2015 -- H 6161 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO STATUTES AND STATUTORY CONSTRUCTION

     Introduced By: Representatives DeSimone, and Newberry

     Date Introduced: May 01, 2015

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

ARTICLE I -- STATUTORY CONSTRUCTION

     SECTION 1. Sections 5-6-8 and 5-6-11 of the General Laws in Chapter 5-6 entitled

"Electricians" are hereby amended to read as follows:

     5-6-8. Contractor's certificates/licenses. -- (a) Electrical contractor's license. – A

Certificate A shall be issued to any person, firm, or corporation, qualified under this chapter,

engaging in, or about to engage in, the business of installing electrical wires, conduits, apparatus,

fixtures, fire alarm and safety communication systems, and other electrical appliances, excluding

low-voltage wiring for heating, ventilating, and air conditioning equipment. The certificate shall

specify the name of the person, firm, or corporation applying for it and the name of the person,

who in the case of a firm is one of its members, and in the case of a corporation, is one of its

officers, passing the examination by which he or she or it is authorized to enter upon, or engage

in, business as prescribed in the certificate. The holding of a Certificate A does not entitle the

holder individually to engage in or perform the actual work of installing electric wires, conduits,

and appliances as previously described in this chapter, but entitles him or her to conduct business

as an electrical contractor.

      (b) Oil burner contractor's license. - A Certificate E shall be issued to any person, firm,

or corporation qualified under this chapter and engaged in, or about to engage in, the business of

an oil burner contractor as defined in § 5-6-1. The certificate shall specify the name of the person,

firm, or corporation applying for it and the name of the person who, in the case of a firm is one of

its members, and in the case of a corporation is one of its officers, passing the examination, by

which he or she or it is authorized to enter upon, or engage in, business as prescribed in the

certificate. The holding of a Certificate E does not entitle the holder individually to engage in or

perform any work on, or in connection with, electric wires, conduits, and appliances as previously

described in this chapter, but entitles the holder to contract to do that work, to the extent

permitted in this chapter, through the employment of oil burnerpersons holding a Certificate F.

An oil burner contractor who is the holder of a Certificate A is not required to obtain a Certificate

E.

      (c) Fire alarm contractor's license. - A Certificate AF shall be issued to any person, firm,

or corporation qualified under this chapter and engaged in, or about to engage in, the business of

a fire alarm contractor as defined in § 5-6-1. The certificate shall specify the name of the person,

firm, or corporation applying for it and the person who, in the case of a firm is one of its

members, and in the case of a corporation is one of its officers, passing the examination by which

he or she or it is authorized to enter upon, or engage in, business as prescribed in the certificate.

The holding of a Certificate AF does not entitle the holder individually to engage in, or perform

and work on, or in connection with, electric wires, fire alarm wires, conduits, and appliances as

previously described in this chapter, but entitles the holder to contract to do that work to the

extent permitted in this chapter through the employment of fire alarm installers holding a

Certificate BF. A contractor who is the holder of a Certificate A is not required to obtain a

Certificate BF.

      (d) Electrical sign contractor's license. - A Certificate SCF shall be issued to any person,

firm, or corporation qualified under this chapter and engaged in or about to engage in the business

of electrical sign installations, as defined in § 5-6-1.

      (e) Lightning protection contractor. - A Certificate LPC shall be issued to any person,

firm or corporation qualified under this chapter and engaged in, or about to engage in, the

business of lightning protection contractor as defined in § 5-6-1. The Certificate LPC shall

specify the name of the person, firm, or corporation applying for it and the person, who in the

case of a firm, is one of its members, and in the case of a corporation, is one of its officers,

passing the examination by which he or she or it is authorized to enter upon or engage in business

as prescribed in the certificate. The holding of a Certificate LPC does not entitle the holder

individually to engage in, or perform and work on, or in connection with, the installation of

lightning protection equipment as defined in § 5-6-1, unless that individual also holds a

Certificate LPI, but entitles the holder to contract to do that work to the extent permitted in this

chapter through the employment of lightning protection installers holding a Certificate LPI.

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      (f) Sign renovation electrical license. - A certificate SRL shall be issued to any person,

firm, or corporation qualified under this chapter and engaged in, or about to engage in, the

business of sign renovation or installation of signs when such renovation or installation requires

the removal or installation of no more than three (3) wires.

      (g) Renewable energy professional. - A Certificate REP shall be issued to any person,

firm or corporation, qualified under this chapter, engaged in or about to engage in the business of

installing eligible renewable energy technologies as defined in § 39-26-5. All renewable energy

electrical work, including installing, connecting, maintaining, servicing, and testing all electrical

wires, conduits and apparatus; mounting the modules to the mounting racks; mounting the

inverters; and tying the inverters into the main electrical panels shall be done by a licensed

electrician. Ancillary non-electrical renewable energy work, such as advertising services;

distribution of materials to final location of installation including photovoltaic modules to the

mounting racks; and installing the ground and rooftop support brackets and ballast for rack

systems, may be done by any person, firm or corporation holding an REP Certificate. The REP

Certificate shall specify the name of the person, firm, or corporation applying for it and the name

of the person, who in the case of a firm is one of its members, and in the case of a corporation, is

one of its officers, meeting the requisite education and experience as established in § 5-6-11, by

which he or she or it is authorized to enter upon, or engage in, business as prescribed in the

certificate. The holding of a Certificate REP entitles the holder to contract to do that work to the

extent permitted in this chapter.

     The installation, mechanical fastening and conjoining of listed solar sheathing systems

that are ten kilowatts (10 kw) or less on residential structures as defined by the Rhode Island one

and two (2) family dwelling code may be performed by a registered contractor who or that has

been issued a renewable energy professional certificate (REPC) as defined in § 5-6-11(e) and

above referenced. However, said residential solar sheathing system shall be connected to the

electrical system from the roof edge and energized by a Rhode Island licensed electrician working

in compliance with chapter 6 of title 5. Additionally, the residential solar sheathing systems noted

must be listed and labeled by UL or other recognized electrical device certification organization,

identified and acceptable by the authority having jurisdiction.

     5-6-11. Certificate/license of oil burnerperson, fire alarm installer, electrical sign

installers, lightning protection installers and renewable energy professionals. -- (a) Oil

burnerperson's license. - A Certificate F shall be granted to any person who has passed an

examination before the division of professional regulation. The certificate shall specify the name

of the person authorized to work on, and repair electric wiring and equipment located in or on oil

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burners burning fuel oil no heavier than No. 2, and other equipment serviced by oil burner

contractors, to the extent only as is necessary to service, maintain and repair those oil burners and

equipment. The license shall limit the holder of a Certificate F to do work on electric wiring or

equipment located between the meter and those oil burners and equipment, but in no event to do

any electrical work on oil burners burning No. 3, 4, 5, or 6 fuel oil.

      (b) Fire alarm installer's license. - A Certificate BF shall be granted to any person who

has passed an examination before the division of professional regulation. The certificate shall

specify the name of the person authorized to work on, install, maintain, and test fire alarm

systems.

      (c) Electrical sign installer's license. - A Certificate CF shall be granted to any person

who has passed an examination before the division of professional regulations. The certificate

shall specify the name of the person authorized to install, maintain, work on, and repair electrical

signs.

      (d) Lightning protection installer's license. - A Certificate LPI shall be granted to any

person who has passed an examination before the division of professional regulations. The

certificate shall specify the name of the person authorized to install, maintain, work on, and repair

lightning protection systems as defined in § 5-6-1.

      (e) Renewable energy professional's certificate. - The Rhode Island department of labor

and training shall issue a Certificate of Competency in the Design and Installation of Renewable

Energy Systems certificate of competency in the design and installation of renewable energy

systems to any person, firm, or corporation who or that has received a certification from a

nationally recognized, or equivalent, renewable energy certification training program and has

demonstrated proof of such certification to the Rhode Island office of energy resources.

     SECTION 2. Section 5-20-35 of the General Laws in Chapter 5-20 entitled "Plumbers

and Irrigators" is hereby amended to read as follows:

     5-20-35. Persons and acts exempt -- Issuance of licenses in special cases. -- (a) The

provisions of this chapter do not apply to the installation of automatic sprinkler systems or other

fire protection appliances in this state and do not apply to employees of public utilities (publicly

or privately owned); provided, that any resident of Rhode Island not licensed, as provided in this

chapter, desiring a license as a master plumber or journeyperson plumber who on or before

August 14, 1966, presents to the department of labor and training of the state reasonably

satisfactory evidence, in writing, that he or she was actively engaged in the business of plumbing

as a master plumber or working as a journeyperson plumber for a master plumber in any city or

town for five (5) years prior to May 16, 1966, and that he or she is at the time of presenting that

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evidence to the department of labor and training operating in any city or town as a master

plumber or working as journeyperson plumber, shall, upon payment of a fee of five dollars

($5.00) in the case of a master plumber or one dollar ($1.00) in the case of a journeyperson

plumber, have issued to him or her by the department of labor and training a certificate of license

as a master plumber or a journeyperson plumber without an additional application, fee, or other

condition precedent. Farms, golf courses, and nurseries performing irrigation work on their

premises only shall not be required to be licensed under the chapter.

      (b) Solar thermal professional. - A Certificate REPC shall be issued to any person, firm,

or corporation, qualified under this chapter, engaged in, or about to engage in, the business of

installing solar thermal technologies. Solar thermal plumbing or mechanical work must be

performed by persons, firms or corporations properly licensed under chapter 20 of title 5 or

chapter 27 of title 28. Certificate REPC holders may advertise and bid for solar thermal work

provided that they contract with persons, firms or corporations who or that are properly licensed

under chapter 20 of title 5 or chapter 27 of title 28 to perform all related plumbing or mechanical

work. The REPC Certificate shall specify the name of the person, firm, or corporation applying

for it and the name of the person, who, in the case of a firm, is one of its members, and in the case

of a corporation, is one of its officers, passing the examination, by which he or she or it is

authorized to enter upon or engage in business as prescribed in the certificate.

      (c) Solar thermal professional's certificate. - The Rhode Island department of labor and

training shall issue a Certificate of Competency in the Design and Installation of Solar Thermal

Systems certificate of competency in the design and installation of solar thermal systems to any

person, firm, or corporation who or that has received a certification from a nationally recognized,

or equivalent, renewable energy certification training program and has demonstrated proof of

such certification to the Rhode Island office of energy resources.

      (d) Nothing in this or any other chapter of the general laws shall prohibit municipalities

or water districts from using employees, or engaging the services of licensed plumbers or other

contractors and/or service providers that meet certain requirements determined by the

municipality or water district, for the purpose of replacing water meters or meter reading devices.

     SECTION 3. Section 11-9-13.15 of the General Laws in Chapter 11-9 entitled "Children"

is hereby amended to read as follows:

     11-9-13.15. Penalty for operating without a dealer license. -- (a) Any individual or

business who or that violates this chapter by selling or conveying a tobacco product without a

retail tobacco products dealer license shall be cited for that violation and shall be required to

appear in court for a hearing on the citation.

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      (b) Any individual or business cited for a violation under this section of this chapter

shall:

      (1) Either post a two-thousand-five-hundred-dollar ($2,500) bond with the court within

ten (10) days of the citation; or

      (2) Sign and accept the citation indicating a promise to appear in court.

      (c) An individual or business who or that has accepted the citation may:

      (1) Pay a ten-thousand-dollar ($10,000) fine, either by mail or in person, within ten (10)

days after receiving the citation; or

      (2) If that individual or business has posted a bond, forfeit the bond by not appearing at

the scheduled hearing. If the individual or business cited pays the ten-thousand-dollar ($10,000)

fine or forfeits the bond, that individual or business is deemed to have admitted the cited violation

and to have waived the right to a hearing on the issue of commission on the violation.

      (d) The court after a hearing on a citation shall make a determination as to whether a

violation has been committed. If it is established that the violation did occur, the court shall

impose a ten-thousand-dollar ($10,000) fine, in addition to any court costs or other court fees.

     SECTION 4. Section 19-1-1 of the General Laws in Chapter 19-1 entitled "Definitions

and Establishment of Financial Institutions" is hereby amended to read as follows:

     19-1-1. Definitions. -- Unless otherwise specified, the following terms shall have the

following meanings throughout this title:

      (1) "Agreement to form" means the agreement to form a financial institution or the

agreement to form a credit union, as applicable, pursuant to this title, and includes, for financial

institutions organized before December 31, 1995, the articles of incorporation or the agreement of

association of the financial institution, where applicable.

