BILL NUMBER: S8316
SPONSOR: MARTINEZ
 
TITLE OF BILL:
An act to amend chapter 643 of the laws of 2019 amending the local
finance law, relating to establishing an electronic open auction bond
sale pilot program, in relation to the effectiveness thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This legislation would extend for two years the electronic open auction
bond sale pilot program allowing municipalities the option to sell bonds
in an open electronic auction format.
 
SUMMARY OF PROVISIONS:
Section one amends § 58.10 of the Local Finance Law to extend the elec-
tronic open auction bond sale pilot program two additional years,
authorizing municipalities to conduct open auction public bond sales
operated through nationally recognized electronic securities bidding
services, approved by DFS through an application process, for use by
municipalities.
Section two provides the effective date.
 
JUSTIFICATION:
Some have argued that electronic bidding increases the speed and effi-
ciency of bidding as well as reducing the administrative burden and
costs. Currently, New York authorizes electronic bidding through section
58 of the Local Finance Law but only permits closed bidding. There are
now forty states that have enacted legislation to allow municipalities
to conduct public bond sales through nationally-recognized bidding
firms, many of them by the electronic bidding open auction format. In
2019, New York authorized the establishment of an open auction bond sale
pilot program. This legislation would authorize such pilot program to be
extended for an additional two years.
 
PRIOR LEGISLATIVE HISTORY:
A.6565/S.6102- Chapter 297 of 2023 A.7384/S.6587- Chapter 298 of 2021
A.8336-A/S.5886-A - Chapter 643 of 2019
 
EFFECTIVE DATE:
This act shall take effect immediately.