The Committee on Natural Resources, Agriculture, and Mining was called to order at 7:30 a.m., on Wednesday, May 26, 1999. Chairman Marcia de Braga presided in Room 3161 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All Exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Mrs. Marcia de Braga, Chairman

Mrs. Gene Segerblom, Vice Chairman

Mr. Douglas Bache

Mr. John Carpenter

Mr. Jerry Claborn

Mr. Lynn Hettrick

Mr. David Humke

Mr. John Marvel

Mr. Harry Mortenson

Ms. Genie Ohrenschall

Ms. Bonnie Parnell

COMMITTEE MEMBERS ABSENT:

Mr. John Jay Lee

Mr. Roy Neighbors

GUEST LEGISLATORS PRESENT:

Speaker Joseph Dini, Assembly District 38

STAFF MEMBERS PRESENT:

OTHERS PRESENT:

Harvey Whittemore was the first to testify in favor of the proposed legislation. He represented Suiza Foods, the company that recently purchased Model Dairy based in Reno, Nevada. The measure would permit the Division of Weights and Measures under Nevada Revised Statutes (NRS) 581 to adopt regulations allowing for various different types of marketing products and containers associated with the dairy industry. Mr. Whittemore said he would submit a proposed amendment later in the hearing.

Ernie Adler, representing Model Dairy, explained the measure would allow fluid dairy products to deviate from traditional size and shape containers such as one gallon, half gallon, quart, and pint. A.B. 694 would allow more diverse sizes and shapes of fluid dairy product containers, which would enhance marketability of those products for different consumer groups. The proposed legislation would eliminate specific restrictions and designations concerning size and shape of dairy containers and permit liquid dairy products to be sold in fluid ounce categories. Solid dairy products would be sold by weight. Size limitations would be removed.

Ms. Ohrenschall asked if consumers would be informed of how the size, quantity, and price would be affected to ensure customers were getting the correct amounts of the products they purchased. Mr. Adler responded in the affirmative.

Mrs. Segerblom asked how the proposed amendment would change the legislation. Mr. Whittemore explained the proposed amendment would change NRS 581 to state the new provisions allowing for the sale of liquid dairy products by fluid ounce and solid dairy products by weight rather than requiring the changes to be made by Division of Weights and Measures.

Mr. Mortenson suggested not using fluid ounces, but rather to facilitate conversion to the metric system. Mr. Carpenter and Mr. Whittemore agreed. Mr. Hettrick suggested the proposed amendment read all dairy products must be packaged for retail sale in amounts approved by the dairy commission. He pointed out using that language was simpler for packagers as well as marketers. Mr. Adler suggested taking that suggestion to the Division of Weights and Measures.

Ed Hoganson, Supervisor of Division of Weights and Measures, was called upon to respond to the suggested new language. He said his agency supported the proposed amendment. Mr. Hoganson said he preferred fluid ounce measurements and the use of duel statements such as liters or grams. Part of NRS 581.320 pertained to labeling requirements, which he did not want removed from statute because it needed to be included to identify the dairy or packager of the various products for market.

The Chairman asked if the different size containers would make his job more difficult, to which Mr. Hoganson responded in the negative.

Mr. Marvel asked what prompted the legislation that would change container sizes. Mr. Hoganson said the International Dairy Association saw the need for the change and it was becoming a universal request to accommodate marketing needs.

Robert Durango, Chairman Nevada Dairy Commission, agreed with Mr. Hoganson’s suggestion to state fluid ounces on containers. When the industry requested different container sizes and shapes, the Dairy Commission would establish the fluid ounces in each. The proposed legislation would allow for more innovative marketing strategies. Mr. Durango said the Dairy Commission wanted to assist in the process. It was of major importance the dairy industry legitimately sell dairy products in the amounts specified. He pointed out the Dairy Commission did not control prices. The law of Nevada was products could not be sold below their cost.

Ms. Ohrenschall asked if unusually shaped containers would be allowed under the proposed legislation. Mr. Durango replied in the affirmative.

Chairman de Braga asked if there could be difficulty determining minimum pricing under the new standards. Mr. Durango replied in the negative, adding that was because the agency audited the industry by cost and there would be a set cost for fluid ounces.

Stacy Jennings, Executive Director, Nevada State Dairy Commission stated she concurred with Mr. Durango’s testimony.

Mr. Hettrick asked why it was necessary to state fluid ounces or weight. He suggested the language for the proposed amendment should allow quantities listed on the packages to be broadly phrased. Mr. Durango said Nevada Division of Weights and Measures, as well as accepted national standards, required the wording on dairy product packages to be specific and uniform. The Chairman added fluid ounces had to be distinguished from solid weights by law.

Mr. Mortenson said if fluid and weight measurements were not standardized it would be possible to label the container with weight measurement in ounces only. That would confuse consumers because the varied densities of individual products differed. No one would know how much of each product they were purchasing.

Mr. Whittemore suggested repealing the portions of NRS 581.320 that dealt with the requirement milk products be sold in certain size containers. He pointed out the changes would affect lines 6 through 10 on page 2 of the statute. The new language would state all fluid dairy products, including cream and buttermilk, shall be sold in terms of fluid ounces.

Ms. Ohrenschall asked if subsection (d) lines 10 and 11, on page 1 of the measure would be removed. Mr. Whittemore said all of subsection (d) should be removed in order to provide flexibility in establishing proper state sanctioned weights and measurements. He said his first suggestion would be to remove the regulation entirely from statute.

Mrs. Segerblom asked if the phrase or such other amounts on lines 10 and 11 of page 2 would be left in the new language of the proposed legislation. Mr. Whittemore responded in the affirmative.

Ms. Parnell stated her concern was the consumer needed to maintain a point of comparison between products. She asked if the proposed legislation would interrupt that ability. Mr. Whittemore responded in the negative.

Speaker Dini testified in support of the proposed legislation. He said the last time he saw the measure was in 1967 when he chaired the Committee on Agriculture. He said the arguments were the same then as they were now. When there was discussion about milk there were many other issues as well. He agreed with the language proposed by Mr. Hettrick.

The Chairman said the new language would remove subsection (d) on page 1 and section 2 on page 2, which would be replaced with the phrase all fluid dairy products must be packaged for retail sale in liquid measure and in such amounts as approved by the Dairy Commission and the State Sealer of Weights and Measures. Containers used for the sale of such products must be marked upon the side of each container with its capacity. The name, initial or trade-mark of the manufacturer must be marked upon the side or bottom.

The proposed amendment would take out of current statute the specific units of measure allowable for fluid dairy products, and allow the Nevada Dairy Commission and the Division of Weights and Measures to approve new packaging. They wanted to avoid limiting the language to fluid ounces in order to accommodate metric measurements. They also wanted to eliminate the reference to cream and buttermilk, since those were covered under the language all fluid dairy products. Also, the committee agreed to leave in the reference to labeling, which was currently in statute.

Linda Eissmann, policy analyst for Legislative Counsel Bureau, provided the committee with a handout, which was the proposed legislation with changes as noted on line 10 of page 1 and lines 6 through 11 of page 2 (Exhibit C).

The Chairman asked if there were additional questions or comments and there were none. She called for a motion.

There being no further business before the committee, the hearing was adjourned at 8:05 p.m.

RESPECTFULLY SUBMITTED:

Sharon Spencer,

Committee Secretary

APPROVED BY:

Assemblywoman Marcia de Braga, Chairman

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