      (2) "Branch" means any office or place of business, other than the main office or

customer-bank-communication-terminal outlets as provided for in this title, at which deposits are

received, or checks paid or money lent, or at which any trust powers are exercised. Any financial

institution which had, on or before June 30, 2003, established an office or place of business, other

than its main office, at which trust powers are exercised, shall not be required to obtain the

approval of the director, or the director's designee, pursuant to § 19-2-11 for any such offices

established as of that date.

      (3) "Credit union" means a credit union duly organized under the laws of this state.

      (4) "Director" means the director of the department of business regulation, or his or her

designee.

      (5) "Division of banking" means the division within the department of business

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regulation responsible for the supervision and examination of regulated institutions and/or

licensees under chapter 14 of this title.

      (6) "Federal credit union" means a credit union duly organized under the laws of the

United States.

      (7) "Financial institution" means any entity, other than a credit union, duly organized

under the laws of this state that has the statutory authority to accept money on deposit pursuant to

title 19, including an entity that is prohibited from accepting deposits by its own bylaws or

agreement to form; the term includes, but is not limited to banks, trust companies, savings banks,

loan and investment banks, and savings and loan associations.

      (8) "Main office" means, in the case of financial institutions or credit unions, the location

stated in the agreement to form, as amended, and, otherwise, the location recognized by the

institution's primary banking regulator as its main office.

      (9) "Person" means individuals, partnerships, corporations, limited liability companies,

or any other entity however organized.

      (10) "Regulated institution" means any financial institution, credit union, or other

insured-deposit-taking institution, which is authorized to do business in this state, including one

authorized by operation of an interstate banking statute that allowed its original entry.

      (11) "Retail installment contract" means any security agreement negotiated or executed

in this state, or under the laws of this state, including, but not limited to, any agreement in the

nature of a mortgage, conditional sale contract, or any other agreement whether or not evidenced

by any written instrument to pay the retail purchase price of goods, or any part thereof, in

installments over any period of time and pursuant to which any security interest is retained or

taken by the retail seller for the payment of the purchase price, or any part thereof, of the retail

installment contract.

      (12) "Retail seller" means any person who sells or contracts to sell any goods under a

retail installment contract to a retail buyer.

      (13) "Superintendent" means the deputy director designated by the director as

superintendent of banking in the department of business regulation.

      (14) "Unimpaired capital" means the sum of all capital and allowance accounts minus

estimated losses on assets, calculated in accordance with generally accepted accounting

principles.

      (15) "Writing" means hard copy writing or electronic writing that meets the requirements

of § 42-127.1-1 et seq 42-127.1-2(7).

     SECTION 5. Sections 19-14-1, 19-14-9 and 19-14-10 of the General Laws in Chapter 19-

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14 entitled "Licensed Activities" are hereby amended to read as follows:

     19-14-1. Definitions. [Effective until July 1, 2015.] -- Unless otherwise specified, the

following terms shall have the following meanings throughout chapters 14, 14.1, 14.2, 14.3, 14.4,

14.6, 14.8 and 14.10 of this title:

      (1) "Check" means any check, draft, money order, personal money order, or other

instrument for the transmission or payment of money. For the purposes of check cashing,

travelers checks or foreign denomination instruments shall not be considered checks. "Check

cashing" means providing currency for checks;

      (2) "Deliver" means to deliver a check to the first person who, in payment for the check,

makes or purports to make a remittance of or against the face amount of the check, whether or not

the deliverer also charges a fee in addition to the face amount, and whether or not the deliverer

signs the check;

      (3) "Electronic money transfer" means receiving money for transmission within the

United States or to locations abroad by any means including, but not limited to, wire, facsimile, or

other electronic transfer system;

      (4) (i) "Lender" means any person who makes or funds a loan within this state with the

person's own funds, regardless of whether the person is the nominal mortgagee or creditor on the

instrument evidencing the loan;

      (ii) A loan is made or funded within this state if any of the following conditions exist:

      (A) The loan is secured by real property located in this state;

      (B) An application for a loan is taken by an employee, agent, or representative of the

lender within this state;

      (C) The loan closes within this state;

      (D) The loan solicitation is done by an individual with a physical presence in this state;

or

      (E) The lender maintains an office in this state.

      (iii) The term "lender" shall also include any person engaged in a transaction whereby

the person makes or funds a loan within this state using the proceeds of an advance under a line

of credit over which proceeds the person has dominion and control and for the repayment of

which the person is unconditionally liable. This transaction is not a table-funding transaction. A

person is deemed to have dominion and control over the proceeds of an advance under a line of

credit used to fund a loan regardless of whether:

      (A) The person may, contemporaneously with, or shortly following, the funding of the

loan, assign or deliver to the line of credit lender one or more loans funded by the proceeds of an

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advance to the person under the line of credit;

      (B) The proceeds of an advance are delivered directly to the settlement agent by the line

of credit lender, unless the settlement agent is the agent of the line of credit lender;

      (C) One or more loans funded by the proceeds of an advance under the line of credit is

purchased by the line of credit lender; or

      (D) Under the circumstances as set forth in regulations adopted by the director, or the

director's designee, pursuant to this chapter;

      (5) "Licensee" means any person licensed under this chapter;

      (6) "Loan" means any advance of money or credit including, but not limited to:

      (i) Loans secured by mortgages;

      (ii) Insurance premium finance agreements;

      (iii) The purchase or acquisition of retail installment contracts or advances to the holders

of those contracts;

      (iv) Educational loans;

      (v) Any other advance of money; or

      (vi) Any transaction such as those commonly known as "payday loans," "payday

advances," or "deferred-presentment loans," in which a cash advance is made to a customer in

exchange for the customer's personal check, or in exchange for the customer's authorization to

debit the customer's deposit account, and where the parties agree either, that the check will not be

cashed or deposited, or that customer's deposit account will not be debited, until a designated

future date.

      (7) "Loan broker" means any person who, for compensation or gain, or in the expectation

of compensation or gain, either directly or indirectly, solicits, processes, negotiates, places or sells

a loan within this state for others in the primary market, or offers to do so. A loan broker shall

also mean any person who is the nominal mortgagee or creditor in a table-funding transaction. A

loan is brokered within this state if any of the following conditions exist:

      (i) The loan is secured by real property located in this state;

      (ii) An application for a loan is taken or received by an employee, agent, or

representative of the loan broker within this state;

      (iii) The loan closes within this state;

      (iv) The loan solicitation is done by an individual with a physical presence in this state;

or

      (v) The loan broker maintains an office in this state.

      (8) "Personal money order" means any instrument for the transmission or payment of

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money in relation to which the purchaser or remitter appoints, or purports to appoint, the seller as

his or her agent for the receipt, transmission, or handling of money, whether the instrument is

signed by the seller, or by the purchaser, or remitter, or some other person;

      (9) "Primary market" means the market in which loans are made to borrowers by lenders,

whether or not through a loan broker or other conduit;

      (10) "Principal owner" means any person who owns, controls, votes, or has a beneficial

interest in, directly or indirectly, ten percent (10%) or more of the outstanding capital stock

and/or equity interest of a licensee;

      (11) "Sell" means to sell, to issue, or to deliver a check;

      (12) "Small loan" means a loan of less than five thousand dollars ($5,000), not secured

by real estate, made pursuant to the provisions of chapter 14.2 of this title;

      (13) "Small loan lender" means a lender engaged in the business of making small loans

within this state;

      (14) "Table-funding transaction" means a transaction in which there is a

contemporaneous advance of funds by a lender and an assignment by the mortgagee or creditor of

the loan to the lender;

      (15) "Check casher" means a person or entity that, for compensation, engages, in whole

or in part, in the business of cashing checks;

      (16) "Deferred-deposit transaction" means any transaction, such as those commonly

known as "payday loans," "payday advances," or "deferred-presentment loans," in which a cash

advance is made to a customer in exchange for the customer's personal check or in exchange for

the customer's authorization to debit the customer's deposit account and where the parties agree

either that the check will not be cashed or deposited, or that the customer's deposit account will

not be debited until a designated future date;

      (17) "Insurance premium finance agreement" means an agreement by which an insured,

or prospective insured, promises to pay to an insurance premium finance company the amount

advanced, or to be advanced, under the agreement to an insurer or to an insurance producer, in

payment of a premium or premiums on an insurance contract or contracts, together with interest

and a service charge, as authorized and limited by this title;

      (18) "Insurance premium finance company" means a person engaged in the business of

making insurance premium finance agreements or acquiring insurance premium finance

agreements from other insurance premium finance companies;

      (19) "Simple interest" means interest computed on the principal balance outstanding

immediately prior to a payment for the actual number of days between payments made on a loan

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over the life of a loan;

      (20) "Nonprofit organization" means a corporation qualifying as a 26 U.S.C. § 501(c)(3)

nonprofit organization, in the operation of which no member, director, officer, partner, employee,

agent, or other affiliated person profits financially other than receiving reasonable salaries if

applicable;

      (21) "Mortgage loan originator" has the same meaning set forth in § 19-14.10-3(6);

      (22) "Mortgage loan" means a loan secured in whole or in part by real property located

in this state;

      (23) "Loan solicitation" shall mean an effectuation, procurement, delivery and offer, and

advertisement of a loan. Loan solicitation also includes providing or accepting loan applications

and assisting persons in completing loan applications and/or advising, conferring, or informing

anyone regarding the benefits, terms and/or conditions of a loan product or service. Loan

solicitation does not include loan processing or loan underwriting as defined in this section. Loan

solicitation does not include telemarketing which is defined for purposes of this section to mean

contacting a person by telephone with the intention of collecting such person's name, address, and

telephone number for the sole purpose of allowing a mortgage loan originator to fulfill a loan

inquiry;

      (24) "Processes" shall mean, with respect to a loan, any of a series of acts or functions,

including the preparation of a loan application and supporting documents, performed by a person

that leads to, or results in, the acceptance, approval, denial, and/or withdrawal of a loan

application, including, without limitation, the rendering of services including loan underwriting,

obtaining verifications, credit reports or appraisals, communicating with the applicant and/or the

lender or loan broker, and/or other loan processing and origination services for consideration by a

lender or loan broker. Loan processing does not include the following:

      (i) Providing loan closing services;

      (ii) Rendering of credit reports by an authorized credit reporting agency; and

      (iii) Rendering of appraisal services.

      (25) "Loan underwriting" shall mean a loan process that involves the analysis of risk

with respect to the decision whether to make a loan to a loan applicant based on credit,

employment, assets, and other factors, including evaluating a loan applicant against a lender's

various lending criteria for creditworthiness, making a determination for the lender as to whether

the applicant meets the lender's pre-established credit standards, and/or making a

recommendation regarding loan approval;

      (26) "Negotiates" shall mean, with respect to a loan, to confer directly with, or offer

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advice directly to, a loan applicant or prospective loan applicant for a loan product or service

concerning any of the substantive benefits, terms, or conditions of the loan product or service;

      (27) "Natural person employee" shall mean any natural person performing services as a

bona fide employee for a person licensed under the provisions of § 19-14-1, et. seq., in return for

a salary, wage, or other consideration, where such salary, wage, or consideration is reported by

the licensee on a federal form W-2 payroll record. The term does not include any natural person

or business entity performing services for a person licensed under the provisions of Rhode Island

general laws in return for a salary, wage, or other consideration, where such salary, wage, or

consideration is reported by the licensee on a federal form 1099;

      (28) "Bona fide employee" shall mean an employee of a licensee who works under the

oversight and supervision of the licensee;

      (29) "Oversight and supervision of the licensee" shall mean that the licensee provides

training to the employee, sets the employee's hours of work, and provides the employee with the

equipment and physical premises required to perform the employee's duties;

      (30) "Operating subsidiary" shall mean a majority-owned subsidiary of a financial

institution or banking institution that engages only in activities permitted by the parent financial

institution or banking institution;

      (31) "Provisional employee" means a natural person who, pursuant to a written

agreement between the natural person and a wholly owned subsidiary of a financial holding

company, as defined in The Bank Holding Company Act of 1956, as amended, 12 U.S.C. §1841

et seq, a bank holding company, savings bank holding company, or thrift holding company, is an

exclusive agent for the subsidiary with respect to mortgage loan originations, and the subsidiary:

(a) holds a valid loan broker's license and (b) enters into a written agreement with the director, or

the director's designee, to include:

      (i) An "undertaking of accountability", in a form prescribed by the director, or the

director's designee, for all of the subsidiary's exclusive agents to include full and direct financial

and regulatory responsibility for the mortgage loan originator activities of each exclusive agent as

if said exclusive agent was an employee of the subsidiary;

      (ii) A business plan, to be approved by the director, or the director's designee, for the

education of the exclusive agents, the handling of consumer complaints related to the exclusive

agents, and the supervision of the mortgage loan origination activities of the exclusive agents; and

      (iii) A restriction of the exclusive agents' mortgage loan originators' activities to loans to

be made only by the subsidiary's affiliated bank.

