2014 -- H 8104 SUBSTITUTE A

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LC005208/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     Introduced By: Representatives DeSimone, and Newberry

     Date Introduced: April 30, 2014

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 3-10-1 and 3-10-5 of the General Laws in Chapter 3-10 entitled

"Taxation of Beverages" are hereby amended to read as follows:

     3-10-1. Manufacturing tax rates -- Exemption of religious uses. -- (a) There shall be

assessed and levied by the tax administrator on all beverages manufactured, rectified, blended, or

reduced for sale in this state a tax of three dollars and thirty cents ($3.30) on every thirty-one (31)

gallons, and a tax at a like rate for any other quantity or fractional part. On any beverage

manufactured, rectified, blended, or reduced for sale in this state consisting in whole or in part of

wine, whiskey, rum, gin, brandy spirits, ethyl alcohol, or other strong liquors (as distinguished

from beer or other brewery products), the tax to be assessed and levied is as follows:

      (1) Still wines (whether fortified or not), one dollar and forty cents ($1.40) per gallon;

      (2) Still wines (whether fortified or not) made entirely from fruit grown in this state,

thirty cents ($.30) per gallon;

      (3) Sparkling wines (whether fortified or not), seventy five cents ($.75) per gallon;

      (4) Whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting in whole

or in part of alcohol which that is the product of distillation, five dollars and forty cents ($5.40)

per gallon, except that whiskey, rum, gin, brandy spirits, cordials, and other beverages consisting

in whole or in part of alcohol which that is the product of distillation but which that contains

alcohol measuring thirty (30) proof or less, one dollar and ten cents ($1.10) per gallon;

      (5) Ethyl alcohol to be used for beverage purposes, seven dollars and fifty cents ($7.50)

per gallon; and

      (6) Ethyl alcohol to be used for nonbeverage purposes, eight cents ($.08) per gallon.

      (b) Sacramental wines are not subject to any tax if sold directly to a member of the

clergy for use by the purchaser, or his or her congregation for sacramental or other religious

purposes.

      (c) A brewer who brews beer in this state which that is actively and directly owned,

managed, and operated by an authorized legal entity which that has owned, managed, and

operated a brewery in this state for at least twelve (12) consecutive months, shall receive a tax

exemption on the first one hundred thousand (100,000) barrels of beer that it produces and

distributes in this state in any calendar year. A barrel of beer is thirty one (31) gallons.

     3-10-5. Information supplemental to returns -- Audit of books. -- (a) The tax

administrator may at any time request further information from any person or from the officers

and employees of any corporation which that he or she may deem necessary to verify, explain, or

correct any return made in pursuance of the provisions of this chapter, and for the like purpose,

the administrator or his or her authorized agent may examine the books of account of that person

or corporation during business hours.

      (b) Each Class A licensee authorized to sell intoxicating beverages at wholesale or retail

in this state shall file an annual report on or before February 1 with the division of taxation in the

form required by the tax administrator. Such report shall included, but not be limited to, total

sales of alcoholic beverages, sales tax, and excise tax collections on such sales for the

immediately preceding calendar year. Annually, on or before May 1, the tax administrator shall

prepare and submit to the chairs of the house and senate finance committees a report reflecting

data from the annuals annual reports submitted by said licensee to the division of taxation. The

tax administrator's report shall compile total sales of alcoholic beverages, sales tax, and excise tax

collections by county.

     SECTION 2. Sections 5-20.6-2, 5-20.6-3, 5-20.6-4, 5-20.6-5, 5-20.6-6 and 5-20.6-8 of

the General Laws in Chapter 5-20.6 entitled "Relationships in Residential Real Estate

Transactions" are hereby amended to read as follows:

     5-20.6-2. Definitions. -- As used in this chapter, the following terms shall have the

following meanings:

      (1) "Affiliated licensee" means a licensed real estate salesperson or real estate broker as

defined in section § 5-20.5-1 associated with a particular principal broker.

      (2) "Brokerage" means a principal broker as defined in section § 5-20.5-8 and his or her

affiliated licensees.

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      (3) "Buyer" means a person who acquires or seeks to acquire an ownership interest in

real estate.

      (4) "Client" means a buyer, seller, tenant, or landlord who has agreed to representation

by a licensee in a real estate transaction, evidenced by an executed, mandatory relationship

disclosure, to whom a licensee owes the duties set forth in section § 5-20.6-5.

      (5) "Client representation contract" means an express, written contract between a

principal broker or his or her affiliated licensees and a client that who authorizes the principal

broker or his or her affiliated licensees to act as a client representative for a buyer, seller,

landlord, or tenant and meets the requirements of section § 5-20.6-10.

      (6) "Confidential information" means the following information:

      (i) A buyer buyer's or tenant's willingness to pay more than the offered price;

      (ii) A seller seller's or landlord's willingness to accept less than the asking price;

      (iii) A buyer buyer's or tenant's previous offers made to purchase or lease real estate;

      (iv) A seller seller's or landlord's previous offers received to purchase or lease real estate;

      (v) Any parties' motivating factors;

      (vi) Any parties' willingness to agree to other financing terms;

      (vii) Any facts or suspicions regarding circumstances, other than known, material defects

of a property that a licensee must in all cases disclose, that may psychologically impact or

stigmatize any real estate; or

      (viii) Any information about a party's assets, liabilities, income, or expenses.

      (7) "Customer" means a buyer, seller, tenant, or landlord who has agreed to certain

assistance by a licensee in a real estate transaction, evidenced by an executed, mandatory

relationship disclosure, to whom a licensee owes the duties set forth in section § 5-20.6-4.

      (8) "Designated client representative" means an affiliated licensee appointed by the

principal broker or his or her designee to represent a buyer, seller, tenant, or landlord in a real

estate transaction.

      The affiliated licensee so designated shall obtain the informed, written consent of the

buyer, seller, tenant, or landlord with a signed mandatory relationship disclosure pursuant to

section § 5-20.6-8.

      (9) "Designee" means an associate broker as defined in section § 5-20.5-1 whom a

principal broker authorizes to act on his or her behalf.

      (10) "Director" means the director of business regulation for the state.

      (11) "Dual facilitator" means a single licensee who, with the prior written consent of

both parties assists a seller client and a buyer client in the same transaction subject to the

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limitations set forth in section § 5-20.6-6.

      (12) "Landlord" means a person who leases or attempts to lease his or her ownership

interest in real estate to another person.

      (13) "Lease" means an express written or oral contract between a landlord and tenant for

the use or occupancy by the tenant of real estate that is owned by another person.

      (14) "Licensee" means an individual licensed by the director as a real estate broker or

real estate salesperson pursuant to chapter 5-20.5 20.5 of this title.

      (15) "Mandatory relationship disclosure" means a form that describes the relationship

between a consumer and a principal broker and his or her affiliated licensees that meets the

requirements of section § 5-20.6-8.

      (16) "Ministerial acts" means acts of an administrative nature that licensees perform for

client or customers, including, but not limited to, showing property; preparing offers or

agreements to sell, purchase, exchange, rent, or lease; conveying offers or agreements to the

parties; and providing information and assistance.

      (17) "Principal broker" means a real estate broker licensed by the director who is

designated by the brokerage to be responsible for the supervision and activities of his or her

affiliated licensees in accordance with this chapter and chapter 5-20.5 20.5 of this title.

      (18) "Real estate" refers to vacant land on which a building is intended to be constructed

for use as one or two (2) residential dwellings or land with physical improvements consisting of a

house and/or structure comprised of four (4) or fewer residential units.

      (19) "Sales agreement" means an express written contract signed by the buyer and seller

for the purchase and sale of the real estate.

      (20) "Sell," "sale," or "sold" means a transaction for the transfer of real estate from a

seller to a buyer, including, but not limited to, exchanges of real estate between the seller and

buyer and transactions involving the creation of a sales agreement.

      (21) "Seller" means a person who sells or attempts to sell an ownership interest in real

estate to another person.

      (22) "Tenant" means a person who acquired or seeks to acquire an interest in real estate

that entitles him or her to occupy or use a property that is owned by another person.

      (23) "Transaction coordinator" means a principal broker or his or her designee who

supervises a real estate transaction in a capacity in which one affiliated licensee represents a

buyer or tenant as a designated client representative and another affiliated licensee represents a

seller or landlord as a designated client representative in the same transaction. A transaction

coordinator does not own owe any fiduciary duties to any party in a transaction except the duties

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to protect the confidential information of the parties and to properly account for money placed in

his or her care.

      (24) "Transaction facilitator" means a licensee who provides assistance to a buyer, seller,

tenant, or landlord, or both, in a real estate transaction. A transaction facilitator does not owe any

fiduciary duties to any party in a transaction but does owe the duties set forth in section § 5-20.6-

4.

     5-20.6-3. Relationships -- Creation and presumption. -- (a) It shall be presumed that

all licensees in a real estate transaction are transaction facilitators unless, the licensee obtains the

informed, written consent of a buyer, seller, tenant, or landlord with an executed mandatory

relationship disclosure to represent that person as a designated client representative.

      (b) The provisions of this chapter are expressly intended to abrogate the common law of

agency; no type of agency representation shall be assumed by a brokerage, principal broker,

licensee, buyer, seller, tenant, or landlord nor shall agency representation be created by

implication.

      (c) Types of relationships. - The following types of relationships are recognized:

      (1) Assistance as a transaction facilitator to assist one or more customers; and

      (2) Representation of a buyer, seller, tenant, or landlord as a designated client

representative.

     5-20.6-4. Duties owed by a transaction facilitator to a customer. -- (a) A transaction

facilitator owes the following duties to a customer:

      (1) To perform agreed-upon ministerial acts timely and competently;

      (2) To perform these acts with honesty, good faith, reasonable skill, and care;

      (3) To properly account for money or property placed in the care and responsibility of

the principal broker; and

      (4) To protect confidential information when assisting customers as a dual facilitator.

      (b) A licensee acting as a transaction facilitator does not owe any fiduciary duties to a

customer except those duties specified in paragraph subsection (a).

     5-20.6-5. Duties owed by a designated client representative to client. -- (a) If an

affiliated licensee is appointed by the principal broker or his or her designee to represent a buyer,

seller, tenant, or landlord in a real estate transaction and obtains the written consent of a buyer,

seller, tenant, or landlord with an executed, mandatory relationship disclosure to represent that

person as a designated client representative, the licensee owes the following legal duties and

obligations to his or her client:

      (1) To perform the terms of the client representation contract, if any, with reasonable

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skill and care;

      (2) To promote the client's best interest in good faith and honesty;

      (3) To protect the client's confidential information during the relationship and after its

termination;

      (4) To perform agreed-upon ministerial acts timely and competently;

      (5) To perform these acts with honesty, good faith, reasonable skill and care; and

      (6) To properly account for money or property placed in the care and responsibility of

the principal broker.

      (b) A principal broker or his or her designee may appoint one or more affiliated licensees

to act as the designated client representative(s) of a seller or landlord and one or more affiliated

licensees to act as the designated client representative(s) of a buyer or tenant in the same

transaction; provided; that, all parties to the transaction receive written notice that an inherent

conflict of interest may exist when designated client representatives are affiliated with the same

principal broker.

      (c) A designated, client representative of a seller client or landlord client shall have no

duty to protect the confidential information of a buyer customer or tenant customer involved in a

transaction with his or her client. Conversely, a designated client representative of a buyer client

or tenant client shall have no duty to protect the confidential information of a seller customer or

landlord customer involved in a transaction with his or her client.

