NY State Senate Bill 2013-S6579A

Senate Bill S6579A

2013-2014 Legislative Session

Establishes the electronic open auction public bond sale pilot program for counties, cities, towns, villages and school districts

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

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
Jun 20, 2014	committed to rules
May 05, 2014	advanced to third reading
Apr 30, 2014	2nd report cal.
Apr 29, 2014	1st report cal.445
Mar 18, 2014	print number 6579a
Mar 18, 2014	amend and recommit to local government
Feb 07, 2014	referred to local government

Votes

- Apr 29, 2014 - Local Government Committee Vote
  S6579A
  
  5
  
  Aye
  
  0
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Apr 29, 2014
      
      aye (5)
      
      Boyle
      
      Marchione
      
      Martins
      
      Ritchie
      
      Valesky
      
      aye wr (4)
      
      Ball
      
      Gipson
      
      Latimer
      
      O'Brien

Bill Amendments

Original

A (Active)

2013-S6579 - Details

See Assembly Version of this Bill:: A9270
Current Committee:: Senate Rules
Law Section:: Local Finance Law
Laws Affected:: Add §58.20, Loc Fin L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4142, A1625
2017-2018: S3849, A2536
2019-2020: S7577, A6756
2021-2022: S2295, A4416
2023-2024: S4284, A5137
2025-2026: S47

2013-S6579 - Summary

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.

2013-S6579 - Sponsor Memo

                                BILL NUMBER:S6579

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

PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to
establish a pilot program for all municipalities to sell municipal
bonds via an open auction format instead of by a closed bid format.
Such open auction would be conducted via an electronic means instead
of being done in person. This three year pilot program would be used
to assess the financial and administrative advantages of selling bonds
via an open auction format by a nationally recognized electronic
securities bidding platform.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Adds a new Local Finance Law section, 58.20 to establish a
state-wide electronic open auction public bond sale pilot program for
those municipalities that wish to participate. This bill is very
similar to Chapter 304 of the Laws of 2009, (which established the
Westchester County open and closed auction pilot program) except that
it repositions the terms defined within this section of law to a new
definitions section. This has been done for clarity within the
statute. However, the remainder of the bill's provisions are

essentially the same as Chapter 304. Chapter 304 was extended in 2012
by Chapter 143 of the Laws of 2012.

The bill enacts a new Local Finance Law section 58.20 to establish a
statewide pilot program for open auctions. The provisions of this bill
are similar to Local Finance Law section 58.10 which currently applies
only for Westchester County. Its provisions are as follows:

-Paragraph (a) adds a definitions section.

-Paragraph (b) establishes the open auction electronic public bond
sale pilot program for municipalities, in addition to already existing
statutory authority for the county of Westchester to conduct such
sales.

-Paragraph (c) provides that open auction electronic bidding will be
conducted through certain nationally recognized electronic securities
bidding services.

-Paragraph (d) states that, with certain exceptions, where the notice
of sale has specified that bids will only be accepted electronically,
the municipality shall not be obligated to receive paper bids.

-Paragraph (e) and (f) provides that the program shall be administered
by the municipality's chief fiscal officer.

- Paragraph (g) provides that the municipality's chief fiscal officer
shall continue to review the program to ensure its functionality and
profitability, and provides certain procedures and requirements for
the program's evaluation.


Section 2: This provision sunsets this pilot program three years after
it has been enacted.

JUSTIFICATION:  Under current law, Westchester County is authorized to
operate a pilot program to sell municipal bonds via electronic means
(as opposed to paper bid submissions). Such electronic bond sales,
under the pilot program, could be conducted by either an open or
closed auction format. Before the enactment of Chapter 304 of the Laws
of 2009, Westchester County (as all other municipalities in New York)
had to conduct the sale of public bonds via paper bids (only a closed
bid format could be used). Since then, Chapter 494 of the Laws of 2013
has been enacted so that now all municipalities in New York State can
conduct their sales of bonds with only electronic submissions (and not
paper bids).

