As used in this chapter:
1. “Consignor” means any person consigning, shipping or delivering
livestock to a public livestock auction for sale, resale or exchange.
2. “Department” means the State Department of Agriculture.
3. “Director” means the Director of the Department.
4. “Livestock” means:
(a) Cattle, sheep, goats, horses, mules, asses, burros, swine or
poultry; and
(b) Alternative livestock as defined in NRS 501.003 .
5. “Operator of a public livestock auction” means any person
holding, conducting or carrying on a public livestock auction.
6. “Public livestock auction” means any sale or exchange of
livestock held by any person at an established place of business or
premises where the livestock is assembled for sale or exchange, and is
exchanged or sold at auction or upon a commission basis at regular or
irregular intervals.
[1:78:1947; 1943 NCL § 3825.01]—(NRS A 1961, 550; 1965, 379; 1985,
527; 1993, 434, 1749; 1995, 514; 1999, 3689 )
Because of the paramount
importance of livestock raising to the economy of the State of Nevada and
the essential function performed by public auction sales in the livestock
industry, it is declared to be an essential part of the public policy of
this state to regulate such sales in order to avoid fraud upon consignors
or purchasers and misappropriation of the proceeds of livestock sold.
(Added to NRS by 1965, 381)
1. A person shall not hold, operate, conduct or carry on a public
livestock auction in this state without first securing a license therefor
from the Department.
2. The application for a license must be on a form prescribed and
furnished by the Department and set forth:
(a) The name of the operator of the public livestock auction.
(b) The location of the establishment or premises where the public
livestock auction will be conducted.
(c) The type or kinds of livestock to be handled, sold or exchanged.
(d) A description of the facilities that will be used to conduct
the public livestock auction.
(e) The weekly or monthly sales day or days on which the applicant
proposes to operate his public livestock auction.
(f) The name and address of the bank or credit union where the
custodial account for consignors’ proceeds will be established and
maintained by the operator of the public livestock auction in compliance
with the provisions of NRS 573.104 .
(g) Such other information as the Department reasonably may
require, including, without limitation, proof that at the time of
application the applicant has a line of credit established at a bank or
credit union in the State of Nevada in an amount at least equal to the
estimated average weekly gross sales receipts of the public livestock
auction that will be conducted by him.
3. The application must be accompanied by a bond or deposit
receipt and the required fee as provided in this chapter.
[2:78:1947; 1943 NCL § 3825.02]—(NRS A 1961, 551; 1965, 379; 1993,
1750; 1999, 1513 , 3689 ; 2001, 91 )
Before a license is issued by the Department to an operator of
a public livestock auction, the applicant must deliver to the Director:
1. A surety bond pursuant to the provisions of NRS 573.033 ;
2. A bond approved by the Secretary of Agriculture of the United
States pursuant to the provisions of NRS 573.035 ; or
3. A deposit receipt pursuant to the provisions of NRS 573.037
.
[3:78:1947; A 1951, 574]—(NRS A 1959, 206; 1960, 346; 1961, 551;
1965, 380; 1993, 1750; 1999, 3689 )
1. If an applicant delivers a surety bond to the Director pursuant
to the provisions of subsection 1 of NRS 573.030 , the surety bond must be:
(a) In the sum provided for in subsection 2.
(b) Executed by the applicant as principal and by a surety company
qualified and authorized to do business in this state as surety.
(c) A standard form and approved by the Director as to terms and
conditions.
(d) Conditioned that the principal will not commit any fraudulent
act and will comply with the provisions of this chapter and the rules and
regulations adopted by the Department.
(e) To the State of Nevada in favor of every consignor creditor
whose livestock was handled or sold through or at the licensee’s public
livestock auction.
2. If the application for a license to operate a public livestock
auction is submitted by a person who:
(a) Has not operated in the past 12-month period, the Director
shall determine the sum of the initial bond that the applicant must
execute in favor of the State, which sum must be equal to an amount
estimated to be 50 percent of the average monthly gross sales proceeds of
the public livestock auction in the first 6 months of operation, but the
sum must not be less than $10,000 or more than $100,000. At any time
within the first 12 months of licensed operation, the Director may, upon
written notice to the licensee, review the licensee’s operations and
determine whether, because of increased or decreased sales, the amount of
the bond should be altered.
