SB505_EN

Senate Bill No. 505–Committee on Finance

CHAPTER..........

AN ACT relating to dairy products; making various changes relating to the transfer of responsibility for the dairy inspection program to the state dairy commission of the department of business and industry; and providing other matters properly relating thereto.

Whereas, Fresh wholesome milk and other dairy products are basic food commodities whose availability at reasonable prices is a necessity for consumers; and

Whereas, It is recognized by the Legislature that the perishable nature of milk and other dairy products has led, in the past, to disruption in both production and marketing; and

Whereas, The consolidated regulation of the Nevada dairy industry from the dairy farm to the distributor will benefit both the consumer and the industry by creating a single source of regulation and a streamlined regulatory structure; and

Whereas, The state dairy commission is charged with consolidating this regulation and ensuring that fresh wholesome milk and other dairy products are produced and distributed within Nevada in a manner free from destructive competition and unfair trade practices; now, therefore,

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 584 of NRS is hereby amended by adding thereto

the provisions set forth as sections 2 to 6, inclusive, of this act.

Sec. 2. As used in this chapter, unless the context otherwise

requires, “commission” means the state dairy commission created

pursuant to NRS 584.420.

Sec. 3. The commission may adopt and enforce regulations to carry

out the provisions of this chapter.

Sec. 4. The state health officer shall, if requested, consult with the

commission on any matter concerning the public health and welfare of

the people of this state that arises pursuant to this chapter.

Sec. 5. Before the commission may adopt a regulation pursuant to

NRS 584.013 to 584.285, inclusive, and sections 5 and 6 of this act, the

commission shall submit the regulation to the state board of health for

review and comment. The board shall complete its review and return the

regulation to the commission not later than 30 days after its receipt

thereof unless the commission agrees to a longer time.

Sec. 6. 1. The commission may enter into contracts with any

person to assist it in carrying out the duties of the commission by

performing any duty imposed on the commission pursuant to NRS

584.013 to 584.285, inclusive, or sections 5 and 6 of this act.

2. As used in this section, “person” includes a government, a

governmental agency and a political subdivision of a government.

Sec. 7. NRS 584.017 is hereby amended to read as follows:

584.017 Except as otherwise provided by law, the [state board of

health] commission shall adopt, and may amend and repeal, reasonable

regulations governing:

1. The production, manufacturing, mixing, preparing, processing,

pasteurizing, freezing, packaging, transportation, handling, sampling,

examination, labeling and sale of all mix and frozen desserts sold for

ultimate consumption within the State of Nevada.

2. The inspection of all establishments engaged in the production,

processing and distribution of mix and frozen desserts.

3. The issuing and revocation of permits to frozen desserts plants.

4. The grading and regrading of frozen desserts plants.

5. The displaying of grade placards.

6. The fixing of penalties for a violation of [such] the regulations.

Sec. 8. NRS 584.023 is hereby amended to read as follows:

584.023 A copy of every regulation adopted by the [state board of

health] commission must be published immediately after adoption and

issued in pamphlet form for distribution to local health officers and

[citizens of the state.] , upon application therefor, to licensed or other

dairymen, creameries and other persons interested in them.

Sec. 9. NRS 584.027 is hereby amended to read as follows:

584.027 Any person who violates any provision of the regulations

adopted pursuant to NRS 584.017, or refuses or neglects to obey any

lawful order of the [state board of health,] commission, is guilty of a

misdemeanor.

Sec. 10. NRS 584.125 is hereby amended to read as follows:

584.125 For the purposes of NRS 584.110 to 584.160, inclusive,

“wholesome butter” is defined to be butter made from cream and milk

wherein the entire procedure from dairy to creamery, or other place of

manufacture of such product or products, is conducted under sanitary

conditions[;] , and wherein the milk or cream has either been produced by

cows all of which have been duly certified by some reputable veterinarian

as free from tuberculosis, or, if not so certified, wherein such milk or

cream has been pasteurized as prescribed by the [commissioner of food

and drugs] commission pursuant to NRS 584.135.

Sec. 11. NRS 584.130 is hereby amended to read as follows:

584.130 The inspection of butter under the provisions of NRS 584.110

to 584.160, inclusive, and the determination of the same as wholesome or

impure, are hereby made duties of the [commissioner of food and drugs.

The commissioner of food and drugs] commission. The commission is

hereby given all necessary authority and power for such inspection and

determination and may employ such inspectors or agents therefor as may

be necessary within any revenues generated or appropriation provided for

such purposes.

Sec. 12. NRS 584.135 is hereby amended to read as follows:

584.135 The [commissioner of food and drugs is authorized and

empowered to make and enforce such reasonable rules and] commission

shall make such regulations, within the meaning and purposes of NRS

584.110 to 584.160, inclusive, as may be necessary in their administration,

and which may include the sanitary production, care and handling of milk

and cream used in the making of butter.

Sec. 13. NRS 584.140 is hereby amended to read as follows:

584.140 The [commissioner of food and drugs] commission shall

supply local dealers in butter with a list of persons, firms and creameries

commonly supplying butter for local consumption classified as makers of

wholesome or impure butter, and shall, from time to time thereafter, supply

such dealers with additions to or alterations in such classifications.

