Audit criticizes dairy investigations

Friday, Oct. 12, 2001 | 9:58 a.m.

CARSON CITY -- A legislative audit says the state Dairy Commission doesn't have the records to show that it investigates complaints on unlicensed dairy distributors and unfair pricing practices.

The audit, released Thursday, said the commission staff typically does "not document important information such as the establishment visited, location, procedures performed and result of each investigation."

The examination, submitted to the Legislative Audit Committee said, "Without information on complaint investigations, management does not have adequate assurance that all complaints are investigated timely and appropriately resolved."

Sen. Mark Amodei, R-Carson City, said the audit "tells me the public is not being protected." He questioned if any violations of the law have been submitted to the state Attorney General for prosecution.

Before his statements, Amodei disclosed his law practice represented Comstock Distributing Co., in Carson City, which distributes Model Dairy products. But Amodei said he has withdrawn as counsel for that company.

Stacy Jennings, executive director of the dairy commission, told the committee that the investigations of the complaints have been done. But they have not been documented. She said the investigators report the results to superiors verbally. She said the system would be improved.

There are about 40 dairies in the state, five of them in Southern Nevada.

The audit said the commission does not always collect late fees when licenses fail to pay their assessments on time. The agency is financed by fees from the dairy industry and it investigations are done primarily at retail stores to see if unlicensed distributors are selling their products and if they are being sold below cost, in violation of regulations.

The examination said management is taking steps to improve the operations. It was instrumental in getting Southern Nevada dairy producers and farmers exempted from the Federal Milk Marketing Order in October. 1999. The exemption protected producers from paying a higher price for raw milk that could have hampered their ability to complete with out-of-state producers.

The audit said, "As a result, the state Dairy Commission became responsible for setting the raw milk product pricing in Southern Nevada."