senate Bill S2369A

Signed by Governor

Relates to the notice of sale of bonds

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 16 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 16 / Apr / 2013
    • 1ST REPORT CAL.326
  • 17 / Apr / 2013
    • 2ND REPORT CAL.
  • 22 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 24 / Apr / 2013
    • PASSED SENATE
  • 24 / Apr / 2013
    • DELIVERED TO ASSEMBLY
  • 24 / Apr / 2013
    • REFERRED TO LOCAL GOVERNMENTS
  • 20 / May / 2013
    • RECALLED FROM ASSEMBLY
  • 20 / May / 2013
    • RETURNED TO SENATE
  • 20 / May / 2013
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 20 / May / 2013
    • AMENDED ON THIRD READING (T) 2369A
  • 03 / Jun / 2013
    • REPASSED SENATE
  • 03 / Jun / 2013
    • RETURNED TO ASSEMBLY
  • 03 / Jun / 2013
    • REFERRED TO LOCAL GOVERNMENTS
  • 17 / Jun / 2013
    • SUBSTITUTED FOR A493A
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.201
  • 17 / Jun / 2013
    • PASSED ASSEMBLY
  • 17 / Jun / 2013
    • RETURNED TO SENATE
  • 01 / Nov / 2013
    • DELIVERED TO GOVERNOR
  • 13 / Nov / 2013
    • SIGNED CHAP.494

Summary

Relates to the notice of sale of bonds.

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Bill Details

See Assembly Version of this Bill:
A493A
Versions:
S2369
S2369A
Legislative Cycle:
2013-2014
Law Section:
Local Finance Law
Laws Affected:
Amd ยง58.00, Loc Fin L
Versions Introduced in 2011-2012 Legislative Cycle:
A9608, S6372B, A9608

Sponsor Memo

BILL NUMBER:S2369A

TITLE OF BILL: An act to amend the local finance law, in relation to
the notice of sale of bonds

PURPOSE OR GENERAL IDEA OF BILL: To authorize municipalities, school
districts and district corporations to require electronic submission of
sealed bids for the bonds issued.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends paragraph a of section
58 of the local finance law, to provide that a summary of the notice of
the public sale of bonds shall contain the designation of the receiving
device if the finance board of the issuing municipality, school district
or district corporation has required the receipt of bids in electronic
format.

Section 2 amends subdivision 1 of paragraph b of section 58 of the local
finance law to extend the provisions of the subdivision to those cases
in which the issuing municipality, school district or district corpo-
ration has required the receipt of bids in electronic format.

Section 3 amends paragraphs d, e and f of section 58 of the local
finance law. Paragraphs d and e are amended to reflect gender equality
in the provisions of the law. Paragraph f is amended to provide that
submission in electronic format may be required as the sole method for
the submission of sealed bids.

Section 4 provides the effective date.

JUSTIFICATION: Electronic bidding processes have been recognized to
increase the speed and efficiency of bidding for municipal bonds as well
as reduce the administrative burden and costs of conducting a paper bond
bidding process. A pilot program, which was enacted by Chapter 304 of
the Laws of 2009, has enhanced the efficiency and profitability of West-
chester County's sale of public bonds by allowing municipalities to
conduct such sale electronically.

According to Westchester County, the electronic bond bidding pilot
program has not only reduced the overhead costs for sponsoring a munici-
pal bond offering, but it has also increased participation rates among
those interested in purchasing public bonds. This increased partic-
ipation rate among bidders helps to drive down the interest rate charged
for such bonds, providing further cost savings.

This bill allows municipalities to require the submission of sealed bids
in electronic format. This would extend the positive results of a very
successful program that is being operated by Westchester County to every
municipality in the State.

PRIOR LEGISLATIVE HISTORY: Similar to A.9608A of 2012, referred to local
governments. Same as S.6372-B (Klein), referred to local government.

Similar to the demonstration program established by Chapter 304 of the
Laws of 2009.

FISCAL IMPLICATIONS: None to the State; potential cost savings to muni-
cipalities.

