2018 -- S 2502

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LC004926

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- HAWKERS AND PEDDLERS

     

     Introduced By: Senators Euer, Jabour, Goldin, Satchell, and Quezada

     Date Introduced: March 01, 2018

     Referred To: Senate Commerce

     (Dept. of Business Regulation)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 5-11-1.1 of the General Laws in Chapter 5-11 entitled "Hawkers

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and Peddlers" is hereby amended to read as follows:

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     5-11-1.1. "Hawkers", "peddlers", and "door-to-door salespersons" defined --

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Authority to issue rules and regulations.

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     (a) For purposes of this chapter:

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     (1) "Door-to-door salespersons" means persons who deliver goods, wares, or

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merchandise to customers for which payment has already been made or is to be made at the time

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of delivery;

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     (2) "Hawker" means any person selling or offering for sale any goods, wares, or

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merchandise, including any food or beverage, on any public street, highway, or public right of

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way in the state from a stationary location;

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     (3) "Peddler" means any person selling or offering for sale any goods, wares, or

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merchandise, including any food or beverage, from a vehicle, cart, or any other conveyance that

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is not stationary, but not including "food trucks" registered pursuant to § 5-11.1-1 et seq. and any

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regulations promulgated thereunder; and

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     (4) No "hawker" or "peddler" shall sell or offer for sale any single good, ware, or item

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having a retail value of more than three hundred dollars ($300). However, this dollar limitation

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shall not apply to any non-profit corporation duly authorized to do business in Rhode Island. A

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non-profit corporation means a non-profit corporation that has applied under 26 U.S.C. §

 

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501(c)(3) for approval as a § 501(c)(3) corporation with the Internal Revenue Service, or has been

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so approved.

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     (b) Persons selling farm or garden produce, including flowers, and persons selling works

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of art or crafts of their own making at an art or crafts show or exhibition are not hawkers or

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peddlers, provided, that:

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     (1) Cumberland. The town of Cumberland has the power to license and regulate persons

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selling farm or garden produce, including flowers, and persons selling works of art or crafts of

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their own making at an art or crafts show or exhibition;

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     (2) West Warwick. The town of West Warwick has the power to license and regulate

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persons selling farm or garden produce, including flowers, and persons selling works of art or

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crafts of their own making at an art or crafts show or exhibition;

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     (3) Bristol. The town of Bristol has the power to license and regulate persons selling farm

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or garden produce, including flowers, and persons selling works of art or crafts of their own

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making at an art or crafts show or exhibition;

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     (4) Warwick. The city of Warwick has the power to license and regulate persons selling

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farm or garden produce, including flowers, and persons selling works of art or crafts of their own

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making at an art or crafts show or exhibition;

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     (5) East Providence. The city of East Providence has the power to license and regulate

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persons selling farm or garden produce, including flowers; and

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     (6) Woonsocket. The city of Woonsocket has the power to license and regulate peddlers

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selling or offering flowers.

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     (c) "Food trucks" registered pursuant to § 5-11.1-1 et seq. and any regulations

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promulgated thereunder are not hawkers or peddlers and are explicitly exempted from this

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chapter.

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     SECTION 2. Title 5 of the General Laws entitled "BUSINESSES AND PROFESSIONS"

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is hereby amended by adding thereto the following chapter:

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CHAPTER 11.1

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STATE FOOD TRUCK REGISTRATION ACT

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     5-11.1-1. Short title.

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     This chapter shall be known and may be cited as the "State Food Truck Registration Act."

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     5-11.1-2. Purpose.

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     The intent of this chapter is to standardize the registration process for food trucks in the

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state by authorizing the department of business regulation to issue state food truck registrations.

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Furthermore, this chapter explicitly exempts food trucks from the provisions of chapter 11 of title

 

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5 which applies to hawkers and peddlers.

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     5-11.1-3. Definitions.

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     (a) As used in this chapter, the following terms shall have the following meanings:

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     (1) "Department" means the department of business regulation.

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     (2) "Director" means the director of the department of business regulation.

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     (3) "Event permit" means a permit that a city or town issues to the organizer of a public

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food truck event located on public property.

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     (4) "Fire safety code" shall have the meaning set forth in § 23-28.1-5 and shall include

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any regulations promulgated thereunder.

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     (5) "Food truck" means a fully encased mobile food establishment on a motor vehicle or

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on a trailer that a motor vehicle pulls to transport and from which a food truck vendor, standing

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within the frame of the vehicle, prepares, cooks, sells, or serves food or beverages for immediate

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human consumption.

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     (6) "Food truck event" means an event where an individual has ordered or commissioned

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the operation of one or more food truck(s) at a private or public gathering.

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     (7) "Food truck operator" means a person or corporate entity who owns, manages, or

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controls, or who has the duty to manage or control, the operation of a food truck.

