Bill Text: NY A07288 | 2019-2020 | General Assembly | Amended

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to local governments [A07288 Detail]

Download: New_York-2019-A07288-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         7288--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                     April 18, 2019
                                       ___________
        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on  Local  Governments  -- 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 Onondaga.
     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
    21  to conduct open auction public bond sales through any nationally  recog-
    22  nized electronic securities bidding service.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11143-04-9
        A. 7288--A                          2
     1    c.  The  chief  fiscal officer of a municipality may accept electronic
     2  bids submitted  in  the  form  of  open  auctions  conducted  through  a
     3  nationally  recognized electronic securities bidding service which shall
     4  be deemed to be the designated receiving device. Notice of any bond sale
     5  shall  provide  for the manner in which the bid submission period may be
     6  extended and the basis for determination of the winning bidder.
     7    d. Notwithstanding the provisions of section three hundred five of the
     8  state technology law or any other law, the notice of sale may contain  a
     9  provision  that  bids will only be accepted electronically in the manner
    10  provided in such notice of sale.
    11    e. The  municipality's  chief  fiscal  officer  shall  administer  the
    12  program  and may utilize the program in accordance with the powers here-
    13  tofore or hereafter delegated to the chief fiscal officer by the  legis-
    14  lative  body  of the municipality.   Except as modified by this section,
    15  each municipal program shall comply with  this  chapter  and  all  other
    16  applicable laws related to the sale of bonds.
    17    f. The municipality's chief fiscal officer shall review the electronic
    18  open  auction bidding process to ensure that the bond sale was completed
    19  in a timely fashion; and the sale was completed without errors.
    20    g.  1. The municipality shall, on or before  February  first  of  each
    21  year, conduct annual evaluations of its pilot program or programs with a
    22  summary  evaluation  at  the  end  of  the  two  year open auction pilot
    23  program. The municipality shall submit  the  evaluations  to  the  state
    24  comptroller.
    25    2.  Such  report shall include, but not be limited to: (i) the cost of
    26  using an open auction platform; (ii) a bidding activity report detailing
    27  the winning bidder, the number of  bidders,  the  number  of  bids,  the
    28  number  of  bid  improvements,  and the number of auction extensions (if
    29  any); and (iii) any savings  achieved  through  the  open  auction.  Any
    30  savings shall be calculated by determining the cost differential between
    31  the initial bid submitted and the winning bid in an open auction. If the
    32  initial  bid  submitted  is  the  ultimate winning bid, the open auction
    33  savings would be zero dollars.
    34    3. Annually, the state comptroller shall compile all  the  information
    35  received  from  municipalities  pursuant  to  this paragraph, and, on or
    36  before April first of each year, submit such compiled information to the
    37  legislature, the temporary president of the senate, the speaker  of  the
    38  assembly,  the  minority leader of the senate and the minority leader of
    39  the assembly.
    40    § 2. This act shall take effect immediately, and shall expire  and  be
    41  deemed repealed 2 years after such date.