Sec. 14. NRS 584.150 is hereby amended to read as follows:

584.150 1. It [shall be] is unlawful for any person, firm or

corporation to sell or exchange, or offer or expose for sale or exchange, for

human consumption, any impure butter.

2. Imported butter from states having similar laws, if made by

creameries, dairies or farms recognized by the authorities of such states as

manufacturing wholesome butter, and imported pasteurized butter from

states not having similar laws but the makers of which [shall] have

satisfied the [commissioner of food and drugs] commission that such

butter conforms to the requirements of NRS 584.110 to 584.160, inclusive,

shall be [regarded as] deemed wholesome if offered for sale or exchange

in this state. All other imported butter shall be deemed impure.

3. All impure butter offered for sale or exchange, for human

consumption, [shall be] is subject to confiscation by the police authorities

and may be destroyed.

4. Any person, firm or corporation violating the provisions of this

section [shall be] is guilty, for the first offense, of a misdemeanor, and for

any subsequent offense, of a gross misdemeanor.

Sec. 15. NRS 584.155 is hereby amended to read as follows:

584.155 On complaint by the [commissioner of food and drugs]

commission of the violation of NRS 584.150 by any person, firm or

corporation, the district attorney of the county in which [such] the

violation is alleged to have occurred shall institute criminal proceedings

against the person complained of and shall prosecute the same in the

proper courts.

Sec. 16. NRS 584.180 is hereby amended to read as follows:

584.180 1. [No] A person, firm, association or corporation shall not

sell or offer to sell fresh fluid milk or fresh fluid cream in the State of

Nevada without obtaining a permit issued by the [health division of the

department of human resources pursuant to the regulation of the state

board of health governing the sanitation and grading of milk and milk

products.] commission.

2. No such permit [shall be] is required from any person, firm,

association or corporation who sells solely to a permittee or purchases

solely from a permittee.

Sec. 17. NRS 584.185 is hereby amended to read as follows:

584.185 The application for the permit required by NRS 584.180

[shall:] must:

1. Be submitted in writing on [such form as the state board of health

shall prescribe.] a form prescribed by the commission.

2. Include the name and address of the applicant, and, if a partnership,

the names and addresses of all partners, and, if a corporation, association

or other organization, the names and addresses of the president, vice

president, secretary and managing officers.

3. Specify the name and location of the premises or business for which

the license is sought.

4. Contain such other information as may be reasonably required by

the [board.] commission.

Sec. 18. NRS 584.190 is hereby amended to read as follows:

584.190 If it [shall appear] appears to the satisfaction of the [health

division of the department of human resources] commission that the

applicant has complied with [the] all regulations governing the sanitation

and grading of milk and milk products, the [health division] commission

shall cause the dairy farms, milk plants and facilities of the applicant to be

inspected . [as provided by the regulations of the state board of health.]

Sec. 19. NRS 584.195 is hereby amended to read as follows:

584.195 1. If, after the application and inspection, it [shall appear]

appears to the satisfaction of the [health division of the department of

human resources] commission that the applicant has fully complied with

[the regulations of the state board of health] all regulations governing the

sanitation and grading of milk and milk products, the [health division]

commission shall issue a permit to the applicant.

2. The [health division] commission shall keep a record of all

applications for permits and permits issued by it, which [shall] must be a

public record.

Sec. 20. NRS 584.200 is hereby amended to read as follows:

584.200 1. Whenever any inspection of the dairy farms, milk plants

or facilities of an applicant or a permittee necessitates departing beyond

the territorial limits of the State of Nevada, the applicant or permittee on

whose behalf [such] the inspection is to be made shall pay the per diem

expense allowance and travel expenses of the inspector or inspectors for

the amount of their travel beyond the territorial limits of the State of

Nevada in an amount equivalent to that paid other state officers

performing similar duties. [Claims for per diem expense allowances and

travel expenses of inspectors must be paid by the health division of the

department of human resources.]

2. Before an inspection is made outside the State of Nevada, the

[health division] commission shall collect from the applicant or permittee

an amount of money equal to the expenses to be incurred for the

inspection. The money must be deposited with the state treasurer for credit

to the appropriate account [of the health division] in the dairy commission

fund and may be used only to pay for claims filed in accordance with this

section.

3. Failure of an applicant or a permittee to pay the amount demanded

by the [health division] commission pursuant to the provisions of

subsection 2 is a ground for the denial, suspension or revocation of a

permit. Money paid by any applicant or permittee pursuant to the

provisions of subsection 2 must not be refunded.

Sec. 21. NRS 584.205 is hereby amended to read as follows:

584.205 1. In addition to the initial inspection of new applicants, the

[state board of health] commission shall, except as otherwise provided in

subsection 2, direct a periodic inspection, not less than annually, of all

facilities belonging to permittees [in order] to ascertain whether [or not]

the services, facilities and equipment continue to comply with the

regulations referred to in NRS [584.180 and] 584.195.

2. Except as otherwise provided in NRS 584.208 and the regulations

adopted pursuant to that section, milk and milk products, including

certified raw milk and products made from it, imported from outside the

State of Nevada may be sold in this state without inspection by the [health

division of the department of human resources] commission if the

requirements of paragraph (c) and the requirements of paragraph (a) or

paragraph (b) are met:

(a) In the case of certified raw milk and products made from it, they

have been produced under standards adopted by the American Association

of Medical Milk Commissions and under the statutory provisions of the

State of California applicable to such products.