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     (8) "Food truck vendor" means a person who prepares, sells, cooks, or serves food or

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beverages from a food truck.

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     (9) "MFE" means a mobile food establishment as defined by regulations promulgated by

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RIDOH.

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     (10) "Municipal food truck permit" means a permit issued by a city or town to a food

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truck operator that possesses a current state food truck registration.

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     (11) "Registrant" means the holder of a "state food truck registration."

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     (12) "RIDOH" means the Rhode Island department of health.

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     (13) "State food truck registration" or "registration" means a registration issued by the

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department of business regulation which authorizes a food truck to operate in the state.

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     (14) "Temporary mass gathering" means:

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     (i) An actual or reasonably anticipated assembly of five hundred (500) or more people

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that continues, or reasonably can be expected to continue, for two (2) or more hours per day; or

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     (ii) An event that requires a more extensive review to protect public health and safety

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because the event's nature or conditions have the potential of generating environmental or health

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risks.

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     (iii) "Temporary mass gathering" includes, but is not limited to, "special events" as

 

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defined in the food code regulations promulgated by RIDOH, festivals and concerts.

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     (iv) "Temporary mass gathering" shall not include an assembly of people at a location

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with permanent facilities designed for that specific assembly.

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     5-11.1-4. Practices for which registration is required.

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     Beginning on July 1, 2019, it shall be unlawful for any person to operate a food truck, as

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defined in this chapter, in this state without first receiving a registration from the department in

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accordance with this chapter.

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     5-11.1-5. Registration applications and requirements.

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     (a) An application for a state food truck registration shall be made to the department of

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business regulation on forms adopted by the department and accompanied by the required fee,

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which will be set by the department in regulations.

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     (b) The application shall, at a minimum, include the following information:

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     (1) The name and address of the applicant and, if the applicant is an entity, the name and

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address of at least one natural person who is in responsible charge of the operations on behalf of

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the applicant;

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     (2) Evidence of a current:

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     (i) Mobile food service license from RIDOH;

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     (ii) Fire safety permit;

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     (iii) State criminal background check (BCI) issued within one month of the date of

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application;

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     (iv) Motor vehicle registration as a commercial vehicle;

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     (v) Motor vehicle insurance as a commercial vehicle;

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     (vi) Evidence of financial responsibility that is acceptable to the department; and

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     (vii) Permit to make sales at retail from the Rhode Island division of taxation.

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     (3) Any other such information as the department shall require.

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     (c) If an applicant or registrant operates more than one food truck, the applicant or

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registrant shall submit a separate application for each food truck and pay a separate application

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fee per year for each food truck registered by the department.

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     (d) The fees for initial registration, renewal and late renewals shall be determined by the

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department and established by regulation.

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     (e) The department shall receive applications for initial registration and renewal and

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establish administrative procedures for processing applications and issuing and renewing

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registrations.

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     5-11.1-6. Issuance and renewal of registration.

 

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     (a) A registration issued by the department pursuant to this chapter shall be valid for one

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year from the date on which it was issued or for another period of time as determined by the

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department.

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     (b) Every food truck operator that desires to renew a registration for the next year shall

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apply for renewal upon a form furnished by the department, accompanied by a fee to be set by the

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department in regulations, and containing information that is required by the department.

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     (c) Renewal of a registration may be subject to the same provisions as the initial

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application.

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     5-11.1-7. Authority to operate a food truck in any city or town.

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     (a) To operate in any city or town, a food truck operator shall provide proof of having a

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state food truck registration to the city or town that the food truck wishes to operate in.

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     (b) If a food truck presents this registration, then a city or town shall not:

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     (1) Impose additional qualification requirements on the food truck operator before issuing

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a municipal food truck permit to operate within the city or town;

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     (2) Charge a fee for a municipal food truck permit, event permit or temporary mass

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gathering permit greater than the maximum fee set by the department and established by

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regulations;

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     (3) Issue a permit that expires on a date earlier or later than the day on which the state

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food truck registration expires; or

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     (4) Require additional municipal food truck permits or charge additional fees beyond the

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initial municipal food truck permit and fee for the operation of that same food truck in more than

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one location or on more than one day within the same city and town in the same calendar year.

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     (c) Nothing in this section prevents a city or town from:

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     (1) Requiring a food truck operator or event organizer to obtain an event permit, provided

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that the fee is not greater than the maximum set by the department in regulations;

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     (2) Denying, suspending or revoking a permit that the city or town has issued if the

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operation of the registrant within the city or town violates the city's or town's land use regulations,

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zoning, or other ordinances in relation to the operation of a food truck; or

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     (3) Requiring a separate temporary mass gathering permit, provided that the fee is not

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greater than the maximum set by the department in regulations.