      (d) In the event that one or more affiliated licensees represent a seller as a designated

client representative and one or more affiliated licensees represent the buyer as a designated client

representative in the same transaction, the principal broker or his or her designee shall act in a

capacity as the transaction coordinator and shall protect the confidential information of all parties

to the transaction and properly account for funds.

      (e) No affiliated licensees of the principal broker, other than those licensee(s)

specifically designated to represent the client as a designated client representative, shall represent

the client or owe any other duties except that affiliated licensees not appointed to represent a

client in a transaction shall have the duty to protect the client's confidential information.

      (f) All other affiliated licensees of the principal broker not appointed as a designated

client representative for a party in a real estate transaction may represent another party with

conflicting interests in the same transaction.

      (g) A designated client representative is exclusively responsible for the performance of

any duties owed to the client.

      (h) An appointment of a designated, client representative by a principal broker or his or

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her designee to represent a client shall not limit the principal broker's liability or responsibility for

any breach of duty owed to a client by the designated client representative.

     5-20.6-6. Dual facilitator. -- (a) A licensee may assist both the buyer client and the seller

client or tenant client and landlord client in the same transaction only as a neutral dual facilitator.

      (b) The dual facilitator relationship between the licensee and buyer and seller, or

between the licensee and tenant client and landlord client, exists solely for the specific transaction

between the parties. In the event the transaction is not completed or fails to close, then the dual

facilitator remains the designated client representative for the respective buyer and the seller or

tenant and landlord in all future, separate transactions where there is no relationship with the

other party.

      (c) A licensee may be a neutral dual facilitator only after he or she has obtained the

informed, written consent of his or her principal broker and all parties involved in the transaction

before presenting an offer to a seller client on behalf of a buyer client or to a landlord client on

behalf of a tenant client. Such consent shall specifically inform all parties to the transaction of the

following:

      (1) The dual facilitator is authorized to assist both parties in a transaction but shall be

neutral as to any conflicting interests between the parties to the transaction;

      (2) A dual facilitator shall owe a duty to protect the confidential information of all

parties and a duty to account for funds;

      (3) Confidential information obtained by a dual facilitator from either party may not be

disclosed except:

      (i) If disclosure is expressly authorized;

      (ii) If such disclosure is required by law;

      (iii) If such disclosure is intended to prevent illegal conduct; or

      (iv) If such disclosure is necessary to prosecute a claim against a person represented or to

defend a claim against the licensee. The duty to protect confidential information shall continue

after the completion of the transaction; and

      (4) If a comparative market analysis was prepared for a seller client or a buyer client and

a dual facilitation situation subsequently arises, the dual facilitator may only provide the

comparative market analysis to the other party with the prior consent of the party for whom it was

initially prepared. A dual facilitator shall not be able to prepare a comparative market analysis for

either party after a dual facilitation situation arises as it may adversely affect one party's

bargaining position relative to the other party.

      In the event that either the seller client or buyer client in the case of a sale of property, or

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the landlord client and the tenant client in the case of a rental of property, does not consent to dual

facilitation, then the principal broker or his or her designee, may, with the consent of the

party(ies) withholding consent designate another licensee to represent one of the parties as a

designated client representative.

      In the event that an affiliated licensee is acting as a dual facilitator, the principal broker

or his or her designee shall act as a transaction coordinator in the transaction and shall protect the

parties' confidential information. In the event that the clients of a principal broker consent to his

or her acting as a disclosed dual facilitator, the principal broker may also oversee the transaction

as a transaction coordinator.

     5-20.6-8. Mandatory relationship disclosure. -- (a) The Rhode Island real estate

commission shall approve a mandatory relationship disclosure that conforms to the requirements

of this section.

      (b) A licensee shall provide a prospective buyer, seller, tenant, or landlord in a real estate

transaction with a copy of the mandatory relationship disclosure and shall obtain a signed

acknowledgement of receipt from the buyer, seller, tenant, or landlord prior to the disclosure of

any confidential information. If a buyer, seller, tenant, or landlord, refuses to sign an

acknowledgement of receipt, the licensee shall set forth, sign, and date a written declaration of the

facts of the refusal.

      (c) The mandatory relationship disclosure shall contain the following information:

      (1) A list of the types of representation or assistance available to a prospective buyer,

seller, tenant, or landlord consistent with section § 5-20.6-3;

      (2) A statement that a principal broker and his or her affiliated licensees must disclose

their relationship as a designated client representative, transaction facilitator, or transaction

coordinator to the buyer, seller, tenant, or landlord in any transaction;

      (3) The legal duties and obligations owed to the buyer, seller, tenant, or landlord in each

type of relationship as set forth in this chapter and chapter 5-20.5 of this title;

      (4) A conspicuous notice that a licensee cannot act as a client representative for a

prospective buyer, seller, tenant, or landlord unless the licensee obtains the informed written

consent of a prospective buyer, seller, tenant, or landlord with a signed mandatory relationship

disclosure;

      (5) A box for the client or customer to select the type of representation or assistance that

he or she desires;

      (6) A box for the client or customer to acknowledge the type of representation or

assistance that a real estate licensee is offering to the other party in the same transaction.

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      (7) A statement that a principal broker may designate one or more affiliated licensees to

act as the designated client representative(s) of a seller or landlord and one or more affiliated

licensees to act as the designated client representative(s) of a buyer or tenant in the same

transaction; provided, that the licensee obtains the consent from the client being represented;

      (8) A statement that, when the principal broker or his or her designee appoints

designated client representatives to represent clients on different sides of a transaction, he or she

shall: (i) act in a neutral capacity as a transaction coordinator; (ii) protect all parties' confidential

information; and (iii) properly account for funds;

      (9) A statement that all affiliated licensees not appointed as a designated client

representative for the client may represent another party in a transaction with conflicting interests;

      (10) An explanation of the potential conflicts of interest that exist if a licensee acts for

more than one party in the same transaction;

      (11) A statement that a principal broker and his or her affiliated licensees must disclose

their relationship as a designated client representative, transaction facilitator, or transaction

coordinator to the buyer, seller, tenant, or landlord in any transaction;

      (12) A statement that the failure of a licensee to give a prospective buyer, seller, tenant,

or landlord the mandatory relationship disclosure timely, or the failure of a licensee to obtain any

other written consent required by this chapter, shall be a violation of Rhode Island real estate

license law and may subject the licensee to disciplinary action;

      (13) A statement that if a consumer desires to change the nature of a relationship with a

licensee from a customer relationship to a client relationship that a licensee's relationship with a

buyer, seller, tenant, or landlord as a designated client representative must be established no later

than the preparation of a sales agreement, offer to purchase, or lease; and

      (14) Written confirmation from each party signing the mandatory relationship disclosure

that he or she has received, read, and understood this mandatory relationship disclosure and has

consented to the relationship confirmed above.

      (d) In all instances, a licensee's relationship with a buyer, seller, tenant, or landlord as a

designated client representative must be established, and the mandatory relationship disclosure

executed, no later than the preparation of a sales agreement, offer to purchase, or lease.

     SECTION 3. Sections 5-34-3, 5-34-4, 5-34-7, 5-34-40, 5-34-43, 5-34-44 and 5-34-45 of

the General Laws in Chapter 5-34 entitled "Nurses" are hereby amended to read as follows:

     5-34-3. Definitions. -- As used in this chapter:

      (1) "Advanced practice registered nurse" (APRN) is the title given to an individual

licensed to practice advanced practice registered nursing within one of the following roles:

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certified nurse practitioner (CNP), certified registered nurse anesthetist (CRNA) as defined in

chapter 5-34.2, 34.2 of this title, or certified clinical nurse specialist (CNS), and who functions in

a population focus. An APRN may serve as a primary or acute-care provider of record.

      (2) "Advanced practice registered nursing" means an independent and expanded scope of

nursing in a role and population focus approved by the Board of Nurse Registration and Nursing

Education board of nurse registration and nursing education that includes the registered nurse

scope of practice and may include, but is not limited to, performing acts of advanced assessment,

diagnosing, prescribing and ordering. Each APRN is accountable to patients, the nursing

profession, and the Board of Nursing board of nursing for complying with the requirements of

this chapter and the quality of advanced nursing care rendered; recognizing limits of knowledge

and experience; planning for the management of situations beyond the APRN's expertise; and for

consulting with or referring patients to other health care providers as appropriate.

      (3) "Approval" means the process where the board of nursing evaluates and grants

official recognition to basic, nursing education programs meeting established criteria and

standards.

      (4) "Certified nurse practitioner" is an advanced practice nurse utilizing independent

knowledge of physical assessment, diagnosis, and management of health care and illnesses. The

practice includes prescriptive privileges. Certified nurse practitioners are members of the health

care delivery system practicing in areas including, but not limited to: family practice, pediatrics,

adult health care, geriatrics, and women's health care in primary, acute, long-term and critical

care settings in health care facilities and the community. Certified nurse practitioners may be

recognized as the primary care provider or acute-care provider of record.

      (5) "Certified Clinical Nurse Specialist" is an advanced practice registered nurse that

who independently provides care to clients,; facilitates attainment of health goals,; and provides

innovation in nursing practice, based on clinical expertise, evidence-based decision-making, and

leadership skills. The clinical nurse specialist practices with individual clients and populations;

nurses, and other multidisciplinary team members and organizations to effect system-wide

systemwide changes to improve programs of care. The practice may include prescriptive

privileges.

      (6) Certified registered nurse anesthetist is as defined in chapter 5-34.2 34.2 of this title

("Nurse Anesthetist").

      (7) "Department" means the department of health.

      (8) "Health" means optimum well-being.

      (9) "Healthcare" means those services provided to promote the optimum well-being of

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individuals.

      (10) "Licensed" means the status of qualified individuals who have completed a

designated process by which the board of nursing grants permission to individuals accountable

and/or responsible for the practice of nursing and to engage in that practice, prohibiting all others

from legally doing so.

      (11) "Nursing" means the provision of services that are essential to the promotion,

maintenance, and restoration of health throughout the continuum of life. It provides care and

support of individuals and families during periods of wellness, illness, and injury, and

incorporates the appropriate health care plan of care prescribed by a licensed, advanced practice

registered nurse, certified nurse midwife, licensed physician, dentist, or podiatrist. It is a distinct

component of health services. Nursing practice is based on specialized knowledge, judgment, and

nursing skills acquired through educational preparation in nursing and in the biological, physical,

social, and behavioral sciences.

      (12) "Practical nursing" is practiced by licensed practical nurses (L.P.N.s). It is an

integral part of nursing based on a knowledge and skill level commensurate with education. It

includes promotion, maintenance, and restoration of health and utilizes standardized procedures

leading to predictable outcomes, which that are in accord with the professional nurse regimen

under the direction of a registered nurse. In situations where registered nurses are not employed,

the licensed practical nurse functions under the direction of a licensed physician, dentist,

podiatrist, or other licensed health care providers authorized by law to prescribe. Each L.P.N. is

responsible for the nursing care rendered.

      (13) "Population foci" means focus of the patient population. Population focus shall

include:

      (i) Family/Individual across the lifespan;

      (ii) Adult-gerontology;

      (iii) Neonatal;

      (iv) Pediatrics;

      (v) Women's health/gender-related; and

      (vi) Psychiatric/mental health.

