S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8336
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 14, 2019
                                ___________
 
 Introduced  by  M. of A. THIELE, HUNTER -- read once and referred to the
   Committee on Local Governments
 
 AN ACT to amend the local finance law, in relation  to  establishing  an
   electronic  open auction bond sale pilot program and providing for the
   repeal of such provisions upon expiration thereof

   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
 58.10 to read as follows:
   § 58.10 ELECTRONIC OPEN AUCTION PUBLIC BOND SALE PILOT PROGRAM. A.  AS
 USED IN THIS SECTION:
   1. "MUNICIPALITY" MEANS A COUNTY WITH A  POPULATION  OF  FOUR  HUNDRED
 THOUSAND  OR  MORE,  OR  A CITY OR TOWN WITH A POPULATION OF ONE HUNDRED
 THOUSAND OR MORE THAT HAS ISSUED AT LEAST TWENTY-FIVE MILLION DOLLARS IN
 BONDS WITHIN AT LEAST ONE OF THE PRECEDING THREE YEARS.
   2. "NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE" MEANS
 A BIDDING SERVICE THAT IS APPROVED BY THE STATE COMPTROLLER PURSUANT  TO
 SUBDIVISION B OF THIS SECTION.
   3.  "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.
   4. "PROGRAM" MEANS THE ELECTRONIC OPEN AUCTION PUBLIC BOND SALE  PILOT
 PROGRAM ESTABLISHED PURSUANT TO THIS SECTION.
   B. 1. THERE IS HEREBY ESTABLISHED AN ELECTRONIC OPEN AUCTION BOND SALE
 PILOT  PROGRAM AUTHORIZING MUNICIPALITIES TO CONDUCT OPEN AUCTION PUBLIC
 BOND SALES  THROUGH  ANY  NATIONALLY  RECOGNIZED  ELECTRONIC  SECURITIES
 BIDDING  SERVICE  APPROVED  BY  THE  STATE  COMPTROLLER, AND CHOSEN AS A
 RESULT OF COMPETITIVE BIDDING. NATIONALLY RECOGNIZED ELECTRONIC  SECURI-
 TIES  BIDDING  SERVICES  DESIRING  TO OPERATE AN ELECTRONIC OPEN AUCTION
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13197-01-9

 A. 8336                             2
 
 SHALL APPLY TO THE STATE COMPTROLLER  FOR  AUTHORIZATION  TO  DO  SO  BY
 FILING  AN APPLICATION WITH THE STATE COMPTROLLER. THE STATE COMPTROLLER
 SHALL MAKE AVAILABLE AN APPLICATION FORM THAT PROVIDES THE  STATE  COMP-
 TROLLER WITH INFORMATION REGARDING THE TECHNOLOGY AND SECURITY PRACTICES
 MAINTAINED  BY  THE  NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING
 SERVICE, THE REQUIREMENTS TO BE ESTABLISHED FOR BIDDING BY BIDDERS,  THE
 METHODS  BY  WHICH  AUCTION  SALES  ARE CONDUCTED, THE EXPERIENCE OF THE
 NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE IN  CONDUCT-
 ING  ELECTRONIC  OPEN AUCTIONS OF BONDS, AND OTHER INFORMATION THE STATE
 COMPTROLLER MAY DEEM RELEVANT.
   2. IF THE STATE  COMPTROLLER  DETERMINES  THAT  THE  REQUIREMENTS  AND
 CONDITIONS  OF THE OPEN AUCTION ARE IN ACCORDANCE WITH THE PROVISIONS OF
 THIS CHAPTER AND THE BIDDING SERVICE PROVIDES A SECURE, OPEN AND COMPET-
 ITIVE OPPORTUNITY FOR QUALIFIED BIDDERS TO SUBMIT PROPOSALS, THE  APPLI-
 CATION SHALL BE DEEMED APPROVED.
   3.   THE  STATE  COMPTROLLER  SHALL  POST  INFORMATION  REGARDING  THE
 NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICES  THAT  HAVE
 BEEN  APPROVED  FOR  USE  BY  MUNICIPALITIES  ON  THE  STATE COMPTROLLER
 WEBSITE.
   C. IF THE FINANCE BOARD OF THE MUNICIPALITY HAS AUTHORIZED THE RECEIPT
 OF BIDS IN AN ELECTRONIC OPEN AUCTION FORMAT, SUCH ELECTRONIC  BIDS  MAY
 BE SUBMITTED IN THE FORM OF OPEN AUCTIONS CONDUCTED THROUGH A NATIONALLY
 RECOGNIZED  ELECTRONIC  SECURITIES BIDDING SERVICE WHICH ENTITY SHALL BE
 DEEMED TO BE THE DESIGNATED RECEIVING DEVICE PURSUANT TO  SECTION  58.00
 OF  THIS  TITLE. 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 SUBDIVISION ONE OF SECTION  THREE
 HUNDRED  FIVE OF THE STATE TECHNOLOGY LAW, IF THE NOTICE OF SALE FOR THE
 OPEN AUCTION PUBLIC BOND 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 NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICES ON
 THE MUNICIPALITY'S INTERNET  WEBSITE  AND  IN  A  NATIONALLY  RECOGNIZED
 PUBLICATION  USED BY PROFESSIONALS IN THE BOND MARKET. SUCH POLICIES AND
 PROCEDURES SHALL INCLUDE POLICIES TO PREVENT FRAUD AND PROCEDURES ENSUR-
 ING THAT ANY NATIONALLY RECOGNIZED ELECTRONIC SECURITIES BIDDING SERVICE
 IS CHOSEN AS A RESULT OF COMPETITIVE BIDDING. EXCEPT AS MODIFIED BY THIS
 SECTION, THE MUNICIPAL PROGRAM SHALL COMPLY WITH THIS  CHAPTER  AND  ALL
 OTHER  APPLICABLE  LAWS,  RULES  AND  REGULATIONS RELATED TO THE SALE OF
 BONDS AND COMPETITIVE BIDDING.
   F. THE MUNICIPALITY'S CHIEF FISCAL OFFICER SHALL REVIEW THE ELECTRONIC
 OPEN AUCTION 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 METHOD CURRENTLY USED
 BY THE MUNICIPALITY.
   G. THE MUNICIPALITY SHALL CONDUCT EVALUATIONS OF THE PROGRAM  ANNUALLY
 WITH  A SUMMARY EVALUATION AT THE END OF THE TWO YEAR PROGRAM. THE MUNI-
 CIPALITY SHALL SUBMIT THE EVALUATIONS  TO  THE  STATE  COMPTROLLER,  THE
 TEMPORARY  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 OPEN AUCTIONS IS COMPARABLE
 TO THE COST OF ISSUING PUBLIC BONDS THROUGH THE CURRENT SEALED BID PROC-

 A. 8336                             3
 
 ESS, THE FEES ASSOCIATED WITH NATIONALLY RECOGNIZED  ELECTRONIC  SECURI-
 TIES  BIDDING  SERVICES,  WHETHER  THE  USE  OF ELECTRONIC OPEN AUCTIONS
 RESULTED IN AN INCREASED NUMBER  OF  BIDDERS  AND  WHETHER  THE  RESULTS
 ACHIEVED  FOR  PUBLIC  BOND  SALES  CONDUCTED  THROUGH  ELECTRONIC  OPEN
 AUCTIONS ACHIEVED SAVINGS COMPARED TO THE CURRENT BID  PROCESS  USED  BY
 THE MUNICIPALITY.
   §  2. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law and  shall  expire  two
 years  after  such effective date, when upon such date the provisions of
 this act shall be deemed repealed.