S.B. 71 - *SB71* SENATE BILL NO. 71–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF THE NEVADA COMMISSION ON MINORITY AFFAIRS) PREFILED NOVEMBER 20, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to purchasing. (BDR 27-366) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. CONTAINS UNFUNDED MANDATE (§§ 10, 11) (NOT REQUESTED BY AFFECTED LOCAL GOVERNMENT) ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to purchasing; requiring certain public entities to post certain information relating to purchasing on their Internet websites; creating the Nevada Diverse Business Advisory Council; prescribing the powers and duties of the Council; abolishing the Regional Business Development Advisory Council for Clark County; and providing other matters properly relating thereto. Legislative Counsel’s Digest: With certain exceptions, the Local Government Purchasing Act governs the 1 purchasing of supplies, materials, equipment and services by local governments. 2 (Chapter 332 of NRS) The State Purchasing Act, which is administered by the 3 Purchasing Division of the Department of Administration, governs the purchasing 4 of supplies, materials, equipment and services by agencies of the Executive 5 Department of the State Government, with certain exceptions. (Chapter 333 of 6 NRS) Sections 1 and 2 of this bill require the governing body of a local 7 government and the Administrator of the Purchasing Division, respectively, to post 8 prominently on their Internet websites: (1) information relating to the types of 9 supplies, materials, equipment and services which are purchased by the local 10 government or for state agencies, as applicable; and (2) procedures by which a 11 person may request notice of solicitations or other methods of obtaining contracts 12 for such purchases. 13 Existing law creates the Regional Business Development Advisory Council for 14 Clark County and requires the Council to propose and implement policies, 15 – 2 – - *SB71* programs and procedures to encourage and promote the use of local businesses 16 owned and operated by disadvantaged persons, particularly in the area of 17 contracting and procurement by public agencies in Clark County. (Sections 15 and 18 20 of chapter 7, Statutes of Nevada 2003, 20th Special Session, at pages 268 and 19 269) Section 15 of this bill abolishes the Regional Business Development Advisory 20 Council for Clark County, and sections 4-11 of this bill create the Nevada Diverse 21 Business Advisory Council, which has similar duties but a broader membership 22 than the former Council for Clark County. Section 8 prescribes the voting 23 membership of the new Council, including: (1) a representative of each county 24 whose population is 100,000 or more (currently Clark and Washoe Counties); (2) 25 representatives from within each such county of cities whose population is 7,000 or 26 more (currently Boulder City, Henderson, Las Vegas, Mesquite, North Las Vegas, 27 Reno and Sparks), school districts, county fair and recreation boards, law 28 enforcement agencies, library districts, health districts, aviation agencies, regional 29 transportation commissions and water, wastewater and flood control agencies; (3) 30 representatives of associations of counties and cities; (4) representatives of 31 institutions of the Nevada System of Higher Education; and (5) the Administrator 32 of the Purchasing Division. Section 8 also authorizes the participation of other 33 public and private entities as nonvoting members. Sections 9 and 10 provide for 34 the officers, meetings and expenses of the new Council. Section 11: (1) sets forth 35 the duties of the new Council, including recommending policies, programs and 36 procedures in the area of purchasing by public agencies to encourage and promote 37 the use of businesses primarily owned and operated by a person who is a member 38 of a racial or ethnic minority, female or a veteran or has a physical disability, or 39 who identifies as LGBTQ; and (2) requires the submission of certain biennial 40 reports by member entities and the Council. Section 12 of this bill makes a 41 conforming change as a result of the abolishment of the Regional Business 42 Development Advisory Council for Clark County and the creation of the Nevada 43 Diverse Business Advisory Council. 44 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 1 thereto a new section to read as follows: 2 Each governing body shall post prominently on its Internet 3 website: 4 1. Information relating to the types of supplies, materials, 5 equipment and services which are purchased by the governing 6 body or its authorized representative pursuant to this chapter. 