Assembly Bill No. 649–Committee on Government Affairs
CHAPTER..........
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:
Section 1. Chapter 332 of NRS is hereby amended by adding thereto a
new section to read as follows:
1. A governing body or its authorized representative may use on-line
bidding to receive bids submitted in response to a request for bids. The
governing body shall not use on-line bidding as the exclusive means of
receiving bids for the request for bids.
2. A request for bids for which bids may be submitted pursuant to
subsection 1 must designate a date and time at which bids may be
submitted and may designate a date and time after which bids will no
longer be received.
3. A governing body or its authorized representative may require
bidders to:
(a) Register before the date and time at which bids may be submitted;
and
(b) Agree to terms, conditions or requirements of the request for bids
to facilitate on-line bidding.
4. The procedures established by a governing body or its authorized
representative for the purposes of conducting on-line bidding must not
conflict with the provisions of this chapter.
5. As used in this section, “on-line bidding” means a process by
which bidders submit bids for a contract on a secure website on the
Internet or its successor, if any, which is established and maintained for
that purpose.
Sec. 2. NRS 332.025 is hereby amended to read as follows:
332.025 As used in this chapter, unless the context otherwise requires:
1. “Authorized representative” means [the] a person designated by the
governing body to be responsible for the development, award and proper
administration of all purchases and contracts[, or either of them, under] for
a local government or a department, division, agency, board or unit of a
local government made pursuant to this chapter.
2. “Chief administrative officer” means the person directly responsible
to the governing body for the administration of that particular entity.
3. “Evaluator” means an authorized representative, officer,
employee, representative, agent, consultant or member of a governing
body who has participated in:
(a) The evaluation of bids;
(b) Negotiations concerning purchasing by a local government; or
(c) The review or approval of the award, modification or extension of
a contract.
4. “Governing body” means the board, council, commission or other
body in which the general legislative and fiscal powers of the local
government are vested.
[4.] 5. “Proprietary information” means:
(a) Any trade secret or confidential business information that is
contained in a bid submitted to a governing body or its authorized
representative on a particular contract; or
(b) Any other trade secret or confidential business information
submitted to a governing body or its authorized representative by a bidder
and designated as proprietary by the governing body or its authorized
representative.
As used in this subsection, “confidential business information” means any
information relating to the amount or source of any income, profits, losses
or expenditures of a person, including data relating to cost , [or] price , or
the customers of a bidder which is submitted in support of a bid. The term
does not include the amount of a bid submitted to a governing body or its
authorized representative.
[5. “Purchasing officer” means an authorized representative, officer,
employee, representative, agent, consultant or member of a governing body
who has participated in:
(a) The evaluation of bids;
(b) Negotiations concerning purchasing by a local government; or
(c) The review or approval of the award, modification or extension of a
contract.]
6. “Trade secret” has the meaning ascribed to it in NRS 600A.030.
Sec. 3. NRS 332.061 is hereby amended to read as follows:
332.061 1. Except as otherwise provided in this subsection , [2,]
proprietary information regarding a trade secret does not constitute public
information and is confidential.
[2.] A person shall not disclose proprietary information regarding a
trade secret unless the disclosure is made for the purpose of a civil,
administrative or criminal investigation or proceeding, and the person
receiving the information represents in writing that protections exist under
applicable law to preserve the integrity, confidentiality and security of the
information.
2. A bid which contains a provision that requires negotiation or
evaluation by the governing body or an evaluator may not be disclosed
until the bid is recommended for the award of a contract.
Sec. 4. NRS 332.065 is hereby amended to read as follows:
332.065 1. If a governing body or its authorized representative has
advertised for or requested bids in letting a contract, the [award] governing
body or its authorized representative must, except as otherwise provided
in subsection 2, [be made] award the contract to the lowest responsive and
responsible bidder. The lowest responsive and responsible bidder must be
judged on the basis of price, conformance to specifications, [bidders’]
qualifications, including [the bidders’] , without limitation, past
performance , [in such matters,] quality and utility of services, supplies,
materials or equipment offered and [their] adaptability to the required
purpose and [in] the best [interest] interests of the public . [each of the
factors being considered.]
