Bill Text: NY S05278 | 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: Bipartisan Bill

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S05278 Detail]

Download: New_York-2019-S05278-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         5278--A
                               2019-2020 Regular Sessions
                    IN SENATE
                                     April 23, 2019
                                       ___________
        Introduced  by  Sens.  MAY, ANTONACCI -- 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
        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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11143-05-9
        S. 5278--A                          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.