House Committee on Corporations hears seven bills on consumer protections, funeral options and banking safeguards; votes to hold bills for study

The House Committee on Corporations convened Jan. 27 in Room 101 and voted procedurally to hold seven bills for further study, a motion the chair said was "not substantive" and would give the committee time to review testimony and documents. Vice Chair O'Brien moved to hold the agenda items, Representative Finkelman seconded, and the clerk recorded "the ayes have it."

The hearing featured short introductions by sponsors, one public witness, and discussion of consumer protections, administrative capacity, and business impacts. No final legislative votes on the bills themselves were taken; the committee left each item open for additional review.

Representative Fellella introduced House Bill 7022, described as an unfair-sales-practices measure that would require businesses to post notice when a surcharge or fee applies to credit-card payments. The sponsor told the committee the bill would "ask for businesses to advertise or put up a notice saying they're gonna be using the surcharge or a fee when you use a credit card," and suggested notices be placed on menus in restaurants and similar venues. Bill Walsh of the CTIA signed in opposition but did not testify.

Representative Casimiro introduced House Bill 7171, which would bar health-care providers from requiring patients to keep electronic payment information on file as a condition of receiving treatment. Casimiro called it "a good consumer protection bill" and noted the ACLU submitted a letter of support. Laurie Becker, the lone witness who spoke for the bill, described a personal incident: her husband was required to leave a credit card on file to make a follow-up appointment and they were told the card would remain on file; Becker said the practice left the family considering a provider change.

Representative Hawkins presented legislation to expand the Senior Savings Protection Act so seniors who prefer paper bills or checks are not penalized by discounts tied to electronic payment methods. Hawkins characterized the practice as "payment method discrimination," warned of overdraft and fraud risks for seniors who allow automatic electronic withdrawals, and offered a statewide illustrative savings estimate for telecom customers if seniors kept paper billing. Members asked about last year's action on similar language and whether businesses might respond by changing discounts or service availability; Hawkins said a Senate sponsor is now in place and the bill has broader backing this year.

Representative McGaw offered two measures. House Bill 7067 would require sellers to share recent energy-efficiency analyses and information about available efficiency programs with potential homebuyers to encourage informed upgrades and reduce energy costs. McGaw said the bill would "make for a more transparent and informed transaction for those home buyers."

McGaw also introduced House Bill 7070, enabling alternative methods of disposition after death, including natural organic reduction (composting) and alkaline hydrolysis (aquamation). She described the processes, estimated timeframes, and said such options can "reduce carbon emissions and reduce energy costs for the home buyer" by increasing participation in efficiency programs (comment applied to the other bill) and provide families with lower-cost choices. McGaw noted the Department of Health has asked for clarity on licensing and inspections and indicated discussions about whether additional inspection staffing or contracted expertise would be necessary.

Representative Knight introduced House Bill 7265, the Rhode Island Special Deposit Act, modeled on a Uniform Law Commission draft. A witness explained the measure would let individuals and entities set up special deposit accounts—functionally similar to escrow—for purposes such as tenant security deposits so funds are preserved in events like landlord bankruptcy. The committee discussed whether the bill creates a mandatory requirement or simply the legal mechanism; witnesses said it provides the tool but does not force its use. Committee members asked about finding a Senate sponsor.

Representative Phillips presented House Bill 7181 to address automatic withdrawals by health clubs, proposing that a health club stop withdrawing funds within 30 days of receiving written notice of cancellation. Phillips and Representative Spears agreed the change would apply to national chains as well as local clubs.

At the close of the hearing the committee made a formal, non-substantive motion to hold the bills for further study to allow time for written materials and additional review. The meeting adjourned thereafter. Additional testimony and written materials were entered into the record for several bills and will inform future committee action.