      (32) "Multi-state licensing system" means a system involving one or more states, the

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District of Columbia, or the Commonwealth of Puerto Rico established to facilitate the sharing of

regulatory information and the licensing, application, reporting, and payment processes, by

electronic or other means, for mortgage lenders and loan brokers and other licensees required to

be licensed under this chapter;

      (33) "Negative equity" means the difference between the value of an asset and the

outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the former

amount;

      (34) "Loan closing services" means providing title services, including title searches, title

examinations, abstract preparation, insurability determinations, and the issuance of title

commitments and title insurance policies, conducting loan closings, and preparation of loan

closing documents when performed by, or under the supervision of, a licensed attorney, licensed

title agency, or licensed title insurance company; and

      (35) "Writing" means hard copy writing or electronic writing that meets the requirements

of § 42-127.1-1 et seq 42-127.1-2(7).

     19-14-1. Definitions. [Effective July 1, 2015.] -- Unless otherwise specified, the

following terms shall have the following meanings throughout chapters 14, 14.1, 14.2, 14.3, 14.4,

14.6, 14.8, 14.10, and 14.11 of this title:

      (1) "Check" means any check, draft, money order, personal money order, or other

instrument for the transmission or payment of money. For the purposes of check cashing,

travelers checks or foreign denomination instruments shall not be considered checks. "Check

cashing" means providing currency for checks;

      (2) "Deliver" means to deliver a check to the first person who, in payment for the check,

makes, or purports to make, a remittance of, or against, the face amount of the check, whether or

not the deliverer also charges a fee in addition to the face amount and whether or not the deliverer

signs the check;

      (3) "Electronic money transfer" means receiving money for transmission within the

United States or to locations abroad by any means including, but not limited to, wire, facsimile, or

other electronic transfer system;

      (4) (i) "Lender" means any person who makes or funds a loan within this state with the

person's own funds, regardless of whether the person is the nominal mortgagee or creditor on the

instrument evidencing the loan;

      (ii) A loan is made or funded within this state if any of the following conditions exist:

      (A) The loan is secured by real property located in this state;

      (B) An application for a loan is taken by an employee, agent, or representative of the

LC002593/SUB A/2 - Page 13 of 85

lender within this state;

      (C) The loan closes within this state;

      (D) The loan solicitation is done by an individual with a physical presence in this state;

or

      (E) The lender maintains an office in this state.

      (iii) The term "lender" shall also include any person engaged in a transaction whereby

the person makes or funds a loan within this state using the proceeds of an advance under a line

of credit over which proceeds the person has dominion and control and for the repayment of

which the person is unconditionally liable. This transaction is not a table-funding transaction. A

person is deemed to have dominion and control over the proceeds of an advance under a line of

credit used to fund a loan regardless of whether:

      (A) The person may, contemporaneously with, or shortly following, the funding of the

loan, assign or deliver to the line of credit lender one or more loans funded by the proceeds of an

advance to the person under the line of credit;

      (B) The proceeds of an advance are delivered directly to the settlement agent by the line-

of-credit lender, unless the settlement agent is the agent of the line-of-credit lender;

      (C) One or more loans funded by the proceeds of an advance under the line-of-credit is

purchased by the line of credit lender; or

      (D) Under the circumstances, as set forth in regulations adopted by the director, or the

director's designee, pursuant to this chapter;

      (5) "Licensee" means any person licensed under this chapter;

      (6) "Loan" means any advance of money or credit including, but not limited to:

      (i) Loans secured by mortgages;

      (ii) Insurance premium finance agreements;

      (iii) The purchase or acquisition of retail installment contracts or advances to the holders

of those contracts;

      (iv) Educational loans;

      (v) Any other advance of money; or

      (vi) Any transaction such as those commonly known as "payday loans," "payday

advances," or "deferred-presentment loans," in which a cash advance is made to a customer in

exchange for the customer's personal check, or in exchange for the customer's authorization to

debit the customer's deposit account, and where the parties agree either, that the check will not be

cashed or deposited, or that customer's deposit account will not be debited, until a designated

future date.

LC002593/SUB A/2 - Page 14 of 85

      (7) "Loan broker" means any person who, for compensation or gain, or in the expectation

of compensation or gain, either directly or indirectly, solicits, processes, negotiates, places, or

sells a loan within this state for others in the primary market, or offers to do so. A loan broker

shall also mean any person who is the nominal mortgagee or creditor in a table-funding

transaction. A loan is brokered within this state if any of the following conditions exist:

      (i) The loan is secured by real property located in this state;

      (ii) An application for a loan is taken or received by an employee, agent, or

representative of the loan broker within this state;

      (iii) The loan closes within this state;

      (iv) The loan solicitation is done by an individual with a physical presence in this state;

or

      (v) The loan broker maintains an office in this state.

      (8) "Personal money order" means any instrument for the transmission or payment of

money in relation to which the purchaser or remitter appoints, or purports to appoint, the seller as

his or her agent for the receipt, transmission, or handling of money, whether the instrument is

signed by the seller, or by the purchaser, or remitter, or some other person;

      (9) "Primary market" means the market in which loans are made to borrowers by lenders,

whether or not through a loan broker or other conduit;

      (10) "Principal owner" means any person who owns, controls, votes, or has a beneficial

interest in, directly or indirectly, ten percent (10%) or more of the outstanding capital stock

and/or equity interest of a licensee;

      (11) "Sell" means to sell, to issue, or to deliver a check;

      (12) "Small loan" means a loan of less than five thousand dollars ($5,000), not secured

by real estate, made pursuant to the provisions of chapter 14.2 of this title;

      (13) "Small-loan lender" means a lender engaged in the business of making small loans

within this state;

      (14) "Table-funding transaction" means a transaction in which there is a

contemporaneous advance of funds by a lender and an assignment by the mortgagee or creditor of

the loan to the lender;

      (15) "Check casher" means a person or entity that, for compensation, engages, in whole

or in part, in the business of cashing checks;

      (16) "Deferred-deposit transaction" means any transaction, such as those commonly

known as "payday loans," "payday advances," or "deferred-presentment loans," in which a cash

advance is made to a customer in exchange for the customer's personal check or in exchange for

LC002593/SUB A/2 - Page 15 of 85

the customer's authorization to debit the customer's deposit account and where the parties agree

either that the check will not be cashed or deposited, or that the customer's deposit account will

not be debited until a designated future date;

      (17) "Insurance premium finance agreement" means an agreement by which an insured,

or prospective insured, promises to pay to an insurance premium finance company the amount

advanced, or to be advanced, under the agreement to an insurer or to an insurance producer, in

payment of a premium, or premiums, on an insurance contract, or contracts, together with interest

and a service charge, as authorized and limited by this title;

      (18) "Insurance premium finance company" means a person engaged in the business of

making insurance premium finance agreements or acquiring insurance premium finance

agreements from other insurance premium finance companies;

      (19) "Simple interest" means interest computed on the principal balance outstanding

immediately prior to a payment for the actual number of days between payments made on a loan

over the life of a loan;

      (20) "Nonprofit organization" means a corporation qualifying as a 26 U.S.C. § 501(c)(3)

nonprofit organization, in the operation of which no member, director, officer, partner, employee,

agent, or other affiliated person profits financially other than receiving reasonable salaries if

applicable;

      (21) "Mortgage loan originator" has the same meaning set forth in § 19-14.10-3(6);

      (22) "Mortgage loan" means a loan secured in whole, or in part, by real property located

in this state;

      (23) "Loan solicitation" shall mean an effectuation, procurement, delivery and offer, and

advertisement of a loan. Loan solicitation also includes providing or accepting loan applications

and assisting persons in completing loan applications and/or advising, conferring, or informing

anyone regarding the benefits, terms and/or conditions of a loan product or service. Loan

solicitation does not include loan processing or loan underwriting as defined in this section. Loan

solicitation does not include telemarketing that is defined, for purposes of this section, to mean

contacting a person by telephone with the intention of collecting such person's name, address, and

telephone number for the sole purpose of allowing a mortgage loan originator to fulfill a loan

inquiry;

      (24) "Processes" shall mean, with respect to a loan, any of a series of acts or functions,

including the preparation of a loan application and supporting documents, performed by a person

that leads to, or results in, the acceptance, approval, denial, and/or withdrawal of a loan

application, including, without limitation, the rendering of services, including loan underwriting,

LC002593/SUB A/2 - Page 16 of 85

obtaining verifications, credit reports or appraisals, communicating with the applicant and/or the

lender or loan broker, and/or other loan processing and origination services, for consideration by

a lender or loan broker. Loan processing does not include the following:

      (i) Providing loan closing services;

      (ii) Rendering of credit reports by an authorized credit reporting agency; and

      (iii) Rendering of appraisal services.

      (25) "Loan underwriting" shall mean a loan process that involves the analysis of risk

with respect to the decision whether to make a loan to a loan applicant based on credit,

employment, assets, and other factors, including evaluating a loan applicant against a lender's

various lending criteria for creditworthiness, making a determination for the lender as to whether

the applicant meets the lender's pre-established credit standards, and/or making a

recommendation regarding loan approval;

      (26) "Negotiates" shall mean, with respect to a loan, to confer directly with, or offer

advice directly to, a loan applicant or prospective loan applicant for a loan product or service

concerning any of the substantive benefits, terms, or conditions of the loan product or service;

      (27) "Natural person employee" shall mean any natural person performing services as a

bona-fide employee for a person licensed under § 19-14-1, et. seq., in return for a salary, wage, or

other consideration, where such salary, wage, or consideration is reported by the licensee on a

federal form W-2 payroll record. The term does not include any natural person or business entity

performing services for a person licensed under the provisions of Rhode Island general laws in

return for a salary, wage, or other consideration, where such salary, wage, or consideration is

reported by the licensee on a federal form 1099;

      (28) "Bona fide employee" shall mean an employee of a licensee who works under the

oversight and supervision of the licensee;

      (29) "Oversight and supervision of the licensee" shall mean that the licensee provides

training to the employee, sets the employee's hours of work, and provides the employee with the

equipment and physical premises required to perform the employee's duties;

      (30) "Operating subsidiary" shall mean a majority-owned subsidiary of a financial

institution or banking institution that engages only in activities permitted by the parent financial

institution or banking institution;

      (31) "Provisional employee" means a natural person who, pursuant to a written

agreement between the natural person and a wholly owned subsidiary of a financial holding

company, as defined in The Bank Holding Company Act of 1956, as amended, 12 U.S.C. § 1841

et seq., a bank-holding company, savings-bank-holding company, or thrift holding company, is an

LC002593/SUB A/2 - Page 17 of 85

exclusive agent for the subsidiary with respect to mortgage loan originations, and the subsidiary:

(a) Holds a valid loan broker's license; and (b) Enters into a written agreement with the director,

or the director's designee, to include:

      (i) An "undertaking of accountability", in a form prescribed by the director, or the

director's designee, for all of the subsidiary's exclusive agents to include full-and-direct financial

and regulatory responsibility for the mortgage loan originator activities of each exclusive agent as

if said exclusive agent were an employee of the subsidiary;

      (ii) A business plan, to be approved by the director, or the director's designee, for the

education of the exclusive agents, the handling of consumer complaints related to the exclusive

agents, and the supervision of the mortgage loan origination activities of the exclusive agents; and

      (iii) A restriction of the exclusive agents' mortgage loan originators' activities to loans to

be made only by the subsidiary's affiliated bank.