(b) Has operated in the past 12-month period, the Director shall
determine the sum of the bond that the applicant must execute in favor of
the State, which sum must be equal to an amount equal to 50 percent of
the average monthly gross sales proceeds received by the public livestock
auction during the 6 successive months of the last 12-month period which
produced the highest dollar volume, but the sum must not be less than
$10,000 or more than $100,000.
3. The total and aggregate liability of the surety for all claims
upon the bond must be limited to the face amount of the bond.
(Added to NRS by 1965, 381; A 1993, 1750; 1999, 3690 )
In compliance with the
provisions of subsection 2 of NRS 573.030 , if the applicant is bonded as a market agency
under the provisions of the Packers and Stockyards Act, 7 U.S.C. § 204,
as amended, and the regulations adopted pursuant thereto, in a sum equal
to or greater than the sum required by the provisions of NRS 573.033
, the applicant may deliver to the
Director a bond approved by the Secretary of Agriculture of the United
States naming the Director as trustee.
(Added to NRS by 1965, 382; A 1993, 1751; 1999, 3690 )
1. As authorized by subsection 3 of NRS 573.030 , in lieu of filing the bond described in NRS
573.033 or 573.035 , the applicant may deliver to the Director the
receipt of a bank, credit union or trust company doing business in this
state showing the deposit with that bank, credit union or trust company
of cash or of securities endorsed in blank by the owner thereof and of a
market value equal at least to the required principal amount of the bond,
the cash or securities to be deposited in escrow under an agreement
conditioned as in the case of a bond. A receipt must be accompanied by
evidence that there are no unsatisfied judgments against the applicant of
record in the county where the applicant resides.
2. An action for recovery against any such deposit may be brought
in the same manner as in the case of an action for recovery on a bond
filed under the provisions of this chapter.
3. If any licensed operator of a public livestock auction for any
reason ceases to operate the auction, the amount of money or securities
deposited in lieu of a bond must be retained by the Department for 1
year. If 1 year after the cessation of the operation, no legal action has
been commenced to recover against the money or securities, the amount
thereof must be delivered to the owner thereof. If a legal action has
been commenced within that period, all such money and securities must be
held by the Director subject to the order of a court of competent
jurisdiction.
(Added to NRS by 1965, 382; A 1993, 1751; 1999, 1514 , 3691 ; 2001, 91 )
The State Board of Agriculture shall
establish by regulation the fee for a license to operate a public
livestock auction.
[Part 4:78:1947; 1943 NCL § 3825.04]—(NRS A 1961, 552; 1999, 3597
)
Upon receipt of an application
for a license under this chapter, accompanied by the required bond and
license fee, the Department shall examine the application, and if it
finds the application to be in proper form and that the applicant has
otherwise complied with this chapter, the Department shall grant the
license as applied for, subject to the provisions of this chapter.
[Part 4:78:1947; 1943 NCL § 3825.04]—(NRS A 1961, 552; 1993, 1752;
1999, 3691 )
A separate license shall be required for each establishment or
premises where a public livestock auction is operated or conducted.
[Part 5:78:1947; 1943 NCL § 3825.05]
Licenses must be in such form as the
Department may prescribe, and set forth:
1. The name and address of the operator of the public livestock
auction.
2. The location of the establishment or premises licensed.
3. The kinds of livestock to be sold, exchanged or handled.
4. The period of the license.
5. The weekly or monthly sales day or days.
6. Such other information as the Department may determine.
[Part 5:78:1947; 1943 NCL § 3825.05]—(NRS A 1961, 553; 1993, 1752;
1999, 3691 )
Licenses shall be renewed
annually upon like application and procedure as in the case of original
licenses.
[Part 5:78:1947; 1943 NCL § 3825.05]
The original license or a
certified copy thereof shall be displayed conspicuously by the licensee
in the sale ring or in some other like prominent place in the licensed
establishment or premises.