      (14) "Professional nursing" is practiced by registered nurses (R.N.s). The practice of

professional nursing is a dynamic process of assessment of an individual's health status,;

identification of health care needs,; determination of health care goals with the individual and/or

family participation; and the development of a plan of nursing care to achieve these goals.

Nursing actions, including teaching and counseling, are directed toward the promotion,

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maintenance, and restoration of health and evaluation of the individual's response to nursing

actions and the medical regimen of care. The professional nurse provides care and support of

individuals and families during periods of wellness and injury, and incorporates, where

appropriate, the medical plan of care as prescribed by a licensed physician, dentist, or podiatrist,

or other licensed health care providers authorized by law to prescribe. Each R.N. is directly

accountable and responsible to the consumer for the nursing care rendered.

      (15) "Psychiatric and mental health nurse clinical specialist" is a certified clinical nurse

specialist working in the population foci of psychiatric/mental health as an advanced practice

nurse utilizing independent knowledge in psychiatric mental health assessment,; diagnosis, health

promotion, psychotherapeutic modalities and management of mental health and illnesses. The

practice may include prescription privileges within their scope of practice.

     5-34-4. Board of nursing -- Establishment -- Composition -- Appointment, terms,

and removal of members -- Director of nurse registration and nursing education. -- (a)

Within the division of professional regulation, pursuant to chapter 26 of this title, there is a board

of nurse registration and nursing education, sometimes referred to herein as the "board of

nursing". The board shall be composed of fifteen (15) members. The term of office shall be for

three (3) years. No member shall serve more than two (2) consecutive terms. The member shall

serve until a qualified successor is appointed to serve. In making those appointments, the director

of the department of health shall consider persons suggested by professional nurse organizations

and the practical nurse's association.

      (b) Present members of the board holding office under the provisions of this chapter

shall serve as members of the board until the expiration of their terms or until qualified successors

are appointed. The fifteen-(15) member board shall include: eleven (11) professional nurses, two

(2) practical nurses appointed by the director of health and approved by the governor, and two (2)

members of the general public appointed by the governor. Three (3) professional nurses shall be

from different basic education programs preparing students to become nurses; one professional

nurse shall be from a nursing service administration; four (4) professional non-administrative,

clinical nurses not licensed as advanced practice nurses,; and three (3) professional advanced

practice nurses, one who holds a license as a certified, registered nurse anesthetist, one who holds

a license as a certified, registered nurse practitioner, and one who holds a license as a certified

clinical nurse specialist. No educational program or cooperating agency shall have more than one

representative on the board.

      (c) The director of health may remove any member from the board for cause including,

but not limited to, neglect of any duty required by law, or incompetence, or unprofessional

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conduct, or willful misconduct. A member subject to disciplinary proceedings shall be

disqualified from board business until the charge is adjudicated. There shall also be a director of

nurse registration and nursing education appointed by the director of health in accordance with

the provisions of chapter 4 of title 36.

     5-34-7. Board of nursing -- General powers. -- The board of nurse registration and

nursing education is authorized, subject to the approval of the director of the department of

health, to:

      (1) Adopt, review, or revise rules, and regulations consistent with the law that may be

necessary to effect provisions of the chapter;

      (2) Approve nursing education programs according to the rules established by the board;

      (3) Require standards for nursing practice within organized nursing services and the

individual practice of licensees;

      (4) Approve the examinations for licensure;

      (5) Establish requirements to validate competence for reinstatement to the active list;

      (6) Conduct hearings upon charges calling for discipline of a licensee or revocation of a

license;

      (7) Issue subpoenas to compel the attendance of witnesses at and administer oaths to

persons giving testimony at hearings;

      (8) Cause the prosecution or enjoinder of all persons violating this chapter;

      (9) Maintain a record of all its proceedings;

      (10) Submit an annual report to the director of the department of health;

      (11) Utilize other persons that who may be necessary to carry on the work of the board;

      (12) Conduct public hearings, investigations, and studies of nursing practice, nursing

education, and related matters and prepare and issue publications that, in the judgment of the

board, allow the nursing profession to provide safe, effective nursing services to the public;

      (13) Determine qualifications necessary for prescriptive privileges for advanced practice

registered nurses;

      (14) Grant prescriptive privileges to advanced practice registered nurses; and

      (15) [Deleted by P.L. 2013, ch. 83, section 1 and P.L. 2013, ch. 93, section 1];

      (16) [Deleted by P.L. 2013, ch. 83, section 1 and P.L. 2013, ch. 93, section 1];

      (17) Adopt criteria for recognizing national certifying bodies for APRN roles and

population foci.

     5-34-40. Advanced practice nurse advisory committee. -- (a) The seven-(7) member

committee consists of two (2) certified nurse practitioners, two (2) certified registered nurse

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anesthetists, two (2) certified clinical nurse specialists, and one consumer. The director of health

shall appoint the committee. In making appointments to the committee, the director shall consider

persons recommended by professional nurse organizations and professional medical associations.

The professional members of the committee shall be currently engaged in practice. The consumer

members shall be: (1) knowledgeable in consumer health concerns; (2) a resident of the state; (3)

not licensed as a health care practitioner; (4) not a parent, spouse, sibling, or child of a person

licensed as a health care practitioner, and not a student in a professional program; (5) not having a

direct financial interest in health care services; and (6) not a member or an employee of any board

of control of any public or private health care service.

      (b) Each member appointment shall be for three (3) years, with no member serving more

than two, (2) consecutive, three (3) year three-year (3) terms, except that in making the initial

appointments, the director designates: four (4) members for a term of two (2) years; three (3)

members for a term of three (3) years three (3) years; and the consumer members for three (3)

year three-year (3) terms.

      (c) This committee must meet not fewer than two (2) times per year. The committee has

the following functions:

      (1) To assess advanced nursing practice for the purpose of improving patient care.

      (2) (i) To review all complaints regarding advanced practice nurses, and recommend any

and all disciplinary or corrective action that they deem appropriate, including revocation and

suspension of license, upon proof that an advanced practice nurse has:

      (A) Aided or abetted an uncertified person to practice as an advanced practice nurse;

      (B) Become addicted to the use of liquor or controlled substances;

      (C) Negligently, willfully, or intentionally acted in a manner inconsistent with the health

and safety of persons entrusted to his or her care;

      (D) Had his or her authorization to practice as an advanced practice nurse denied,

revoked, or suspended in another state;

      (E) Engaged in the performance of medical functions beyond the scope of practice

authorized by the provisions of this chapter;

      (F) Willfully failed to file or record medical records and reports;

      (G) Mental incompetence; or

      (H) Willfully failed to maintain standards established by the nursing profession.

      (ii) The recommendation shall be submitted to the board of nursing for implementation.

      (3) To advise periodically to the board of nurse registration and nursing education

regarding advanced nurse practice.

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     5-34-43. Criminal records review. -- (a) Notwithstanding any provision of law to the

contrary contained in any general or public law, rule, or regulation, any person seeking a license

to practice under this chapter, or who is previously licensed and authorized to practice under this

chapter and is seeking employment, shall undergo a federal and statewide criminal background

check (BCI), which that shall be processed prior to receiving a license to practice or to enter into

employment.

      (b) The applicant shall apply to the bureau of criminal identification for a national

criminal records check that shall include fingerprints submitted to the federal bureau of

investigation Federal Bureau of Investigation. Upon the discovery of any disqualifying

information, the bureau of criminal identification will inform the applicant in writing of the

nature of the disqualifying information; and, without disclosing the nature of the disqualifying

information, will notify the licensing agency or the potential employer in writing that

disqualifying information has been discovered.

      (c) The applicant against whom disqualifying information has been found, may request

that a copy of the criminal background report be sent to the licensing agency or the potential

employer. The licensing agency or the potential employer shall make a judgment regarding the

issuing of a license.

      (d) In those situations in which no disqualifying information has been found, the bureau

of criminal identification shall inform the applicant and the licensing agency or the potential

employer in writing of this fact.

      (e) It shall be the responsibility of the applicant to pay for the criminal records check.

     5-34-44. Advanced practical registered nurses as independent practitioners. --

APRNs are licensed, independent practitioners within standards established or recognized by the

board of nursing. Each APRN is accountable to patients, the nursing profession, and the board of

nursing for:

      (1) Complying with the requirements of this chapter and the quality of advanced nursing

care rendered;

      (2) Recognizing limits of knowledge and experience;

      (3) Planning for the management of situations beyond the APRN's expertise;

      (4) Consulting with or referring patients to other licensed health care providers as

appropriate.

      (5) In the case of CRNAs, comply complying with the requirements of chapter 5-34.2

34.2 of this title of the Rhode Island general laws, including subsection § 5-34.2-5(b) regarding

scope of practice. In the case of any conflict between this chapter and chapter 5-34.2 34.2 of this

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title with regard to the licensure and practice of CRNAs, chapter 5-34.2 34.2 of this title shall

control.

     5-34-45. Licensure of APRNs. -- (a) An applicant for initial licensure to practice as an

APRN shall:

      (1) Submit a completed, written application and appropriate fees as established by the

board of nursing;

      (2) Hold a current RN license or privilege to practice and shall not hold an encumbered

license or privilege to practice as an RN in any state or territory;

      (3) Have completed an accredited graduate or post-graduate level APRN program in one

of the three roles (RNP, CRNA, or CNS) and at least one population focus;

      (4) Be currently certified by a national certifying body recognized by the board of

nursing in the APRN role and population foci appropriate to educational preparation;

      (5) Report any criminal conviction, nolo contendere plea, Alford plea, or other plea

arrangement in lieu of conviction;

      (6) Have committed no acts or omissions that are grounds for disciplinary action as set

forth in this chapter; and

      (7) Provide other evidence as required by regulation.

      (b) The board of nursing may issue an initial APRN license to clinical nurse specialists

without a certification exam when:

      (1) A national certification exam does not exist for the current population foci; and

      (2) The applicant has submitted a portfolio to the board of nursing that includes proof of

graduation,; course descriptions,; official transcript that includes courses in pharmacology,

pathophysiology and physical assessment,; and letters of recommendation from his/her employer

attesting to the CNS's practice at the advanced-practice level.

      (c) After January 1, 2015, all clinical nurse specialists seeking initial licensure as an

APRN must meet all the criteria as stated in this chapter, including national certification in a role

and population foci recognized by the board of nursing.

      (d) The board of nursing may issue a license by endorsement to an APRN licensed under

the laws of another state if, in the opinion of the board of nursing, the applicant meets the

qualifications for licensure in this jurisdiction. An applicant for APRN licensure by endorsement

shall:

      (1) Submit a completed, written application and appropriate fees as established by the

board of nursing;

      (2) Hold a current license or privilege to practice as an RN and APRN in a state or

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territory;

      (3) Not have Have an encumbered unencumbered license or privilege to practice in any

state or territory;

      (4) Have completed an accredited graduate or post-graduate level APRN program in one

of the three roles (CNP, CRNA or CNS) and at least one population focus or meets the standards

for grandfathering as described in this chapter;

      (5) Be currently certified by a national certifying body recognized by the board of

nursing in the APRN role and at least one population focus appropriate to educational

preparation;

      (6) Meet continued competency requirements as set forth in board of nursing regulations;

      (7) Report any conviction, nolo contendere plea, Alford plea, or other plea arrangement

in lieu of conviction;

      (8) Have committed no acts or omissions, which that are grounds for disciplinary action

in another jurisdiction; and

      (9) Provide other evidence as required by the board of nursing in its regulations.

