S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6756
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 19, 2019
                                ___________
 
 Introduced  by M. of A. WALCZYK -- read once and referred to the Commit-
   tee 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:
   §  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.
              

                                                            LBD10752-01-9

 A. 6756                             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.
   §  2.  This act shall take effect immediately, and shall expire and be
 deemed repealed 3 years after such effective date.