      (32) "Multi-state licensing system" means a system involving one or more states, the

District of Columbia, or the Commonwealth of Puerto Rico established to facilitate the sharing of

regulatory information and the licensing, application, reporting, and payment processes, by

electronic or other means, for mortgage lenders and loan brokers and other licensees required to

be licensed under this chapter;

      (33) "Negative equity" means the difference between the value of an asset and the

outstanding portion of the loan taken out to pay for the asset, when the latter exceeds the former

amount;

      (34) "Loan-closing services" means providing title services, including title searches, title

examinations, abstract preparation, insurability determinations, and the issuance of title

commitments and title insurance policies, conducting loan closings, and preparation of loan

closing documents when performed by, or under the supervision of, a licensed attorney, licensed

title agency, or licensed title insurance company;

      (35) "Servicing" means receiving a scheduled periodic payment from a borrower

pursuant to the terms of a loan, including amounts for escrow accounts, and making the payments

to the owner of the loan or other third party of principal and interest and other payments with

respect to the amounts received from the borrower as may be required pursuant to the terms of the

servicing loan documents or servicing contract. In the case of a home equity conversion mortgage

or a reverse mortgage, servicing includes making payment to the borrower;

      (36) "Third-party loan servicer" means a person who, directly or indirectly, engages in

the business of servicing a loan made to a resident of Rhode Island, or a loan secured by

residential real estate located in Rhode Island, for a personal, family, or household purpose, owed

LC002593/SUB A/2 - Page 18 of 85

or due or asserted to be owed or due another; and

      (37) "Writing" means hard-copy writing or electronic writing that meets the

requirements of § 42-127.1-1 et seq 42-127.1-2(7).

     19-14-9. Contents of license. -- The license or branch certificate shall contain any

information that the director, or the director's designee, shall require, including the type of

activity authorized. In his or her discretion, the director, or the director's designee, may substitute

an electronic record as the confirmation of a license status in substitution for a license or branch

certificate. When dealing with an applicant, or potential applicant, for a mortgage loan or when

dealing with any person providing settlement services (as defined in the Real Estate Settlement

Procedures Act, as amended, 12 U.S.C. § 2601 et seq., or the regulations promulgated thereunder

from time to time), a mortgage loan originator shall disclose the mortgage loan originator's

nationwide mortgage licensing system unique identification number upon request to the applicant,

or potential applicant, and the fact that the mortgage loan originator is licensed by this state.

     19-14-10. Attorney for service of process. -- (a) Every licensee shall appoint, and

thereafter maintain, in this state a resident attorney with authority to accept process for the

licensee in this state, including the process of garnishment.

      (1) The appointment shall be filed with the director, or the director's designee, in

whatever format he or she directs. The power of attorney shall provide all contact information,

including the business address, including street and number, if any, of the resident attorney.

Thereafter, if the resident attorney changes his or her business address or other contact

information, he or she shall, within ten (10) days after any change, file in the office of the

director, or the director's designee, notice of the change setting forth the attorney's current

business address or other contact information.

      (2) If the resident attorney dies, resigns, or leaves the state, the licensee shall make a new

appointment and file the power of attorney in the office of the director, or the director's designee.

The power of attorney shall not be revoked until this power of attorney shall have been given to

some other competent person resident in this state and filed with the director, or the director's

designee.

      (3) Service of process upon the resident attorney shall be deemed sufficient service upon

the licensee.

      (4) Any licensee who fails to appoint a resident attorney and file the power of attorney in

the office of the director, or the director's designee, as above provided for, or fails to replace a

resident attorney for a period of thirty (30) days from vacancy, shall be liable for a penalty not

exceeding five hundred dollars ($500) and shall be subject to suspension or revocation of the

LC002593/SUB A/2 - Page 19 of 85

license.

      (5) Upon the filing of any power of attorney required by this section, a fee of twenty-five

dollars ($25.00) shall be paid to the director for the use of the state.

      (6) Any licensee that is a corporation and complies with the provisions of chapter 1.2 of

title 7 is exempt from the power of attorney filing requirements of this section. Any licensee that

is a limited partnership or limited liability company and complies with the provisions of chapters

13 and 16 of title 7 is exempt from the power of attorney requirements of this section.

      (b) Any process, including the process of garnishment, may be served upon the director,

or the director's designee, as agent of the licensee in the event that no resident attorney can be

found upon whom service can be made, or in the event that the licensee has failed to designate a

resident attorney as required, and process may be served by leaving a copy of the process with a

fee of twenty-five dollars ($25.00) which shall be included in the taxable costs of the suit, action,

or proceeding, in the hands of the director, or the director's designee. This manner of service upon

the licensee shall be sufficient, provided that notice of service and a copy of the process shall be

immediately sent by certified mail by the plaintiff, or the plaintiff's attorney of record, to the

licensee at the latest address filed with the director, or the director's designee. If the licensee has

not filed his or her address pursuant to this chapter, notice of service shall be given in any manner

that the court in which the action is pending may order as affording the licensee reasonable

opportunity to defend the action or to learn of the garnishment. Nothing contained in this section

shall limit or affect the right to serve process upon a licensee in any other manner now or

hereafter permitted by law.

     SECTION 6. Section 19-28.1-14 of the General Laws in Chapter 19-28.1 entitled

"Franchise Investment Act" is hereby amended to read as follows:

     19-28.1-14. Jurisdiction and venue. -- A provision is in a franchise agreement

restricting jurisdiction or venue to a forum outside this state or requiring the application of the

laws of another state is void with respect to a claim otherwise enforceable under this act.

     SECTION 7. Section 21-27-10 of the General Laws in Chapter 21-27 entitled "Sanitation

in Food Establishments" is hereby amended to read as follows:

     21-27-10. Registration of food businesses. -- (a) No person shall operate a food business

as defined in § 21-27-1(8) unless he or she annually registers the business with the state director

of health; provided, that food businesses conducted by nonprofit organizations, hospitals, public

institutions, farmers markets, roadside farmstands farm stands, or any municipality shall be

exempt from payment of any required fee.

      (b) In order to set the registration renewal dates so that all activities for each

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establishment can be combined on one registration instead of on several registrations, the

registration renewal date shall be set by the department of health. The registration period shall be

for twelve (12) months commencing on the registration renewal date. Any renewal registration

fee shall be at the full, annual rate regardless of the date of renewal. Any fee for a first-time

application shall have the registration rate fee pro-rated based upon the date of issuance of

registration. If the registration renewal date is changed, the department may make an adjustment

to the fees of registered establishments, not to exceed the annual registration fee, in order to

implement the changes in registration renewal date. Registrations issued under this chapter may

be suspended or revoked for cause. Any registration or license shall be posted in a place

accessible and prominently visible to an agent of the director.

      (c) Registration with the director of health shall be based upon satisfactory compliance

with all laws and regulations of the director applicable to the food business for which registration

is required.

      (d) The director of health is authorized to adopt regulations necessary for the

implementation of this chapter.

      (e) Classification for registration shall be as follows:

      (1) In-state and out-of-state food processors that sell food in Rhode Island (Wholesale)

      (2) Food processors (Retail)

      (3) Food service establishments:

      (i) 50 seats or less

      (ii) More than 50 seats

      (iii) Mobile food service units

      (iv) Industrial caterer or food vending machine commissary

      (v) Cultural heritage educational facility

      (4) Vending machine sites or location:

      (i) Three (3) or less machines

      (ii) Four (4) to ten (10) machines

      (iii) Eleven (11) or more machines

      (5) Retail markets:

      (i) 1 to 2 cash registers

      (ii) 3 to 5 cash registers

      (iii) 6 or more cash registers

      (6) Retail food peddler (meat, seafood, dairy, and frozen dessert products)

      (7) Food warehouses

LC002593/SUB A/2 - Page 21 of 85

      (f) In no instance, where an individual food business has more than one activity eligible

under this chapter for state registration within a single location, shall the business be required to

pay more than a single fee for the one highest classified activity listed in subsection (e) of this

section; provided, that, where several separate but identically classified activities are located

within the same building and under the management and jurisdiction of one person, one fee shall

be required. In each of the instances in this subsection, each activity shall be separately registered.

      (g) Fees for registration of the above classifications shall be as set forth in § 23-1-54.

     SECTION 8. Section 23-4.1-2 of the General Laws in Chapter 23-4.1 entitled

"Emergency Medical Transportation Services" is hereby amended to read as follows:

     23-4.1-2. Ambulance service coordinating advisory board. -- (a) The ambulance

service coordinating advisory board is hereby created and shall consisting consist of twenty-five

(25) members appointed as set out in this section. The governor shall appoint the members of the

board as follows: (1) Two two (2) from the department of health; (2) seven (7) practicing,

licensed emergency medical technicians as follows:, three (3) from a full-time paid department,

who shall be recommended from the Rhode Island State Association of Fire Fighters, IAFF, AFL-

CIO, and two (2) who are active E.M.S. administrators, one recommended from by the Rhode

Island Association of Fire Chiefs, and one recommended from by the Rhode Island State

Firemen's League from a volunteer fire department; one recommended by the senate president;

and one recommended by the speaker of the house; (3) one from the R.I. Hospital Association;

(4) one from the R.I. Medical Society; (5) one from the R.I. chapter of the American College of

Surgeons, committee on trauma; (6) one from the R.I. chapter of the American College of

Emergency Physicians; (7) one from the Rhode Island chapter of the American Academy of

Pediatrics; (8) two (2) from a professional ambulance service; (9) two (2) from the general public;

(10) two (2) from Providence county who are active members of a public ambulance service or

fire department rescue squad unit, one from a full-time paid department and one from a volunteer

department; (11) four (4), one each from the counties of Kent, Newport, Bristol and Washington,

who shall be members of a public ambulance service or a fire department rescue squad; and (12)

one certified, emergency nurse in current practice who is a member of the Emergency Room

Nurses Association. The members of the board shall be chosen and shall hold office for five (5)

years, and until their respective successors are appointed and qualified. In the month of February

in each year, the governor shall appoint successors to the members of the board whose terms shall

expire in that year, to hold office until the first day of March in the fifth (5th) year after their

appointment and until their respective successors are appointed and qualified. Any vacancy that

may occur in the board shall be filled by appointment for the remainder of the unexpired term in

LC002593/SUB A/2 - Page 22 of 85

the same manner as the original appointment. Each member may designate a representative to

attend in his or her absence by notifying the chair prior to that meeting of the board. The board

shall meet at least quarterly and to elect its officers annually.

      (b) The division of emergency medical services of the department of health shall provide

staff support to the board.

     SECTION 9. The title of Chapter 23-6.4 of the General Laws entitled "Life-Saving

Allergy Medication - Stock Supply of Epineprhine Auto-injectors - Emergency Administration"

is hereby amended to read as follows:

CHAPTER 23-6.4

Life-Saving Allergy Medication - Stock Supply of Epineprhine Auto-injectors - Emergency

Administration

CHAPTER 23-6.4

LIFE-SAVING ALLERGY MEDICATION - STOCK SUPPLY OF EPINEPHRINE AUTO-

INJECTORS - EMERGENCY ADMINISTRATION

     SECTION 10. Sections 23-6.4-3, 23-6.4-4, 23-6.4-5, 23-6.4-6 and 23-6.4-7 of the

General Laws in Chapter 23-6.4 entitled "Life-Saving Allergy Medication - Stock Supply of

Epineprhine Auto-injectors - Emergency Administration" are hereby amended to read as follows:

     23-6.4-3. Designated entities permitted to maintain supply. -- An authorized entity

may acquire and stock a supply of epinephrine auto-injectors pursuant to a prescription issued in

accordance with this chapter. Such epinephrine auto-injectors shall be stored in a location readily

accessible in an emergency and in accordance with the epinephrine auto-injector's instructions for

use and any additional requirements that may be established by the department of health. An

authorized entity shall designate employees or agents who have completed the training required

by § 23-6.5-6 23-6.4-6 to be responsible for the storage, maintenance, and general oversight of

epinephrine auto-injectors acquired by the authorized entity.

     23-6.4-4. Use of epinephrine auto-injectors. -- An employee or agent of an authorized

entity, or other individual, who has completed the training required by § 23-6.5-6 23-6.4-6, may,

on the premises of or in connection with the authorized entity, use epinephrine auto-injectors

prescribed pursuant to § 23-6.4-2 to:

      (1) Provide an epinephrine auto-injector to any individual who, the employee, agent, or

other individual, believes in good faith is experiencing anaphylaxis, for immediate self-

administration, regardless of whether the individual has a prescription for an epinephrine auto-

injector or has previously been diagnosed with an allergy.

      (2) Administer an epinephrine auto-injector to any individual who, the employee, agent,

LC002593/SUB A/2 - Page 23 of 85

or other individual, believes in good faith is experiencing anaphylaxis, regardless of whether the

individual has a prescription for an epinephrine auto-injector or has previously been diagnosed

with an allergy.

