BILL NUMBER: S6587

SPONSOR: GAUGHRAN
 
TITLE OF BILL:

An act to amend chapter 643 of the laws of 2019 amending the local
finance law, relating to establishing an electronic open auction bond
sale pilot program, in relation to the effectiveness thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation would extend for two years the electronic open auction
bond sale pilot program allowing municipalities the option to sell bonds
in an open electronic auction format.

 
SUMMARY OF PROVISIONS:

Section one amends § 58.10 of the Local Finance Law to extend the elec-
tronic open auction bond sale pilot program two additional years,
authorizing municipalities to conduct open auction public bond sales
operated through nationally recognized electronic securities bidding
              

services, approved by DFS through an application process, for use by
municipalities.

Section 2 sets the effective date.

 
JUSTIFICATION:

Some have argued that electronic bidding increases the speed and effi-
ciency of bidding as well as reducing the administrative burden and
costs. Currently, New York authorizes electronic bidding through section
58 of the Local Finance Law, but only permits closed bidding. There are
now forty states, including California, New Jersey, Ohio and Texas that
have enacted legislation to allow municipalities to conduct public bond
sales through nationally recognized bidding firms, many of them by the
electronic bidding open auction format. In 2019, New York authorized the
establishment of an open auction bond sale pilot program. This legis-
lation would authorize such pilot program to be extended for an addi-
tional two years to ensure sufficient data will be available to evaluate
the efficacy of the open auction process.

 
PRIOR LEGISLATIVE HISTORY:

A.8336-A/S.5886-A - Chapter 643 of the Laws of 2019

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
This act shall take effect immediately.