMOUSLY SUBMITS THE INFORMATION UPON WHICH THE CLAIM IS BASED. PRIOR
TO THE PAYMENT OF AN AWARD, A WHISTLEBLOWER SHALL DISCLOSE THE  IDENTITY
OF  THE WHISTLEBLOWER AND PROVIDE SUCH OTHER INFORMATION AS THE ATTORNEY
GENERAL MAY REQUIRE, DIRECTLY OR THROUGH COUNSEL FOR THE WHISTLEBLOWER.
  (H)(I) THE ATTORNEY GENERAL SHALL NOT DISCLOSE ANY  INFORMATION  WHICH
COULD  REASONABLY BE EXPECTED TO REVEAL THE IDENTITY OF A WHISTLEBLOWER,
UNLESS AND UNTIL SUCH INFORMATION IS REQUIRED TO BE DISCLOSED TO A PARTY
IN CONNECTION WITH AN ACTION  OR  PROCEEDING  BROUGHT  BY  THE  ATTORNEY
GENERAL,  A  LAWFULLY ISSUED SUBPOENA BY A FEDERAL OR STATE LAW ENFORCE-
MENT AUTHORITY, OR OTHERWISE BY A COURT ORDER. SUCH INFORMATION SHALL BE
DEEMED INFORMATION EXEMPTED FROM DISCLOSURE UNDER  ARTICLE  SIX  OF  THE
PUBLIC OFFICERS LAW.
  (II)  NOTWITHSTANDING  THE PRECEDING SUBPARAGRAPH, WITHOUT THE LOSS OF
ITS STATUS AS CONFIDENTIAL IN THE HANDS OF  THE  ATTORNEY  GENERAL,  ALL
INFORMATION  REFERRED TO IN THIS SUBDIVISION MAY, WHEN DETERMINED BY THE
ATTORNEY GENERAL TO BE NECESSARY TO  ACCOMPLISH  THE  PURPOSES  OF  THIS
ARTICLE,  BE  MADE  AVAILABLE  TO  THE  APPROPRIATE  REGULATORY  AND LAW
ENFORCEMENT AUTHORITIES  OF  THIS  STATE,  ANOTHER  STATE,  THE  FEDERAL
GOVERNMENT,  FOREIGN GOVERNMENTS, OR SELF-REGULATORY ORGANIZATIONS. EACH
REGULATORY OR LAW ENFORCEMENT AUTHORITY TO WHICH  THE  ATTORNEY  GENERAL
MAKES  AVAILABLE  THE  INFORMATION REFERRED TO IN THE PRECEDING SUBPARA-

A. 7304                             4

GRAPH SHALL AGREE TO MAINTAIN SUCH INFORMATION IN ACCORDANCE  WITH  SUCH
ASSURANCES OF CONFIDENTIALITY AS THE ATTORNEY GENERAL DEEMS APPROPRIATE.
  3.  RETALIATION.  (A)(I)  IT  SHALL  BE  UNLAWFUL  FOR  ANY CURRENT OR
PROSPECTIVE EMPLOYER, CONTRACTOR OR AGENT TO DISCHARGE, DEMOTE, SUSPEND,
THREATEN OR HARASS, DIRECTLY OR  INDIRECTLY,  OR  IN  ANY  OTHER  MANNER
DISCRIMINATE AGAINST ANY PERSON IN HIRING OR IN THE TERMS AND CONDITIONS
OF  EMPLOYMENT  OR  CONTRACTING  BECAUSE  OF ANY LAWFUL ACT DONE BY SUCH
PERSON: (A) IN PROVIDING INFORMATION TO THE ATTORNEY GENERAL PURSUANT TO
THIS SECTION; (B) IN INITIATING,  TESTIFYING  IN  OR  ASSISTING  IN  ANY
INVESTIGATION  OR  COVERED ENFORCEMENT ACTION UNDER THIS ARTICLE, OR ANY
RELATED ACTION; OR (C) IN REPORTING ANY VIOLATION  OF  THIS  ARTICLE  TO
ANOTHER  GOVERNMENT  ENTITY,  TO  A DIRECT SUPERVISOR OR TO A COMPLIANCE
OFFICER OF SUCH EMPLOYER, CONTRACTOR OR AGENT.