2. The governing body[:] or its authorized representative:
(a) Shall give preference to recycled products if:
(1) The product meets the applicable standards;
(2) The product can be substituted for a comparable nonrecycled
product; and
(3) The product costs no more than a comparable nonrecycled
product.
(b) May give preference to recycled products if:
(1) The product meets the applicable standards;
(2) The product can be substituted for a comparable nonrecycled
product; and
(3) The product costs no more than 5 percent more than a comparable
nonrecycled product.
(c) May purchase recycled paper products if the specific recycled paper
product is:
(1) Available at a price which is not more than 10 percent higher than
that of paper products made from virgin material;
(2) Of adequate quality; and
(3) Available to the purchaser within a reasonable period.
3. If after the lowest responsive and responsible bidder has been
awarded the contract, during the term of the contract he does not supply
goods or services in accordance with the bid specifications, or if he
repudiates the contract, the governing body or its authorized
representative may reaward the contract to the next lowest responsive and
responsible bidder without requiring that new bids be submitted.
Reawarding the contract to the next lowest responsive and responsible
bidder is not a waiver of any liability of the initial bidder awarded the
contract.
4. As used in this section:
(a) “Post-consumer waste” means a finished material which would
normally be disposed of as a solid waste having completed its life cycle as
a consumer item.
(b) “Recycled paper product” means all paper and wood-pulp products
containing in some combination at least 50 percent of its total weight:
(1) Post-consumer waste; and
(2) Secondary waste,
but does not include fibrous waste generated during the manufacturing
process such as fibers recovered from waste water or trimmings of paper
machine rolls, wood slabs, chips, sawdust or other wood residue from a
manufacturing process.
(c) “Secondary waste” means fragments of products or finished
products of a manufacturing process, which has converted a virgin resource
into a commodity of real economic value.
Sec. 5. NRS 332.085 is hereby amended to read as follows:
332.085 In determining the responsibility of any bidder, the governing
body or its authorized representative shall consider the possession of and
limit on any required license and may consider the financial responsibility,
experience, adequacy of equipment , past performance and ability of the
bidder to [complete performance.] perform the contract.
Sec. 6. NRS 332.095 is hereby amended to read as follows:
332.095 1. No contract awarded may be assigned to any other person
without the consent of the governing body or its authorized representative.
2. No contract awarded or any portion thereof may be assigned to any
person who was declared by the governing body or its authorized
representative not to be a responsible person to perform the particular
contract.
Sec. 7. NRS 332.115 is hereby amended to read as follows:
332.115 1. Contracts which by their nature are not adapted to award
by competitive bidding, including contracts for:
(a) Items which may only be contracted from a sole source;
(b) Professional services;
(c) Additions to and repairs and maintenance of equipment which may
be more efficiently added to, repaired or maintained by a certain person;
(d) Equipment which, by reason of the training of the personnel or of an
inventory of replacement parts maintained by the local government is
compatible with existing equipment;
(e) Perishable goods;
(f) Insurance;
(g) Hardware and associated peripheral equipment and devices for
computers;
(h) Software for computers;
(i) Books, library materials and subscriptions;
(j) Motor vehicle fuel purchased by a local law enforcement agency for
use in an undercover investigation;
(k) Motor vehicle fuel for use in a vehicle operated by a local law
enforcement agency or local fire department if such fuel is not available
within the vehicle’s assigned service area from a fueling station owned by
the State of Nevada or a local government;
(l) Purchases made with money in a store fund for prisoners in a jail or
local detention facility for the provision and maintenance of a canteen for
the prisoners;
(m) Supplies, materials or equipment that are available from contracts
with the General Services Administration or another governmental agency
in the regular course of its business; [and]
(n) Items for resale through a retail outlet operated in this state by a
local government or the State of Nevada[,] ; and
(o) Goods or services purchased from organizations or agencies
whose primary purpose is the training and employment of handicapped
persons,
are not subject to the requirements of this chapter for competitive bidding
as determined by the governing body or its authorized representative.
2. The purchase of equipment for use by a local law enforcement
agency in the course of an undercover investigation is not subject to the
requirements of this chapter for competitive bidding if:
(a) The equipment is an electronic or mechanical device which by
design is intended to monitor and document in a clandestine manner
suspected criminal activity; [and] or
(b) Purchasing the equipment pursuant to such requirements would limit
or compromise the use of such equipment by an agency authorized to
conduct such investigations.