Under the currently enacted pilot program, Westchester County can
conduct an open auction to sell such municipal bonds via an electronic
securities bidding service. Westchester County has realized both
financial cost savings and a reduction in paperwork requirements to
conduct such bond bids due to the enactment of Chapter 304 of the Laws
of 2009. This bill expands this program that was used by Westchester
County for open auctions electronic bidding processes. This is because
it has been recognized to increase the speed and efficiency of bidding
for municipal bonds as well as reduce the administrative burden and
costs of conducting a the paper bond bidding process. Further, it has
enhanced 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.
This act was extended by Chapter 143 of the Laws of 2012.

According to Westchester County, not only has this new electronic bond
bidding pilot program reduced the overhead costs for sponsoring a
municipal bond offering, it has increased participation rates among
those interested in purchasing such bonds. This increased
participation rate among bidders helps to drive down the interest rate
charged for such bonds, which provides for further municipal cost
savings.

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 (many of them
by the electronic bidding open auction format).

To further the concept of allowing municipalities to conduct their
bond auctions via a means of: a) doing so by electronic bids instead
of paper bids, and b) by closed auctions via electronic means and c)
open auctions at all, Chapter 304 of the Laws of 2009 and Chapter 143
of the Laws of 2012 were enacted to authorize Westchester County to do
so via the pilot project.

To further this progression in municipal finance to help lower
municipal bond costs, Chapter 494 of the Laws of 2013 was enacted to
ensure that all municipalities can have the option to exclusively
accept bids electronically if they wish to do so. Hence under current
law, since all bond auctions are done in a closed manner (each bidder
submits one bid and the lowest bidder gets the contract to purchase
those bonds) but can be done electronically, the final step in this


process is to allow municipalities to accept electronic bids in a
manner that allows for an open auction.

This is a non-controversial bill that merely extends this very
successful program that is being operated by Westchester. County to
every municipality in the State. This bill sunsets in 3 years so that
the State Comptroller and Legislature can evaluate the operation of
this program.

LEGISLATIVE HISTORY:  Similar to the demonstration program established
by Chapter 304 of the Laws of 2009, extended by Chapter 143 of the
Laws of 2012. A portion of this pilot project that allows for the
electronic transmission of bids was extended to all municipalities by
Chapter 494 of the Laws of 2013.

FISCAL IMPLICATIONS:  None to the State, but a demonstrated positive
fiscal impact to Westchester County.

EFFECTIVE DATE:  Immediate, and shall sunset three years after it goes
into effect.

2013-S6579 - Bill Text download pdf

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

                                  6579

                            I N  S E N A T E

                            February 7, 2014
                               ___________

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 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:

  Section 1. The local finance law is amended by adding  a  new  section
58.20 to read as follows:
  S  58.20 ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT PROGRAM; MUNI-
CIPALITIES. A.  AS USED IN THIS SECTION:
  1. "CLOSED AUCTION" MEANS 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.
  2. "MUNICIPALITY" MEANS  A  COUNTY,  CITY,  TOWN,  VILLAGE  OR  SCHOOL
DISTRICT.
  3. "NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE" MEANS
A BIDDING SERVICE THAT IS RECOGNIZED NATIONALLY BY THE PREDOMINANT USERS
OF  ELECTRONIC  SECURITIES  BIDDING  SERVICES  AS PROVIDING AN ACCURATE,
SECURE AND RELIABLE ON-LINE BIDDING SYSTEM.
  4. "OPEN AUCTION" MEANS 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 MUNICIPALITY'S
NOTICE OF SUCH  BOND  SALE  CIRCULATED  IN  ACCORDANCE  WITH  APPLICABLE
REQUIREMENTS OF THIS CHAPTER.
  5.  "PROGRAM" MEANS THE ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT
PROGRAM ESTABLISHED PURSUANT TO THIS SECTION.
  B. THERE IS HEREBY ESTABLISHED AN ELECTRONIC OPEN AUCTION PUBLIC  BOND
SALE  PILOT  PROGRAM  AUTHORIZING MUNICIPALITIES TO CONDUCT OPEN AUCTION
PUBLIC BOND SALES THROUGH ANY NATIONALLY RECOGNIZED  ELECTRONIC  SECURI-
TIES BIDDING SERVICE.
  C.  THE  FINANCE  COMMISSIONER OF A MUNICIPALITY MAY ACCEPT ELECTRONIC
BIDS SUBMITTED  IN  THE  FORM  OF  OPEN  AUCTIONS  CONDUCTED  THROUGH  A

