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

                                  9608

                          I N  A S S E M B L Y

                             March 20, 2012
                               ___________

Introduced  by  M.  of  A.  PAULIN,  GALEF, GUNTHER, LUPARDO, P. RIVERA,
  ROBERTS -- Multi-Sponsored by -- M. of A. BOYLAND, THIELE -- 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  public bond sale pilot program for municipalities;
  and providing for the repeal of such provisions upon expiration there-
  of

  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
58.20 to read as follows:
  S 58.20 ELECTRONIC PUBLIC BOND SALE PROGRAM; MUNICIPALITIES.  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.  "MUNICIPALITY"  MEANS  A  COUNTY,  CITY,  TOWN,  VILLAGE OR SCHOOL
DISTRICT.
  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  MUNICIPALITY'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 AUTHORIZING MUNICIPALITIES TO CONDUCT PUBLIC BOND SALES  THROUGH
ANY NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE.
  C.  IF  THE  FINANCE COMMISSIONER OF A MUNICIPALITY HAS AUTHORIZED THE
RECEIPT OF BIDS IN  ELECTRONIC  FORMAT,  SUCH  ELECTRONIC  BIDS  MAY  BE

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

                                                           LBD14222-04-2

A. 9608                             2

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.  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 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 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  ELECTRONIC  SECURITIES  BIDDING SERVICES ON THE MUNICIPALITY'S
INTERNET WEBSITE AND IN A  NATIONALLY  RECOGNIZED  PUBLICATION  USED  BY
PROFESSIONALS  IN  THE  BOND MARKET. EXCEPT AS MODIFIED BY THIS SECTION,
EACH 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
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
MUNICIPALITY.
  G.  EACH MUNICIPALITY, OR TWO OR MORE MUNICIPALITIES ACTING JOINTLY OR
IN COOPERATION WITH ANY ENTITY REPRESENTING MUNICIPALITIES, SHALL, ON OR
BEFORE FEBRUARY FIRST, CONDUCT ANNUAL EVALUATIONS OF THEIR PILOT PROGRAM
OR PROGRAMS WITH A SUMMARY EVALUATION AT THE END OF THE THREE YEAR PILOT
PROGRAM.  THE MUNICIPALITY OR MUNICIPALITIES WILL SUBMIT THE EVALUATIONS
TO THE STATE COMPTROLLER.  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 MUNICIPALITY.  ANNUALLY,
THE STATE COMPTROLLER SHALL COMPILE ALL THE  INFORMATION  RECEIVED  FROM
MUNICIPALITIES  PURSUANT  TO  THIS  PARAGRAPH,  AND,  ON OR BEFORE APRIL
FIRST, SUBMIT SUCH COMPILED INFORMATION TO THE LEGISLATURE,  THE  TEMPO-
RARY  PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY
LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY.
  S 2. This act shall take effect immediately, and shall expire  and  be
deemed repealed 3 years after such effective date.