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Bill

A 1386

Establishes the electronic open auction public bond sale pilot program for counties, cities, towns, villages and school districts

2025 Regular Session Introduced by Scott Gray

Bill A 1386 allows local governments to sell bonds via electronic auctions, boosting competition and transparency, potentially lowering borrowing costs for taxpayers.

REFERRED TO LOCAL GOVERNMENTS
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Bill Summary · A 1386

Summary of Bill A 1386

Bill Information

  • Bill Number: A 1386
  • Title: Establishes the electronic open auction public bond sale pilot program for counties, cities, towns, villages, and school districts
  • Status: Referred to Local Governments
  • Introduced: January 09, 2025
  • Classification: Bill

Purpose and Intent

Bill A 1386 aims to create a pilot program that allows counties, cities, towns, villages, and school districts to conduct public bond sales through an electronic open auction process. The intent of this bill is to enhance transparency, increase competition, and potentially lower borrowing costs for local governments by modernizing the bond sale process.

Key Provisions

  • Establishment of Pilot Program: The bill proposes the establishment of a pilot program specifically for electronic open auction public bond sales.
  • Eligible Entities: The program will be available to various local government entities, including:
    • Counties
    • Cities
    • Towns
    • Villages
    • School districts
  • Auction Process: The electronic auction process is designed to allow multiple bidders to participate, thereby fostering a competitive environment that could lead to better interest rates for public bonds.
  • Duration and Evaluation: The pilot program will be evaluated after a specified period to assess its effectiveness and impact on local government financing.

Who Would Be Affected

  • Local Governments: The primary beneficiaries of this bill will be local government entities that seek to issue bonds for funding projects. The electronic auction process is expected to streamline their financing efforts.
  • Taxpayers: By potentially lowering interest rates through increased competition, taxpayers may benefit from reduced costs associated with public borrowing.
  • Bond Investors: Investors will have the opportunity to participate in a more transparent and competitive bidding process.

Procedural Aspects

  • Current Status: As of January 09, 2025, the bill has been referred to the Local Governments committee for further consideration.
  • Related Legislation: This bill is related to several prior-session bills, indicating ongoing legislative interest in improving public bond sales. Notable related bills include:
    • A 1625
    • A 9270
    • A 2536
    • A 6756
    • A 4416
    • A 5137
    • S 47 (companion bill)

Conclusion

Bill A 1386 represents a significant step towards modernizing the public bond sale process for local governments. By establishing an electronic open auction pilot program, the bill seeks to improve transparency and competition in public financing, ultimately benefiting local entities and taxpayers alike. Further developments will be monitored as the bill progresses through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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