Assembly Bill A6242

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6242
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 1, 2017
                                ___________
 
 Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
   on Codes
 
 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".
   § 2. The general business law is amended by adding a new section 353-b
 to read as follows:
   § 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07805-01-7
              

 A. 6242                             2
 
   (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.
   §  3.  Section  353 of the general business law is amended by adding a
 new subdivision 5 to read as follows:
   5. 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.
   § 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.