     23-6.4-5. Expanded availability. -- An authorized entity that acquires a stock supply of

epinephrine auto-injectors pursuant to a prescription issued in accordance with this chapter, may

make such epinephrine auto-injectors available to individuals other than those trained individuals

described in § 23-6.5-6 23-6.4-6, and such individuals may administer such epinephrine auto-

injector to any individual believed in good faith to be experiencing anaphylaxis, if the

epinephrine auto-injectors are stored in a locked, secure container and are made available only

upon remote authorization by an authorized health care provider after consultation with the

authorized health care provider by audio, televideo, or other similar means of electronic

communication. Consultation with an authorized health care provider for this purpose shall not be

considered the practice of telemedicine or otherwise be construed as violating any law or rule

regulating the authorized health care provider's professional practice.

     23-6.4-6. Training. -- An employee, agent, or other individual described in § 23-6.5-4

23-6.4-4 must complete an anaphylaxis training program prior to providing or administering an

epinephrine auto-injector made available by an authorized entity. Such training shall be

conducted by a nationally recognized organization experienced in training laypersons in

emergency health treatment, or an entity or individual approved by the department of health.

Training may be conducted online or in person and, at a minimum, shall cover:

      (1) Techniques on how to recognize symptoms of severe allergic reactions, including

anaphylaxis;

      (2) Standards and procedures for the storage and administration of an epinephrine auto-

injector; and

      (3) Emergency follow-up procedures.

      The entity that conducts the training shall issue a certificate, on a form developed or

approved by the department of health, to each person who successfully completes the anaphylaxis

training program.

     23-6.4-7. Good Samaritan protections. -- An authorized entity that possesses and makes

available epinephrine auto-injectors and its employees, agents, and other trained individuals; a

person who uses an epinephrine auto-injector made available pursuant to § 23-6.5-5 23-6.4-5; an

authorized health care provider who prescribes epinephrine auto-injectors to an authorized entity;

and an individual or entity that conducts the training described in § 23-6.5-6 23-6.4-6, shall not be

liable for any civil damages that result from the administration or self-administration of an

LC002593/SUB A/2 - Page 24 of 85

epinephrine auto-injector; the failure to administer an epinephrine auto-injector; or any other act

or omission taken pursuant to this chapter; provided, however, this immunity does not apply to

acts or omissions constituting gross negligence or willful or wanton conduct. The administration

of an epinephrine auto-injector in accordance with this chapter is not the practice of medicine.

This section does not eliminate, limit, or reduce any other immunity or defense that may be

available under state law. An entity located in this state shall not be liable for any injuries or

related damages that result from the provision or administration of an epinephrine auto-injector

by its employees or agents outside of this state if the entity or its employee or agent:

      (1) Would not have been liable for such injuries or related damages had the provision or

administration occurred within this state; or

      (2) Are not liable for such injuries or related damages under the law of the state in which

such provision or administration occurred.

     SECTION 11. Section 28-9.1-6 of the General Laws in Chapter 28-9.1 entitled

"Firefighters' Arbitration" is hereby amended to read as follows:

     28-9.1-6. Obligation to bargain. -- It shall be the obligation of the city or town, acting

through its corporate authorities, to meet and confer in good faith with the representative or

representatives of the bargaining agent within ten (10) days after receipt of written notice from

the bargaining agent of the request for a meeting for collective bargaining purposes. This

obligation shall include the duty to cause any agreement resulting from the negotiations to be

reduced to a written contract, provided that no contract shall exceed the term of one year, unless a

longer period is agreed upon in writing by the corporate authorities and the bargaining agents, but

in no event shall the contract exceed the term of three (3) years unless a budget commission or a

receiver has been appointed for a municipality or fire district pursuant to chapter 9 of title 45, or

if a municipality has a locally administered pension plan in "critical status" and is required to

submit a funding improvement plan pursuant to § 45-65-6(2),. in In either of which case, the

contract shall not exceed the term of five (5) years. An unfair labor practice charge may be

complained of by either the employer's representative or the bargaining agent to the state labor

relations board which shall deal with the complaint in the manner provided in chapter 7 of this

title.

     SECTION 12. Section 28-9.2-6 of the General Laws in Chapter 28-9.2 entitled

"Municipal Police Arbitration" is hereby amended to read as follows:

     28-9.2-6. Obligation to bargain. -- It shall be the obligation of the city or town, acting

through its corporate authorities, to meet and confer in good faith with the designated

representative or representatives of the bargaining agent, including any legal counsel selected by

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the bargaining agent, within ten (10) days after receipt of written notice from the bargaining agent

of the request for a meeting for collective bargaining purposes. This obligation includes the duty

to cause any agreement resulting from the negotiations to be reduced to a written contract,

provided that no contract shall exceed the term of one year, unless a longer period is agreed upon

in writing by the corporate authorities and the bargaining agent, but in no event shall the contract

exceed the term of three (3) years unless a budget commission or a receiver has been appointed

for a municipality pursuant to chapter 9 of title 45 or if a municipality has a locally administered

pension plan in "critical status" and is required to submit a funding improvement plan pursuant to

§ 45-65-6(2),. in In either of which case, the contract shall not exceed the term of five (5) years.

An unfair labor charge may be complained of by either the employer's representative or the

bargaining agent to the state labor relations board which shall deal with the complaint in the

manner provided in chapter 7 of this title.

     SECTION 13. Section 28-9.3-4 of the General Laws in Chapter 28-9.3 entitled "Certified

School Teachers' Arbitration" is hereby amended to read as follows:

     28-9.3-4. Obligation to bargain. -- It shall be the obligation of the school committee to

meet and confer in good faith with the representative or representatives of the negotiating or

bargaining agent within ten (10) days after receipt of written notice from the agent of the request

for a meeting for negotiating or collective bargaining purposes. This obligation includes the duty

to cause any agreement resulting from negotiations or bargaining to be reduced to a written

contract; provided, that no contract shall exceed the term of three (3) years unless a budget

commission or a receiver has been appointed for a municipality pursuant to chapter 9 of title 45

or if a municipality has a locally administered pension plan in "critical status" and is required to

submit a funding improvement plan pursuant to § 45-65-6(2),. in In either case, the contract shall

not exceed the term of five (5) years. An unfair labor practice charge may be complained of by

either the bargaining agent or the school committee to the state labor relations board which shall

deal with the complaint in the manner provided in chapter 7 of this title.

     SECTION 14. Section 28-9.4-5 of the General Laws in Chapter 28-9.4 entitled

"Municipal Employees' Arbitration" is hereby amended to read as follows:

     28-9.4-5. Obligation to bargain. -- It shall be the obligation of the municipal employer

to meet and confer in good faith with the representative or representatives of the negotiating or

bargaining agent within ten (10) days after receipt of written notice from the agent of the request

for a meeting for negotiating or collective bargaining purposes. This obligation includes the duty

to cause any agreement resulting from negotiation or bargaining to be reduced to a written

contract; provided, that no contract shall exceed the term of three (3) years unless a budget

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commission or a receiver has been appointed for a municipality pursuant to chapter 9 of title 45

or if a municipality has a locally administered pension plan in "critical status" and is required to

submit a funding improvement plan pursuant to § 45-65-6(2),. in In either of which case, the

contract shall not exceed the term of five (5) years. Failure to negotiate or bargain in good faith

may be complained of by either the negotiating or bargaining agent or the municipal employer to

the state labor relations board, which shall deal with the complaint in the manner provided in

chapter 7 of this title. An unfair labor practice charge may be complained of by either the

bargaining agent or employer's representative to the state labor relations board, which shall deal

with the complaint in the manner provided in chapter 7 of this title.

     SECTION 15. Section 28-29-30 of the General Laws in Chapter 28-29 entitled "Workers'

Compensation - General Provisions" is hereby amended to read as follows:

     28-29-30. Advisory council. -- (a) There is created a workers' compensation advisory

council consisting of sixteen (16) members as follows:

      (1) The chief judge of the workers' compensation court and one additional judge of the

workers' compensation court and one member of the Bar who primarily represents injured

workers before the workers' compensation court, both to be selected by the chief judge;

      (2) The director of business regulation;

      (3) The director of administration;

      (4) Three (3) representatives from labor, appointed by the governor, one of whom shall

be an injured worker;

      (5) Three (3) representatives from business, appointed by the governor, one of whom

shall be a self-insured employer, and one of whom shall represent cities and towns;

      (6) One representative from the general public appointed by the governor;

      (7) The chairperson of the senate labor committee or his or her designee;

      (8) The chairperson of the house labor committee or his or her designee;

      (9) The director of labor and training; and

      (10) The chief executive officer of the workers' compensation insurance fund, or his or

her designee.

      (b) It shall be the duty of the council to advise the governor and the general assembly, on

an annual basis, on the administration of the workers' compensation system.

     SECTION 16. Section 28-33-8 of the General Laws in Chapter 28-33 entitled "Workers'

Compensation - Benefits" is hereby amended to read as follows:

     28-33-8. Employee's choice of physician, dentist, or hospital – Payment of charges –

Physician reporting schedule. -- (a)(1) An injured employee shall initially have freedom of

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choice to obtain health care, diagnosis, and treatment from any qualified health care provider

initially. The initial health care provider of record may, without prior approval, refer the injured

employee to any qualified specialist for independent consultation or assessment, or specified

treatment. If the insurer or self-insured employer has a preferred-provider network approved and

kept on record by the medical advisory board, any change by the employee from the initial health

care provider of record shall only be to a health care provider listed in the approved preferred-

provider network; provided, however, that any contract proffered or maintained that restricts or

limits the health care provider's ability to make referrals pursuant to the provisions of this section;

restricts the injured employee's first choice of health care provider; substitutes or overrules the

treatment protocols maintained by the medical advisory board; or attempts to evade or limit the

jurisdiction of the workers' compensation court shall be void as against public policy. If the

employee seeks to change to a health care provider not in the approved preferred-provider

network, the employee must obtain the approval of the insurer or self-insured employer. Nothing

contained in this section shall prevent the treatment, care, or rehabilitation of an employee by

more than one physician, dentist, or hospital. The employee's first visit to any facility providing

emergency care or to a physician or medical facility under contract with or agreement with the

employer or insurer to provide priority care, shall not constitute the employee's initial choice to

obtain health care, diagnosis, or treatment.

     (2) In addition to the treatment of qualified health care providers, the employee shall have

the freedom to obtain a rehabilitation evaluation by a rehabilitation counselor certified by the

director pursuant to § 28-33-41 in cases where the employee has received compensation for a

period of more than three (3) months, and the employer shall pay the reasonable fees incurred by

the rehabilitation counselor for the initial assessment.

     (b) Within three (3) days of an initial visit following an injury, the health care provider

shall provide to the insurer or self-insured employer, and the employee and his or her attorney, a

notification of compensable injury form to be approved by the administrator of the medical

advisory board. Within three (3) days of the injured employee's release or discharge, return to

work, and/or recovery from an injury covered by chapters 29 – 38 of this title, the health care

provider shall provide a notice of release to the insurer or self-insured employer, and the

employee and his or her attorney, on a form approved by the division. A twenty dollar ($20.00)

fee may be charged by the health care provider to the insurer or self-insured employer for the

notification of compensable injury forms or notice of release forms or for affidavits filed pursuant

to subsection (c) of this section, but only if filed in a timely manner. No claim for care or

treatment by a physician, dentist, or hospital chosen by an employee shall be valid and

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enforceable as against his or her employer, the employer's insurer, or the employee, unless the

physician, dentist, or hospital gives written notice of the employee's choice to the

employer/insurance carrier within fifteen (15) days after the beginning of the services or

treatment. The health care provider shall, in writing, submit to the employer or insurance carrier

an itemized bill and report for the services or treatment and a final itemized bill for all unpaid

services or treatment within three (3) months after the conclusion of the treatment. The employee

shall not be personally liable to pay any physician, dentist, or hospital bills in cases where the

physician, dentist, or hospital has forfeited the right to be paid by the employer or insurance

carrier because of noncompliance with this section.

