STATE OF NEVADA 

LEGISLATIVE COUNSEL BUREAU 

LEGISLATIVE BUILDING 

401 S, CARSON STREET 

CARSON CITY, NEVADA 89701-4747 

Fax No.: (775) 684-6600 

RICK COMBS, Director 

(775) 684-6800 

Anna Vickrey 

Operations Manager-Food Safety 

Food and Nutrition Division 

Nevada Department of Agriculture 

403 South 21st Street 

September 9, 2016 

Sparks, Nevada 89431 

Re: LCB File No. R023-16 

LEGISLATIVE COMMISSION (775) 684-6800 

MICHAEL ROBERSON, Senator, Chairman 

Rick Combs, Director; Secretary 

INTERIM FINANCE COMMITTEE (775) 684-6821 

PAUL ANDERSON, Assemblyman, Chairma11 

Cindy Jones, Fiscal A11alyst 

Mark Krmpotic, Fiscal Am,lyst 

BRENDA J. ERDOES, Legislative Co1111sel (775) 684-6830 

ROCKY COOPER, Legislative Auditor (775) 684-6815 

SUSAN E. SCHOLLEY, Research Director (775) 684-6825 

Dear Ms. Vickrey: 

(_) 

Regulation R023-16 adopted by the State Dairy Commission has been filed today 

with the Secretary of State pursuant to NRS 233B.067 or 233B.0675, as appropriate. As 

provided in NRS 233B.070, this regulation becomes effective upon filing, unless 

otherwise indicated. 

Enclosed are two copies of the regulation bearing the stamp of the Secretary of 

State which indicates that it has been filed. One copy is for your records and the other is 

for delivery to the State Library and Archives Administrator pursuant to subsection 6 of 

NRS 233B.070. 

Sincerely, _ _ > - -

D~ich 

Deputy Legislative Counsel 

Brenda J. Erdoes 

Legislative Counsel 

DPR/slj 

Enclosure 

(NSPO Rev. 12-15) (0) 1578E 
SECRETARY OF STATE 

FILING DATA 

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Form For Filing 

Administrative Regulations 

Agency: Department of Agriculture 

R023-16 

FOR EMERGENCY 

REGULATIONS ONLY 

Effective date __________ 

Expiration date __________ 

Governor's signature 

Classification: PROPOSED X ADOPTED BY AGENCY EMERGENCY 

Brief description of action: Relating to Dairy Products and Substitutes and providing other matters properly relating thereto. 

Authority citation other than 233B: NRS 233B.063; NAC 584 

Notice date: 04/19/2016 Date of Adoption by Agency: 06/16/2016 

Hearing date: 05/19/2016 
ADOPTED REGULATION OF THE 

STATE DAIRY COMMISSION 

LCB File No. R023-16 

Effective September 9, 2016 

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

AUTHORITY: §1, NRS 584.067, 584.103 and 584.135; §2 and 5, NRS 584.067, 584.103 and 

584.210; §3, NRS 584.067 and 584.103; §§4 and 24, NRS 584.067; §§6, 12, 14 

and 19-23, NRS 584.067 and 584.547; §§7-11 and 13, NRS 584.067, 584.547 

and 584.585; §§15-18, NRS 584.067, 584.547 and 584.583. 

A REGULATION relating to dairy products; revising provisions relating to the production, sale 

and delivery of dairy products; and providing other matters properly relating thereto. 

Legislative Counsel's Digest: 

Under existing law, the State Dairy Commission is authorized to adopt regulations to carry 

out the provisions of chapter 584 ofNRS governing dairy products and substitutes. (NRS 

584.067) Existing regulations adopt by reference certain federal standards ofidentity and any 

subsequent amendments to those standards. (NAC 584.0103) Existing regulations require all 

bottles, containers and packages enclosing dairy products to be labeled or marked in accordance 

with: (1) those federal standards of identity adopted by reference in addition to the requirements 

ofthe Federal Food, Drug and Cosmetic Act (21 U.S.C §§ 301 et seq.); and (2) any subsequent 

federal regulations that have been approved by the Executive Director of the Commission for use 

in this State. (NAC 584.0361) Section 1 ofthis regulation deletes duplicative·language that 

refers to approval of subsequent federal regulations regarding standards ofidentity. 

