Bill Text: NY A08336 | 2019-2020 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes an electronic open auction public bond sale pilot program to conduct open auction public bond sales through nationally recognized securities bidding services.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2019-12-12 - SIGNED CHAP.643 [A08336 Detail]
Download: New_York-2019-A08336-Introduced.html
Bill Title: Establishes an electronic open auction public bond sale pilot program to conduct open auction public bond sales through nationally recognized securities bidding services.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2019-12-12 - SIGNED CHAP.643 [A08336 Detail]
Download: New_York-2019-A08336-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8336 2019-2020 Regular Sessions IN ASSEMBLY June 14, 2019 ___________ Introduced by M. of A. THIELE, HUNTER -- read once and referred to the Committee on Local Governments AN ACT to amend the local finance law, in relation to establishing an electronic open auction bond sale pilot program 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 58.10 to read as follows: 3 § 58.10 Electronic open auction public bond sale pilot program. a. As 4 used in this section: 5 1. "Municipality" means a county with a population of four hundred 6 thousand or more, or a city or town with a population of one hundred 7 thousand or more that has issued at least twenty-five million dollars in 8 bonds within at least one of the preceding three years. 9 2. "Nationally recognized electronic securities bidding service" means 10 a bidding service that is approved by the state comptroller pursuant to 11 subdivision b of this section. 12 3. "Open auction" means a bond sale procedure that allows a bidder to 13 receive information with respect to the ranking of its bids prior to the 14 conclusion of the bidding period in accordance with the municipality's 15 notice of such bond sale circulated in accordance with applicable 16 requirements of this chapter. 17 4. "Program" means the electronic open auction public bond sale pilot 18 program established pursuant to this section. 19 b. 1. There is hereby established an electronic open auction bond sale 20 pilot program authorizing municipalities to conduct open auction public 21 bond sales through any nationally recognized electronic securities 22 bidding service approved by the state comptroller, and chosen as a 23 result of competitive bidding. Nationally recognized electronic securi- 24 ties bidding services desiring to operate an electronic open auction EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13197-01-9A. 8336 2 1 shall apply to the state comptroller for authorization to do so by 2 filing an application with the state comptroller. The state comptroller 3 shall make available an application form that provides the state comp- 4 troller with information regarding the technology and security practices 5 maintained by the nationally recognized electronic securities bidding 6 service, the requirements to be established for bidding by bidders, the 7 methods by which auction sales are conducted, the experience of the 8 nationally recognized electronic securities bidding service in conduct- 9 ing electronic open auctions of bonds, and other information the state 10 comptroller may deem relevant. 11 2. If the state comptroller determines that the requirements and 12 conditions of the open auction are in accordance with the provisions of 13 this chapter and the bidding service provides a secure, open and compet- 14 itive opportunity for qualified bidders to submit proposals, the appli- 15 cation shall be deemed approved. 16 3. The state comptroller shall post information regarding the 17 nationally recognized electronic securities bidding services that have 18 been approved for use by municipalities on the state comptroller 19 website. 20 c. If the finance board of the municipality has authorized the receipt 21 of bids in an electronic open auction format, such electronic bids may 22 be submitted in the form of open auctions conducted through a nationally 23 recognized electronic securities bidding service which entity shall be 24 deemed to be the designated receiving device pursuant to section 58.00 25 of this title. Notice of any bond sale shall provide for the manner in 26 which the bidding period may be extended and the basis for determination 27 of the winning bidder. 28 d. Notwithstanding the provisions of subdivision one of section three 29 hundred five of the state technology law, if the notice of sale for the 30 open auction public bond contains a provision that bids will only be 31 accepted electronically in the manner provided in such notice of sale, 32 the municipality shall not be required to accept non-electronic bids in 33 any form. 34 e. The municipality's chief fiscal officer shall administer the 35 program and shall publish its policies and procedures for the procure- 36 ment of nationally recognized electronic securities bidding services on 37 the municipality's internet website and in a nationally recognized 38 publication used by professionals in the bond market. Such policies and 39 procedures shall include policies to prevent fraud and procedures ensur- 40 ing that any nationally recognized electronic securities bidding service 41 is chosen as a result of competitive bidding. Except as modified by this 42 section, the municipal program shall comply with this chapter and all 43 other applicable laws, rules and regulations related to the sale of 44 bonds and competitive bidding. 45 f. The municipality's chief fiscal officer shall review the electronic 46 open auction bidding process to ensure that the bond sale was completed 47 in a timely fashion; the sale was completed without errors; and the 48 results achieved were favorable as compared to the method currently used 49 by the municipality. 50 g. The municipality shall conduct evaluations of the program annually 51 with a summary evaluation at the end of the two year program. The muni- 52 cipality shall submit the evaluations to the state comptroller, the 53 temporary president of the senate and the speaker of the assembly. Such 54 report shall include, but not be limited to, any demonstrated evidence 55 that sale of public bonds using electronic open auctions is comparable 56 to the cost of issuing public bonds through the current sealed bid proc-A. 8336 3 1 ess, the fees associated with nationally recognized electronic securi- 2 ties bidding services, whether the use of electronic open auctions 3 resulted in an increased number of bidders and whether the results 4 achieved for public bond sales conducted through electronic open 5 auctions achieved savings compared to the current bid process used by 6 the municipality. 7 § 2. This act shall take effect on the first of January next succeed- 8 ing the date on which it shall have become a law and shall expire two 9 years after such effective date, when upon such date the provisions of 10 this act shall be deemed repealed.
