S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1087
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 10, 2017
                                ___________
 
 Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
   tee on Judiciary
 
 AN ACT to amend the civil practice law and rules,  in  relation  to  the
   undertaking required during the pendency of a stay of enforcement of a
   judgment  against  a  participating  or non-participating manufacturer
   under the master settlement agreement

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The civil practice law and rules is amended by adding a new
 section 5519-a to read as follows:
   §  5519-A. STAY OF ENFORCEMENT FOR MASTER SETTLEMENT AGREEMENT PARTIC-
 IPATING AND NON-PARTICIPATING MANUFACTURERS OR THEIR SUCCESSORS. (A)  IN
 CIVIL LITIGATION CONCERNING A THEORY OF LIABILITY RELATING TO THE HEALTH
 EFFECTS, DESIGN, OR MARKETING OF, OR REPRESENTATIONS CONCERNING, TOBACCO
 PRODUCTS  AS  DEFINED  BY  THE  MASTER  SETTLEMENT  AGREEMENT,  AND THAT
 INVOLVES A PARTICIPATING OR  NON-PARTICIPATING  MANUFACTURER,  AS  THOSE
 TERMS  ARE  DEFINED  IN THE MASTER SETTLEMENT AGREEMENT, OR ANY OF THEIR
 SUCCESSORS, OR PARENT ENTITIES FOUND TO BE LIABLE  BY  VIRTUE  OF  THEIR
 STATUS AS PARENT TO HAVE CONTROLLED THE CONDUCT OF SUCH MANUFACTURERS OR
 THEIR  SUCCESSORS,  THE  UNDERTAKING REQUIRED DURING THE PENDENCY OF ALL
 APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE  COURTS  IN  ORDER  TO
 STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING LEGAL, EQUITABLE OR
 OTHER  RELIEF  DURING  THE  ENTIRE COURSE OF APPELLATE REVIEW, INCLUDING
 REVIEW BY THE UNITED STATES SUPREME COURT, SHALL BE SET PURSUANT TO  THE
 APPLICABLE  PROVISIONS  OF  LAW;  PROVIDED,  HOWEVER,  THAT THE COURT OF
 ORIGINAL INSTANCE SHALL SET THE TOTAL UNDERTAKING REQUIRED IN AN  AMOUNT
 NOT TO EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARDLESS OF THE VALUE
 OF  THE JUDGMENT APPEALED. NOTHING HEREIN SHALL AFFECT THE DISCRETION OF
 AN APPELLATE COURT PURSUANT TO SUBDIVISION  (C)  OF  SECTION  FIFTY-FIVE
 HUNDRED  NINETEEN OF THIS ARTICLE.  WHERE THE COURT SETS THE UNDERTAKING
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06543-01-7
              

 A. 1087                             2
 
 IN AN AMOUNT LESS THAN THE JUDGMENT,  THE  APPEAL  SHALL  BE  DILIGENTLY
 PROSECUTED IN GOOD FAITH.
   (B)  AS USED IN THIS SECTION, "MASTER SETTLEMENT AGREEMENT" SHALL HAVE
 THE SAME MEANING AS SET FORTH IN SUBDIVISION FIVE  OF  SECTION  THIRTEEN
 HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   (C)  NOTHING  CONTAINED  IN  THIS SECTION SHALL BE READ TO ALLOW:  (I)
 SUCH PARTICIPATING MANUFACTURER  TO  CURTAIL  ITS  FINANCIAL  OBLIGATION
 UNDER  THE  MASTER  SETTLEMENT AGREEMENT; OR (II) SUCH NON-PARTICIPATING
 MANUFACTURER TO CURTAIL ITS OBLIGATION TO PLACE THE AMOUNTS SPECIFIED IN
 SUBDIVISION TWO OF SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF THE PUBLIC
 HEALTH LAW INTO A QUALIFIED ESCROW FUND AS DEFINED IN SUBDIVISION SIX OF
 SECTION THIRTEEN HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have  become a law, and shall apply to any cause of action pending on or
 filed on or after such effective date.