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

                                                           LBD13127-01-3

S. 6579                             2

NATIONALLY  RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE WHICH SHALL
BE DEEMED TO BE THE DESIGNATED RECEIVING DEVICE.   NOTICE  OF  ANY  BOND
SALE  SHALL  PROVIDE  FOR  THE MANNER IN WHICH THE BIDDING PERIOD MAY BE
EXTENDED AND THE BASIS FOR DETERMINATION OF THE WINNING BIDDER.
  D. NOTWITHSTANDING THE PROVISIONS OF SECTION THREE HUNDRED FIVE OF THE
STATE  TECHNOLOGY LAW OR ANY OTHER LAW, THE NOTICE OF SALE MAY CONTAIN A
PROVISION THAT BIDS WILL ONLY BE ACCEPTED ELECTRONICALLY IN  THE  MANNER
PROVIDED IN SUCH NOTICE OF SALE.
  E.  THE  MUNICIPALITY'S  CHIEF  FISCAL  OFFICER  SHALL  ADMINISTER THE
PROGRAM AND SHALL PUBLISH ITS POLICIES AND PROCEDURES FOR  THE  PROCURE-
MENT  OF  ELECTRONIC  SECURITIES  BIDDING SERVICES ON THE MUNICIPALITY'S
INTERNET WEBSITE AND IN A  NATIONALLY  RECOGNIZED  PUBLICATION  USED  BY
PROFESSIONALS  IN  THE  BOND MARKET. EXCEPT AS MODIFIED BY THIS SECTION,
EACH MUNICIPAL PROGRAM SHALL COMPLY WITH  THIS  CHAPTER  AND  ALL  OTHER
APPLICABLE LAWS RELATED TO THE SALE OF BONDS.
  F. THE MUNICIPALITY'S CHIEF FISCAL OFFICER SHALL REVIEW THE ELECTRONIC
OPEN  AUCTION 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 ANY CLOSED AUCTION METHOD
CURRENTLY BEING USED BY THE MUNICIPALITY.
  G.  EACH MUNICIPALITY, OR TWO OR MORE MUNICIPALITIES ACTING JOINTLY OR
IN COOPERATION WITH ANY ENTITY REPRESENTING MUNICIPALITIES, SHALL, ON OR
BEFORE FEBRUARY FIRST, CONDUCT ANNUAL EVALUATIONS OF THEIR PILOT PROGRAM
OR PROGRAMS WITH A SUMMARY EVALUATION AT THE END OF THE THREE YEAR  OPEN
AUCTION  PILOT PROGRAM.   THE MUNICIPALITY OR MUNICIPALITIES WILL SUBMIT
THE EVALUATIONS TO THE STATE COMPTROLLER.   SUCH REPORT  SHALL  INCLUDE,
BUT  NOT  BE  LIMITED  TO, ANY DEMONSTRATED EVIDENCE THAT SALE OF PUBLIC
BONDS USING ELECTRONIC OPEN AUCTIONS IS COMPARABLE TO THE COST OF  ISSU-
ING  PUBLIC  BONDS  THROUGH THE CURRENT CLOSED AUCTION PROCESS, THAT THE
USE OF ELECTRONIC OPEN AUCTIONS  RESULTED  IN  AN  INCREASED  NUMBER  OF
BIDDERS AND WHETHER THE RESULTS ACHIEVED FOR PUBLIC BOND SALES CONDUCTED
THROUGH  ELECTRONIC  OPEN  AUCTIONS  ACHIEVED  SAVINGS  COMPARED  TO THE
CURRENT BID PROCESS USED BY THE MUNICIPALITY.  ANNUALLY, THE STATE COMP-
TROLLER SHALL COMPILE ALL THE INFORMATION RECEIVED  FROM  MUNICIPALITIES
PURSUANT  TO  THIS PARAGRAPH, AND, ON OR BEFORE APRIL FIRST, SUBMIT SUCH
COMPILED INFORMATION TO THE LEGISLATURE, THE TEMPORARY PRESIDENT OF  THE
SENATE,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE
AND THE MINORITY LEADER OF THE ASSEMBLY.
  S 2. This act shall take effect immediately, and shall expire  and  be
deemed repealed 3 years after such effective date.