Under existing law, the Commission may, under certain circumstances, refuse to grant a 

permit to sell fresh fluid milk or cream in the State ofNevada or suspend or revoke any or all 

such permits previously issued, after providing notice and opportunity for a hearing. (NRS 

584.210) Existing regulations set forth the conditions under which the Executive Director or the 

Commission is authorized to suspend or revoke a permit, and the requirements for the reissuance 

of a permit that has been suspended. Under these existing regulations, when a permit is 

suspended because of an unsatisfactory bacterial condition or cooling temperature, the 

Commission will take further samples and reissue a such a permit when the average ofthe last 

four samples indicates the necessary compliance. (NAC 584.0381) Section 2 ofthis regulation 

--I--

Adopted Regulation R023-l 6 
deletes the requirement that the average ofthe last four samples must indicate the necessary 

compliance and instead authorizes the Commission to reissue the permit when the results of only 

one sample indicates the necessary compliance. 

Existing regulations prohibit a person from manufacturing, freezing, selling, offering or 

exposing for sale or possessing with the intent to sell, any manufactured dairy product which is 

adulterated or misbranded. (NAC 584.0421) Section 3 ofthis regulation removes the duplicative 

references in the prohibition to "freezing," which is part ofthe manufacturing process, and 

"exposing for sale." 

Under existing regulations, the Commission charges and collects fees for annual permits 

according to a schedule. (NAC 584.4071) Section 4 ofthis regulation deletes from the schedule 

the annual permit fee for milk tank trucks. 

Existing regulations require a distributor to submit to the Commission a monthly 

remittance report showing the distributor's monthly distribution of fluid milk, fluid cream, butter 

and fresh dairy by-products. (NAC 584.5792) Existing law requires the Commission to assess 

distributors based on their distribution ofthese products. (NRS 584.647-584.649) Section 6 of 

this regulation clarifies that the monthly reports are to include only products for which the 

distributor is subject to assessment. 

Existing law requires a distributor dealing in fluid milk, fluid cream or other dairy 

products to obtain a license. Applications are required to be submitted to the Commission for an 

initial license and any amendment to a license. (NRS 584.595) Under existing regulations, an 

application for the original issuance of a distributor's license or for an amendment to an existing 

distributor's license must be considered at a public meeting ofthe Commission. (NAC 584.6161) 

Section 14 ofthis regulation removes the requirement that an amendment to an existing 

distributor's license be considered at a public meeting ofthe Commission. 

Existing law requires a distributor to provide a statement of costs to the Commission. 

(NRS 584.583) Existing regulations require each processing distributor to file the statement of 

costs annually. (NAC 584.6261) Section 15 ofthis regulation requires such a statement of costs 

to be filed upon request by the Commission and makes the requirement apply to all distributors 

instead of only processing distributors. 

Existing regulations require a distributor to furnish to each producer from whom he or 

she receives milk a monthly report ofpurchases ofmilk. In addition, ifthe distributor receives 

milk of a particular breed and markets it as milk of a particular breed, the distributor is required 

to furnish the producer with a monthly report of purchases ofthat milk. (NAC 584.6432) Section 

22 ofthis regulation deletes the requirement to furnish the monthly report relating to milk of a 

particular breed. 

--2--

Adopted Regulation R023-16 
Existing law authorizes the Commission to prescribe and modify marketing areas for 

different regulation ofthe milk industry in this State. (NRS 584.547-584.580) Existing 

regulations set the minimum price for fluid milk and fluid cream to be paid to a producer by a 

distributor located in the Northern Nevada Marketing Area as the minimum price set each month 

by the State of California Department of Food and Agriculture for the Northern California 

Marketing Area. (NAC 584.6482) Section 23 ofthis regulation revises the procedure for setting 

the minimum price for fluid milk and fluid cream in the Northern Nevada Marketing Area to the 

minimum price set for the Northern California Marketing Area. 

Existing regulations separate distributors of fluid milk, fluid cream or other dairy 

products into separate classes, including "peddler-distributor", "processing distributor", "retail 

distributor" and "wholesale customer." (NAC 584.5551-584.5941 and 584.5976-584.6712) 

Sections 7-9, 11-13 and 15-21 ofthis regulation delete references to these different classes of 

distributor so the regulations apply to all distributors. Section 24 ofthis regulation repeals the 

definitions for these different classes of distributor and certain regulations relating to them. 

Under existing regulations, a distributor is prohibited from making a loan to a wholesale 

customer except under certain circumstances. (NAC 584.5971) Section 10 ofthis regulation adds 

a revised definition for the term "wholesale customer" as it is used in that section. 