(b) The milk and milk products have been produced, pasteurized,

processed, transported and inspected under statutes or regulations

substantially equivalent to the Nevada milk and milk products statutes and

regulations.

sanitation, compliance and enforcement rating by a state milk sanitation

rating officer certified by the United States Public Health Service.

3. Whenever the [health division] commission has reasonable grounds

to believe that a seller of milk or milk products, including certified raw

milk and products made from it, is violating any of the regulations adopted

by the [state board of health] commission or any county milk commission

relating to the sanitation and grading of milk and milk products, including

certified raw milk and products made from it, or that his facilities or

products fail to meet the regulations, or that his operation is in any other

manner not in the best interests of the people of this state, the [health

division] commission may conduct a reasonable inspection, and if any

violation or other condition inimical to the best interests of the people of

this state is found, to take corrective action pursuant to NRS 584.180 to

584.210, inclusive.

Sec. 22. NRS 584.207 is hereby amended to read as follows:

584.207 1. Certified raw milk is unpasteurized, marketed milk which

conforms to the regulations and standards adopted by the county milk

commission for the production and distribution of certified raw milk and

certified raw milk products in the county in which they are produced.

2. In each county in which certified raw milk or certified raw milk

products are produced for public consumption, there must be a county

milk commission to regulate the production and distribution of those

products. The board of county commissioners shall appoint to the

commission three members for terms of 4 years , all of whom are eligible

for reappointment. The members must all be residents of the county and

have the following respective qualifications:

(a) One member must be a physician licensed in this state and a member

of the medical society of the state;

(b) One member must be a veterinarian licensed in this state and a

member of the county or regional veterinarian association; and

3. A county milk commission shall:

(a) Elect one of its members as chairman and adopt appropriate rules to

govern:

(1) The time and place of its meetings;

(2) Its rules of procedure; and

(3) Its recordkeeping and other internal operations.

(b) Adopt written regulations, which must be approved by the state

[board of health,] dairy commission, governing the production, distribution

and sale in the county of certified raw milk and products made from it, to

protect the public health and safety and the integrity of the product. The

regulations so adopted must conform as nearly as practicable to, but may

be more stringent than, the standards adopted by the American Association

of Medical Milk Commissions.

producing raw milk within the county, whose product and methods of

production, distribution and sale comply with the regulations and

standards adopted by the county milk commission.

4. A county milk commission may:

(a) Establish and collect such fees and charges as appear reasonably

necessary to defray the costs and expenses incurred by it in the

performance of its duties under this section, and expend any money so

collected as is necessary for such performance.

(b) Conduct such tests, inspections and analyses as are necessary to

enable it to perform its duties under this section and employ such

personnel and equipment as it deems necessary therefor.

5. Each applicant for certification [shall,] must, as a condition for

entertaining his application and as a condition for any certification

granted, submit for testing by the county milk commission such samples

as the county milk commission requests, and allow inspections by the

county milk commission or its agents at any reasonable times, of any or all

of his facilities, equipment, herds or other property employed in his dairy

operations, including, without limitation, all of his books and records

relating thereto.

Sec. 23. NRS 584.208 is hereby amended to read as follows:

584.208 1. Certified raw milk and products made from it may be

sold if the milk has been:

(a) Cooled to 45 degrees Fahrenheit or less immediately after being

drawn from the cow or goat and maintained at or below that temperature

until it is delivered to the consumer, at which time it may not contain more

than 10 coliform bacteria per milliliter or more than 10,000 bacteria per

milliliter; and

(b) Certified by the county milk commission of the county in which it

was produced.

2. No person may come in contact with or be near raw milk before it is

sold to the consumer unless the person maintains scrupulous cleanliness

and is not afflicted with any communicable disease or in a condition to

disseminate any disease which can be transmitted by milk. No person may

handle milk to be sold as raw unless he has a physical examination before

any employment requiring him to do so and every 3 months thereafter

while continuing in the employment.

3. The state [board of health] dairy commission shall adopt regulations

governing:

(a) Inspections to determine the health of cows and goats which produce

milk for sale as raw milk.

(b) Inspections of dairy farms which produce milk for sale as raw milk

and establishing minimum standards of cleanliness and sanitation for the

farms.

before it is sold to a consumer.

(d) Other matters connected with the production and sale of raw milk

which the [board] commission deems necessary to protect the public

health.

Sec. 24. NRS 584.210 is hereby amended to read as follows:

584.210 1. Whenever the [health division of the department of

human resources] commission has reasonable grounds to believe that any

applicant or permittee under NRS 584.180 to 584.210, inclusive, is

violating any of the provisions of those sections, or any of the rules,

regulations or specifications adopted by the [state board of health]

commission relative to the sanitation and grading of milk and milk

products, or whenever the results of tests indicate that the facilities, milk

or milk products do not meet those regulations or are not reliable or are

questionable, or when the [health division] commission determines that

the operation in any other manner is inimical and not for the best interests

of the health, safety or welfare of the people of this state, the [health

division of the department of human resources] commission may, after

providing notice and opportunity for a hearing pursuant to the provisions

of subsection 2, refuse to grant a permit or suspend or revoke any or all

permits previously issued.