      (e) APRN licenses issued under this chapter shall be renewed every two (2) years

according to a schedule established by the board of nursing BON. An applicant for APRN license

renewal shall:

      (1) Submit a renewal application as directed by the board of nursing and remit the

required fee as set forth in regulation;

      (2) Maintain national certification in the appropriate APRN role and at least one

population focus, authorized by licensure, through an ongoing recertification maintenance

program of a nationally recognized certifying body recognized by the board of nursing; and

      (3) Meet other requirements set forth in regulations.

      (f) The board of nursing may reactivate or reinstate an APRN license as set forth in

board of nursing BON regulation.

     SECTION 4. Sections 6-2-2, 6-2-3, 6-2-4, 6-2-5, 6-2-6, 6-2-8, 6-2-11 and 6-2-13 of the

General Laws in Chapter 6-2 entitled "Registration and Protection of Trademarks" are hereby

amended to read as follows:

     6-2-2. Application for registration. -- (a) Subject to the limitations stated in this chapter,

any person who adopts and uses a mark may file in the office of the secretary of state, on a form

to be furnished by him or her, an application for registration of that mark stating, but not limited

to, the following information:

      (1) The name and business address of the person applying for the registration, and, if a

LC005208/SUB A - Page 17 of 210

business corporation, non-profit corporation, limited liability partnership, limited partnership, or

limited liability company, the state of incorporation or formation, as applicable;

      (2) The goods or services in connection with which the mark is used and the mode or

manner in which the mark is used in connection with the goods or services, and the class in which

the goods or services fall;

      (3) The date when the mark was first used anywhere and the date when it was first used

in the state by the applicant or his or her predecessor in business; and

      (4) A statement that the applicant is the owner of the mark and that no other person has

the right to use the mark in the state, either in the identical form of the mark or in such near

resemblance to it as might be calculated to deceive or to be mistaken for it.

      (b) The application shall be signed and verified by the applicant or by a member of the

firm or an officer of the business corporation non-profit corporation,; authorized partner of the

limited liability partnership,; general partner of the limited partnership,; authorized person of the

limited liability company,; or association applying for registration.

      (c) The application shall be accompanied by a specimen or facsimile of the mark in

triplicate.

      (d) The application for registration shall be accompanied by a filing fee of fifty dollars

($50.00), payable to the secretary of state.

     6-2-3. Registrability. -- No person may register a mark if it:

      (1) Consists of or comprises immoral, deceptive, or scandalous matter;

      (2) Consists of or comprises matter which that may disparage or falsely suggest a

connection with persons, living or dead, institutions, beliefs, or national symbols, or bring them

into contempt or disrepute;

      (3) Consists of or comprises the flag or coat of arms or other insignia of the United

States, or of any state or municipality, or of any foreign nation or any simulation thereof;

      (4) Consists of or comprises the name, signature, or portrait of any living individual,

except with his or her written consent;

      (5) When applied to the goods or services of the applicant, is merely descriptive or

deceptively misdescriptive of them,; or when applied to the goods or services of the applicant, is

primarily geographically descriptive or deceptively misdescriptive of them,: or is primarily

merely a surname. Provided, however, that nothing in this subdivision shall prevent the

registration of a mark used in the state by the applicant which that has become distinctive of the

applicant's goods or services. The secretary of state may accept as evidence that the mark has

become distinctive, as applied to the applicant's goods or services, proof of continuous use as a

LC005208/SUB A - Page 18 of 210

mark by the applicant in the state or elsewhere for the five (5) years next preceding the date of the

filing of the application for registration; or

      (6) So resembles a mark registered in the state or a mark or trade name previously used

in the state by another and not abandoned, as to be likely, when applied to the goods or services

of the applicant, to cause confusion or mistake or to deceive.

     6-2-4. Certificate of registration. -- (a) Upon compliance by the applicant with the

requirements of this chapter, the secretary of state shall cause a certificate of registration to be

issued and delivered to the applicant.

      (b) The certificate of registration shall be issued under the signature of the secretary of

state and the seal of the state, and it shall show the name and business address and, if a business

corporation, non-profit corporation, limited liability partnership, limited partnership or limited

liability company, the state of incorporation, or formation, as applicable, of the person claiming

ownership of the mark,; the date claimed for the first use of the mark anywhere and the date

claimed for the first use of the mark in the state,; the class of goods or services and a description

of the goods or services on which the mark is used,; a reproduction of the mark,; the registration

date,; and the term of the registration.

      (c) Any certificate of registration issued by the secretary of state under the provisions of

this section, or a copy of a certificate of registration duly certified by the secretary, shall be

admissible in evidence as competent and sufficient proof of the registration of the mark in any

action or judicial proceedings in any court of the state.

      (d) Registration of or renewal of a mark provided by this chapter shall be constructive

notice of the registrant's claim of ownership and shall, when introduced in any action, be prima

facie evidence of the registrant's exclusive right to use the registered mark in this state on goods

or services specified in the registration subject to any conditions or limitations stated in the

registration, but shall not preclude an opposing party from proving any legal or equitable defense

or defect which that might have been asserted if the mark had not been registered.

     6-2-5. Duration and renewal. -- (a) Registration of a mark under this chapter shall be

effective for a term of ten (10) years from the date of registration and, upon application filed

within six (6) months prior to the expiration of the term, on a form to be furnished by the

secretary of state, the registration may be renewed for a like term. A renewal fee of fifty dollars

($50.00), payable to the secretary of state, shall accompany the application for renewal of the

registration.

      (b) A mark registration may be renewed for successive periods of ten (10) years in like

manner.

LC005208/SUB A - Page 19 of 210

      (c) The secretary of state shall notify registrants of marks under this chapter of the

necessity of renewal within the year next preceding the expiration of the ten (10) years from the

date of registration, by writing to the last known address of the registrants.

      (d) All applications for renewals under this chapter, whether of registrations made under

this chapter or of registrations effected under any prior law, shall include a statement that the

mark is still in use in the state.

     6-2-6. Assignment. -- Any mark and its registration under this chapter shall be assignable

with the good will of the business in which the mark is used, or with that part of the good will of

the business connected with the use of and symbolized by the mark. Assignment shall be by

instruments in writing duly executed, and may be recorded with the secretary of state upon the

payment of a fee of twenty dollars ($20.00) payable to the secretary of state, who, upon recording

of the assignment, shall issue in the name of the assignee a new certificate for the remainder of

the term of the registration or of its last renewal. An assignment of any registration shall be void

as against any subsequent purchaser for valuable consideration without notice, unless it is

recorded with the secretary of state within three (3) months after the date of assignment or prior

to any subsequent purchase.

     6-2-8. Cancellation. -- The secretary of state shall cancel:

      (1) Any registration concerning which that the secretary of state shall receive concerning

a voluntary request for cancellation from the registrant or the assignee of record;

      (2) Any registration granted and not renewed in accordance with the provision of this

chapter;

      (3) Any registration which that the superior court shall find:

      (i) That the registered mark has been abandoned;

      (ii) That the registrant is not the owner of the mark;

      (iii) That the registration was improperly granted;

      (iv) That the registration was fraudulently obtained; or

      (v) That the registered mark is so similar, as to be likely to cause confusion or mistake or

to deceive, to a mark registered by another person in the United States patent office, prior to the

date of the filing of the application for registration by the registrant under this chapter, and not

abandoned; provided, however, that should the registrant prove that he or she is the owner of a

concurrent registration of his or her mark in the United States patent office covering an area

including the state, the registration under this chapter shall not be cancelled;

      (4) Any registration ordered cancelled by the superior court.

     6-2-11. Infringement. -- Subject to the provisions of section § 6-2-14, any person who

LC005208/SUB A - Page 20 of 210

shall:

      (1) Use, without consent of the registrant, any reproduction, counterfeit, copy, or

colorable imitation of a mark registered under this chapter in connection with the sale, offering

for sale, or advertising of any goods or services on or in connection with which the use is likely to

cause confusion or mistake or to deceive as to the source of origin of the goods or services; or

      (2) Reproduce, counterfeit, copy, or colorably imitate any mark and apply the

reproduction, counterfeit, copy, or colorable imitation to labels, signs, prints, packages, wrappers,

receptacles, or advertisements intended to be used upon or in conjunction with the sale or other

distribution in the state of the goods or services; shall be liable to a civil action by the owner of

the registered mark for any or all of the remedies provided in section § 6-2-13, except that under

this section the registrant shall not be entitled to recover profits or damages unless the acts have

been committed with knowledge that the mark is intended to be used to cause confusion or

mistake or to deceive.

     6-2-12. Injury to business reputation -- Dilution. -- Likelihood of injury to business

reputation or of dilution of the distinctive quality of a mark registered under this chapter, or a

mark valid at common law, or a trade name valid at common law, shall be a ground for injunctive

relief notwithstanding the absence of competition between the parties or the absence of confusion

as to the source of goods or services.

     6-2-13. Remedies. -- Any owner of a mark registered under this chapter may proceed by

suit to enjoin the manufacture, use, display, or sale of any counterfeits or imitations, and the

superior court may grant injunctions to restrain the manufacture, use, display, or sale as may be

deemed just and reasonable by the court, and may require the defendants to pay to the owner all

profits derived from and all damages suffered by reason of the wrongful manufacture, use,

display, or sale; and the court may also order that any counterfeits or imitations in the possession

or under the control of any defendant in the case, be delivered to an officer of the court, or to the

complainant, to be destroyed.

     SECTION 5. Sections 6-9-1, 6-9-2, 6-9-3 and 6-9-4 of the General Laws in Chapter 6-9

entitled "Sale of Oils" are hereby repealed.

     6-9-1. "Spermaceti oil" defined. -- All oils sold under the names of sperm, spermaceti,

lamp, summer, fall, winter, and second winter oils are deemed pure winter-pressed or summer-

strained spermaceti oil.

     6-9-2. Liability for sale of adulterated oil for spermaceti. -- All oils sold under the

names mentioned in section 6-9-1 which are adulterated with whale, lard, or any other oil of less

value than pure spermaceti oil, shall be deemed whale oil; and the vendor shall be liable to the

LC005208/SUB A - Page 21 of 210

purchaser for double the amount of the difference in value between pure spermaceti oil and whale

oil, whenever the quantity sold exceeds five (5) gallons, and four (4) times the difference

whenever the quantity is less than five (5) gallons, unless the proportions of the respective oils are

disclosed to the purchaser at the time of sale.

     6-9-3. Forfeiture for sale of adulterated oil without disclosure. -- Every person who

shall sell any oil commonly known under the names of sperm, spermaceti, lamp, summer, fall,

winter, and second winter oils, which have been adulterated from pure spermaceti oil by a

mixture of whale, lard, or any other inferior oil, and shall not disclose to the purchaser the

proportions of the oils of which it consists at the time of sale, in the manner prescribed in section

6-9-2, shall for each offense forfeit twenty-five dollars ($25.00) to the use of the person suing for

disclosure.

     6-9-4. Liability for undisclosed sale of tight-pressed oil. -- All oils sold under any of

the names mentioned in section 6-9-3 which shall have been mixed with tight-pressed oil, shall be

deemed tight-pressed oil; and the vendor of tight-pressed oil or of tight-pressed oil under any of

the names mentioned in section 6-9-1 shall be liable to the purchaser for double the value of the

difference between the first quality of spermaceti oil and tight-pressed oil, unless at the time of

sale the vendor shall disclose to the purchaser the mixture, and if not mixed, its quality; and if

disclosure shall not be made the vendor shall forfeit twenty-five dollars ($25.00) to the use of the

person suing for disclosure.

