Florida Administrative Code › 19 - STATE BOARD OF ADMINISTRATION › 19A - Division of Bond Finance › Chapter 19A-3 - SALE AND AWARD OF BONDS AND HOUSING BONDS › Section 19A-3.003 - Sale and Award of Bonds

Current through Reg. 50, No. 138; July 16, 2024
(1) Bonds shall
				be sold at public sale at such place or places within the State as the
				Governing Board shall determine to receive proposals for the purchase of such
				Bonds. Notice of such sale shall be published at least once at least 10 days
				prior to the date of sale in one or more newspapers or financial journals
				published within or without the State and shall contain such terms as the
				Governing Board shall deem advisable and proper under the circumstances;
				provided, that if no bids are received at the time and place called for by such
				notice of sale, or if all bids received are rejected, such Bonds may again be
				offered for sale upon a shorter period of reasonable notice provided for by
				resolution of the Governing Board.
(2) All proposals for the purchase of any
				Bonds offered for sale by the Division shall be opened in public. By resolution
				of the Division, such Bonds shall be awarded to the lowest Bidder. The basis of
				award may be either the lowest net interest cost or the lowest true interest
				cost, as set forth in the resolution authorizing the issuance or sale of the
				Bonds. The Secretary, or an Assistant Secretary, of the Governing Board is
				hereby authorized to award the Bonds and such award shall be final without any
				further action required by the Governing Board. Further, pursuant to Section
				 215.68(5)(b),
				F.S., the Secretary or an Assistant Secretary of the Governing Board is
				authorized to reject all bids received and such rejections shall be final
				without further action required by the Governing Board. The Director of the
				Division shall report the results of the award of the Bonds or the rejection of
				all bids received at the next meeting of the Governing Board.
(3)
(a)
				Notwithstanding the provisions of subsections (1) and (2), in the event the
				Governing Board determines by resolution that a negotiated sale of bonds is in
				the best interest of the state, and the Governing Board has approved the form
				and substance of the purchase contract except for any details unique to the
				particular issue of bonds, the Director or Secretary or any Assistant Secretary
				of the Governing Board is authorized to negotiate and execute a purchase
				contract for the sale and award of the bonds, without further action by the
				Governing Board, subject to any restrictions set forth in the resolution
				authorizing the negotiated sale. In making a determination that the negotiated
				sale of bonds is in the best interest of the state, the Governing Board shall
				provide in the resolution authorizing the negotiated sale specific findings of
				the reasons requiring the negotiated sale and the basis for the specific
				findings. In making such specific findings, the Governing Board shall consider
				the following factors:
1. Unstable market
				conditions which require the flexible pricing or the precise timing of the sale
				of the bonds to a degree which would not be expected through a competitive
				sale;
2. Concerns regarding the
				credit quality of the state, the agency for which the bonds are being issued,
				or any source of revenue pledged to the bonds which require more extensive or
				aggressive marketing of the bonds than would be expected through a competitive
				sale;
3. An unusually large bond
				issue which, if sold at competitive sale, would require the formation of larger
				than usual underwriting syndicates resulting in the expectation of fewer bids
				than would be necessary for sufficient price competition;
4. A bond issue for a new entity or a new
				program which would require more extensive or aggressive marketing of the bonds
				than would be likely through a competitive sale;
5. Use of an innovative or unusual structure
				or security which would require the underwriting of the bonds in a manner not
				likely to be available in a competitive sale; and
6. Changes or anticipated changes in laws or
				regulations which would make the prompt sale of the bonds
				desirable.