EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 450 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 5, inclusive, of this act.

1-3 Sec. 2. 1. A county hospital may, with the approval of the

1-4 governing body of the hospital, become a member of a purchasing group

1-5 for the purpose of purchasing supplies, materials and equipment used by

1-6 the county hospital.

1-7 2. A county hospital that becomes a member of a purchasing group

1-8 may, in accordance with the requirements of section 3 of this act,

1-9 purchase supplies, materials and equipment through the purchasing

1-10 group without complying with the requirements for competitive bidding

1-11 set forth in chapter 332 of NRS.

2-1 Sec. 3. A county hospital that is authorized pursuant to NRS

2-2 450.191 or section 2 of this act to purchase supplies, materials and

2-3 equipment in accordance with this section through the purchasing

2-4 contracts of the company that manages the hospital or through a

2-5 purchasing group may purchase the supplies, materials and equipment

2-6 without complying with the requirements for competitive bidding set

2-7 forth in chapter 332 of NRS if:

2-8 1. The documents pertaining to the proposed purchase, including,

2-9 without limitation, the prices available to the company or purchasing

2-10 group, are summarized in writing and, together with a sworn statement

2-11 by an officer or agent of the company or purchasing group that the

2-12 prices were obtained by the company or purchasing group through a

2-13 process of competitive bidding, are presented to the governing body of the

2-14 county hospital at its next regularly scheduled meeting; and

2-15 2. The governing body, after reviewing the summary and statement,

2-16 finds that the proposed purchase will be made at a lower price than the

2-17 lowest price reasonably obtainable by the hospital through competitive

2-18 bidding pursuant to chapter 332 of NRS or available to the hospital

2-19 pursuant to NRS 333.470 and approves the proposed purchase.

2-20 Sec. 4. "Allied health profession" means:

2-21 1. Psychology as defined in chapter 641 of NRS;

2-22 2. Podiatry as defined in chapter 635 of NRS; or

2-23 3. Oriental medicine or acupuncture as defined in chapter 634A of

2-24 NRS.

2-25 Sec. 5. "Purchasing group" means a cooperative organization of

2-26 hospitals and other health care organizations that affiliate for the

2-27 purpose of combining their purchasing power to secure a lower cost for

2-28 their purchases of supplies, materials and equipment than would be

2-29 available to the members of the purchasing group individually.

2-30 Sec. 6. NRS 450.005 is hereby amended to read as follows:

2-31 450.005 As used in this chapter, unless the context otherwise requires,

2-37 the meanings ascribed to them in those sections.

2-38 Sec. 7. NRS 450.191 is hereby amended to read as follows:

2-39 450.191 1. The governing body of a county hospital may contract

3-1 2. The agreement may provide [that] :

3-2 (a) That the administrator of the hospital must be an employee of the

3-3 company which manages the hospital [.

3-4 3. The agreement may also provide that] ; and

3-5 (b) That the hospital may, [with the approval of the governing body of

3-6 the hospital,] in accordance with the requirements of section 3 of this act,

3-7 purchase supplies, materials and equipment [after complying with the

3-8 requirements for competitive bidding of chapter 332 of NRS if the hospital

3-9 finds that similar merchandise is available, at a reasonable savings below

3-10 the lowest bid,] through the purchasing contracts of the company which

3-11 manages the hospital, or through [another group purchasing arrangement

3-12 among hospitals. Except as otherwise provided in subsection 4, the prices

3-13 available to the company which manages the hospital or to other

3-14 purchasing groups must be submitted at the time of the bid opening as

3-15 other bids are made under chapter 332 of NRS. The documents pertaining

3-16 to each proposed purchase or acquisition must be summarized in writing

3-17 for presentation at the next regularly scheduled meeting of the governing

3-18 body of the hospital. After reviewing the summary the governing body

3-19 shall approve or disapprove the proposed purchase or acquisition.

3-20 4. If, after the process of competitive bidding pursuant to chapter 332

3-21 of NRS is completed, the company which manages the hospital offers to

3-22 the hospital through its purchasing contracts a lower price for supplies,

3-23 materials and equipment than the lowest price obtained by the hospital

3-24 through competitive bidding or available to the hospital pursuant to NRS

3-25 333.470, the hospital, with the approval of its governing body, may

3-26 purchase those supplies, materials and equipment through the purchasing

3-27 contracts of the company which manages the hospital without further

3-28 competitive bidding.] a purchasing group, without complying with the

3-29 requirements for competitive bidding set forth in chapter 332 of NRS.

3-30 Sec. 8. This act becomes effective upon passage and approval.