3. The governing body of a hospital required to comply with the
provisions of this chapter, or its authorized representative, may purchase
goods commonly used by the hospital, under a contract [properly] awarded
pursuant to NRS 332.065, without additional competitive bidding even if at
the time the contract was awarded:
(a) The vendor supplying such goods to the person awarded the contract
was not identified as a supplier to be used by the person awarded the
contract; or
(b) The vendor was identified as a supplier but was not identified as the
supplier of such goods.
The governing body of the hospital shall make available for public
inspection each such contract and records related to those purchases.
4. [Except in cases of emergency, at least 60 days before the expiration
of an existing contract for insurance in which the local government is the
insured, the governing body shall cause to be given, by advertising or in
another manner deemed adequate and desirable by the governing body,
notice of the date the contract for insurance expires.
5.] This section does not prohibit a governing body or its authorized
representative from advertising for or requesting bids.
Sec. 8. NRS 332.146 is hereby amended to read as follows:
332.146 1. Except as otherwise provided by law, if the [chief
administrative officer of the local government concurs with the] governing
body or its authorized representative determines that the supplies, materials
or equipment can be purchased at any public auction, closeout sale,
bankruptcy sale, sale of merchandise left after an exhibition, or other
similar sale at a reasonable savings over the cost of like merchandise and
below the market cost in the community, a contract or contracts may be let
or the purchase made without complying with the requirements of this
chapter for competitive bidding.
2. The documentation for the purchase or acquisition must be
summarized for the next regularly scheduled meeting of the governing
body, together with written justification showing the savings involved.
Sec. 9. NRS 332.155 is hereby amended to read as follows:
332.155 1. No member of the governing body may be interested,
directly or indirectly, in any contract entered into by the governing body ,
[;] but the governing body may purchase supplies, not to exceed $300 in
the aggregate in any 1 calendar month from a member of such governing
body, when not to do so would be of great inconvenience due to a lack of
any other local source.
2. An [authorized representative of a governing body] evaluator may
not be interested, directly or indirectly, in any contract awarded by such
governing body[.] or its authorized representative.
3. A member of a governing body who furnishes supplies in the
manner permitted by subsection 1[,] may not vote on the allowance of the
claim for such supplies.
4. A violation of this section is a misdemeanor and, in the case of a
member of a governing body, cause for removal from office.
Sec. 10. NRS 332.161 is hereby amended to read as follows:
332.161 1. Before a contract is awarded, a person who has bid on the
contract or an officer, employee, representative, agent or consultant of such
a person shall not:
(a) Make an offer or promise of future employment or business
opportunity to, or engage in a discussion of future employment or business
opportunity with, [a purchasing officer] an evaluator or member of the
governing body offering the contract;
(b) Offer, give or promise to offer or give money, a gratuity or any other
thing of value to [a purchasing officer] an evaluator or member of the
governing body offering the contract; or
(c) Solicit or obtain from an officer, employee or member of the
governing body offering the contract, any proprietary information
regarding the contract.
2. A person who violates any of the provisions of subsection 1 is guilty
of a gross misdemeanor and shall be punished by imprisonment in the
county jail for not more than 1 year, or by a fine of not less than $2,000 nor
more than $50,000, or by both fine and imprisonment.
Sec. 11. NRS 332.165 is hereby amended to read as follows:
332.165 1. Any agreement or collusion among bidders or prospective
bidders in restraint of freedom of competition by agreement to bid a fixed
price, or otherwise, shall render the bids of such bidders void.
2. Advance disclosures of any information to any particular bidder
which would give that particular bidder any advantage over any other
interested bidder in advance of the opening of bids, whether in response to
advertising or an informal request for bids, made or permitted by a member
of the governing body or an employee or representative thereof, shall
operate to void all [proposals of] bids received in response to that
particular [bid solicitation or request.] request for bids.
Sec. 12. NRS 332.175 is hereby amended to read as follows:
332.175 [When purchasing personal property, the] A governing body
or its authorized representative may solicit and accept [advantageous]
trade-in allowances for personal property of the public entity which has
been determined by the governing body or its authorized representative to
be no longer required for public use[, and may award any bid to the bidder
submitting the lowest net bid after deduction of the trade-in allowance.] in
any manner authorized by law.
