2023 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, 2026