Bill S6687-2013

Relates to the sale of municipal obligations by the county of Erie

Relates to the sale of municipal obligations by the county of Erie.

Details

Actions

  • Jun 30, 2014: SIGNED CHAP.74
  • Jun 30, 2014: DELIVERED TO GOVERNOR
  • Jun 9, 2014: returned to senate
  • Jun 9, 2014: passed assembly
  • Jun 9, 2014: home rule request
  • Jun 9, 2014: ordered to third reading cal.834
  • Jun 9, 2014: substituted for a8864
  • May 12, 2014: referred to local governments
  • May 12, 2014: DELIVERED TO ASSEMBLY
  • May 12, 2014: PASSED SENATE
  • May 12, 2014: HOME RULE REQUEST
  • May 5, 2014: ADVANCED TO THIRD READING
  • Apr 30, 2014: 2ND REPORT CAL.
  • Apr 29, 2014: 1ST REPORT CAL.446
  • Feb 27, 2014: REFERRED TO LOCAL GOVERNMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Local Government - Apr 29, 2014
Ayes (9): Martins, Ball, Boyle, Marchione, Ritchie, Valesky, Gipson, Latimer, O'Brien

Memo

BILL NUMBER:S6687

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:

Section 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, 2015.

Section 2 sets the 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 In competitive sales, the date of bidding is determined once the first advertisement is made, unless the sale is withdrawn and a new one advertised.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: 2013: S.4364/A.6354 - Chapter 89; 2012: S.6606/A.9355 - Chapter 80; 2011: S.2787/A.4215 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 6687 IN SENATE February 27, 2014 ___________
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 89 of the laws of 2013, 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 [fourteen] FIFTEEN 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.

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