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Sponsors
1 Co-sponsor
History
- Committee discharged and committed to rules
- Notice of committee consideration - requested
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes a public retirement system, mutual fund, or other institutional investor to bring actions for damages sustained due to violations of the Martin Act
In Assembly Committee · Governmental Employees · Sponsor David Weprin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2677
Title of bill
An act to amend the business corporation law and the retirement and social security law, in relation to authorizing certain actions by institutional investors
Purpose or general idea
This bill would provide authority to large institutional investors, including the state's pension fund to bring actions for damages resulting from violations of the State's securities laws.
Summary of specific provisions
Amends the BCL and R&SS Law to allow mutual funds and institutional investors, and the state retirement fund to bring an action for damages as a result of violating state securities laws.
Justification
As a result of recent corporate wrongdoings, trustees of large institutional investors such as mutual funds or the State's pension fund, have found themselves without remedy for damages and massive losses due to corporate violations of state securities laws. Under current law, the State attorney general has broad powers to prevent fraudulent securities practices, yet large institutional investors have no right of action when the state's securities laws are violated, because New York is only one or two states without such remedy. This bill only furthers the purposes of the Martin Act which are to deter fraudulent practices in the sale of securities and protect investors thereof.
Investors, under current federal law, may make damage claims in federal court under the Private Securities Litigation Reform Act, but no such avenue exists for state securities laws. By bringing action in State court, large institutional investors can have an appropriate avenue to bring damage claims against corporations established themselves by state law. The amended version of this bill incorporates the recommendations of the Comptroller of the State of New York, the sole trustee of the State's pension fund, who fully supports the legislation.
Prior legislative history
Referred to Senate Rules Committee (2008) A.8949-A (2003-04), A.2102 (2005-06; Passed Assembly). A.1369 (2007-0008; Passed Assembly in 2007). 2009-10: Schneiderman S.5768
Fiscal implication for state and local governments
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.