Section 1. NAC 584.0361 is hereby amended to read as follows: 

584.0361 1. All bottles, containers and packages enclosing dairy products must be labeled 

or marked in accordance with the standards of identity adopted by reference in NAC 584.0103 in 

addition to the requirements ofthe' Federal Food, Drug and Cosmetic Act . [, and any subsequent 

regulation developed thereunder that have been approved by the EJceeutive Director for use in 

this State. i\ny subsequent regulation shall be deemed approved by the Executive Director 

unless, after reviev,r arid consultation with the Commission, the E~cceutive Director files an 

objection to the regulation with the Office ofthe Secretary of State vlithin 60 days after the date 

of adoption ofthe regulation by the Federal Government.] 

2. All proposed labels must be submitted to the Commission and approved before being 

printed or used. 

--3--

Adopted Regulation R023-l 6 
Sec. 2. NAC 584.0381 is hereby amended to read as follows: 

584.0381 1. A permit may be summarily suspended by the Executive Director when a 

condition is found which constitutes an imminent health hazard and prompt action is necessary to 

protect the public health. 

2. A permit may be revoked by the Commission for serious or repeated violations of chapter 

584 ofNRS or NAC 584.0111 to 584.0551, inclusive. 

3. Upon receipt of a satisfactory application after suspension of a permit because of an 

unsatisfactory bacterial condition or cooling temperature, the Commission will take further 

samples. The Commission will reissue the permit [·.vhenever the average of the last four] when 

the results ofone such sample [resuks indicates] indicate the necessary compliance. 

4. Ifthe suspension of a permit is because of a violation of any ofthe requirements of 

sanitation and control of quality adopted by reference in NAC 584.02415, other than bacterial 

condition or cooling temperature, the application must be accompanied by a statement signed by 

the applicant attesting that the violated item or items ofthe specifications have been remedied. 

Upon receipt of an application and statement, the Commission will make a reinspection, and 

thereafter as many additional reinspections as it may deem necessary to assure that the applicant 

is again complying with the requirements. Ifthe findings indicate compliance, the Commission 

will reissue the permit. 

Sec. 3. NAC 584.0421 is hereby amended to read as follows: 

584.0421 1. A person shall not manufacture, [freeze,] sell, offer [or expose] for sale, or 

have in possession with intent to sell, any manufactured dairy product which is adulterated or 

misbranded. 

--4--

Adopted Regulation R023-16 
2. Imitation ice cream or ice milk made of vegetable fat must be plainly labeled as being 

imitation ice cream or ice milk. 

3. Any adulterated, misbranded or improperly labeled manufactured dairy product may be 

impounded by the Commission and disposed of in accordance with state law. 

4. As used in this section, "adulterated" means any dairy product for which one or more of 

the conditions prescribed in 21 U.S.C. § 342 exist. 

Sec. 4. NAC 584.4071 is hereby amended to read as follows: 

584.4071 1. The Commission will charge and collect fees for annual permits in 

accordance with the following schedule: 

For a dairy producing: 

1,000 gallons or less per day ................................................................................ $75 

1,001 to 3,000 gallons per day ............................................................................. 100 

More than 3,000 gallons per day .......................................................................... 150 

For a milk plant producing: 

Less than 2,000 gallons per day ........................................................................... 150 

2,000 to 10,000 gallons per day ........................................................................... 300 

More than 10,000 gallons per day ....................................................................... .500 

For a dairy foods manufacturing plant: 

Under 1,000 square feet ....................................................................................... 150 

1,000 to 3,000 square feet .................................................................................... 180 

--5--

Adopted Regulation R023-l 6 
3,001 to 5,000 square feet .................................................................................... 230 

Over 5,000 square feet ......................................................................................... 280 

For a single service plant .......................................................................................... 115 

[For a milk tank truck ............................................................................................... 65] 

For a hauler ofmilk .................................................................................................... 20 

2. The Commission will charge the following fees for review ofplans for dairies, dairy 

foods manufacturing plants and milk plants: 

For a plan for a new facility ...................................................... : ............................. $200 

Plus an amount equal to the fee for an annual permit for a facility 

having the production of the facility under review. 

For a plan for remodeling a facility which has a permit.. ........................................... 50 

Plus an amount equal to one-half of the fee for an annual permit to 

operate the facility after the remodeling. 

Sec. 5. NAC 584.5551 is hereby amended to read as follows: 

584.5551 As used in NAC 584.5551 to 584.6712, inclusive, unless the context otherwise 

requires, the words and terms defined in chapter 584 ofNRS and in NAC 584.5554 to 

[584.5751,] 584.5741, inclusive, have the meanings ascribed to them in those sections. 

Sec. 6. NAC 584.5792 is hereby amended to read as follows: 

584.5792 1. Each distributor shall submit to the Commission, on a form prescribed and 

furnished by the Commission, or on a facsimile ofthe form, a monthly remittance report 

--6--

Adopted Regulation R023-16 
showing the distributor's monthly distribution [of fluid milk, fluid cream, butter and fresh dairy 

by products.] dairy products that are subject to assessment by the Commission pursuant to 

NRS 584.647 or 584.648. 

