The bill amends the Rhode Island Business Corporation Act to clarify the requirements for foreign corporations transacting business in the state. It establishes that a foreign corporation may be deemed to be transacting business in Rhode Island regardless of whether it maintains a physical presence, such as an office or employees. Foreign corporations providing services to Rhode Island residents must obtain a certificate of authority, with civil penalties for noncompliance, including a monthly penalty of $300 and additional fines based on gross receipts generated from business activities in the state. The bill also increases penalties for failing to file annual reports from $25 to $200 for both domestic and foreign corporations, and it extends similar reporting requirements to foreign limited liability companies.

Additionally, the bill introduces a new requirement for individuals conducting business in the state to obtain a business activity certificate, which must be renewed annually, regardless of physical presence. It clarifies the definition of a foreign limited liability company and outlines the registration process, imposing civil penalties for failure to register or renew. The legislation aims to enhance consumer protections and promote fair competition by ensuring that all businesses, including out-of-state entities, comply with state regulations. Key amendments include the definition of "insurance claim handling services" and a mandatory disclosure requirement for businesses to provide proof of registration upon request, with violations subject to civil penalties.

Statutes affected:
2944: 7-6-94, 7-12.1-913, 7-13.1-212