Assembly Bill No. 493–Assemblymen Humke, Gibbons,
Brown, Mortenson and Neighbors

 

March 19, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Requires contracts for services concerning certain insurance of this state to be awarded through qualification-based bidding process. (BDR 27‑1013)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state risk management; requiring that a contract for services for certain insurance be awarded through a qualification-based bidding process; 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.  Chapter 331 of NRS is hereby amended by adding thereto

1-2  the provisions set forth as sections 2 and 3 of this act.

1-3    Sec. 2.  1.  An agent or broker hired pursuant to subsection 3 of

1-4  NRS 331.184 must be chosen through a qualification-based bidding

1-5  process, as the result of a request for proposals issued by the state risk

1-6  manager.

1-7    2.  A request for proposals prepared pursuant to this section must

1-8  identify:

1-9    (a) The education, experience and demonstrated expertise of the agent

1-10  or broker in the particular type of insurance for which services are

1-11  required.

1-12    (b) The demonstrated ability of the agent or broker to identify and

1-13  accommodate factors that are unique to the provision of the required

1-14  services in this state.

1-15    (c) The ability of the agent or broker to provide the services required.

1-16    3.  The state risk manager shall determine the relative weight of each

1-17  factor set forth in subsection 2 before a request for proposals is

1-18  advertised. In determining the relative weight of each factor, he shall

1-19  give particular attention to the ability of an agent or broker to identify

1-20  and accommodate factors that are unique to the provision of the required

1-21  services in this state.

2-1    4.  The state risk manager shall give reasonable notice, by advertising

2-2  and by written notice mailed to persons, firms or corporations in a

2-3  position to furnish the services required, of a request for proposals. Each

2-4  notice must be published in at least one newspaper of general circulation

2-5  in this state.

2-6    5.  The notice required by this section inviting the submission of

2-7  sealed proposals to the state risk manager must contain:

2-8    (a) A description of the services required.

2-9    (b) Where and how specifications and any other necessary

2-10  information may be obtained.

2-11    (c) The date and time not later than which responses must be received

2-12  by the state risk manager.

2-13    (d) The date and time when responses will be opened.

2-14    6.  A proposal received in response to a request for proposals issued

2-15  pursuant to this section is a public record and must be reviewed in a

2-16  public meeting conducted pursuant to the provisions of chapter 241 of

2-17  NRS.

2-18    7.  A contract awarded pursuant to this section must be awarded to

2-19  the best qualified agent or broker. The award of the contract must be

2-20  based upon:

2-21    (a) The best interests of this state;

2-22    (b) The qualifications and abilities of the agent or broker to provide

2-23  services that can best serve the interests of this state;

2-24    (c) The education, experience and demonstrated expertise of the agent

2-25  or broker that is relevant to the contract for which his services are

2-26  required; and

2-27    (d) The knowledge of the agent or broker of the factors that are

2-28  appropriate for the provision of services required for this state.

2-29    8.  In awarding the contract, the state risk manager shall not consider

2-30  the projections of the cost of an insurance contract that results from the

2-31  proposed services.

2-32    9.  A contract entered into pursuant to this section:

2-33    (a) Must be in writing and signed by each party to the contract; and

2-34    (b) Must not exceed 2 years, but may be extended if a subsequent

2-35  request for proposals produces only a response from the agent or broker

2-36  who holds the existing contract.

2-37    10.  The state risk manager shall establish procedures to carry out the

2-38  provisions of this section.

2-39    11.  As used in this section, “request for proposals” means a written

2-40  statement that sets forth the requirements and specifications of a contract

2-41  to be awarded by competitive selection.

2-42    Sec. 3.  1.  A person who makes an unsuccessful proposal pursuant

2-43  to section 2 of this act may file a notice of appeal with the hearings

2-44  division of the department of administration within 10 days after the date

2-45  of award. No bond is required of a person who wishes to appeal the

2-46  award. The notice of appeal must include a written statement of the

2-47  issues to be addressed on appeal.

2-48    2.  Within 20 days after receipt of the notice of appeal, a hearing

2-49  officer of the hearings division of the department of administration shall

3-1  hold a contested hearing on the appeal in substantial compliance with

3-2  the provisions of NRS 233B.121 to 233B.1235, inclusive, 233B.125 and

3-3  233B.126.

3-4    3.  The hearing officer may cancel the award for lack of compliance

3-5  with the provisions of section 2 of this act. A cancellation of the award

3-6  requires readvertising for proposals and a new award in accordance with

3-7  the provisions of section 2 of this act.

3-8    4.  A notice of appeal filed in accordance with the provisions of this

3-9  section operates as a stay of action in relation to any contract until a

3-10  determination is made by the hearing officer on the appeal.

3-11    5.  A person who makes an unsuccessful proposal may not seek any

3-12  type of judicial intervention until the hearing officer has made a

3-13  determination on the appeal.

3-14    6.  Neither the State of Nevada, nor any agency, contractor,

3-15  department, division, employee or officer of this state is liable for any

3-16  costs, expenses, attorney’s fees, loss of income or other damages

3-17  sustained by a person who makes an unsuccessful proposal, whether or

3-18  not the person files a notice of appeal pursuant to this section.

3-19    Sec. 4.  This act becomes effective on July 1, 2001.

 

3-20  H