BILL NUMBER: S8164

SPONSOR: MARCHIONE
 
TITLE OF BILL:  An act to amend part X of chapter 62 of the laws of
2003 amending the general business law and other laws generally relating
to implementing the state fiscal plan for the 2003-2004 state fiscal
year, in relation to extending certain provisions of the general munici-
pal law and the local finance law relating to electronic bidding

 
PURPOSE:

To extend the expiration date of the law relating to electronic bidding
(Part X of Chapter 62 of the Laws of 2003) which allows greater flexi-
bility to local governments in conducting public sales of bonds and
soliciting bids and offers for purchase contracts by authorizing utili-
zation of current technology to accept bids and offers submitted in an
electronic format.

 
SUMMARY OF PROVISIONS:

This bill would amend Paragraph (a) of Section 41 of Chapter 62 of the
              

Laws of 2003 amending the general business law and other laws generally
relating to implementing the state fiscal plan for the 2003-2004 state
fiscal year to delete the year of expiration of the act as "2018" and
extend the date to 2023.

 
JUSTIFICATION:

General Municipal Law § 103 and Local Finance Law § 58.00 presently
authorize local governments to accept bids and offers for purchase
contracts, and bids for public sales of bonds, in electronic format.
Consistent with the Electronic Signatures and Records Act (State Tech-
nology Law §§ 305(1) and 309), the current law does not allow for elec-
tronic bids or offers to the exclusion of accepting paper bids or
offers, except for technology contract under General Municipal Law §
103(1). It also contains safeguards, including requiring that any method
used to receive electronic bids or offers at a minimum, ensure the secu-
rity of the information transmitted, authenticate the identity of the
sender and ensure the confidentiality of the bids or offers prior to
opening. In addition, current law provides that the timely submission of
an electronic bid or offer is the responsibility of the bidder or offer-
er, and that the local government shall not incur any liability from
delays of or interruption in the receiving device designated by the
local government.

The current grant of authority has provided a useful option to local
governments, and in the case of bond sales, represents the industry
standard. These provisions warrant extension.

 
PRIOR LEGISLATIVE HISTORY:

This law was previously extended from 2008 to 2013 and then from 2013 to
2018 by Chapter 298 of the Laws of 2013.

 
FISCAL IMPACT:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, if this act
shall become a law after June 1, 2018, it shall be deemed to have been
in effect on such date.