requires two-thirds majority vote (§ 17)                                                 

                                                                                                  

 

Assembly Bill No. 649–Committee on Government Affairs

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises certain provisions regarding governmental purchasing. (BDR 27‑1127)

 

FISCAL NOTE:    Effect on Local Government: No.

                                 Effect on the State: No.

 

~

 

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

 

AN ACT relating to governmental purchasing; authorizing a local government and the chief of the purchasing division of the department of administration to receive bids on secure websites on the Internet or its successor; removing the provision requiring notice of the expiration of the insurance coverage of a local government; authorizing a local government to charge fees for the use of a credit card or debit card or the electronic transfer of money when remitting fees or payments to the local government; 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 332 of NRS is hereby amended by adding thereto a

1-2  new section to read as follows:

1-3    1.  A governing body or its authorized representative may use on-line

1-4  bidding to receive bids submitted in response to a request for bids. The

1-5  governing body shall not use on-line bidding as the exclusive means of

1-6  receiving bids for the request for bids.

1-7    2.  A request for bids for which bids may be submitted pursuant to

1-8  subsection 1 must designate a date and time at which bids may be

1-9  submitted and may designate a date and time after which bids will no

1-10  longer be received.

1-11    3.  A governing body or its authorized representative may require

1-12  bidders to:

1-13    (a) Register before the date and time at which bids may be submitted;

1-14  and

1-15    (b) Agree to terms, conditions or requirements of the request for bids

1-16  to facilitate on-line bidding.

1-17    4.  The procedures established by a governing body or its authorized

1-18  representative for the purposes of conducting on-line bidding must not

1-19  conflict with the provisions of this chapter.

2-1    5.  As used in this section, “on-line bidding” means a process by

2-2  which bidders submit bids for a contract on a secure website on the

2-3  Internet or its successor, if any, which is established and maintained for

2-4  that purpose.

2-5    Sec. 2.  NRS 332.025 is hereby amended to read as follows:

2-6    332.025  As used in this chapter, unless the context otherwise requires:

2-7    1.  “Authorized representative” means [the] a person designated by the

2-8  governing body to be responsible for the development, award and proper

2-9  administration of all purchases and contracts[, or either of them, under] for

2-10  a local government or a department, division, agency, board or unit of a

2-11  local government made pursuant to this chapter.

2-12    2.  “Chief administrative officer” means the person directly responsible

2-13  to the governing body for the administration of that particular entity.

2-14    3.  “Evaluator” means an authorized representative officer,

2-15  employee, representative, agent, consultant or member of a governing

2-16  body who has participated in:

2-17    (a) The evaluation of bids;

2-18    (b) Negotiations concerning purchasing by a local government; or

2-19    (c) The review or approval of the award, modification or extension of

2-20  a contract.

2-21    4.  “Governing body” means the board, council, commission or other

2-22  body in which the general legislative and fiscal powers of the local

2-23  government are vested.

2-24    [4.] 5.  “Proprietary information” means:

2-25    (a) Any trade secret or confidential business information that is

2-26  contained in a bid submitted to a governing body or its authorized

2-27  representative on a particular contract; or

2-28    (b) Any other trade secret or confidential business information

2-29  submitted to a governing body or its authorized representative by a bidder

2-30  and designated as proprietary by the governing body or its authorized

2-31  representative.

2-32  As used in this subsection, “confidential business information” means any

2-33  information relating to the amount or source of any income, profits, losses

2-34  or expenditures of a person, including data relating to cost , [or] price , or

2-35  the customers of a bidder which is submitted in support of a bid. The term

2-36  does not include the amount of a bid submitted to a governing body or its

2-37  authorized representative.

2-38    [5.  “Purchasing officer” means an authorized representative, officer,

2-39  employee, representative, agent, consultant or member of a governing body

2-40  who has participated in:

2-41    (a) The evaluation of bids;

2-42    (b) Negotiations concerning purchasing by a local government; or

2-43    (c) The review or approval of the award, modification or extension of a

2-44  contract.]

2-45    6.  “Trade secret” has the meaning ascribed to it in NRS 600A.030.

2-46    Sec. 3.  NRS 332.061 is hereby amended to read as follows:

2-47    332.061  1.  Except as otherwise provided in this subsection , [2,]

2-48  proprietary information regarding a trade secret does not constitute public

2-49  information and is confidential.

