AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS AND PARTNERSHIPS -- UNIFORM PARTNERSHIP ACT -- THE RHODE ISLAND LIMITED LIABILITY COMPANY ACT

HB 7477 replaces Rhode Island's current Limited Liability Company Act (Chapter 7-16) with an updated model act. It requires registered limited liability partnerships (RLLPs) providing professional services to carry liability insurance covering negligence or misconduct, calculated as $50,000 per professional employee (minimum $100,000, maximum $500,000). RLLPs may instead set aside $500,000 in a segregated trust account or escrow as an alternative to insurance. The bill repeals all existing provisions of the Rhode Island Limited Liability Company Act, replacing them with the new model framework.