  (II) ANY PERSON WHO IS DISCHARGED, DEMOTED, SUSPENDED,  THREATENED  OR
HARASSED  OR  IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE TERMS AND
CONDITIONS OF EMPLOYMENT, OR OTHERWISE HARMED OR PENALIZED BY AN EMPLOY-
ER, OR A PROSPECTIVE EMPLOYER, BECAUSE  OF  LAWFUL  ACTS  DONE  BY  SUCH
PERSON  OR  ASSOCIATED  OTHERS IN FURTHERANCE OF ANY COVERED ENFORCEMENT
ACTION OR RELATED ACTION OR OTHER EFFORTS TO STOP ONE OR MORE VIOLATIONS
OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO REPORTING SUCH  VIOLATIONS
TO  ANY  GOVERNMENT  ENTITY,  TO  A DIRECT SUPERVISOR OR TO A COMPLIANCE
OFFICER OF SUCH EMPLOYER OR PROSPECTIVE EMPLOYER, SHALL BE  ENTITLED  TO
ALL  RELIEF  NECESSARY  TO  MAKE  SUCH  PERSON  WHOLE. SUCH RELIEF SHALL
INCLUDE BUT NOT BE LIMITED TO:
  (A) AN INJUNCTION TO RESTRAIN CONTINUED DISCRIMINATION;
  (B) HIRING, CONTRACTING OR REINSTATEMENT TO THE POSITION  SUCH  PERSON
WOULD HAVE HAD BUT FOR THE DISCRIMINATION OR TO AN EQUIVALENT POSITION;
  (C) REINSTATEMENT OF FULL FRINGE BENEFITS AND SENIORITY RIGHTS;
  (D) PAYMENT OF TWO TIMES BACK PAY, PLUS INTEREST; AND
  (E)  COMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A RESULT OF THE
DISCRIMINATION, INCLUDING LITIGATION  COSTS  AND  REASONABLE  ATTORNEYS'
FEES.
  (B)  FOR  PURPOSES  OF THIS SUBDIVISION, A "LAWFUL" ACT SHALL INCLUDE,
BUT NOT BE LIMITED TO, OBTAINING OR TRANSMITTING TO THE ATTORNEY GENERAL
OR PRIVATE COUNSEL EMPLOYED TO INVESTIGATE OR POTENTIALLY FILE WITH  THE
ATTORNEY  GENERAL  INFORMATION  RELATING TO A VIOLATION OF THIS ARTICLE,
EVEN THOUGH SUCH  ACT  MAY  VIOLATE  A  CONTRACT,  SEVERANCE  AGREEMENT,
EMPLOYMENT TERM, OR DUTY OWED TO THE EMPLOYER OR CONTRACTOR.
  (C)  ANY  PERSON SEEKING RELIEF PURSUANT TO SUBPARAGRAPH (II) OF PARA-
GRAPH (A) OF THIS SUBDIVISION MAY BRING AN  ACTION  IN  THE  APPROPRIATE
SUPREME  COURT  FOR  THE  RELIEF  PROVIDED  IN THIS SUBDIVISION. A CIVIL
ACTION UNDER THIS SUBDIVISION SHALL BE COMMENCED NO LATER THAN TEN YEARS
AFTER THE DATE ON WHICH THE VIOLATION OF THIS ARTICLE IS COMMITTED.
  4. NO WAIVER OR PREEMPTION. (A) THIS SECTION SHALL NOT:  (I)  PREEMPT,
LIMIT OR RESTRICT THE AUTHORITY OR DISCRETION OF THE ATTORNEY GENERAL TO
INVESTIGATE OR ENFORCE VIOLATIONS OF THIS ARTICLE; (II) LIMIT ANY POWERS
GRANTED  ELSEWHERE IN THIS CHAPTER AND OTHER LAWS TO THE ATTORNEY GENER-
AL, STATE AGENCIES OR LOCAL GOVERNMENTS TO INVESTIGATE OR ENFORCE POSSI-
BLE VIOLATIONS OF THIS ARTICLE;  (III)  AUTHORIZE  A  PRIVATE  RIGHT  OF
ACTION INVOLVING FRAUDULENT PRACTICES IN CONNECTION WITH THE SECURITIES;
(IV) PREVENT OR PROHIBIT A PERSON FROM VOLUNTARILY DISCLOSING ANY INFOR-
MATION  CONCERNING  A  VIOLATION  OF THIS ARTICLE TO ANY LAW ENFORCEMENT
AGENCY OR SELF-REGULATORY ORGANIZATION; OR (V) PREEMPT, LIMIT,  RESTRICT
OR  OTHERWISE  AFFECT  THE RIGHTS AND REWARDS PROVIDED TO QUI TAM PLAIN-
TIFFS UNDER ARTICLE THIRTEEN OF THE STATE FINANCE LAW.

A. 7304                             5

  (B) THE RIGHTS AND REMEDIES PROVIDED FOR IN THIS SECTION  MAY  NOT  BE
WAIVED  BY  ANY  AGREEMENT,  POLICY FORM, OR CONDITION OF EMPLOYMENT. NO
SALARY OR WAGES EARNED BY THE WHISTLEBLOWER DURING HIS  OR  HER  EMPLOY-
MENT,  NOR  ANY  CONSIDERATION  PROVIDED THE WHISTLEBLOWER IN CONNECTION
WITH  HIS  OR  HER  SEVERANCE  FROM SUCH EMPLOYMENT, RELATED TO ORIGINAL
INFORMATION OR THE COVERED ENFORCEMENT ACTION OR RELATED ACTION  MAY  BE
RECOUPED BY ANY RIGHT OF ACTION BROUGHT BY THE EMPLOYER.
