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Pacific Law Journal Review of Selected Nevada Legislative Volume 1987 Issue 1 Article 5 1-1-1987 Agriculture; Dairy Products-Calculation of Costs University of the Pacific, McGeorge School of Law Follow this and additional works at: https://scholarlycommons.pacific.edu/nlr  Part of the Legislation Commons Recommended Citation University of the Pacific, McGeorge School of Law, Agriculture; Dairy Products-Calculation of Costs, 1987 U. PAC. L. REV. (2019). Available at: https://scholarlycommons.pacific.edu/nlr/vol1987/iss1/5 This Legislative Review is brought to you for free and open access by the Journals and Law Reviews at Scholarly Commons. It has been accepted for inclusion in Pacific Law Journal Review of Selected Nevada Legislative by an authorized editor of Scholarly Commons. For more information, please contact mgibney@pacific.edu. Agriculture Agriculture; dairy products-calculation of costs NEv. REv. STAT. § 584._ (new); §§ 584.325, 584.380, 584.445, 584.474, 584.582, 584.583, 584.584, 584.633, 584.635, 584.640 (amended). SB 211 (Jacobsen); 1987 STAT. Ch 91 Under existing law, distributors 1 and retailers2 are prohibited from manipulating the prices of fluid milk, 3 fluid cream,4 butter5 or fresh dairy by-products6 for the purpose of injuring, harassing, or destroy-ing competition, 7 and from selling those products at a price below cost. 8 Existing law further provides that a distributor who processes or manufacturers fluid milk, fluid cream, or fresh dairy by-products determines costs by considering certain factors. 9 Chapter 91 mandates that a reasonable return on capital investment must be calculated per unit of production by dividing the product of the net capital invest-ment,10 and the reasonable rate of return on capital investment, 11 by I. See NEV. REv. STAT. § 584.345 (definition of distributor). 2. See id. § 584.380 (definition of retail store). 3. See id. § 584.355 (definition of fluid milk). 4. See id. § 584.350 (definition of fluid cream). 5. See id. § 584.125 (definition of butter). 6. /d. § 584.583 I (definition of fresh dairy by-products)(amended by 1987 Nev. Stat. ch. 91, sec. 7, at_). 7. !d. § 584.582 (amended by 1987 Nev. Stat. ch. 91, sec. 6, at_). 8. !d. § 584.583 I (amended by 1987 Nev. Stat. ch. 91, sec. 7, at_). 9. !d.§ 584.583 2 (amended by 1987 Nev. Stat. ch. 91, sec. 7, at_). Cost determination factors for distributors are (a) cost of raw products based on actual cost, (b) cost of production, (c) reasonable return on capital investment, (d) producer's transportation costs, (e) costs of compliance with health regulations, and (f) overhead costs. /d. Cost determination factors for a peddler-distributor are (a) purchase price of the product, (b) overhead for handling, and (c) reasonable return on capital investment. !d. § 584.583 3 (amended by 1987 Nev. Stat, ch. 91, sec. 7, at _). 10. "Net capital investment" includes land, buildings, equipment and any other capital asset used as a rate base. 1987 Nev. Stat. ch. 91, sec. 7, at_ (amending NEv. REv. STAT. 584.583 4). II. A reasonable rate of return on capital investment is deemed' to be the rate fixed for 6-month United States treasury bills at the auction in the first week of the month of January or July immediately preceeding the date that the reasonable return on capital is calculated. !d. Review of Selected Nevada Legislation 3 Agriculture the total sales per unit of production. 12 Furthermore, overhead costs' 3 must be determined according to generally accepted principles of accounting and allocated proportionately to each unit of production. 14 CDR 12. Id. 13. Costs for overhead include: Salaries for executives and officers of the company; all other costs of labor, including indirect costs, rent, depreciation, costs for maintenance, costs incurred in delivering the product, fees for licenses, taxes and insurance, cost of materials, costs for repairs, the cost for electricity and other public utilities and all other costs that relate to the sale and distribution of the product. /d. 14. /d. 1, at_ (enacting NEV. REv. STAT. § 584._). Agriculture; underground storage and recovery of water NEv. REv. STAT. § 534._ (new); §§ 534.010, 534.050, 534.060 (amended). AB 548 (Callister); 1987 STAT. Ch 727 Under existing law, every person' desiring to sink or bore a welF in any basin must apply and obtain a permit from the state engineer3 to appropriate the water before performing any work in connection with the boring or sinking. 4 Upon a written application showing good cause, existing law authorizes the state engineer to issue a waiver of the permit requirements for: (1) exploratory wells to be drilled to determine the availability or quality of water; or (2) to allow the temporary use of water in constructing a highway or exploring for oil, gas, minerals or geothermal sources.5 Chapter 727 expands ex-isting law by permitting the state engineer to waive the permit requirements for wells drilled in shallow ground water systems that are pumped to alleviate the potential hazards resulting from the rise of ground water caused by secondary recharge. 6 1. See NEv. REv. STAT. § 534.010 1(e) (amended by 1987 Nev. Stat. ch. 727, sec. 28, at _) (definition of person). 2. See id. § 534.010 1(h) (definition of well drilling or drilling a well). 3. See generally id. §§ 532.010-.220 (defining state engineer). 4. /d. § 534.050 1. 5. Id. § 534.050 2 (amended by 1987 Nev. Stat. ch. 727, sec. 29, at _). 6. 1987 Nev. Stat. ch. 727, sec. 29, at _ (amending NEv. REv. STAT. § 534.050 2). The Legislature finds and declares that the removal of ground water from any basin in Nevada 4 Pacific Law Journal 

Agriculture; Dairy Products-Calculation of Costs

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Agriculture; Dairy Products-Calculation of Costs

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