Permits the county of Erie to market serial bonds at private sale through June 30, 2011.
Ayes (7): Stewart-Cousins, Oppenheimer, Valesky, Thompson, Johnson C, Little, Bonacic
Excused (1): Morahan
Ayes (60): Adams, Addabbo, Alesi, Aubertine, Bonacic, Breslin, DeFrancisco, Diaz, Dilan, Duane, Espada, Farley, Flanagan, Foley, Fuschillo, Golden, Griffo, Hannon, Hassell-Thomps, Huntley, Johnson C, Johnson O, Klein, Krueger, Kruger, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Montgomery, Nozzolio, Onorato, Oppenheimer, Padavan, Parker, Peralta, Perkins, Ranzenhofer, Robach, Saland, Sampson, Savino, Schneiderman, Serrano, Seward, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky, Volker, Winner, Young
Nays (1): Skelos
Excused (1): Morahan
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: 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, 2010. Under current law, the ability for the County of Erie to sell its serial bonds at private sale expires on June 30, 2009.
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 In competitive sales the date of bidding is determined once the first advertisement is made, unless the sale is withdrawn and a new one advertised.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 the 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: 2009: Chapter 39 of 2009 (S.1279/A.4132) 2008: Chapter 80 of 2008 (S.6740/A.9858) 2007: Chapter 87 of 2007 (S.2676/A.5405) 2006: Chapter 123 of 2006 (S.6799/A.10176) 2005: Chapter 113 of 2005 (S.271/A.2443) 2004: Chapter 115 of 2004 (S.5828/A.9250) 2003: Chapter 405 of 2003 (S.843/A.1785) 2002: Chapter 98 of 2002 (S.6159/A.9741) 2001: Chapter 57 of 2001 (S.1526/A.2397) 2000: Chapter 96 (S.6356/A.9338) 1999: Chapter 406 1998: Chapter 139 1997: Chapter 148 1996: Chapter 119
LOCAL FISCAL IMPLICATIONS: Produces lower interest rates for the County of Erie in negotiating the sale of their bonds.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 6833 IN SENATE February 11, 2010 ___________Introduced by Sens. STACHOWSKI, RANZENHOFER, VOLKER -- 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 39 of the laws of 2009, 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
[ten]ELEVEN 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. LBD15779-01-0