  (C)  NOTHING  IN  THIS SECTION SHALL BE DEEMED TO DIMINISH THE RIGHTS,
PRIVILEGES, OR REMEDIES OF ANY WHISTLEBLOWER UNDER ANY FEDERAL OR  STATE
LAW, OR UNDER ANY COLLECTIVE BARGAINING AGREEMENT.
  5. REGULATIONS. THE ATTORNEY GENERAL IS AUTHORIZED TO ADOPT SUCH RULES
AND  REGULATIONS  AS  ARE  NECESSARY  TO EFFECTUATE THE PURPOSES OF THIS
SECTION; PROVIDED THAT THE  ATTORNEY  GENERAL  SHALL  CONSULT  WITH  THE
SUPERINTENDENT  OF THE DEPARTMENT OF FINANCIAL SERVICES PRIOR TO PROPOS-
ING SUCH RULES OR REGULATIONS.
  S 2. Subsection (a) of section 104 of the financial  services  law  is
amended  by  adding  five  new  paragraphs  6, 7, 8, 9 and 10 to read as
follows:
  (6) "COVERED JUDICIAL OR ADMINISTRATIVE ACTION" SHALL  MEAN:  (A)  ANY
ONE OR MORE JUDICIAL OR ADMINISTRATIVE ACTIONS BROUGHT BY THE DEPARTMENT
UNDER THE INSURANCE LAW, THE BANKING LAW OR THIS CHAPTER THAT RESULTS IN
MONETARY  SANCTIONS  EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE; AND
(B) ANY INVESTIGATIONS, INQUIRIES,  SETTLEMENTS  OR  ANY  OTHER  ACTIONS
BROUGHT OR MADE WITHIN THE SOLE DISCRETION OF THE SUPERINTENDENT, BY THE
DEPARTMENT UNDER THE INSURANCE LAW, THE BANKING LAW OR THIS CHAPTER THAT
RESULT IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN THE AGGRE-
GATE.
  (7) "MONETARY SANCTIONS" SHALL MEAN:
  (A)  ANY  MONIES  ORDERED  TO  BE  PAID, OR THAT ARE OTHERWISE PAID OR
FORFEITED AS A RESULT OF A COVERED JUDICIAL OR ADMINISTRATIVE ACTION  OR
ANY SETTLEMENT OF SUCH ACTION, OR RELATED ACTION; AND
  (B)  ANY  MONIES  DEPOSITED INTO A DISGORGEMENT FUND OR PUBLIC BENEFIT
FUND AS A RESULT OF A COVERED JUDICIAL OR ADMINISTRATIVE ACTION  OR  ANY
SETTLEMENT OF SUCH ACTION, OR RELATED ACTION.
  (8) "ORIGINAL INFORMATION" SHALL MEAN INFORMATION THAT:
  (A)  IS DERIVED FROM THE INDEPENDENT KNOWLEDGE OR ANALYSIS OF A WHIST-
LEBLOWER;
  (B) IS NOT KNOWN TO THE DEPARTMENT FROM ANY OTHER SOURCE,  UNLESS  THE
WHISTLEBLOWER IS THE ORIGINAL SOURCE OF THE INFORMATION; AND
  (C)  IS  NOT EXCLUSIVELY DERIVED FROM AN ALLEGATION MADE IN A JUDICIAL
OR ADMINISTRATIVE HEARING, IN A GOVERNMENTAL REPORT, HEARING,  AUDIT  OR
INVESTIGATION  OR  FROM  THE  NEWS  MEDIA, UNLESS THE WHISTLEBLOWER IS A
SOURCE OF THE INFORMATION.  FOR PURPOSES OF THIS  SUBPARAGRAPH:  (I)  AN
ALLEGATION IS NOT MADE IN A GOVERNMENTAL REPORT OR INVESTIGATION BECAUSE
IT WAS DISCLOSED OR PROVIDED PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFI-
CERS  LAW,  OR  UNDER  ANY  OTHER  FEDERAL,  STATE OR LOCAL LAW, RULE OR
PROGRAM ENABLING THE PUBLIC TO REQUEST, RECEIVE  OR  VIEW  DOCUMENTS  OR
INFORMATION  IN  THE  POSSESSION OF PUBLIC OFFICIALS OR PUBLIC AGENCIES;
AND (II) AN ALLEGATION IS NOT MADE IN  THE  NEWS  MEDIA  MERELY  BECAUSE
INFORMATION  OF  ALLEGATIONS  OR  TRANSACTIONS  HAVE  BEEN POSTED ON THE
INTERNET OR ON A COMPUTER NETWORK.