2. The monthly remittance report must be submitted to the Commission at its office in 

[Reno] Sparks, Nevada, on or before the 20th day ofthe month following the month during 

which the [fluid milk, fluid cream, butter and fresh dairy by products] dairy products that are 

subject to assessment by the Commission pursuant to NRS 584.647 or 584.648 were 

distributed. 

Sec. 7. NAC 584.5911 is hereby amended to read as follows: 

584. 5 911 1. A sale by a distributor for which payment is not made before or at delivery is 

an extension of credit by the distributor. 

2. Except for a sale to the Federal Government, no sale ofmilk or dairy products from a 

distributor to fa wholesale customer or to] another distributor may be made on terms of credit 

under which the final payment for the milk or dairy products is due more than 60 days after the 

date of delivery. 

3. Any violation of subsection 2 is an unfair practice by the seller and the purchaser. 

4. For the purpose ofthis section: 

(a) The period for which credit is extended is the period between the day when the milk or 

dairy products are delivered and the day when the payment is received by the distributor; and 

(b) The giving of a promissory note, postdated check or other evidence ofindebtedness is not 

payment of a debt unless it is immediately payable. 

Sec. 8. NAC 584.5922 is hereby amended to read as follows: 

--7--

Adopted Regulation R023-16 
584.5922 Except as otherwise provided in NRS [584.584,] 584.583, a [processing] 

distributor shall not sell, offer to sell, advertise or bid for the sale of any dairy product at a price 

less than his or her costs as shown by his or her latest statement of costs on file with the 

Commission. 

Sec. 9. NAC 584.5941 is hereby amended to read as follows: 

584.5941 1. If a [vA1-0lesale customer] distl'ihutor fails to pay within the time prescribed 

by subsection 2 ofNAC 584.5911: 

(a) The distributor to whom the payment is owed shall notify the Commission ofthe failure 

to pay; and 

(b) The Commission may issue an order prohibiting all distributors from selling milk or dairy 

products to that f'.vholesale customer] distributol' unless the sale is for cash upon delivery. 

2. The Commission will provide written notice to all distributors of any order issued 

pursuant to subsection 1. Any order issued pursuant to subsection 1 will remain in effect until 

rescinded by the Commission. 

Sec. 10. NAC 584.5971 is hereby amended to read as follows: 

584.5971 1. Except as otherwise provided in subsection 2, a distributor shall not make or 

renew a loan ofmoney to a current or prospective wholesale customer or in any way assist such a 

customer to obtain a loan ofmoney. 

2. A distributor may make or renew a loan ofmoney to a prospective wholesale customer or 

a member of a cooperative grocery which is a current wholesale customer if: 

(a) The distributor advises the Commission that he or she wishes to make or renew the loan; 

--8--

Adopted Regulation R023-16 
(b) The loan is appropriately secured and requires payment ofthe prevailing market rate of 

interest; 

(c) The loan is not contingent upon the purchase of dairy products; and 

(d) The Commission approves the loan 

3. As used in this section, "wholesale customer" means any customer ofa distributor 

other than a retail customer. 

Sec. 11. NAC 584.5981 is hereby amended to read as follows: 

584.5981 A distributor shall not make any payment on behalf of any [wholesale customer 

er} other distributor. 

Sec. 12. NAC 584.6011 is hereby amended to read as follows: 

584.6011 A [peddler distributor] distributor who discontinues purchasing dairy products 

from fat another distributor shall pay any amount he or she owes to {the} that distributor before 

distributing the products of [another] any other distributor. 

Sec. 13. NAC 584.6092 is hereby amended to read as follows: 

584.6092 1. No distributor, [peddler distributor, retail store or] representative of a 

distributor [, peddler distributor] or retail store may engage in the unfair practice of extending to 

certain customers special prices, equipment or services not made available to all customers who 

purchase dairy products [or substitute dairy products] of like quantity under like terms and 

conditions. 

2. Except as otherwise provided in NRS 584.582 and 584.583, a distributor or retail store 

may give discounts on the purchase or sale of dairy products. 

Sec. 14. NAC 584.6161 is hereby amended to read as follows: 

--9--

Adopted Regulation R023-l 6 
584. 6161 Each application for the original issuance of a distributor's license [or for the 

amendment of a distributor's license] will be considered at a public meeting ofthe Commission. 

