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:
    1    Section  1.  Section  353-a  of the general business law is renumbered
    2  section 353-b and a new section 353-a is added to read as follows:
    3    S 353-A. SECURITIES FRAUD WHISTLEBLOWER  INCENTIVES  AND  PROTECTIONS.
    4  1. DEFINITIONS. (A) "COVERED ENFORCEMENT ACTION" SHALL MEAN: (I) ANY ONE
    5  OR  MORE  ENFORCEMENT  ACTIONS  BROUGHT  BY  THE  ATTORNEY GENERAL UNDER
    6  SECTION THREE HUNDRED FIFTY-THREE OF THIS ARTICLE THAT RESULTS IN  MONE-
    7  TARY  SANCTIONS  EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE; OR (II)
    8  ANY INVESTIGATIONS, INQUIRIES, SETTLEMENTS OR ANY OTHER  ACTION  BROUGHT
    9  OR MADE BY THE ATTORNEY GENERAL IN RELATION TO A VIOLATION OF THIS ARTI-
   10  CLE  THAT RESULTS IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN
   11  THE AGGREGATE.
   12    (B) "MONETARY SANCTIONS" SHALL MEAN:
   13    (I) ANY MONIES ORDERED TO BE PAID,  OR  THAT  ARE  OTHERWISE  PAID  OR
   14  FORFEITED AS A RESULT OF A COVERED ENFORCEMENT ACTION OR RELATED ACTION;
   15  AND (II) ANY MONIES DEPOSITED INTO A DISGORGEMENT FUND OR PUBLIC BENEFIT
   16  FUND AS A RESULT OF A COVERED ENFORCEMENT ACTION OR RELATED ACTION.
   17    (C) "ORIGINAL INFORMATION" SHALL MEAN INFORMATION THAT:
