Monday, March 14, 2005 | 11:05 a.m.
CARSON CITY -- Sen. Sandra Tiffany said today that a contract she has with the state to sell used Nevada Highway Patrol vehicles on eBay does not violate the law that prohibits legislators from doing business with the state.
Tiffany, R-Henderson, said legal opinions from Brenda Erdoes, the chief attorney for the Legislature, and the state attorney general's office allowed her to enter into a pilot contract with the state Purchasing Division.
Tiffany is pushing a bill that would allow future contracts like hers, a bill that came after the state Department of Motor Vehicles ordered her to stop selling the cars because she didn't have a broker's license. The bill would allow someone in her position to act without a broker's license.
Tiffany said that the bill will not benefit her since she already has a contract. "It will open the door for the next person," she said.
State Purchasing Director Greg Smith said Sunday he will not renew a contract with Tiffany because the pilot contract that expires in June did not produce the extra revenue promised.
"I'm not interested in continuing this," Smith said in reference to the contract with Tiffany's company, Stockdales Motors. The company advertises old Nevada Highway Patrol vehicles on an eBay Web site.
Senate Bill 55, introduced by Tiffany and approved by the Senate Committee on Transportation & Homeland Security, would allow a person to advertise the used vehicles on the Internet and receive a percentage of the sales price without being registered as a broker of vehicles with the state Department of Motor Vehicles.
Tiffany's bill, which should come up for a final vote in the Senate this week, says that a person who does business as an advertising company is not required to obtain a broker's license if the business takes photos of the vehicle and places them on a Web site, does not handle the certificates of title, does not take possession of the cars and is paid a percentage of the sales price.
Nevada law generally prohibits legislators entering into a contract with the state but there are a number of exceptions.
In this case, Smith said Tiffany had legal opinions from the Legislative Counsel Bureau and the attorney general's office clearing the way for a contract. He said his own agency counsel, Senior Deputy Attorney General Sonia Taggart, examined the proposed contract and found it did not violate any conflict-of-interest law.
Tiffany said the contract took six months to work out with the state. And she is now cleared by the state Department of Motor Vehicles to conduct her advertising business selling the used vehicles. While she says the bill will not give her any advantage, it does allow her to receive a percentage on the sale. At present she gets a flat fee for the sale of each car.
Sen. Dennis Nolan, R-Las Vegas, said Sunday that Tiffany read a letter to the Senate committee from the Legislative Counsel Bureau that said there was no conflict of interest in her pushing the bill, despite its direct correlation to the structure of her own company and contract with the state.
Nolan, chairman of the transportation and homeland security committee, said on the surface the bill "looks self serving" but after examination, it will clarify the law and help the state Department of Motor Vehicles in dealing with an emerging industry. And the agency supports SB55, he said.
Smith said Tiffany approached the state Division of Purchasing last year with a proposal that she could sell the used highway patrol cars through her eBay company faster and at a greater price. Smith said the state has contracts with auctioneers to sell the vehicles and they usually bring $2,000 to $3,000, of which the auctioneer only receives 5 percent.
The auctioneers take care of the smog checks, the title transfers and detailing the vehicles. The contract with Tiffany called only for her finding a buyer through her eBay site.
Smith agreed to a limited pilot contract to see if it would work to the state's budget. He said never did Tiffany put any pressure on him to sign the contract.
But a cease and desist order was issued by the Motor Vehicle Department against Tiffany, claiming she was a broker of autos and could not receive a percentage of the sales without registering with the agency.
Smith said the contract was then amended calling for her to receive $350 per car sold plus $94 as the cost of putting it on eBay. He said she has sold eight to 10 cars. He said he wanted to see in the original contract if this had promise to get a better price and at a faster clip.
The contract was limited to pay her $9,999 as her fee. Smith said Sunday he will limit the payments to $5,000 and the contract expires in June. It will not be renewed, he said.
"We would rather pay the 5 percent" and get the extra services, said the purchasing director.
Nolan said Tiffany "was the first person through the door" into this new business arrangement with the state. He said there was a complaint filed with the DMV on Tiffany. And the agency then said she was a broker of autos and needed to be registered if she received a percentage of the sale.
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