Senate Bill No. 350

Senate Bill No. 350-Committee on Natural Resources

May 2, 1997
____________

Referred to Committee on Natural Resources

SUMMARY--Makes various changes concerning direct sale of farm products by producers. (BDR 50-1515)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to farm products; conferring exclusive jurisdiction over the direct sale of farm products by the producer and farmers' markets upon the division of agriculture of the department of business and industry; exempting certain businesses from the business tax; 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 576 of NRS is hereby amended by adding thereto a new section to read as follows:
1. The division has exclusive jurisdiction over the direct sale of farm products by a producer to any person including the regulation of farmers' markets.
2. The division shall require any person authorized to establish a farmers' market to be responsible for the collection of any taxes required pursuant to chapters 372, 374 and 377 of NRS.
3. If the division authorizes a person to establish a farmers' market, that person shall be deemed to be the employer as defined in NRS 616A.230 for the purpose of providing coverage under the Nevada Industrial Insurance Act.
4. It is unlawful for any person to sell, within a farmers' market, any product which is not a farm product.
5. The division shall adopt any regulations it deems necessary to carry out the provisions of this section. Such regulations may include requirements for the sale of conventional and organic products, requirements for the registration of producers who sell products at farmers' markets and fees for regulatory or other services provided pursuant to this section which approximate the cost to the division for providing the regulatory or other service.
6. As used in this section, unless the context otherwise requires the term "farmers' market" means a place of business where a producer of farm products can bring farm products for direct sale to consumers. The term includes a place of business where a person rents space to producers for the sale of farm products.
Sec. 2 NRS 244.335 is hereby amended to read as follows:
244.335 1. Except as otherwise provided in [subsection 2,] subsections 2 and 3, the board of county commissioners may:
(a) Regulate all character of lawful trades, callings, industries, occupations, professions and business conducted in its county outside of the limits of incorporated cities and towns.
(b) Except as otherwise provided in NRS 244.3359, fix, impose and collect a license tax for revenue or for regulation, or for both revenue and regulation, on such trades, callings, industries, occupations, professions and business.
2. The county license boards have the exclusive power in their respective counties to regulate entertainers employed by an entertainment by referral service and the business of conducting a dancing hall, escort service, entertainment by referral service or gambling game or device permitted by law, outside of an incorporated city. The county license boards may fix, impose and collect license taxes for revenue or for regulation, or for both revenue and regulation, on such employment and businesses.
3. Neither board may license, impose a tax or fee on, or regulate the direct sale of farm products by the producer or regulate farmers' markets, as described in section 1 of this act.
4. No license to engage in any type of business may be granted unless the applicant for the license signs an affidavit affirming that the business has complied with the provisions of chapter 364A of NRS. The county license board shall provide upon request an application for a business license pursuant to chapter 364A of NRS.
[4.] 5. No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license presents written evidence that:
(a) The department of taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or
(b) Another regulatory agency of the state has issued or will issue a license required for this activity.
[5.] 6. Any license tax levied for the purposes of NRS 244.3358 or 244A.597 to 244A.655, inclusive, constitutes a lien upon the real and personal property of the business upon which the tax was levied until the tax is paid. The lien has the same priority as a lien for general taxes. The lien must be enforced in the following manner:
(a) By recording in the office of the county recorder, within 6 months after the date on which the tax became delinquent or was otherwise determined to be due and owing, a notice of the tax lien containing the following:
(1) The amount of tax due and the appropriate year;
(2) The name of the record owner of the property;
(3) A description of the property sufficient for identification; and
(4) A verification by the oath of any member of the board of county commissioners or the county fair and recreation board; and
(b) By an action for foreclosure against the property in the same manner as an action for foreclosure of any other lien, commenced within 2 years after the date of recording of the notice of the tax lien, and accompanied by appropriate notice to other lienholders.
[6.] 7. The board of county commissioners may delegate the authority to enforce liens from taxes levied for the purposes of NRS 244A.597 to 244A.655, inclusive, to the county fair and recreation board. If the authority is so delegated, the board of county commissioners shall revoke or suspend the license of a business upon certification by the county fair and recreation board that the license tax has become delinquent, and shall not reinstate the license until the tax is paid. Except as otherwise provided in NRS 244.3357, all information concerning license taxes levied by an ordinance authorized by this section or other information concerning the business affairs or operation of any licensee obtained as a result of the payment of such license taxes or as the result of any audit or examination of the books by any authorized employee of a county fair and recreation board of the county for any license tax levied for the purpose of NRS 244A.597 to 244A.655, inclusive, is confidential and must not be disclosed by any member, officer or employee of the county fair and recreation board or the county imposing the license tax unless the disclosure is authorized by the affirmative action of a majority of the members of the appropriate county fair and recreation board. Continuing disclosure may be so authorized under an agreement with the department of taxation for the exchange of information concerning taxpayers.