   18    (I)  IS DERIVED FROM THE INDEPENDENT KNOWLEDGE OR ANALYSIS OF A WHIST-
   19  LEBLOWER;
   20    (II) IS NOT KNOWN TO THE  ATTORNEY  GENERAL  FROM  ANY  OTHER  SOURCE,
   21  UNLESS THE WHISTLEBLOWER IS THE ORIGINAL SOURCE OF THE INFORMATION; AND
   22    (III) IS NOT EXCLUSIVELY DERIVED FROM AN ALLEGATION MADE IN A JUDICIAL
   23  OR  ADMINISTRATIVE  HEARING, IN A GOVERNMENTAL REPORT, HEARING, AUDIT OR
   24  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
    1  SOURCE  OF  THE  INFORMATION.  FOR PURPOSES OF THIS SUBPARAGRAPH: (A) AN
    2  ALLEGATION IS NOT MADE IN A GOVERNMENTAL REPORT OR INVESTIGATION BECAUSE
    3  IT WAS DISCLOSED OR PROVIDED PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFI-
    4  CERS  LAW,  OR  UNDER  ANY  OTHER  FEDERAL,  STATE OR LOCAL LAW, RULE OR
    5  PROGRAM ENABLING THE PUBLIC TO REQUEST, RECEIVE  OR  VIEW  DOCUMENTS  OR
    6  INFORMATION  IN  THE  POSSESSION OF PUBLIC OFFICIALS OR PUBLIC AGENCIES;
    7  AND (B) AN ALLEGATION IS NOT MADE  IN  THE  NEWS  MEDIA  MERELY  BECAUSE
    8  INFORMATION  OF  ALLEGATIONS  OR  TRANSACTIONS  HAVE  BEEN POSTED ON THE
    9  INTERNET OR ON A COMPUTER NETWORK.
   10    (D) "RELATED ACTION" SHALL MEAN ANY JUDICIAL OR ADMINISTRATIVE  ACTION
   11  BROUGHT  BY  A  STATE  OR LOCAL AGENCY OR ENTITY BASED UPON THE ORIGINAL
   12  INFORMATION PROVIDED BY A WHISTLEBLOWER TO THE ATTORNEY GENERAL PURSUANT
   13  TO THIS SECTION THAT RESULTS IN MONETARY SANCTIONS EXCEEDING ONE MILLION
   14  DOLLARS IN THE AGGREGATE.
   15    (E) "WHISTLEBLOWER" SHALL MEAN ANY INDIVIDUAL OR ENTITY  WHO  PROVIDES
   16  OR TWO OR MORE INDIVIDUALS OR ENTITIES ACTING JOINTLY WHO PROVIDE INFOR-
   17  MATION TO THE ATTORNEY GENERAL RELATING TO A VIOLATION OF THIS ARTICLE.
   18    2.  WHISTLEBLOWER AWARDS. (A) ONE OR MORE WHISTLEBLOWERS WHO VOLUNTAR-
   19  ILY PROVIDE ORIGINAL INFORMATION TO THE ATTORNEY GENERAL  THAT  WAS  THE
   20  BASIS  FOR A SUCCESSFUL COVERED ENFORCEMENT ACTION, OR A RELATED ACTION,
   21  SHALL, IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION, BE ENTITLED TO
   22  RECEIVE BETWEEN TEN AND THIRTY PERCENT OF THE  MONETARY  SANCTIONS  THAT
   23  RESULT  FROM SUCH ACTION. ANY PAYMENT TO A PERSON PURSUANT TO THIS PARA-
   24  GRAPH SHALL BE MADE FROM THE MONETARY SANCTIONS OF THE COVERED  ENFORCE-
   25  MENT ACTION OR RELATED ACTION.
   26    (B) A WHISTLEBLOWER WHO PROVIDES THE ATTORNEY GENERAL WITH INFORMATION
   27  RELATED  TO INFORMATION PREVIOUSLY REPORTED TO THE ATTORNEY GENERAL BY A
   28  WHISTLEBLOWER WHO IS ELIGIBLE FOR AN AWARD UNDER THIS SECTION SHALL  NOT
   29  BE  ENTITLED  TO AN AWARD, UNLESS THE INFORMATION PROVIDED BY THE SECOND
   30  WHISTLEBLOWER MATERIALLY ADDS TO THE INFORMATION REPORTED TO THE  ATTOR-
   31  NEY GENERAL BY THE FIRST WHISTLEBLOWER.
   32    (C)  THE DETERMINATION OF THE AMOUNT OF AN AWARD MADE WITHIN THE RANGE
   33  ESTABLISHED BY THIS SECTION SHALL BE SOLELY IN  THE  DISCRETION  OF  THE
   34  ATTORNEY  GENERAL. IN DETERMINING THE AMOUNT OF AN AWARD MADE WITHIN THE
   35  RANGE ESTABLISHED BY THIS SECTION, THE ATTORNEY GENERAL SHALL TAKE  INTO
   36  CONSIDERATION THE FOLLOWING FACTORS:
   37    (I)  THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE WHISTLEBLOWER
