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 Product 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 9, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 8, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 and

1-5 4 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Informal market" means:

1-7 1. A gathering at which:

1-8 (a) Two or more persons offer personal property for sale or exchange;

1-9 (b) A fee is charged for sale or exchange of personal property; or

1-10 (c) A fee is charged for admission to the area in which personal

1-11 property is offered for sale or exchange; or

1-12 2. A place at which personal property is offered or displayed for sale

1-13 or exchange on more than six occasions in a period of 12 months,

1-14 whether held in a building, or under cover, or in the open air.

1-15 Sec. 4. "Informal merchant" means a person who does not have an

1-16 established retail store in the county and who transports an inventory of

1-17 goods to an informal market and displays the goods for sale, offers them

1-18 for sale at retail or sells them at retail.

2-1 Sec. 5. Sections 2 to 8, inclusive, of this act do not apply to:

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

2-3 benefit of a religious, educational or charitable purpose, if no part of any

2-4 fee for admission or parking charged to vendors or prospective

2-5 purchasers, or receipts from the sale or exchange inures to the benefit of

2-6 any private person participating in the organization or conduct of the

2-7 gathering;

2-8 2. Offering for sale or displaying new personal property if all

2-9 participants are manufacturers, their authorized representatives or

2-10 distributors;

2-11 3. Business conducted in an industrial or commercial trade show;

2-12 4. The sale of a vehicle that is required to be registered or is the

2-13 subject of a certificate of title issued in this state;

2-14 5. A farmers’ market or the sale of firewood or livestock;

2-15 6. The sale of the product of the seller’s art or craft;

2-16 7. Property, even if never used, whose style, packaging or material

2-17 indicates that it was not recently manufactured or produced;

2-18 8. A sale by sample, catalog or brochure for future delivery; or

2-19 9. Presentation for sale made pursuant to a previous individual

2-20 invitation to the prospective purchaser by the owner or occupant of the

2-21 premises.

2-22 Sec. 6. 1. An informal merchant shall not offer for sale at an

2-23 informal market, or knowingly allow the sale of, infant formula, medical

2-24 devices, nonprescription drugs, cosmetics or products for personal care,

2-25 unless the seller keeps available for public inspection a genuine written

2-26 authorization from the manufacturer or distributor of the product sold.

2-27 2. As used in this section:

2-28 (a) "Infant formula" means food manufactured, packaged and

2-29 labeled for consumption by children who have not attained 2 years of

2-30 age.

2-31 (b) "Medical device" means:

2-32 (1) An article, or any part of an article, required pursuant to federal

2-33 law to bear the label: "Caution: Federal law requires dispensing by or on

2-34 the order of a physician"; or

2-35 (2) An article defined by federal law as a medical device which:

2-36 (I) Is intended for use in the diagnosis of disease or other

2-37 conditions or in the cure, mitigation, treatment or prevention of disease

2-38 in man or other animals or to affect the structure or any function of the

2-39 body of man or other animals;

2-40 (II) Does not achieve any intended purpose through chemical

2-41 action within the body; and

3-1 (III) Does not depend upon being metabolized for the

3-2 achievement of any intended purpose.

3-3 (c) "Nonprescription drug" means a nonnarcotic medicine or drug

3-4 that may be sold without a prescription and is prepackaged for use by the

3-5 customer or prepared by the manufacturer or producer for use by the

3-6 customer. The term does not include herbal products, dietary

3-7 supplements, botanical extracts or vitamins.

3-8 Sec. 7. 1. An informal merchant shall maintain a receipt for each

3-9 purchase of unused property, containing:

3-10 (a) The date of the purchase;

3-11 (b) The name of the person from whom the property was acquired;

3-12 (c) An identification or description of the property;

3-13 (d) The price paid for the property; and

3-14 (e) The signatures of the merchant and the seller to him.

3-15 2. It is unlawful for a merchant required by subsection 1 to maintain

3-16 a receipt to:

3-17 (a) Falsify, obliterate or destroy the receipt;

3-18 (b) Refuse, or fail upon request, to produce the receipt for inspection

3-19 within a time reasonable under the circumstances of the request, but an

3-20 informal merchant need not keep such receipts on his person without

3-21 reasonable notice; or

3-22 (c) Fail to maintain the receipt for at least 2 years.

3-23 3. As used in this section, "unused property" means tangible

3-24 personal property acquired by an informal merchant directly from the

3-25 manufacturer, producer, wholesaler or retailer of the property in the

3-26 ordinary course of business which has never been used since its

3-27 manufacture or production or which is in its original, unopened package

3-28 or container.

3-29 Sec. 8. An informal merchant who violates a provision of sections 2

3-30 to 7, inclusive, of this act is guilty of:

3-31 1. For the first offense, a misdemeanor.

3-32 2. For the second offense, a gross misdemeanor.

3-33 3. For the third or a subsequent offense, a category E felony and

3-34 shall be punished as provided in NRS 193.130.

3-35 Sec. 9. 1. A person who, with intent to cheat or defraud a retailer,

3-36 possesses, uses, utters, transfers, makes, alters, counterfeits or reproduces

3-37 a retail sales receipt or a Universal Product Code Label, is guilty of a

3-38 category E felony and shall be punished as provided in NRS 193.130 and

3-39 by a fine not exceeding three times the value represented on the retail

3-40 sales receipts or the Universal Product Code Labels.

4-1 2. A person who, with intent to cheat or defraud a retailer, possesses

4-2 15 or more fraudulent receipts or Universal Product Code Labels, or

4-3 possesses a device that manufactures fraudulent receipts or Universal

4-4 Product Code Labels, is guilty of a category D felony and shall be

4-5 punished as provided in NRS 193.130.

4-6 Sec. 10. The amendatory provisions of this act do not apply to

4-7 offenses that were committed before October 1, 1999.

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