SB 77 — Revises provisions governing purchasing by a county hospital and a hospital in a county hospital district. (BDR 40-488)

(ReprintedSenate withBill amendmentsNo. adopted on May 24, 2019) FIRST REPRINT S.B.

7777–Committee SENATEon BILLHealth NOand .Human Services CHAPTER..........

77–COMMITTEE ON H EALTH AND H UMAN SERVICES (ON BEHALF OF CLARK C OUNTY ) PREFILED N OVEMBER 20, 2018 ____________ Referred to Committee on Health and Human Services SUMMARY—Revises provisions governing purchasing by a county hospital and a hospital in a county hospital district.

(BDR 40-488) 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.

Existingdistrict lawto authorizespurchase asupplies, countymaterials hospitaland orequipment athrough hospitalthe inpurchasingal a county hospital contracts of the company that manages the hospital, if applicable, or through a purchasing group in which the hospital is a member without complying with the competitive bidding requirements in the Local Government Purchasing Act if:

(1) the prices for the supplies, materials or equipment were obtained through a process board of trustees of the hospital district, as applicable, determines that the purchase price is lower than the lowest price that could be attained through the competitive bidding;bidding process set forth in the Local Government Purchasing Act.

and(NRS (2)450.191, the450.525, governing450.530, body450.720, of450.725, the450.730) countyWith hospitalcertain orexceptions, thethis boardbill ofincludes trusteesservices ofin the hospitaltypes district,of aspurchases applicable,that determinescontracts thatof the purchasecompany pricethat isruns lowerthe thanhospital, theif lowestapplicable, priceor thatthrough couldachasing bepurchasing attainedgroup throughwithout complying with the competitive 450.525,bidding 450.530,requirements 450.720,in 450.725,the 450.730)nmentLocal Government Purchasing Act.

(NRSEXPLANATION 450.191,– WithMatter certain exceptions, this bill includes services in thebolded typesitalics of purchases that a county hospital or district hospital is authorizednew; to make through the purchasing contracts of the company that runs the hospital, if applicable, or through a purchasing group without complying with the competitive bidding requirements in the Local Government Purchasing Act.

*SB77_R1*matter –between 2brackets –[omitted THEmaterial] SENATEis ANDmaterial ASSEMBLY,to DObe ENACTomitted. AS FOLLOWS:D IN Section 1.

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

Section 1.

and - 80th Session (2019) – 2 – (b) [That] Except as otherwise provided in this paragraph, that the hospital may, in accordance with the requirements of NRS 450.530, purchase supplies, materials , [and] equipment and services through the purchasing contracts of the company which manages the hospital, or through a purchasing group, without complying with the requirements for competitive bidding set forth in chapter 332 of NRS.

(1) The hiring of temporary or permanent staff through a vendorcare.r or employment agency to perform any medical or nursing care.(2) Any work for which a contractor’s license issued pursuant to chapter 624 of NRS is required.

(2) Any work for which a contractor’s license issued pursuant to chapter 624 of NRS is required.

[A] Except as otherwise provided in this subsection, a county hospital that becomes a member of a purchasing group may, in accordance with the requirements of NRS 450.530, purchase *SB77_R1* – 3 – supplies, materials , [and] equipment and services through the purchasing group without complying with the requirements for competitivehospital biddingmay setnot forthpurchase inservices chapteror 332otherwise ofenter NRS.into an agreement pursuant to this subsection for:

A county hospital may not purchase services or otherwise enter into an agreement pursuant to this subsection for:

- 80th Session (2019) – 3 – Sec.

1.including, without limitation, the prices available to the company or purchasing group, are summarized in writing and, together with a sworn statement by an officer or agent of the company or purchasing group that the prices were obtained by the company or purchasing group through a process of competitive bidding, are presented to the governing body of the county hospital at its next regularly scheduled meeting;

The documents pertaining to the proposed purchase, including, without limitation, the prices available to the company or purchasing group, are summarized in writing and, together with a sworn statement by an officer or agent of the company or purchasing group that the prices were obtained by the company or purchasing group through a process of competitive bidding, are presented to the governing body of the county hospital at its next regularly scheduled meeting;

*SB77_R1* – 4 – (a) That the chief executive officer of the hospital must be an employeeemp(b) [That] Except as otherwise provided in this paragraph, that the hospital may, in accordance with the requirements of NRS 450.730, purchase supplies, materials , [and] equipment and services through the purchasing contracts of the company which manages the hospital;hospital, or through a purchasing group, without complying with the requirements for competitive bidding set forth in chapter 332 of NRS.

and (b) [That] Except as otherwise provided in this paragraph, that the hospital may, in accordance with the requirements of NRS 450.730, purchase supplies, materials , [and] equipment and services through the purchasing contracts of the company which manages the hospital, or through a purchasing group, without complying with the requirements for competitive bidding set forth in chapter 332 of NRS.

- 80th Session (2019) – 4 –  The provisions of this paragraph do not prohibit the hospital from purchasing specialty equipment which requires installation services that must be performed by a person who holds a contractor’s license issued pursuant to chapter 624 of NRS and which are specific to a particular project and are not commonly used in public works projects.

A district hospital may, with the approval of the board of trustees, become a member of a purchasing group for the purposeservices ofused purchasingby supplies,the materialsdistrict hospital.ls , [and] equipment and services2. used by the district hospital.

2.

 The provisions of this subsection do not prohibit a district hospital from purchasing specialty equipment which requires installation services that must be performed by a person who holds a contractor’s license issued pursuant to chapter 624 of NRS and which are specific to a particular project and are not commonly useduseSec. in public works projects.

*SB77_R1*7.bliNRS –450.730 5is –hereby Sec.amended to read as follows:

7.

NRS 450.730 is hereby amended to read as follows:

The documents pertaining to the proposed purchase, including, without limitation, the prices available to the company or purchasing group, are summarized in writing and, together with a sworn statement by an officer or agent of the company or - 80th Session (2019) – 5 – purchasing group that the prices were obtained by the company or purchasing group through a process of competitive bidding, are presented to the board of trustees at its next regularly scheduled meeting;

and 2.statement, finds that the proposed purchase will be made at a lower price than the lowest price reasonably obtainable by the hospital through competitive bidding pursuant to chapter 332 of NRS or available to the hospital pursuant to NRS 333.470 and approves the proposed purchase.

The board of trustees, after reviewing the summary and statement, finds that the proposed purchase will be made at a lower price than the lowest price reasonably obtainable by the hospital through competitive bidding pursuant to chapter 332 of NRS or available to the hospital pursuant to NRS 333.470 and approves the proposed purchase.

*SB77_R1*~~~~~ 19 - 80th Session (2019)