The bill proposes a comprehensive overhaul of the Rhode Island Limited-Liability Company Act, repealing the existing Chapter 7-16 of the General Laws in its entirety and introducing new sections. The deletions include detailed provisions governing the formation, operation, and dissolution of limited-liability companies (LLCs), such as definitions, liability and insurance requirements, powers of an LLC, and the process for converting entities to LLCs. The insertions suggest new sections will replace the repealed ones, but the specific content of these new sections is not provided in the text excerpt.

Significant changes include the removal of language detailing the liability of individuals and LLC members for negligence or misconduct, the minimum insurance coverage requirements for LLCs, and the powers of an LLC to transact business and manage property. New sections are indicated, such as "7-16-3.2. Liability in rendering professional services," but without the full text, the exact nature of the regulatory changes remains unclear. The bill also removes provisions related to the conversion of entities to LLCs, the continuation of the converting entity, and the approval process for conversion, suggesting a streamlining of the conversion process. New sections are added, such as "7-16-5. Formation," which may pertain to the formation of an LLC, and "7-16-5.1. Conversion of certain entities to a limited-liability company," indicating a restructuring of the legal framework governing LLCs.