7 2. Procedures by which a person may request notice of 8 solicitations or other methods of obtaining contracts for such 9 purchases by the governing body or its authorized representative. 10 Sec. 2. Chapter 333 of NRS is hereby amended by adding 11 thereto a new section to read as follows: 12 The Administrator shall post prominently on the Internet 13 website of the Purchasing Division: 14 – 3 – - *SB71* 1. Information relating to the types of supplies, materials, 1 equipment and services which are purchased pursuant to this 2 chapter. 3 2. Procedures by which a person may request notice of 4 solicitations or other methods of obtaining contracts for such 5 purchases. 6 Sec. 3. Chapter 334 of NRS is hereby amended by adding 7 thereto the provisions set forth as sections 4 to 11, inclusive, of this 8 act. 9 Sec. 4. As used in sections 4 to 11, inclusive, of this act, 10 unless the context otherwise requires, the words and terms defined 11 in sections 5, 6 and 7 of this act have the meaning ascribed to 12 them in those sections. 13 Sec. 5. “Council” means the Nevada Diverse Business 14 Advisory Council created by section 8 of this act. 15 Sec. 6. “Diverse business” means a business that: 16 1. Is owned by a diverse person; or 17 2. Has at least 51 percent of its ownership interest held by 18 one or more diverse persons. 19 Sec. 7. “Diverse person” means a person who: 20 1. Is a member of a racial or ethnic minority, female or a 21 veteran or has a physical disability; or 22 2. Identifies as lesbian, gay, bisexual, transgender, queer or 23 intersex or any other nonheterosexual or noncisgender orientation 24 or gender identity or expression. 25 Sec. 8. 1. The Nevada Diverse Business Advisory Council 26 is hereby created. Except as otherwise provided in subsection 2, 27 the Council consists of the following voting members: 28 (a) A representative of each county whose population is 29 100,000 or more, appointed by the county manager; 30 (b) A representative of the following entities from each county 31 whose population is 100,000 or more: 32 (1) A city whose population is 7,000 or more, appointed by 33 the city manager; 34 (2) The school district, appointed by the superintendent of 35 the school district; 36 (3) The county fair and recreation board, appointed by the 37 chief administrative officer of the board; 38 (4) A metropolitan police department or sheriff’s office, as 39 applicable, appointed by the administrative head of the department 40 or office; 41 (5) A consolidated or county library district, appointed by 42 the administrative head of the district; 43 – 4 – - *SB71* (6) The health district created pursuant to NRS 439.362 or 1 439.370, as applicable, appointed by the administrative head of the 2 district; 3 (7) The department of aviation or airport authority, as 4 applicable, appointed by the administrative head of the department 5 or authority; 6 (8) The regional transportation commission, appointed by 7 the chief administrative officer of the commission; 8 (9) A water district organized pursuant to a special act or 9 water authority organized as a political subdivision created by 10 cooperative agreement, as applicable, appointed by the 11 administrative head of the district or authority; 12 (10) A wastewater authority, as defined in NRS 244A.0555, 13 appointed by the administrative head of the authority; and 14 (11) A district for the control of floods created pursuant to 15 NRS 543.240 or 543.250, as applicable, appointed by the 16 administrative head of the district; 17 (c) A representative of an association of counties, appointed by 18 the administrative head of the association; 19 (d) A representative of an association of cities, appointed by 20 the administrative head of the association; 21 (e) A representative of each institution of the Nevada System 22 of Higher Education, appointed by the head of the institution; and 23 (f) The Administrator of the Purchasing Division of the 24 Department of Administration or a person designated by the 25 Administrator. 26 2. The Commission on Minority Affairs, in consultation with 27 the Council, shall solicit and encourage participation in the 28 Council by other governmental entities, private nonprofit entities 29 organized to promote business or encourage participation in 30 government, and private entities that employ 500 or more persons. 31 Any such entity that requests to participate in the Council must be 32 included as a nonvoting member of the Council. 33 3. After the initial terms, each voting member of the Council 34 serves a term of 2 years, commencing on July 1 and may be 35 reappointed. 