2016 -- H 7570 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO COMMERCIAL LAW-GENERAL REGULATORY PROVISIONS-

DECEPTIVE TRADE PRACTICES

     

     Introduced By: Representatives McKiernan, Bennett, Hull, Carnevale, and O'Brien

     Date Introduced: February 11, 2016

     Referred To: House Small Business

     (Attorney General)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 6-13.1-7 of the General Laws in Chapter 6-13.1 entitled "Deceptive

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Trade Practices" is hereby amended to read as follows:

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     6-13.1-7. Investigations -- Procedure -- Remedies for failure to comply. -- (a) When it

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appears to the attorney general that a person has engaged in, is engaging in, or is about to engage

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in, any act or practice declared to be unlawful by this chapter, or when the attorney general

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believes it to be in the public interest that an investigation should be made to ascertain whether a

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person in fact has engaged in, is engaging in, or is about to engage in, any act or practice declared

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to be unlawful by this chapter, he or she may execute, in writing, and cause to be served upon any

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person who is believed to have information, documentary material, or physical evidence relevant

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to the alleged or suspected violation, an investigative demand stating the general subject matter of

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the investigation and the statute and section under which the suspected violation is alleged and

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require the person to furnish, under oath or otherwise, a report in writing stating the relevant facts

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and circumstances of which the person has knowledge, or to appear and testify or to produce

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relevant documentary material or physical evidence for examination, at any reasonable time and

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place that may be stated in the investigative demand, concerning the advertisement, sale, or

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offering for sale of any goods or services or the conduct of any trade or commerce that is the

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subject matter of the investigation. All civil investigative demands shall may, at the discretion of

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the attorney general, be filed in the superior court of the county in which the person served with

 

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the demand shall dwell or have his principal place of business.

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      (b) At any time before the return date specified in an investigative demand, or within

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twenty (20) days after the demand has been served, whichever period is shorter, a petition to

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extend the return date or to modify or set aside the demand, stating good cause, may be filed in

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the superior court in which the person served with the demand shall dwell or have his or her

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principal place of business, or in the superior court of Providence County.

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      (c) To accomplish the objectives and to carry out the duties prescribed by this chapter,

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the attorney general, in addition to other powers conferred upon him or her by this chapter, may

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issue subpoenas to any person; administer an oath or affirmation to any person; conduct hearings

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in aid of any investigation or inquiry; and prescribe any forms and promulgate any rules and

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regulations that may be necessary, which rules and regulations shall have the force of law;

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provided that none of the powers conferred by this chapter shall be used for the purpose of

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compelling any natural person to furnish testimony or evidence that might tend to incriminate the

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person or subject him or her to a penalty or forfeiture; and provided further that information

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obtained pursuant to the powers conferred by this chapter shall not be made public or disclosed

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by the attorney general or his or her employees beyond the extent necessary for law enforcement

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purposes in the public interest.

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      (d) Service of any notice, demand, or subpoena under this chapter shall be made

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personally within this state, but if personal service cannot be obtained, substituted service may be

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made in the following manner:

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      (1) Personal service without this state;

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      (2) The mailing of any notice, demand, or subpoena under this chapter by registered or

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certified mail to the last known place of business, residence, or abode within or without this state

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of the person for whom the service is intended;

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      (3) As to any person other than a natural person, in the manner provided in the rules of

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civil procedure as if a complaint or other pleading which institutes a civil proceeding had been

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filed; or

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      (4) Service that the superior court may direct in lieu of personal service within this state.

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      (e) A person upon whom a demand is served pursuant to the provisions of this section

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shall comply with the terms of the demand unless otherwise provided by order of court. Subject

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to the protections provided for in subsection (c) of this section relating to self incrimination, any

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person who, with intent to avoid, evade, or prevent compliance, in whole or in part, with any civil

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investigative demand under this section, removes from any place, conceals, withholds, or

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destroys, mutilates, alters, or by any other means falsifies any documentary material in the

 

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possession, custody, or control of any person subject of any demand, or knowingly conceals any

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relevant information, shall be fined not more than five thousand dollars ($5,000).

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      (f) If any person fails or refuses to file any statement or report, or obey any subpoena or

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investigative demand issued by the attorney general, the attorney general may file in the superior

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court of the county in which the person shall dwell or be found; or has his or her principal place

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of business; or of Providence County, if the superior court at the previously mentioned county

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shall not be in session, or if the person is a nonresident or has no principal place of business in

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this state; or of the other county as may be agreed upon by the parties to the petition; and serve

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upon the person a petition for an order of the court for the enforcement of this section, and the

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petition may request and the court shall have jurisdiction to grant after notice and a hearing, an

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order:

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      (1) Granting injunctive relief to restrain the person from engaging in the advertising or

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sale of any merchandise or the conduct of any trade or commerce that is involved in the alleged or

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suspected violation;

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      (2) Vacating, annulling, or suspending the corporate charter of a corporation created by

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or under the laws of this state or revoking or suspending the certificate of authority to do business

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in this state of a foreign corporation or revoking or suspending any other licenses, permits, or

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certificates issued pursuant to law to the person that are used to further the allegedly unlawful

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practice; and

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      (3) Granting any other relief that may be required, until the person files the statement or

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report, or obeys the subpoena or investigative demand.

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      (g) Any final order so entered shall be subject to appeal to the state supreme court. Any

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disobedience of any final order entered under this section by any court shall be punished as a

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contempt of court.

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     SECTION 2. 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-

DECEPTIVE TRADE PRACTICES

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     This act would make discretionary the formerly mandatory requirement that civil

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investigative demands of alleged deceptive trade practices be filed in the superior court.

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     This act would take effect upon passage.

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