   38  TO THE SUCCESS OF THE COVERED ENFORCEMENT ACTION OR RELATED ACTION;
   39    (II) THE DEGREE OF ASSISTANCE PROVIDED BY THE  WHISTLEBLOWER  AND  ANY
   40  LEGAL  REPRESENTATIVE  OF  THE  WHISTLEBLOWER IN THE COVERED ENFORCEMENT
   41  ACTION OR RELATED ACTION;
   42    (III) THE INTEREST OF THE STATE IN DETERRING VIOLATIONS OF THIS  ARTI-
   43  CLE  AND PROMOTING THE REPORTING BY WHISTLEBLOWERS OF INFORMATION RELAT-
   44  ING TO SUCH VIOLATIONS; AND
   45    (IV) SUCH ADDITIONAL RELEVANT FACTORS  AS  THE  ATTORNEY  GENERAL  MAY
   46  ESTABLISH BY RULE OR REGULATION.
   47    (D) NO AWARD SHALL BE MADE TO ANY WHISTLEBLOWER IF THE ATTORNEY GENER-
   48  AL SHALL DETERMINE THAT THE WHISTLEBLOWER:
   49    (I)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
   50  INFORMATION SUBMITTED TO THE ATTORNEY  GENERAL,  A  MEMBER,  OFFICER  OR
   51  EMPLOYEE  OF A FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY THAT REGU-
   52  LATES SECURITIES OR THAT PROSECUTES SECURITIES VIOLATIONS;
   53    (II) WAS CONVICTED OF A CRIMINAL  VIOLATION  RELATED  TO  THE  COVERED
   54  ENFORCEMENT  ACTION  FOR WHICH THE WHISTLEBLOWER OTHERWISE COULD RECEIVE
   55  AN AWARD UNDER THIS SECTION;
       A. 7304                             3
    1    (III) MATERIALLY FAILED TO SUBMIT INFORMATION TO THE ATTORNEY  GENERAL
    2  IN SUCH FORM AS THE ATTORNEY GENERAL MAY REQUIRE;
    3    (IV)  IS,  OR  WAS AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
    4  INFORMATION SUBMITTED TO THE ATTORNEY GENERAL, AN OFFICER OR EMPLOYEE OF
    5  A SELF-REGULATORY ORGANIZATION THAT REGULATES SECURITIES AND WHO  HAS  A
    6  DUTY  BY  VIRTUE  OF SUCH POSITION TO INVESTIGATE OR REPORT A SECURITIES
    7  VIOLATION; PROVIDED THAT THIS SUBPARAGRAPH SHALL NOT APPLY IF THE WHIST-
    8  LEBLOWER REPORTED  THE  ORIGINAL  INFORMATION  TO  SUCH  SELF-REGULATORY
    9  ORGANIZATION  AND  THE ATTORNEY GENERAL DETERMINES THAT THE ORGANIZATION
   10  DID NOT TAKE ADEQUATE MEASURES WITHIN SIXTY DAYS TO INVESTIGATE OR SANC-
   11  TION CONDUCT THAT WOULD BE A VIOLATION OF THIS ARTICLE; OR
   12    (V) (A) KNOWINGLY AND WILLFULLY MAKES FALSE, FICTITIOUS OR  FRAUDULENT
   13  STATEMENTS  OR  REPRESENTATIONS  TO THE ATTORNEY GENERAL WHEN SUBMITTING
   14  INFORMATION UNDER THIS SECTION, OR (B) USES ANY FALSE WRITING  OR  DOCU-
   15  MENT  KNOWING  THE WRITING OR DOCUMENT CONTAINS ANY FALSE, FICTITIOUS OR
   16  FRAUDULENT STATEMENT OR ENTRY WHEN  SUBMITTING  INFORMATION  UNDER  THIS
   17  SECTION.
   18    (E)  (I)  ANY  DETERMINATION  MADE  UNDER  THIS SUBDIVISION, INCLUDING
   19  WHETHER, TO WHOM, OR IN WHAT AMOUNT TO MAKE  AWARDS,  SHALL  BE  IN  THE
   20  DISCRETION  OF  THE  ATTORNEY  GENERAL;  PROVIDED THAT SUCH AMOUNT SHALL
   21  CONFORM TO THE RANGE ESTABLISHED BY PARAGRAPH (A) OF  THIS  SUBDIVISION,
   22  AND  SHALL TAKE INTO ACCOUNT THE FACTORS LISTED IN PARAGRAPH (C) OF THIS
   23  SUBDIVISION.
   24    (II) ANY SUCH DETERMINATION MAY BE CHALLENGED IN ACCORDANCE WITH ARTI-
   25  CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES, PROVIDED THAT ANY
   26  SUCH CHALLENGE SHALL BE BROUGHT WITHIN FORTY-FIVE DAYS OF  THE  DATE  OF
   27  ANY SUCH DETERMINATION.
   28    (F)  NO  CONTRACT WITH THE DEPARTMENT OF LAW OR ANY OTHER AGENCY SHALL
   29  BE NECESSARY FOR ANY  WHISTLEBLOWER  TO  RECEIVE  AN  AWARD  UNDER  THIS
   30  SECTION.
   31    (G)(I)  ANY  WHISTLEBLOWER  WHO  MAKES A CLAIM FOR AN AWARD UNDER THIS
   32  SECTION MAY BE REPRESENTED BY COUNSEL.
   33    (II) ANY WHISTLEBLOWER WHO ANONYMOUSLY MAKES  A  CLAIM  FOR  AN  AWARD
   34  UNDER  THIS SECTION SHALL BE REPRESENTED BY COUNSEL IF THE WHISTLEBLOWER
   35  ANONYMOUSLY SUBMITS THE INFORMATION UPON WHICH THE CLAIM IS BASED. PRIOR
   36  TO THE PAYMENT OF AN AWARD, A WHISTLEBLOWER SHALL DISCLOSE THE  IDENTITY
   37  OF  THE WHISTLEBLOWER AND PROVIDE SUCH OTHER INFORMATION AS THE ATTORNEY
   38  GENERAL MAY REQUIRE, DIRECTLY OR THROUGH COUNSEL FOR THE WHISTLEBLOWER.
   39    (H)(I) THE ATTORNEY GENERAL SHALL NOT DISCLOSE ANY  INFORMATION  WHICH
   40  COULD  REASONABLY BE EXPECTED TO REVEAL THE IDENTITY OF A WHISTLEBLOWER,
   41  UNLESS AND UNTIL SUCH INFORMATION IS REQUIRED TO BE DISCLOSED TO A PARTY
   42  IN CONNECTION WITH AN ACTION  OR  PROCEEDING  BROUGHT  BY  THE  ATTORNEY
   43  GENERAL,  A  LAWFULLY ISSUED SUBPOENA BY A FEDERAL OR STATE LAW ENFORCE-
   44  MENT AUTHORITY, OR OTHERWISE BY A COURT ORDER. SUCH INFORMATION SHALL BE
   45  DEEMED INFORMATION EXEMPTED FROM DISCLOSURE UNDER  ARTICLE  SIX  OF  THE
   46  PUBLIC OFFICERS LAW.
   47    (II)  NOTWITHSTANDING  THE PRECEDING SUBPARAGRAPH, WITHOUT THE LOSS OF
   48  ITS STATUS AS CONFIDENTIAL IN THE HANDS OF  THE  ATTORNEY  GENERAL,  ALL
   49  INFORMATION  REFERRED TO IN THIS SUBDIVISION MAY, WHEN DETERMINED BY THE
   50  ATTORNEY GENERAL TO BE NECESSARY TO  ACCOMPLISH  THE  PURPOSES  OF  THIS
   51  ARTICLE,  BE  MADE  AVAILABLE  TO  THE  APPROPRIATE  REGULATORY  AND LAW
   52  ENFORCEMENT AUTHORITIES  OF  THIS  STATE,  ANOTHER  STATE,  THE  FEDERAL
   53  GOVERNMENT,  FOREIGN GOVERNMENTS, OR SELF-REGULATORY ORGANIZATIONS. EACH
   54  REGULATORY OR LAW ENFORCEMENT AUTHORITY TO WHICH  THE  ATTORNEY  GENERAL
   55  MAKES  AVAILABLE  THE  INFORMATION REFERRED TO IN THE PRECEDING SUBPARA-
       A. 7304                             4
    1  GRAPH SHALL AGREE TO MAINTAIN SUCH INFORMATION IN ACCORDANCE  WITH  SUCH
    2  ASSURANCES OF CONFIDENTIALITY AS THE ATTORNEY GENERAL DEEMS APPROPRIATE.
    3    3.  RETALIATION.  (A)(I)  IT  SHALL  BE  UNLAWFUL  FOR  ANY CURRENT OR
    4  PROSPECTIVE EMPLOYER, CONTRACTOR OR AGENT TO DISCHARGE, DEMOTE, SUSPEND,
    5  THREATEN OR HARASS, DIRECTLY OR  INDIRECTLY,  OR  IN  ANY  OTHER  MANNER
    6  DISCRIMINATE AGAINST ANY PERSON IN HIRING OR IN THE TERMS AND CONDITIONS
    7  OF  EMPLOYMENT  OR  CONTRACTING  BECAUSE  OF ANY LAWFUL ACT DONE BY SUCH
    8  PERSON: (A) IN PROVIDING INFORMATION TO THE ATTORNEY GENERAL PURSUANT TO
    9  THIS SECTION; (B) IN INITIATING,  TESTIFYING  IN  OR  ASSISTING  IN  ANY
   10  INVESTIGATION  OR  COVERED ENFORCEMENT ACTION UNDER THIS ARTICLE, OR ANY
   11  RELATED ACTION; OR (C) IN REPORTING ANY VIOLATION  OF  THIS  ARTICLE  TO
   12  ANOTHER  GOVERNMENT  ENTITY,  TO  A DIRECT SUPERVISOR OR TO A COMPLIANCE
   13  OFFICER OF SUCH EMPLOYER, CONTRACTOR OR AGENT.
   14    (II) ANY PERSON WHO IS DISCHARGED, DEMOTED, SUSPENDED,  THREATENED  OR
   15  HARASSED  OR  IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE TERMS AND
   16  CONDITIONS OF EMPLOYMENT, OR OTHERWISE HARMED OR PENALIZED BY AN EMPLOY-
   17  ER, OR A PROSPECTIVE EMPLOYER, BECAUSE  OF  LAWFUL  ACTS  DONE  BY  SUCH
   18  PERSON  OR  ASSOCIATED  OTHERS IN FURTHERANCE OF ANY COVERED ENFORCEMENT
   19  ACTION OR RELATED ACTION OR OTHER EFFORTS TO STOP ONE OR MORE VIOLATIONS
   20  OF THIS ARTICLE, INCLUDING BUT NOT LIMITED TO REPORTING SUCH  VIOLATIONS
   21  TO  ANY  GOVERNMENT  ENTITY,  TO  A DIRECT SUPERVISOR OR TO A COMPLIANCE
   22  OFFICER OF SUCH EMPLOYER OR PROSPECTIVE EMPLOYER, SHALL BE  ENTITLED  TO
   23  ALL  RELIEF  NECESSARY  TO  MAKE  SUCH  PERSON  WHOLE. SUCH RELIEF SHALL
   24  INCLUDE BUT NOT BE LIMITED TO:
   25    (A) AN INJUNCTION TO RESTRAIN CONTINUED DISCRIMINATION;
   26    (B) HIRING, CONTRACTING OR REINSTATEMENT TO THE POSITION  SUCH  PERSON
   27  WOULD HAVE HAD BUT FOR THE DISCRIMINATION OR TO AN EQUIVALENT POSITION;
   28    (C) REINSTATEMENT OF FULL FRINGE BENEFITS AND SENIORITY RIGHTS;
   29    (D) PAYMENT OF TWO TIMES BACK PAY, PLUS INTEREST; AND
   30    (E)  COMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A RESULT OF THE