2. Except as otherwise provided in this subsection, if the [health

division] commission intends to refuse to grant a permit or to suspend or

revoke a permit pursuant to the provisions of subsection 1, the [health

division] commission shall provide to the applicant or permittee, by

certified mail, written notice of the intended action within the period

established pursuant to regulations adopted by the [state board of health.]

commission. The notice must specify the reasons, the legal authority and

the jurisdiction of the [health division] commission for taking the intended

action. Upon receipt of the notice, an applicant or permittee may request a

hearing, and, if so requested, the [health division] commission shall

conduct a hearing pursuant to regulations adopted by the [state board of

health.] commission. If an applicant or permittee does not request a

hearing after being notified pursuant to the provisions of this subsection,

any decision of the [health division] commission made pursuant to this

section is final and not subject to judicial review. Such notice and hearing

is not required and a permit may be summarily disapproved, revoked or

suspended by the [health division] commission if the [health division]

commission finds that, based upon the particular circumstances of the

case, it is in the best interests of the health, safety or welfare of the people

of this state to so proceed.

3. The [health division] commission may conduct the investigations,

summon and compel the attendance of witnesses, require the production of

any records or documents, and provide for the taking of depositions under

the Nevada Rules of Civil Procedure in connection with a hearing

conducted pursuant to the provisions of this section.

4. The findings of the [health division] commission and the judgment

or order must be reduced to writing and filed in the permanent public

records of the [health division.] commission. The findings must state the

reasons why the application for a permit was disapproved or the permit

was suspended or revoked. Copies must be furnished to the applicant or

permittee who may, if he requested and was given a hearing or if his

application or permit was summarily disapproved, revoked or suspended

pursuant to the provisions of subsection 2, file an appeal pursuant to

regulations adopted by the [state board of health.] commission. Upon the

filing of the appeal, the [administrator] chairman of the [health division]

commission or his designee shall appoint a person who did not participate

in the decision of the [health division] commission to conduct a hearing in

accordance with those regulations. The applicant or permittee is entitled to

judicial review of the decision of the person so appointed in the manner

provided by chapter 233B of NRS. Upon the filing for appeal or review,

the enforcement of the [health division’s] commission’s order must be

stayed pending final disposition of the matter. If the order is judicially

affirmed, it becomes final and the stay of enforcement is automatically

vacated.

5. In any case where the [health division] commission refuses to issue

a permit, or suspends or revokes a permit, the applicant or accused is

entitled to submit another application for the consideration of the [health

division.] commission.

6. The [state board of health] commission shall adopt such regulations

as are necessary to carry out the provisions of this section.

Sec. 25. NRS 584.215 is hereby amended to read as follows:

584.215 1. Except as otherwise provided in subsection 2, all testing

of milk or cream purchased on the basis of the amount of butterfat

contained therein must be done by a licensed tester, who shall supervise

and is responsible for the operation of the Babcock test of milk or cream.

2. Methods of testing such milk, other than the Babcock test, may be

used if approved by the [commissioner of food and drugs.] commission. If

such approval is given, equipment suitable for the performance of the

Babcock test must be provided and maintained.

3. A license may be issued to a tester by the [commissioner of food

and drugs. The commissioner] commission. The commission shall

examine the qualifications of the applicant for a license, and every

applicant must satisfy the [commissioner] commission of his

qualifications and comply with the provisions in NRS 584.215 to 584.285,

inclusive, before a license may be issued to him.

4. If a method of testing other than the Babcock test is used, the tester

must be licensed to perform that method of testing and the Babcock test.

Sec. 26. NRS 584.216 is hereby amended to read as follows:

584.216 1. An applicant for the issuance or renewal of a milk tester’s

license shall submit to the [commissioner of food and drugs] commission

the statement prescribed by the welfare division of the department of

human resources pursuant to NRS 425.520. The statement must be

completed and signed by the applicant.

2. The [commissioner] commission shall include the statement

required pursuant to subsection 1 in:

(a) The application or any other forms that must be submitted for the

issuance or renewal of the license; or

(b) A separate form prescribed by the [commissioner.] commission.

3. A milk tester’s license may not be issued or renewed by the

[commissioner] commission if the applicant:

(a) Fails to submit the statement required pursuant to subsection 1; or

(b) Indicates on the statement submitted pursuant to subsection 1 that he

is subject to a court order for the support of a child and is not in

compliance with the order or a plan approved by the district attorney or

other public agency enforcing the order for the repayment of the amount

owed pursuant to the order.

4. If an applicant indicates on the statement submitted pursuant to

subsection 1 that he is subject to a court order for the support of a child

and is not in compliance with the order or a plan approved by the district

attorney or other public agency enforcing the order for the repayment of

the amount owed pursuant to the order, the [commissioner] commission

shall advise the applicant to contact the district attorney or other public

agency enforcing the order to determine the actions that the applicant may

take to satisfy the arrearage.

