The proposed bill establishes CHAPTER 36.2, titled "Rhode Island Homeowners' Association Law," which creates a comprehensive framework for the governance of homeowners associations (HOAs) in Rhode Island. The legislation aims to enhance transparency, fairness, and accountability in the management of residential communities governed by HOAs. Key provisions include:

- Legislative findings that emphasize the need for uniform statutory standards to promote transparency, fairness, and accountability in association governance.
- The establishment of minimum governance standards for homeowners associations operating within the state and the protection of the rights of association members.
- Requirements for open board meetings, member attendance and participation, and the maintenance of official records for a minimum of seven years.
- The powers and duties of the board of directors, including their fiduciary responsibilities to members.
- Specific procedures for amending governing documents, which require approval from a majority of voting interests and a specified percentage of the board.
- Provisions for financial assessments, including the preparation of an annual budget and the establishment of reserve accounts for capital expenditures and deferred maintenance.
- A process for the recall of directors, allowing any member of the board to be removed with or without cause by a majority of the total voting interests.
- The introduction of alternative dispute resolution mechanisms, particularly through presuit mediation, which must be conducted before filing civil litigation regarding certain disputes.
- Requirements for documenting any agreements reached during mediation and sharing the costs of presuit mediation equally between the parties unless otherwise agreed.
- Compliance with the provisions of this chapter shall be enforced one year after the passage of the act.
- A severability clause ensuring that if any provision of this chapter is held invalid, the remaining provisions can still be enforced.

The act is set to take effect upon its passage.