EFFECTIVE DATE: This act shall take effect January 1, 2014.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2369--A
    Cal. No. 326

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 16, 2013
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  reported  favorably  from  said committee, ordered to first and second
  report, ordered to a third reading, passed by Senate and delivered  to
  the  Assembly, recalled, vote reconsidered, restored to third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN ACT to amend the local finance law, in relation to the notice of sale
  of bonds

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph a of section 58.00 of the local finance  law,  as
amended  by  section  6  of part X of chapter 62 of the laws of 2003, is
amended to read as follows:
  a. There shall be published, at least once, not  less  than  five  nor
more  than  thirty  days  before  the  date fixed for the public sale of
bonds, a notice of such public sale or a summary thereof  in  accordance
with  one  of  the  following  methods:  (1) the notice of sale shall be
published in any financial newspaper published  and  circulated  in  the
city  of  New  York  which  the  state comptroller, in the rule or order
referred to in paragraph d of  section  57.00  of  this  chapter,  shall
designate  for  such publication; (2) the notice of sale shall be circu-
larized in such manner as the state comptroller shall prescribe in  such
rule  or  order  and  shall  be published in any newspaper or newspapers
which the finance board of the municipality, school district or district
corporation may designate for such purpose; or (3) (i) a summary of  the
notice  of  sale  shall  be  published  in  both the financial newspaper
published and circulated in the city of New York which the  state  comp-
troller  has  designated in the rule or order referred to in paragraph d
of section 57.00 of this chapter, and (ii) any newspaper  or  newspapers
which the finance board of the municipality, school district or district

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05062-03-3

S. 2369--A                          2

corporation  may designate for such purpose.  A summary of the notice of
sale shall at a minimum contain the name  of  the  issuer,  the  amount,
date,  and  maturities of the bonds, the frequency of interest payments,
the  place where bids will be received, the designation of the receiving
device if the finance board of the issuing municipality, school district
or district corporation has authorized OR REQUIRED the receipt  of  bids
in  an electronic format, the time and date for the opening of the bids,
including circumstances under which such time and date may be changed in
accordance with law, the method of award and a  procedure  for  promptly
obtaining  the  complete  notice  of  sale  and any preliminary official
statement prepared in connection with the sale, and such other  informa-
tion as the state comptroller may prescribe by rule or order.
  S  2.  Subdivision  1  of  paragraph  b  of section 58.00 of the local
finance law, as amended by section 7 of part X of chapter 62 of the laws
of 2003, is amended to read as follows:
  1. The place where bids will  be  received  and  considered,  and  the
designation  of the receiving device if the finance board of the issuing
municipality, school district or district corporation has authorized  OR
REQUIRED the receipt of bids in an electronic format.
  S 3. Paragraphs d, e, and f of section 58.00 of the local finance law,
paragraph  d  as amended by chapter 581 of the laws of 1949, paragraph e
as added by chapter 663 of the laws of 1949, and paragraph f as  amended
by chapter 741 of the laws of 2005, are amended to read as follows:
  d. It may be a condition of the sale of bonds that every bidder may be
required  to accept a portion of the whole amount of the bonds for which
he OR SHE has bid, at the same rate for such portion as may be specified
in his OR HER bid for the full amount. If such condition is imposed, the
notice of sale shall so state and such notice also shall state that,  in
addition,  any bidder may offer to purchase all or none of such bonds on
different terms.
  e. The notice of sale may provide that the bidder to  whom  the  bonds
are  to be awarded, at his OR HER option, may refuse to accept the bonds
if prior to the delivery of the bonds any income tax law of  the  United
States of America shall provide that the interest on such bonds is taxa-
ble,  or  shall  be  taxable  at  a  future date, for federal income tax
purposes.
  f. For purposes of this section and section  59.00  of  this  chapter,
"sealed  bids"  shall  include  bids  submitted in an electronic format,
provided that the finance board  of  the  issuing  municipality,  school
district  or  district  corporation,  by  resolution, has authorized the
receipt of bids in such format.  Submission  in  electronic  format  may
[not,  however,]  be  required  as the sole method for the submission of
bids. Bids submitted in an electronic format  shall  be  transmitted  by
bidders  to the receiving device designated by the issuing municipality,
school district or district corporation.  Any  method  used  to  receive
electronic  bids shall comply with article three of the state technology
law and any rules and regulations promulgated and  guidelines  developed
thereunder  and,  at  a minimum, must: (a) document the time and date of
receipt of each bid received electronically; (b) authenticate the  iden-
tity of the sender; (c) ensure the security of the information transmit-
ted;  and  (d)  ensure the confidentiality of the bid until the time and
date established for the opening of bids. The timely  submission  of  an
electronic  bid  in  compliance  with  instructions  provided  for  such
submission in the notice of sale and any  supplemental  notice  of  sale
shall be the responsibility solely of each bidder or prospective bidder.
No  issuing  municipality, school district or district corporation shall

S. 2369--A                          3

incur any liability from delays of or  interruptions  in  the  receiving
device designated for the submission and receipt of electronic bids.
  S  4.  This  act shall take effect January 1, 2014; provided, however,
that the amendments to paragraph a, subdivision 1 of  paragraph  b,  and
paragraph  f  of section 58.00 of the local finance law made by sections
one, two, and three of this act shall not affect the expiration of  such
paragraphs or subdivision and shall expire and be deemed repealed there-
with.

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