AB352 - Revises provisions relating to businesses. (BDR 51-890)

- 83rd Session (2025) Assembly Bill No. 352–Assemblymember Anderson CHAPTER.......... AN ACT relating to businesses; requiring a person who wishes to conduct a cottage cosmetics operation to apply to the State Department of Agriculture for a license; setting forth requirements and fees relating to a cottage cosmetics operation; exempting a cottage cosmetics operation from certain licensing requirements; revising and reorganizing certain provisions governing cottage food establishments; requiring a person who wishes to conduct a cottage food operation to apply to the Department; revising certain provisions governing craft food operations; revising provisions governing farm-to-fork events; applying certain provisions governing food delivery service platforms to the delivery of food items from a cottage food operation; providing a penalty; providing other matters properly relating thereto. Legislative Counsel’s Digest: Under existing law, the Commissioner of Food and Drugs is required to adopt regulations for the licensing of every person who manufactures, compounds, processes or packages drugs, devices or cosmetics in this State. (NRS 585.245) Section 20 of this bill exempts, with certain exceptions, cottage cosmetics operations from the provisions of law governing the licensing, regulation, fees and inspection of such persons by the Commissioner. Section 4 of this bill defines the term “cottage cosmetics operation” to mean a natural person: (1) who manufactures or prepares cosmetics in his or her private home or in a kitchen that is not otherwise required by law to be inspected for the preparation of a cosmetic, for sale to a natural person; and (2) whose gross sales of such cosmetics are not more than $100,000 per year. Section 3 of this bill defines the term “cosmetic.” Sections 5 and 6 of this bill define certain other terms relating to cottage cosmetics operations. Section 2 of this bill applies these definitions to the provisions of sections 2-11.5 of this bill. Section 7 requires a person who wishes to conduct a cottage cosmetics operation to apply to the State Department of Agriculture for a license to conduct a cottage cosmetics operation and prescribes certain requirements for such an application. Section 7 authorizes the Department to: (1) charge certain fees for the issuance and renewal of a license to conduct a cottage cosmetics operation; and (2) inspect a cottage cosmetics operation for certain purposes and charge a fee for the inspection if the cottage cosmetics operation produced an adulterated or misbranded cosmetic or was the source of an outbreak of illness caused by a contaminated cosmetic. Section 7 also requires the Department to maintain a registry of each person who holds an active license to conduct a cottage cosmetics establishment. Section 10 requires the Director of the Department to adopt certain regulations governing cottage cosmetics operations. Section 11 of this bill authorizes the Director to impose a civil penalty of not more than $500 for a violation of the provisions of sections 2-11.5. Section 21 of this bill provides that the civil penalty is an exception to the criminal penalties imposed for other violations of the provisions relating to food, drugs and cosmetics. – 2 – - 83rd Session (2025) Section 11.5: (1) prohibits certain entities from adopting an ordinance or other regulation that prohibits a natural person from operating a cottage cosmetics operation; and (2) provides that the provisions of sections 2-11.5 do not prohibit certain entities from regulating the time, place or manner of a cottage cosmetics operation, provided that such regulations do not unreasonably restrict or prohibit a person from conducting a cottage cosmetics operation. Existing law sets forth certain requirements for a food establishment that prepares food intended for human consumption. (NRS 446.0145-446.945) Existing law exempts a cottage food operation from such requirements and requires a person who wishes to conduct a cottage food operation to register with a certain health authority. (NRS 446.866) Section 16 of this bill instead requires a person who wishes to conduct a cottage food operation to apply to the Department for a license to conduct a cottage food operation. Sections 14-16 of this bill revise and reorganize the existing provisions governing cottage food operations into new sections of the Nevada Revised Statutes. Section 28 of this bill repeals an existing provision governing cottage food operations made redundant by section 16. Section 14 revises the definition of “cottage food operation” to apply to a natural person who manufactures or prepares food items in his or her private home or in a kitchen that is not otherwise required by law to be inspected for the purposes of preparing a food item, for sale and whose gross sales of such food items are not more than $100,000 per calendar year. Section 15 revises the definition of “food item” to include, certain food items. Additionally, section 16 authorizes a cottage food operation to: (1) sell food items via a transaction by telephone or via the Internet; and (2) fulfill a transaction in person, by mail or through a food delivery service platform. Section 26 of this bill makes a cottage food operation a “food dispensing establishment,” thereby applying the provisions governing the food delivery service platforms to the delivery of food items from a cottage food operation. Section 16 authorizes the Department to charge certain fees for the issuance and renewal of a license to conduct a cottage food operation. Section 16 further requires the Department to maintain a registry of each person who holds an active license to conduct a cottage food operation. Section 19 of this bill requires the Director of the Department to adopt certain regulations governing cottage food operations. Section 19.5 of this bill: (1) prohibits certain entities from adopting an ordinance or other regulation that prohibits a person from preparing food in a cottage operation; and (2) provides that the provisions of sections 12-19.5 do not prohibit certain entities from regulating the time, place or manner of a cottage food operation, provided that such regulations do not unreasonably restrict or prohibit a person from conducting a cottage food operation. Section 23 of this bill revises the definition of “food establishment” to reflect the reorganization of provisions governing cottage food operations. Existing federal law requires each state to adopt procedures to ensure that applicants for certain licenses and certificates comply with child support obligations. (42 U.S.C. § 666) Sections 8, 9, 17 and 18 enact such procedures as applicable to an applicant for a license to conduct a cottage cosmetics operation and an applicant for a license to conduct a cottage food operation in order to comply with federal law. Existing law provides that the penalty for a violation of any provision of existing law relating to agricultural products and seeds is a civil penalty of not more than $500 for each