  (9) "RELATED ACTION" SHALL MEAN ANY JUDICIAL OR ADMINISTRATIVE  ACTION
BROUGHT  BY  ANOTHER STATE OR LOCAL AGENCY OR ENTITY BASED UPON ORIGINAL
INFORMATION PROVIDED BY A WHISTLEBLOWER TO THE DEPARTMENT  THAT  RESULTS
IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE.

A. 7304                             6

  (10)  "WHISTLEBLOWER" SHALL MEAN ANY INDIVIDUAL OR ENTITY WHO PROVIDES
OR TWO OR MORE INDIVIDUALS ACTING JOINTLY WHO PROVIDE INFORMATION RELAT-
ING TO A VIOLATION OF THE BANKING LAW, THE INSURANCE LAW,  THIS  CHAPTER
OR RULES AND REGULATIONS PROMULGATED THEREUNDER TO THE DEPARTMENT.
  S  3. The financial services law is amended by adding two new sections
410 and 411 to read as follows:
  S 410. FINANCIAL SERVICES  WHISTLEBLOWER  AWARDS.    (A)  (1)  IN  ANY
COVERED  JUDICIAL  OR  ADMINISTRATIVE  ACTION, OR RELATED ACTION, ONE OR
MORE WHISTLEBLOWERS WHO VOLUNTARILY PROVIDE ORIGINAL INFORMATION TO  THE
DEPARTMENT THAT WAS THE BASIS FOR THE SUCCESSFUL JUDICIAL OR ADMINISTRA-
TIVE  ACTION,  OR  A  RELATED  ACTION,  SHALL,  IN  ACCORDANCE  WITH THE
PROVISIONS OF THIS SECTION, BE ENTITLED TO RECEIVE BETWEEN TEN AND THIR-
TY PERCENT OF THE MONETARY SANCTIONS THAT RESULT FROM SUCH  ACTION.  ANY
PAYMENT  TO  A  PERSON PURSUANT TO THIS PARAGRAPH SHALL BE MADE FROM THE
MONETARY SANCTIONS OF THE COVERED JUDICIAL OR ADMINISTRATIVE ACTION,  OR
RELATED ACTION.
  (2)  A  WHISTLEBLOWER  WHO  PROVIDES  THE  DEPARTMENT WITH INFORMATION
RELATED TO INFORMATION PREVIOUSLY REPORTED TO THE DEPARTMENT BY A WHIST-
LEBLOWER WHO IS ELIGIBLE FOR AN AWARD UNDER THIS SECTION  SHALL  NOT  BE
ENTITLED  TO  AN  AWARD,  UNLESS  THE INFORMATION PROVIDED BY THE SECOND
WHISTLEBLOWER MATERIALLY ADDS TO THE INFORMATION REPORTED TO THE DEPART-
MENT BY THE FIRST WHISTLEBLOWER.
  (3) ANY AMOUNT PAID UNDER PARAGRAPH ONE OF THIS  SUBSECTION  SHALL  BE
FIRST APPLIED IN ACCORDANCE WITH THE PROVISIONS OF SUCH PARAGRAPH BEFORE
BEING  APPLIED,  IF  APPLICABLE,  IN ACCORDANCE WITH SUBPARAGRAPH (B) OF
PARAGRAPH ONE OF SUBSECTION (A) OF SECTION FOUR HUNDRED  EIGHT  OF  THIS
ARTICLE.
  (B)(1)  THE  DETERMINATION  OF  THE AMOUNT OF AN AWARD MADE WITHIN THE
RANGE ESTABLISHED BY THIS SECTION SHALL BE SOLELY IN THE  DISCRETION  OF
THE SUPERINTENDENT.
  (2) IN DETERMINING THE AMOUNT OF AN AWARD MADE WITHIN THE RANGE ESTAB-
LISHED BY THIS SECTION, THE SUPERINTENDENT SHALL TAKE INTO CONSIDERATION
THE FOLLOWING FACTORS:
  (A)  THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE WHISTLEBLOWER
TO THE SUCCESS OF THE COVERED JUDICIAL OR ADMINISTRATIVE ACTION;
  (B) THE DEGREE OF ASSISTANCE PROVIDED BY  THE  WHISTLEBLOWER  AND  ANY
LEGAL  REPRESENTATIVE  OF  THE  WHISTLEBLOWER  IN  A COVERED JUDICIAL OR
ADMINISTRATIVE ACTION;
  (C) THE INTEREST OF THE DEPARTMENT  IN  DETERRING  VIOLATIONS  OF  THE
BANKING LAW, THE INSURANCE LAW OR THIS CHAPTER AND PROMOTING THE REPORT-
ING BY WHISTLEBLOWERS OF INFORMATION RELATING TO SUCH VIOLATIONS; AND
  (D)  SUCH ADDITIONAL RELEVANT FACTORS AS THE SUPERINTENDENT MAY ESTAB-
LISH BY RULE OR REGULATION.
