NY State Senate Bill 2009-S5393

Senate Bill S5393

Signed By Governor

2009-2010 Legislative Session

Establishes a pilot program in Westchester county authorizing the county to sell bonds through electronic securities bidding services; repealer

download bill text pdf

Archive: Last Bill Status Via A4617 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 11, 2009	signed chap.304
Jul 31, 2009	delivered to governor
Jul 15, 2009	returned to assembly passed senate home rule request 3rd reading cal.642 substituted for s5393
Jul 15, 2009	substituted by a4617
Jun 08, 2009	advanced to third reading
Jun 04, 2009	2nd report cal.
Jun 03, 2009	1st report cal.642
May 20, 2009	reported and committed to finance
Apr 27, 2009	referred to local government

Votes

- Jul 15, 2009 - Floor Vote
  A4617
  
  58
  
  Aye
  
  0
  
  Nay
  
  2
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 15, 2009
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      absent (2)
      
      Huntley
      
      Kruger
      
      excused (2)
      
      Johnson
      
      Squadron

2009-S5393 (ACTIVE) - Details

See Assembly Version of this Bill:: A4617
Law Section:: Local Finance Law
Laws Affected:: Add §58.10, Loc Fin L

2009-S5393 (ACTIVE) - Summary

Establishes a pilot program in Westchester county authorizing the county to sell bonds through electronic securities bidding services; defines open auction and closed auction; the county shall conduct evaluations of the pilot program annually and provide a summary at the end of three years.

2009-S5393 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5393

 TITLE OF BILL :
An act to amend the local finance law, in relation to the
establishment of an electronic public bond sale pilot program for
Westchester county; and providing for the repeal of such provisions
upon the expiration thereof


 PURPOSE OR GENERAL IDEA OF BILL :
To allow Westchester County to establish a pilot program to assess the
potential advantages of selling public bonds via nationally recognized
electronic securities bidding platforms.

THE CURRENT LAW: Currently Westchester County must conduct the sale of
public bonds via paper bids.

 SUMMARY OF SPECIFIC PROVISIONS :
Section I amends the local finance law by adding a new' section,
58.10. Paragraph a establishes an electronic public bond sale pilot
program for the county of Westchester. Paragraph b provides that
electronic bidding will be conducted through certain nationally
recognized electronic securities bidding services, and may be used for
both open and closed auctions, and provides the definition of an open
auction. Paragraph c states that, with certain exceptions, where the
notice of sale has specified that bids will only be accepted

electronically, the county shall not be obligated to receive paper
bids.  Paragraph d provides that the program shall be administered by
the County's chief fiscal officer, provides requirements for
publishing its program policy and procedure, and stipulates how the
program shall comply with existing laws, rules and regulations.
Paragraph e provides that the County's chief fiscal officer shall
review the program to ensure functionality and profitability, and
provides certain procedures and requirements for the program's
evaluation.

Section 2 provides the effective and expiration dates.

 JUSTIFICATION :
Electronic bidding processes have been recognized to increase the
speed and efficiency of bidding as well as reduce the administrative
burden and costs of the paper bidding process. This bill will thus
enhance the efficiency and profitability of Westchester County's sale
of public bonds by allowing them to conduct such sales electronically,
and will further enhance this process for the County by allowing them
to take advantage of the latest advances in internet bidding platforms
operated by nationally recognized electronic securities bidding firms.
Currently, ten states, including New Jersey, Ohio and Texas, have
enacted legislation that allow municipalities to conduct public bond
sales through these nationally recognized bidding firms.

 LEGISLATIVE HISTORY :
A11365-A, 2008 referred to rules. Same as S7966-A, passed senate.

 FISCAL IMPLICATIONS :
None to the State and potentially positive to local government.

 EFFECTIVE DATE :
Immediately.

2009-S5393 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5393

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 public bond sale pilot program for Westchester coun-
  ty; and providing for the repeal of such provisions upon  the  expira-
  tion thereof