Sec. 13. NRS 332.185 is hereby amended to read as follows:
332.185 1. Except as otherwise provided in subsection 2 , NRS
244.1505 and NRS 334.070, all sales [or leases] of personal property of the
local government must be made, as nearly as possible, under the same
conditions and limitations as required by this chapter in the purchase of
personal property. The governing body or its authorized representative may
[sell any such] dispose of personal property of the local government by
any manner, including, without limitation, at public auction , if [it] the
governing body or its authorized representative determines that the
property is no longer required for public use and deems such [a sale] action
desirable and in the best interests of the local government.
2. The board of trustees of a school district may donate surplus
personal property of the school district to a charter school that is located
within the school district without regard to:
(a) The provisions of this chapter; or
(b) Any statute, regulation, ordinance or resolution that requires:
(1) The posting of notice or public advertising.
(2) The inviting or receiving of competitive bids.
(3) The selling or leasing of personal property by contract or at a
public auction.
3. The provisions of this chapter do not apply to the purchase, sale,
lease or transfer of real property by the governing body.
Sec. 14. NRS 332.195 is hereby amended to read as follows:
332.195 1. [Local governments] A governing body or its authorized
representative and the State of Nevada may join or use the contracts of
other local governments within this state with the authorization of the
contracting vendor. The originally contracting local government is not
liable for the obligations of the local government which joins or uses the
contract.
2. [Local governments] A governing body or its authorized
representative may join or use the contracts of the State of Nevada with the
authorization of the contracting vendor. The State of Nevada is not liable
for the obligations of the local government which joins or uses the contract.
Sec. 15. Chapter 333 of NRS is hereby amended by adding thereto a
new section to read as follows:
1. The chief may use on-line bidding to receive proposals or bids in
response to a request for proposals or invitation to bid.
2. A request for proposals or invitation to bid for which proposals or
bids may be submitted pursuant to subsection 1 must designate a date
and time at which proposals or bids may be submitted and may designate
a date and time after which proposals or bids will no longer be received.
3. The chief may require bidders to:
(a) Register before the date and time at which proposals or bids may
be submitted; and
(b) Agree to terms, conditions or requirements of the request for
proposals or invitation to bid to facilitate on-line bidding.
4. The procedures established by the chief for the purposes of
conducting on-line bidding must not conflict with the provisions of this
chapter.
5. As used in this section, “on-line bidding” means a process by
which bidders submit proposals or bids for a contract on a secure website
on the Internet or its successor, if any, which is established and
maintained for that purpose.
Sec. 16. NRS 333.330 is hereby amended to read as follows:
333.330 1. All bids on more than one item on which bids are called
for by the same notice must be itemized and give a price for each item.
2. All bids must:
(a) [Be] Except as otherwise provided in section 15 of this act, be in
writing and signed.
(b) Be sealed or, if the bid is submitted electronically, secured by an
electronic equivalent of a seal, as approved by the purchasing division.
(c) Be opened and read publicly by the chief or his designated agent as
they are opened.
Sec. 16.3 NRS 333.480 is hereby amended to read as follows:
333.480 The chief may purchase or acquire on behalf of the State of
Nevada, and all officers, departments, institutions, boards, commissions,
schools and other agencies in the executive department of the state
government, volunteer fire departments, local governments as defined in
NRS 354.474, conservation districts or irrigation districts of the State of
Nevada, any supplies, materials or equipment of any kind required or
deemed advisable for the state officers, departments, institutions, boards,
commissions, schools, volunteer fire departments and other agencies or
local governments as defined in NRS 354.474, conservation districts or
irrigation districts that may be available [from the General Services
Administration or any other] pursuant to an agreement with a vendor who
has entered into an agreement with the General Services Administration
or another governmental agency dealing in supplies, materials, equipment
or donable surplus material [.] if :
1. The prices for the supplies, materials or equipment negotiated in
the agreement that the chief enters into with the vendor are substantially
similar to the prices for those supplies, materials or equipment that the
vendor had negotiated with the General Services Administration or other
governmental agency; and
2. The chief determines that such an agreement would be in the best
interests of the state.