   31  DISCRIMINATION, INCLUDING LITIGATION  COSTS  AND  REASONABLE  ATTORNEYS'
   32  FEES.
   33    (B)  FOR  PURPOSES  OF THIS SUBDIVISION, A "LAWFUL" ACT SHALL INCLUDE,
   34  BUT NOT BE LIMITED TO, OBTAINING OR TRANSMITTING TO THE ATTORNEY GENERAL
   35  OR PRIVATE COUNSEL EMPLOYED TO INVESTIGATE OR POTENTIALLY FILE WITH  THE
   36  ATTORNEY  GENERAL  INFORMATION  RELATING TO A VIOLATION OF THIS ARTICLE,
   37  EVEN THOUGH SUCH  ACT  MAY  VIOLATE  A  CONTRACT,  SEVERANCE  AGREEMENT,
   38  EMPLOYMENT TERM, OR DUTY OWED TO THE EMPLOYER OR CONTRACTOR.
   39    (C)  ANY  PERSON SEEKING RELIEF PURSUANT TO SUBPARAGRAPH (II) OF PARA-
   40  GRAPH (A) OF THIS SUBDIVISION MAY BRING AN  ACTION  IN  THE  APPROPRIATE
   41  SUPREME  COURT  FOR  THE  RELIEF  PROVIDED  IN THIS SUBDIVISION. A CIVIL
   42  ACTION UNDER THIS SUBDIVISION SHALL BE COMMENCED NO LATER THAN TEN YEARS
   43  AFTER THE DATE ON WHICH THE VIOLATION OF THIS ARTICLE IS COMMITTED.
   44    4. NO WAIVER OR PREEMPTION. (A) THIS SECTION SHALL NOT:  (I)  PREEMPT,
   45  LIMIT OR RESTRICT THE AUTHORITY OR DISCRETION OF THE ATTORNEY GENERAL TO
   46  INVESTIGATE OR ENFORCE VIOLATIONS OF THIS ARTICLE; (II) LIMIT ANY POWERS
   47  GRANTED  ELSEWHERE IN THIS CHAPTER AND OTHER LAWS TO THE ATTORNEY GENER-
   48  AL, STATE AGENCIES OR LOCAL GOVERNMENTS TO INVESTIGATE OR ENFORCE POSSI-
   49  BLE VIOLATIONS OF THIS ARTICLE;  (III)  AUTHORIZE  A  PRIVATE  RIGHT  OF
   50  ACTION INVOLVING FRAUDULENT PRACTICES IN CONNECTION WITH THE SECURITIES;
   51  (IV) PREVENT OR PROHIBIT A PERSON FROM VOLUNTARILY DISCLOSING ANY INFOR-
   52  MATION  CONCERNING  A  VIOLATION  OF THIS ARTICLE TO ANY LAW ENFORCEMENT
   53  AGENCY OR SELF-REGULATORY ORGANIZATION; OR (V) PREEMPT, LIMIT,  RESTRICT
   54  OR  OTHERWISE  AFFECT  THE RIGHTS AND REWARDS PROVIDED TO QUI TAM PLAIN-
   55  TIFFS UNDER ARTICLE THIRTEEN OF THE STATE FINANCE LAW.
       A. 7304                             5
    1    (B) THE RIGHTS AND REMEDIES PROVIDED FOR IN THIS SECTION  MAY  NOT  BE
    2  WAIVED  BY  ANY  AGREEMENT,  POLICY FORM, OR CONDITION OF EMPLOYMENT. NO
    3  SALARY OR WAGES EARNED BY THE WHISTLEBLOWER DURING HIS  OR  HER  EMPLOY-
    4  MENT,  NOR  ANY  CONSIDERATION  PROVIDED THE WHISTLEBLOWER IN CONNECTION
    5  WITH  HIS  OR  HER  SEVERANCE  FROM SUCH EMPLOYMENT, RELATED TO ORIGINAL
    6  INFORMATION OR THE COVERED ENFORCEMENT ACTION OR RELATED ACTION  MAY  BE
    7  RECOUPED BY ANY RIGHT OF ACTION BROUGHT BY THE EMPLOYER.
    8    (C)  NOTHING  IN  THIS SECTION SHALL BE DEEMED TO DIMINISH THE RIGHTS,
    9  PRIVILEGES, OR REMEDIES OF ANY WHISTLEBLOWER UNDER ANY FEDERAL OR  STATE
   10  LAW, OR UNDER ANY COLLECTIVE BARGAINING AGREEMENT.
   11    5. REGULATIONS. THE ATTORNEY GENERAL IS AUTHORIZED TO ADOPT SUCH RULES
   12  AND  REGULATIONS  AS  ARE  NECESSARY  TO EFFECTUATE THE PURPOSES OF THIS
   13  SECTION; PROVIDED THAT THE  ATTORNEY  GENERAL  SHALL  CONSULT  WITH  THE
   14  SUPERINTENDENT  OF THE DEPARTMENT OF FINANCIAL SERVICES PRIOR TO PROPOS-
   15  ING SUCH RULES OR REGULATIONS.
   16    S 2. Subsection (a) of section 104 of the financial  services  law  is
   17  amended  by  adding  five  new  paragraphs  6, 7, 8, 9 and 10 to read as
   18  follows:
   19    (6) "COVERED JUDICIAL OR ADMINISTRATIVE ACTION" SHALL  MEAN:  (A)  ANY
   20  ONE OR MORE JUDICIAL OR ADMINISTRATIVE ACTIONS BROUGHT BY THE DEPARTMENT
   21  UNDER THE INSURANCE LAW, THE BANKING LAW OR THIS CHAPTER THAT RESULTS IN
   22  MONETARY  SANCTIONS  EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE; AND
   23  (B) ANY INVESTIGATIONS, INQUIRIES,  SETTLEMENTS  OR  ANY  OTHER  ACTIONS
   24  BROUGHT OR MADE WITHIN THE SOLE DISCRETION OF THE SUPERINTENDENT, BY THE
   25  DEPARTMENT UNDER THE INSURANCE LAW, THE BANKING LAW OR THIS CHAPTER THAT
   26  RESULT IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN THE AGGRE-
   27  GATE.
   28    (7) "MONETARY SANCTIONS" SHALL MEAN:
   29    (A)  ANY  MONIES  ORDERED  TO  BE  PAID, OR THAT ARE OTHERWISE PAID OR
   30  FORFEITED AS A RESULT OF A COVERED JUDICIAL OR ADMINISTRATIVE ACTION  OR
   31  ANY SETTLEMENT OF SUCH ACTION, OR RELATED ACTION; AND
   32    (B)  ANY  MONIES  DEPOSITED INTO A DISGORGEMENT FUND OR PUBLIC BENEFIT
   33  FUND AS A RESULT OF A COVERED JUDICIAL OR ADMINISTRATIVE ACTION  OR  ANY
   34  SETTLEMENT OF SUCH ACTION, OR RELATED ACTION.
   35    (8) "ORIGINAL INFORMATION" SHALL MEAN INFORMATION THAT:
   36    (A)  IS DERIVED FROM THE INDEPENDENT KNOWLEDGE OR ANALYSIS OF A WHIST-
   37  LEBLOWER;
   38    (B) IS NOT KNOWN TO THE DEPARTMENT FROM ANY OTHER SOURCE,  UNLESS  THE
   39  WHISTLEBLOWER IS THE ORIGINAL SOURCE OF THE INFORMATION; AND
   40    (C)  IS  NOT EXCLUSIVELY DERIVED FROM AN ALLEGATION MADE IN A JUDICIAL
   41  OR ADMINISTRATIVE HEARING, IN A GOVERNMENTAL REPORT, HEARING,  AUDIT  OR
   42  INVESTIGATION  OR  FROM  THE  NEWS  MEDIA, UNLESS THE WHISTLEBLOWER IS A
   43  SOURCE OF THE INFORMATION.  FOR PURPOSES OF THIS  SUBPARAGRAPH:  (I)  AN
   44  ALLEGATION IS NOT MADE IN A GOVERNMENTAL REPORT OR INVESTIGATION BECAUSE
   45  IT WAS DISCLOSED OR PROVIDED PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFI-
   46  CERS  LAW,  OR  UNDER  ANY  OTHER  FEDERAL,  STATE OR LOCAL LAW, RULE OR
   47  PROGRAM ENABLING THE PUBLIC TO REQUEST, RECEIVE  OR  VIEW  DOCUMENTS  OR
   48  INFORMATION  IN  THE  POSSESSION OF PUBLIC OFFICIALS OR PUBLIC AGENCIES;
   49  AND (II) AN ALLEGATION IS NOT MADE IN  THE  NEWS  MEDIA  MERELY  BECAUSE
   50  INFORMATION  OF  ALLEGATIONS  OR  TRANSACTIONS  HAVE  BEEN POSTED ON THE
   51  INTERNET OR ON A COMPUTER NETWORK.
   52    (9) "RELATED ACTION" SHALL MEAN ANY JUDICIAL OR ADMINISTRATIVE  ACTION
   53  BROUGHT  BY  ANOTHER STATE OR LOCAL AGENCY OR ENTITY BASED UPON ORIGINAL
   54  INFORMATION PROVIDED BY A WHISTLEBLOWER TO THE DEPARTMENT  THAT  RESULTS
   55  IN MONETARY SANCTIONS EXCEEDING ONE MILLION DOLLARS IN THE AGGREGATE.
       A. 7304                             6
    1    (10)  "WHISTLEBLOWER" SHALL MEAN ANY INDIVIDUAL OR ENTITY WHO PROVIDES
    2  OR TWO OR MORE INDIVIDUALS ACTING JOINTLY WHO PROVIDE INFORMATION RELAT-
    3  ING TO A VIOLATION OF THE BANKING LAW, THE INSURANCE LAW,  THIS  CHAPTER
    4  OR RULES AND REGULATIONS PROMULGATED THEREUNDER TO THE DEPARTMENT.
    5    S  3. The financial services law is amended by adding two new sections
    6  410 and 411 to read as follows:
