A09608 Summary:

BILL NOA09608
 
SAME ASSAME AS S06372-B
 
SPONSORPaulin (MS)
 
COSPNSRGalef, Gunther, Lupardo, Rivera P, Roberts
 
MLTSPNSRBoyland, Thiele
 
Add S58.20, Loc Fin L
 
Establishes the electronic public bond sale pilot program for counties, cities, towns, villages and school districts; such provisions shall remain in effect for 3 years.
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A09608 Actions:

BILL NOA09608
 
03/20/2012referred to local governments
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A09608 Floor Votes:

There are no votes for this bill in this legislative session.
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A09608 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9608
 
                   IN ASSEMBLY
 
                                     March 20, 2012
                                       ___________
 
        Introduced  by  M.  of  A.  PAULIN,  GALEF, GUNTHER, LUPARDO, P. RIVERA,
          ROBERTS -- Multi-Sponsored by -- M. of A. BOYLAND, THIELE -- read once
          and referred to the Committee on Local Governments
 
        AN ACT to amend the local finance law, in relation to the  establishment
          of  an  electronic  public bond sale pilot program for municipalities;
          and providing for the repeal of such provisions upon expiration there-

          of
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  local finance law is amended by adding a new section
     2  58.20 to read as follows:
     3    § 58.20 Electronic public bond sale program; municipalities.  a.    As
     4  used in this section:
     5    1.  "Closed auction" means a bond sale procedure that does not allow a
     6  bidder to receive information with respect to the ranking  of  its  bids
     7  prior to the conclusion of the bidding period.
     8    2.  "Municipality"  means  a  county,  city,  town,  village or school
     9  district.
    10    3. "Nationally recognized electronic securities bidding service" means
    11  a bidding service that is recognized nationally by the predominant users

    12  of electronic securities bidding  services  as  providing  an  accurate,
    13  secure and reliable on-line bidding system.
    14    4.  "Open auction" means a bond sale procedure that allows a bidder to
    15  receive information with respect to the ranking of its bids prior to the
    16  conclusion of the bidding period in accordance with  the  municipality's
    17  notice  of  such  bond  sale  circulated  in  accordance with applicable
    18  requirements of this chapter.
    19    5. "Program" means the  electronic  public  bond  sale  pilot  program
    20  established pursuant to this section.
    21    b.  There  is  hereby established an electronic public bond sale pilot
    22  program authorizing municipalities to conduct public bond sales  through

    23  any nationally recognized electronic securities bidding service.
    24    c.  If  the  finance commissioner of a municipality has authorized the
    25  receipt of bids in  electronic  format,  such  electronic  bids  may  be
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14222-04-2

        A. 9608                             2
 
     1  submitted  in  the  form  of  open auctions or closed auctions conducted
     2  through a nationally recognized electronic  securities  bidding  service
     3  which  shall be deemed to be the designated receiving device.  Notice of
     4  any  bond  sale shall provide for the manner in which the bidding period

     5  may be extended and the basis for determination of the winning bidder.
     6    d. Notwithstanding the provisions of section three hundred five of the
     7  state technology law or any other law, if the notice of sale contains  a
     8  provision  that  bids will only be accepted electronically in the manner
     9  provided in such notice of sale, the municipality shall not be  required
    10  to accept non-electronic bids in any form.
    11    e.  The  municipality's  chief  fiscal  officer  shall  administer the
    12  program and shall publish its policies and procedures for  the  procure-
    13  ment  of  electronic  securities  bidding services on the municipality's
    14  internet website and in a  nationally  recognized  publication  used  by

    15  professionals  in  the  bond market. Except as modified by this section,
    16  each municipal program shall comply with  this  chapter  and  all  other
    17  applicable laws, rules and regulations related to the sale of bonds.
    18    f. The municipality's chief fiscal officer shall review the electronic
    19  bidding  process  to ensure that the bond sale was completed in a timely
    20  fashion; the sale was completed without errors; and the results achieved
    21  were favorable as compared to the manual method currently  used  by  the
    22  municipality.
    23    g.  Each municipality, or two or more municipalities acting jointly or
    24  in cooperation with any entity representing municipalities, shall, on or
    25  before February first, conduct annual evaluations of their pilot program

    26  or programs with a summary evaluation at the end of the three year pilot
    27  program.  The municipality or municipalities will submit the evaluations
    28  to the state comptroller.  Such report shall include, but not be limited
    29  to, any demonstrated evidence that sale of public bonds using electronic
    30  auctions is comparable to the cost of issuing public bonds  through  the
    31  current sealed bid process, that the use of electronic auctions resulted
    32  in  an  increased number of bidders and whether the results achieved for
    33  public bond sales conducted through electronic auctions achieved savings
    34  compared to the current bid process used by the municipality.  Annually,
    35  the state comptroller shall compile all the  information  received  from

    36  municipalities  pursuant  to  this  paragraph,  and,  on or before April
    37  first, submit such compiled information to the legislature,  the  tempo-
    38  rary  president of the senate, the speaker of the assembly, the minority
    39  leader of the senate and the minority leader of the assembly.
    40    § 2. This act shall take effect immediately, and shall expire  and  be
    41  deemed repealed 3 years after such effective date.
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