NY Loc Fin L § 58.10 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof 58.10 - Electronic Open Auction Public Bond Sale Pilot Program.

* §  58.10  Electronic open auction public bond sale pilot program. a.   As used in this section:1. "Municipality" means a county with a  population  of  four  hundred   thousand  or  more,  or  a city or town with a population of one hundred   thousand or more that has issued at least twenty-five million dollars in   bonds within at least one of the preceding three years.2. "Nationally recognized electronic securities bidding service" means   a bidding service that is approved by  the  superintendent  pursuant  to   subdivision b of this section.3.  "Open auction" means a bond sale procedure that allows a bidder to   receive information with respect to the ranking of its bids prior to the   conclusion of the bidding period 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.5. "Superintendent" means the superintendent of financial services.b. 1. There is hereby established an electronic open auction bond sale   pilot  program authorizing municipalities to conduct open auction public   bond sales  through  any  nationally  recognized  electronic  securities   bidding  service  approved  by the superintendent. Nationally recognized   electronic securities bidding services desiring to operate an electronic   open auction shall apply to the superintendent for authorization  to  do   so  by filing an application with the superintendent. The superintendent   shall  make  available   an   application   form   that   provides   the   superintendent  with  information  regarding the technology and security   practices maintained by the nationally recognized electronic  securities   bidding  service,  the  requirements  to  be  established for bidding by   bidders,  the  methods  by  which  auction  sales  are  conducted,   the   experience  of  the  nationally recognized electronic securities bidding   service in conducting electronic  open  auctions  of  bonds,  and  other   information the superintendent may deem relevant.2.   If  the  superintendent  determines  that  the  requirements  and   conditions of the open auction are in accordance with the provisions  of   this  chapter  and  the  bidding  service  provides  a  secure, open and   competitive opportunity for qualified bidders to submit  proposals,  the   application shall be deemed approved.3.  The superintendent shall post information regarding the nationally   recognized  electronic  securities  bidding  services  that  have   been   approved  for  use  by  municipalities  on  the  department of financial   services website.c. If the chief fiscal officer of the municipality has authorized  the   receipt  of  bids  in an electronic open auction format, such electronic   bids may be submitted in the form of open auctions conducted  through  a   nationally recognized electronic securities bidding service which entity   shall  be  deemed  to  be  the  designated  receiving device pursuant to   section 58.00 of this title. Notice of any bond sale shall  provide  for   the manner in which the bidding period may be extended and the basis for   determination of the winning bidder.d.  Notwithstanding the provisions of subdivision one of section three   hundred five of the state technology law, if the notice of sale for  the   open  auction  public  bond  contains a provision that bids will only be   accepted electronically in the manner provided in such notice  of  sale,   the  municipality shall not be required to accept non-electronic bids in   any form.e. The  municipality's  chief  fiscal  officer  shall  administer  the   program   and   shall  publish  its  policies  and  procedures  for  the   procurement  of  nationally  recognized  electronic  securities  bidding    services  on  the  municipality's  internet  website.  Such policies and   procedures shall include policies to prevent fraud. Except  as  modified   by  this  section,  the municipal program shall comply with this chapter   and all other applicable laws, rules and regulations 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; the sale was  completed  without  errors;  and  the   process  was  favorable  as compared to the method currently used by the   municipality.g. The municipality shall conduct evaluations of the program  annually   with  a  summary  evaluation  at  the  end  of the two year program. The   municipality shall submit the evaluations  to  the  superintendent,  the   temporary  president of the senate and the speaker of the assembly. Such   report shall include, but not be limited to, any  demonstrated  evidence   that  sale  of public bonds using electronic open auctions is comparable   to the cost of issuing public  bonds  through  the  current  sealed  bid   process,  the  fees  associated  with  nationally  recognized electronic   securities bidding services, whether the use of electronic open auctions   resulted in an increased number of bidders and whether the  process  was   favorable as compared to the method currently used by the municipality.* NB Repealed January 1, 2024