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

                                  9537

                          I N  A S S E M B L Y

                             March 12, 2012
                               ___________

Introduced by M. of A. PAULIN, ABINANTI, GALEF -- read once and referred
  to the Committee on Local Governments

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
  thereof

  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:
  1. "CLOSED AUCTION" MEANS A BOND SALE PROCEDURE THAT DOES NOT ALLOW  A
BIDDER  TO  RECEIVE  INFORMATION WITH RESPECT TO THE RANKING OF 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.
                                                           LBD14217-03-2

A. 9537                             2

  [b.]  C. If the finance [board] COMMISSIONER of the county has author-
ized 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 ranking of its bids prior to the conclusion of the
bidding period. Such notice] 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.
  [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
county.
  [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
follows:
  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.