  (C) NO AWARD SHALL BE MADE TO ANY WHISTLEBLOWER IF THE  SUPERINTENDENT
SHALL DETERMINE THAT THE WHISTLEBLOWER:
  (1)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
INFORMATION SUBMITTED TO THE DEPARTMENT, A MEMBER, OFFICER  OR  EMPLOYEE
OF A FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY THAT REGULATES BANK-
ING, INSURANCE OR FINANCIAL SERVICES PRODUCTS; OR
  (2)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
INFORMATION SUBMITTED TO THE DEPARTMENT, AN OFFICER  OR  EMPLOYEE  OF  A
SELF-REGULATORY ORGANIZATION THAT REGULATES BANKING, INSURANCE OR FINAN-
CIAL  SERVICES PRODUCTS AND WHO HAS A DUTY BY VIRTUE OF SUCH POSITION TO
INVESTIGATE OR REPORT A LEGAL VIOLATION INVOLVING BANKING, INSURANCE, OR
FINANCIAL SERVICES PRODUCTS; PROVIDED THAT THIS SUBPARAGRAPH  SHALL  NOT
APPLY IF THE WHISTLEBLOWER PROPERLY REPORTED THE ORIGINAL INFORMATION TO

A. 7304                             7

SUCH SELF-REGULATORY ORGANIZATION AND THE SUPERINTENDENT DETERMINES THAT
THE  ORGANIZATION  DID  NOT  TAKE ADEQUATE MEASURES WITHIN SIXTY DAYS TO
INVESTIGATE CONDUCT THAT WOULD BE A VIOLATION OF THIS ARTICLE; OR
  (3) WAS CONVICTED OF A CRIMINAL VIOLATION RELATED TO THE COVERED JUDI-
CIAL  OR  ADMINISTRATIVE  ACTION  FOR  WHICH THE WHISTLEBLOWER OTHERWISE
COULD RECEIVE AN AWARD UNDER THIS SECTION; OR
  (4) MATERIALLY FAILED TO SUBMIT INFORMATION TO THE DEPARTMENT IN  SUCH
FORM AS THE DEPARTMENT MAY REQUIRE; OR
  (5)(A)  KNOWINGLY  AND WILLFULLY MAKES FALSE, FICTITIOUS OR FRAUDULENT
STATEMENTS OR REPRESENTATIONS TO THE DEPARTMENT WHEN SUBMITTING INFORMA-
TION UNDER THIS SECTION, OR (B) USES ANY FALSE WRITING OR DOCUMENT KNOW-
ING THE WRITING OR DOCUMENT CONTAINED FALSE,  FICTITIOUS  OR  FRAUDULENT
STATEMENTS OR ENTRIES WHEN SUBMITTING INFORMATION UNDER THIS SECTION.
  (D)  (1)  ANY  WHISTLEBLOWER WHO MAKES A CLAIM FOR AN AWARD UNDER THIS
SECTION MAY BE REPRESENTED BY COUNSEL.
  (2) ANY WHISTLEBLOWER WHO ANONYMOUSLY MAKES A CLAIM FOR AN AWARD UNDER
THIS SECTION SHALL BE REPRESENTED BY COUNSEL IF THE WHISTLEBLOWER ANONY-
MOUSLY SUBMITS THE INFORMATION UPON WHICH THE CLAIM IS BASED.  PRIOR  TO
THE  PAYMENT OF AN AWARD, A WHISTLEBLOWER SHALL DISCLOSE THE IDENTITY OF
THE WHISTLEBLOWER AND PROVIDE SUCH OTHER INFORMATION AS  THE  DEPARTMENT
MAY REQUIRE, DIRECTLY OR THROUGH COUNSEL FOR THE WHISTLEBLOWER.
  (E)  NO CONTRACT WITH THE DEPARTMENT SHALL BE NECESSARY FOR ANY WHIST-
LEBLOWER TO RECEIVE  AN  AWARD  UNDER  THIS  SECTION,  UNLESS  OTHERWISE
REQUIRED BY THE DEPARTMENT BY RULE OR REGULATION.
  (F)  ANY  DETERMINATION MADE UNDER THIS SECTION SHALL BE SOLELY IN THE
DISCRETION OF THE SUPERINTENDENT; PROVIDED THAT SUCH AWARD SHALL  BE  IN
THE  RANGES  ESTABLISHED  BY  PARAGRAPH  ONE  OF  SUBSECTION (A) OF THIS
SECTION, AND THE SUPERINTENDENT SHALL  TAKE  INTO  ACCOUNT  THE  FACTORS
LISTED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION IN DETERMINING
THE  AMOUNT  OF THE AWARD.   ANY SUCH DETERMINATION MAY BE CHALLENGED IN
ACCORDANCE WITH ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND
RULES,  PROVIDED  THAT  ANY  SUCH  CHALLENGE  SHALL  BE  BROUGHT  WITHIN
FORTY-FIVE DAYS OF THE DATE OF ANY SUCH DETERMINATION UNDER CHALLENGE.
