Extends certain provisions of the general municipal law and the local finance law relating to electronic bidding

BILL NUMBER:S5559

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 municipal 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 flexibility to local governments in conducting public sales of bonds and soliciting bids and offers for purchase contracts by authorizing utilization 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 "2013" and extend the date to 2018.

Prior legislative history

New bill; law was previously extended from 2008 to 2013 by Chapter 134 of the Laws of 2008.

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 Technology Law §§ 305(1) and 309), the current law does not allow for electronic 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 security 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 offerer, 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.

The State Comptroller urges the passage of this proposed legislation.

Fiscal implications for state

This bill has no significant State fiscal impact.

Effective date

This act shall take effect immediately; provided, however, if this act shall become a law after June 1, 2013, it shall be deemed to have been in effect on such date.