Sec. 27. NRS 584.217 is hereby amended to read as follows:

584.217 1. If the [commissioner of food and drugs] commission

receives a copy of a court order issued pursuant to NRS 425.540 that

provides for the suspension of all professional, occupational and

recreational licenses, certificates and permits issued to a person who is the

holder of a milk tester’s license, the [commissioner] commission shall

deem the license issued to that person to be suspended at the end of the

30th day after the date on which the court order was issued unless the

[commissioner] commission receives a letter issued to the holder of the

license by the district attorney or other public agency pursuant to NRS

425.550 stating that the holder of the license has complied with the

subpoena or warrant or has satisfied the arrearage pursuant to NRS

425.560.

2. The [commissioner of food and drugs] commission shall reinstate a

milk tester’s license that has been suspended by a district court pursuant to

NRS 425.540 if the [commissioner] commission receives a letter issued by

the district attorney or other public agency pursuant to NRS 425.550 to the

person whose license was suspended stating that the person whose license

was suspended has complied with the subpoena or warrant or has satisfied

the arrearage pursuant to NRS 425.560.

Sec. 28. NRS 584.220 is hereby amended to read as follows:

584.220 1. Every creamery, shipping station, milk factory, cheese

factory, ice cream factory, condensery, or any person, firm or corporation

receiving or purchasing milk or cream on the basis of butterfat contained

therein [shall be] is required to hold a license so to do.

2. The license [shall] must be issued to [such] the creamery, shipping

station, milk factory, condensery, ice cream factory, cheese factory, or

person, firm or corporation by the [commissioner of food and drugs]

commission upon complying with all sanitary laws, rules and regulations

of the State of Nevada, and upon complying with the provisions of NRS

584.215 to 584.285, inclusive, and upon payment of a license fee as

provided in NRS 584.225.

Sec. 29. NRS 584.225 is hereby amended to read as follows:

584.225 1. The fee for issuing and renewing a milk tester’s license

[shall be] is $10 for a full year or fraction thereof.

2. All licenses required under NRS 584.215 to 584.285, inclusive,

[shall] expire at the end of each calendar year.

3. The provisions of this section [shall] do not apply to [individuals,]

natural persons, hotels, restaurants or boardinghouses buying milk or

cream for private use.

[4. All moneys received by the commissioner of food and drugs shall

be accounted for by him annually to the state treasury. Such moneys as are

received by the commissioner of food and drugs under the provisions of

NRS 584.215 to 584.285, inclusive, may be used by him for expenses

necessary or incident to the carrying into effect of NRS 584.215 to

584.285, inclusive, and for performing such duties as are required by him

thereunder. The overplus, if any, shall be paid into the state treasury

annually at the time of making his annual accounting.]

Sec. 30. NRS 584.230 is hereby amended to read as follows:

584.230 A license may be revoked by the [commissioner of food and

drugs] commission if, after due notice, the licensee fails or has failed to

comply with the laws, rules and regulations under which the license was

granted.

Sec. 31. NRS 584.235 is hereby amended to read as follows:

584.235 The [commissioner of food and drugs] commission shall

make uniform regulations for the proper enforcement of NRS 584.215 to

584.285, inclusive. The regulations must be printed in the state printing

division of the department of administration and distributed by the

[commissioner of food and drugs] commission upon application therefor

to licensed or other dairymen, creameries and other persons interested in

them.

Sec. 32. NRS 584.240 is hereby amended to read as follows:

584.240 1. A licensed tester shall, in addition to the records required

to be kept by NRS 584.215 to 584.285, inclusive, record all tests made by

him in a permanent book of record, a form for which [shall] must be

supplied at cost or approved by the [commissioner of food and drugs,]

commission, and tests [shall] must be indelibly recorded in the record

book in such a manner as to identify the patron whose milk or cream has

been tested, and also in such a manner as to prevent erasures or changes

being made in these tests.

2. The record [shall] must be at all times during business hours kept

open for inspection by the [commissioner of food and drugs or his]

commission or its agents, or by any officer of the city and county board of

health, or by any peace officer of the city, county or state, or by any patron

who may be delivering milk or cream to the plant or place where such

tests are made.

Sec. 33. NRS 584.250 is hereby amended to read as follows:

584.250 All cream sold in the State of Nevada on the basis of the

richness or the percentage of milk fat contained therein [shall] must be

tested by the Babcock test, using a procedure approved by the

[commissioner of food and drugs.] commission.

Sec. 34. NRS 584.255 is hereby amended to read as follows:

584.255 The [commissioner of food and drugs] commission shall,

from time to time, inspect and examine as to their accuracy, or their

adaptability to give accurate results, all glassware, measures, scales,

weights and other apparatus used in creameries and factories of dairy

products, where milk and cream are purchased, to determine the amount of

percentage of fat in milk or cream.

Sec. 35. NRS 584.265 is hereby amended to read as follows:

584.265 The [commissioner of food and drugs or his] commission’s

duly authorized representative or appointee shall make analyses of all

samples of milk or cream deemed necessary for the enforcement of NRS

584.215 to 584.285, inclusive.

Sec. 36. NRS 584.270 is hereby amended to read as follows:

584.270 The [commissioner of food and drugs,] commission, on

complaint of any licensed milk producer, showing good cause therefor,

that the tests made by any licensed tester are incorrect or inaccurate, shall

investigate and test milk from [such] the producer, at the source, until [he]

the commission is satisfied as to the correctness or incorrectness of [such]

the complaint.