  S 411. RETALIATION PROTECTIONS. (A) NO CURRENT OR PROSPECTIVE  EMPLOY-
ER,  CONTRACTOR  OR  AGENT  MAY  DISCHARGE, DEMOTE, SUSPEND, THREATEN OR
HARASS, DIRECTLY OR INDIRECTLY, OR  IN  ANY  OTHER  MANNER  DISCRIMINATE
AGAINST  ANY  PERSON IN HIRING OR IN THE TERMS AND CONDITIONS OF EMPLOY-
MENT BECAUSE OF ANY LAWFUL ACT DONE BY SUCH PERSON:
  (1) IN PROVIDING INFORMATION TO THE DEPARTMENT IN ACCORDANCE WITH THIS
SECTION;
  (2) IN INITIATING, TESTIFYING IN OR ASSISTING IN ANY INVESTIGATION  OR
JUDICIAL  OR  ADMINISTRATIVE ACTION OF THE DEPARTMENT OR RELATED ACTION;
OR
  (3) IN REPORTING ANY VIOLATION OF THE INSURANCE LAW, THE  BANKING  LAW
OR  THIS CHAPTER TO ANOTHER GOVERNMENT ENTITY, TO A DIRECT SUPERVISOR OR
TO A COMPLIANCE OFFICER OF SUCH EMPLOYER, CONTRACTOR OR AGENT.
  (B)(1) ANY PERSON WHO IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED OR
HARASSED OR IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE  TERMS  AND
CONDITIONS OF EMPLOYMENT, OR OTHERWISE HARMED OR PENALIZED BY AN EMPLOY-
ER,  OR  A  PROSPECTIVE  EMPLOYER,  BECAUSE  OF LAWFUL ACTS DONE BY SUCH
PERSON OR ASSOCIATED OTHERS IN FURTHERANCE OF ANY  COVERED  JUDICIAL  OR
ADMINISTRATIVE  ACTION OR RELATED ACTION OR OTHER EFFORTS TO STOP ONE OR
MORE VIOLATIONS OF THE INSURANCE LAW, THE BANKING LAW OR  THIS  CHAPTER,
INCLUDING BUT NOT LIMITED TO REPORTING SUCH VIOLATIONS TO ANY GOVERNMENT
ENTITY,  TO  A  DIRECT  SUPERVISOR  OR  TO  A COMPLIANCE OFFICER OF SUCH
EMPLOYER OR PROSPECTIVE EMPLOYER, SHALL BE ENTITLED TO ALL RELIEF NECES-

A. 7304                             8

SARY TO MAKE SUCH PERSON WHOLE. SUCH RELIEF SHALL  INCLUDE  BUT  NOT  BE
LIMITED TO:
  (A) AN INJUNCTION TO RESTRAIN CONTINUED DISCRIMINATION;
  (B)  HIRING,  CONTRACTING OR REINSTATEMENT TO THE POSITION SUCH PERSON
WOULD HAVE HAD BUT FOR THE DISCRIMINATION OR TO AN EQUIVALENT POSITION;
  (C) REINSTATEMENT OF FULL FRINGE BENEFITS AND SENIORITY RIGHTS;
  (D) PAYMENT OF TWO TIMES BACK PAY, PLUS INTEREST; AND
  (E) COMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A RESULT OF  THE
DISCRIMINATION,  INCLUDING  LITIGATION  COSTS  AND REASONABLE ATTORNEYS'
FEES.
  (2) FOR PURPOSES OF THIS SECTION, A "LAWFUL" ACT  SHALL  INCLUDE,  BUT
NOT  BE  LIMITED  TO,  OBTAINING  OR  TRANSMITTING  TO THE DEPARTMENT OR
PRIVATE COUNSEL EMPLOYED TO INVESTIGATE OR  POTENTIALLY  FILE  WITH  THE
DEPARTMENT  INFORMATION  RELATING  TO VIOLATIONS OF THE BANKING LAW, THE
INSURANCE LAW, OR THIS CHAPTER, EVEN  THOUGH  SUCH  ACT  MAY  VIOLATE  A
CONTRACT,  SEVERANCE  AGREEMENT,  EMPLOYMENT  TERM,  OR DUTY OWED TO THE
EMPLOYER OR CONTRACTOR.
  (3) ANY PERSON SEEKING RELIEF PURSUANT TO THIS SUBSECTION MAY BRING AN
ACTION IN THE APPROPRIATE SUPREME COURT FOR THE RELIEF PROVIDED IN  THIS
SECTION. THE LIMITATIONS PERIOD OF ANY SUCH ACTION SHALL BE TEN YEARS.
  (4)  NOTHING  IN  THIS SECTION SHALL BE DEEMED TO DIMINISH THE RIGHTS,
PRIVILEGES, OR REMEDIES OF ANY WHISTLEBLOWER UNDER ANY FEDERAL OR  STATE
LAW, OR UNDER ANY COLLECTIVE BARGAINING AGREEMENT.