violation. (NRS 587.900) This penalty applies to sections 12- 19.5 of this bill. Existing law exempts a farm from certain provisions governing food establishments for the purposes of holding a farm-to-fork event under certain – 3 – - 83rd Session (2025) conditions. (NRS 446.868) Section 24 of this bill authorizes a farm holding such an event to serve certain food items provided that: (1) any livestock or game animal that is served at the event is butchered and processed on the farm in accordance with certain provisions of law or was inspected and approved under a certain inspection program; and (2) certain other food items served at the farm-to-fork event are sourced from certain facilities or was inspected and approved under a certain inspection program. Section 24 also exempts: (1) a farm from certain provisions governing food establishments provided that the farm holds four events or less in a month; and (2) a farm that holds more than four events during a harvest or holiday season from such provisions. Section 25 of this bill prohibits the Department from charging a fee for the registration of a farm to hold farm-to-fork events when the annual revenue of the farm for the preceding calendar year was less than $100,000. Existing law sets forth certain requirements for a craft food operation in which a person manufactures or prepares acidified foods in certain kitchens and whose gross sales of such foods are not more than $35,000 per calendar year and authorizes the Department to adopt certain regulations governing such operations. (NRS 587.691-587.699) Section 21.2 of this bill increases the amount of gross sales that a craft food operation may have to not more than $100,000 per calendar year. Section 21.4 of this bill authorizes a craft food operation to sell acidified foods in a transaction by telephone or via the Internet and requires that the sale be fulfilled in person. Section 21.6 of this bill eliminates the requirements that an acidified food be produced by a person who: (1) maintains a log and supporting documentation concerning the canning date for each batch of acidified foods produced by the person; and (2) uses only certain canning recipes. Section 21.8 of this bill eliminates the authority of the Department to charge a fee to a person who produces acidified food for a course of training and an examination. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 585 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 19.5, inclusive of this act. Sec. 2. As used in sections 2 to 11.5, inclusive, of this act, unless the context otherwise requires, the words and terms defined in sections 3 to 6, inclusive, of this act have the meanings ascribed to them in those sections. Sec. 3. “Cosmetic” means: 1. Bath preparations, including, without limitation, oils, tablets, salts, bubble baths and bath capsules; 2. Fragrance preparations, including, without limitation, colognes, perfumes and powders; 3. Noncoloring hair preparations, including, without limitation, conditioners, rinses and shampoos; – 4 – - 83rd Session (2025) 4. Personal cleanliness preparations, including, without limitation, bath soaps, body washes and deodorants; and 5. Skin care preparations for the body and hands, including, without limitation, lotions, salves, balms and skin fresheners. Sec. 4. “Cottage cosmetics operation”: 1. Means a natural person: (a) Who manufactures or prepares cosmetics in his or her private home or in a kitchen that is not otherwise required by law to be inspected for the purposes of preparing a cosmetic, for sale to a natural person; and (b) Whose gross sales of such cosmetics are not more than $100,000 per year. 2. The term does not include an operation that engages in the manufacturing or processing of any of the products described in 21 U.S.C. § 364h(b). Sec. 5. “Department” means the State Department of Agriculture. Sec. 6. “Director” means the Director of the Department. Sec. 7. 1. A person shall not conduct a cottage cosmetics operation unless the person holds a license issued pursuant to subsection 2. 2. A natural person who wishes to obtain a license to conduct a cottage cosmetics operation must submit to the Department an application on a form prescribed by the Director. The application must include, without limitation: (a) The name, address and contact information of the natural person conducting the cottage cosmetics operation; and (b) If the cottage cosmetics operation sells cosmetics under a name other than the name of the natural person who conducts the cottage cosmetics operation, the name under which the cottage cosmetics operation sells cosmetics. 3. The Department may charge a fee for the issuance or renewal of a license to conduct a cottage cosmetics operation pursuant to subsection 2 in an amount not to exceed the actual cost of the Department to issue or renew a license and maintain the registry required by subsection 6. 4. The Department may inspect a cottage cosmetics operation only to investigate a cosmetic that may be deemed to be adulterated or misbranded pursuant to NRS 585.500 and 585.510, or an outbreak or suspected outbreak of illness known or suspected to be caused by an adulterated cosmetic. The cottage cosmetics operation shall cooperate with the Department in any such inspection. If, as a result of such an inspection, the – 5 – - 83rd Session (2025) Department determines that the cottage cosmetics operation has produced an adulterated or misbranded cosmetic or was the source of an outbreak caused by a contaminated cosmetic, the Department may charge and collect from the cottage cosmetics operation a fee in an amount that does not exceed the actual cost of the Department to conduct the investigation. 5. The Department shall maintain a registry of each natural person who holds an active license to conduct a cottage cosmetics operation. The registry must include, without limitation, the name under which the cottage cosmetics operation sells cosmetics. Sec. 8. 1. In addition to any other requirements set forth in sections 2 to 11.5, inclusive, of this act, an applicant for a license or the renewal of a license to conduct a cottage cosmetics operation shall: (a) Include the social security number or alternative personally identifying number, including, without limitation, an individual taxpayer identification number, of the applicant in the application submitted to the Department pursuant to section 7 of this act. (b) Submit to the Department the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be completed and signed by the applicant. 2. The Department shall include the statement required pursuant to subsection 1 in: (a) The application or any other forms that must be submitted for the issuance or renewal of the license; or (b) A separate form prescribed by the Department. 3. A license to conduct a cottage cosmetics operation may not be issued or renewed by the Department if the applicant: (a) Fails to submit the statement required pursuant to subsection 1; or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance [Text truncated for display. Full text available on LegiScan.]