Sec. 37. NRS 584.275 is hereby amended to read as follows:

584.275 1. It is unlawful for any person for himself or as the agent,

servant, employee or officer of any person, firm or corporation receiving

or purchasing milk or cream on the basis of the amount of butterfat

contained therein to:

(a) Underread, overread or otherwise fraudulently manipulate the

official test used for determining the percent of butterfat in milk or cream;

(b) Falsify the records thereof; or

approved by the [commissioner of food and drugs.] commission.

2. In all tests for cream, the cream must be weighed into the bottle

used for testing.

Sec. 38. NRS 584.325 is hereby amended to read as follows:

584.325 As used in NRS 584.325 to 584.690, inclusive, unless the

context otherwise requires, the words and terms defined in NRS [584.330]

584.335 to 584.385, inclusive, have the meanings ascribed to them in

those sections.

Sec. 39. NRS 584.410 is hereby amended to read as follows:

584.410 The purposes of NRS 584.325 to 584.690, inclusive, are:

1. To provide [funds] money for the administration and enforcement

of [NRS 584.325 to 584.690, inclusive,] the provisions of this chapter by

assessments to be paid by producers of fluid milk or fluid cream, or both,

and from licenses issued to distributors in the manner prescribed herein.

2. To authorize and enable the commission to prescribe marketing

areas and to fix prices at which fluid milk or fluid cream, or both, may be

sold by producers, distributors and retailers, which areas and prices are

necessary due to varying factors of costs of production, health regulations,

transportation and other factors in the marketing areas of this state , [;] but

the price of fluid milk or fluid cream within any marketing area [shall]

must be uniform for all purchasers of fluid milk or fluid cream of similar

grade or quality under like terms and conditions.

3. To authorize and enable the commission to formulate stabilization

and marketing plans subject to the limitations prescribed in NRS 584.325

to 584.690, inclusive, with respect to the contents of [such] the

stabilization and marketing plans and to declare [such] the plans in effect

for any marketing area.

4. To enable the dairy industry with the aid of the state to correct

existing evils, develop and maintain satisfactory marketing conditions, and

bring about a reasonable amount of stability and prosperity in the

production and marketing of fluid milk and fluid cream.

Sec. 40. NRS 584.440 is hereby amended to read as follows:

584.440 1. The members of the commission shall meet at least once

each month and may meet at the call of the chairman or at the request of a

majority of the members of the commission.

2. The commission shall conduct all hearings authorized pursuant to

[NRS 584.325 to 584.690, inclusive.] the provisions of this chapter.

3. A majority of the members constitutes a quorum and a majority vote

of the commission is required on all action taken by the commission.

4. The commission may retain an attorney to assist the commission in

the administration of its duties.

Sec. 41. NRS 584.455 is hereby amended to read as follows:

584.455 1. The commission shall appoint an executive director, who

shall serve ex officio as its secretary.

2. The executive director may appoint such assistants, deputies, agents,

experts and other employees as are necessary for the administration of

[NRS 584.325 to 584.690, inclusive,] the provisions of this chapter,

prescribe their duties and fix their salaries.

3. The executive director is in the unclassified service of the state. All

assistants, deputies, agents, experts and other employees are in the

classified service.

4. The executive director may be removed by the commission.

Sec. 42. NRS 584.460 is hereby amended to read as follows:

584.460 1. There is hereby created in the state treasury a special

revenue fund designated as the dairy commission fund. [All] Except as

otherwise required in NRS 584.670, all money received by the

commission pursuant to [NRS 584.325 to 584.690, inclusive,] the

provisions of this chapter must be paid into the fund and must be

expended solely for the [enforcement of NRS 584.176 to 584.179,

inclusive, and 584.325 to 584.690, inclusive.] administration and

enforcement of the provisions of this chapter.

2. The interest and income earned on the money in the dairy

commission fund, after deducting any applicable charges, must be credited

to the fund.

Sec. 43. NRS 584.470 is hereby amended to read as follows:

584.470 1. For the purposes of [NRS 584.325 to 584.690, inclusive,]

this chapter, the commission may hold hearings, administer oaths, certify

to official acts, take depositions, issue subpoenas, summon witnesses and

examine the books and records of any producer, distributor or retailer.

Such an examination may be made at any reasonable time or place by the

commission or any agent of the commission.

2. The district court for the county in which any investigation is being

conducted by the commission may compel the attendance of witnesses, the

giving of testimony and the production of books and papers as required by

any subpoena issued by the commission.

3. In case of the refusal of any witness to attend or testify or produce

any papers required by such subpoena, the commission may report to the

district court for the county in which the investigation is pending by

petition, setting forth:

(a) That due notice has been given of the time and place of attendance

of the witness or the production of the books and papers;

(b) That the witness has been subpoenaed in the manner prescribed in

this chapter; and

papers required by subpoena before the commission in the investigation

named in the subpoena, or has refused to answer questions propounded to

him in the course of such investigation,

and asking an order of the court compelling the witness to attend and

testify or produce the books or papers before the commission.