    7    S 410. FINANCIAL SERVICES  WHISTLEBLOWER  AWARDS.    (A)  (1)  IN  ANY
    8  COVERED  JUDICIAL  OR  ADMINISTRATIVE  ACTION, OR RELATED ACTION, ONE OR
    9  MORE WHISTLEBLOWERS WHO VOLUNTARILY PROVIDE ORIGINAL INFORMATION TO  THE
   10  DEPARTMENT THAT WAS THE BASIS FOR THE SUCCESSFUL JUDICIAL OR ADMINISTRA-
   11  TIVE  ACTION,  OR  A  RELATED  ACTION,  SHALL,  IN  ACCORDANCE  WITH THE
   12  PROVISIONS OF THIS SECTION, BE ENTITLED TO RECEIVE BETWEEN TEN AND THIR-
   13  TY PERCENT OF THE MONETARY SANCTIONS THAT RESULT FROM SUCH  ACTION.  ANY
   14  PAYMENT  TO  A  PERSON PURSUANT TO THIS PARAGRAPH SHALL BE MADE FROM THE
   15  MONETARY SANCTIONS OF THE COVERED JUDICIAL OR ADMINISTRATIVE ACTION,  OR
   16  RELATED ACTION.
   17    (2)  A  WHISTLEBLOWER  WHO  PROVIDES  THE  DEPARTMENT WITH INFORMATION
   18  RELATED TO INFORMATION PREVIOUSLY REPORTED TO THE DEPARTMENT BY A WHIST-
   19  LEBLOWER WHO IS ELIGIBLE FOR AN AWARD UNDER THIS SECTION  SHALL  NOT  BE
   20  ENTITLED  TO  AN  AWARD,  UNLESS  THE INFORMATION PROVIDED BY THE SECOND
   21  WHISTLEBLOWER MATERIALLY ADDS TO THE INFORMATION REPORTED TO THE DEPART-
   22  MENT BY THE FIRST WHISTLEBLOWER.
   23    (3) ANY AMOUNT PAID UNDER PARAGRAPH ONE OF THIS  SUBSECTION  SHALL  BE
   24  FIRST APPLIED IN ACCORDANCE WITH THE PROVISIONS OF SUCH PARAGRAPH BEFORE
   25  BEING  APPLIED,  IF  APPLICABLE,  IN ACCORDANCE WITH SUBPARAGRAPH (B) OF
   26  PARAGRAPH ONE OF SUBSECTION (A) OF SECTION FOUR HUNDRED  EIGHT  OF  THIS
   27  ARTICLE.
   28    (B)(1)  THE  DETERMINATION  OF  THE AMOUNT OF AN AWARD MADE WITHIN THE
   29  RANGE ESTABLISHED BY THIS SECTION SHALL BE SOLELY IN THE  DISCRETION  OF
   30  THE SUPERINTENDENT.
   31    (2) IN DETERMINING THE AMOUNT OF AN AWARD MADE WITHIN THE RANGE ESTAB-
   32  LISHED BY THIS SECTION, THE SUPERINTENDENT SHALL TAKE INTO CONSIDERATION
   33  THE FOLLOWING FACTORS:
   34    (A)  THE SIGNIFICANCE OF THE INFORMATION PROVIDED BY THE WHISTLEBLOWER
   35  TO THE SUCCESS OF THE COVERED JUDICIAL OR ADMINISTRATIVE ACTION;
   36    (B) THE DEGREE OF ASSISTANCE PROVIDED BY  THE  WHISTLEBLOWER  AND  ANY
   37  LEGAL  REPRESENTATIVE  OF  THE  WHISTLEBLOWER  IN  A COVERED JUDICIAL OR
   38  ADMINISTRATIVE ACTION;
   39    (C) THE INTEREST OF THE DEPARTMENT  IN  DETERRING  VIOLATIONS  OF  THE
   40  BANKING LAW, THE INSURANCE LAW OR THIS CHAPTER AND PROMOTING THE REPORT-
   41  ING BY WHISTLEBLOWERS OF INFORMATION RELATING TO SUCH VIOLATIONS; AND
   42    (D)  SUCH ADDITIONAL RELEVANT FACTORS AS THE SUPERINTENDENT MAY ESTAB-
   43  LISH BY RULE OR REGULATION.
   44    (C) NO AWARD SHALL BE MADE TO ANY WHISTLEBLOWER IF THE  SUPERINTENDENT
   45  SHALL DETERMINE THAT THE WHISTLEBLOWER:
   46    (1)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
   47  INFORMATION SUBMITTED TO THE DEPARTMENT, A MEMBER, OFFICER  OR  EMPLOYEE
   48  OF A FEDERAL, STATE OR LOCAL LAW ENFORCEMENT AGENCY THAT REGULATES BANK-
   49  ING, INSURANCE OR FINANCIAL SERVICES PRODUCTS; OR
   50    (2)  IS,  OR  WAS  AT THE TIME THE WHISTLEBLOWER ACQUIRED THE ORIGINAL
   51  INFORMATION SUBMITTED TO THE DEPARTMENT, AN OFFICER  OR  EMPLOYEE  OF  A
   52  SELF-REGULATORY ORGANIZATION THAT REGULATES BANKING, INSURANCE OR FINAN-
   53  CIAL  SERVICES PRODUCTS AND WHO HAS A DUTY BY VIRTUE OF SUCH POSITION TO
   54  INVESTIGATE OR REPORT A LEGAL VIOLATION INVOLVING BANKING, INSURANCE, OR
   55  FINANCIAL SERVICES PRODUCTS; PROVIDED THAT THIS SUBPARAGRAPH  SHALL  NOT
   56  APPLY IF THE WHISTLEBLOWER PROPERLY REPORTED THE ORIGINAL INFORMATION TO
       A. 7304                             7
    1  SUCH SELF-REGULATORY ORGANIZATION AND THE SUPERINTENDENT DETERMINES THAT
    2  THE  ORGANIZATION  DID  NOT  TAKE ADEQUATE MEASURES WITHIN SIXTY DAYS TO
    3  INVESTIGATE CONDUCT THAT WOULD BE A VIOLATION OF THIS ARTICLE; OR
    4    (3) WAS CONVICTED OF A CRIMINAL VIOLATION RELATED TO THE COVERED JUDI-
    5  CIAL  OR  ADMINISTRATIVE  ACTION  FOR  WHICH THE WHISTLEBLOWER OTHERWISE
    6  COULD RECEIVE AN AWARD UNDER THIS SECTION; OR
    7    (4) MATERIALLY FAILED TO SUBMIT INFORMATION TO THE DEPARTMENT IN  SUCH
