1. Assembly Bill No. 109–Committee on Commerce and Labor

CHAPTER........

AN ACT relating to trade practices; prohibiting an informal merchant from selling new

products that have certain defects; removing the purchasing and selling of used

books from the definition of "junk dealer" and "secondhand dealer"; revising the

definition of "secondhand dealer" to exclude certain persons who engage in the

business of buying or selling secondhand firearms under certain circumstances;

providing a penalty; and providing other matters properly relating thereto.

 

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 597 of NRS is hereby amended by adding thereto a

new section to read as follows:

1. An informal merchant shall not offer for sale or knowingly allow

the sale of any new product that he knows or reasonably should have

known is stolen, has been recalled by the manufacturer, has been

adulterated, has not been maintained at the proper temperature, has an

expiration date that has passed, has been discarded by the manufacturer

or a retailer, is an inferior product if he does not clearly indicate such

inferiority, or has any other defect that makes the product ineffective for

the use for which it is purchased or that makes the product below the

quality expected by the consumer.

2. An informal merchant who violates the provisions of subsection 1

shall be punished:

(a) If the sale of the product does not cause substantial bodily harm to

another person, for a gross misdemeanor.

(b) If the sale of the product causes substantial bodily harm to another

person, for a category C felony as provided in NRS 193.130.

3. Upon request of a peace officer, an informal merchant shall

provide reliable evidence of the legal acquisition of a new product that

the merchant is offering for sale. If it is determined that the product was

stolen and the informal merchant fails to provide such evidence, an

inference is created that the informal merchant knew or should have

known that the product was stolen.

4. As used in this section:

(a) "Informal market" means:

(1) A gathering at which:

(I) Two or more persons offer personal property for sale or

exchange;

(II) A fee is charged for the sale or exchange of personal

property; or

(III) A fee is charged for admission to the area in which personal

property is offered for sale or exchange; or

(2) A place at which personal property is offered or displayed for

sale or exchange on more than six occasions in a period of 12 months,

whether held in a building, under cover or in the open air.

(b) "Informal merchant" means a person who does not have an

established retail store in the county and who transports an inventory of

goods to an informal market and displays the goods for sale, offers them

for sale at retail or sells them at retail.

(c) "New product" means any tangible good which has never been

used or which is in its original, unopened package or container.

(d) "Stolen" means taken unlawfully from or without the permission

of the owner, whether or not the person who took the item is or has been

prosecuted or convicted for the taking of the item.

Sec. 2. NRS 598.281 is hereby amended to read as follows:

  1. 598.281 As used in NRS 598.281 to 598.289, inclusive, unless the
  1. context otherwise requires:
  1. 1. "Buyer" means a natural person who is solicited to purchase or who
  1. purchases the services of an organization which provides credit services.
  1. 2. "Commissioner" means the commissioner of consumer affairs.
  1. 3. "Division" means the consumer affairs division of the department of
  1. business and industry.
  1. 4. "Extension of credit" means the right to defer payment of debt or to
  1. incur debt and defer its payment, offered or granted primarily for personal,
  1. family or household purposes.
  1. 5. "Organization":
  1. (a) Means a person who, with respect to the extension of credit by
  1. others, sells, provides or performs, or represents that he can or will sell,
  1. provide or perform, any of the following services, in return for the payment
  1. of money or other valuable consideration:
  1. (1) Improving a buyer’s credit record, history or rating.
  1. (2) Obtaining an extension of credit for a buyer.
  1. (3) Providing counseling or assistance to a person in establishing or
  1. effecting a plan for the payment of his indebtedness, unless [such] that
  1. counseling or assistance is provided by and is within the scope of the
  1. authorized practice of a debt adjuster licensed pursuant to chapter 676 of
  1. NRS.
  1. (4) Providing advice or assistance to a buyer with regard to [either]
  1. subparagraph (1) or (2).
  1. (b) Does not include : [any of the following:]
  1. (1) A person organized, chartered or holding a license or
  1. authorization certificate to make loans or extensions of credit pursuant to
  1. the laws of this state or the United States who is subject to regulation and
  1. supervision by an officer or agency of this state or the United States.
  1. (2) A bank, credit union or savings and loan institution whose
  1. deposits or accounts are eligible for insurance by the Federal Deposit
  1. Insurance Corporation, the National Credit Union Share Insurance Fund or
  1. a private insurer approved pursuant to NRS 678.755.
  2. (3) [A nonprofit organization exempt from taxation under section
  1. 501(c)(3) of the Internal Revenue Code.
  1. (4)] A person licensed as a real estate broker by this state where the
  1. person is acting within the course and scope of that license [.
  1. (5)] , unless the person is rendering those services in the course and
  1. scope of employment by or other affiliation with an organization.
  1. (4) A person licensed to practice law in this state where the person
  1. renders services within the course and scope of his practice as an attorney
  1. at law, unless the person is rendering [such] those services in the course
  1. and scope of employment by or other affiliation with an organization.
  1. [(6)] (5) A broker-dealer registered with the Securities and Exchange
  1. Commission or the Commodity Futures Trading Commission where the
  1. broker-dealer is acting within the course and scope of such regulation.
  1. [(7)] (6) A person licensed as a debt adjuster pursuant to chapter 676
  1. of NRS.
  1. [(8)] (7) A reporting agency.
  1. 6. "Reporting agency" means a person who, for fees, dues or on a
  1. cooperative nonprofit basis, regularly engages in whole or in part in the
  1. business of assembling or evaluating information regarding the credit of or
  1. other information regarding consumers to furnish consumer reports to third
  1. parties, regardless of the means or facility of commerce used to prepare or
  1. furnish the consumer reports. The term does not include:
  1. (a) A person solely for the reason that he conveys a decision regarding
  1. whether to guarantee a check in response to a request by a third party;
  1. (b) A person who obtains or creates a consumer report and provides the
  1. report or information contained in it to a subsidiary or affiliate; or
  1. (c) A person licensed pursuant to chapter 463 of NRS.

Sec. 3. Chapter 647 of NRS is hereby amended by adding thereto a

new section to read as follows:

A person who is described in subsection 2 of NRS 647.018:

1. Shall comply with the provisions of NRS 647.110, 647.120 and

647.130; and

  1. 2. Is subject to the provisions of NRS 647.140 and 647.145.

Sec. 4. NRS 647.016 is hereby amended to read as follows:

  1. 647.016 "Junk dealer" means every person, firm or corporation
  1. engaged in the business of purchasing or selling hides or junk [.] , other
  1. than used books.

Sec. 5. NRS 647.018 is hereby amended to read as follows:

647.018 1. "Secondhand dealer" means any person engaged in whole

or in part in the business of buying and selling metal junk, melted metals or

secondhand personal property, other than used books, including, without

limitation, antiques and collectibles.

  1. 2. The term does not include a person who engages in the business of
  1. buying or selling secondhand firearms or any antique parts, accessories
  1. or other equipment relating to those firearms if:
  1. (a) The person engages in that business at a show that
  1. :
  2. (1) Is held at:
  1. (I) A convention facility which is owned or operated by and
  1. located on the premises of a resort hotel; or
  1. (II) A recreational facility which is owned or operated by a
  1. county fair and recreation board; and
  1. (2) Is conducted for not more than 7 days during any 6-month
  1. period; and
  1. (b) The person has been issued a license as a manufacturer, importer,
  1. dealer or collector pursuant to the provisions of 18 U.S.C. § 923.
  1. Sec. 6. The amendatory provisions of this act do not apply to offenses
  1. that were committed before October 1, 1999.
  1. Sec. 7. Section 2 of this act becomes effective at 12:01 a.m. on
  1. October 1, 1999.
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