[Part 5:78:1947; 1943 NCL § 3825.05]
1. The Department may refuse to grant or to renew a license or may
suspend or revoke a license if, after notice and a hearing, the
Department finds:
(a) That the licensee has violated any provision of this chapter,
or any rule, order or regulation issued pursuant to law;
(b) That the licensee has knowingly received on consignment, or
sold or exchanged, stolen livestock or mortgaged livestock without
authority from the owner or mortgagee;
(c) That the licensee has been guilty of fraud or deception in any
material particular in securing the license;
(d) That the licensee has failed to keep records as required by
this chapter;
(e) That the licensee has failed to practice measures of sanitation
as required by this chapter, or has violated the rules and regulations,
if any, for the yarding, housing, holding and feeding of livestock;
(f) That the licensee, in the case of livestock weighed on the
licensee’s scales and sold by weight, has knowingly quoted incorrect
weights, or has failed to have his scales regularly inspected and tested;
(g) That the applicant or licensee has intentionally made a false
or misleading statement as to the conditions of the livestock market, or
has authorized any false advertising reflecting the operation of his
public livestock auction;
(h) That the applicant or licensee has been previously convicted of
a felony; or
(i) That the applicant or licensee has within 3 years next
preceding the action of the Department:
(1) Filed a voluntary petition in bankruptcy;
(2) Been adjudged an involuntary bankrupt;
(3) Received or been refused a discharge in bankruptcy; or
(4) Failed to make full settlement with all consignor
creditors after a claim against his surety or deposit in lieu of bond has
been collected by court order.
2. The provisions of subparagraphs (1), (2) and (3) of paragraph
(i) of subsection 1 do not apply to any person who has made full
settlement with his creditors. A natural person shall be deemed to have
committed one of the acts set forth in those subparagraphs if such an act
has been committed by any corporation of which he was at the time of the
act an officer or director or the beneficial owner of 20 percent or more
of the capital stock. A corporation shall be deemed to have committed one
of the acts set forth in those subparagraphs if the act has been
committed:
(a) By another corporation controlled by the applicant corporation.
(b) By a natural person who at the time of application is an
officer or director or the beneficial owner of 20 percent or more of the
capital stock of the applicant corporation.
(c) By another corporation of which a natural person as described
in paragraph (b) was at the time of the act an officer or director or the
beneficial owner of 20 percent or more of the capital stock.
3. In the case of any hearing held under the provisions of this
section, there must be filed in the office of the Department a memorandum
stating briefly the reasons of the Department for the denial, suspension
or revocation of the license, but formal findings of fact are required to
be made or filed.
[6:78:1947; 1943 NCL § 3825.06]—(NRS A 1961, 553; 1965, 386; 1993,
1752; 1999, 3691 )
1. Except as otherwise provided in subsection 2, every operator of
a public livestock auction shall cause his accounts to be audited at
least annually by a holder of a live permit under chapter 628 of NRS, and shall file with the Director a copy of the audit, signed
and certified as correct by the auditor. The Director may prescribe by
regulation the content and times for filing of the audits.
2. Every operator whose accounts are audited under the provisions
of the Packers and Stockyards Act, 7 U.S.C. § 204, as amended, shall file
a copy of each such audit with the Director.
(Added to NRS by 1965, 386; A 1993, 1753; 1999, 3692 )
1. Each licensee shall deposit the gross proceeds received by him
from the sale of livestock handled on a commission or agency basis in a
separate account established and maintained by the licensee in the bank
or credit union at which his line of credit, as required by paragraph (g)
of subsection 2 of NRS 573.020 , is
established. The separate account must be designated a “custodial account
for consignors’ proceeds.”
2. The custodial account for consignors’ proceeds may be drawn on
only:
(a) For the payment of net proceeds to the consignor, or any other
person or persons of whom the licensee has knowledge who is entitled to
those proceeds;
(b) To obtain the sums due the licensee as compensation for his
services; and
(c) For such sums as are necessary to pay all legal charges against
the consignment of livestock which the licensee in his capacity as agent
is required to pay for and on behalf of the consignor.
3. The licensee shall:
(a) In each case keep such accounts and records that will at all
times disclose the names of the consignors and the amount due to each
from the money in the custodial account for consignors’ proceeds.
(b) Maintain the custodial account for consignors’ proceeds in a
manner that will expedite examination by the Director and indicate
compliance with the requirements of this section.
