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History
- Print number 6372b
- Amend and recommit to local government
- Print number 6372a
- 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.
Establishes the electronic bond sale pilot program for counties, cities, towns, villages and school districts
In Assembly Committee · Local Governments · Sponsor Amy Paulin
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S6372B
Title of bill
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 thereof
Purpose or general idea of bill
The purpose of this bill is to establish a pilot program for all municipalities to sell municipal bonds via electronic means (as opposed to paper bid Submissions)and to assess the financial and administrative advantages of selling bonds via a nationally recognized electronic securities bidding platforms pursuant to this program.
Read the full memo (754 words)
Under current law, Westchester County is authorized to operate a pilot program to sell municipal bonds via electronic means (as opposed to paper bid submissions). Before the enactment of Chapter 304 of the Laws of 2009, Westchester County (as all other municipalities) 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. Westchester County has realized both financial cost savings and a reduction in paperwork requirements to conduct such bond bids due to the enactment of Chapter 304 of the Laws of 2009.
Summary of specific provisions
Section 1: Adds a new Local Finance Law section, 58.20 to establish a state-wide electronic public bond sale pilot program for those municipalities that wish to participate. This bill is very similar to Chapter 304 of the Laws of 2009, except that it repositions the terms defined within this section of law to a new definitions section. This has been done for clarity within the statute. However, the remainder of the bill's provisions are essentially the same as Chapter 304.
The bill enacts a new Local Finance Law section 58.20 to establish a statewide pilot program. The provisions of this bill are similar to Local Finance Law section 58.10 which currently applies only for Westchester County. Its provisions are as follows:
- Paragraph (a) adds a definitions section. - Paragraph (b) establishes the electronic public bond sale pilot program for municipalities, in addition to already existing statutory authority for the county of Westchester to conduct such sales. - 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 municipality shall not be obligated to receive paper bids. - Paragraph (e) and (f) provides that the program shall be administered by the municipality's chief fiscal officer. - Paragraph (g) provides that the municipality'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 sunsets this pilot program three years after it has been enacted.
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. A similar 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 that is being operated by Westchester County to every municipality in the State. This bill sunsets in 3 years so that the State Comptroller and Legislature can evaluate the operation of this program.
Legislative history
Similar to the demonstration program established by Chapter 304 of the Laws of 2009.
Fiscal implications
None to the State, but a demonstrated positive fiscal impact to Westchester County.
Effective date
Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.