     SECTION 6. Sections 6-10-2, 6-10-3 and 6-10-6 of the General Laws in Chapter 6-10

entitled "Labeling of Thread" are hereby amended to read as follows:

     6-10-2. Length of small units to be shown -- Bobbins -- Packages for household use. -

- When the net weight of the thread in or on any unit is less than two (2) ounces avoirdupois, the

unit shall be marked to show the length of the thread in yards as unwound from the unit. Ready-

wound bobbins which that are not sold separately shall not be required to be individually marked,

but the package containing the bobbins shall be marked to show the number of bobbins contained

in the package and the net weight or measure of the thread on each bobbin. Any retail unit of

thread, sold only for household use, consisting of a package containing two (2) or more similar

individual units, which that are not sold separately, shall be marked to show the number of

individual units in the package and the net weight or measure of the thread in each individual

unit, but this provision shall not apply where the individual units are separately marked.

     6-10-3. Identification of manufacturer or distributor. -- The marking required by this

chapter shall in all cases be in combination with the name and place of business of the

manufacturer or distributor of the thread, or a trademark, symbol, brand, or other mark which that

LC005208/SUB A - Page 22 of 210

positively identifies the manufacturer or distributor and which shall be filed with the state sealer

of weights and measures in the state department of labor and training.

     6-10-6. Penalty for violations. -- Any person, firm, or corporation who willfully violates

any of the provisions of this chapter shall be guilty of a misdemeanor, and shall upon conviction

be punished by a fine of not more than fifty dollars ($50.00) for each separate offense.

     SECTION 7. Sections 6-11-2, 6-11-3, 6-11-4, 6-11-5 and 6-11-7 of the General Laws in

Chapter 6-11 entitled "Gold and Silver Products" are hereby amended to read as follows:

     6-11-2. Labeling of gold plate, filled, and rolled products. -- Any person, firm,

corporation, or association who or which that makes for sale or sells, or offers to sell or dispose

of, or has in his, her, or its possession with intent to sell or dispose of, any article of merchandise

made in whole or in part of inferior metal having deposited or plated on the article or brazed or

otherwise affixed to it a plate, plating, covering, or sheet of gold or of any alloy of gold, and

which the article is known in the market as "rolled gold plate,", "gold plate,", "gold filled,", or

"gold electroplate,", or by any similar designation, and having stamped, branded, engraved, or

imprinted upon any part of the article, or upon any tag, card, or label attached to it, or upon any

box, package, cover, or wrapper in which the article is encased or enclosed, any word or mark

usually employed to indicate the fineness of gold, unless that word is accompanied by other

words plainly indicating that the article or some part of the article is made of rolled gold plate, or

gold plate or gold electroplate, or is gold filled, as the case may be, is guilty of a misdemeanor.

     6-11-3. Sterling silver. -- Any person, firm, corporation, or association who or which

that makes for sale or sells, or offers to sell or dispose of, or has in his, her, or its possession with

intent to sell or dispose of, any article of merchandise made in whole or in part of silver or of any

alloy of silver, and having marked, stamped, branded, engraved, or imprinted upon any part of the

article, or upon any tag, card, or label attached to it, or upon any box, package, cover, or wrapper

in which the article is encased or enclosed, the words "sterling silver" or "sterling," or any

colorable imitation thereof, unless nine hundred twenty-five one-thousandths (925/1000) of the

component parts of the metal appearing or purporting to be silver of which the article is

manufactured are pure silver, subject to the qualifications prescribed by this chapter, is guilty of a

misdemeanor; provided, that in the case of all articles, there shall be allowed a divergence in

fineness of four one-thousandths (4/1000) parts from the previously mentioned standard.

     6-11-4. Coin silver. -- Any person, firm, corporation, or association who or which that

makes for sale or sells, or offers to sell, or dispose of, or has in his, her, or its possession with

intent to sell or dispose of, any article of merchandise made in whole or in part of silver or of any

alloy of silver, and having marked, stamped, branded, engraved, or imprinted upon any part of the

LC005208/SUB A - Page 23 of 210

article, or upon any tag, card, or label attached to it, or upon any box, package, cover, or wrapper

in which the article is encased or enclosed, the words "coin" or "coin silver," or any colorable

imitation thereof, unless nine hundred one-thousandths (900/1000) of the component parts of the

metal appearing or purporting to be silver of which the article is manufactured are pure silver,

subject to the qualifications prescribed by this chapter, is guilty of a misdemeanor; provided, that

in the case of all articles, there shall be allowed a divergence in fineness of four one-thousands

(4/1000) parts from the previously mentioned standards.

     6-11-5. Labeling as to fineness of silver products. -- Any person, firm, corporation, or

association who or which that makes for sale or sells, or offers to sell, or dispose of, or has in his,

her, or its possession with intent to sell or dispose of, any article of merchandise made in whole or

in part of silver or of any alloy of silver, and having stamped, branded, engraved, or imprinted

upon any part of the article, or upon any tag, card, or label attached to it, or upon any box,

package, cover, or wrapper in which the article is encased or enclosed, any mark or word (other

than the word "sterling" or the word "coin") indicating, or designed or intended to indicate, that

the silver or alloy of silver in the article is of greater degree of fineness than the actual fineness or

quality of the silver or alloy, unless the actual fineness of the silver or alloy of silver of which the

article is composed is not less by more than four one-thousandths (4/1000) parts than the actual

fineness indicated by the mark or word (other than the word "sterling" or "coin") stamped,

branded, engraved, or imprinted upon any part of the article or upon any tag, card, or label

attached to it, or upon any box, package, cover, or wrapper in which the article is encased or

enclosed, subject to the qualifications prescribed in this chapter, is guilty of a misdemeanor.

     6-11-7. Labeling of silver plated products as sterling or coin silver. -- Any person,

firm, corporation, or association who or which that makes for sale or sells, or offers to sell or

dispose of, or has in his, her, or its possession with intent to sell or dispose of, any article of

merchandise made in whole or in part of inferior metal having deposited or plated on it or brazed

or otherwise affixed to it a plate, plating, covering, or sheet of silver or of any alloy of silver, and

which article is known in the market as "silver plate" or "silver electroplate,", or by any similar

designation, and having stamped, branded, engraved, or imprinted upon any part of the article, or

upon any tag, card, or label attached to it, or upon any box, package, cover, or wrapper in which

the article is encased or enclosed, the word, "sterling" or the word "coin,", either alone or in

conjunction with any other words or marks, is guilty of a misdemeanor.

     SECTION 8. Sections 6-11.1-1, 6-11.1-2, 6-11.1-3, 6-11.1-4, 6-11.1-5, 6-11.1-6, 6-11.1-

7, 6-11.1-9, 6-11.1-10 and 6-11.1-13 of the General Laws in Chapter 6-11.1 entitled "Purchase

and Sale of Precious Metals" are hereby amended to read as follows:

LC005208/SUB A - Page 24 of 210

     6-11.1-1. License required -- "Person" defined. -- (a) No person, including a

pawnbroker, consignment shop, or salvage yard operator or second-hand dealer, as defined in

section § 5-21-1, shall engage in the business of buying or receiving for the purpose of selling:

gold, silver, platinum group metals, or precious stones, or any articles containing those items,

including catalytic converters, other than coins purchased for their numismatic value rather than

their metal content, referred to in this chapter as "precious metals,", from the general public for

the purpose of reselling the precious metals in any condition without first obtaining a license from

the attorney general of the state of Rhode Island, also called "the attorney general" in this chapter.

The attorney general shall not issue any license to a person who has not registered a permanent

place of business within the state for the purchase or sale of precious metals. The criteria for

determining a person's permanent place of business shall be formulated by the attorney general

immediately on or after July 1, 1981.

      (b) The word "person," when used in this chapter, shall include individuals, partnerships,

associations, and corporations.

      (c) This chapter shall not apply to any financial institution which that is covered by

federal or state deposit insurance, nor to jewelry and silverware manufacturers purchasing

precious metals directly from trade suppliers.

      (d) The word "catalytic converter" when used in this chapter shall be defined as an air

pollution abatement device that removes pollutants from motor vehicle exhaust, either by

oxidizing them into carbon dioxide and water or reducing them to nitrogen.

     6-11.1-2. Application for license -- Annual fee -- Attorney general to promulgate

rules and regulations. [Effective December 31, 2013.] -- (a) Application for the license shall be

in writing, under oath, and in the form prescribed by the attorney general and shall contain the

name and the address (both of the residence and place of business) of the applicant, and if the

applicant is a partnership or association, of every member, and if a corporation, of each officer

and director and of the principal owner or owners of the issued and outstanding capital stock; also

the city or town with the street and number where the business is to be conducted, and any further

information that the attorney general may require.

      (b) After receipt of an application for a license, the attorney general shall conduct an

investigation to determine whether the facts presented in the application are true. The attorney

general may also request a record search and a report from the national crime and information

center National Crime and Information Center (NCIC) of the federal bureau of investigation

Federal Bureau of Investigation. If the application discloses that the applicant has a disqualifying

criminal record, or if the investigation indicates that any of the facts presented in the application

LC005208/SUB A - Page 25 of 210

are not true,; or if the records of the department of the attorney general indicate criminal activity

on the part of the person signing the application and any other persons named in the application,;

or if the NCIC report indicates an outstanding warrant for the person signing the application and

any other persons named in the application,; then the attorney general may initiate a nationwide

criminal records check that shall include fingerprints submitted to the federal bureau of

investigation Federal Bureau of Investigation regarding the person signing the application and

any other persons named in the application. Upon the annual renewal of a license or the opening

of a new branch designated in the license, the attorney general may initiate a nationwide criminal

records check that shall include fingerprints submitted to the federal bureau of investigation

Federal Bureau of Investigation regarding the licensee and any other persons named in the

license. The individual who is subject to the national records check shall be responsible for the

cost of conducting such check.

      (c) The applicant at the time of making his or her initial application only shall pay to the

attorney general the sum of fifty dollars ($50.00) as a fee for investigating the application and the

additional sum of fifty dollars ($50.00) shall be paid annually. The licensee shall pay an

additional fifty dollars ($50.00) annually for each branch designated in the license. Licenses shall

not be assignable or transferable to any other person or entity.

     6-11.1-3. Identification and authority of seller -- Posting of prices -- Weighing. -- (a)

Every person required to be licensed under this chapter shall require positive proof of

identification with photograph, date of birth, and current address of every seller from whom

precious metals or an article made from or containing a precious metal is to be purchased and

shall require the seller to sign a statement on a form to be approved by the attorney general stating

that the seller is the legal owner of the property or is the agent of the owner authorized to sell the

property, and when and where or in what manner the property was obtained.

      (b) Every person required to be licensed under this chapter shall, before purchasing any

precious metal or article made from or containing a precious metal, shall require the seller, if a

minor, to be accompanied by the parent or legal guardian of the minor.

      (c) Every person required to be licensed under this chapter shall post the prices per ounce

that are currently being paid for precious metals in full sight of the prospective seller and the

precious metals shall be weighed in full sight of the prospective seller.

     6-11.1-4. Record of transactions required -- Reports to police. [Effective December

31, 2013.] -- (a) Every person licensed under this chapter shall keep a copy of the report form

obtained from or under the direction of the attorney general, containing a comprehensive record

of all transactions concerning precious metals including catalytic converters. The comprehensive

LC005208/SUB A - Page 26 of 210

record shall be hand printed legibly or typed. The record shall include the name, address,

telephone number and date of birth of the seller,; a complete and accurate description of the

property purchased or sold including any serial numbers or other identifying marks or symbols,;

and the date and hour of the transaction.

