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

                                  1625

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced  by  M. of A. PAULIN, ABINANTI, GALEF, OTIS, HOOPER -- Multi-
  Sponsored by -- M. of A.  KATZ,  SCHIMEL,  THIELE  --  read  once  and
  referred to the Committee on Local Governments

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03950-01-5

              

A. 1625                             2

  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
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.