What's happening
This bill establishes a two-year pilot program allowing Onondaga County to conduct electronic open auction public bond sales.
Why it matters
Introduces competitive transparency to bond sales. By requiring real-time feedback on bid status, this program lets bidders adjust their offers during the auction, potentially driving down interest rates and reducing borrowing costs for Onondaga County.
Promotes modernization and efficiency. Allowing the use of nationally recognized electronic bidding platforms replaces traditional, paper-based or closed electronic processes, which can streamline operations, shorten timelines, and attract a wider pool of bidders.
Mandates accountability and data-driven evaluation. The bill requires detailed annual reporting on costs, bid activity, and savings generated, which must be submitted to the state comptroller and shared with legislative leaders. This ensures oversight and creates a record to assess whether electronic open auctions deliver measurable benefits.
Sets precedent for broader adoption. As a limited pilot, the outcomes and lessons learned in Onondaga County could influence future decisions on expanding electronic open auction methods to other municipalities across New York, potentially transforming how public financing is conducted statewide.
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Who cares
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Test Online Bond Auctions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local governments
- Print number 7288a
- Amend and recommit to local governments
- Referred to local governments
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.
Test Online Bond Auctions
In Senate Committee · Local Government · Sponsor Rachel May
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7288--A
2019-2020 Regular Sessions
IN ASSEMBLY
April 18, 2019
Introduced by M. of A. HUNTER -- read once and referred to the Committee on Local Governments -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the local finance law, in relation to the establishment of an electronic open auction public bond sale pilot program solely for certain municipalities; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The local finance law is amended by adding a new section 58.20 to read as follows:
§ 58.20 Electronic open auction public bond sale pilot program; municipalities. a. As used in this section:
1. "Municipality" means the county of Onondaga.
2. "Nationally recognized electronic securities bidding service" means a bidding service that is recognized nationally by municipal users of electronic securities bidding services as providing an accurate, secure and reliable on-line bidding system.
3. "Open auction" means a bond sale procedure that allows a bidder to receive information with respect to the status or rank of its bids prior to the conclusion of the bid submission period and improve its bid by submitting a bid at a lower interest rate, as a result of the received information 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. There is hereby established an electronic open auction public bond sale pilot program solely for municipalities, authorizing municipalities to conduct open auction public bond sales through any nationally recognized electronic securities bidding service.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11143-04-9
A. 7288--A 2
c. The chief fiscal officer of a municipality may accept electronic bids submitted in the form of open auctions conducted through a nationally recognized electronic securities bidding service which shall be deemed to be the designated receiving device. Notice of any bond sale shall provide for the manner in which the bid submission period may be extended and the basis for determination of the winning bidder.
d. Notwithstanding the provisions of section three hundred five of the state technology law or any other law, the notice of sale may contain a provision that bids will only be accepted electronically in the manner provided in such notice of sale.
e. The municipality's chief fiscal officer shall administer the program and may utilize the program in accordance with the powers heretofore or hereafter delegated to the chief fiscal officer by the legislative body of the municipality. Except as modified by this section, each municipal program shall comply with this chapter and all other applicable laws related to the sale of bonds.
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; and the sale was completed without errors.
g. 1. The municipality shall, on or before February first of each year, conduct annual evaluations of its pilot program or programs with a summary evaluation at the end of the two year open auction pilot program. The municipality shall submit the evaluations to the state comptroller.
2. Such report shall include, but not be limited to: (i) the cost of using an open auction platform; (ii) a bidding activity report detailing the winning bidder, the number of bidders, the number of bids, the number of bid improvements, and the number of auction extensions (if any); and (iii) any savings achieved through the open auction. Any savings shall be calculated by determining the cost differential between the initial bid submitted and the winning bid in an open auction. If the initial bid submitted is the ultimate winning bid, the open auction savings would be zero dollars.
3. Annually, the state comptroller shall compile all the information received from municipalities pursuant to this paragraph, and, on or before April first of each year, submit such compiled information to the legislature, the temporary president of the senate, the speaker of the assembly, the minority leader of the senate and the minority leader of the assembly.
§ 2. This act shall take effect immediately, and shall expire and be deemed repealed 2 years after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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