(Added to NRS by 1965, 382; A 1993, 1753; 1999, 1514 , 3693 ; 2001, 91 )
The Director shall ascertain, at least quarterly,
the continued existence and amount of the line of credit shown pursuant
to paragraph (g) of subsection 2 of NRS 573.020 , or its replacement by a line of credit at
another bank or credit union in the State of Nevada and the amount of the
replacement. If the line of credit is replaced, the custodial account
must be transferred to the bank or credit union issuing the new line of
credit. If a line of credit in the amount required is not maintained, the
Director shall suspend the operator’s license.
(Added to NRS by 1965, 383; A 1993, 1754; 1999, 1515 , 3693 ; 2001, 91 )
Within 24 hours after a sale of livestock by an operator of a public
livestock auction, the operator of the public livestock auction shall pay
to the consignor of such livestock the net proceeds of the sale due such
consignor.
(Added to NRS by 1965, 383)
1. A consignor creditor claiming to be injured by the fraud of a
licensee may bring an action upon the bond against the principal and the
surety in any court of competent jurisdiction to recover the damages
caused by the fraud.
2. The Director or any consignor creditor may also bring an action
upon the bond against the principal and the surety in any court of
competent jurisdiction to recover the damages caused by any failure to
comply with the provisions of this chapter and the rules and regulations
adopted by the Department.
(Added to NRS by 1965, 383; A 1993, 1754; 1999, 3693 )
1. In case of failure by a licensee to pay the amount due a
consignor creditor whose livestock was handled or sold through or at the
licensee’s public livestock auction, as evidenced by a verified complaint
filed with the Director, the Director shall proceed forthwith to
ascertain the names and addresses of all consignor creditors of the
licensee, together with the amounts due to them by the licensee, and
shall request all the consignor creditors to file a verified statement of
their respective claims with the Director. The request must be addressed
to each known consignor creditor at his last known address.
2. If a consignor creditor so addressed fails, refuses or neglects
to file in the office of the Director his verified claim as requested by
the Director within 60 days after the date of the request, the Director
is relieved of further duty or action under this section on behalf of
that consignor creditor.
3. If because of the absence of records, or other circumstances
making it impossible or unreasonable for the Director to ascertain the
names and addresses of all consignor creditors, the Director, after
exerting due diligence and making reasonable inquiry to secure the
information from all reasonable and available sources, may make demand on
the bond on the basis of information in his possession, and thereafter is
not liable or responsible for claims or the handling of claims which may
subsequently appear or be discovered.
4. Upon ascertaining all claims and statements in the manner set
forth in this section, the Director may make a demand upon the bond on
behalf of those claimants whose statements have been filed, and may
settle or compromise the claims with the surety company on the bond and
execute and deliver a release and discharge of the bond involved.
5. Upon the refusal of the surety company to pay the demand, the
Director may thereupon bring an action on the bond on behalf of the
consignor creditors. Upon any action being commenced on the bond, the
Director may require the filing of a new bond. Immediately upon the
recovery in any action on the bond the licensee shall file a new bond.
Upon failure to file the bond within 10 days, in either case, the failure
constitutes grounds for the suspension or revocation of his license.
6. In any settlement or compromise by the Director with a surety
company as provided in subsection 4, if there are two or more consignor
creditors that have filed claims, fixed or contingent, against a
licensee’s bond, the creditors must share pro rata in the proceeds of the
bond to the extent of their actual damage.
7. To enforce the provisions of this section, the Director may
receive verified complaints from any consignor against any licensee, or
agent, or any person assuming or attempting to act as such, and upon
receipt of a verified complaint may conduct any necessary investigations
relating to the complaint. The Director may administer oaths of
verification of the complaints.
8. To conduct investigations as provided for in subsection 7, the
Director may enter a public livestock auction and examine any records
required under the provisions of this chapter. The Director may issue
subpoenas requiring the attendance of witnesses before him, together with
all books, memoranda, papers and other documents relating to the matters
under investigation.
(Added to NRS by 1965, 383; A 1981, 90; 1993, 1754; 1999, 3694
)
1. The district court in and for the county in which any
investigation is conducted by the Director pursuant to the provisions of
subsections 7 and 8 of NRS 573.108 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
Director.