3-1    [2.] A person shall not disclose proprietary information regarding a

3-2  trade secret unless the disclosure is made for the purpose of a civil,

3-3  administrative or criminal investigation or proceeding, and the person

3-4  receiving the information represents in writing that protections exist under

3-5  applicable law to preserve the integrity, confidentiality and security of the

3-6  information.

3-7    2.  A bid which contains a provision that requires negotiation or

3-8  evaluation by the governing body or an evaluator may not be disclosed

3-9  until the bid is recommended for the award of a contract.

3-10    Sec. 4.  NRS 332.065 is hereby amended to read as follows:

3-11    332.065  1.  If a governing body or its authorized representative has

3-12  advertised for or requested bids in letting a contract, the [award] governing

3-13  body or its authorized representative must, except as otherwise provided

3-14  in subsection 2, [be made] award the contract to the lowest responsive and

3-15  responsible bidder. The lowest responsive and responsible bidder must be

3-16  judged on the basis of price, conformance to specifications, [bidders’]

3-17  qualifications, including [the bidders’] , without limitation, past

3-18  performance , [in such matters,] quality and utility of services, supplies,

3-19  materials or equipment offered and [their] adaptability to the required

3-20  purpose and [in] the best [interest] interests of the public . [each of the

3-21  factors being considered.]

3-22    2.  The governing body[:] or its authorized representative:

3-23    (a) Shall give preference to recycled products if:

3-24      (1) The product meets the applicable standards;

3-25      (2) The product can be substituted for a comparable nonrecycled

3-26  product; and

3-27      (3) The product costs no more than a comparable nonrecycled

3-28  product.

3-29    (b) May give preference to recycled products if:

3-30      (1) The product meets the applicable standards;

3-31      (2) The product can be substituted for a comparable nonrecycled

3-32  product; and

3-33      (3) The product costs no more than 5 percent more than a comparable

3-34  nonrecycled product.

3-35    (c) May purchase recycled paper products if the specific recycled paper

3-36  product is:

3-37      (1) Available at a price which is not more than 10 percent higher than

3-38  that of paper products made from virgin material;

3-39      (2) Of adequate quality; and

3-40      (3) Available to the purchaser within a reasonable period.

3-41    3.  If after the lowest responsive and responsible bidder has been

3-42  awarded the contract, during the term of the contract he does not supply

3-43  goods or services in accordance with the bid specifications, or if he

3-44  repudiates the contract, the governing body or its authorized

3-45  representative may reaward the contract to the next lowest responsive and

3-46  responsible bidder without requiring that new bids be submitted.

3-47  Reawarding the contract to the next lowest responsive and responsible

3-48  bidder is not a waiver of any liability of the initial bidder awarded the

3-49  contract.

4-1    4.  As used in this section:

4-2    (a) “Post-consumer waste” means a finished material which would

4-3  normally be disposed of as a solid waste having completed its life cycle as

4-4  a consumer item.

4-5    (b) “Recycled paper product” means all paper and wood-pulp products

4-6  containing in some combination at least 50 percent of its total weight:

4-7       (1) Post-consumer waste; and

4-8       (2) Secondary waste,

4-9  but does not include fibrous waste generated during the manufacturing

4-10  process such as fibers recovered from waste water or trimmings of paper

4-11  machine rolls, wood slabs, chips, sawdust or other wood residue from a

4-12  manufacturing process.

4-13    (c) “Secondary waste” means fragments of products or finished

4-14  products of a manufacturing process, which has converted a virgin resource

4-15  into a commodity of real economic value.

4-16    Sec. 5.  NRS 332.085 is hereby amended to read as follows:

4-17    332.085  In determining the responsibility of any bidder, the governing

4-18  body or its authorized representative shall consider the possession of and

4-19  limit on any required license and may consider the financial responsibility,

4-20  experience, adequacy of equipment , past performance and ability of the

4-21  bidder to [complete performance.] perform the contract.

4-22    Sec. 6.  NRS 332.095 is hereby amended to read as follows:

4-23    332.095  1.  No contract awarded may be assigned to any other person

4-24  without the consent of the governing body or its authorized representative.

4-25    2.  No contract awarded or any portion thereof may be assigned to any

4-26  person who was declared by the governing body or its authorized

4-27  representative not to be a responsible person to perform the particular

4-28  contract.