36 4. A vacancy in the voting membership of the Council must 37 be filled in the same manner as the original appointment for the 38 remainder of the unexpired term. 39 Sec. 9. 1. The Council shall elect from among its voting 40 members a Chair, Vice Chair, Secretary and such other officers as 41 the Council determines are necessary. 42 2. The term of each officer is 2 years. 43 – 5 – - *SB71* 3. Any vacancy occurring in an office must be filled by 1 majority vote of the voting members of the Council for the 2 remainder of the unexpired term. 3 4. The Secretary of the Council shall: 4 (a) Record the minutes of each meeting of the Council; 5 (b) Record the attendance at each meeting of the Council; and 6 (c) Maintain the records, minutes and audio recordings or 7 transcripts of the Council. 8 Sec. 10. 1. The Council shall meet at least once every 3 9 months, and may meet at such other times at the call of the Chair 10 or a majority of the voting members. 11 2. The members of the Council shall serve without 12 compensation. A member of the Council who is an officer or 13 employee of this State or a political subdivision of this State must 14 be relieved from duties without loss of regular compensation so 15 that the officer or employee may prepare for and attend meetings 16 of the Council and perform any work necessary to carry out the 17 duties of the Council in the most timely manner practicable. A 18 state agency or political subdivision of this State shall not require 19 an officer or employee who is a member of the Council to make up 20 the time the officer or employee is absent from work to carry out 21 duties as a member of the Council or use annual vacation or 22 compensatory time for the absence. 23 3. The public entities that have voting members on the 24 Council shall jointly provide the Council with administrative 25 assistance and provide for the payment of the expenses of the 26 Council. 27 Sec. 11. 1. The Council shall recommend policies, 28 programs and procedures to encourage and promote the use of 29 diverse businesses in the area of purchasing by public entities in 30 this State. 31 2. On or before November 1 of each even-numbered year, 32 each public entity that has a voting member on the Council shall 33 prepare and deliver a written report to the Council, in a form 34 prescribed by the Council, for the immediately preceding 2 fiscal 35 years which contains, without limitation: 36 (a) The number of persons employed by the public entity, 37 disaggregated by the categories of diverse persons. 38 (b) Purchasing expenditures made by the public entity during 39 the immediately preceding 2 fiscal years, disaggregated by 40 discretionary and nondiscretionary expenditures. 41 (c) The amount and percentage of purchasing expenditures 42 paid by the public entity to diverse businesses, disaggregated by 43 the categories of diverse businesses. 44 – 6 – - *SB71* (d) The amount and percentage of purchasing expenditures 1 paid by the public entity to businesses that have a physical location 2 and employees within this State. 3 (e) The amount and percentage of purchasing expenditures 4 paid by the public entity to businesses that do not have a physical 5 location and employees within this State. 6 (f) A summary of the efforts and programs used by the public 7 entity to encourage and increase the involvement of diverse 8 businesses in the public purchasing process and any efforts or 9 programs used by the public entity to encourage the economic 10 development of diverse businesses. 11 (g) Such other information as the Council determines is 12 necessary to achieve its goals. 13 3. The Council shall encourage each public and private entity 14 that has a nonvoting member on the Council to prepare and 15 deliver to the Council a report similar to the report required by 16 subsection 2. 17 4. The Council shall provide to diverse businesses, in written 18 or electronic form, information and resources relating to the 19 public purchasing process. 20 5. On or before January 15 of each odd-numbered year, the 21 Council shall, using the reports received pursuant to this section, 22 prepare a report regarding the policies, programs and procedures 23 that the Council recommended during the immediately preceding 24 2 years to encourage and promote the use of diverse businesses, 25 and shall submit the report to the Director of the Legislative 26 Counsel Bureau for transmittal to the next regular session of the 27 Legislature. 