      (b) All persons licensed under this chapter shall deliver or mail weekly to the chief of

police of the city or town in which the business is located and electronically submit to the

attorney general, in a manner specified by the attorney general, all report forms from the

preceding seven-day (7) period.

      (c) Every person licensed under this chapter shall retain a copy of the report form for a

period of one year from the date of the sale stated on the form.

     6-11.1-5. Fourteen day holding period -- Recovery of stolen property -- Return to

rightful owner. [Effective December 31, 2013.] Fourteen-day holding period -- Recovery of

stolen property -- Return to rightful owner. [Effective December 31, 2013.] -- (a) All persons

licensed under this chapter shall retain in their possession in an unaltered condition for a period of

fourteen (14) days all precious metals or articles made from or containing a precious metal,

including catalytic converters, except items of bullion, including coins, bars, and medallions,

which that do not contain serial numbers or other identifying marks. The fourteen (14) day -day

(14) holding period shall commence with the date the report of its acquisition was delivered to or

received by the chief of police or the attorney general, whichever is later. The records so received

by the chief of police and the attorney general shall be available for inspection only by law

enforcement officers for law enforcement purposes. If the chief of police has probable cause that

precious metals or an article made from or containing a precious metal has been stolen, he or she

may give notice, in writing, to the person licensed, to retain the metal or article for an additional

period of fifteen (15) days, and the person shall retain the property for this additional fifteen (15)

day -day (15) period, unless the notice is recalled, in writing, within the fifteen (15) day -day (15)

period;. within Within the fifteen (15) day -day (15) period the chief of police, or his or her

designee, shall designate, in writing, an officer to secure the property alleged to be stolen and the

persons in possession of the property shall deliver the property to the officer upon display of the

officer's written designation by the chief of police or his or her designee. Upon receipt of the

property from the officer, the clerk or person in charge of the storage of alleged stolen property

for a police department shall enter into a book a description of every article of property alleged to

be stolen which that was brought to the police department and shall attach a number to each

article. The clerk or person in charge of the storage of alleged stolen property shall deliver the

property to the owner of the property upon satisfactory proof of ownership, without any cost to

LC005208/SUB A - Page 27 of 210

the owner, provided that the following steps are followed:

      (1) A complete photographic record of the property is made;

      (2) A signed declaration of ownership under penalty of perjury is obtained from the

person to whom the property is delivered;

      (3) The person from whom the custody of the property was taken is served with written

notice of the claim of ownership and is given ten (10) days from the mailing of the notice to file a

petition in district court objecting to the delivery of the property to the person claiming

ownership. If a petition is filed in a timely manner, the district court shall, at a hearing, determine

by a preponderance of the evidence that the property was stolen and that the person claiming

ownership of the property is the true owner. The decision of the district court may only be

appealable by writ of certiorari to the supreme court.

      (b) The clerk or person in charge of the storage of alleged stolen property shall not be

liable for damages for any official act performed in good faith in the course of carrying out the

provisions of this section. The photographic record of the alleged stolen property shall be allowed

to be introduced as evidence in any court of this state in place of the actual alleged stolen

property; provided that the clerk in charge of the storage of the alleged stolen property shall take

photographs of the property, and those photographs shall be tagged and marked and remain in his

possession or control.

     6-11.1-6. Persons injured by violations of chapter -- Damages and costs. -- Any

person who has been damaged or injured by the failure of a person required to be licensed under

this chapter to comply with the provisions of this chapter, may recover the actual damages

sustained. The court, in its discretion, may also award punitive damages and/or the costs of suit

and reasonable attorneys' fees to a prevailing plaintiff.

     6-11.1-7. Penalties. -- (a) Every person who shall violate the provisions of this chapter

shall be guilty of a misdemeanor and shall be fined not more than five hundred dollars ($500) or

imprisoned for not more than one year, or both.

      (b) If the value of the property involved in a transaction which that is in violation of this

chapter exceeds five hundred dollars ($500), a person convicted of a violation shall be fined not

more than two thousand dollars ($2,000) or imprisoned for not more than three (3) years or both.

      (c) The attorney general shall have the authority to suspend the license of any person

required to be licensed under this chapter as a result of violations of this chapter or attorney

general regulations leading to penalties under this chapter.

     6-11.1-9. Refusal to issue license. -- The attorney general shall refuse to issue a license

when the attorney general has found that the application for the license contains a false

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representation of a material fact,; when investigation reveals that the person applying for the

license has previously been guilty of a violation of this chapter or has been a partner of a

partnership, member of an association, or an officer or director of a corporation which that has

previously been guilty of a violation of this chapter,; or has a disqualifying criminal record as

defined in section § 6-11.1-13. The attorney general may, in his or her discretion, issue a license

if the disqualifying criminal record is more than ten (10) years old.

     6-11.1-10. Suspension, revocation, and nonrenewal of license. -- The attorney general,

upon his or her own motion or upon receipt of a signed, written complaint which alleges alleging

violations of this chapter or of the rules and regulations promulgated pursuant to this chapter,

may, after a hearing, suspend, revoke, or refuse to renew any license issued pursuant to this

chapter.

     6-11.1-13. Disqualifying criminal records -- Employees or agents of licensee. -- A

licensee convicted in a court of this state, a court of another state, or in a federal court, of a felony

charge of forgery,; embezzlement,; obtaining money under false pretenses,; bribery,; larceny,;

extortion,; conspiracy to defraud,; receiving stolen goods,; burglary,; breaking and entering,; or

any similar offense or offenses,; or tax evasion associated with the conduct of business under a

license issued pursuant to this chapter,; shall forfeit his or her license. Prior to forfeiture of the

license, the licensee may request a hearing on the forfeiture. The attorney general, when so

requested, shall hold a hearing. No licensee shall employ or engage any person as an employee or

agent while engaging in the business of trading in precious metals who has been convicted of any

of the offenses as they are described in this section and which shall be deemed to be a

disqualifying criminal record.

     SECTION 9. Sections 6-13-1, 6-13-2, 6-13-2.1, 6-13-3, 6-13-4, 6-13-5, 6-13-6, 6-13-11,

6-13-12, 6-13-12.1, 6-13-16, 6-13-18, 6-13-19, 6-13-20 and 6-13-21 of the General Laws in

Chapter 6-13 entitled "Unfair Sales Practices" are hereby amended to read as follows:

     6-13-1. Definitions. -- (a) "Cost to the retailer" means the invoice cost of the

merchandise to the retailer within thirty (30) days prior to the date of the sale, or the replacement

cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, in the

quantity last purchased, whichever is lower; less all trade discounts except customary discounts

for cash; to which shall be added:

      (1) Freight charges not otherwise included in the cost of the merchandise;

      (2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost

shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the

retailer, unless the retailer claims and proves a lower cartage cost; and

LC005208/SUB A - Page 29 of 210

      (3) A markup to cover in part the cost of doing business, which markup, in the absence

of proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet.

      (b) "Cost to the wholesaler" means the invoice cost of the merchandise to the wholesaler

within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to

the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased,

whichever is lower; less all trade discounts except customary discounts for cash; to which shall be

added:

      (1) Freight charges not otherwise included in the cost of the merchandise; and

      (2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage

cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to

the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and

      (3) A markup to cover in part the cost of doing business, which markup, in the absence

of proof of a lesser cost, shall be two percent (2%) of the total cost at the wholesale

establishment.

      (c) Where two (2) or more items are advertised,; offered for sale,; or sold at a combined

price,; the price of each item shall be determined in the manner stated in subsections (a) and (b).

      (d) "Sell at retail,", "sales at retail,", and "retail sale" mean and include any transfer of

title to tangible personal property for a valuable consideration made in the ordinary course of

trade or in the usual prosecution of the seller's business to the purchaser for consumption or use

other than resale or further processing or manufacturing. In this and in the preceding subsection

the previous terms shall include any transfer of property where title is retained by the seller as

security for the payment of the purchase price.

      (e) "Retailer" means and includes every person, co-partnership, corporation, or

association engaged in the business of making sales at retail within this state; provided, that, in

the case of a retailer engaged in the business of making sales both at retail and at wholesale, the

term shall be applied only to the retail portion of the business.

      (f) "Wholesaler" means and includes every person, partnership, corporation, or

association engaged in the business of making sales at wholesale within this state; provided, that,

in the case of a wholesaler engaged in the business of making sales both at wholesale and at

retail, the term shall be applied only to the wholesale portion of the business.

      (g) Whenever any person, partnership, corporation, or association in the course of doing

business performs the functions of both wholesaler and retailer without actually being engaged in

the business of making sales at wholesale, the term "wholesaler" means and includes that function

of the business of preparation for sale at the retail outlet, and the term "retailer" shall be applied

LC005208/SUB A - Page 30 of 210

only to the retail portion of the business.

      (h) "Household" means and includes those who dwell under the same roof, house, or

apartment.

      (i) "Rebate" means a refund of a portion of the purchase price made to consumer to

induce purchase of product.

     6-13-2. Computation of cost of tobacco products. -- For purposes of this chapter,:

      (1) The tax imposed by chapter 20 of title 44 shall be deemed to be a part of the original

cost of cigarettes to the wholesaler;

      (2) The invoice or replacement cost of cigarettes, cigars, smoking tobacco, chewing

tobacco, snuff, and other tobacco products, to any wholesaler or retailer, shall be deemed to be

the minimum price in this state at which the products may be purchased in this state by the

wholesaler or retailer; and

      (3) Merchandise given gratis to a wholesaler or to a retailer for display, advertising, or

promotion purposes, or otherwise, shall not be considered in determining the cost of merchandise

to the wholesaler or retailer, as the case may be.

     6-13-2.1. Sales of milk. -- (a) It shall be unlawful for any person, with intent to injure

competitors or destroy competition, to sell within the state any milk or render any service in

connection with the sale or distribution of milk at a price less than the cost of the milk or services,

including, in the case of milk sold, the original purchase price, and in every instance all regular

direct or indirect elements of cost, services, physical handling, and financial investment in the

milk in question. No milk dealer shall, with this intent, use any method or device, either by

discount or rebate,; free service,; advertising allowance,; or by a combination price for the milk

together with another commodity or service,; as a result of which that results in the total price of

the milk and the other commodity or service is being less than the aggregate of the prices for the

milk and commodity or service when sold or offered for sale or performed separately or

otherwise.

      (b) Any person who shall violate the provisions of this section shall upon conviction be

subject to the penalty provided in section § 6-13-3. The provisions of sections §§ 6-13-3 -- 6-13-8

shall apply to milk in the same manner as if milk were "merchandise.".

     6-13-3. Penalty for advertising or sale to injure competitors or destroy competition. -

- Any retailer, who, with intent to injure competitors or destroy competition, advertises, offers to

sell, or sells at retail any item of merchandise at less than cost to the retailer, or any wholesaler

who, with intent as previously mentioned, advertises, offers to sell, or sells at wholesale any item

of merchandise at less than cost to the wholesaler, shall, if the offender is an individual, be

LC005208/SUB A - Page 31 of 210

punished by a fine of not more than five hundred dollars ($500) or by imprisonment for not less

than one month nor more than one year, or both; or, if the offender is a corporation, by a fine as

previously mentioned. Notwithstanding the provisions of this section, as it pertains to a Class A

or a Class B distributor of tobacco, any offense of this title shall be punished by a fine of not

more than five thousand dollars ($5,000) for a first offense,; a fine of not more than ten thousand

dollars ($10,000) and a license suspension of not more than fourteen (14) calendar days for a

second offense,; and a fine of not more than twenty thousand dollars ($20,000) and a license

suspension or revocation for a third offense.