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     5-11.1-8. Municipal compliance.

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     All cities and towns shall comply with the provisions of this chapter by July 1, 2019.

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     5-11.1-9. Display of registration and municipal permits.

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     (a) State food truck registrations must be affixed to the food truck in a conspicuous place.

 

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     (b) When the food truck is doing business in a city or town that issues permits, the permit

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must also be affixed to the food truck in a conspicuous place.

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     5-11.1-10. Food truck safety standards.

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     (a) Food trucks shall comply with RIDOH's statutes, rules, regulations and policies

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relating to food safety.

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     (b) Food trucks shall comply with the fire safety code.

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     5-11.1-11. Grounds for denial, suspension or revocation of a state food truck

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registration.

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     (a) Upon receipt of a written complaint, the request of RIDOH or the state fire marshal,

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or upon its own initiative, the department may place on probation, suspend, revoke or refuse to

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issue or renew a state food truck registration or may levy an administrative penalty or any

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combination of actions, for any one or more of the following causes:

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     (1) Providing incorrect, misleading, incomplete or materially untrue information in the

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registration application;

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     (2) Violating any statutes, rules, regulations, ordinances or policies applicable to the safe

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operation of a food truck, specifically including the fire safety code and those set forth by the

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department, RIDOH, and the state fire marshal;

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     (3) Obtaining or attempting to obtain a registration through misrepresentation or fraud;

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     (4) Having admitted to or been found to have committed any food safety or fire safety

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violation;

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     (5) Using fraudulent, coercive, or dishonest practices or demonstrating incompetence,

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untrustworthiness or financial irresponsibility in this state or in another place;

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     (6) Having a registration, or its equivalent, denied, suspended or revoked in any other

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state, province, district or territory or administrative action under this section;

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     (7) Operating a food truck without a current and valid registration;

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     (8) Having its mobile food service license or fire safety permit denied, suspended or

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revoked; or

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     (9) Having a substantive complaint of food poisoning substantiated by the department

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procedures.

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     (b) In the event that the action by the department is to non-renew or to deny an

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application for a registration, the department shall notify the applicant or registrant and advise, in

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writing, the reason for the denial or non-renewal of the registration. The applicant or registrant

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may make written demand upon the department within thirty (30) days for a hearing. The hearing

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shall be conducted pursuant to the administrative procedures act, chapter 35 of title 42.

 

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     (c) In addition to or in lieu of any applicable denial, suspension or revocation of a

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registration, a person may, after hearing, be subject to an administrative penalty not to exceed the

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maximum set forth by regulation.

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     (d) The department shall retain the authority to enforce the provisions of and impose any

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penalty or remedy authorized by this chapter and this title against any person or entity who is in

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violation of this chapter or this title even if the person or entity's registration has been surrendered

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or has lapsed by operation of the law.

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     5-11.1-12. Order to cease and desist.

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     (a) If the department has reason to believe that any person, firm, corporation or

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association is conducting any activities requiring registration in this chapter without obtaining a

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registration, or who after the denial, suspension or revocation of a registration conducts any

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activities requiring registration under this chapter, the department may issue its order to that

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person, firm, corporation or association commanding them to appear before the department at a

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hearing to be held no sooner than ten (10) days nor later than twenty (20) days after issuance of

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that order to show cause why the department should not issue an order to that person or entity to

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cease and desist from the violation of the provisions of this chapter.

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     (b) All hearings shall be governed by the administrative procedures act, chapter 35 of title

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42 and by the department's rules of procedure for administrative hearings.

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     5-11.1-13. Responsibility of registrant for acts of agents/employees.

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     If a registrant is a firm or corporation, it is sufficient cause for the suspension or

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revocation of a registration that any officer, director, manager or trustee of the firm or entity or

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any member or partner, in the case of a partnership, has been found by the department to have

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engaged in any act or omission that would be cause for denying, suspending, or revoking a

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registration to that party as an individual. Each registrant shall be responsible for the acts of any

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person working on their food truck or any person acting as the agent for that registrant, and for

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the acts of any chef or other employee acting as the agent for that registrant.

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     5-11.1-14. Rulemaking authority.

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     The department is authorized to promulgate rules and regulations for the implementation

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of this chapter and the registration of food trucks in the state.

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     5-11.1-15. Revenue.

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     All fees collected by the department of business regulation from applicants for state food

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truck registrations shall be placed in restricted-receipt accounts to support the state's food truck

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registration program, including, but not limited to, payment of expenses incurred by the

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department of business regulation for the administration of the program.

 

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     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO BUSINESSES AND PROFESSIONS -- HAWKERS AND PEDDLERS

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     This act would provide for the consolidation of food truck registration within the

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department of business regulation to streamline the registration process and reduce the burden on

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small businesses.

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     This act would take effect upon passage.

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