S T A T E O F N E W Y O R K
I N S E N A T E
February 1, 2012
Introduced by Sen. KLEIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
AN ACT to amend the local finance law, in relation to the electronic
public bond sale pilot program; and to amend chapter 304 of the laws
of 2009, amending the local finance law relating to the establishment
of an electronic public bond sale pilot program for Westchester coun-
ty, in relation to extending the expiration date of the provisions
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 58.10 of the local finance law, as added by chapter
304 of the laws of 2009, is amended to read as follows:
S 58.10 Electronic public bond sale pilot program. a. AS USED IN THIS
SECTION, THE FOLLOWING TERMS SHALL MEAN:
1. "CLOSED AUCTION" MEANS A BOND SALE PROCEDURE THAT DOES NOT ALLOW A
BIDDER TO RECEIVE INFORMATION WITH RESPECT TO THE RANKING OR ITS BIDS
PRIOR TO THE CONCLUSION OF THE BIDDING PERIOD.
2. "COUNTY" MEANS THE COUNTY OF WESTCHESTER.
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 RANKING OF ITS BIDS PRIOR TO THE
CONCLUSION OF THE BIDDING PERIOD IN ACCORDANCE WITH THE COUNTY'S NOTICE
OF SUCH BOND SALE CIRCULATED IN ACCORDANCE WITH APPLICABLE REQUIREMENTS
OF THIS CHAPTER.
5. "PROGRAM" MEANS THE ELECTRONIC PUBLIC BOND SALE PILOT PROGRAM
ESTABLISHED PURSUANT TO THIS SECTION.
B. There is hereby established an electronic public bond sale pilot
program [(referred to in this section as the "program")] solely for the
county [of Westchester (referred to in this section as the "county")]
authorizing the county to conduct public bond sales through any [bidding
services that are recognized nationally by the predominant users of
electronic securities bidding services as providing an accurate, secure
and reliable on-line bidding system (referred to in this section as "a]
nationally recognized electronic securities bidding [service")] SERVICE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 6371 2
[b.] C. If the finance board of the county has authorized the receipt
of bids in electronic format, such electronic bids may be submitted in
the form of open auctions or closed auctions conducted through a
nationally recognized electronic securities bidding service which shall
be deemed to be the designated receiving device. ["Open auction" shall
mean 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 provisions of the county's notice
of such bond sale circulated in accordance with applicable requirements
of this chapter. "Closed auction" shall mean a bond sale procedure that
does not allow a bidder to receive information with respect to the rank-
ing of its bids prior to the conclusion of the bidding period. Such] THE
notice OF SUCH BOND SALE shall provide for the manner in which the
bidding period may be extended and the basis for determination of the
[c.] D. Notwithstanding the provisions of section three hundred five
of the state technology law or any other law, if the notice of sale
contains a provision that bids will only be accepted electronically in
the manner provided in such notice of sale, the county shall not be
required to accept non-electronic bids in any form.
[d.] E. The county's chief fiscal officer shall administer the program
and shall publish its policies and procedures for the procurement of
electronic securities bidding services on the county's internet website
and in a nationally recognized publication used by professionals in the
bond market. Except as modified by this section, the county program
shall comply with this chapter and all other applicable laws, rules and
regulations related to the sale of bonds.
[e.] F. The county's chief fiscal officer shall review the electronic
bidding process to ensure that the bond sale was completed in a timely
fashion; the sale was completed without errors; and the results achieved
were favorable as compared to the manual method currently used by the
[f.] G. The county shall conduct evaluations of the pilot program
[annually] BIENNIALLY with a summary evaluation [at] ON OR BEFORE THE
FIRST OF APRIL PRECEDING the end of the [three year] pilot program. The
county will submit the evaluations to the state comptroller, 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 auctions is comparable to the
cost of issuing public bonds through the current sealed bid process,
that the use of electronic auctions resulted in an increased number of
bidders and whether the results achieved for public bond sales conducted
through electronic auctions achieved savings compared to the current bid
process used by the county.
S 2. Section 2 of chapter 304 of the laws of 2009, amending the local
finance law relating to the establishment of an electronic public bond
sale pilot program for Westchester county, is amended to read as
S 2. This act shall take effect immediately and shall expire [3 years
after such effective date] JANUARY 1, 2017, when upon such date the
provisions of this act shall be deemed repealed.
S 3. This act shall take effect immediately; provided that the amend-
ments to section 58.10 of the local finance law, made by section one of
this act, shall not affect the expiration and repeal of such section
pursuant to section 2 of chapter 304 of the laws of 2009, as amended,
and shall expire and be deemed repealed therewith.