    8  FORM AS THE DEPARTMENT MAY REQUIRE; OR
    9    (5)(A)  KNOWINGLY  AND WILLFULLY MAKES FALSE, FICTITIOUS OR FRAUDULENT
   10  STATEMENTS OR REPRESENTATIONS TO THE DEPARTMENT WHEN SUBMITTING INFORMA-
   11  TION UNDER THIS SECTION, OR (B) USES ANY FALSE WRITING OR DOCUMENT KNOW-
   12  ING THE WRITING OR DOCUMENT CONTAINED FALSE,  FICTITIOUS  OR  FRAUDULENT
   13  STATEMENTS OR ENTRIES WHEN SUBMITTING INFORMATION UNDER THIS SECTION.
   14    (D)  (1)  ANY  WHISTLEBLOWER WHO MAKES A CLAIM FOR AN AWARD UNDER THIS
   15  SECTION MAY BE REPRESENTED BY COUNSEL.
   16    (2) ANY WHISTLEBLOWER WHO ANONYMOUSLY MAKES A CLAIM FOR AN AWARD UNDER
   17  THIS SECTION SHALL BE REPRESENTED BY COUNSEL IF THE WHISTLEBLOWER ANONY-
   18  MOUSLY SUBMITS THE INFORMATION UPON WHICH THE CLAIM IS BASED.  PRIOR  TO
   19  THE  PAYMENT OF AN AWARD, A WHISTLEBLOWER SHALL DISCLOSE THE IDENTITY OF
   20  THE WHISTLEBLOWER AND PROVIDE SUCH OTHER INFORMATION AS  THE  DEPARTMENT
   21  MAY REQUIRE, DIRECTLY OR THROUGH COUNSEL FOR THE WHISTLEBLOWER.
   22    (E)  NO CONTRACT WITH THE DEPARTMENT SHALL BE NECESSARY FOR ANY WHIST-
   23  LEBLOWER TO RECEIVE  AN  AWARD  UNDER  THIS  SECTION,  UNLESS  OTHERWISE
   24  REQUIRED BY THE DEPARTMENT BY RULE OR REGULATION.
   25    (F)  ANY  DETERMINATION MADE UNDER THIS SECTION SHALL BE SOLELY IN THE
   26  DISCRETION OF THE SUPERINTENDENT; PROVIDED THAT SUCH AWARD SHALL  BE  IN
   27  THE  RANGES  ESTABLISHED  BY  PARAGRAPH  ONE  OF  SUBSECTION (A) OF THIS
   28  SECTION, AND THE SUPERINTENDENT SHALL  TAKE  INTO  ACCOUNT  THE  FACTORS
   29  LISTED IN PARAGRAPH TWO OF SUBSECTION (B) OF THIS SECTION IN DETERMINING
   30  THE  AMOUNT  OF THE AWARD.   ANY SUCH DETERMINATION MAY BE CHALLENGED IN
   31  ACCORDANCE WITH ARTICLE SEVENTY-EIGHT OF  THE  CIVIL  PRACTICE  LAW  AND
   32  RULES,  PROVIDED  THAT  ANY  SUCH  CHALLENGE  SHALL  BE  BROUGHT  WITHIN
   33  FORTY-FIVE DAYS OF THE DATE OF ANY SUCH DETERMINATION UNDER CHALLENGE.
   34    S 411. RETALIATION PROTECTIONS. (A) NO CURRENT OR PROSPECTIVE  EMPLOY-
   35  ER,  CONTRACTOR  OR  AGENT  MAY  DISCHARGE, DEMOTE, SUSPEND, THREATEN OR
   36  HARASS, DIRECTLY OR INDIRECTLY, OR  IN  ANY  OTHER  MANNER  DISCRIMINATE
   37  AGAINST  ANY  PERSON IN HIRING OR IN THE TERMS AND CONDITIONS OF EMPLOY-
   38  MENT BECAUSE OF ANY LAWFUL ACT DONE BY SUCH PERSON:
   39    (1) IN PROVIDING INFORMATION TO THE DEPARTMENT IN ACCORDANCE WITH THIS
   40  SECTION;
   41    (2) IN INITIATING, TESTIFYING IN OR ASSISTING IN ANY INVESTIGATION  OR
   42  JUDICIAL  OR  ADMINISTRATIVE ACTION OF THE DEPARTMENT OR RELATED ACTION;
   43  OR
   44    (3) IN REPORTING ANY VIOLATION OF THE INSURANCE LAW, THE  BANKING  LAW
   45  OR  THIS CHAPTER TO ANOTHER GOVERNMENT ENTITY, TO A DIRECT SUPERVISOR OR
   46  TO A COMPLIANCE OFFICER OF SUCH EMPLOYER, CONTRACTOR OR AGENT.
   47    (B)(1) ANY PERSON WHO IS DISCHARGED, DEMOTED, SUSPENDED, THREATENED OR
   48  HARASSED OR IN ANY OTHER MANNER DISCRIMINATED AGAINST IN THE  TERMS  AND
   49  CONDITIONS OF EMPLOYMENT, OR OTHERWISE HARMED OR PENALIZED BY AN EMPLOY-
   50  ER,  OR  A  PROSPECTIVE  EMPLOYER,  BECAUSE  OF LAWFUL ACTS DONE BY SUCH
   51  PERSON OR ASSOCIATED OTHERS IN FURTHERANCE OF ANY  COVERED  JUDICIAL  OR
   52  ADMINISTRATIVE  ACTION OR RELATED ACTION OR OTHER EFFORTS TO STOP ONE OR
   53  MORE VIOLATIONS OF THE INSURANCE LAW, THE BANKING LAW OR  THIS  CHAPTER,
   54  INCLUDING BUT NOT LIMITED TO REPORTING SUCH VIOLATIONS TO ANY GOVERNMENT
   55  ENTITY,  TO  A  DIRECT  SUPERVISOR  OR  TO  A COMPLIANCE OFFICER OF SUCH
   56  EMPLOYER OR PROSPECTIVE EMPLOYER, SHALL BE ENTITLED TO ALL RELIEF NECES-
       A. 7304                             8
    1  SARY TO MAKE SUCH PERSON WHOLE. SUCH RELIEF SHALL  INCLUDE  BUT  NOT  BE
    2  LIMITED TO:
    3    (A) AN INJUNCTION TO RESTRAIN CONTINUED DISCRIMINATION;
    4    (B)  HIRING,  CONTRACTING OR REINSTATEMENT TO THE POSITION SUCH PERSON
    5  WOULD HAVE HAD BUT FOR THE DISCRIMINATION OR TO AN EQUIVALENT POSITION;
    6    (C) REINSTATEMENT OF FULL FRINGE BENEFITS AND SENIORITY RIGHTS;