2013-S6579A (ACTIVE) - Details

See Assembly Version of this Bill:: A9270
Current Committee:: Senate Rules
Law Section:: Local Finance Law
Laws Affected:: Add §58.20, Loc Fin L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4142, A1625
2017-2018: S3849, A2536
2019-2020: S7577, A6756
2021-2022: S2295, A4416
2023-2024: S4284, A5137
2025-2026: S47

2013-S6579A (ACTIVE) - Summary

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.

2013-S6579A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S6579A

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

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to establish a pilot program for all
municipalities to sell municipal bonds via an open auction format
instead of by a closed bid format.  Such open auction would be
conducted via an electronic means instead of being done in person.
This three year pilot program would be used to assess the financial
and administrative advantages of selling bonds via an open auction
format by a nationally recognized electronic securities bidding
platform.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Adds a new Local Finance Law section, 58.20 to establish a
statewide electronic open auction public bond sale pilot program for
those municipalities that wish to participate. This bill is very
similar to Chapter 304 of the Laws of 2009, (which established the
Westchester County open and closed auction pilot program) except that
it repositions the terms defined within this section of law to a new

definitions section. This has been done for clarity within the
statute. However, the remainder of the bill's provisions are
essentially the same as Chapter 304. Chapter 304 was extended in 2012
by Chapter 143 of the Laws of 2012. This bill amendment to an "A"
print makes a few technical changes to the definition of "closed
auction" and "open auction".

The bill enacts a new Local Finance Law section 58.20 to establish a
statewide pilot program for open auctions. The provisions of this bill
are similar to Local Finance Law section 58.10 which currently applies
only for Westchester County. Its provisions are as follows:

-Paragraph (a) adds a definitions section.

-Paragraph (b) establishes the open auction electronic public bond
sale pilot program for municipalities, in addition to already existing
statutory authority for the county of Westchester to conduct such
sales.

-Paragraph (c) provides that open auction electronic bidding will be
conducted through certain nationally recognized electronic securities
bidding services.

-Paragraph (d) states that, with certain exceptions, where the notice
of sale has specified that bids will only be accepted electronically,
the municipality shall not be obligated to receive paper bids.

-Paragraph (e) and (f) provides that the program shall be administered
by the municipality's chief fiscal officer.


- Paragraph (g) provides that the municipality's chief fiscal officer
shall continue to review the program to ensure its functionality and
profitability, and provides certain procedures and requirements for
the program's evaluation.

Section 2: This provision sunsets this pilot program three years after
it has been enacted.

JUSTIFICATION:

Under current law, Westchester County is authorized to operate a pilot
program to sell municipal bonds via electronic means (as opposed to
paper bid submissions). Such electronic bond sales, under the pilot
program, could be conducted by either an open or closed auction
format. Before the enactment of Chapter 304 of the Laws of 2009,
Westchester County (as all other municipalities in New York) had to
conduct the sale of public bonds via paper bids (only a closed bid
format could be used). Since then, Chapter 494 of the Laws of 2013 has
been enacted so that now all municipalities in New York State can
conduct their sales of bonds with only electronic submissions (and not
paper bids).

Under the currently enacted pilot program, Westchester County can
conduct an open auction to sell such municipal bonds via an electronic
securities bidding service. Westchester County has realized both
financial cost savings and a reduction in paperwork requirements to
conduct such bond bids due to the enactment of Chapter 304 of the Laws
of 2009.

This bill expands this program that was used by Westchester County for
open auctions electronic bidding processes. This is because it has
been recognized to increase the speed and efficiency of bidding for
municipal bonds as well as reduce the administrative burden and costs
of conducting a the paper bond bidding process. Further, it has
enhanced 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.
This act was extended by Chapter 143 of the Laws of 2012.

According to Westchester County, not only has this new electronic bond
bidding pilot program reduced the overhead costs for sponsoring a
municipal bond offering, it has increased participation rates among
those interested in purchasing such bonds. This increased
participation rate among bidders helps to drive down the interest rate
charged for such bonds, which provides for further municipal cost
savings.

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 (many of them
by the electronic bidding open auction format).