4-29    Sec. 7.  NRS 332.115 is hereby amended to read as follows:

4-30    332.115  1.  Contracts which by their nature are not adapted to award

4-31  by competitive bidding, including contracts for:

4-32    (a) Items which may only be contracted from a sole source;

4-33    (b) Professional services;

4-34    (c) Additions to and repairs and maintenance of equipment which may

4-35  be more efficiently added to, repaired or maintained by a certain person;

4-36    (d) Equipment which, by reason of the training of the personnel or of an

4-37  inventory of replacement parts maintained by the local government is

4-38  compatible with existing equipment;

4-39    (e) Perishable goods;

4-40    (f) Insurance;

4-41    (g) Hardware and associated peripheral equipment and devices for

4-42  computers;

4-43    (h) Software for computers;

4-44    (i) Books, library materials and subscriptions;

4-45    (j) Motor vehicle fuel purchased by a local law enforcement agency for

4-46  use in an undercover investigation;

4-47    (k) Motor vehicle fuel for use in a vehicle operated by a local law

4-48  enforcement agency or local fire department if such fuel is not available

5-1  within the vehicle’s assigned service area from a fueling station owned by

5-2  the State of Nevada or a local government;

5-3    (l) Purchases made with money in a store fund for prisoners in a jail or

5-4  local detention facility for the provision and maintenance of a canteen for

5-5  the prisoners;

5-6    (m) Supplies, materials or equipment that are available from contracts

5-7  with the General Services Administration or another governmental agency

5-8  in the regular course of its business; [and]

5-9    (n) Items for resale through a retail outlet operated in this state by a

5-10  local government or the State of Nevada[,] ;

5-11    (o) Goods or services purchased from organizations or agencies

5-12  whose primary purpose is the training and employment of handicapped

5-13  persons; and

5-14    (p) Energy,

5-15  are not subject to the requirements of this chapter for competitive bidding

5-16  as determined by the governing body or its authorized representative.

5-17    2.  The purchase of equipment for use by a local law enforcement

5-18  agency in the course of an undercover investigation is not subject to the

5-19  requirements of this chapter for competitive bidding if:

5-20    (a) The equipment is an electronic or mechanical device which by

5-21  design is intended to monitor and document in a clandestine manner

5-22  suspected criminal activity; [and] or

5-23    (b) Purchasing the equipment pursuant to such requirements would limit

5-24  or compromise the use of such equipment by an agency authorized to

5-25  conduct such investigations.

5-26    3.  The governing body of a hospital required to comply with the

5-27  provisions of this chapter, or its authorized representative, may purchase

5-28  goods commonly used by the hospital, under a contract [properly] awarded

5-29  pursuant to NRS 332.065, without additional competitive bidding even if at

5-30  the time the contract was awarded:

5-31    (a) The vendor supplying such goods to the person awarded the contract

5-32  was not identified as a supplier to be used by the person awarded the

5-33  contract; or

5-34    (b) The vendor was identified as a supplier but was not identified as the

5-35  supplier of such goods.

5-36  The governing body of the hospital shall make available for public

5-37  inspection each such contract and records related to those purchases.

5-38    4.  [Except in cases of emergency, at least 60 days before the expiration

5-39  of an existing contract for insurance in which the local government is the

5-40  insured, the governing body shall cause to be given, by advertising or in

5-41  another manner deemed adequate and desirable by the governing body,

5-42  notice of the date the contract for insurance expires.

5-43    5.] This section does not prohibit a governing body or its authorized

5-44  representative from advertising for or requesting bids.

5-45    Sec. 8.  NRS 332.146 is hereby amended to read as follows:

5-46    332.146  1.  Except as otherwise provided by law, if the [chief

5-47  administrative officer of the local government concurs with the] governing

5-48  body or its authorized representative determines that the supplies, materials

5-49  or equipment can be purchased at any public auction, closeout sale,

6-1  bankruptcy sale, sale of merchandise left after an exhibition, or other

6-2  similar sale at a reasonable savings over the cost of like merchandise and

6-3  below the market cost in the community, a contract or contracts may be let

6-4  or the purchase made without complying with the requirements of this

6-5  chapter for competitive bidding.

6-6    2.  The documentation for the purchase or acquisition must be

6-7  summarized for the next regularly scheduled meeting of the governing

6-8  body, together with written justification showing the savings involved.

6-9    Sec. 9.  NRS 332.155 is hereby amended to read as follows:

6-10    332.155  1.  No member of the governing body may be interested,

6-11  directly or indirectly, in any contract entered into by the governing body ,

6-12  [;] but the governing body may purchase supplies, not to exceed $300 in

6-13  the aggregate in any 1 calendar month from a member of such governing

6-14  body, when not to do so would be of great inconvenience due to a lack of

6-15  any other local source.