    7    (D) PAYMENT OF TWO TIMES BACK PAY, PLUS INTEREST; AND
    8    (E) COMPENSATION FOR ANY SPECIAL DAMAGES SUSTAINED AS A RESULT OF  THE
    9  DISCRIMINATION,  INCLUDING  LITIGATION  COSTS  AND REASONABLE ATTORNEYS'
   10  FEES.
   11    (2) FOR PURPOSES OF THIS SECTION, A "LAWFUL" ACT  SHALL  INCLUDE,  BUT
   12  NOT  BE  LIMITED  TO,  OBTAINING  OR  TRANSMITTING  TO THE DEPARTMENT OR
   13  PRIVATE COUNSEL EMPLOYED TO INVESTIGATE OR  POTENTIALLY  FILE  WITH  THE
   14  DEPARTMENT  INFORMATION  RELATING  TO VIOLATIONS OF THE BANKING LAW, THE
   15  INSURANCE LAW, OR THIS CHAPTER, EVEN  THOUGH  SUCH  ACT  MAY  VIOLATE  A
   16  CONTRACT,  SEVERANCE  AGREEMENT,  EMPLOYMENT  TERM,  OR DUTY OWED TO THE
   17  EMPLOYER OR CONTRACTOR.
   18    (3) ANY PERSON SEEKING RELIEF PURSUANT TO THIS SUBSECTION MAY BRING AN
   19  ACTION IN THE APPROPRIATE SUPREME COURT FOR THE RELIEF PROVIDED IN  THIS
   20  SECTION. THE LIMITATIONS PERIOD OF ANY SUCH ACTION SHALL BE TEN YEARS.
   21    (4)  NOTHING  IN  THIS SECTION SHALL BE DEEMED TO DIMINISH THE RIGHTS,
   22  PRIVILEGES, OR REMEDIES OF ANY WHISTLEBLOWER UNDER ANY FEDERAL OR  STATE
   23  LAW, OR UNDER ANY COLLECTIVE BARGAINING AGREEMENT.
   24    (C)(1)  NEITHER  THE SUPERINTENDENT NOR ANY OFFICER OR EMPLOYEE OF THE
   25  DEPARTMENT,  SHALL  DISCLOSE  ANY  INFORMATION,  INCLUDING   INFORMATION
   26  PROVIDED BY A WHISTLEBLOWER TO THE DEPARTMENT, WHICH COULD REASONABLY BE
   27  EXPECTED  TO  REVEAL  THE  IDENTITY OF A WHISTLEBLOWER, UNLESS AND UNTIL
   28  SUCH INFORMATION IS REQUIRED TO BE DISCLOSED TO A  PARTY  IN  CONNECTION
   29  WITH  AN ACTION OR PROCEEDINGS BROUGHT BY THE SUPERINTENDENT, A LAWFULLY
   30  ISSUED SUBPOENA BY A FEDERAL OR  STATE  LAW  ENFORCEMENT  AUTHORITY,  OR
   31  OTHERWISE BY A COURT ORDER. SUCH INFORMATION SHALL BE DEEMED INFORMATION
   32  EXEMPTED FROM DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFICERS LAW.
   33    (2)  NOTWITHSTANDING  THE PRECEDING PARAGRAPH, WITHOUT THE LOSS OF ITS
   34  STATUS AS CONFIDENTIAL IN THE HANDS OF THE SUPERINTENDENT, ALL  INFORMA-
   35  TION  REFERRED  TO  IN  PARAGRAPH  ONE  OF  THIS  SUBSECTION MAY, IN THE
   36  DISCRETION OF THE SUPERINTENDENT, WHEN DETERMINED BY THE  SUPERINTENDENT
   37  TO  BE  NECESSARY  TO  ACCOMPLISH  THE PURPOSES OF THIS ARTICLE, BE MADE
   38  AVAILABLE TO THE APPROPRIATE REGULATORY AND LAW ENFORCEMENT  AUTHORITIES
   39  OF  THIS  STATE,  ANOTHER STATE, THE FEDERAL GOVERNMENT, FOREIGN GOVERN-
   40  MENTS, OR SELF-REGULATORY ORGANIZATIONS. EACH REGULATORY OR LAW ENFORCE-
   41  MENT AUTHORITY TO WHICH THE SUPERINTENDENT MAKES AVAILABLE THE  INFORMA-
   42  TION REFERRED TO IN THE PRECEDING PARAGRAPH SHALL AGREE TO MAINTAIN SUCH
   43  INFORMATION IN ACCORDANCE WITH SUCH ASSURANCES OF CONFIDENTIALITY AS THE
   44  SUPERINTENDENT MAY DETERMINE TO BE APPROPRIATE.
   45    (D)(1)  NOTHING  IN THIS SECTION SHALL LIMIT, OR SHALL BE CONSTRUED TO
   46  LIMIT THE SUPERINTENDENT'S AUTHORITY UNDER SECTIONS TWO HUNDRED TWO  AND
   47  THREE  HUNDRED  ONE  OF  THIS  CHAPTER, OR THAT OF OTHER LAW ENFORCEMENT
   48  AUTHORITIES.
   49    (2) NOTHING IN THIS SECTION SHALL LIMIT,  OR  SHALL  BE  CONSTRUED  TO
   50  LIMIT, THE RIGHTS AND REWARDS PROVIDED TO QUI TAM PLAINTIFFS UNDER ARTI-
   51  CLE THIRTEEN OF THE STATE FINANCE LAW.
   52    (E)  THE  RIGHTS  AND REMEDIES PROVIDED FOR IN THIS SECTION MAY NOT BE
   53  WAIVED BY ANY  AGREEMENT,  POLICY  FORM,  OR  CONDITION  OF  EMPLOYMENT,
   54  INCLUDING  BY  A  PRE-DISPUTE  ARBITRATION AGREEMENT, WHICH SHALL NOT BE
   55  VALID OR ENFORCEABLE IF IT REQUIRES ARBITRATION  OF  A  DISPUTE  ARISING
   56  UNDER  THIS  SECTION.  NO  SALARY  OR  WAGES EARNED BY THE WHISTLEBLOWER
       A. 7304                             9
    1  DURING HIS OR HER EMPLOYMENT, NOR ANY CONSIDERATION PROVIDED THE  WHIST-
    2  LEBLOWER  IN  CONNECTION WITH HIS OR HER SEVERANCE FROM SUCH EMPLOYMENT,
    3  RELATED TO ORIGINAL INFORMATION OR THE COVERED JUDICIAL  OR  ADMINISTRA-
    4  TIVE  ACTION  MAY  BE  RECOUPED  BY  ANY  RIGHT OF ACTION BROUGHT BY THE
    5  EMPLOYER.
    6    (F) THE SUPERINTENDENT IS HEREBY AUTHORIZED AND EMPOWERED  TO  PROMUL-
    7  GATE  SUCH RULES AND REGULATIONS AS THE SUPERINTENDENT SHALL DEEM APPRO-
    8  PRIATE FOR THE ENFORCEMENT OF THIS SECTION;  PROVIDED  THAT  THE  SUPER-
    9  INTENDENT  SHALL  CONSULT  WITH  THE ATTORNEY GENERAL PRIOR TO PROPOSING
   10  SUCH RULES OR REGULATIONS.
   11    S 4. Paragraph (b) of subdivision 11 of section 4 of the state finance
   12  law, as added by section 1 of part HH of chapter 55 of the laws of 2014,
   13  is amended to read as follows:
   14    (b) Paragraph (a) of this subdivision shall not apply to (1) moneys to
   15  be distributed to the federal government, to a local government,  or  to
   16  any  holder  of a bond or other debt instrument issued by the state, any
   17  public authority, or any public benefit corporation; (2)  moneys  TO  BE
   18  DISTRIBUTED  TO A WHISTLEBLOWER PURSUANT TO SECTION THREE HUNDRED FIFTY-
   19  THREE-A OF THE GENERAL BUSINESS LAW OR SECTION FOUR HUNDRED TEN  OF  THE
   20  FINANCIAL  SERVICES LAW, OR to be distributed solely or exclusively as a
   21  payment of damages or restitution to individuals or entities  that  were
   22  specifically  injured  or  harmed by the defendant's or settling party's
   23  conduct and that are identified in, or can be identified  by  the  terms
   24  of,  the relevant judgment, agreement to settle, assurance of discontin-
   25  uance, or relevant instrument resolving the claim or  cause  of  action;
   26  (3)  moneys  recovered or obtained by a state agency or a state official
   27  or employee acting in their official capacity where application of para-
   28  graph (a) of this subdivision is prohibited by  federal  law,  rule,  or
   29  regulation, or would result in the reduction or loss of federal funds or
   30  eligibility for federal benefits pursuant to federal law, rule, or regu-
   31  lation;  (4)  moneys  recovered  or obtained by or on behalf of a public
   32  authority, a public benefit corporation, the department of taxation  and
   33  finance,  the  workers'  compensation  board,  the New York state higher
   34  education services corporation, the tobacco settlement financing  corpo-
   35  ration,  a  state or local retirement system, an employee health benefit
   36  program administered by the New York state department of civil  service,
   37  the Title IV-D child support fund, the lottery prize fund, the abandoned
   38  property  fund,  or  an endowment of the state university of New York or
   39  any unit thereof or any state agency, provided that all  of  the  moneys
   40  received or recovered are immediately transferred to the relevant public
   41  authority,  public  benefit  corporation,  department, fund, program, or
   42  endowment; (5) moneys to be refunded to an individual or entity  as  (i)
   43  an  overpayment  of  a  tax, fine, penalty, fee, insurance premium, loan
   44  payment, charge or surcharge; (ii) a return of seized assets, or (iii) a
   45  payment made in error; and (6) moneys to  be  used  to  prevent,  abate,
   46  restore,  mitigate,  or  control  any  identifiable instance of prior or
   47  ongoing water, land or air pollution.
   48    S 5. Paragraph (b) of subdivision 16 of section 63  of  the  executive
   49  law, as added by section 4 of part HH of chapter 55 of the laws of 2014,
   50  is amended to read as follows:
   51    (b) Paragraph (a) of this subdivision shall not apply to any provision
   52  in  the resolution of a claim or cause of action providing (1) moneys to
   53  be distributed to the federal government, to a local government,  or  to
   54  any  holder  of a bond or other debt instrument issued by the state, any
   55  public authority, or any public benefit corporation; (2)  moneys  TO  BE
   56  DISTRIBUTED  TO A WHISTLEBLOWER PURSUANT TO SECTION THREE HUNDRED FIFTY-
       A. 7304                            10
    1  THREE-A OF THE GENERAL BUSINESS LAW, OR  to  be  distributed  solely  or
    2  exclusively  as  a  payment  of damages or restitution to individuals or
    3  entities that were specifically injured or harmed by the defendant's  or
    4  settling  party's  conduct and that are identified in, or can be identi-
    5  fied by the terms of, the relevant judgment, stipulation, decree, agree-
    6  ment to settle, assurance  of  discontinuance,  or  relevant  instrument
    7  resolving the claim or cause of action; (3) moneys recovered or obtained
    8  by  the  attorney  general  where  application  of paragraph (a) of this
    9  subdivision is prohibited by federal law, rule, or regulation, or  would
   10  result  in  the  reduction  or  loss of federal funds or eligibility for
   11  federal benefits pursuant to  federal  law,  rule,  or  regulation;  (4)
   12  moneys  recovered  or  obtained by or on behalf of a public authority, a
   13  public benefit corporation, the department of taxation and finance,  the
   14  workers'  compensation  board,  the  New  York  state  higher  education
   15  services corporation, the tobacco settlement  financing  corporation,  a
   16  state  or  local  retirement  system, an employee health benefit program
   17  administered by the New York state  department  of  civil  service,  the
   18  Title  IV-D  child  support  fund, the lottery prize fund, the abandoned
   19  property fund, or an endowment of the state university of  New  York  or
   20  any  unit  thereof  or any state agency, provided that all of the moneys
   21  received or recovered are immediately transferred to the relevant public
   22  authority, public benefit corporation,  department,  fund,  program,  or
   23  endowment;  (5)  moneys to be refunded to an individual or entity as (i)
   24  an overpayment of a tax, fine, penalty,  fee,  insurance  premium,  loan
   25  payment, charge or surcharge; (ii) a return of seized assets; or (iii) a
   26  payment  made  in  error;  and  (6) moneys to be used to prevent, abate,
   27  restore, mitigate or control any identifiable instance of prior or ongo-
   28  ing water, land or air pollution.
   29    S 6. This act shall take effect on the ninetieth day  after  it  shall
   30  have become a law.