28 Sec. 12. Section 3 of the NV Grow Act, being chapter 459, 29 Statutes of Nevada 2015, as last amended by chapter 570, Statutes 30 of Nevada 2019, at page 3668, is hereby amended to read as 31 follows: 32 Sec. 3. In assisting and carrying out the program 33 described in section 2 of this act, the Centers, as defined in 34 section 2 of this act, shall, without limitation, perform the 35 following services: 36 1. Analyze data; 37 2. Ensure that businesses participating in the program 38 understand the manner in which the data so analyzed will be 39 applied to those businesses so that the businesses may make 40 better business decisions and understand the current business 41 market in which they exist; 42 3. Mentor the businesses as to the optimum use of data 43 received under the program relative to the making of business 44 decisions; and 45 – 7 – - *SB71* 4. With respect to the businesses participating in the 1 program: 2 (a) Track the business decisions and growth of each 3 business over the entire period of the program; 4 (b) Report the data tracked pursuant to paragraph (a), at 5 least once each 6 months, to the Division; and 6 (c) Ensure the development of contacts with the Office of 7 Economic Development and, if appropriate, the [Regional] 8 Nevada Diverse Business [Development] Advisory Council 9 [for Clark County] created by section 8 of this act to 10 facilitate participation in procurement programs and to further 11 enhance the growth of each business. 12 Sec. 13. The provisions of NRS 218D.380 do not apply to any 13 provision of this act which adds or revises a requirement to submit a 14 report to the Legislature. 15 Sec. 14. The provisions of NRS 354.599 do not apply to any 16 additional expenses of a local government that are related to the 17 provisions of this act. 18 Sec. 15. Sections 11 to 20, inclusive, of the Regional Business 19 Development Advisory Council for Clark County Act are hereby 20 repealed. 21 Sec. 16. This act becomes effective on July 1, 2025. 22 TEXT OF REPEALED SECTIONS Sections 11 to 20, inclusive, of the Regional Business Development Advisory Council for Clark County Act: Sec. 11. Definitions. As used in sections 11 to 20, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 12 and 13 of this act have the meaning ascribed to them in those sections. Sec. 12. “Council” defined. “Council” means the Regional Business Development Advisory Council for Clark County created by section 15 of this act. Sec. 13. “Disadvantaged person” defined. “Disadvantaged person” means a person who: 1. Is a member of a racial or ethnic minority, female or physically disabled; or 2. Identifies as lesbian, gay, bisexual, transgender, queer or intersex or of any other nonheterosexual or noncisgender orientation or gender identity or expression. – 8 – - *SB71* Sec. 14. Legislative findings and declaration. The Legislature hereby finds and declares that a general law cannot be made applicable for the provisions of this act because of the economic diversity of Clark County, the unique growth in population experienced in Clark County, particularly in the minority population, and the special conditions experienced in Clark County related to the documented statistical disparities between the availability and utilization of firms owned by minorities and women for the procurement and contracting by public agencies in Clark County. Sec. 15. Council: Creation; membership. 1. The Regional Business Development Advisory Council for Clark County is hereby created. Except as otherwise provided in subsection 2, the Council consists of a single representative from each of the following entities: (a) City of Henderson. (b) Henderson Library District. (c) City of Las Vegas. (d) City of North Las Vegas. (e) Clark County. (f) Clark County Regional Flood Control District. (g) Clark County Water Reclamation District. (h) Clark County School District. (i) College of Southern Nevada. (j) Las Vegas-Clark County Library District. (k) Las Vegas Convention and Visitors Authority. (l) Las Vegas Valley Water District. (m) Regional Transportation Commission of Southern Nevada. (n) Southern Nevada Health District. (o) Southern Nevada Regional Housing Authority. (p) Southern Nevada Water Authority. (q) University Medical Center of Southern Nevada. (r) University of Nevada, Las Vegas. (s) Department of Transportation. 