6-16    2.  An [authorized representative of a governing body] evaluator may

6-17  not be interested, directly or indirectly, in any contract awarded by such

6-18  governing body[.] or its authorized representative.

6-19    3.  A member of a governing body who furnishes supplies in the

6-20  manner permitted by subsection 1[,] may not vote on the allowance of the

6-21  claim for such supplies.

6-22    4.  A violation of this section is a misdemeanor and, in the case of a

6-23  member of a governing body, cause for removal from office.

6-24    Sec. 10.  NRS 332.161 is hereby amended to read as follows:

6-25    332.161  1.  Before a contract is awarded, a person who has bid on the

6-26  contract or an officer, employee, representative, agent or consultant of such

6-27  a person shall not:

6-28    (a) Make an offer or promise of future employment or business

6-29  opportunity to, or engage in a discussion of future employment or business

6-30  opportunity with, [a purchasing officer] an evaluator or member of the

6-31  governing body offering the contract;

6-32    (b) Offer, give or promise to offer or give money, a gratuity or any other

6-33  thing of value to [a purchasing officer] an evaluator or member of the

6-34  governing body offering the contract; or

6-35    (c) Solicit or obtain from an officer, employee or member of the

6-36  governing body offering the contract, any proprietary information

6-37  regarding the contract.

6-38    2.  A person who violates any of the provisions of subsection 1 is guilty

6-39  of a gross misdemeanor and shall be punished by imprisonment in the

6-40  county jail for not more than 1 year, or by a fine of not less than $2,000 nor

6-41  more than $50,000, or by both fine and imprisonment.

6-42    Sec. 11.  NRS 332.165 is hereby amended to read as follows:

6-43    332.165  1.  Any agreement or collusion among bidders or prospective

6-44  bidders in restraint of freedom of competition by agreement to bid a fixed

6-45  price, or otherwise, shall render the bids of such bidders void.

6-46    2.  Advance disclosures of any information to any particular bidder

6-47  which would give that particular bidder any advantage over any other

6-48  interested bidder in advance of the opening of bids, whether in response to

6-49  advertising or an informal request for bids, made or permitted by a member

7-1  of the governing body or an employee or representative thereof, shall

7-2  operate to void all [proposals of] bids received in response to that

7-3  particular [bid solicitation or request.] request for bids.

7-4    Sec. 12.  NRS 332.175 is hereby amended to read as follows:

7-5    332.175  [When purchasing personal property, the] A governing body

7-6  or its authorized representative may solicit and accept [advantageous]

7-7  trade-in allowances for personal property of the public entity which has

7-8  been determined by the governing body or its authorized representative to

7-9  be no longer required for public use[, and may award any bid to the bidder

7-10  submitting the lowest net bid after deduction of the trade-in allowance.] in

7-11  a manner that best serves the interests of the local government.

7-12    Sec. 13.  NRS 332.185 is hereby amended to read as follows:

7-13    332.185  1.  Except as otherwise provided in subsection 2 , NRS

7-14  244.1505 and NRS 334.070, all sales [or leases] of personal property of the

7-15  local government must be made, as nearly as possible, under the same

7-16  conditions and limitations as required by this chapter in the purchase of

7-17  personal property. The governing body or its authorized representative may

7-18  [sell any such] dispose of personal property of the local government by

7-19  any manner, including, without limitation, at public auction , if [it] the

7-20  governing body or its authorized representative determines that the

7-21  property is no longer required for public use and deems such [a sale] action

7-22  desirable and in the best interests of the local government.

7-23    2.  The board of trustees of a school district may donate surplus

7-24  personal property of the school district to a charter school that is located

7-25  within the school district without regard to:

7-26    (a) The provisions of this chapter; or

7-27    (b) Any statute, regulation, ordinance or resolution that requires:

7-28      (1) The posting of notice or public advertising.

7-29      (2) The inviting or receiving of competitive bids.

7-30      (3) The selling or leasing of personal property by contract or at a

7-31  public auction.

7-32    3.  The provisions of this chapter do not apply to the purchase, sale,

7-33  lease or transfer of real property by the governing body.

7-34    Sec. 14.  NRS 332.195 is hereby amended to read as follows:

7-35    332.195  1.  [Local governments] A governing body or its authorized

7-36  representative and the State of Nevada may join or use the contracts of

7-37  other local governments within this state with the authorization of the

7-38  contracting vendor. The originally contracting local government is not

7-39  liable for the obligations of the local government which joins or uses the

7-40  contract.