     (c)(1) At six (6) weeks from the date of injury, then every twelve (12) weeks thereafter

until maximum medical improvement, any qualified physician or other health care professional

providing medical care or treatment to any person for an injury covered by chapters 29 – 38 of

this title shall file an itemized bill and an affidavit with the insurer, the employee and his or her

attorney, and the medical advisory board. A ten percent (10%) discount may be taken on the

itemized bill affidavits not filed in a timely manner and received by the insurer one week or more

late. The affidavit shall be on a form designed and provided by the administrator of the medical

advisory board and shall state:

     (i) The type of medical treatment provided to date, including type and frequency of

treatment(s);

     (ii) Anticipated further treatment, including type, frequency, and duration of treatment(s),

whether or not maximum medical improvement has been reached, and the anticipated date of

discharge;

     (iii) Whether the employee can return to the former position of employment, or is capable

of other work, specifying work restrictions and work capabilities of the employee; (2) The

affidavit shall be admissible as an exhibit of the workers' compensation court with or without the

appearance of the affiant.

     (d) "Itemized bill", as referred to in this section, means a completed statement of charges,

on a form CMS HCFA 1500, UB 92/94 or other form suitable to the insurer, that includes, but is

not limited to, an enumeration of specific types of care provided; facilities or equipment used;

services rendered; and appliances or medicines prescribed, for purposes of identifying the

treatment given the employee with respect to his or her injury.

     (e)(1) The treating physician shall furnish to the employee, or to his or her legal

representative, a copy of his or her medical report within ten (10) days of the examination date.

     (2) The treating physician shall notify the employer, and the employee and his or her

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attorney, immediately when an employee is able to return to full or modified work. (3) There

shall be no charge for a health record when that health record is necessary to support any appeal

or claim under the Workers' Compensation Act § 23-17-19.1(16). The treating physician shall

furnish to the employee, or to his or her legal representative, a medical report, within ten (10)

days of the request, stating the diagnosis, disability, loss of use, end result and/or causal

relationship of the employee's condition associated with the work related injury. The physician

shall be entitled to charge for these services only as enunciated in the State of Rhode Island

workers compensation medical fee schedule.

     (f)(1) Compensation for medical expenses and other services under § 28-33-5, 28-33-7 or

28-33-8 is due and payable within twenty-one (21) days from the date a request is made for

payment of these expenses by the provider of the medical services. In the event payment is not

made within twenty-one (21) days from the date a request is made for payment, the provider of

medical services may add, and the insurer or self-insurer shall pay, interest at the per annum rate

as provided in § 9-21-10 on the amount due. The employee or the medical provider may file a

petition with the administrator of the workers' compensation court which petition shall follow the

procedure as authorized in chapter 35 of this title. (2)The twenty-one day (21) period in

subdivision (1) of this subsection and in § 28-35-12 shall begin on the date the insurer receives a

request with appropriate documentation required to determine whether the claim is compensable

and the payment requested is due.

     SECTION 17. Section 30-30.1-1 of the General Laws in Chapter 30-30.1 entitled

"Educational Benefits for Disabled American Veterans" is hereby amended to read as follows:

     30-30.1-1. Educational benefits for disabled American veterans. -- Any veteran who

is a permanent resident of this state who submits proof sufficient to establish a veterans' rated ten

percent (10%) to one hundred percent (100%) disability by the department of veterans' affairs as a

result of military service shall be entitled to take courses at any public institution of higher

education in the state without the payment of tuition, exclusive of other fees and charges;

provided, however, that any person eligible for financial aid as determined by the institution of

higher education shall apply for such financial aid. Any financial aid award received by the

applicant shall be applied towards the full amount of tuition that would otherwise have been

charged by the public institution of higher education. Students using the tuition waivers for

courses and competitive programs shall register at the start of open registration for the applicable

semester in accordance with each institution's registration policies. This will include includes

priority registration where granted to students with disability status. Use of this waiver for

competitive programs does not supersede any existing academic criteria for admission into those

LC002593/SUB A/2 - Page 30 of 85

programs.

     SECTION 18. Section 31-5.1-4 of the General Laws in Chapter 31-5.1 entitled

"Regulation of Business Practices Among Motor Vehicle Manufacturers, Distributors, and

Dealers" is hereby amended to read as follows:

     31-5.1-4. Violations. -- (a) It shall be deemed a violation of this chapter for any

manufacturer or motor vehicle dealer to engage in any action that is arbitrary, in bad faith, or

unconscionable and that causes damage to any of the parties involved or to the public.

      (b) It shall be deemed a violation of this chapter for a manufacturer, or officer, agent, or

other representative of a manufacturer, to coerce, or attempt to coerce, any motor vehicle dealer:

      (1) To order or accept delivery of any motor vehicle or vehicles, equipment, parts, or

accessories for them, or any other commodity or commodities that the motor vehicle dealer has

not voluntarily ordered.

      (2) To order or accept delivery of any motor vehicle with special features, accessories, or

equipment not included in the list price of that motor vehicle as publicly advertised by the

manufacturer of the vehicle.

      (3) To participate monetarily in an advertising campaign or contest, or to purchase any

promotional materials, or training materials, showroom, or other display decorations, or materials

at the expense of the new motor vehicle dealership.

      (4) To enter into any agreement with the manufacturer or to do any other act prejudicial

to the new motor vehicle dealer by threatening to terminate or cancel a franchise or any

contractual agreement existing between the dealer and the manufacturer; except that this

subdivision is not intended to preclude the manufacturer or distributor from insisting on

compliance with the reasonable terms or provisions of the franchise or other contractual

agreement. Notice in good faith to any new motor vehicle dealer of the new motor vehicle

dealer's violation of those terms or provisions shall not constitute a violation of the chapter.

      (5) To refrain from participation in the management of, investment in, or acquisition of

any other line of new motor vehicle or related products. This subdivision does not apply unless

the new motor vehicle dealer maintains a reasonable line of credit for each make or line of new

motor vehicles, the new motor vehicle dealer remains in compliance with any reasonable facilities

requirements of the manufacturer; and no change is made in the principal management of the new

motor vehicle dealer.

      (6) To assent to a release, assignment, novation, waiver, or estoppel in connection with

the transfer or voluntary termination of a franchise, or that would relieve any person from the

liability to be imposed by this law; or to require any controversy between a new motor vehicle

LC002593/SUB A/2 - Page 31 of 85

dealer and a manufacturer, distributor, or representative to be referred to any person other than

the duly constituted courts of this state or of the United States of America, or to the department of

revenue of this state, if that referral would be binding upon the new motor vehicle dealer.

      (7) To order for any person any parts, accessories, equipment, machinery, tools, or any

commodities.

      (c) It shall be deemed a violation of this chapter for a manufacturer, or officer, agent, or

other representative:

      (1) To refuse to deliver in reasonable quantities and within a reasonable time after

receipt of the dealer's order, to any motor vehicle dealer having a franchise or contractual

arrangement for the retail sale of new motor vehicles sold or distributed by the manufacturer, any

motor vehicles covered by the franchise or contract, specifically publicly advertised by the

manufacturer to be available for immediate delivery. However, the failure to deliver any motor

vehicle shall not be considered a violation of this chapter if that failure is due to an act of God,

work stoppage, or delay due to a strike or labor difficulty, shortage of materials, a freight

embargo, or other cause over which the manufacturer, distributor, or wholesaler, its agent, shall

have no control.

      (2) To refuse to deliver, or otherwise deny, to any motor vehicle dealer having a

franchise or contractual arrangement for the retail sale of new motor vehicles sold or distributed

by the manufacturer any particular new motor vehicle model made or distributed by the

manufacturer under the name of the division of the manufacturer of which the dealer is an

authorized franchise.

      (3) It shall be deemed a prima facie violation of this chapter for any automotive vehicle

division manufacturer to require any separate franchise or contractual arrangement with any new

motor vehicle dealer already a party to a franchise or contractual arrangement with that

automotive vehicle division for the retail sale of any particular new motor vehicle model made or

distributed by that division.

      (4) To coerce, or attempt to coerce, any motor vehicle dealer to enter into any agreement

with the manufacturer, or their officers, agents, or other representatives, or to do any other act

prejudicial to the dealer, by threatening to cancel any franchise or any contractual agreement

existing between the manufacturer and the dealer. Notice in good faith to any motor vehicle

dealer of the dealer's violation of any terms or provisions of the franchise or contractual

agreement shall not constitute a violation of this chapter.

      (5) To resort to or use any false or misleading advertisement in connection with his or

her business as a manufacturer, an officer, agent, or other representative.

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      (6) To sell or lease any new motor vehicle to, or through, any new motor vehicle dealer

at a lower actual price therefore than the actual price offered to any other new motor vehicle

dealer for the same model vehicle similarly equipped or to utilize any device, including, but not

limited to, sales promotion plans or programs, that result in a lesser actual price. The provisions

of this paragraph shall not apply to sales to a new motor vehicle dealer for resale to any unit of

the United States government or to the state or any of its political subdivisions. A manufacturer

may not reduce the price of a motor vehicle charged to a dealer or provide different financing

terms to a dealer in exchange for the dealer's agreement to:

      (i) Maintain an exclusive sales or service facility;

      (ii) Build or alter a sales or service facility; or

      (iii) Participate in a floor plan or other financing.

      (7) To sell or lease any new motor vehicle to any person, except a manufacturer's

employee, at a lower actual price than the actual price offered and charged to a new motor vehicle

dealer for the same model vehicle similarly equipped or to utilize any device which results in a

lesser actual price. The provisions of this paragraph shall not apply to sales to a new motor

vehicle dealer for resale to any unit of the United States government, or to the state or any of its

political subdivisions.

      (8) To offer in connection with the sale of any new motor vehicle or vehicles, directly or

indirectly, to a fleet purchaser, within or without this state, terms, discounts, refunds, or other

similar types of inducements to that purchaser without making the same offer or offers available

to all of its new motor vehicles dealers in this state. No manufacturer may impose or enforce any

restrictions against new motor vehicle dealers in this state or their leasing, rental, or fleet

divisions or subsidiaries that are not imposed or enforced against any other direct or indirect

purchaser from the manufacturer. The provisions of this paragraph shall not apply to sales to a

new motor vehicle dealer for resale to any unit of the United States government, or to the state or

any of its political subdivisions.

      (9) To use or consider the performance of a motor vehicle dealer relating to the sale of

the manufacturer's vehicles or the motor vehicle dealer's ability to satisfy any minimum sales or

market share quota or responsibility relating to the sale of the manufacturer's new vehicles in

determining:

      (i) The motor vehicle dealer's eligibility to purchase program, certified, or other used

motor vehicles from the manufacturer;

      (ii) The volume, type, or model of program, certified, or other used motor vehicles that a

motor vehicle dealer is eligible to purchase from the manufacturer;

LC002593/SUB A/2 - Page 33 of 85

      (iii) The price of any program, certified, or other used motor vehicle that the dealer is

eligible to purchase from the manufacturer; or

      (iv) The availability or amount of any discount, credit, rebate, or sales incentive that the

dealer is eligible to receive from the manufacturer for the purchase of any program, certified, or

other used motor vehicle offered for sale by the manufacturer.

      (10) To offer to sell or to sell parts or accessories to any new motor vehicle dealer for

use in the dealer's own business for the purpose of repairing or replacing the same parts or

accessories or a comparable part or accessory, at a lower actual price than the actual price

charged to any other new motor vehicle dealer for similar parts or accessories to use in the

dealer's own business. In those cases where new motor vehicle dealers operate or serve as

wholesalers of parts and accessories to retail outlets, these provisions shall be construed to

prevent a manufacturer, or its agents, from selling to a new motor vehicle dealer who operates

and services as a wholesaler of parts and accessories, any parts and accessories that may be

ordered by that new motor vehicle dealer for resale to retail outlets at a lower actual price than the

actual price charged a new motor vehicle dealer who does not operate or serve as a wholesaler of

parts and accessories.

      (11) To prevent, or attempt to prevent, by contract or otherwise, any new motor vehicle

dealer from changing the capital structure of his or her dealership or the means by which, or

through which the dealer finances the operation of his or her dealership. However, the new motor

vehicle dealer shall at all times meet any reasonable capital standards agreed to between the

dealership and the manufacturer, provided that any change in the capital structure by the new

motor vehicle dealer does not result in a change in the executive management control of the

dealership.

      (12) To prevent, or attempt to prevent, by contract or otherwise, any new motor vehicle

dealer, or any officer, partner, or stockholder of any new motor vehicle dealer, from selling or

transferring any part of the interest of any of them to any other person or persons or party or

parties. Provided, however, that no dealer, officer, partner, or stockholder shall have the right to

sell, transfer, or assign the franchise or power of management or control without the consent of

the manufacturer, except that the consent shall not be unreasonably withheld.

