Tolls the statute of limitations for causes of action arising out of business activities conducted in this state by a person or entity required to register with the secretary of state but failing to do so, until such person or entity becomes registered.

Plain-English Summary

This bill deals with the legal time limits for filing lawsuits against businesses that operate in Rhode Island without properly registering with the state. Normally, there are strict deadlines (called "statutes of limitations") for how long someone has to file a lawsuit after being harmed. This bill would pause — or "toll" — that countdown clock for any business that is required to register with Rhode Island's Secretary of State but has failed to do so. The clock would stay paused until the business finally completes its required registration.

The practical effect is that if an unregistered business harms someone — through a bad contract, a business dispute, consumer fraud, or similar issues — the victim would not lose their right to sue simply because time ran out while the business was operating illegally without registration. Once the business registers, the normal legal deadline would begin running again.

This bill primarily affects two groups of people. First, it protects Rhode Island residents and businesses who have been wronged by an unregistered out-of-state or improperly registered company, giving them more time to pursue legal action. Second, it creates a stronger incentive for businesses to register properly with the state, since staying unregistered would leave them permanently exposed to potential lawsuits with no time-limit protection.

The bill was introduced in the Rhode Island House and referred to the House Judiciary Committee, which has recommended it be held for further study, meaning it has not yet moved forward toward a vote.