An applicant is not required to appear at the meeting unless requested by the Executive Director 

or a member ofthe Commission but may appear to provide additional information relevant to the 

application. 

Sec. 15. NAC 584.6261 is hereby amended to read as follows: 

584.6261 1. Each [processing] distributor shall, upon request oftl,eCommission, file 

with the Commission the statement of costs required by subsection W 2 ofNRS 584.583. fihe 

statement must be filed 1.vith the Commission at its office in Reno no later than December 31 of 

each year. The statement must cover the entire calendar year or the fraction ofthe calendar year 

during which the processing distributor ·.vus in operation, as shovm by his or her monthly reports 

to the Commission for the purposes of assessment. 

2. ,A,. statement of costs must be filed for each licensed processing plant.] The statement of 

costs must separately show the cost for each container size of each product distributed, 

regardless ofwhether the product was processed, manufactured or purchased for resale. 

~ 2. The statement ofcosts must separately show the dock cost, wholesale delivered cost 

and retail delivered cost. 

[1. 1\ny significant change in costs during a calendar year must be reported v,rhen the change 

occurn ifthe change substantially affects the unit cost of any fluid milk product or by product. 

The statement of costs must be amended from time to time by additional filings in order to 

correct any errors or make the filings current. Each amendment must clearly state the period and 

product or products covered.] 

--10--

Adopted Regulation R023-l 6 
Sec. 16. NAC 584.6281 is hereby amended to read as follows: 

584.6281 For enforcement offthlst a plan hl authorized by NRS 584.547, the Commission 

will consider {the} a filed statement of costs [of a processing distributor] to be prima facie 

evidence of [his or her] the distributor's costs for the period reported on the statement. 

Sec. 17. NAC 584.6311 is hereby amended to read as follows: 

584.6311 Before commencing the sale ofnew dairy products, a [processing] distributor 

must file a statement of costs covering each item which he or she [processes.] distributes. Where 

new products are being manufactured or new operations are begun and the distributor is unable 

to submit sufficient cost data as required by NAC 584.6261 to 584.6362, inclusive, the 

distributor must file projected cost data which is acceptable to the Commission. 

Sec. 18. NAC 584.6362 is hereby amended to read as follows: 

584.6362 To determine costs pursuant to NRS 584.583, a [processing] distributor shall use 

generally accepted principles of accounting. [and reduce all figures to the fourth decimal place.] 

Sec. 19. NAC 584.6392 is hereby amended to read as follows: 

584.6392 Before selling or offering or agreeing to sell any dairy product, each distributor 

who processes or manufactures fluid milk, fluid cream, butter or fresh dairy by-products {and 

each peddler distributor] shall file with the Commission separate price lists for retail prices and 

distributor's or dock prices for each marketing area in which such products are distributed. A 

separate price must be filed for each size of each product distributed. The price of like products 

distributed under different brand names or trademarks must be separately filed. No price may be 

filed for any product at less than the cost ofthe product. 

Sec. 20. NAC 584-.6397 is hereby amended to read as follows: 

--11--

Adopted Regulation R023-l 6 
584.6397 1. A price list filed by a distributor must: 

(a) Clearly state the marketing area in which the prices apply; 

(b) Include all terms and conditions ofservice which are applicable in determining the net 

price ultimately available to ['.vholesalc customers;] other distributors; and 

(c) Designate its effective date. 

2. A price list filed by a distributor is confidential and not open for public inspection. 

Information contained in the price list will not be made available to any person, other than 

members ofthe Commission and authorized members of its staff, except when the information is 

to be used in judicial proceedings or administrative proceedings held pursuant to the provisions 

of chapter 584 ofNRS. 

Sec. 21. NAC 584.6417 is hereby amended to read as follows: 

584.6417 1. A [processing] distributor located in this State who receives, sells or transfers 

milk shall keep a monthly usage report which includes: 

(a) The quantity ofmilk received, sold or transferred; 

(b) The class ofusage ofthe milk; 

(c) The price; 

(d) The total gallons ofmilk processed by product type during the month; 

(e) The total weight ofmilk processed by product type; 

(f) The results of a butterfat test for the various product types; 

(g) The total butterfat by product type; 

(h) The source ofthe milk; 

(i) The person to whom the milk was sold or transferred, if appropriate; 

--12--

Adopted Regulation R023-l 6 
G) A statement which indicates whether the milk was graded, ungraded or degraded; and 

(k) Any other information the Commission requests to substantiate usage. 

2. A [processing] distributor shall submit his or her monthly usage report to the 

Commission's office in [Reno) Sparks, Nevada, on or before the 15th day ofthe month 

following the calendar month for which the report is submitted. The report must be made on a 

form prescribed and furnished by the Commission or on a facsimile ofthe form. 

