S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7288
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 18, 2019
                                ___________
 
 Introduced by M. of A. HUNTER -- 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  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:
 
   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 THE COUNTY OF ONONDAGA.
   3. "NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE" MEANS
 A  BIDDING  SERVICE  THAT IS RECOGNIZED NATIONALLY BY MUNICIPAL 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  BY
 SUBMITTING  A  BID AT A LOWER INTEREST RATE, 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 CHAP-
 TER.
   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 SOLELY FOR MUNICIPALITIES, AUTHORIZING MUNICIPALITIES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11143-01-9

 A. 7288                             2
 
 TO  CONDUCT OPEN AUCTION PUBLIC BOND SALES THROUGH ANY NATIONALLY RECOG-
 NIZED ELECTRONIC SECURITIES BIDDING SERVICE.
   C.  THE  CHIEF  FISCAL OFFICER 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 MAY UTILIZE THE PROGRAM IN ACCORDANCE WITH THE POWERS  HERE-
 TOFORE  OR HEREAFTER DELEGATED TO THE CHIEF FISCAL OFFICER BY THE LEGIS-
 LATIVE BODY OF THE MUNICIPALITY.  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.  1. EACH MUNICIPALITY, OR TWO OR MORE MUNICIPALITIES ACTING JOINTLY
 OR IN COOPERATION WITH ANY ENTITY REPRESENTING MUNICIPALITIES, SHALL, ON
 OR  BEFORE  FEBRUARY  FIRST  OF EACH YEAR, CONDUCT ANNUAL EVALUATIONS OF
 THEIR PILOT PROGRAM OR PROGRAMS WITH A SUMMARY EVALUATION AT THE END  OF
 THE  TWO  YEAR  OPEN  AUCTION PILOT PROGRAM. THE MUNICIPALITY OR MUNICI-
 PALITIES SHALL SUBMIT THE EVALUATIONS TO THE STATE COMPTROLLER.
   2. SUCH REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO: (I) THE  COST  OF
 USING AN OPEN AUCTION PLATFORM; (II) A BIDDING ACTIVITY REPORT DETAILING
 THE  WINNING  BIDDER,  THE  NUMBER  OF  BIDDERS, THE NUMBER OF BIDS, THE
 NUMBER OF BID IMPROVEMENTS, AND THE NUMBER  OF  AUCTION  EXTENSIONS  (IF
 ANY);  AND  (III)  ANY  SAVINGS  ACHIEVED  THROUGH THE OPEN AUCTION. ANY
 SAVINGS SHALL BE CALCULATED BY DETERMINING THE COST DIFFERENTIAL BETWEEN
 THE INITIAL BID SUBMITTED AND THE WINNING BID IN AN OPEN AUCTION. IF THE
 INITIAL BID SUBMITTED IS THE ULTIMATE  WINNING  BID,  THE  OPEN  AUCTION
 SAVINGS WOULD BE ZERO DOLLARS.
   3.  ANNUALLY,  THE STATE COMPTROLLER SHALL COMPILE ALL THE INFORMATION
 RECEIVED FROM MUNICIPALITIES PURSUANT TO  THIS  PARAGRAPH,  AND,  ON  OR
 BEFORE APRIL FIRST OF EACH YEAR, 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 2 years after such date.