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History
- Referred to consumer protection
- Print number 4497a
- Amend and recommit to consumer protection
- Referred to consumer protection
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.
Enacts the "institutional investor recovery act"
In Assembly Committee · Codes · Sponsor Rory Lancman
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S4497A
Title of bill
An act to amend the general business law, in relation to enacting the "institutional investor recovery act"
Purpose
This bill would authorize public pension funds and Taft Hartley pension funds to bring actions for damages resulting from violations of the state's Martin Act.
Summary of provisions
Section 1 names the bill the "institutional investor recovery act."
Section 2 amends the general business law by adding a new section 353-b to allow public retirement systems and multi-employer health and welfare plans to bring an action for damages against an entity that committed, aided or abetted or participated in securities fraud under the Martin Act within six years from discovering the alleged prohibited act.
Section 3 amends section 353 of the general business law to add a new subdivision 4 clarifying that nothing in the act will preempt any purchaser or seller of securities from bringing any common law claims concerning alleged deceptions made in a securities or commodities transaction.
Section 4 provides for the act to take effect immediately and apply to causes of action accruing and actions pending before, on, or after the effective date.
Justification
Public pension funds and private sector multi-employer health and welfare plans have found themselves without remedy for damages and massive losses due to violations of state securities laws. Under current law, the state attorney general has broad powers to prosecute fraudulent securities practices, yet investors have no such right under the state's securities laws, making New York only one of two states without such remedy.
While investors may assert damage claims in federal court for violations of federal securities law, such claims are highly restrictive in both substance and procedure, extinguishing many otherwise valid claims of wrongdoing. Investors should have the right to bring claims on their own behalf under New York's securities law.
Legislative history
New bill.
Effective date
The act to take effect immediately and apply to causes of action accruing and actions pending before, on, or after the effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.