Sec. 22. NAC 584.6432 is hereby amended to read as follows: 

584.6432 1. For the purpose of computing usage: 

(a) Each milk plant, whether owned by one or more interests, is an individual plant pool. 

(b) Milk is deemed to have received Class I usage unless the distributor furnishes proof 

satisfactory to the Commission that fit} lie or s/ie received a different usage. 

2. A distributor shall furnish each producer from whom he or she receives milk a monthly 

report of purchases ofmilk. The report must state the quantity, price and usage of each purchase 

and all deductions and withholdings. The report must accompany either the second or final 

payment of each month to the producer. The report must be made on forms furnished by the 

Commission. 

[3. In addition to the monthly report required by subsection 2, a distributor 1.vho receives 

milk of a particular breed and markets it as milk of a particular breed shall furnish each producer 

from \Vhom he or she receives the milk a separate monthly report ofpurchases ofthat milk, 

providing the same information required by subsection 1. The report must accompany either the 

second or final payment of each month to the producer. The report must be made on forms 

furnished by the Commission.] 

--13--

Adopted Regulation R023-16 
Sec. 23. NAC 584.6482 is hereby amended to read as follows: 

584.6482 1. Except as otherwise provided in this subsection, the minimum price for fluid 

milk and fluid cream to be paid to .a producer by a distributor located in the Northern Nevada 

Marketing Area is the minimum price established for fluid milk and fluid cream [set each month 

by the State of California Department of Food and A.griculture] for the Northern California 

Marketing Area. Ifthe minimum price for fluid milk and fluid cream established for the Northern 

California Marketing Area is revised, the Commission will review the revised price to determine 

whether it is acceptable. Unless the Commission, within 5 days after the price for the Northern 

California Marketing Area is revised, determines that the revised price is unacceptable, the 

revised price for the Northern California Marketing Area shall be deemed the minimum price for 

fluid milk and fluid cream to be paid to a producer by a distributor located in the Northern 

Nevada Marketing Area. The minimum price for fluid milk and fluid cream to be paid to a 

producer by a distributor located in the Northern Nevada Marketing Area may be obtained at no 

cost: 

(a) By mail, from the State Department ofAgriculture, Attn: Division ofFood and Nutrition, 

State Dairy Commission, 405 South 21st Street, Sparks, Nevada 89431; 

(b) By telephone, at (775) 353-3758; 

(c) By electronic mail, at fnd@agri.nv.gov; or 

(d) On the Internet, at http://dairy.nv.gov. 

2. Except as otherwise provided in this subsection, the minimum price for fluid milk and 

fluid cream to be paid to a producer by a distributor located in the Southern Nevada Marketing 

Area is the advanced pricing factors or the component prices set each month by the United States 

--14--

Adopted Regulation R023-16 
Department of Agriculture, as applicable, plus the class differential set by the Commission. The 

minimum price for fluid milk and fluid cream to be paid to a producer by a distributor located in 

the Southern Nevada Marketing Area may be obtained at no cost: 

(a) By mail, from the State Department of Agriculture, Attn: Division ofFood and Nutrition, 

State Dairy Commission, 2300 [McLeod,] East St. Louis Avenue, Las Vegas, Nevada 89104; 

(b) By telephone, at (702) 668-4585; 

(c) By electronic mail, at fnd@agri.nv.gov; or 

(d) On the Internet, at http://dairy.nv.gov. 

Sec. 24. NAC 584.5561, 584.5641, 584.5671, 584.5691, 584.5751, 584.5976, 584.5986, 

584.5991, 584.6061, 584.6071, 584.6082, 584.6181, 584.6331, 584.6452 and 584.6457 are 

hereby repealed. 

TEXT OF REPEALED SECTIONS 

584.5561 "Bona fide charity" defined. (NRS 584.067, 584.547) "Bona fide charity" 

means any entity which is organized and operated primarily for religious, charitable, scientific, 

literary or educational purposes, or for the prevention of cruelty to children or animals, and from 

which no part of the net earnings inures to the benefit of any private shareholder or natural 

person. 

--15--

Adopted Regulation R023-16 
584.5641 "Peddler-distributor" defined. (NRS 584.067, 584.547) "Peddler-distributor" 

means a distributor, other than a retail distributor, who purchases dairy products for resale. 

584.5671 "Processing distributor" defined. (NRS 584.067, 584.547) "Processing 

distributor" means a peddler-distributor who processes fluid milk, fluid cream or other dairy 

products. 