Sec. 3 NRS 268.095 is hereby amended to read as follows:
268.095 1. The city council or other governing body of each incorporated city in the State of Nevada, whether organized under general law or special charter, may:
(a) Except as otherwise provided in subsection 2 and NRS 268.0968, fix, impose and collect for revenues or for regulation, or both, a license tax on all character of lawful trades, callings, industries, occupations, professions and businesses conducted within its corporate limits.
(b) Assign the proceeds of any one or more such license taxes to the county within which the city is situated for the purpose or purposes of making the proceeds available to the county:
(1) As a pledge as additional security for the payment of any general obligation bonds issued pursuant to NRS 244A.597 to 244A.655, inclusive;
(2) For redeeming any general obligation bonds issued pursuant to NRS 244A.597 to 244A.655, inclusive;
(3) For defraying the costs of collecting or otherwise administering any such license tax so assigned, of the county fair and recreation board and of officers, agents and employees hired thereby, and of incidentals incurred thereby;
(4) For operating and maintaining recreational facilities under the jurisdiction of the county fair and recreation board;
(5) For improving, extending and bettering recreational facilities authorized by NRS 244A.597 to 244A.655, inclusive; and
(6) For constructing, purchasing or otherwise acquiring such recreational facilities.
(c) Pledge the proceeds of any tax imposed on the revenues from the rental of transient lodging pursuant to this section for the payment of any general obligations issued by the city for a purpose authorized by the City Bond Law, NRS 268.672 to 268.740, inclusive.
(d) Use the proceeds of any tax imposed pursuant to this section on the revenues from the rental of transient lodging:
(1) To pay the principal, interest or any other indebtedness on any general or special obligations issued by the city pursuant to the City Bond Law, NRS 268.672 to 268.740, inclusive;
(2) For the expense of operating or maintaining, or both, any facilities of the city; and
(3) For any other purpose for which other money of the city may be used.
2. A city council or other governing body may not license, impose a tax or fee on, or regulate the direct sale of farm products by the producer or regulate farmers' markets, as described in section 1 of this act.
3. The proceeds of any tax imposed pursuant to this section that are pledged for the repayment of general obligations may be treated as "pledged revenues" for the purposes of NRS 350.020.
[3.] 4. No license to engage in any type of business may be granted unless the applicant for the license signs an affidavit affirming that the business has complied with the provisions of chapter 364A of NRS. The city licensing agency shall provide upon request an application for a business license pursuant to chapter 364A of NRS.
[4.] 5. No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license presents written evidence that:
(a) The department of taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or
(b) Another regulatory agency of the state has issued or will issue a license required for this activity.
[5.] 6. Any license tax levied under the provisions of this section constitutes a lien upon the real and personal property of the business upon which the tax was levied until the tax is paid. The lien has the same priority as a lien for general taxes. The lien must be enforced in the following manner:
(a) By recording in the office of the county recorder, within 6 months following the date on which the tax became delinquent or was otherwise determined to be due and owing, a notice of the tax lien containing the following:
(1) The amount of tax due and the appropriate year;
(2) The name of the record owner of the property;
(3) A description of the property sufficient for identification; and
(4) A verification by the oath of any member of the board of county commissioners or the county fair and recreation board; and
(b) By an action for foreclosure against such property in the same manner as an action for foreclosure of any other lien, commenced within 2 years after the date of recording of the notice of the tax lien, and accompanied by appropriate notice to other lienholders.
[6.] 7. The city council or other governing body of each incorporated city may delegate the power and authority to enforce such liens to the county fair and recreation board. If the authority is so delegated, the governing body shall revoke or suspend the license of a business upon certification by the board that the license tax has become delinquent, and shall not reinstate the license until the tax is paid. Except as otherwise provided in NRS 268.0966, all information concerning license taxes levied by an ordinance authorized by this section or other information concerning the business affairs or operation of any licensee obtained as a result of the payment of those license taxes or as the result of any audit or examination of the books of the city by any authorized employee of a county fair and recreation board for any license tax levied for the purpose of NRS 244A.597 to 244A.655, inclusive, is confidential and must not be disclosed by any member, official or employee of the county fair and recreation board or the city imposing the license tax unless the disclosure is authorized by the affirmative action of a majority of the members of the appropriate county fair and recreation board. Continuing disclosure may be so authorized under an agreement with the department of taxation for the exchange of information concerning taxpayers.
[7.] 8. The powers conferred by this section are in addition and supplemental to, and not in substitution for, and the limitations imposed by this section do not affect the powers conferred by, any other law. No part of this section repeals or affects any other law or any part thereof, it being intended that this section provide a separate method of accomplishing its objectives, and not an exclusive one.
Sec. 4 NRS 269.170 is hereby amended to read as follows:
269.170 1. [The] Except as otherwise provided in subsection 2, the town board or board of county commissioners may in any unincorporated town:
(a) Fix and collect a license tax on, and regulate, having due regard to the amount of business done by each person or firm so licensed, all places of business and amusement so licensed, as follows:
(1) Artisans, artists, assayers, auctioneers, bakers, banks and bankers, barbers, boilermakers, cellars and places where soft drinks are kept or sold, clothes cleaners, foundries, laundries, lumberyards, manufacturers of soap, soda, borax or glue, markets, newspaper publishers, pawnbrokers, funeral directors and wood and coal dealers.
(2) Bootmakers, cobblers, dressmakers, milliners, shoemakers, tailors.
(3) Boardinghouses, hotels, lodginghouses, restaurants and refreshment saloons.
(4) Barrooms, gaming, manufacturers of liquors and other beverages, saloons.
(5) Billiard tables, bowling alleys, caravans, circuses, concerts and other exhibitions, dance houses, melodeons, menageries, shooting galleries, skating rinks, theaters.
(6) Corrals, hay yards, livery and sale stables, wagon yards.
(7) Electric light companies, illuminating gas companies, power companies, telegraph companies, telephone companies, water companies.
(8) Carts, drays, express companies, freight companies, job wagons, omnibuses and stages.
(9) Brokers, commission merchants, factors, general agents, mercantile agents, merchants and traders, stockbrokers.
(10) Drummers, hawkers, peddlers, solicitors.
(11) Insurance agents, brokers, analysts, adjusters and managing general agents within the limitations and under the conditions prescribed in NRS 680B.020.
(b) Fix and collect a license tax upon all professions, trades or business within the town not specified in paragraph (a).
2. A town board or board of county commissioners may not license, impose a tax or fee on, or regulate the direct sale of farm products by the producer or regulate farmers' markets, as described in section 1 of this act.
3. No license to engage in business as a seller of tangible personal property may be granted unless the applicant for the license presents written evidence that:
(a) The department of taxation has issued or will issue a permit for this activity, and this evidence clearly identifies the business by name; or
(b) Another regulatory agency of the state has issued or will issue a license required for this activity.
[3.] 4. Any license tax levied for the purposes of NRS 244A.597 to 244A.655, inclusive, constitutes a lien upon the real and personal property of the business upon which the tax was levied until the tax is paid. The lien must be enforced in the same manner as liens for ad valorem taxes on real and personal property. The town board or other governing body of the unincorporated town may delegate the power to enforce such liens to the county fair and recreation board.
[4.] 5. The governing body or the county fair and recreation board may agree with the department of taxation for the continuing exchange of information concerning taxpayers.
Sec. 5 Chapter 364A of NRS is hereby amended by adding thereto a new section to read as follows:
1. A business which engages solely in the direct sale of farm products by a producer to other persons or of establishing one or more farmers' markets, or any combination thereof, is exempt from the provisions of this chapter.
2. As used in this section, unless the context otherwise requires the term:
(a) "Farm product" has the meaning ascribed to it in NRS 576.0155.
(b) "Farmers' market" has the meaning ascribed to it in section 1 of this act.
Sec. 6. NRS 446.020 is hereby amended to read as follows:
446.020 1. Except as limited by subsection 2, "food establishment" means any place, structure, premises, vehicle or vessel, or any part thereof, in which any food intended for ultimate human consumption is manufactured or prepared by any manner or means whatever, or in which any food is sold, offered or displayed for sale or served.
2. The term does not include:
(a) Private homes;
(b) Fraternal or social clubhouses at which attendance is limited to members of the club;
(c) Vehicles operated by common carriers engaged in interstate commerce;
(d) Any establishment in which religious, charitable and other nonprofit organizations sell food occasionally to raise money or in which charitable organizations receive salvaged food in bulk quantities for free distribution, unless the establishment is open on a regular basis to sell food to members of the general public;
(e) Any establishment where animals are slaughtered which is regulated and inspected by the division of agriculture of the department of business and industry;
(f) Dairy farms and plants which process milk and products of milk or frozen desserts which are regulated under chapter 584 of NRS; [or]
(g) The premises of a wholesale dealer of alcoholic beverages licensed under chapter 369 of NRS who handles only those beverages which are in sealed containers [.] ; or
(h) Premises, or that portion of premises, on which only farm products are sold directly by the producer as described in section 1 of this act, even if raw samples of a product are offered to customers.
Sec. 7. NRS 585.190 is hereby amended to read as follows:
585.190 1. The provisions of this chapter regarding the selling of foods, drugs, devices or cosmetics shall be considered to include:
(a) The manufacture, production, processing, packing, exposure, offer, possession and holding of any such article for sale;
(b) The sale, dispensing, and giving of any such article; and
(c) The supplying or applying of any such articles in the conduct of any food, drug or cosmetic establishment.
2. The provisions of this chapter do not apply to [the] :
(a) The operation of any official establishment as defined in NRS 583.375 [.] ; or
(b) The direct sale of farm products by the producer or the establishment of a farmers' market, as described in section 1 of this act, even if raw samples of a product are offered to customers.
Sec. 8. NRS 244.336, 244.337, 244.338, 268.091, 268.092 and 268.093 are hereby repealed.
Sec. 9. This act becomes effective upon passage and approval.

LEADLINES OF REPEALED SECTIONS

244.336Farmers' markets: Definitions.
244.337Farmers' markets: Licensing and regulation.
244.338Farmers' markets: Responsibilities of licensee; unlawful acts.
268.091Farmers' markets: Definitions.
268.092Farmers' markets: Licensing and regulation.
268.093Farmers' markets: Responsibilities of licensee; unlawful acts.