The bill amends Chapter 7-16 of the Rhode Island Limited-Liability Company Act by introducing a new section, 7-16-40.1, which allows members of a limited-liability company (LLC) to avoid dissolution by purchasing the membership interest of a member or members who have filed a petition for dissolution. The process requires the purchasing member(s) to file an election with the court prior to the commencement of the hearing or, at the court's discretion, at any time before the sale or other disposition of the LLC's assets. The purchase price is determined to be the fair market value of the membership interest.

If the membership interest owned by the petitioner is to be purchased by another member, notice must be sent to all other members of the LLC, providing them with an opportunity to join in the election to purchase a pro rata share of the petitioner's membership interest. In cases where the parties cannot agree on the fair market value, the court will determine the value, provided that a bond or other security is posted to assure payment to the petitioner. The court will state the purchase price and the payment timeline in its order and may decree other terms and conditions of sale.

The petitioner is entitled to interest on the purchase price from the date of the filing of the election to purchase, and all rights of the petitioner as the owner of the membership interest will terminate on that date. The costs of the proceeding, including reasonable compensation for appraisers, will be allocated as determined by the court. Upon full payment of the purchase price, the petitioner will transfer the membership interest to the purchasers as specified by the court. This act will take effect upon passage.