584.5691 "Retail distributor" defined. (NRS 584.067, 584.547) "Retail distributor" 

means any retail store which purchases or receives for resale, milk or dairy products from 

sources outside this State which do not have a valid license issued under chapter 584 ofNRS 

584.5751 "Wholesale customer" defined. (NRS 584.067, 584.547) "Wholesale 

customer" means any customer of a processing distributor or a peddler-distributor. The term does 

not include a retail customer. 

584.5976 Satisfaction of debt of wholesale customer. (NRS 584.067, 584.547, 584.585) 

If a wholesale customer satisfies a debt incurred for the purchase offresh dairy by-products by 

providing evidence ofindebtedness which is immediately payable to the distributor to whom the 

debt is owed, the amount ofthe evidence ofindebtedness must not exceed the amount owed to 

the distributor. 

584.5986 Prohibition against requiring wholesale customer to purchase dairy products 

customer is unable to sell at retail. (NRS 584.067, 584.547, 584.585) A distributor shall not 

enter into an agreement with a wholesale customer which requires the wholesale customer to 

purchase the distributor's dairy products ifthe wholesale customer is unable to sell those 

products at retail. Including such a requirement in an agreement with a wholesale customer is an 

unfair trade practice. 

--16--

Adopted Regulation R023-l 6 
584.5991 Wholesale customer required to pay amount owed to distributor upon 

discontinuing purchase of dairy products. (NRS 584.067, 584.547) A wholesale customer 

who discontinues purchasing dairy products from a distributor shall pay any amount the 

customer owes to the distributor upon providing notice to the distributor that he or she is 

discontinuing the purchase of dairy products from that distributor. 

584.6061 Sales of merchandise other than dairy products to wholesale customers by 

distributors. (NRS 584.067, 584.547, 584.585) A distributor shall not: 

1. Extend credit to a wholesale customer on merchandise other than dairy products on more 

favorable terms and conditions than the terms and conditions extended by comparable sellers of 

that merchandise to comparable buyers ofthat merchandise in the same area. 

2. Sell merchandise other than dairy products to a wholesale customer at a price which is 

less than the price offered by comparable sellers ofthat merchandise to comparable buyers of 

that merchandise in the same area. 

584.6071 Contract for sale or lease of property between distributor and wholesale 

customer. (NRS 584.067, 584.547, 584.585) 

1. A contract for the sale or lease of any personal or real property between a distributor and 

a wholesale customer must be in writing. 

2. The sale price or lease payment prescribed in such a contract must be an amount 

comparable to the fair market value or fair market rental, respectively, of the property at the time 

ofthe sale or lease. 

--17--

Adopted Regulation R023-16 
3. A distributor shall file with the Commission a copy of each such contract within 10 days 

after its execution, and shall retain the contract for not less than 3 years after the expiration of the 

lease or the payment ofthe purchase price. 

584.6082 Participation by wholesale customer in profits or losses of distributor. (NRS 

584.067, 584.547) If a wholesale customer purchases milk or other dairy products from a 

distributor and participates in any profits or losses ofthe distributor, or an entity which owns the 

distributor, the distributor or entity shall file the following information with the Commission 

within 30 days after the distribution of any profits or losses: 

1. The qualifications required ofwholesale customers for participation in profits and losses; 

2. The name and address of each wholesale customer who has participated in such a 

distribution; 

3. The amount of profit or loss expressed in monetary terms distributed to each such 

wholesale customer; 

4. The basis for the distribution of profits and losses to wholesale customers; and 

5. Any other information which the Commission may find to be necessary for full 

understanding of all the transactions between the distributor and wholesale customer. 

584.6181 Distributor's license: Amendment to include new brand or label. (NRS 

584.067, 584.547, 584.595) A distributor who intends to distribute, manufacture, process, sell 

or offer for sale under a new brand name or label any fluid milk product which he or she has not 

previously distributed, manufactured, processed, sold or offered for sale in the marketing area 

must submit a written request to the Commission to amend the distributor's license to reflect the 

--18--

Adopted Regulation R023-l 6 
addition of the new brand or label to his or her line of dairy products. The request must include 

the cost and price ofthe product. 

584.6331 Peddler-distributors and retail distributors required to file statement. (NRS 

584.067, 584.547, 584.583) Each peddler-distributor or retail distributor shall file with the 

Commission an annual statement of costs in a manner to be prescribed by the Commission. 

584.6452 Distributor's contract: Optional provisions. (NRS 584.067, 584.547) 

Nothing in this plan restricts a distributor from: 

1. Entering into a contract to purchase milk from any producer, regardless of whether a 

contract already exists between the distributor and producer, except that the contract must expire 

on December 31 after the date on which it was made. 