2. The Board of County Commissioners of Clark County, in consultation with the Council, shall solicit and encourage participation in the Council by other governmental entities, private nonprofit entities organized to promote business or encourage participation in government, and private entities that employ 500 or more persons. Any such entity that requests to participate in the Council must be included as a nonvoting member of the Council. Sec. 16. Council: Officers; terms; vacancies. The Council shall elect from among its members a Chair, Vice Chair, Secretary and such other officers as the Council determines are necessary. The term of each officer is 2 years. Any vacancy occurring in an office – 9 – - *SB71* must be filled by majority vote of the members of the Council for the remainder of the unexpired term. Sec. 17. Council: Compensation of members; administrative assistance; expenses. 1. The members of the Council shall serve without compensation. 2. The governmental entities who have a representative on the Council shall jointly provide the Council with administrative assistance and provide for the payment of the expenses of the Council. Sec. 18. Council: Frequency of meetings. The Council shall meet at least once every 3 months, at such times as are determined by the Council. Sec. 19. Council: Duties of Secretary. The Secretary of the Council shall: 1. Record the minutes of each meeting of the Council; 2. Record the attendance at each meeting of the Council; and 3. Maintain the records, minutes and audio recordings or transcripts of the Council. Sec. 20. Council: Duties; information to be provided to certain local businesses; reports. 1. The Council shall propose and implement policies, programs and procedures to encourage and promote the use of local businesses owned and operated by disadvantaged persons, particularly in the area of contracting and procurement by public agencies in Clark County. 2. On or before November 1 of each year, each public entity which has a representative on the Council pursuant to subsection 1 of section 15 of this act shall prepare and deliver a written report to the Council for the immediately preceding fiscal year which contains: (a) The number of persons employed by the public entity, disaggregated by major ethnic and racial categories, including, without limitation, African-American, Asian, Caucasian, Hispanic and Native American. (b) Expenditures made by the public entity during the immediately preceding fiscal year, disaggregated by discretionary and nondiscretionary expenditures. (c) The percentage of expenditures paid by the public entity to local businesses owned and operated by disadvantaged persons, disaggregated by ethnic and racial categories and by gender. (d) A summary of the efforts and programs used by the public entity to encourage and increase the involvement in contracting by local businesses owned and operated by disadvantaged persons and any efforts or programs used by the public entity to encourage the – 10 – - *SB71* economic development of local businesses owned and operated by disadvantaged persons. (e) Such other information as the Council determines is necessary to achieve its goals. 3. The Council shall encourage each public and private entity which has a representative on the Council pursuant to subsection 2 of section 15 of this act to prepare and deliver to the Council an annual report similar to the report required pursuant to subsection 2. 4. The Council shall provide to local businesses owned and operated by disadvantaged persons information, in written or electronic form, concerning public and private programs to provide financing for small businesses and the criteria for obtaining financing through such programs. The information must include, without limitation: (a) Grants or loans of money from the Catalyst Account created by NRS 231.1573; (b) The issuance of revenue bonds for industrial development pursuant to NRS 349.400 to 349.670, inclusive; (c) The Nevada Collateral Support Program pursuant to 12 U.S.C. §§ 5701 et seq.; (d) The Nevada Microenterprise Initiative Program pursuant to 12 U.S.C. §§ 5701 et seq.; (e) The Nevada New Markets Jobs Act pursuant to chapter 231A of NRS; (f) The Nevada Silver State Opportunities Fund pursuant to NRS 355.275; (g) Loans from the Small Business Administration pursuant to 15 U.S.C. §§ 631 et seq.; and (h) Any other private lending opportunity for small businesses with which the Council has a working relationship. 5. On or before January 15 of each odd-numbered year, the Council shall prepare a report regarding the policies, programs and procedures that the Council proposed and implemented during the immediately preceding 2 years to encourage and promote the use of local businesses owned and operated by disadvantaged persons, using the reports received pursuant to this section, and shall submit the report to the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature. H