Bill Text: NY S04804 | 2019-2020 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 (Republican 1-0)

Status: (Engrossed - Dead) 2020-01-08 - REFERRED TO LOCAL GOVERNMENT [S04804 Detail]

Download: New_York-2019-S04804-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         4804--A
                               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
        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. "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 the county of Genesee.
     9    3. "Nationally recognized electronic securities bidding service" means
    10  a bidding service that is recognized nationally by  municipal  users  of
    11  electronic  securities bidding services as providing an accurate, secure
    12  and reliable on-line bidding system.
    13    4. "Open auction" means a bond sale procedure that allows a bidder  to
    14  receive information with respect to the status or rank of its bids prior
    15  to  the  conclusion  of the bid submission period and improve its bid by
    16  submitting a bid at a lower interest rate, as a result of  the  received
    17  information  in  accordance  with the municipality's notice of such bond
    18  sale circulated in accordance with applicable requirements of this chap-
    19  ter.
    20    5. "Program" means the electronic open auction public bond sale  pilot
    21  program established pursuant to this section.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10912-04-9
        S. 4804--A                          2
     1    b.  There is hereby established an electronic open auction public bond
     2  sale pilot program solely for municipalities, authorizing municipalities
     3  to conduct open auction public bond sales through any nationally  recog-
     4  nized electronic securities bidding service.
     5    c.  The  chief  fiscal officer of a municipality may accept electronic
     6  bids submitted  in  the  form  of  open  auctions  conducted  through  a
     7  nationally  recognized electronic securities bidding service which shall
     8  be deemed to be the designated receiving device. Notice of any bond sale
     9  shall provide for the manner in which the bid submission period  may  be
    10  extended and the basis for determination of the winning bidder.
    11    d. Notwithstanding the provisions of section three hundred five of the
    12  state  technology law or any other law, the notice of sale may contain a
    13  provision that bids will only be accepted electronically in  the  manner
    14  provided in such notice of sale.
    15    e.  The  municipality's  chief  fiscal  officer  shall  administer the
    16  program and may utilize the program in accordance with the powers  here-
    17  tofore  or hereafter delegated to the chief fiscal officer by the legis-
    18  lative body of the municipality.  Except as modified  by  this  section,
    19  each  municipal  program  shall  comply  with this chapter and all other
    20  applicable laws related to the sale of bonds.
    21    f. The municipality's chief fiscal officer shall review the electronic
    22  open auction bidding process to ensure that the bond sale was  completed
    23  in a timely fashion; and the sale was completed without errors.
    24    g.  1. Each municipality, or two or more municipalities acting jointly
    25  or in cooperation with any entity representing municipalities, shall, on
    26  or  before  February  first  of each year, conduct annual evaluations of
    27  their pilot program or programs with a summary evaluation at the end  of
    28  the  two  year  open  auction pilot program. The municipality or munici-
    29  palities shall submit the evaluations to the state comptroller.
    30    2. Such report shall include, but not be limited to: (i) the  cost  of
    31  using an open auction platform; (ii) a bidding activity report detailing
    32  the  winning  bidder,  the  number  of  bidders, the number of bids, the
    33  number of bid improvements, and the number  of  auction  extensions  (if
    34  any);  and  (iii)  any  savings  achieved  through the open auction. Any
    35  savings shall be calculated by determining the cost differential between
    36  the initial bid submitted and the winning bid in an open auction. If the
    37  initial bid submitted is the ultimate  winning  bid,  the  open  auction
    38  savings would be zero dollars.
    39    3.  Annually,  the state comptroller shall compile all the information
    40  received from municipalities pursuant to  this  paragraph,  and,  on  or
    41  before April first of each year, submit such compiled information to the
    42  legislature,  the  temporary president of the senate, the speaker of the
    43  assembly, the minority leader of the senate and the minority  leader  of
    44  the assembly.
    45    §  2.  This act shall take effect immediately, and shall expire and be
    46  deemed repealed 2 years after such date.