  (C)(1)  NEITHER  THE SUPERINTENDENT NOR ANY OFFICER OR EMPLOYEE OF THE
DEPARTMENT,  SHALL  DISCLOSE  ANY  INFORMATION,  INCLUDING   INFORMATION
PROVIDED BY A WHISTLEBLOWER TO THE DEPARTMENT, WHICH COULD REASONABLY BE
EXPECTED  TO  REVEAL  THE  IDENTITY OF A WHISTLEBLOWER, UNLESS AND UNTIL
SUCH INFORMATION IS REQUIRED TO BE DISCLOSED TO A  PARTY  IN  CONNECTION
WITH  AN ACTION OR PROCEEDINGS BROUGHT BY THE SUPERINTENDENT, A LAWFULLY
ISSUED SUBPOENA BY A FEDERAL OR  STATE  LAW  ENFORCEMENT  AUTHORITY,  OR
OTHERWISE BY A COURT ORDER. SUCH INFORMATION SHALL BE DEEMED INFORMATION
EXEMPTED FROM DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
  (2)  NOTWITHSTANDING  THE PRECEDING PARAGRAPH, WITHOUT THE LOSS OF ITS
STATUS AS CONFIDENTIAL IN THE HANDS OF THE SUPERINTENDENT, ALL  INFORMA-
TION  REFERRED  TO  IN  PARAGRAPH  ONE  OF  THIS  SUBSECTION MAY, IN THE
DISCRETION OF THE SUPERINTENDENT, WHEN DETERMINED BY THE  SUPERINTENDENT
TO  BE  NECESSARY  TO  ACCOMPLISH  THE PURPOSES OF THIS ARTICLE, BE MADE
AVAILABLE TO THE APPROPRIATE REGULATORY AND LAW ENFORCEMENT  AUTHORITIES
OF  THIS  STATE,  ANOTHER STATE, THE FEDERAL GOVERNMENT, FOREIGN GOVERN-
MENTS, OR SELF-REGULATORY ORGANIZATIONS. EACH REGULATORY OR LAW ENFORCE-
MENT AUTHORITY TO WHICH THE SUPERINTENDENT MAKES AVAILABLE THE  INFORMA-
TION REFERRED TO IN THE PRECEDING PARAGRAPH SHALL AGREE TO MAINTAIN SUCH
INFORMATION IN ACCORDANCE WITH SUCH ASSURANCES OF CONFIDENTIALITY AS THE
SUPERINTENDENT MAY DETERMINE TO BE APPROPRIATE.
  (D)(1)  NOTHING  IN THIS SECTION SHALL LIMIT, OR SHALL BE CONSTRUED TO
LIMIT THE SUPERINTENDENT'S AUTHORITY UNDER SECTIONS TWO HUNDRED TWO  AND
THREE  HUNDRED  ONE  OF  THIS  CHAPTER, OR THAT OF OTHER LAW ENFORCEMENT
AUTHORITIES.
  (2) NOTHING IN THIS SECTION SHALL LIMIT,  OR  SHALL  BE  CONSTRUED  TO
LIMIT, THE RIGHTS AND REWARDS PROVIDED TO QUI TAM PLAINTIFFS UNDER ARTI-
CLE THIRTEEN OF THE STATE FINANCE LAW.
  (E)  THE  RIGHTS  AND REMEDIES PROVIDED FOR IN THIS SECTION MAY NOT BE
WAIVED BY ANY  AGREEMENT,  POLICY  FORM,  OR  CONDITION  OF  EMPLOYMENT,
INCLUDING  BY  A  PRE-DISPUTE  ARBITRATION AGREEMENT, WHICH SHALL NOT BE
VALID OR ENFORCEABLE IF IT REQUIRES ARBITRATION  OF  A  DISPUTE  ARISING
UNDER  THIS  SECTION.  NO  SALARY  OR  WAGES EARNED BY THE WHISTLEBLOWER

A. 7304                             9

DURING HIS OR HER EMPLOYMENT, NOR ANY CONSIDERATION PROVIDED THE  WHIST-
LEBLOWER  IN  CONNECTION WITH HIS OR HER SEVERANCE FROM SUCH EMPLOYMENT,
RELATED TO ORIGINAL INFORMATION OR THE COVERED JUDICIAL  OR  ADMINISTRA-
TIVE  ACTION  MAY  BE  RECOUPED  BY  ANY  RIGHT OF ACTION BROUGHT BY THE
EMPLOYER.
  (F) THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED  TO  PROMUL-
GATE  SUCH RULES AND REGULATIONS AS THE SUPERINTENDENT SHALL DEEM APPRO-
PRIATE FOR THE ENFORCEMENT OF THIS SECTION;  PROVIDED  THAT  THE  SUPER-
INTENDENT  SHALL  CONSULT  WITH  THE ATTORNEY GENERAL PRIOR TO PROPOSING
SUCH RULES OR REGULATIONS.
