S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5786
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 25, 2021
                                ___________
 
 Introduced by M. of A. HAWLEY -- 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 the 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
 58.11 to read as follows:
   § 58.11 ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT PROGRAM. A.  AS
 USED IN THIS SECTION:
   1.  "MUNICIPALITY"  MEANS  A  COUNTY  WITH  A  POPULATION GREATER THAN
 FIFTY-SEVEN THOUSAND, AND LESS THAN SIXTY-ONE THOUSAND, THAT HAS  ISSUED
 AT  LEAST THREE MILLION FIVE HUNDRED THOUSAND DOLLARS IN BONDS WITHIN AT
 LEAST ONE OF THE PRECEDING THREE YEARS.
   2. "NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE" MEANS
 A BIDDING SERVICE THAT IS APPROVED BY  THE  SUPERINTENDENT  PURSUANT  TO
 SUBDIVISION B OF THIS SECTION.
   3.  "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.
   4. "PROGRAM" MEANS THE ELECTRONIC OPEN AUCTION PUBLIC BOND SALE  PILOT
 PROGRAM ESTABLISHED PURSUANT TO THIS SECTION.
   5. "SUPERINTENDENT" MEANS THE SUPERINTENDENT OF FINANCIAL SERVICES.
   B. 1. THERE IS HEREBY ESTABLISHED AN ELECTRONIC OPEN AUCTION BOND SALE
 PILOT  PROGRAM AUTHORIZING MUNICIPALITIES TO CONDUCT OPEN AUCTION PUBLIC
 BOND SALES  THROUGH  ANY  NATIONALLY  RECOGNIZED  ELECTRONIC  SECURITIES
 BIDDING  SERVICE  APPROVED BY THE SUPERINTENDENT.  NATIONALLY RECOGNIZED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01979-01-1

 A. 5786                             2
 
 ELECTRONIC SECURITIES BIDDING SERVICES DESIRING TO OPERATE AN ELECTRONIC
 OPEN AUCTION SHALL APPLY TO THE SUPERINTENDENT FOR AUTHORIZATION  TO  DO
 SO  BY FILING AN APPLICATION WITH THE SUPERINTENDENT. THE SUPERINTENDENT
 SHALL  MAKE  AVAILABLE AN APPLICATION FORM THAT PROVIDES THE SUPERINTEN-
 DENT WITH INFORMATION REGARDING THE TECHNOLOGY  AND  SECURITY  PRACTICES
 MAINTAINED  BY  THE  NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING
 SERVICE, THE REQUIREMENTS TO BE ESTABLISHED FOR BIDDING BY BIDDERS,  THE
 METHODS  BY  WHICH  AUCTION  SALES  ARE CONDUCTED, THE EXPERIENCE OF THE
 NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE IN  CONDUCT-
 ING  ELECTRONIC OPEN AUCTIONS OF BONDS, AND OTHER INFORMATION THE SUPER-
 INTENDENT MAY DEEM RELEVANT.
   2. IF THE SUPERINTENDENT DETERMINES THAT THE REQUIREMENTS  AND  CONDI-
 TIONS  OF THE OPEN AUCTION ARE IN ACCORDANCE WITH THE PROVISIONS OF THIS
 CHAPTER AND THE BIDDING SERVICE PROVIDES A SECURE, OPEN AND  COMPETITIVE
 OPPORTUNITY  FOR  QUALIFIED BIDDERS TO SUBMIT PROPOSALS, THE APPLICATION
 SHALL BE DEEMED APPROVED.
   3. THE SUPERINTENDENT SHALL POST INFORMATION REGARDING THE  NATIONALLY
 RECOGNIZED   ELECTRONIC  SECURITIES  BIDDING  SERVICES  THAT  HAVE  BEEN
 APPROVED FOR USE  BY  MUNICIPALITIES  ON  THE  DEPARTMENT  OF  FINANCIAL
 SERVICES WEBSITE.
   C.  IF THE CHIEF FISCAL OFFICER OF THE MUNICIPALITY HAS AUTHORIZED THE
 RECEIPT OF BIDS IN AN ELECTRONIC OPEN AUCTION  FORMAT,  SUCH  ELECTRONIC
 BIDS  MAY  BE SUBMITTED IN THE FORM OF OPEN AUCTIONS CONDUCTED THROUGH A
 NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE WHICH ENTITY
 SHALL BE DEEMED TO  BE  THE  DESIGNATED  RECEIVING  DEVICE  PURSUANT  TO
 SECTION  58.00  OF THIS TITLE. 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 SUBDIVISION ONE OF SECTION  THREE
 HUNDRED  FIVE OF THE STATE TECHNOLOGY LAW, IF THE NOTICE OF SALE FOR THE
 OPEN AUCTION PUBLIC BOND CONTAINS A PROVISION THAT  BIDS  WILL  ONLY  BE
 ACCEPTED  ELECTRONICALLY  IN THE MANNER PROVIDED IN SUCH NOTICE OF SALE,
 THE MUNICIPALITY SHALL NOT BE REQUIRED TO ACCEPT NON-ELECTRONIC BIDS  IN
 ANY FORM.
   E.  THE  MUNICIPALITY'S  CHIEF  FISCAL  OFFICER  SHALL  ADMINISTER THE
 PROGRAM AND SHALL PUBLISH ITS POLICIES AND PROCEDURES FOR  THE  PROCURE-
 MENT  OF NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICES ON
 THE MUNICIPALITY'S INTERNET WEBSITE.  SUCH POLICIES AND PROCEDURES SHALL
 INCLUDE POLICIES TO PREVENT FRAUD. EXCEPT AS MODIFIED BY  THIS  SECTION,
 THE  MUNICIPAL  PROGRAM  SHALL  COMPLY  WITH  THIS CHAPTER AND ALL OTHER
 APPLICABLE LAWS, RULES AND REGULATIONS 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
 PROCESS WAS FAVORABLE AS COMPARED TO THE METHOD CURRENTLY  USED  BY  THE
 MUNICIPALITY.
   G.  THE MUNICIPALITY SHALL CONDUCT EVALUATIONS OF THE PROGRAM ANNUALLY
 WITH A SUMMARY EVALUATION AT THE END OF THE TWO YEAR PROGRAM. THE  MUNI-
 CIPALITY  SHALL SUBMIT THE EVALUATIONS TO THE SUPERINTENDENT, THE TEMPO-
 RARY 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 OPEN AUCTIONS  IS  COMPARABLE
 TO THE COST OF ISSUING PUBLIC BONDS THROUGH THE CURRENT SEALED BID PROC-
 ESS,  THE  FEES ASSOCIATED WITH NATIONALLY RECOGNIZED ELECTRONIC SECURI-
 TIES BIDDING SERVICES, WHETHER  THE  USE  OF  ELECTRONIC  OPEN  AUCTIONS

 A. 5786                             3
 
 RESULTED  IN  AN INCREASED NUMBER OF BIDDERS AND WHETHER THE PROCESS WAS
 FAVORABLE AS COMPARED TO THE METHOD CURRENTLY USED BY THE MUNICIPALITY.
   §  2.  This act shall take effect immediately and shall expire January
 1, 2024 when upon such date the provisions of this act shall  be  deemed
 repealed.