Bill Text: NY S02295 | 2021-2022 | General Assembly | Introduced

Bill Title: Establishes the electronic open auction public bond sale pilot program for counties, cities, towns, villages and school districts; such provisions shall remain in effect for 3 years.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2021-01-20 - REFERRED TO LOCAL GOVERNMENT [S02295 Detail]

Download: New_York-2021-S02295-Introduced.html

                STATE OF NEW YORK


                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 20, 2021

        Introduced  by  Sen.  JORDAN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government

        AN ACT to amend the local finance law, in relation to the  establishment
          of an electronic open auction public bond sale pilot program for muni-
          cipalities; and providing for the repeal of such provisions upon expi-
          ration 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. "Closed auction" means a bond sale procedure that does not allow  a
     6  bidder  to receive information with respect to the status or rank of its
     7  bids prior to the conclusion of the bid submission 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 status or rank of its bids prior
    16  to  the conclusion of the bid submission period and improve its bid as a
    17  result of the received information in accordance with the municipality's
    18  notice of such  bond  sale  circulated  in  accordance  with  applicable
    19  requirements of this chapter.
    20    5.  "Program" means the electronic open auction public bond sale pilot
    21  program established pursuant to this section.
    22    b. There is hereby established an electronic open auction public  bond
    23  sale  pilot  program  authorizing municipalities to conduct open auction

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 2295                             2

     1  public bond sales through any nationally recognized  electronic  securi-
     2  ties bidding service.
     3    c.  The  finance  commissioner 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
     7  sale shall provide for the manner in which the bid submission period may
     8  be 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 shall publish its policies and procedures for  the  procure-
    15  ment  of  electronic  securities  bidding services on the municipality's
    16  internet website and in a  nationally  recognized  publication  used  by
    17  professionals  in  the  bond market. Except as modified by this section,
    18  each municipal program shall comply with  this  chapter  and  all  other
    19  applicable laws related to the sale of bonds.
    20    f. The municipality's chief fiscal officer shall review the electronic
    21  open  auction bidding process to ensure that the bond sale was completed
    22  in a timely fashion and the sale was completed without errors.
    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 open
    27  auction pilot program.  The municipality or municipalities  will  submit
    28  the  evaluations  to  the state comptroller.  Such report shall include,
    29  but not be limited to, any demonstrated evidence  that  sale  of  public
    30  bonds  using electronic open auctions is comparable to the cost of issu-
    31  ing public bonds through the current closed auction  process,  that  the
    32  use  of electronic open auctions resulted in an increased number of bids
    33  and whether the results achieved for public bond sales conducted through
    34  electronic open auctions achieved savings compared to the  previous  bid
    35  process used by the municipality.  Annually, the state comptroller shall
    36  compile  all  the  information  received from municipalities pursuant to
    37  this paragraph, and, on or before  April  first,  submit  such  compiled
    38  information  to  the legislature, the temporary president of the senate,
    39  the speaker of the assembly, the minority leader of the senate  and  the
    40  minority leader of the assembly.
    41    §  2.  This act shall take effect immediately, and shall expire and be
    42  deemed repealed 3 years after such effective date.