2. In case of the refusal of any witness to attend or testify or
produce any papers required by the subpoena, the Director may report to
the district court in and for the county in which the investigation is
pending by petition, setting forth:
(a) That 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
(c) That the witness has failed and refused to attend or produce
the papers required by subpoena before the Director in the investigation
named in the subpoena, or has refused to answer questions propounded to
him in the course of the investigation,
Ê and asking an order of the court compelling the witness to attend and
testify or produce the books or papers before the Director.
3. The court, upon petition of the Director, shall enter an order
directing the witness to appear before the court at a time and place to
be fixed by the court in the order, the time to be not more than 10 days
after 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
Director. A certified copy of the order must be served upon the witness.
If it appears to the court that the subpoena was regularly issued by the
Director, the court shall enter an order requiring the witness to appear
before the Director 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 must be dealt with as for contempt of court.
(Added to NRS by 1965, 385; A 1993, 1755; 1999, 3695 )
1. Each operator of a public livestock auction shall keep the
following records for each lot of livestock consigned to or sold or
exchanged through the public livestock auction:
(a) The name and address of the consignor.
(b) A description of the livestock which must include the number
and kind, approximate age, the sex, and any visible brands or other
distinguishing or identifying marks.
(c) The name and address of the purchaser of the livestock.
2. The records must be kept by the operator of a public livestock
auction at the establishment or premises where the sale is held and
conducted, or such other convenient place as may be approved by the
Department.
3. The records must be open for inspection by all peace officers
of this state at all reasonable times, and must be retained for at least
2 years.
[7:78:1947; A 1949, 550; 1943 NCL § 3825.07]—(NRS A 1961, 553;
1993, 1756; 1999, 3695 )
1. Any person buying, or receiving on a consignment, commission or
fee basis, any livestock for slaughter at a slaughtering establishment or
plant, shall keep the following records for each lot of livestock so
received:
(a) The name and address of the person from whom the livestock was
received.
(b) A description of the livestock, which must include the number
and kind, approximate age, the sex, and any visible brands or other
distinguishing or identifying marks.
2. If any livestock bought or received as provided in subsection 1
is disposed of other than by slaughter, a record must be kept of the
disposal, including the description as provided in subsection 1 and the
name and address of the person receiving the livestock.
3. The records provided for in this section must be retained for
at least 2 years and must be open for inspection by any peace officer or
representative of the Department at all reasonable times.
[8.5:78:1947; added 1949, 550; 1943 NCL § 3825.09]—(NRS A 1961,
554; 1993, 1756; 1999, 3696 )
Each
operator of a livestock auction shall issue to each purchaser of
livestock a receipt on a form approved by the Department, and the receipt
must contain:
1. The name and address of the purchaser of the livestock.
2. A description of the livestock, which must include the number
and kind, approximate age, the sex, and any visible brands or other
distinguishing or identifying marks.
(Added to NRS by 1959, 207; A 1961, 554; 1977, 159; 1993, 1757;
1999, 3696 )
1. Livestock that is under quarantine because of any contagious,
infectious or communicable disease must not be consigned to or sold
through any public livestock auction.
2. Livestock that is known to be infected with, or known to have
been exposed to, any contagious, infectious or parasitic livestock
disease must not be consigned to or sold through any public livestock
auction except under rules and regulations governing the consignments and
sales adopted by the Department.
3. The Department may require such testing, treating and examining
of livestock sold, traded, exchanged or handled at or through public
livestock auctions as in its judgment may be necessary to prevent the
spread of infectious, contagious or parasitic diseases among the
livestock of this state.
4. The Department may require operators of public livestock
auctions to reimburse the Department for actual expenses or any part
thereof incurred in testing, treating and examining livestock sold,
traded, exchanged or handled at or through those auctions.
[Part 8:78:1947; A 1949, 550; 1943 NCL § 3825.08]—(NRS A 1961, 554;
1993, 1757; 1999, 3696 )
1. The yards, pens and premises where livestock is held or handled
shall be regularly cleaned and disinfected for the purpose of preventing
infectious, contagious or parasitic livestock diseases.
