2020 -- S 2802 | |
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LC005245 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2020 | |
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A N A C T | |
RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- | |
UNFAIR SALES PRACTICES | |
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Introduced By: Senator Leonidas P. Raptakis | |
Date Introduced: March 12, 2020 | |
Referred To: Senate Finance | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 6-13-1 of the General Laws in Chapter 6-13 entitled "Unfair Sales |
2 | Practices" is hereby amended to read as follows: |
3 | 6-13-1. Definitions. |
4 | (a) "Cost to the retailer" means the invoice cost of the merchandise to the retailer within |
5 | thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to the |
6 | retailer within thirty (30) days prior to the date of the sale, in the quantity last purchased, whichever |
7 | is lower; less all trade discounts except customary discounts for cash; to which shall be added: |
8 | (1) Freight charges not otherwise included in the cost of the merchandise; |
9 | (2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost |
10 | shall be deemed to be three-fourths of one percent (0.75%) two percent (2%) of the cost of the |
11 | merchandise to the retailer, unless the retailer claims and proves a lower cartage cost; and |
12 | (3) A markup to cover in part the cost of doing business, which markup, in the absence of |
13 | proof of a lesser cost, shall be six percent (6%) eight percent (8%) of the total cost at the retail |
14 | outlet. |
15 | (b) "Cost to the wholesaler" means the invoice cost of the merchandise to the wholesaler |
16 | within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to |
17 | the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased, |
18 | whichever is lower; less all trade discounts except customary discounts for cash; to which shall be |
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1 | added: |
2 | (1) Freight charges not otherwise included in the cost of the merchandise; |
3 | (2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage |
4 | cost shall be deemed to be three-fourths of one percent (0.75%) two percent (2%) of the cost of the |
5 | merchandise to the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and |
6 | (3) A markup to cover in part the cost of doing business, which markup, in the absence of |
7 | proof of a lesser cost, shall be two percent (2%) four percent (4%) of the total cost at the wholesale |
8 | establishment; provided, for the sale of cigarettes there shall be a minimum markup of seven percent |
9 | (7%). |
10 | (c) Where two (2) or more items are advertised; offered for sale; or sold at a combined |
11 | price; the price of each item shall be determined in the manner stated in subsections (a) and (b). |
12 | (d) "Sell at retail", "sales at retail", and "retail sale" mean and include any transfer of title |
13 | to tangible personal property for a valuable consideration made in the ordinary course of trade or |
14 | in the usual prosecution of the seller's business to the purchaser for consumption or use other than |
15 | resale or further processing or manufacturing. In this and in the preceding subsection the previous |
16 | terms shall include any transfer of property where title is retained by the seller as security for the |
17 | payment of the purchase price. |
18 | (e) "Retailer" means and includes every person, co-partnership, corporation, or association |
19 | engaged in the business of making sales at retail within this state; provided, that, in the case of a |
20 | retailer engaged in the business of making sales both at retail and at wholesale, the term shall be |
21 | applied only to the retail portion of the business. |
22 | (f) "Wholesaler" means and includes every person, partnership, corporation, or association |
23 | engaged in the business of making sales at wholesale within this state; provided, that, in the case |
24 | of a wholesaler engaged in the business of making sales both at wholesale and at retail, the term |
25 | shall be applied only to the wholesale portion of the business. |
26 | (g) Whenever any person, partnership, corporation, or association in the course of doing |
27 | business performs the functions of both wholesaler and retailer without actually being engaged in |
28 | the business of making sales at wholesale, the term "wholesaler" means and includes that function |
29 | of the business of preparation for sale at the retail outlet, and the term "retailer" shall be applied |
30 | only to the retail portion of the business. |
31 | (h) "Household" means and includes those who dwell under the same roof, house, or |
32 | apartment. |
33 | (i) "Rebate" means a refund of a portion of the purchase price made to consumer to induce |
34 | purchase of product. |
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1 | SECTION 2. Chapter 44-20 of the General Laws entitled "Cigarette and Other Tobacco |
2 | Products Tax" is hereby amended by adding thereto the following section: |
3 | 44-20-12.7. Minimum pricing of cigarettes. |
4 | Notwithstanding any rule, regulation or state law to the contrary, a minimum markup of |
5 | seven percent (7%) shall be added to the total cost of cigarettes sold by a retailer. The total cost |
6 | shall include the invoice cost of the merchandise to the retailer plus the cigarette excise tax imposed |
7 | by ยง 44-20-12 plus freight charges and cartage cost to the retail outlet if performed or paid for by |
8 | the retailer. The minimum markup of seven percent (7%) shall not be deemed to be an unfair sales |
9 | practice pursuant to chapter 13 of title 6. The tax administrator shall promulgate rules and |
10 | regulations consistent with this section. |
11 | 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 COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- | |
UNFAIR SALES PRACTICES | |
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1 | This act would create a minimum markup of seven percent (7%) to the total cost of |
2 | cigarettes sold by a retailer. This act would change the cost to the retailer for cartage from three- |
3 | fourth of one percent (.75%) to two percent (2%) of the cost of merchandise and the markup to |
4 | cover in part the cost of doing business from six percent (6%) to eight percent (8%). Additionally |
5 | this act would change the cost to the wholesaler for cartage from three-fourth of one percent (.75%) |
6 | to two percent (2%) of the cost of merchandise and the markup to cover in part the cost of doing |
7 | business from two percent (2%) to four percent (4%). |
8 | This act would take effect upon passage. |
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