     6-13-4. Below cost sales as evidence of intent. Below-cost sales as evidence of intent.--

Evidence of any advertisement,; offer to sell,; or sale of any item of merchandise by any retailer

or wholesaler at less than cost to him or her, as defined in this chapter, shall be prima facie

evidence of intent to injure competitors or destroy competition.

     6-13-5. Sales exempt from chapter. -- This chapter shall not apply with respect to

advertising or offering to sell or selling, at retail or at wholesale, as the case may be, if done:

      (1) In an isolated transaction and not in the usual course of business;

      (2) Where merchandise is sold in bona fide clearance sales, if advertised or offered for

sale as such or marked and sold as such, or where merchandise is marked down in an effort to sell

the merchandise after bona fide efforts to sell the merchandise prior to the markdown;

      (3) Where perishable merchandise must be sold promptly in order to forestall loss;

      (4) Where merchandise is imperfect or damaged or its sale is being discontinued, if

advertised or offered for sale as such or marked and sold as such;

      (5) Where merchandise is advertised or offered for sale or sold upon the final liquidation

of any business;

      (6) Where merchandise is advertised or offered for sale or sold for charitable purposes or

to relief agencies;

      (7) Where merchandise is sold on contract to any department, board, or commission of

this state, or of any of its political subdivisions, or to any institution maintained thereby; or

      (8) Where merchandise is advertised or offered for sale or sold by any fiduciary or other

officer acting under the order or direction of any court.

     6-13-6. Enforcement of chapter. -- Upon the complaint of any person, the superior court

shall have jurisdiction to restrain and enjoin any act forbidden or declared illegal by any

provisions of this chapter; and it shall be the duty of the attorney general of this state to enforce

and restrain the violation of the sections of this chapter.

     6-13-11. Discount price advertisement. -- It shall be unlawful to use, communicate, or

LC005208/SUB A - Page 32 of 210

publish any advertisement that states that an item or product is being sold or offered for sale at

below the regular price or at a percentage off the regular price without posting the regular price at

the point of purchase. Whenever an item or product is advertised for sale at below the regular

price or at a percentage off the regular price, the advertisement shall clearly state whether there is

an additional charge for equipment or services which that are reasonably necessary for the proper

use of the product. Any person, firm, or corporation who or that shall violate the provisions of

this section shall be punished by a fine of not more than five hundred dollars ($500).

     6-13-12. Sales of gift certificates. – (a) "Gift certificate" means a record evidencing a

promise, made for monetary consideration, by the seller or issuer for the record that goods or

services will be provided to the owner of the record to the value shown in the record and includes,

but is not limited to,: (1) a A record that contains a microprocessor chip, magnetic strip, or other

means of storage of information that is pre-funded and for which the value is decremented upon

each use,; (2) a A gift card, an electronic gift card, stored-value card or certificate,; (3) a A store

card,; (4) prepaid Prepaid long-distance telephone service that is activated by a prepaid card that

requires dialing an access number or an access code for each call in addition to dialing the phone

number to which the user of the prepaid card seeks to connect,; or (5) a A similar record or card.

Any person, firm, or corporation that sells gift certificates for any product or merchandise sold by

the person, firm, or corporation, shall be required to record the sales and keep an accurate and

complete record of each gift certificate sold. The record shall include the date of sale,; the full

value of the certificate,; the identification number assigned by the retailer to the certificate,; and

the state in which the sale of the certificate took place. The retailer shall further be required to

give to the purchaser of gift certificates exceeding fifty dollars ($50.00) a written and numbered

receipt evidencing the sale of the certificate. It shall be unlawful for any person, firm, or

corporation of any kind to charge any surcharge or additional monthly or annual service or

maintenance fees on gift certificates or to limit the time for the redemption of a gift certificate or

to place an expiration date upon the gift certificate. No gift certificate or any agreement with

respect to such gift certificate may contain language suggesting that an expiration date may apply

to the gift certificate. Any person, firm, or corporation that shall violate the provisions of this

section shall be punished by a fine of not more than two hundred dollars ($200). Due to the

unlimited redemption period, the division of taxation shall not escheat the funds paid for those

unredeemed gift certificates. Any unused portion of a redeemed gift certificate shall be afforded

to the consumer by reissuing the gift certificate for the unused amount or providing cash where

the balance due the consumer is less than one dollar ($1.00). This section shall not apply to the

following:

LC005208/SUB A - Page 33 of 210

      (a)(b) Gift certificates that are distributed to a consumer pursuant to an awards, loyalty,

or promotional program without any money or other thing of value being given in exchange for

the gift certificate by the consumer. Any restrictions or limitations which that such gift

certificates may be subject to must be disclosed to the consumer, in writing, at the time the gift

certificates are distributed to the consumer.

      (b)(c) Prepaid wireless telephone service or prepaid wireless telephone card. "Prepaid

wireless telephone service" means wireless telephone service that is activated in advance by

payment for a finite dollar amount of service or for a finite set of minutes that terminate either

upon use by a customer and delivery by the wireless provider of an agreed-upon amount of

service corresponding to the total dollar amount paid in advance or within a certain period of time

following the initial purchase or activation, unless additional payments are made.

      (c)(d) Gift cards or prepaid or store value cards that are issued by state-chartered

financial institutions and credit unions or that are issued by third-party issuers usable at multiple,

unaffiliated merchants or service providers,; provided that said financial institutions, credit

unions, or third-party issuers comply with the guidelines on disclosure and marketing as

published by the office of the comptroller of the currency.

     6-13-12.1. Donation of gift certificates. -- Any gift certificate/card as defined in section

§ 6-13-12 which that has been donated for fundraising purposes, shall be exempt from the

provisions of section § 6-13-12 relating to expiration dates, provided, that the gift certificate/card

clearly states that the gift certificate/card has been donated for charity purposes and is subject to a

clearly defined expiration date, not less than one year from the issuance of the gift certificate/card

to the gift certificate/card recipient.

     6-13-15. Prohibition against recording credit card or social security numbers on

checks. -- It shall be unlawful, during a sale at retail of any goods or merchandise, to record any

credit card or all or part of a social security number obtained from a purchaser as a means of

identification upon the check of the purchaser tendered for the sale. Any person, firm, or

corporation that shall violate the provisions of this section shall be punished by a fine of not more

than one hundred dollars ($100). This section does not prohibit any person from requesting

production of, or recording, a credit card number as a condition for cashing or accepting a check,

provided the person has agreed with the credit card issuer to cash or accept checks from card

holders of the issuer,; the issuer has agreed to guarantee card holder checks cashed or accepted by

that person,; and the card holder has given actual, apparent, or implied authority for the use of his

or her card number in the manner and for the purpose described in this section.

     6-13-16. Prohibition against recording personal information in credit card

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transactions. -- (a) No person, firm, partnership, or corporation which that accepts credit cards

for the transaction of business shall require the credit card holder to write or cause to be written

on a transaction form any personal identification information, including, but not limited to, the

credit card holder's address or telephone number, that is not required by the credit card issuer to

complete the credit card transactions.

      (b) The credit card holder's address and telephone number may be required on a

transaction form where: (1) this information is necessary for shipping, delivery, installation of

purchased merchandise, consumer rental transactions, warranty, or for special orders; (2)

authorization from the credit card issuer as to the availability of credit is required by the issuer to

complete the credit card transaction; or (3) the person, firm, partnership, or corporation processes

credit card transactions by mailing transaction forms to the designated bankcard center for

settlement.

      (c) This section shall not preclude a person, firm, partnership, or corporation that accepts

credit cards from requesting this personal identification and recording it, if it is provided by the

card holder pursuant to that request.

      (d) Any person, firm, partnership, or corporation who or that shall violate the provisions

of this section shall be punished by a fine of not more than one hundred dollars ($100).

     6-13-17. Requiring consumers to furnish social security numbers. -- (a) Unless

otherwise required by federal law, no person shall require that a consumer of goods or services

disclose all or part of a social security number incident to the sale of consumer goods or services;

provided, however, that:

      (1) Insurance companies and institutions licensed by the state or federal government for

financial services may require applicants for those services to disclose their social security

number;

      (2) Social security numbers may be required for the providing and billing of health care

or pharmaceutical-related services, including the issuance of identification cards and account

numbers for users of health care or pharmaceutical-related services; and

      (3) Disclosure may be required of a consumer as a condition of applying for a credit card

for the purchase of goods or services.

      (b) Any person violating the provisions of this section shall be guilty of a misdemeanor,

and upon conviction, shall be fined not more than five hundred dollars ($500).

      (c) In any civil action alleging a violation of this section, the court may award damages,

reasonable attorney's fees, and costs to a prevailing consumer, and afford injunctive relief against

any person or business that commits or proposes to commit a violation of this section.

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     6-13-18. Check cashing discrimination. -- A business that willingly accepts personal

checks from Rhode Island customers for goods or services shall be prohibited from refusing

checks based solely on the geographic area in which the customer lives within the state of Rhode

Island. Any person, firm, or corporation which shall violate violating the provisions of this

section shall be punished by a civil penalty of not more than one hundred dollars ($100) per

violation.

     6-13-19. Requiring consumers to furnish social security numbers. -- No person, firm,

corporation, or other business entity which that offers discount cards for purchases made at any

business maintained by the offeror shall require that a consumer of goods who applies for a

discount card furnish all or part of his or her social security number as a condition precedent to

the application for the consumer discount card. No information obtained on the application or by

use of a discount card can be sold or given to any other person, firm, corporation, or business

entity, provided, that the person, firm, corporation, or other business may: (a) disclose such

information to its affiliates, to service providers that perform services for it, or as required by law;

and/or (b) transfer such information in connection with the sale of its business operations.

     6-13-20. Rebate restrictions -- prohibited. -- No person, firm, business, partnership or

corporation which that issues rebates to its customers in the course of their transactions of

business shall restrict their use to one per household per item purchased; provided, however, that

this section shall not apply to rebates on the sale of beverages.

     6-13-21. Price gouging -- Essential commodities. -- (a) Upon a declaration of a state of

emergency by the governor, or federal disaster declaration by the president, it shall be an unfair

sales practice for individuals or retailers, to participate in price gouging, by making sales, or

offering to sell, within the area for which the market emergency is declared, essential

commodities to consumers for an amount that represents an unconscionably high price.

      (b) As used in this section:

      (1) "Unconscionably high price" means the amount charged represents a gross disparity

between the average prices at which the same or similar commodity was readily available and

sold or offered for sale within the local trade area in the usual course of business during the thirty

(30) days immediately before the declaration of the market emergency, and the additional charges

are not substantially attributable to increased cost to retailers, imposed by their suppliers,

including replacement costs imposed by the vendors' source. Additionally, the average price

calculation during said thirty (30) day -day (30) period shall not include discounted prices set and

offered as a result of bona fide manufacturer's or supplier's limited discounts or rebates.

      (i) Under a federal disaster declaration by the president or upon a declaration of a state of

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emergency by the governor, it is unlawful and a violation of chapter 6-13 of title 6, and

subdivision § 30-15-9(e)(12) of title 30, to sell, or offer to sell, at an unconscionably high price,

any essential commodity.