4. The court, upon petition of the commission, shall enter an order

directing the witness to appear before the court at a time and place to be

fixed by the court in such order, the time to be not more than 10 days from

the date of the order, and then and there show cause why he has not

attended or testified or produced the books or papers before the

commission. A certified copy of the order [shall] must be served upon the

witness. If it [shall appear] appears to the court that the subpoena was

regularly issued by the commission, the court shall thereupon enter an

order that the witness appear before the commission at the time and place

fixed in the order and testify or produce the required books or papers, and

upon failure to obey the order, the witness [shall] must be dealt with as for

contempt of court.

Sec. 44. NRS 584.495 is hereby amended to read as follows:

584.495 The commission shall enforce the provisions of [NRS

584.325 to 584.690, inclusive,] this chapter and any stabilization and

marketing plan initiated pursuant to the provisions of [those sections.]

NRS 584.325 to 584.690, inclusive.

Sec. 45. NRS 584.500 is hereby amended to read as follows:

584.500 The commission is hereby declared to be the instrumentality

of this state for the purpose of administering and enforcing the provisions

of [NRS 584.325 to 584.690, inclusive,] this chapter and to execute the

legislative intent [herein expressed,] expressed in this chapter, and is

hereby vested with the administrative authority described in [NRS 584.325

to 584.690, inclusive.] this chapter.

Sec. 46. NRS 584.543 is hereby amended to read as follows:

584.543 Constables, police officers and sheriffs may , upon request,

render assistance to the commission, any member of the commission or

any authorized representative of the commission, in the enforcement of the

provisions of [NRS 584.325 to 584.690, inclusive, upon request.] this

chapter.

Sec. 47. NRS 584.573 is hereby amended to read as follows:

584.573 1. A distributor shall not sell a substitute dairy product, as

defined in NRS 584.176, below its cost to him.

2. A distributor who sells or distributes a substitute dairy product shall

file with the commission a statement of the cost of the substitute dairy

product to him. The statement must be supplemented periodically as

required by regulations adopted by the [state dairy] commission. The

commission shall keep all statements confidential except when used in a

judicial proceeding or an administrative proceeding relating to the

provisions of this chapter.

Sec. 48. NRS 584.630 is hereby amended to read as follows:

584.630 [1. A distributor who is subject to any stabilization and

marketing plan as established by the commission shall:

(a) Pay to the commission an assessment of one-half cent per pound of

milk fat contained in all fluid milk or fluid cream, or both, produced by

him or purchased from a producer in this state;

(b) Deduct from any payment due a producer in this state and pay to the

commission an assessment of one-half cent per pound of milk fat

contained in all fluid milk or fluid cream, or both, purchased from that

producer, and pay to the commission the same amount on the same

material if produced by the distributor; and

contained in all fluid milk or fluid cream, or both, imported into this state

in bulk or as finished products and not otherwise subject to assessment.

2. The assessments received by the commission must be used in the

administration and enforcement of NRS 584.325 to 584.690, inclusive.]

The commission shall assess each distributor of fluid milk or fluid

cream a sum not exceeding one-quarter cent per pound on all fluid milk

or fluid cream distributed by the distributor.

Sec. 49. NRS 584.633 is hereby amended to read as follows:

584.633 1. The commission shall assess each distributor of butter a

sum not exceeding 2 cents per pound on all butter distributed by the

distributor.

2. [Except as otherwise provided in subsection 3, the] The commission

shall assess all distributors of fresh dairy products a sum not exceeding 4

cents per gallon on all ice cream, sherbet or ice cream or ice milk mixes,

and a sum not exceeding 2 cents per pound on all cottage cheese and

yogurt distributed by the distributors.

[3. In determining the amount to be assessed a distributor pursuant to

subsection 2, the commission shall credit the distributor with any amount

which, pursuant to paragraph (a) or (c) of subsection 1 of NRS 584.630,

was assessed and paid upon fluid milk and fluid cream which was then

used in manufacturing the product subject to the assessment prescribed in

subsection 2.]

Sec. 50. NRS 584.635 is hereby amended to read as follows:

584.635 1. The commission may lower the rate of any assessment

required to be paid under NRS 584.630 or 584.633, whenever it finds that

the cost of administering the provisions of [NRS 584.325 to 584.690,

inclusive,] this chapter can be defrayed from revenues derived from the

lower rates.

2. A distributor shall pay the amount of the assessment to the

commission on or before the 15th of the month following the month during

which the fluid milk or fluid cream was received or the butter or fresh

dairy product was distributed. If the assessment for the month is less than

$3, the distributor may delay payment for 3 months or until the cumulative

assessments are $3 or more, whichever occurs first.

3. If payments of assessments are not made as provided in subsection

2, the commission shall charge, as a penalty for the late payment, the

amount of $10 or [1 percent per month] 10 percent of the total amount due

but remaining unpaid, whichever is greater.

Sec. 51. NRS 584.660 is hereby amended to read as follows:

584.660 1. The commission shall, within 30 days [prior to] before

each general session of the legislature, submit to the governor a full and

true report of the transactions [under NRS 584.325 to 584.690, inclusive,]

pursuant to this chapter during the preceding biennium, including a

complete statement of receipts and expenditures during [such] that period,

together with its legislative recommendations.

