Senate Bill No. 533–Committee on Government Affairs

(On Behalf of Budget Division)

March 22, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Authorizes designee of clerk of state board of examiners to approve certain contracts. (BDR 23-775)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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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).

 

AN ACT relating to governmental administration; authorizing a designee of the clerk of the state board of examiners to approve certain contracts on behalf of the board; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 284.173 is hereby amended to read as follows:

1-2 284.173 1. Elective officers and heads of departments, boards,

1-3 commissions or institutions may contract for the services of persons as

1-4 independent contractors.

1-5 2. An independent contractor is a natural person, firm or corporation

1-6 who agrees to perform services for a fixed price according to his or its own

1-7 methods and without subjection to the supervision or control of the other

1-8 contracting party, except as to the results of the work, and not as to the

1-9 means by which the services are accomplished.

1-10 3. For the purposes of this section:

1-11 (a) Travel, subsistence and other personal expenses may be paid to an

1-12 independent contractor, if provided for in the contract, in such amounts as

1-13 provided for in the contract. Those expenses must not be paid pursuant to

1-14 the provisions of NRS 281.160.

1-15 (b) There must be no:

1-16 (1) Withholding of income taxes by the state;

1-17 (2) Coverage for industrial insurance provided by the state;

2-1 (3) Participation in group insurance plans which may be available to

2-2 employees of the state;

2-3 (4) Participation or contributions by either the independent contractor

2-4 or the state to the public employees’ retirement system;

2-5 (5) Accumulation of vacation leave or sick leave; or

2-6 (6) Coverage for unemployment compensation provided by the state

2-7 if the requirements of NRS 612.085 for independent contractors are met.

2-8 4. An independent contractor is not in the classified or unclassified

2-9 service of the state, and has none of the rights or privileges available to

2-10 officers or employees of the State of Nevada.

2-11 5. Except as otherwise provided in this subsection, each contract for

2-12 the services of an independent contractor must be in writing. The form of

2-13 the contract must be first approved by the attorney general, and, except as

2-14 otherwise provided in subsection 7, an executed copy of each contract must

2-15 be filed with the fiscal analysis division of the legislative counsel bureau

2-16 and the clerk of the state board of examiners. The state board of examiners

2-17 may waive the requirements of this subsection in the case of contracts

2-18 which are for amounts less than $750.

2-19 6. Except as otherwise provided in subsection 7, and except contracts

2-20 entered into by the University and Community College System of Nevada,

2-21 each proposed contract with an independent contractor must be submitted

2-22 to the state board of examiners. The contracts do not become effective

2-23 without the prior approval of the state board of examiners, but the state

2-24 board of examiners may authorize its clerk or his designee to approve

2-25 contracts which are:

2-26 (a) For amounts less than $5,000 or, in contracts necessary to preserve

2-27 life and property, for amounts less than $25,000.

2-28 (b) Entered into by the state gaming control board for the purposes of

2-29 investigating an applicant for or holder of a gaming license.

2-30 The state board of examiners shall adopt regulations to carry out the

2-31 provisions of this section.

2-32 7. Copies of the following types of contracts need not be filed or

2-33 approved as provided in subsections 5 and 6:

2-34 (a) Contracts executed by the department of transportation for any work

2-35 of construction or reconstruction of highways.

2-36 (b) Contracts executed by the state public works board or any other state

2-37 department or agency for any work of construction or major repairs of state

2-38 buildings if the contracting process was controlled by the rules of open

2-39 competitive bidding.

2-40 (c) Contracts executed by the housing division of the department of

2-41 business and industry.

2-42 (d) Contracts executed by the state industrial insurance system.

3-1 (e) Contracts executed with business entities for any work of

3-2 maintenance or repair of office machines and equipment.

3-3 8. The state board of examiners shall review each contract submitted

3-4 for approval pursuant to subsection 6 to consider:

3-5 (a) Whether sufficient authority exists to expend the money required by

3-6 the contract; and

3-7 (b) Whether the service which is the subject of the contract could be

3-8 provided by a state agency in a more cost-effective manner.

3-9 If the contract submitted for approval continues an existing contractual

3-10 relationship, the board shall ask each agency to ensure that the state is

3-11 receiving the services that the contract purports to provide.

3-12 9. If the services of an independent contractor are contracted for to

3-13 represent an agency of the state in any proceeding in any court, the contract

3-14 must require the independent contractor to identify in all pleadings the

3-15 specific state agency which he is representing.

3-16 Sec. 2. This act becomes effective at 12:01 a.m. on July 1, 1999.

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