2015 -- H 5559

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LC001356

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO COMMERCIAL LAW-GENERAL REGULATORY PROVISIONS - UNFAIR

SALES PRACTICES

     

     Introduced By: Representative Raymond E. Gallison

     Date Introduced: February 25, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 6-13-1 and 6-13-2 of the General Laws in Chapter 6-13 entitled

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"Unfair Sales Practices" are hereby amended to read as follows:

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     6-13-1. Definitions. -- (a) "Cost to the retailer" means the invoice cost of the

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merchandise to the retailer within thirty (30) days prior to the date of the sale, or the replacement

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cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, in the

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quantity last purchased, whichever is lower; less all trade discounts except customary discounts

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for cash; to which shall be added:

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      (1) Freight charges not otherwise included in the cost of the merchandise;

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      (2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost

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shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the

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retailer, unless the retailer claims and proves a lower cartage cost; and

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      (3) A markup to cover in part the cost of doing business, which markup, in the absence

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of proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet.

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      (b) "Cost to the wholesaler" means the invoice cost of the merchandise to the wholesaler

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within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to

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the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased,

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whichever is lower; less all trade discounts except customary discounts for cash; to which shall be

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added:

 

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      (1) Freight charges not otherwise included in the cost of the merchandise;

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      (2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage

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cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to

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the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and

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      (3) A markup to cover in part the cost of doing business, which markup, in the absence

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of proof of a lesser cost, shall be two percent (2%) of the total cost at the wholesale

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establishment.

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      (c) (b) Where two (2) or more items are advertised; offered for sale; or sold at a

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combined price; the price of each item shall be determined in the manner stated in subsections (a)

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and (b).

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      (d) (c) "Sell at retail", "sales at retail", and "retail sale" mean and include any transfer of

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title to tangible personal property for a valuable consideration made in the ordinary course of

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trade or in the usual prosecution of the seller's business to the purchaser for consumption or use

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other than resale or further processing or manufacturing. In this and in the preceding subsection

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the previous terms shall include any transfer of property where title is retained by the seller as

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security for the payment of the purchase price.

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      (e) (d) "Retailer" means and includes every person, co-partnership, corporation, or

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association engaged in the business of making sales at retail within this state; provided, that, in

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the case of a retailer engaged in the business of making sales both at retail and at wholesale, the

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term shall be applied only to the retail portion of the business.

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      (f) (e) "Wholesaler" means and includes every person, partnership, corporation, or

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association engaged in the business of making sales at wholesale within this state; provided, that,

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in the case of a wholesaler engaged in the business of making sales both at wholesale and at

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retail, the term shall be applied only to the wholesale portion of the business.

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      (g) (f) Whenever any person, partnership, corporation, or association in the course of

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doing business performs the functions of both wholesaler and retailer without actually being

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engaged in the business of making sales at wholesale, the term "wholesaler" means and includes

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that function of the business of preparation for sale at the retail outlet, and the term "retailer" shall

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be applied only to the retail portion of the business.

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      (h) (g) "Household" means and includes those who dwell under the same roof, house, or

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apartment.

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      (i) (h) "Rebate" means a refund of a portion of the purchase price made to consumer to

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induce purchase of product.

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     6-13-2. Computation of cost of tobacco products. -- For purposes of this chapter:

 

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      (1) The tax imposed by chapter 20 of title 44 shall be deemed to be a part of the original

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cost of cigarettes; to the wholesaler;

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      (2) The invoice or replacement cost of cigarettes, cigars, smoking tobacco, chewing

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tobacco, snuff, and other tobacco products, to any wholesaler or retailer, shall be deemed to be

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the minimum price in this state at which the products may be were purchased in this state by the

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wholesaler or retailer; and

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      (3) Merchandise given gratis to a wholesaler or to a retailer for display, advertising, or

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promotion purposes, or otherwise, shall not be considered in determining the cost of merchandise

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to the wholesaler or retailer, as the case may be.

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     SECTION 2. Title 23 of the General Laws entitled "HEALTH AND SAFETY" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 94

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HEALTH AND SAFETY

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     23-94-1. Tobacco control program – Establishment and funding. – The general

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assembly shall include an appropriate amount in the annual budget for appropriations to the state

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department of health to implement a tobacco control program and for programs and activities

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aimed at reducing tobacco in Rhode Island as recommended by the centers for disease control and

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prevention, or its successor agency, to prevent and reduce tobacco use, reduce exposure to

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secondhand smoke, encourage cessation effects, and identify and eliminate disparities related to

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tobacco use and its effects among different population groups.

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     SECTION 3. Section 44-20-12.4 of the General Laws in Chapter 44-20 entitled

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"Cigarette Tax" is hereby amended to read as follows:

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     44-20-12.4. Floor stock tax on cigarettes and stamps. -- (a) Whenever used in this

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section, unless the context requires otherwise:

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      (1) "Cigarette" means and includes any cigarette as defined in section 44-20-1(2);

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      (2) "Person" means and includes each individual, firm, fiduciary, partnership,

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corporation, trust, or association, however formed.

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      (b) Each person engaging in the business of selling cigarettes at retail in this state shall

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pay a tax or excise to the state for the privilege of engaging in that business during any part of the

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calendar year 2012 2015. In calendar year 2012 2015, the tax shall be measured by the number of

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cigarettes held by the person in this state at 12:01 a.m. on July 1, 2012 2015 and is computed at

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the rate of two (2.0) mills for each cigarette on July 1, 2012 2015.

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      (c) Each distributor licensed to do business in this state pursuant to this chapter shall pay

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a tax or excise to the state for the privilege of engaging in business during any part of the calendar

 

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year 2012 2015. The tax is measured by the number of stamps, whether affixed or to be affixed to

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packages of cigarettes, as required by § 44-20-28. In calendar year 2012 2015 the tax is measured

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by the number of stamps, as defined in § 44-20-1(10), whether affixed or to be affixed, held by

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the distributor at 12:01 a.m. on July 1, 2012 2015, and is computed at the rate of two (2.0) mills

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per cigarette in the package to which the stamps are affixed or to be affixed.

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      (d) Each person subject to the payment of the tax imposed by this section shall, on or

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before July 10, 2012 2015, file a return with the tax administrator on forms furnished by him or

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her, under oath or certified under the penalties of perjury, showing the amount of cigarettes or

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stamps in that person's possession in this state at 12:01 a.m. on July 1, 2012 2015, and the amount

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of tax due, and shall at the time of filing the return pay the tax to the tax administrator. Failure to

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obtain forms shall not be an excuse for the failure to make a return containing the information

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required by the tax administrator.

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      (e) The tax administrator may promulgate rules and regulations, not inconsistent with

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law, with regard to the assessment and collection of the tax imposed by this section.

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     SECTION 4. 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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     This act would repeal the definition of "cost to the wholesaler" within the unfair sales

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practices act. The act would also provide for the establishment of a tobacco control program to

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prevent and reduce tobacco use. The act would also update the floor stock tax on cigarettes,

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beginning, in 2015.

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     This act would take effect upon passage.

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