Bill Text: NY S03852 | 2013-2014 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates 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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2014-06-23 - referred to judiciary [S03852 Detail]

Download: New_York-2013-S03852-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3852
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   February 22, 2013
                                      ___________
       Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
         when printed to be committed to the Committee 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:
    1    Section  1.  This  act  shall  be known and may be cited as "state and
    2  local government master settlement agreement proceeds safeguard act."
    3    S 2. Legislative intent. New York state,  New  York  city  and  county
    4  governments  throughout  the  state  are  the  recipients of hundreds of
    5  millions of dollars each year under the master settlement agreement. The
    6  total of all master settlement payments to these  governments  over  the
    7  years has so far exceeded eleven billion dollars. These funds are vital-
    8  ly  important and any disruption in these payments would put the recipi-
    9  ents at financial risk. The legislature hereby finds that it is  in  the
   10  public  interest to enact the "state and local government master settle-
   11  ment agreement proceeds safeguard act" in order to continue the flow  of
   12  these  funds  to  the  state  and local governments which depend on this
   13  revenue during the appeal of a judgment against master settlement agree-
   14  ment signatories, affiliates, successors and non-participating  manufac-
   15  turers.
   16    S  3.  The  civil  practice  law  and rules is amended by adding a new
   17  section 5519-a to read as follows:
   18    S 5519-A. STAY OF ENFORCEMENT FOR MASTER SETTLEMENT AGREEMENT  PARTIC-
   19  IPATING OR NON-PARTICIPATING MANUFACTURERS OR THEIR SUCCESSORS OR AFFIL-
   20  IATES.  (A)  IN  CIVIL  LITIGATION  UNDER  ANY  LEGAL THEORY INVOLVING A
   21  PARTICIPATING MANUFACTURER OR NON-PARTICIPATING MANUFACTURER,  AS  THOSE
   22  TERMS  ARE  DEFINED  IN THE MASTER SETTLEMENT AGREEMENT, OR ANY OF THEIR
   23  SUCCESSORS OR AFFILIATES, THE UNDERTAKING REQUIRED DURING  THE  PENDENCY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD08897-01-3
       S. 3852                             2
    1  OF ALL APPEALS OR DISCRETIONARY REVIEWS BY ANY APPELLATE COURTS IN ORDER
    2  TO STAY THE EXECUTION OF ANY JUDGMENT OR ORDER GRANTING LEGAL, EQUITABLE
    3  OR  OTHER RELIEF DURING THE ENTIRE COURSE OF APPELLATE REVIEW, INCLUDING
    4  REVIEW  BY THE UNITED STATES SUPREME COURT, SHALL BE SET PURSUANT TO THE
    5  APPLICABLE PROVISIONS OF LAW OR COURT RULES; PROVIDED, HOWEVER, THAT THE
    6  TOTAL UNDERTAKING REQUIRED OF  ALL  APPELLANTS  COLLECTIVELY  SHALL  NOT
    7  EXCEED TWO HUNDRED FIFTY MILLION DOLLARS, REGARDLESS OF THE VALUE OF THE
    8  JUDGMENT  APPEALED.  THIS LIMITATION SHALL APPLY ONLY IF APPELLANTS FILE
    9  AT LEAST THIRTY PERCENT OF THE TOTAL AMOUNT OF THE  UNDERTAKING  IN  THE
   10  FORM  OF  CASH,  A  LETTER OF CREDIT, A CERTIFICATE OF DEPOSIT, OR OTHER
   11  CASH EQUIVALENT WITH THE COURT. THE CASH OR  CASH  EQUIVALENT  SHALL  BE
   12  DEPOSITED BY THE CLERK OF THE COURT IN THE ACCOUNT OF THE COURT, AND ANY
   13  INTEREST EARNED SHALL BE UTILIZED AS PROVIDED BY LAW.
   14    (B) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION (A) OF THIS SECTION,
   15  UPON  PROOF  BY A PREPONDERANCE OF THE EVIDENCE, BY AN APPELLEE, THAT AN
   16  APPELLANT IS DISSIPATING ASSETS OUTSIDE THE COURSE OF ORDINARY  BUSINESS
   17  TO  AVOID  PAYMENT  OF  A JUDGMENT, A COURT MAY REQUIRE THE APPELLANT TO
   18  POST A BOND IN AN AMOUNT UP TO THE TOTAL AMOUNT OF THE JUDGMENT.
   19    (C) AS USED IN THIS SECTION, "MASTER SETTLEMENT AGREEMENT" SHALL  HAVE
   20  THE  SAME  MEANING  AS SET FORTH IN SUBDIVISION FIVE OF SECTION THIRTEEN
   21  HUNDRED NINETY-NINE-OO OF THE PUBLIC HEALTH LAW.
   22    S 4. This act shall take effect on the thirtieth day  after  it  shall
   23  have  become a law, and shall apply to any cause of action pending on or
   24  filed on or after such effective date.