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History
- Substituted by A9537
- Ordered to third reading cal.1153
- Committee discharged and committed to rules
- Print number 6371a
- Amend and recommit to local government
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extends, until January 1, 2017, the expiration of the electronic public bond sale pilot program for the county of Westchester
Signed by Governor · Sponsor Amy Paulin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6371A
Title of bill
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 county, in relation to extending the expiration date of the provisions thereof
Purpose or general idea of bill
The purpose of this bill is to extend the statutory authority to allow for the continuation of the ability of Westchester County to operate a pilot program to sell municipal bonds via electronic means (as opposed to paper bid submissions) and to assess the advantages of selling public bonds via nationally recognized electronic securities bidding platforms pursuant to that program.
Read the full memo (652 words)
Before the enactment of Chapter 304 of the Laws of 2009, Westchester County had to conduct the sale of public bonds via paper bids. Under the currently enacted pilot program, Westchester County can conduct an open auction to sell such municipal bonds via an electronic securities bidding service.
Summary of specific provisions
Section 1: Amends Local Finance Law section, 58.10 by repositioning terms defined within this section of law to a new definitions section of the provision of law. This has been done for clarity within the statute.
The bill further extends as it is written, currently existing provisions of Local Finance law section 58.10 as follows:
- Paragraph (b) extends the effective date for the recently established electronic public bond sale pilot program for the county of Westchester. - Paragraph (c) provides that electronic bidding will be conducted through certain nationally recognized electronic securities bidding services, and may be used for both open and closed auctions. - Paragraph (d) states that, with certain exceptions, where the notice of sale has specified that bids will only be accepted electronically, the county shall not be obligated to receive paper bids. - Paragraph (e) and (f) provides that the program shall be administered by the County's chief fiscal officer. Paragraph (g) provides that the County's chief fiscal officer shall continue to review the program to ensure its functionality and profitability, and provides certain procedures and requirements for the program's evaluation.
Section 2: This provision extends this pilot program's effective date from August 2012 to January 1, 2017.
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 the paper bond bidding process. This program, which was enacted by Chapter 304 of the Laws of 2009, has enhanced the efficiency and profitability of Westchester County's sale of public bonds by allowing them to conduct such sales electronically. Further, it has enhanced this process for the County by allowing them to take advantage of the latest advances in internet bidding platforms operated by nationally recognized electronic securities bidding firms.
According to Westchester County, not only has this new electronic bond bidding pilot program reduced the overhead costs for sponsoring a municipal bond offering, it has increased participation rates among those interested in purchasing such bonds. This increased participation rate among bidders helps to drive down the interest rate charged for such bonds, which provides for further municipal cost savings.
Currently, ten states, including New Jersey, Ohio and Texas, have enacted legislation that allow municipalities to conduct public bond sales through these nationally recognized bidding firms.
This is a non-controversial bill that merely extends this very successful program. This bill extends the program for an additional four years, and continues the obligation of the county to prepare reports for the Legislature to evaluate the operation of this program. This bill has been requested by Westchester County.
Legislative history
Extension of Chapter 304 of the Laws of 2009.
Fiscal implications
None to the State, but a demonstrated positive fiscal impact to Westchester County.
Effective date
Immediately, with provisions.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.