To further the concept of allowing municipalities to conduct their
bond auctions via a means of: a) doing so by electronic bids instead
of paper bids, and b) by closed auctions via electronic means and c)
open auctions at all, Chapter 304 of the Laws of 2009 and Chapter 143


of the Laws of 2012 were enacted to authorize Westchester County to do
so via the pilot project.

To further this progression in municipal finance to help lower
municipal bond costs, Chapter 494 of the Laws of 2013 was enacted to
ensure that all municipalities can have the option to exclusively
accept bids electronically if they wish to do so. Hence under current
law, since all bond auctions are done in a closed manner (each bidder
submits one bid and the lowest bidder gets the contract to purchase
those bonds) but can be done electronically, the final step in this
process is to allow municipalities to accept electronic bids in a
manner that allows for an open auction.

This is a non-controversial bill that merely extends this very
successful program that is being operated by Westchester. County to
every municipality in the State. This bill sunsets in 3 years so that
the State Comptroller and Legislature can evaluate the operation of
this program.

LEGISLATIVE HISTORY:

Similar to the demonstration program established by Chapter 304 of the
Laws of 2009, extended by Chapter 143 of the Laws of 2012. A portion
of this pilot project that allows for the electronic transmission of
bids was extended to all municipalities by Chapter 494 of the Laws of
2013.

FISCAL IMPLICATIONS:

None to the State, but a demonstrated positive fiscal impact to
Westchester County.

EFFECTIVE DATE:

Immediate, and shall sunset three years after it goes into effect.

2013-S6579A (ACTIVE) - Bill Text download pdf

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

                                 6579--A

                            I N  S E N A T E

                            February 7, 2014
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 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:

  Section 1. The local finance law is amended by adding  a  new  section
58.20 to read as follows:
  S  58.20 ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT PROGRAM; MUNI-
CIPALITIES. A.  AS USED IN THIS SECTION:
  1. "CLOSED AUCTION" MEANS A BOND SALE PROCEDURE THAT DOES NOT ALLOW  A
BIDDER  TO RECEIVE INFORMATION WITH RESPECT TO THE STATUS OR RANK OF ITS
BIDS PRIOR TO THE CONCLUSION OF THE BID SUBMISSION PERIOD.
  2. "MUNICIPALITY" MEANS  A  COUNTY,  CITY,  TOWN,  VILLAGE  OR  SCHOOL
DISTRICT.
  3. "NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE" MEANS
A BIDDING SERVICE THAT IS RECOGNIZED NATIONALLY BY THE PREDOMINANT USERS
OF  ELECTRONIC  SECURITIES  BIDDING  SERVICES  AS PROVIDING AN ACCURATE,
SECURE AND RELIABLE ON-LINE BIDDING SYSTEM.
  4. "OPEN AUCTION" MEANS A BOND SALE PROCEDURE THAT ALLOWS A BIDDER  TO
RECEIVE INFORMATION WITH RESPECT TO THE STATUS OR RANK OF ITS BIDS PRIOR
TO  THE CONCLUSION OF THE BID SUBMISSION PERIOD AND IMPROVE ITS BID AS A
RESULT OF THE RECEIVED INFORMATION IN ACCORDANCE WITH THE MUNICIPALITY'S
NOTICE OF SUCH  BOND  SALE  CIRCULATED  IN  ACCORDANCE  WITH  APPLICABLE
REQUIREMENTS OF THIS CHAPTER.
  5.  "PROGRAM" MEANS THE ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT
PROGRAM ESTABLISHED PURSUANT TO THIS SECTION.
  B. THERE IS HEREBY ESTABLISHED AN ELECTRONIC OPEN AUCTION PUBLIC  BOND
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.
                                                           LBD13127-03-4