7-41    2.  [Local governments] A governing body or its authorized

7-42  representative may join or use the contracts of the State of Nevada with the

7-43  authorization of the contracting vendor. The State of Nevada is not liable

7-44  for the obligations of the local government which joins or uses the contract.

7-45    Sec. 15.  Chapter 333 of NRS is hereby amended by adding thereto a

7-46  new section to read as follows:

7-47    1.  The chief may use on-line bidding to receive bids in response to a

7-48  request for proposals.

8-1    2.  A request for proposals for which bids may be submitted pursuant

8-2  to subsection 1 must designate a date and time at which bids may be

8-3  submitted and may designate a date and time after which bids will no

8-4  longer be received.

8-5    3.  The chief may require bidders to:

8-6    (a) Register before the date and time at which bids may be submitted;

8-7  and

8-8    (b) Agree to terms, conditions or requirements of the request for

8-9  proposals to facilitate on-line bidding.

8-10    4.  The procedures established by the chief for the purposes of

8-11  conducting on-line bidding must not conflict with the provisions of this

8-12  chapter.

8-13    5.  As used in this section, “on-line bidding” means a process by

8-14  which bidders submit bids for a contract on a secure website on the

8-15  Internet or its successor, if any, which is established and maintained for

8-16  that purpose.

8-17    Sec. 16.  NRS 333.330 is hereby amended to read as follows:

8-18    333.330  1.  All bids on more than one item on which bids are called

8-19  for by the same notice must be itemized and give a price for each item.

8-20    2.  All bids must:

8-21    (a) [Be] Except as otherwise provided in section 15 of this act, be in

8-22  writing and signed.

8-23    (b) Be sealed or, if the bid is submitted electronically, secured by an

8-24  electronic equivalent of a seal, as approved by the purchasing division.

8-25    (c) Be opened and read publicly by the chief or his designated agent as

8-26  they are opened.

8-27    Sec. 17.  NRS 354.770 is hereby amended to read as follows:

8-28    354.770  1.  A local government may enter into contracts with issuers

8-29  of credit cards or debit cards , or operators of systems that provide for the

8-30  electronic transfer of money to provide for the acceptance of credit cards ,

8-31  [or] debit cards or electronic transfers of money by the local government:

8-32    (a) For the payment of money owed to the local government for taxes,

8-33  interest, penalties or any other obligation; or

8-34    (b) In payment for goods or services.

8-35    2.  If the issuer or operator charges the local government a fee for each

8-36  use of a credit card , [or] debit card[, a contract entered into pursuant to

8-37  subsection 1 must include a provision that requires the local government to

8-38  pay the fee charged by the issuer for the use of the credit card or debit card

8-39    3.  The payment of fees charged by the issuer for each use of a credit

8-40  card or debit card must be treated in the same manner as any other

8-41  administrative cost of the local government.

8-42    4.] or electronic transfer of money, the local government may require

8-43  the cardholder or the person requesting the electronic transfer of money

8-44  to pay a fee, which must not exceed the amount charged to the local

8-45  government by the issuer or operator.

8-46    3.  As used in this section:

8-47    (a) “Cardholder” means the person or organization named on the face of

8-48  a credit card or debit card to whom or for whose benefit the credit card or

8-49  debit card is issued by an issuer.

9-1    (b) “Credit card” means any instrument or device, whether known as a

9-2  credit card or credit plate, or by any other name, issued with or without a

9-3  fee by an issuer for the use of the cardholder in obtaining money, property,

9-4  goods, services or anything else of value on credit.

9-5    (c) “Debit card” means any instrument or device, whether known as a

9-6  debit card or by any other name, issued with or without a fee by an issuer

9-7  for the use of the cardholder in depositing, obtaining or transferring funds.

9-8    (d) “Electronic transfer of money” has the meaning ascribed to it in

9-9  NRS 463.01473.

9-10    (e) “Issuer” means a business organization, financial institution or

9-11  authorized agent of a business organization or financial institution that

9-12  issues a credit card or debit card.

9-13    [(e)] (f) “Local government” has the meaning ascribed to it in NRS

9-14  354.474, except that the term does not include a court that has entered into

9-15  a contract pursuant to NRS 1.113.

9-16    Sec. 18.  This bill becomes effective on July 1, 2001.

 

9-17  H