Senate Bill No. 392–Senator Porter

March 12, 1999

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Referred to Committee on Commerce and Labor

 

SUMMARY—Regulates certain trade practices. (BDR 52-1196)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to trade practices; regulating the merchandise sold at informal markets and the records required to be kept; prohibiting certain use of retail sales receipts or Universal Price Code Labels; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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

1-2 the provisions set forth as sections 2 to 13, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 12, inclusive, of this act, the words

1-4 and terms defined in sections 3 to 8, inclusive, of this act have the

1-5 meanings ascribed to them in those sections.

1-6 Sec. 3. "Infant formula" means food manufactured, packaged and

1-7 labeled for consumption by children who have not attained 2 years of

1-8 age.

1-9 Sec. 4. "Informal market" means:

1-10 1. A gathering at which:

1-11 (a) Two or more persons offer personal property for sale or exchange;

1-12 (b) A fee is charged for sale or exchange of personal property; or

1-13 (c) A fee is charged for admission to the area in which personal

1-14 property is offered for sale or exchange; or

1-15 2. A place at which personal property is offered or displayed for sale

1-16 or exchange on more than six occasions in a period of 12 months,

1-17 whether held in a building, or under cover, or in the open air.

2-1 Sec. 5. "Informal merchant" means a person who does not have an

2-2 established retail store in the county and who transports an inventory of

2-3 goods to an informal market and displays the goods for sale, offers them

2-4 for sale at retail or sells them at retail.

2-5 Sec. 6. "Medical device" means:

2-6 1. An article, or any part of an article, required under federal law to

2-7 bear the label: "Caution: Federal law requires dispensing by or on the

2-8 order of a physician"; or

2-9 2. An article defined by federal law as a medical device which:

2-10 (a) Is intended for use in the diagnosis of disease or other conditions

2-11 or in the cure, mitigation, treatment or prevention of disease in man or

2-12 other animals or to affect the structure or any function of the body of

2-13 man or other animals;

2-14 (b) Does not achieve any intended purpose through chemical action

2-15 within the body; and

2-16 (c) Does not depend upon being metabolized for the achievement of

2-17 any intended purpose.

2-18 Sec. 7. "Nonprescription drug" means a nonnarcotic medicine or

2-19 drug that may be sold without a prescription and is prepackaged for use

2-20 by the customer or prepared by the manufacturer or producer for use by

2-21 the customer. The term does not include herbal products, dietary

2-22 supplements, botanical extracts or vitamins.

2-23 Sec. 8. "Unused property" means tangible personal property

2-24 acquired by an informal merchant directly from the manufacturer,

2-25 producer, wholesaler or retailer of the property in the ordinary course of

2-26 business which has never been used since its manufacture or production

2-27 or which is in its original, unopened package or container.

2-28 Sec. 9. Sections 2 to 12, inclusive, of this act do not apply to:

2-29 1. The sale or exchange of personal property organized for the sole

2-30 benefit of a religious, educational or charitable purpose, if no part of any

2-31 fee for admission or parking charged to vendors or prospective

2-32 purchasers, or receipts from the sale or exchange inures to the benefit of

2-33 any private person participating in the organization or conduct of the

2-34 gathering;

2-35 2. Offering for sale or displaying new personal property if all

2-36 participants are manufacturers, their authorized representatives or

2-37 distributors;

2-38 3. Business conducted in an industrial or commercial trade show;

2-39 4. The sale of a vehicle that is required to be registered or is the

2-40 subject of a certificate of title issued in this state;

2-41 5. A farmers’ market or the sale of firewood or livestock;

2-42 6. The sale of the product of the seller’s art or craft;

3-1 7. Property, even if never used, whose style, packaging or material

3-2 indicates that it was not recently manufactured or produced;

3-3 8. A sale by sample, catalog or brochure for future delivery; or

3-4 9. Presentation for sale made pursuant to a previous individual

3-5 invitation to the prospective purchaser by the owner or occupant of the

3-6 premises.

3-7 Sec. 10. An informal merchant shall not offer for sale at an

3-8 informal market, or knowingly allow the sale of, infant formula, medical

3-9 devices, nonprescription drugs, cosmetics or products for personal care,

3-10 unless the seller keeps available for public inspection a genuine written

3-11 authorization from the manufacturer or distributor of the product sold.

3-12 Sec. 11. 1. An informal merchant shall maintain a receipt for each

3-13 purchase of unused property, containing:

3-14 (a) The date of the purchase;

3-15 (b) The name of the person from whom the property was acquired;

3-16 (c) An identification or description of the property;

3-17 (d) The price paid for the property; and

3-18 (e) The signatures of the merchant and the seller to him.

3-19 2. It is unlawful for a merchant required by subsection 1 to maintain

3-20 a receipt to:

3-21 (a) Falsify, obliterate or destroy the receipt;

3-22 (b) Refuse, or fail upon request, to produce the receipt for inspection

3-23 within a time reasonable under the circumstances of the request, but an

3-24 informal merchant need not keep such receipts on his person without

3-25 reasonable notice; or

3-26 (c) Fail to maintain the receipt for at least 2 years.

3-27 Sec. 12. An informal merchant who violates a provision of sections 2

3-28 to 11, inclusive, of this act is guilty of:

3-29 1. For the first offense, a misdemeanor.

3-30 2. For the second offense, a gross misdemeanor.

3-31 3. For the third or a subsequent offense, a category E felony and

3-32 shall be punished as provided in NRS 193.130.

3-33 Sec. 13. 1. A person who, with intent to cheat or defraud a retailer,

3-34 possesses, uses, utters, transfers, makes, alters, counterfeits or reproduces

3-35 a retail sales receipt or a Universal Price Code Label, is guilty of a

3-36 category E felony and shall be punished as provided in NRS 193.130 and

3-37 by a fine not exceeding three times the value represented on the retail

3-38 sales receipts or the Universal Price Code Labels.

3-39 2. A person who, with intent to cheat or defraud a retailer, possesses

3-40 15 or more fraudulent receipts or Universal Price Code Labels, or

3-41 possesses the device that manufactures fraudulent receipts or Universal

3-42 Price Code Labels, is guilty of a category D felony and shall be punished

3-43 as provided in NRS 193.130.

4-1 Sec. 14. The amendatory provisions of this act do not apply to

4-2 offenses that were committed before October 1, 1999.

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