[Rev. 11/21/2013 12:25:08 PM--2013]
NRS 573.010 Definitions.
NRS 573.015 Declaration of policy.
NRS 573.020 Holding of public livestock auction without license prohibited; procedure for application for license.
NRS 573.030 Bond required for issuance of license; deposit in lieu of bond.
NRS 573.033 Details and amount of bond; liability of surety.
NRS 573.035 Bond of market agency.
NRS 573.037 Deposit in lieu of bond: Amount; action for recovery against deposit; retention by Department.
NRS 573.040 Fee for license.
NRS 573.050 Issuance of license.
NRS 573.060 Separate license required for each establishment or premises.
NRS 573.070 Form of license.
NRS 573.080 Renewal of license.
NRS 573.090 Display of license.
NRS 573.100 Denial, suspension or revocation of license; notice and hearing.
NRS 573.103 Audits of accounts.
NRS 573.104 Custodial accounts for consignors’ proceeds.
NRS 573.105 Line of credit: Duty of Department to ascertain continued existence and amount or replacement; suspension of license for failure to maintain.
NRS 573.106 Payment of net proceeds of sales to consignors.
NRS 573.107 Actions by consignor creditor or Director on bond.
NRS 573.108 Duties of Director when licensee fails to pay consignor creditor; settlement or compromise on bond; action by Director; subpoenas.
NRS 573.109 District court’s power to compel attendance of witnesses and production of books and papers; orders.
NRS 573.110 Records to be maintained by licensee: Contents; location; inspection; retention.
NRS 573.120 Records to be maintained by person buying or receiving livestock for slaughter on consignment or for commission or fee: Contents; inspection; retention.
NRS 573.125 Operator to issue receipts to purchasers.
NRS 573.130 Regulation of sales of livestock under quarantine or infected or exposed to contagious, infectious or parasitic livestock disease; testing, treating and examination of livestock.
NRS 573.140 Sanitation of premises; facilities for feed and water.
NRS 573.150 Inspection and testing of scales.
NRS 573.160 Inspection of premises and records by Department.
NRS 573.165 Approved space and facilities to be provided for brand inspection.
NRS 573.170 Change of sale days: Procedure; special sales.
NRS 573.175 Security agreements not impaired.
NRS 573.180 Exemption from provisions of chapter for nonprofit organizations and associations.
NRS 573.183 Cease and desist orders.
NRS 573.185 Injunctions; restraining orders.
NRS 573.190 Penalties.
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.
NRS 573.015 Declaration of policy. 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 the applicant’s 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 the applicant.
3. The application must be accompanied by a bond or deposit receipt and the required fee as provided in this chapter.
NRS 573.030 Bond required for issuance of license; deposit in lieu of bond. 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.
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.
NRS 573.035 Bond of market agency. 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.
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.
[Part 4:78:1947; 1943 NCL § 3825.04]—(NRS A 1961, 552; 1999, 3597)
NRS 573.050 Issuance of license. 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.
NRS 573.060 Separate license required for each establishment or premises. 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]
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 573.090 Display of license. 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 or her 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 or her 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 the applicant’s or licensee’s 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 the person’s 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 the person 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.
1. Except as otherwise provided in subsection 2, every operator of a public livestock auction shall cause his or her 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.
1. Each licensee shall deposit the gross proceeds received by him or her 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 the licensee’s 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 or her services; and
(c) For such sums as are necessary to pay all legal charges against the consignment of livestock which the licensee in his or her 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.
NRS 573.105 Line of credit: Duty of Department to ascertain continued existence and amount or replacement; suspension of license for failure to maintain. 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.
NRS 573.106 Payment of net proceeds of sales to consignors. 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.
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 or her last known address.
2. If a consignor creditor so addressed fails, refuses or neglects to file in the office of the Director the consignor creditor’s 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 the Director’s 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 or her 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 the Director, together with all books, memoranda, papers and other documents relating to the matters under investigation.
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 the witness 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 the witness 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.
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.
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.
NRS 573.125 Operator to issue receipts to purchasers. 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.
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.
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)
[Part 8:78:1947; A 1949, 550; 1943 NCL § 3825.08]
NRS 573.160 Inspection of premises and records by Department. 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.
NRS 573.165 Approved space and facilities to be provided for brand inspection. 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.
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 the operator’s 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 the operator has applied to the Department in writing 15 days before the proposed sale and the date of the sale is approved by the Director.
(Added to NRS by 1965, 386; A 1969, 29)
NRS 573.180 Exemption from provisions of chapter for nonprofit organizations and associations. 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]
NRS 573.183 Cease and desist orders. If the Director determines, on the basis of any verified complaint or of any inspection or investigation made by him or her 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, the Director 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.
NRS 573.185 Injunctions; restraining orders. 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.
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.