      (13) To obtain money, goods, services, anything of value, or any other benefit from any

other person with whom the new motor vehicle dealer does business, on account of, or in relation

to, the transactions between the dealer and that other person, unless that benefit is promptly

accounted for and transmitted to the new motor vehicle dealer.

      (14) To compete with a new motor vehicle dealer operating under an agreement or

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franchise from the manufacturer in the state of Rhode Island, through the ownership, operation, or

control of any new motor vehicle dealers in this state, or by participation in the ownership,

operation, or control of any new motor vehicle dealer in this state. A manufacturer shall not be

deemed to be competing when operating, controlling, or owning a dealership, either temporarily

for a reasonable period, but in any case not to exceed one year, which one-year (1) period may be

extended for a one-time, additional period of up to six (6) months upon application to, and

approval by, the motor vehicle dealers license and hearing board, which approval shall be subject

to the manufacturer demonstrating the need for this extension, and with other new motor vehicle

dealers of the same line making or make being given notice and an opportunity to be heard in

connection with said application, or in a bona fide relationship in which an independent person

had made a significant investment subject to loss in the dealership and can reasonably expect to

acquire full ownership of the dealership on reasonable terms and conditions within a reasonable

period of time.

      (15) To refuse to disclose to any new motor vehicle dealer, handling the same line or

make, the manner and mode of distribution of that line or make within the relevant market area.

      (16) To increase prices of new motor vehicles that the new motor vehicle dealer had

ordered for private retail consumers prior to the new motor vehicle dealer's receipt of the written,

official price increase notification. A sales contract signed by a private retail consumer shall

constitute evidence of an order, provided that the vehicle is in fact delivered to that customer. In

the event of manufacturer price reductions or cash rebates paid to the new motor vehicle dealer,

the amount of any reduction or rebate received by a new motor vehicle dealer shall be passed on

to the private retail consumer by the new motor vehicle dealer. Price reductions shall apply to all

vehicles in the dealer's inventory that were subject to the price reduction. Price differences

applicable to new model or series motor vehicles at the time of the introduction of new models or

series shall not be considered a price increase or price decrease. Price changes caused by either:

(i) The addition to a motor vehicle of required or optional equipment; (ii) Revaluation of the

United States dollar, in the case of foreign-make vehicles or components; or (iii) An increase in

transportation charges due to increased rates imposed by common carriers, shall not be subject to

the provisions of this subdivision.

      (17) To release to any outside party, except under subpoena or as otherwise required by

law, or in an administrative, judicial, or arbitration proceeding involving the manufacturer or new

motor vehicle dealer, any business, financial, or personal information that may be, from time to

time, provided by the new motor vehicle dealer to the manufacturer, without the express written

consent of the new motor vehicle dealer.

LC002593/SUB A/2 - Page 35 of 85

      (18) To unfairly discriminate among its new motor vehicle dealers with respect to

warranty reimbursement, or any program that provides assistance to its dealers, including internet

listings; sales leads; warranty policy adjustments; marketing programs; and dealer recognition

programs.

      (19) To unreasonably withhold consent to the sale, transfer, or exchange of the franchise

to a qualified buyer capable of being licensed as a new motor vehicle dealer in this state.

      (20) To fail to respond, in writing, to a request for consent as specified in subdivision

(19) of this subsection within sixty (60) days of the receipt of a written request on the forms, if

any, generally utilized by the manufacturer or distributor for those purposes and containing the

information required therein. The failure to respond shall be deemed to be a consent to the

request. A manufacturer may not impose a condition on the approval of a sale, transfer, or

exchange of the franchise if the condition would violate the provisions of this chapter if imposed

on an existing dealer.

      (21) To unfairly prevent a new motor vehicle dealer from receiving fair and reasonable

compensation for the value of the new motor vehicle dealership.

      (22) To require that a new motor vehicle dealer execute a written franchise agreement

that does not contain substantially the same provisions as the franchise agreement being offered

to other new motor vehicle dealers handling the same line or make. In no instance shall the term

of any franchise agreement be of a duration of less than three (3) years.

      (23) To require that a new motor vehicle dealer provide exclusive facilities, personnel, or

display space taking into consideration changing market conditions, or that a dealer execute a site

control agreement giving a manufacturer control over the dealer's facilities.

      (24) To require that a dealer expand facilities without a guarantee of a sufficient supply

of new motor vehicles to justify that expansion or to require that a dealer expand facilities to a

greater degree than is necessary to sell and service the number of vehicles that the dealer sold and

serviced in the most recent calendar year.

      (25) To prevent a dealer from adjusting his or her facilities to permit a relocation of

office space, showroom space, and service facilities so long as the relocation is within five

hundred (500) yards of the present location.

      (26) To engage in any predatory practice against a new motor vehicle dealer.

      (27) To prevent, prohibit, or coerce any new motor vehicle dealer from charging any

consumer any fee allowed to be charged by the dealer under Rhode Island law or regulation

except as related to eligible participants under a military discount program in which the dealer

voluntarily participates and receives financial compensation from the manufacturer or distributor,

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to the extent that such a program is not offered to the general public.

      (d) It shall be a violation of this chapter for a manufacturer to terminate, cancel, or fail to

renew the franchise of a new motor vehicle dealer except as provided in this subsection:

      (1) Notwithstanding the terms, provisions, or conditions of any franchise, whether

entered into before or after the enactment of this chapter or any of its provisions, or

notwithstanding the terms or provisions of any waiver, whether entered into before or after the

enactment of this chapter or any of its provisions, no manufacturer shall cancel, terminate, or fail

to renew any franchise with a licensed new motor vehicle dealer unless the manufacturer has:

      (i) Satisfied the notice requirement of this subsection;

      (ii) Has good cause for the cancellation, termination, or nonrenewal;

      (iii) Has not committed any violations set forth in subsection (b) of this section; and

      (iv) Has acted in good faith as defined in this chapter and has complied with all

provisions of this chapter.

      (2) Notwithstanding the terms, provisions, or conditions of any franchise or the terms or

provisions of any waiver, good cause shall exist for the purposes of a termination, cancellation, or

nonrenewal when:

      (i) There is a failure by the new motor vehicle dealer to comply with a provision of the

franchise, which provision is both reasonable and of material significance to the franchise

relationship, provided that the dealer has been notified, in writing, of the failure within one

hundred eighty (180) days after the manufacturer first acquired knowledge of that failure;

      (ii) If the failure by the new motor vehicle dealer, as provided in paragraph (i) of this

subdivision, relates to the performance of the new motor vehicle dealer in sales or service, then

good cause shall be defined as the failure of the new motor vehicle dealer to comply with

reasonable performance criteria established by the manufacturer if the new motor vehicle dealer

was apprised by the manufacturer, in writing, of that failure; and:

      (A) The notification stated that notice was provided of failure of performance pursuant to

paragraph (i) of this subdivision;

      (B) The new motor vehicle dealer was afforded a reasonable opportunity, for a period of

not less than six (6) months, to comply with those criteria; and

      (C) The new motor vehicle dealer did not demonstrate substantial progress towards

compliance with the manufacturer's performance criteria during that period.

      (3) The manufacturer shall have the burden of proof for showing that the notice

requirements have been complied with; that there was good cause for the franchise termination;

cancellation or nonrenewal; and that the manufacturer has acted in good faith.

LC002593/SUB A/2 - Page 37 of 85

      (i) Notwithstanding the terms, provisions, or conditions of any franchise, prior to the

termination, cancellation, or nonrenewal of any franchise, the manufacturer shall furnish

notification of the termination, cancellation, or nonrenewal to the new motor vehicle dealer as

follows:

      (A) In the manner described in paragraph (ii) of this subdivision; and

      (B) Not fewer than ninety (90) days prior to the effective date of the termination,

cancellation, or nonrenewal; or

      (C) Not fewer than fifteen (15) days prior to the effective date of the termination,

cancellation, or nonrenewal for any of the following reasons:

      (I) Insolvency of the new motor vehicle dealer, or the filing of any petition by, or

against, the new motor vehicle dealer under any bankruptcy or receivership law;

      (II) Failure of the new motor vehicle dealer to conduct his customary sales and service

operations during his or her customary business hours for seven (7) consecutive business days;

      (III) Final conviction of the new motor vehicle dealer, or any owner or operator of the

dealership, of a crime which is associated with or related to, the operation of the dealership;

      (IV) Revocation of any license that the new motor vehicle dealer is required to have to

operate a dealership; or

      (D) Not fewer than one hundred eighty (180) days prior to the effective date of the

termination or cancellation where the manufacturer or distributor is discontinuing the sale of the

product line.

      (ii) Notification under this subsection shall be in writing, shall be by certified mail or

personally delivered to the new motor vehicle dealer, and shall contain:

      (A) A statement of intention to terminate, cancel, or not to renew the franchise;

      (B) A statement of the reasons for the termination, cancellation, or nonrenewal; and

      (C) The date on which the termination, cancellation, or nonrenewal shall take effect.

      (iii) Upon the involuntary or voluntary termination, nonrenewal, or cancellation of any

franchise, by either the manufacturer or the new motor vehicle dealer, notwithstanding the terms

of any franchise whether entered into before or after the enactment of this chapter or any of its

provisions, the new motor vehicle dealer shall be allowed fair and reasonable compensation by

the manufacturer for the following:

      (A) The new motor vehicle dealer's cost, less allowances paid by the manufacturer, of

each new, undamaged, unsold, and unaltered, except for dealer-installed, manufacturer-authorized

accessories, motor vehicle, regardless of model year purchased from the manufacturer or another

dealer of the same line-make or make in the ordinary course of business within twenty-four (24)

LC002593/SUB A/2 - Page 38 of 85

months of termination, having five hundred (500) or fewer miles recorded on the odometer that is

in the new motor vehicle dealer's inventory at the time of termination, nonrenewal, or

cancellation.

      (B) The new motor vehicle dealer's cost of each new, unused, undamaged, and unsold

part or accessory that is in the current parts catalogue, or is identical to a part or accessory in the

current parts catalogue except for the number assigned to the part or accessory due to a change in

the number after the purchase of the part or accessory, and that is still in the original, resalable

merchandising package and in an unbroken lot, except that, in the case of sheet metal, a

comparable substitute for the original package may be used.

      (C) The fair market value of each undamaged sign, normal wear and tear excepted,

owned by the dealer that bears a trademark or trade name used or claimed by the manufacturer

that was purchased as a requirement of the manufacturer.

      (D) The fair market value of all special tools, and automotive services equipment owned

by the dealer that: (I) Were recommended in writing and designated as special tools and

equipment; (II) Were purchased as a requirement of the manufacturer; and (III) Are in usable and

good condition except for reasonable wear and tear.

      (E) The cost of transporting, handling, packing, storing, and loading any property that is

subject to repurchase under this section.

      (F) The payments above are due within sixty (60) days from the date the dealer submits

an accounting to the manufacturer of the vehicle inventory subject to repurchase, and for other

items within sixty (60) days from the date the dealer submits an accounting of the other items

subject to repurchase, provided, the new motor vehicle dealer has clear title (or will have clear

title upon using the repurchase funds to obtain clear title) to the inventory and other items and is

in a position to convey that title to the manufacturer. If the inventory or other items are subject to

a security interest, the manufacturer, wholesaler, or franchisor may make payment jointly to the

dealer and the holder of the security interest. In no event shall the payments be made later than

ninety (90) days of the effective date of the termination, cancellation, or nonrenewal.

      (iv) In the event the termination, cancellation, or nonrenewal is involuntary and not

pursuant to subsection (3)(i)(C) of this section and:

      (A) The new motor vehicle dealer is leasing the dealership facilities from a lessor other

than the manufacturer, the manufacturer shall pay the new motor vehicle dealer a sum equivalent

to the rent for the unexpired term of the lease or (2) two year's rent, whichever is less; or

      (B) If the new motor vehicle dealer owns the facilities, the manufacturer shall pay the

new motor vehicle dealer a sum equivalent to the reasonable rental value of the facilities for two

LC002593/SUB A/2 - Page 39 of 85

(2) years; if:

      (I) The new motor vehicle dealer is unable to reasonably utilize the facilities for another

purpose;

      (II) The new motor vehicle dealer, or the manufacturer acting as its agent, is unable to

make arrangements for the cancellation or assumption of its lease obligations by another party in

the case of leased facilities, or is unable to sell dealer-owned facilities; and

      (III) Only to the extent those facilities were required as a condition of the franchise and

used to conduct sales and service operations related to the franchise product.