      (2) "Price gouging" means charging a consumer an unconscionably high price for

essential commodities during a declared market emergency.

      (3) "Essential commodities" means any goods, services, materials, merchandise,

supplies, equipment, resources, or other article of commerce, and includes, without limitation,

home heating fuels, motor fuels, food, water, ice, chemicals, petroleum products, and lumber

necessary for consumption or use as a direct result of the market emergency.

      (4) "Market emergency" means any declaration of a state of emergency by the governor

or federal disaster declaration by the president. The market emergency shall exist until the

declaration expires or is terminated.

      (5) "Individual" means a person, corporation, partnership, limited liability company,

association, joint venture, agency, or any other legal or commercial entity.

      (6) "Consumer" means an individual who enters into a transaction primarily for personal,

family, or household purposes.

      (7) "Retailer" means and includes every individual licensed to engage in the business of

making sales at retail within this state.

      (c) This section shall not prohibit the fluctuation in price of essential commodities which

that occur during the normal course of business.

      (d) Any violation of this section shall constitute an unfair sales practice under the terms

of chapter 13.1 of this title 6.

      (e) In addition to the penalties provided in chapter 13.1 of this title 6, and subdivision

30-15-9(e)(12), the court may impose orders and civil penalties, including, but not limited to:

      (1) A fine of not more than one thousand dollars ($1,000) per violation with an aggregate

total not to exceed twenty-five thousand dollars ($25,000) for any twenty-four (24) hour -hour

(24) period;

      (2) An order to pay costs of litigation relating to the offense;

      (3) An order for disgorgement of profits earned; and

      (4) Any other relief determined by the court to be appropriate.

      (f) All monetary penalties so collected shall accrue to the enforcing authority to further

consumer enforcement efforts.

     SECTION 10. Sections 6-13.1-1, 6-13.1-3, 6-13.1-5, 6-13.1-5.2, 6-13.1-7, 6-13.1-14, 6-

13.1-15, 6-13.1-17, 6-13.1-20, 6-13.1-21, 6-13.1-22, 6-13.1-23, 6-13.1-24, 6-13.1-25, 6-13.1-28

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and 6-13.1-29 of the General Laws in Chapter 6-13.1 entitled "Deceptive Trade Practices" are

hereby amended to read as follows:

     6-13.1-1. Definitions. -- As used in this chapter:

      (1) "Documentary material" means the original or a copy of any book, record, report,

memorandum, paper, communication, tabulation, map, chart, photograph, mechanical

transcription, or other tangible document or recording wherever situated.

      (2) "Examination" of documentary material includes the inspection, study, or copying of

any documentary material, and the taking of testimony under oath or acknowledgment in respect

of any documentary material or copy of any documentary material.

      (3) "Person" means natural persons, corporations, trusts, partnerships, incorporated or

unincorporated associations, and any other legal entity.

      (4) "Rebate" means the return of a payment or a partial payment, which that serves as a

discount or reduction in price.

      (5) "Trade" and "commerce" mean the advertising, offering for sale, sale, or distribution

of any services and any property, tangible or intangible, real, personal, or mixed, and any other

article, commodity, or thing of value wherever situate, and include any trade or commerce

directly or indirectly affecting the people of this state.

      (6) "Unfair methods of competition and unfair or deceptive acts or practices" means any

one or more of the following:

      (i) Passing off goods or services as those of another;

      (ii) Causing likelihood of confusion or of misunderstanding as to the source,

sponsorship, approval, or certification of goods or services;

      (iii) Causing likelihood of confusion or of misunderstanding as to affiliation, connection,

or association with, or certification by, another;

      (iv) Using deceptive representations or designations of geographic origin in connection

with goods or services;

      (v) Representing that goods or services have sponsorship, approval, characteristics,

ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship,

approval, status, affiliation, or connection that he or she does not have;

      (vi) Representing that goods are original or new if they are deteriorated, altered,

reconditioned, reclaimed, used, or secondhand; and if household goods have been repaired or

reconditioned, without conspicuously noting the defect which that necessitated the repair on the

tag which that contains the cost to the consumer of the goods;

      (vii) Representing that goods or services are of a particular standard, quality, or grade, or

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that goods are of a particular style or model, if they are of another;

      (viii) Disparaging the goods, services, or business of another by false or misleading

representation of fact;

      (ix) Advertising goods or services with intent not to sell them as advertised;

      (x) Advertising goods or services with intent not to supply reasonably expectable public

demand, unless the advertisement discloses a limitation of quantity;

      (xi) Making false or misleading statements of fact concerning the reasons for, existence

of, or amounts of price reductions;

      (xii) Engaging in any other conduct that similarly creates a likelihood of confusion or of

misunderstanding;

      (xiii) Engaging in any act or practice that is unfair or deceptive to the consumer;

      (xiv) Using any other methods, acts, or practices which that mislead or deceive members

of the public in a material respect;

      (xv) Advertising any brand name goods for sale and then selling substituted brand names

in their place;

      (xvi) Failure to include the brand name and or manufacturer of goods in any

advertisement of the goods for sale, and, if the goods are used or secondhand, failure to include

the information in the advertisement;

      (xvii) Advertising claims concerning safety, performance, and comparative price unless

the advertiser, upon request by any person, the consumer council, or the attorney general, makes

available documentation substantiating the validity of the claim;

      (xviii) Representing that work has been performed on or parts replaced in goods when

the work was not in fact performed or the parts not in fact replaced; or

      (xix) Failing to separately state the amount charged for labor and the amount charged for

services when requested by the purchaser as provided for in section § 44-18-12(b)(3).

      (xx) Advertising for sale at a retail establishment the availability of a manufacturer's

rebate by displaying the net price of the advertised item (the price of the item after the rebate has

been deducted from the item's price) in the advertisement, unless the amount of the

manufacturer's rebate is provided to the consumer by the retailer at the time of the purchase of the

advertised item. It shall be the retailer's burden to redeem the rebate offered to the consumer by

the manufacturer.

      (xxi) [Deleted by P.L. 2007, ch. 31, section 1 and P.L. 2007, ch. 38, section 1_.

     6-13.1-3. Interpretation. -- It is the intent of the legislature that in construing sections

     §§ 6-13.1-1 and 6-13.1-2 due consideration and great weight shall be given to the

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interpretations of the federal trade commission Federal Trade Commission and the federal courts

relating to section 5(a) of the Federal Trade Commission Act. 15 U.S.C. section 45(a)(1), as from

time to time amended.

     6-13.1-5. Restraining prohibited acts. -- (a) Whenever the attorney general has reason

to believe that any person is using, has used, or is about to use any method, act, or practice

declared to be unlawful by section § 6-13.1-2, and that proceedings would be in the public

interest, the attorney general may bring an action in the name of the state against the person to

restrain by temporary or permanent injunction the use of the method, act, or practice, upon the

giving of appropriate notice to that person. The notice must generally state the relief sought and

be served in accordance with section § 6-13.1-7 and at least three (3) days before the hearing of

the action.

      (b) The action may be brought in the superior court of the county in which the person

shall dwell, or be found,; or have his principal place of business,; or, with consent of the parties,;

or if the person is a nonresident or has no principal place of business within this state or if the

superior court shall not be in session in the counties previously said to be applicable, may be

brought in the superior court of Providence County. The superior courts are authorized to issue

temporary or permanent injunctions to restrain and prevent violations of this chapter, and the

injunctions shall be issued without bond.

      (c) The court may make any additional orders or judgments that may be necessary to

restore to any person in interest any moneys or property, real or personal, which that may have

been acquired by means of any practice in this chapter declared to be unlawful, including the

appointment of a receiver in any case where the superior court finds that the assets of a

corporation are in danger of being misapplied, dissipated, wasted, or lost, or the revocation of a

license or certificate authorizing that person to engage in business in this state, or both.

      (d) Actions under this chapter may be brought without regard to the pendency of

criminal proceedings arising out of the same acts or practices and no action shall bar the

institution of criminal proceedings arising out of the same acts or practices. No involuntary

admission by any person in the action shall be admissible in any subsequent criminal proceeding.

     6-13.1-5.2. Private and class actions. -- (a) Any person who purchases or leases goods

or services primarily for personal, family, or household purposes and thereby suffers any

ascertainable loss of money or property, real or personal, as a result of the use or employment by

another person of a method, act, or practice declared unlawful by section § 6-13.1-2, may bring

an action under the rules of civil procedure Rules of Civil Procedure in the superior court of the

county in which the seller or lessor resides,; is found,; has his or her principal place of business,

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or is doing business,; or in the superior court of the county as is otherwise provided by law, to

recover actual damages or two hundred dollars ($200), whichever is greater. The court may, in its

discretion, award punitive damages and may provide other equitable relief that it deems necessary

or proper.

      (b) Persons entitled to bring an action under subsection (a) of this section may, if the

unlawful method, act, or practice has caused similar injury to numerous other persons similarly

situated and if they adequately represent the similarly situated persons, bring an action on behalf

of themselves and other similarly injured and situated persons to recover damages as provided for

in subsection (a) of this section. In any action brought under this section, the court may in its

discretion order, in addition to damages, injunctive or other equitable relief.

      (c) Upon commencement of any action brought under subsection (a) of this section, the

clerk of court shall mail a copy of the complaint or other initial pleading to the attorney general

and, upon entry of any judgment or decree in the action, shall mail a copy of the judgment or

decree to the attorney general.

      (d) In any action brought by a person under this section, the court may award, in addition

to the relief provided in this section, reasonable attorney's fees and costs.

      (e) Any permanent injunction, judgment, or order of the court made under section § 6-

13.1-5 shall be prima facie evidence in an action brought under this section that the respondent

used or employed a method, act, or practice declared unlawful by section § 6-13.1-2.

     6-13.1-7. Investigations -- Procedure -- Remedies for failure to comply. -- (a) When it

appears to the attorney general that a person has engaged in, is engaging in, or is about to engage

in, any act or practice declared to be unlawful by this chapter, or when the attorney general

believes it to be in the public interest that an investigation should be made to ascertain whether a

person in fact has engaged in, is engaging in, or is about to engage in, any act or practice declared

to be unlawful by this chapter, he or she may execute, in writing, and cause to be served upon any

person who is believed to have information, documentary material, or physical evidence relevant

to the alleged or suspected violation, an investigative demand, stating the general subject matter

of the investigation and the statute and section under which the alleged or the suspected violation

is alleged of which is under investigation and requiring and require the person to furnish, under

oath or otherwise, a report in writing stating the relevant facts and circumstances of which the

person has knowledge, or to appear and testify or to produce relevant documentary material or

physical evidence for examination, at any reasonable time and place that may be stated in the

investigative demand, concerning the advertisement, sale, or offering for sale of any goods or

services or the conduct of any trade or commerce that is the subject matter of the investigation.

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All civil investigative demands shall be filed in the superior court of the county in which the

person served with the demand shall dwell or have his principal place of business.

      (b) At any time before the return date specified in an investigative demand, or within

twenty (20) days after the demand has been served, whichever period is shorter, a petition to

extend the return date or to modify or set aside the demand, stating good cause, may be filed in

the superior court in which the person served with the demand shall dwell or have his or her

principal place of business, or in the superior court of Providence County.

      (c) To accomplish the objectives and to carry out the duties prescribed by this chapter,

the attorney general, in addition to other powers conferred upon him or her by this chapter, may