What's happening
This bill extends until June 30, 2021, Erie County's authority to privately sell municipal bonds or notes with state approval.
Why it matters
Allows Erie County to continue using private sales for municipal bonds/notes. , which can provide more flexibility and potentially quicker access to funding for county projects compared to public auctions.
Requires state comptroller approval for each sale's terms and conditions. , ensuring oversight and an added layer of protection for taxpayers against unfavorable deals or misuse of this authority.
May help Erie County respond more nimbly to financial needs or market conditions. by not being limited to public bidding processes, which can be rigid or slow, especially during periods of economic uncertainty.
Extends a temporary exception, not a permanent change. , signaling ongoing legislative review of this special power and its impacts before making it a standard practice.
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Who cares
Erie County finance officials
The bill would extend through June 30, 2021, the county’s authority to arrange negotiated private sales or underwriting of its serial bonds and notes, subject to state comptroller approval.
Bond underwriters and private-placement firms
The extension would preserve opportunities to negotiate underwriting or sales compensation for Erie County bonds and notes.
New York State Comptroller’s office
The office would retain approval authority over the terms and conditions of sales covered by the extension.
Headline styles
Extend Erie Bond Sale Window
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.446
- 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.
Extend Erie Bond Sale Window
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7157
IN SENATE
January 9, 2020
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the local finance law, in relation to the sale of municipal obligations by the county of Erie
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 54.50 of the local finance law, as amended by chapter 74 of the laws of 2019, is amended to read as follows:
§ 54.50 Costs of sales; county of Erie. To facilitate the marketing of any issue of serial bonds or notes of the county of Erie issued on or before June thirtieth, two thousand [twenty] twenty-one such county may, notwithstanding any limitations on private sales of bonds provided by law, and subject to approval by the state comptroller of the terms and conditions of such sale:
a. arrange for the underwriting of its bonds or notes at private sale through negotiated agreement, compensation for such underwriting to be provided by negotiated fee or by sale of such bonds or notes to an underwriter at a price less than the sum of par value of, and the accrued interest on, such obligations; or
b. arrange for the private sale of its bonds or notes through negotiated agreement, compensation for such sales to be provided by negotiated fee, if required. The cost of such underwriting or private placement shall be deemed a preliminary cost for purposes of section 11.00 of this chapter.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04227-02-0
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the local finance law, in relation to the sale of munic- ipal obligations by the county of Erie
Purpose
To provide Erie County with sufficient flexibility in its bond sales to maximize its return on bonds sold.
Summary of provisions
Section 1 amends section 54.50 of the local finance law to permit the county of Erie to market serial bonds at private sale through the sunset date
Section 2 sets the effective date.
Justification
In competitive sales, the date of bidding is determined once the first advertisement is made, unless the sale is withdrawn and a new one adver- tised. In negotiated sales, the timing of sales is announced as an objective, but the date of the sale can be changed as required. This flexibility allows the county of Erie to adjust coupon rates, maturi- ties, and general conditions of the sales to ensure a more successful sale of the instruments.
Legislative history
2019: S.4159/A.3697 - Chapter 74;
2018:S.7547/A.9711 - Chapter 83;
2017: S.4308/A.4901 - Chapter 75;
2016:S.6788/A.9358A - Chapter 85;
2015:S.4300/A.6245A - Chapter 43;
2014:S.6687/A.8864 -Chapter 74;
2013:S.4364/A.6354 - Chapter 89;
2012:S.6606/A.9355 - Chapter 80;
2011:S.2787/A.4215 - Chapter 63;
2010: Chapter 127;
2009: Chapter 39;
2008: Chapter 80;
2007: Chapter 87;
2006: Chapter 123;
2005: Chapter 113;
2004: Chapter 115;
2003: Chapter 405;
2002: Chapter 98;
2001: Chapter 57;
2000: Chapter 96;
1999: Chapter 406;
1998: Chapter 139;
1997: Chapter 148;
1996: Chapter 119;
Fiscal implications
Produces lower interest rates for the county of Erie in negotiating the sale of their bonds.
Effective date
This act shall take effect immediatley.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.