State agency heads and administration officials worried that a new law mandating legislative approval of consulting contracts would leave them with a logistical nightmare have found a way around the problem: A narrowly crafted definition of exactly what is a consultant.
The Board of Examiners approved the definition Tuesday with little discussion. It states: "A consultant is a person who provides information and opinion or advice for a fee."
Director of Administration Andrew Clinger told the board consisting of the governor, secretary of state and attorney general a definition was needed because the legislation, AB463, didn't include one and there is no general-purpose definition of consultant in Nevada Revised Statutes.
Health and Human Services Director Mike Willden raised the same issue when the bill was introduced, asking lawmakers to define consultant.
He received no clear answer.
As a result, Clinger set aside more than 20 percent of the contracts on the June Board of Examiners agenda as potentially requiring Interim Finance Approval. That broad brush included numerous contracts for specialized legal services as well as medical and other service providers.
His information technology director Dave McTeer advised the board at that time a broad reading of "consultant" could cause severe logistical problems. One example he gave was a contract providing services to the Public Employment Benefits Program. He said without swift action by IFC, PEBP would be unable to pay benefit claims for state workers for at least a month.
McTeer said a similar problem would occur with a Medicaid provider contract if IFC approval was required there, blocking Medicaid payments for up to three months.
Those two contracts were approved just days later by IFC, but McTeer pointed out that since IFC meets at most every 45 days, the budget office and purchasing division would have to build a much longer lead time into the contract development process to prevent that kind of conflict.
Clinger said Tuesday he doesn't believe the legislation was intended to capture those kinds of contracts.
He told the board that, based on the newly approved definition, "I don't believe any contracts on this agenda today require IFC approval."
Jim Spencer, chief of staff for the attorney general's office and legal counsel for Clinger's office, said the definition isn't an attempt to subvert the intent of the legislation.
He said it was accompanied by new requirements included in the legislation that consulting contracts with current or former state workers be reported to IFC along with contracts extending longer than two years.
Several state officials have also questioned whether a law mandating legislative approval of executive branch contracts violates the separation of powers contained in Nevada's constitution.
• Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.