Establishes an electronic open auction public bond sale pilot program for certain municipalities, to be administered by the municipality's chief fiscal officer and calls for an evaluation of the program annually.
STATE OF NEW YORK
________________________________________________________________________
4804--B
2019-2020 Regular Sessions
IN SENATE
March 26, 2019
___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and
when printed to be committed to the Committee on Local Government --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the local finance law, in relation to the establishment
of an electronic open auction public bond sale pilot program solely
for certain municipalities; and providing for the repeal of such
provisions upon expiration thereof
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 open auction public bond sale pilot program; muni-
4 cipalities. a. As used in this section:
5 1. "Municipality" means the county of Genesee.
6 2. "Nationally recognized electronic securities bidding service" means
7 a bidding service that is recognized nationally by municipal users of
8 electronic securities bidding services as providing an accurate, secure
9 and reliable on-line bidding system.
10 3. "Open auction" means a bond sale procedure that allows a bidder to
11 receive information with respect to the status or rank of its bids prior
12 to the conclusion of the bid submission period and improve its bid by
13 submitting a bid at a lower interest rate, as a result of the received
14 information in accordance with the municipality's notice of such bond
15 sale circulated in accordance with applicable requirements of this chap-
16 ter.
17 4. "Program" means the electronic open auction public bond sale pilot
18 program established pursuant to this section.
19 b. There is hereby established an electronic open auction public bond
20 sale pilot program solely for municipalities, authorizing municipalities
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10912-06-9
S. 4804--B 2
1 to conduct open auction public bond sales through any nationally recog-
2 nized electronic securities bidding service.
3 c. The chief fiscal officer of a municipality may accept electronic
4 bids submitted in the form of open auctions conducted through a
5 nationally recognized electronic securities bidding service which shall
6 be deemed to be the designated receiving device. Notice of any bond sale
7 shall provide for the manner in which the bid submission period may be
8 extended and the basis for determination of the winning bidder.
9 d. Notwithstanding the provisions of section three hundred five of the
10 state technology law or any other law, the notice of sale may contain a
11 provision that bids will only be accepted electronically in the manner
12 provided in such notice of sale.
13 e. The municipality's chief fiscal officer shall administer the
14 program and may utilize the program in accordance with the powers here-
15 tofore or hereafter delegated to the chief fiscal officer by the legis-
16 lative body of the municipality. Except as modified by this section,
17 each municipal program shall comply with this chapter and all other
18 applicable laws related to the sale of bonds.
19 f. The municipality's chief fiscal officer shall review the electronic
20 open auction bidding process to ensure that the bond sale was completed
21 in a timely fashion; and the sale was completed without errors.
22 g. 1. The municipality shall, on or before February first of each
23 year, conduct annual evaluations of its pilot program or programs with a
24 summary evaluation at the end of the two year open auction pilot
25 program. The municipality shall submit the evaluations to the state
26 comptroller.
27 2. Such report shall include, but not be limited to: (i) the cost of
28 using an open auction platform; (ii) a bidding activity report detailing
29 the winning bidder, the number of bidders, the number of bids, the
30 number of bid improvements, and the number of auction extensions (if
31 any); and (iii) any savings achieved through the open auction. Any
32 savings shall be calculated by determining the cost differential between
33 the initial bid submitted and the winning bid in an open auction. If the
34 initial bid submitted is the ultimate winning bid, the open auction
35 savings would be zero dollars.
36 3. Annually, the state comptroller shall compile all the information
37 received from municipalities pursuant to this paragraph, and, on or
38 before April first of each year, submit such compiled information to the
39 legislature, the temporary president of the senate, the speaker of the
40 assembly, the minority leader of the senate and the minority leader of
41 the assembly.
42 § 2. This act shall take effect immediately, and shall expire and be
43 deemed repealed 2 years after such date.
