2012 -- H 7874

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LC01826

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF BUSINESS

REGULATION

     Introduced By: Representative Donald J. Lally

     Date Introduced: March 01, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 42-14-12 of the General Laws in Chapter 42-14 entitled

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"Department of Business Regulation" is hereby amended to read as follows:

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     42-14-12. Sales of businesses. -- Any person, firm, or corporation acting Only lawyers

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licensed in the state of Rhode Island and realtors and brokers licensed in the state of Rhode Island

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may act as a broker for the sale of an existing business or the transfer of all or a substantial part of

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the materials, supplies, merchandise, or other inventory of an existing business or for the making

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of a bulk transfer under chapter 6 of title 6A for a fee, charge, or commission. shall be required to

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post a bond in the sum of twenty thousand dollars ($20,000) with the department of business

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regulation with surety or sureties approved by the director of the department. Provided, however,

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that the provisions of this section shall not apply to attorneys, any person licensed as a real estate

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broker, or real estate salesman pursuant to the provisions of chapter 20.5 of title 5, except that no

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person, firm, or corporation shall act or hold himself or herself out as a business broker unless he

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or she holds a real estate broker's license issued by the department of business regulation that has

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not been revoked. Anyone found in violation of this section shall be subject to a fine up to ten

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thousand dollars ($10,000).

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     SECTION 2. This act shall take effect upon passage.

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LC01826

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - DEPARTMENT OF BUSINESS

REGULATION

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     This act would mandate that only lawyers, realtors, and brokers licensed in the state of

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Rhode Island may act as a broker for the sale of an existing business or the transfer of all or a

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substantial part of the materials, supplies, merchandise, or other inventory of title 6A for a fee,

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charge or commission.

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     This act would take effect upon passage.

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LC01826

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