S. 6579--A                          2

PUBLIC BOND SALES THROUGH ANY NATIONALLY RECOGNIZED  ELECTRONIC  SECURI-
TIES BIDDING SERVICE.
  C.  THE  FINANCE  COMMISSIONER OF A MUNICIPALITY MAY ACCEPT ELECTRONIC
BIDS SUBMITTED  IN  THE  FORM  OF  OPEN  AUCTIONS  CONDUCTED  THROUGH  A
NATIONALLY  RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE WHICH SHALL
BE DEEMED TO BE THE DESIGNATED RECEIVING DEVICE.   NOTICE  OF  ANY  BOND
SALE SHALL PROVIDE FOR THE MANNER IN WHICH THE BID SUBMISSION PERIOD MAY
BE EXTENDED AND THE BASIS FOR DETERMINATION OF THE WINNING BIDDER.
  D. NOTWITHSTANDING THE PROVISIONS OF SECTION THREE HUNDRED FIVE OF THE
STATE  TECHNOLOGY LAW OR ANY OTHER LAW, THE NOTICE OF SALE MAY CONTAIN A
PROVISION THAT BIDS WILL ONLY BE ACCEPTED ELECTRONICALLY IN  THE  MANNER
PROVIDED IN SUCH NOTICE OF SALE.
  E.  THE  MUNICIPALITY'S  CHIEF  FISCAL  OFFICER  SHALL  ADMINISTER THE
PROGRAM AND SHALL PUBLISH ITS POLICIES AND PROCEDURES FOR  THE  PROCURE-
MENT  OF  ELECTRONIC  SECURITIES  BIDDING SERVICES ON THE MUNICIPALITY'S
INTERNET WEBSITE AND IN A  NATIONALLY  RECOGNIZED  PUBLICATION  USED  BY
PROFESSIONALS  IN  THE  BOND MARKET. EXCEPT AS MODIFIED BY THIS SECTION,
EACH MUNICIPAL PROGRAM SHALL COMPLY WITH  THIS  CHAPTER  AND  ALL  OTHER
APPLICABLE LAWS RELATED TO THE SALE OF BONDS.
  F. THE MUNICIPALITY'S CHIEF FISCAL OFFICER SHALL REVIEW THE ELECTRONIC
OPEN  AUCTION BIDDING PROCESS TO ENSURE THAT THE BOND SALE WAS COMPLETED
IN A TIMELY FASHION; AND THE SALE WAS COMPLETED WITHOUT ERRORS.
  G. EACH MUNICIPALITY, OR TWO OR MORE MUNICIPALITIES ACTING JOINTLY  OR
IN COOPERATION WITH ANY ENTITY REPRESENTING MUNICIPALITIES, SHALL, ON OR
BEFORE FEBRUARY FIRST, CONDUCT ANNUAL EVALUATIONS OF THEIR PILOT PROGRAM
OR  PROGRAMS WITH A SUMMARY EVALUATION AT THE END OF THE THREE YEAR OPEN
AUCTION PILOT PROGRAM.  THE MUNICIPALITY OR MUNICIPALITIES  WILL  SUBMIT
THE  EVALUATIONS  TO  THE STATE COMPTROLLER.  SUCH REPORT SHALL INCLUDE,
BUT NOT BE LIMITED TO, ANY DEMONSTRATED EVIDENCE  THAT  SALE  OF  PUBLIC
BONDS  USING ELECTRONIC OPEN AUCTIONS IS COMPARABLE TO THE COST OF ISSU-
ING PUBLIC BONDS THROUGH THE CURRENT CLOSED AUCTION  PROCESS,  THAT  THE
USE  OF ELECTRONIC OPEN AUCTIONS RESULTED IN AN INCREASED NUMBER OF BIDS
AND WHETHER THE RESULTS ACHIEVED FOR PUBLIC BOND SALES CONDUCTED THROUGH
ELECTRONIC OPEN AUCTIONS ACHIEVED SAVINGS COMPARED TO THE  PREVIOUS  BID
PROCESS USED BY THE MUNICIPALITY.  ANNUALLY, THE STATE COMPTROLLER SHALL
COMPILE  ALL  THE  INFORMATION  RECEIVED FROM MUNICIPALITIES PURSUANT TO
THIS PARAGRAPH, AND, ON OR BEFORE  APRIL  FIRST,  SUBMIT  SUCH  COMPILED
INFORMATION  TO  THE LEGISLATURE, THE TEMPORARY PRESIDENT OF THE SENATE,
THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE  AND  THE
MINORITY LEADER OF THE ASSEMBLY.
  S  2.  This act shall take effect immediately, and shall expire and be
deemed repealed 3 years after such effective date.

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