2. If livestock is held on the premises for more than 10 hours,
then facilities for feeding and watering the livestock so held shall be
provided.
[Part 8:78:1947; A 1949, 550; 1943 NCL § 3825.08]—(NRS A 1961, 555)
If any public
livestock auction shall sell livestock by weight, the scales upon which
such livestock is weighed shall be regularly inspected and tested.
[Part 8:78:1947; A 1949, 550; 1943 NCL § 3825.08]
To
carry out the provisions of this chapter and to conduct inspections
pursuant thereto, the Department or any authorized representative thereof
may enter the establishment or premises where any public livestock
auction is held and inspect the records thereof at all reasonable times.
[Part 9:78:1947; 1943 NCL § 3825.10]—(NRS A 1961, 555; 1993, 1757;
1999, 3697 )
Public livestock auction facilities must include space and
facilities approved by the Director for brand inspectors to carry out
their duties in a safe and expeditious manner.
(Added to NRS by 1961, 512; A 1965, 387; 1993, 1757; 1999, 3697
)
1. The operator of a public livestock auction may apply to the
Department for a change of the weekly or monthly sales day or days
specified in his license. The application is subject to a hearing and
approval by the Director.
2. A special sale must not be conducted by the operator of a
public livestock auction unless he has applied to the Department in
writing 15 days before the proposed sale and the date of the sale is
approved by the Director.
[Part 9:78:1947; 1943 NCL § 3825.10]—(NRS A 1961, 555; 1965, 387;
1993, 1757; 1999, 3697 )
No provision of
this chapter shall impair the validity of any security agreement.
(Added to NRS by 1965, 386; A 1969, 29)
None of the provisions of this chapter
shall be deemed to apply to the Nevada Fair of Mineral Industries, 4-H
clubs, the Nevada Junior Livestock Show, the Nevada State Livestock Show,
the Nevada Hereford Association, and any other organization or
association which is entirely nonprofit in character.
[13:78:1947; added 1949, 11; 1943 NCL § 3825.14]
If the Director determines,
on the basis of any verified complaint or of any inspection or
investigation made by him pursuant to this chapter, that any operator of
a public livestock auction is violating or is about to violate any
provision of this chapter for the protection of consignor creditors, he
may order:
1. The operator to cease and desist from:
(a) Receiving or selling any livestock;
(b) Receiving or disbursing any money; or
(c) Any practice which violates any provision of this chapter or
any other law or any rule, order or regulation issued pursuant to law.
2. Any bank or credit union which holds the custodial account of
the operator, as required by NRS 573.104 , to refrain from paying out any money from the
account.
Ê The order ceases to be effective upon the expiration of 3 days,
excluding Saturdays, Sundays and other nonjudicial days, after its date
of issuance unless a court has, pursuant to NRS 573.185 , issued an order which continues the restraint.
(Added to NRS by 1965, 384; A 1993, 1758; 1999, 1515 , 3697 ; 2001, 91 )
If any licensee has
engaged or is about to engage in any acts or practices which violate or
will violate any of the provisions of this chapter or the rules and
regulations adopted by the Department, the district court of any county,
on application of the Director, may issue an injunction or other
appropriate order restraining that conduct. Proceedings under this
section are governed by Rule 65 of the Nevada Rules of Civil Procedure,
except that no bond or undertaking is required in any action commenced by
the Director.
(Added to NRS by 1965, 385; A 1993, 1758; 1999, 3697 )
1. Any person who operates a public livestock auction without a
license required by this chapter, or who violates any of the provisions
of this chapter or of any rules or regulations adopted pursuant thereto,
is guilty of a misdemeanor and, in addition to any criminal penalty,
shall pay to the Department an administrative fine of not more than
$1,000 per violation. If an administrative fine is imposed pursuant to
this section, the costs of the proceeding, including investigative costs
and attorney’s fees, may be recovered by the Department.
2. Each day’s operation in which livestock is sold or exchanged at
any unlicensed public livestock auction constitutes a separate offense.
[10:78:1947; 1943 NCL § 3825.11]—(NRS A 1961, 555; 1965, 387; 1993,
900; 1995, 548; 1999, 3698 )
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