      (v) In addition to any injunctive relief and any other damages allowable by this chapter,

if the manufacturer is discontinuing the product line or fails to prove that there was good cause

for the termination, cancellation, or nonrenewal, or if the manufacturer fails to prove that the

manufacturer acted in good faith, then the manufacturer shall pay the new motor vehicle dealer

fair and reasonable compensation for the value of the dealership as an ongoing business.

      In addition to the other compensation described in paragraphs (iii) and (iv) above and in

this section, the manufacturer shall also reimburse the dealer for any costs incurred for facility

upgrades or alterations required by the manufacturer within two (2) years of the effective date of

the termination.

      (vi) If a manufacturer is discontinuing the product line and thus, as a result a franchise

for the sale of motor vehicles is subject to termination, cancellation, or nonrenewal, the

manufacturer shall:

      (A) Authorize the dealer, at the dealer's option, that remains a franchised dealer of the

manufacturer regardless of the discontinuation of a product line, to continue servicing and

supplying parts (without prejudice to the right of the manufacturer to also authorize other

franchised dealers to provide service and parts for a discontinued product line), including services

and parts pursuant to a warranty issued by the manufacturer for any goods or services marketed

by the dealer pursuant to the motor vehicle franchise for a period of not less than five (5) years

from the effective date of the termination, cancellation, or nonrenewal;

      (B) Continue to reimburse the dealer that remains a franchised dealer of the

manufacturer regardless of the discontinuation of a product line or another franchised dealer of

the manufacturer in the area for warranty parts and service in an amount, and on terms not less

favorable than, those in effect prior to the termination, cancellation, or nonrenewal;

      (C) The manufacturer shall continue to supply the dealer that remains a franchised dealer

of the manufacturer regardless of the discontinuation of a product line or another franchised

dealer of the manufacturer in the area with replacement parts for any goods or services marketed

LC002593/SUB A/2 - Page 40 of 85

by the dealer pursuant to the franchise agreement for a period of not less than five (5) years from

the effective date of the termination, cancellation, or nonrenewal, at a price, and on terms not less

favorable than, those in effect prior to the termination, cancellation, or nonrenewal;

      (vii) The requirements of this section do not apply to a termination, cancellation, or

nonrenewal due to the sale of the assets or stock of the motor vehicle dealer.

      (D) To be entitled to facilities assistance from the manufacturer as described above, the

dealer shall have the obligation to mitigate damages by listing the dealership facilities for lease or

sublease with a licensed real estate agent within thirty (30) days after the effective date of the

termination of the franchise and thereafter be reasonably cooperating with such real estate agent

in the performance of the agent's duties and responsibilities. If the dealer is able to lease or

sublease the dealership facilities on terms that are consistent with local zoning requirements to

preserve the right to sell motor vehicles from the dealership facilities and the terms of the dealer's

lease, the dealer shall be obligated to pay the manufacturer the net revenue received from such

mitigation, but only following receipt of facilities assistance payments pursuant to this chapter,

and only up to the total amount of facilities assistance payments that the dealer has received.

      (e) It shall be deemed a violation of this chapter for a motor vehicle dealer:

      (1) To require a purchaser of a new motor vehicle, as a condition of the sale and delivery

thereof, to also purchase special features, equipment, parts, or accessories not desired or

requested by the purchaser. This prohibition shall not apply as to special features, equipment,

parts, or accessories that are already installed on the car before sale by the dealer.

      (2) To represent and sell as a new motor vehicle any motor vehicle that is a used motor

vehicle.

      (3) To resort to or use any false or misleading advertisement in connection with his or

her business as a motor vehicle dealer.

      (4) To engage in any deception or fraudulent practice in the repair of motor vehicles.

     SECTION 19. Section 31-44-3 of the General Laws in Chapter 31-44 entitled "Mobile

and Manufactured Homes" is hereby amended to read as follows:

     31-44-3. Rules and regulations. -- The following requirements and restrictions shall

apply to all mobile and manufactured home parks:

      (1) A mobile and manufactured home park licensee shall promulgate reasonable rules

and regulations that shall specify standards for mobile and manufactured homes in the park, entry

requirements, and rules governing the rental or occupancy of a mobile-and manufactured-home

lot and mobile and manufactured-home park;

      (2) Current rules and regulations promulgated by a mobile-and manufactured-home park

LC002593/SUB A/2 - Page 41 of 85

licensee shall be delivered by the licensee to a prospective resident prior to entering into a rental

agreement, and to the resident(s) as soon as promulgated and whenever revised. A copy of the

rules and regulations shall be filed with the director and posted in a conspicuous place in the

mobile-and manufactured-home park;

      (3) Any rule or change in rent that does not apply uniformly to all mobile and

manufactured home residents of a similar class shall create a rebuttable presumption that the rule

or change in rent is unreasonable;

      (4) (i) A mobile-and manufactured-home park licensee shall not impose any conditions

of rental or occupancy that restricts the mobile and manufactured home owner in his or her choice

of a seller of fuel, furnishings, goods, services, accessories, or other utilities connected with the

rental or occupancy of a mobile-and manufactured-home lot.;

      (ii) The licensee who purchases electricity or gas (natural, manufactured, or similar

gaseous substance) from any public utility or municipally owned utility or who purchases water

from a water system for the purpose of supplying or reselling the electricity, or gas or water to

any other person to whom he leases, lets, rents, subleases, sublets, or subrents the premises upon

which the electricity, gas, or water is to be used, shall not charge, demand, or receive directly or

indirectly, any amount for the resale of any electricity, gas, or water greater than that amount

charged by the public utility or municipally owned utility from which the electricity or gas was

purchased or by the public water system from which the water was purchased.;

      (iii) However, if the licensee incurs costs in bringing the utility service to individual

units, or in utilizing individual meters, or in some similar cost, the licensee will be entitled to a

return for the investment.;

      (iv) The park operator shall post in a conspicuous place the prevailing utility rate

schedule as published by the serving utility;

      (5) If any mobile-and manufactured-home park licensee adds, changes, deletes, or

amends any rule governing the rental or occupancy of a mobile-and manufactured-home lot in a

mobile-and manufactured-home park, a new copy of all those rules shall be furnished to all

mobile-and manufactured-home residents in the park, and filed with the department for its

review, recommendations, and recording for future reference at least forty-five (45) days prior to

the effective date of the addition, change, deletion, or amendment. The new copy furnished to the

resident shall be signed by both the mobile-and manufactured-home park owner and the mobile-

and manufactured-home park resident. Any mobile park resident who believes the rule change is

in violation of the chapter, may file a complaint with the director in accordance with § 31-44-17.

The complaint shall be filed within twenty (20) days of receipt of written notice of the change.

LC002593/SUB A/2 - Page 42 of 85

The complaint shall specify the rule in dispute and contain the basis by which the change violates

this chapter.;

      (6) If any mobile-and manufactured-home park licensee changes the rent or fees

associated with a mobile-and manufactured-home lot, notice of the change shall be given to the

mobile-and manufactured-home resident at least sixty (60) days prior to the effective date of the

change. Any mobile park resident who believes that the rule change is in violation of this chapter,

may file a complaint with the director in accordance with § 31-44-17. The complaint shall be

filed within twenty (20) days after receipt of written notice of the change. The complaint shall

specify the basis by which the change violates this chapter.;

      (7) The owners of individual mobile and manufactured homes shall be entitled to have as

many occupants in their homes as is consistent with the number of bedrooms and/or bed spaces

certified by the manufacturer; provided that the occupancy does not violate any provision of the

general laws or other municipal regulations. All bedrooms shall consist of a minimum of fifty

(50) square feet of floor area and bedrooms designed and certified for two (2) or more people

shall consist of seventy (70) square feet of floor area plus fifty (50) square feet for each person in

excess of two (2). If there is sufficient bed space, according to the criteria set forth in this

subdivision, additional rent or charges may not be imposed by a park owner or manager for any

person or persons moving in with current resident owners of a mobile and manufactured home;

      (8) A prospective resident shall not be charged an entrance fee for the privilege of

leasing or occupying a mobile-and manufactured-home lot, except as provided in § 31-44-4;

provided, that when a mobile and manufactured home is transported onto the mobile-and

manufactured-home park, an entrance fee may be charged. However, if the park owner received a

commission for the sale of the mobile and manufactured home, no entrance fee shall be charged.

A reasonable charge for the fair value of the owner's cost in obtaining, preparing, and maintaining

a lot, or for the fair value of services performed in placing a mobile and manufactured home on a

lot, shall not be considered an entrance fee, but shall be deemed a hook-up fee or maintenance fee

and shall be detailed in the fee schedule. No tenant, or person seeking space in a mobile-and

manufactured-housing park, shall be required to purchase manufactured housing from any

particular person unless the person designated is the park owner or operator and the requirement

is imposed only in connection with the initial leasing or renting of a newly-constructed lot or

space not previously leased or rented to any other person. A resident may remove and replace a

mobile and manufactured home; provided, that the resident shall install the mobile and

manufactured home in accordance with present park standards regarding structural requirements

and aesthetic maintenance in the mobile-and manufactured-home park where the replacement

LC002593/SUB A/2 - Page 43 of 85

occurs, and in accordance with minimum standards for mobile and manufactured homes

established by the United States Department of Housing and Urban Development. No fee shall be

charged by the licensee to residents as a result of the resident's installation of cable television;

      (9) Prior to signing a lease, a licensee shall dispose disclose, in writing, to the

prospective resident:

      (i) The rental for the space or lot; and

      (ii) Any charges, including service charges, imposed by the licensee. The licensee shall

dispose disclose the rent and charges that were in effect during the three (3) preceding years, or

the period during which the licensee has operated the mobile home park, whichever is shorter;

      (10) A copy of the fee schedule shall be filed with the commission and posted in a

conspicuous place in the mobile-and manufactured-home park; and

      (11) (i) A resident shall not be charged a fee for keeping a pet in a mobile-and

manufactured-home park unless the park owner or management actually provides special

facilities or services for pets. If special pet facilities are maintained by the park owner or

management, the fee charged shall reasonably relate to the cost of maintenance of the facilities or

services and the number of pets kept in the park.;

      (ii) If the park owner or management of a mobile-and manufactured-home park

implements a rule or regulation prohibiting residents from keeping pets in the park, the new rule

or regulation shall not apply to prohibit the residents from continuing to keep the pets currently in

the park if the pet otherwise conforms with the previous park rules or regulations relating to pets.

However, if the pet dies, the resident shall have the right to replace the pet.;

      (iii) Any rule or regulation prohibiting residents from keeping pets in a mobile-and

manufactured-home park shall not apply to guide, signal, or service animals.;

      (12) Any board or commission vested with governing powers over a mobile-or

manufactured-home community, including resident-owned and nonresident-owned mobile home

park resident associations, shall establish and/or adhere to fair and impartial written guidelines

and bylaws for conducting elections that have been provided to all residents of the mobile home

park at least forty-five (45) days prior to any election. The written guidelines and bylaws shall

ensure transparency in the election process with reasonable and meaningful notice to, and

participation of, all residents. The department is authorized to promulgate rules and regulations

necessary to implement this subsection.

     SECTION 20. Section 31-44.2-8 of the General Laws in Chapter 31-44.2 entitled

"Abandoned Mobile and Manufactured Home Act" is hereby amended to read as follows:

     31-44.2-8. Notices and complaint forms. -- (a) A notice in substantially the following

LC002593/SUB A/2 - Page 44 of 85

language shall suffice for the purpose of giving an owner notice of removal of an abandoned

mobile or manufactured home pursuant to chapter 44.2 of title 31:

THIRTY-DAY NOTICE FOR REMOVAL OF MOBILE OR MANUFACTURED HOME

Date of Notice: __________________ You are notified that a certain mobile or manufactured

home (describe mobile home in terms of size, color, make, and model, if known) located at (give

address or describe location) meets the definition of an abandoned mobile or manufactured home

within the meaning of the "Abandoned Mobile or Manufactured Home Act" pursuant to chapter

44.2 of title 31. Unless all delinquent taxes (including penalty and interest) are paid, and electric,

water, and waste service are restored to this mobile or manufactured home within thirty (30) days

of the date of this notice, the plaintiff shall remove and dispose of the mobile or manufactured

home, and it shall be disposed of or sold at public auction free and clear of any existing liens.

________________________________________ Signature of plaintiff

I certify that I placed in regular U.S. mail first class postage prepaid, a copy of this notice