S6606-2011 - NY Senate Open Legislation - Permits the county of Erie to market serial bonds at private sale through June 30, 2013

Permits the county of Erie to market serial bonds at private sale through June 30, 2013.

Sponsor: GALLIVAN
Law Section: Local Finance Law / Law: Amd S54.50, Loc Fin L

S6606-2011 Actions

Jun 29, 2012: SIGNED CHAP.80
Jun 22, 2012: DELIVERED TO GOVERNOR
Jun 11, 2012: returned to senate
Jun 11, 2012: passed assembly
Jun 11, 2012: home rule request
Jun 11, 2012: ordered to third reading rules cal.113
Jun 11, 2012: substituted for a9355
May 21, 2012: referred to local governments
May 21, 2012: DELIVERED TO ASSEMBLY
May 21, 2012: PASSED SENATE
May 21, 2012: HOME RULE REQUEST
Mar 19, 2012: ADVANCED TO THIRD READING
Mar 15, 2012: 2ND REPORT CAL.
Mar 14, 2012: 1ST REPORT CAL.361
Mar 2, 2012: REFERRED TO LOCAL GOVERNMENT

S6606-2011 Meetings

Local Government: Mar 14, 2012

S6606-2011 Calendars

S6606-2011 Votes

VOTE: COMMITTEE VOTE: - Local Government - Mar 14, 2012

Ayes (6): Martins, Little, McDonald, Ritchie, Stewart-Cousins, Klein
Ayes W/R (1): Ball
Excused (1): Oppenheimer

VOTE: FLOOR VOTE: - May 21, 2012

Ayes (58): Adams, Addabbo, Alesi, Avella, Bonacic, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Duane, Espaillat, Farley, Flanagan, Fuschillo, Gallivan, Gianaris, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Johnson, Kennedy, Klein, Krueger, Lanza, Larkin, LaValle, Libous, Little, Marcellino, Martins, Maziarz, McDonald, Montgomery, Nozzolio, O'Mara, Oppenheimer, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Robach, Saland, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Valesky, Young, Zeldin
Nays (1): Ball
Excused (2): Huntley, Rivera

S6606-2011 Memo

BILL NUMBER:S6606

TITLE OF BILL:
An act
to amend the local finance law, in relation to the sale of municipal
obligations by the county of Erie

PURPOSE:
To provide Erie County with sufficient flexibility in its bond sales
to maximize its return on bonds sold.

SUMMARY OF PROVISIONS:
� 1- Amends Section 54.50 of the Local Finance Law to permit the
County of Erie to market serial bonds at private sale through June
30, 2013.

� 2- Effective date.

JUSTIFICATION:
Recent swings in the stock market and confusion and uncertainty in the
credit market mandate the need for greater flexibility in the
marketing of bonds. In competitive sales the date of bidding is
determined once the first advertisement is made, unless the sale is
withdrawn and a new one advertised. In negotiated sales, the timing
of sales is announced as an objective, but the date of the sale can
be changed as required. This flexibility allows the County of Erie to
adjust Coupon rates, maturities and general conditions of the sales
to ensure a more successful sale of the instruments.

LEGISLATIVE HISTORY:
2011: A.4215/S.2787 - Chapter 63
2010: Chapter 127
2009: Chapter 39
2008: Chapter 80
2007: Chapter 87
2006: Chapter 123
2005: Chapter 113
2004: Chapter 115
2003: Chapter 405
2002: Chapter 98
2001: Chapter 57
2000: Chapter 96
1999: Chapter 406
1998: Chapter 139
1997: Chapter 148
1996: Chapter 119

FISCAL IMPLICATIONS:
Produces lower interest rates for the County of Erie in negotiating
the sale of their bonds.

EFFECTIVE DATE:
This act shall take effect immediately.

S6606-2011 Text

 S T A T E   O F   N E W   Y O R K
 
                                          6606
 I N  SENATE
 March 2, 2012
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
 printed to be committed to the Committee on Local Government
 

AN ACT to amend the local finance law, in relation to the sale of munic
 ipal obligations by the county of Erie
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1.

Section 54.50 of the local finance law, as amended by chap
 ter 63 of the laws of 2011, is amended to read as follows:

 

S 54.50 Costs of sales; county of Erie. To facilitate the marketing of
 any  issue  of  serial bonds or notes of the county of Erie issued on or
 before June thirtieth, two thousand [twelve] THIRTEEN such  county  may,
 notwithstanding  any  limitations  on private sales of bonds provided by
 law, and subject to approval by the state comptroller of the  terms  and
 conditions of such sale:

 a.  arrange for the underwriting of its bonds or notes at private sale
 through negotiated agreement, compensation for such underwriting  to  be
 provided  by  negotiated  fee  or  by  sale of such bonds or notes to an
 underwriter at a price less than the  sum  of  par  value  of,  and  the
 accrued interest on, such obligations; or
 b.  arrange for the private sale of its bonds or notes through negoti
 ated agreement, compensation for such sales to be provided by negotiated
 fee, if required. The cost of such  underwriting  or  private  placement
 shall be deemed a preliminary cost for purposes of section 11.00 of this
 chapter.
 

S 2. This act shall take effect immediately.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14809-01-2

S6606-2011: Permits the county of Erie to market serial bonds at private sale through June 30, 2013