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The local finance law is amended by adding  a  new  section
58.10 to read as follows:
  S  58.10 ELECTRONIC PUBLIC BOND SALE PILOT PROGRAM. A. THERE IS HEREBY
ESTABLISHED AN ELECTRONIC PUBLIC BOND SALE PILOT PROGRAM (REFERRED TO IN
THIS SECTION AS THE "PROGRAM") SOLELY  FOR  THE  COUNTY  OF  WESTCHESTER
(REFERRED  TO IN THIS SECTION AS THE "COUNTY") AUTHORIZING THE COUNTY TO
CONDUCT PUBLIC BOND SALES THROUGH ANY BIDDING SERVICES THAT  ARE  RECOG-
NIZED  NATIONALLY  BY  THE  PREDOMINANT  USERS  OF ELECTRONIC SECURITIES
BIDDING SERVICES AS PROVIDING AN ACCURATE, SECURE AND  RELIABLE  ON-LINE
BIDDING  SYSTEM (REFERRED TO IN THIS SECTION AS "A NATIONALLY RECOGNIZED
ELECTRONIC SECURITIES BIDDING SERVICE").
  B. IF THE FINANCE BOARD OF THE COUNTY HAS AUTHORIZED  THE  RECEIPT  OF
BIDS  IN ELECTRONIC FORMAT, SUCH ELECTRONIC BIDS MAY BE SUBMITTED IN THE
FORM OF OPEN AUCTIONS OR CLOSED AUCTIONS CONDUCTED THROUGH A  NATIONALLY
RECOGNIZED  ELECTRONIC  SECURITIES BIDDING SERVICE WHICH SHALL BE DEEMED
TO BE THE DESIGNATED RECEIVING DEVICE.  "OPEN AUCTION" SHALL MEAN A BOND
SALE PROCEDURE THAT ALLOWS A BIDDER TO RECEIVE INFORMATION WITH  RESPECT
TO THE RANKING OF ITS BIDS PRIOR TO THE CONCLUSION OF THE BIDDING PERIOD
IN  ACCORDANCE  WITH  THE PROVISIONS OF THE COUNTY'S NOTICE OF SUCH BOND
SALE CIRCULATED IN ACCORDANCE WITH APPLICABLE REQUIREMENTS OF THIS CHAP-
TER. "CLOSED AUCTION" SHALL MEAN A BOND SALE  PROCEDURE  THAT  DOES  NOT
ALLOW A BIDDER TO RECEIVE INFORMATION WITH RESPECT TO THE RANKING OF ITS
BIDS  PRIOR  TO  THE CONCLUSION OF THE BIDDING PERIOD. SUCH NOTICE SHALL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01418-01-9

S. 5393                             2

PROVIDE FOR THE MANNER IN WHICH THE BIDDING PERIOD MAY BE  EXTENDED  AND
THE BASIS FOR DETERMINATION OF THE WINNING BIDDER.
  C. NOTWITHSTANDING THE PROVISIONS OF SECTION THREE HUNDRED FIVE OF THE
STATE  TECHNOLOGY LAW OR ANY OTHER LAW, IF THE NOTICE OF SALE CONTAINS A
PROVISION THAT BIDS WILL ONLY BE ACCEPTED ELECTRONICALLY IN  THE  MANNER
PROVIDED  IN  SUCH  NOTICE  OF SALE, THE COUNTY SHALL NOT BE REQUIRED TO
ACCEPT NON-ELECTRONIC BIDS IN ANY FORM.
  D. THE COUNTY'S CHIEF FISCAL OFFICER SHALL ADMINISTER THE PROGRAM  AND
SHALL  PUBLISH  ITS POLICIES AND PROCEDURES FOR THE PROCUREMENT OF ELEC-
TRONIC SECURITIES BIDDING SERVICES ON THE COUNTY'S INTERNET WEBSITE  AND
IN A NATIONALLY RECOGNIZED PUBLICATION USED BY PROFESSIONALS IN THE BOND
MARKET.    EXCEPT  AS MODIFIED BY THIS SECTION, THE COUNTY PROGRAM SHALL
COMPLY WITH THIS CHAPTER AND ALL OTHER APPLICABLE LAWS, RULES AND  REGU-
LATIONS RELATED TO THE SALE OF BONDS.
  E.  THE  COUNTY'S  CHIEF  FISCAL  OFFICER  SHALL REVIEW THE ELECTRONIC
BIDDING PROCESS TO ENSURE THAT THE BOND SALE WAS COMPLETED IN  A  TIMELY
FASHION; THE SALE WAS COMPLETED WITHOUT ERRORS; AND THE RESULTS ACHIEVED
WERE  FAVORABLE  AS  COMPARED TO THE MANUAL METHOD CURRENTLY USED BY THE
COUNTY.
  F. THE COUNTY SHALL CONDUCT EVALUATIONS OF THE PILOT PROGRAM  ANNUALLY
WITH  A  SUMMARY  EVALUATION AT THE END OF THE THREE YEAR PILOT PROGRAM.
THE COUNTY WILL SUBMIT THE EVALUATIONS TO  THE  STATE  COMPTROLLER,  THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY.  SUCH
REPORT  SHALL  INCLUDE, BUT NOT BE LIMITED TO, ANY DEMONSTRATED EVIDENCE
THAT SALE OF PUBLIC BONDS USING ELECTRONIC AUCTIONS IS COMPARABLE TO THE
COST OF ISSUING PUBLIC BONDS THROUGH THE  CURRENT  SEALED  BID  PROCESS,
THAT  THE  USE OF ELECTRONIC AUCTIONS RESULTED IN AN INCREASED NUMBER OF
BIDDERS AND WHETHER THE RESULTS ACHIEVED FOR PUBLIC BOND SALES CONDUCTED
THROUGH ELECTRONIC AUCTIONS ACHIEVED SAVINGS COMPARED TO THE CURRENT BID
PROCESS USED BY THE COUNTY.
  S 2. This act shall take effect immediately and shall expire  3  years
after  such  effective  date, when upon such date the provisions of this
act shall be deemed repealed.

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