2. Renewing or refusing to renew any contract with a producer or from putting any 

provision pertaining to renewal in a contract. 

3. Increasing or decreasing the production ofthe distributor's own herd. 

584.6457 Written contract required for certain purchases by distributor. (NRS 

584.067, 584.547) 

1. A distributor shall not purchase any fluid milk in excess of200 gallons monthly from a 

producer or association ofproducers unless a written contract has been entered into with the 

producer or association of producers. 

2. A distributor who enters into a contract pursuant to subsection 1 shall, within 15 days 

after entering into the contract, file a copy of the contract with the Commission. 

3. Every written contract by a distributor to purchase milk must contain the following 

statement: 

--19--

Adopted Regulation R023-16 
The law ofthe State ofNevada and the regulations ofthe State Dairy Commission supersede 

any conflicting provision ofthis contract. 

--20--

Adopted Regulation R023-l 6 
LEGISLATIVE REVIEW OF ADOPTED REGULATIONS--NRS 233B.066 

Informational Statement 

LCB File No. R-023-16 

1. Rules are outdated and/or no longer needed. 

2. Copies of the proposed regulations, notices of workshop and notices of intent to 

act upon the regulation were sent by U.S. mail and email to persons who were 

known to have an interest in the subject of Proposed Regulation changes, as well 

as any persons who had specifically requested such notice. These documents 

were also made available at the website of the Nevada Department of Agriculture 

(NOA) www.agri.nv.gov, mailed to all county libraries in Nevada and posted at the 

following locations: 

Nevada Department of Agriculture 

405 South 21 st Street 

Sparks, NV 89431-5566 

Nevada Department of Agriculture 

2300 Mcleod Street 

Las Vegas, NV 89104-4314 

Nevada Department of Agriculture 

2150 Frazer Avenue 

Sparks, NV 89431 

Nevada Department of Agriculture 

4780 E. Idaho Street 

Elko, NV 89801-4672 

Interested persons may obtain a copy of the summary by contacting: 

Nevada Department of Agriculture 

Attn: Anna Vickrey 

405 South 21 st Street 

Sparks, NV 89431 

3., The number of persons who: 

(a) Attended each hearing: O 

(b} Testified at each hearing; 0 

(c) Submitted written comments: O 

Workshop date: 02/03/2016 

NLJmber in attendance: 3 

Number te$tifying: d 

Written statements submitted: O 

Hearing date: 05/19/2016 

Number in attendance: O 

Number testifying: O 

Written statements submitted: 0 

4. For each person identified in paragraphs (b) and (c) of number 3. above, the 

following informatic>n if provided to the agency conducting the hearing: 
(a) Name; 0 

(b) Telephone number; 0 

(c) Business address; 0 

(d) Business telephone number; 0 

(e) Electronic mail address; and 0 

(f) Name of entity or organization represented. O 

5. A description of how comment was solicited from affected businesses, a 

summary of their response and an explanation of how other interested 

persons may obtain a copy of the summary. 

Comments were solicited from affected business by a direct mail-out to all licensees 

and permitted clients of the Nevada Dairy Commission and by the posting of 

required notices for the above meetings as well as posting to our websih~. 

6. If the regulation was adopted without changing any part of the proposed 

regulation, a summary of the reasons for adopting the regulation without 

change. 

The regulation was adopted without change because we had no testimony or 

written statements requesting any change to the proposed language. 

7. The estimated economic effect of the regulation on the business which it is 

to regulate and on the public. 

(a) Estimated economic effect on the bu$inesses which they are to 

regulate. 

(b) Estimated economic effect on the public which they are to regulate. 

There is expected to be no adverse economic effect or impact on any dairy business 

or the public. 

8. The estimated cost to the agency for ·enforcement of the proposed 

regulation: 

None 

9. A description of any regulations of other State or governmental agencies 

which the regulation overlaps or duplicates and a statement explaining Why 

the duplication or overlap is necessary. If the regulation overlaps or 

duplicates a federal regulation, the name of the regulating federal agency. 
None 

10. If the regulation includes provisions that are more stringent than a federal 

regulation that regulates the same activity, a summary of such provisions. 

None 

11. If the regulation provides a new fee or increases an existing fee, the total 

annual amount the agency expects to collect and the manner in which the 

money will be used. 

None 

I certify that to the best of my knowledge or belief a concerted effort was made to 

determine the impact of this proposed regulation on small businesses and that the 

informati · c tained in this statement is accurate . 

./1tf!L-

}1m Barbee 

/Director 

Nevada Department of Agriculture