§ 58.10 — Electronic open auction public bond sale pilot program

New York § 58.10

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 4: Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof
• Art. 2: Local Indebtedness

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* § 58.10 Electronic open auction public bond sale pilot program. a.\nAs used in this section:\n 1. "Municipality" means a county, or a city or town with a population\nof one hundred thousand or more that has issued at least twenty-five\nmillion dollars in bonds within at least one of the preceding five\nyears.\n 2. "Nationally recognized electronic securities bidding service" means\na bidding service that is approved by the superintendent pursuant to\nsubdivision b of this section.\n 3. "Open auction" means a bond sale procedure that allows a bidder to\nreceive information with respect to the ranking of its bids prior to the\nconclusion of the bidding period in accordance with the municipality's\nnotice of such bond sale circulated in accordance with applicable\nrequirements of this chapter.\n 4. "Program" means the electronic open auction public bond sale pilot\nprogram established pursuant to this section.\n 5. "Superintendent" means the superintendent of financial services.\n b. 1. There is hereby established an electronic open auction bond sale\npilot program authorizing municipalities to conduct open auction public\nbond sales through any nationally recognized electronic securities\nbidding service approved by the superintendent. Nationally recognized\nelectronic securities bidding services desiring to operate an electronic\nopen auction shall apply to the superintendent for authorization to do\nso by filing an application with the superintendent. The superintendent\nshall make available an application form that provides the\nsuperintendent with information regarding the technology and security\npractices maintained by the nationally recognized electronic securities\nbidding service, the requirements to be established for bidding by\nbidders, the methods by which auction sales are conducted, the\nexperience of the nationally recognized electronic securities bidding\nservice in conducting electronic open auctions of bonds, and other\ninformation the superintendent may deem relevant.\n 2. If the superintendent determines that the requirements and\nconditions of the open auction are in accordance with the provisions of\nthis chapter and the bidding service provides a secure, open and\ncompetitive opportunity for qualified bidders to submit proposals, the\napplication shall be deemed approved.\n 3. The superintendent shall post information regarding the nationally\nrecognized electronic securities bidding services that have been\napproved for use by municipalities on the department of financial\nservices website.\n c. If the chief fiscal officer of the municipality has authorized the\nreceipt of bids in an electronic open auction format, such electronic\nbids may be submitted in the form of open auctions conducted through a\nnationally recognized electronic securities bidding service which entity\nshall be deemed to be the designated receiving device pursuant to\nsection 58.00 of this title. Notice of any bond sale shall provide for\nthe manner in which the bidding period may be extended and the basis for\ndetermination of the winning bidder.\n d. Notwithstanding the provisions of subdivision one of section three\nhundred five of the state technology law, if the notice of sale for the\nopen auction public bond contains a provision that bids will only be\naccepted electronically in the manner provided in such notice of sale,\nthe municipality shall not be required to accept non-electronic bids in\nany form.\n e. The municipality's chief fiscal officer shall administer the\nprogram and shall publish its policies and procedures for the\nprocurement of nationally recognized electronic securities bidding\nservices on the municipality's internet website. Such policies and\nprocedures shall include policies to prevent fraud. Except as modified\nby this section, the municipal program shall comply with this chapter\nand all other applicable laws, rules and regulations related to the sale\nof bonds.\n f. The municipality's chief fiscal officer shall review the electronic\nopen auction bidding process to ensure that the bond sale was completed\nin a timely fashion; the sale was completed without errors; and the\nprocess was favorable as compared to the method currently used by the\nmunicipality.\n g. The municipality shall conduct evaluations of the program annually\nwith a summary evaluation at the end of the two year program. The\nmunicipality shall submit the evaluations to the superintendent, the\ntemporary president of the senate and the speaker of the assembly. Such\nreport shall include, but not be limited to, any demonstrated evidence\nthat sale of public bonds using electronic open auctions is comparable\nto the cost of issuing public bonds through the current sealed bid\nprocess, the fees associated with nationally recognized electronic\nsecurities bidding services, whether the use of electronic open auctions\nresulted in an increased number of bidders and whether the process was\nfavorable as compared to the method currently used by the municipality.\n * NB Repealed January 1, 2028\n