Sec. 16.7. NRS 353.1465 is hereby amended to read as follows:
353.1465 1. Upon approval of the state board of finance, a state
agency may enter into contracts with issuers of credit cards or debit cards
or operators of systems that provide for the electronic transfer of money
to provide for the acceptance of credit cards , [or] debit cards or electronic
transfers of money by the agency:
(a) For the payment of money owed to the agency for taxes, interest,
penalties or any other obligation; or
(b) In payment for goods or services.
2. Before a state agency may enter into a contract pursuant to
subsection 1, the agency must submit the proposed contract to the state
treasurer for his review and transmittal to the state board of finance.
3. [If] Except as otherwise provided in subsection 4, if the issuer or
operator charges the state agency a fee for each use of a credit card or
debit card [,a contract entered into pursuant to subsection 1 must include a
provision that requires the state agency to pay the fee charged by the issuer
for the use of the credit card or debit card.
4. Except as otherwise provided in subsection 5, the payment of fees
charged by the issuer for each use of a credit card or debit card must be
treated in the same manner as any other administrative cost of the agency.
5.] or for each electronic transfer of money, the state agency may
require the cardholder or the person requesting the electronic transfer of
money to pay a fee, which must not exceed the amount charged to the
state agency by the issuer or operator.
4. A state agency that is required to pay a fee charged by the issuer or
operator for the use of a credit card or debit card or for an electronic
transfer of money may, pursuant to NRS 353.148, file a claim with the
director of the department of administration for reimbursement of the fees
paid to the issuer or operator during the immediately preceding quarter.
[6.] 5. As used in this section:
(a) “Cardholder” means the person or organization named on the face of
a credit card or debit card to whom or for whose benefit the credit card or
debit card is issued by an issuer.
(b) “Credit card” means any instrument or device, whether known as a
credit card or credit plate, or by any other name, issued with or without a
fee by an issuer for the use of the cardholder in obtaining money, property,
goods, services or anything else of value on credit.
(c) “Debit card” means any instrument or device, whether known as a
debit card or by any other name, issued with or without a fee by an issuer
for the use of the cardholder in depositing, obtaining or transferring funds.
(d) “Electronic transfer of money” has the meaning ascribed to it in
NRS 463.01473.
(e) “Issuer” means a business organization, financial institution or
authorized agent of a business organization or financial institution that
issues a credit card or debit card.
Sec. 17. NRS 354.770 is hereby amended to read as follows:
354.770 1. A local government may enter into contracts with issuers
of credit cards or debit cards , or operators of systems that provide for the
electronic transfer of money to provide for the acceptance of credit cards ,
[or] debit cards or electronic transfers of money by the local government:
(a) For the payment of money owed to the local government for taxes,
interest, penalties or any other obligation; or
(b) In payment for goods or services.
2. If the issuer or operator charges the local government a fee for each
use of a credit card or debit card[, a contract entered into pursuant to
subsection 1 must include a provision that requires the local government to
pay the fee charged by the issuer for the use of the credit card or debit card
3. The payment of fees charged by the issuer for each use of a credit
card or debit card must be treated in the same manner as any other
administrative cost of the local government.
4.] or for each electronic transfer of money, the local government may
require the cardholder or the person requesting the electronic transfer of
money to pay a fee, which must not exceed the amount charged to the
local government by the issuer or operator.
3. As used in this section:
(a) “Cardholder” means the person or organization named on the face of
a credit card or debit card to whom or for whose benefit the credit card or
debit card is issued by an issuer.
(b) “Credit card” means any instrument or device, whether known as a
credit card or credit plate, or by any other name, issued with or without a
fee by an issuer for the use of the cardholder in obtaining money, property,
goods, services or anything else of value on credit.
(c) “Debit card” means any instrument or device, whether known as a
debit card or by any other name, issued with or without a fee by an issuer
for the use of the cardholder in depositing, obtaining or transferring funds.
(d) “Electronic transfer of money” has the meaning ascribed to it in
NRS 463.01473.
(e) “Issuer” means a business organization, financial institution or
authorized agent of a business organization or financial institution that
issues a credit card or debit card.
[(e)] (f) “Local government” has the meaning ascribed to it in NRS
354.474, except that the term does not include a court that has entered into
a contract pursuant to NRS 1.113.
Sec. 18. This bill becomes effective on July 1, 2001.
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