2. This report is a public record and must be made available for

public inspection within a reasonable time after it is submitted to the

governor.

Sec. 52. NRS 584.665 is hereby amended to read as follows:

584.665 In addition to the compilation of information pertaining to

fluid milk and fluid cream from the reports required by NRS 584.325 to

584.690, inclusive, the commission shall collect, assemble, compile and

distribute statistical data relative to fluid milk, fluid cream, other milk and

milk products, and such other information as may relate to the dairy

industry and the provisions of [NRS 584.325 to 584.690, inclusive.] this

chapter. For the purposes of this section, the commission may require

such information as it deems necessary from distributors, producers,

cooperative associations of producers, retailers and others who are

engaged in the production, sale, distribution, handling or transportation of

fluid milk, fluid cream or other dairy products.

Sec. 53. NRS 584.670 is hereby amended to read as follows:

584.670 1. The violation of any provision of NRS 584.325 to

584.690, inclusive, or of any stabilization and marketing plan, including

any price requirements of such a plan, or of any of the unfair practice

provisions set forth in [such] those sections, is a misdemeanor, and also is

ground for revocation or suspension of a license in the manner set forth in

NRS 584.325 to 584.690, inclusive.

2. Every distributor [must] shall pay for fluid milk or fluid cream

delivered to him or it at the time and in the manner specified in the

contract with the producer. Failure to make such a payment is ground for

refusal, suspension or revocation of a license in the manner set forth in

NRS 584.325 to 584.690, inclusive.

3. In addition to any other penalty provided by NRS 584.325 to

584.690, inclusive, the commission may impose a penalty of not more

than $1,000 for each violation, to be recovered by the commission in a

civil action in a court of competent jurisdiction. All sums recovered under

this subsection must be deposited with the state treasurer [to the credit of

the

dairy commission fund and expended solely for the enforcement of NRS

584.325 to 584.690, inclusive.] for credit to the state general fund.

Sec. 54. NRS 584.675 is hereby amended to read as follows:

584.675 1. The commission may refuse to grant any license herein

provided and may revoke or suspend any such license as the case may

require when it is satisfied that any applicant or licensee has violated any

provision of [NRS 584.325 to 584.690, inclusive;] this chapter, but no

order [shall] may be made refusing, revoking or suspending any license

except after hearing upon at least 10 days’ notice to the applicant or

licensee.

2. The decision may include an order refusing, revoking or suspending

the license applied for or held by the respondent, or fixing such other

conditional and probationary orders as may be proper for the enforcement

of [NRS 584.325 to 584.690, inclusive.] this chapter.

3. After any decision, including any conditional or probationary

orders, should the respondent fail, refuse or neglect to comply with any

such orders, the commission may suspend or revoke the license in

accordance with the procedure provided in this section.

4. Previous violation by any applicant or by any person connected with

the applicant of any provision of [NRS 584.325 to 584.690, inclusive,

shall be good and sufficient] this chapter is ground for denial, revocation

or suspension of a license.

Sec. 55. NRS 439.240 is hereby amended to read as follows:

439.240 1. The University of Nevada School of Medicine shall

maintain the state hygienic laboratory, heretofore established pursuant to

the provisions of chapter 230, Statutes of Nevada 1909, and may establish

and maintain such branch laboratories as may be necessary.

2. The purpose of the state hygienic laboratory is:

(a) To make available, at such charges as may be [determined upon,]

established, to health officials , the state dairy commission and licensed

physicians of the state , proper laboratory facilities for the prompt

diagnosis of communicable diseases.

(b) To make necessary examinations and analyses of water, natural ice,

sewage, milk, food and clinical material.

diseases.

(d) To undertake such other technical and laboratory duties as are in the

interest of the health of the general public.

3. The person in charge of the state hygienic laboratory, or his

designee, must be a skilled bacteriologist.

4. The person in charge of the state hygienic laboratory may have such

technical assistants as that person, in cooperation with the University of

Nevada School of Medicine, considers necessary.

5. Reports of investigations conducted at the state hygienic laboratory

may be published from time to time in bulletins and circulars.

Sec. 56. NRS 439.540 is hereby amended to read as follows:

439.540 Nothing contained in this chapter [shall] may be construed as

modifying or altering the powers conferred by law upon the commissioner

of food and drugs with respect to the adulteration, mislabeling or

misbranding of foods, drugs, medicines and liquors, or the powers

conferred by law upon the state dairy commission with respect to the

weighing and testing of dairy products to prevent fraud.

Sec. 57. NRS 584.330 and 584.545 are hereby repealed.

Sec. 58. Any administrative regulations governing milk or milk

products adopted by the state board of health, the commissioner of food

and drugs or the health division of the department of human resources,

shall be deemed to have been adopted by the state dairy commission of the

department of business and industry and remain in effect until amended or

repealed by the commission.

Sec. 59. 1. This section becomes effective upon passage and

approval.

2. Sections 1 to 47, inclusive, and 51 to 58, inclusive, of this act

become effective upon passage and approval for the purpose of adopting

regulations and conducting any preliminary activities necessary to carry

out the provisions of this act in a timely manner, and on

January 1, 2002, for all other purposes.

3. Sections 48, 49, and 50 of this act become effective on July 1, 2001.

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