  S 4. Paragraph (b) of subdivision 11 of section 4 of the state finance
law, as added by section 1 of part HH of chapter 55 of the laws of 2014,
is amended to read as follows:
  (b) Paragraph (a) of this subdivision shall not apply to (1) moneys to
be distributed to the federal government, to a local government,  or  to
any  holder  of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2)  moneys  TO  BE
DISTRIBUTED  TO A WHISTLEBLOWER PURSUANT TO SECTION THREE HUNDRED FIFTY-
THREE-A OF THE GENERAL BUSINESS LAW OR SECTION FOUR HUNDRED TEN  OF  THE
FINANCIAL  SERVICES LAW, OR to be distributed solely or exclusively as a
payment of damages or restitution to individuals or entities  that  were
specifically  injured  or  harmed by the defendant's or settling party's
conduct and that are identified in, or can be identified  by  the  terms
of,  the relevant judgment, agreement to settle, assurance of discontin-
uance, or relevant instrument resolving the claim or  cause  of  action;
(3)  moneys  recovered or obtained by a state agency or a state official
or employee acting in their official capacity where application of para-
graph (a) of this subdivision is prohibited by  federal  law,  rule,  or
regulation, or would result in the reduction or loss of federal funds or
eligibility for federal benefits pursuant to federal law, rule, or regu-
lation;  (4)  moneys  recovered  or obtained by or on behalf of a public
authority, a public benefit corporation, the department of taxation  and
finance,  the  workers'  compensation  board,  the New York state higher
education services corporation, the tobacco settlement financing  corpo-
ration,  a  state or local retirement system, an employee health benefit
program administered by the New York state department of civil  service,
the Title IV-D child support fund, the lottery prize fund, the abandoned
property  fund,  or  an endowment of the state university of New York or
any unit thereof or any state agency, provided that all  of  the  moneys
received or recovered are immediately transferred to the relevant public
authority,  public  benefit  corporation,  department, fund, program, or
endowment; (5) moneys to be refunded to an individual or entity  as  (i)
an  overpayment  of  a  tax, fine, penalty, fee, insurance premium, loan
payment, charge or surcharge; (ii) a return of seized assets, or (iii) a
payment made in error; and (6) moneys to  be  used  to  prevent,  abate,
restore,  mitigate,  or  control  any  identifiable instance of prior or
ongoing water, land or air pollution.
  S 5. Paragraph (b) of subdivision 16 of section 63  of  the  executive
law, as added by section 4 of part HH of chapter 55 of the laws of 2014,
is amended to read as follows:
  (b) Paragraph (a) of this subdivision shall not apply to any provision
in  the resolution of a claim or cause of action providing (1) moneys to
be distributed to the federal government, to a local government,  or  to
any  holder  of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2)  moneys  TO  BE
DISTRIBUTED  TO A WHISTLEBLOWER PURSUANT TO SECTION THREE HUNDRED FIFTY-

A. 7304                            10

THREE-A OF THE GENERAL BUSINESS LAW, OR  to  be  distributed  solely  or
exclusively  as  a  payment  of damages or restitution to individuals or
entities that were specifically injured or harmed by the defendant's  or
settling  party's  conduct and that are identified in, or can be identi-
fied by the terms of, the relevant judgment, stipulation, decree, agree-
ment to settle, assurance  of  discontinuance,  or  relevant  instrument
resolving the claim or cause of action; (3) moneys recovered or obtained
by  the  attorney  general  where  application  of paragraph (a) of this
subdivision is prohibited by federal law, rule, or regulation, or  would
result  in  the  reduction  or  loss of federal funds or eligibility for
federal benefits pursuant to  federal  law,  rule,  or  regulation;  (4)
moneys  recovered  or  obtained by or on behalf of a public authority, a
public benefit corporation, the department of taxation and finance,  the
workers'  compensation  board,  the  New  York  state  higher  education
services corporation, the tobacco settlement  financing  corporation,  a
state  or  local  retirement  system, an employee health benefit program
administered by the New York state  department  of  civil  service,  the
Title  IV-D  child  support  fund, the lottery prize fund, the abandoned
property fund, or an endowment of the state university of  New  York  or
any  unit  thereof  or any state agency, provided that all of the moneys
received or recovered are immediately transferred to the relevant public
authority, public benefit corporation,  department,  fund,  program,  or
endowment;  (5)  moneys to be refunded to an individual or entity as (i)
an overpayment of a tax, fine, penalty,  fee,  insurance  premium,  loan
payment, charge or surcharge; (ii) a return of seized assets; or (iii) a
payment  made  in  error;  and  (6) moneys to be used to prevent, abate,
restore, mitigate or control any identifiable instance of prior or ongo-
ing water, land or air pollution.
  S 6. This act shall take effect on the ninetieth day  after  it  shall
have become a law.