AN ACT RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY -- CAUSES OF ACTION (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.)

S2959

2026 -- S 2959
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LC005867
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY --
CAUSES OF ACTION

Introduced By:
Senator Brian J. Thompson

Date Introduced:
March 04, 2026

Referred To:
Senate Judiciary
It is enacted by the General Assembly as follows:
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SECTION 1. Section 9-1-18 of the General Laws in Chapter 9-1 entitled "Causes of
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Action" is hereby amended to read as follows:
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9-1-18. Effect of absence from state on limitations.
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(a)
If any person against whom there is or shall be cause for any action, as enumerated in
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this chapter, in favor of a resident of the state, shall at the time the cause accrues be outside the
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limits of the state, or being within the state at the time the cause accrues shall go out of the state
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before the action is barred by the provisions of this chapter, and does not have or leave property or
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estate in the state that can be attached by process of law, then the person entitled to the action may
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commence the action, within the time before limited, after the person has returned into the state in
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such a manner that an action may, with reasonable diligence, be commenced against him or her by
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the person entitled to the action; provided, however, that no action shall be brought by any person
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upon a cause of action accruing outside this state which was barred by limitation or otherwise in
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the state, territory, or country in which the cause of action arose while he or she resided in the state.
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(b)(1) Notwithstanding any other provision of law, if any person or entity, including an
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individual or sole proprietor required to file under § 6-1-1, is required to register with the secretary
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of state under title 7 ("corporations, associations, and partnerships") or § 6-1-1 and fails to do so,
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the statute of limitations for any cause of action arising out of the business activities of that person
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or entity shall be tolled regardless of whether that person or entity maintains a physical presence in

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this state as defined in § 7-1.2-1401 (b), and shall not begin to run until the date the person or entity
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becomes duly registered or authorized to transact business in this state.
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(2) Voluntary compliance incentive. If the person or entity becomes duly registered or
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authorized to transact business in this state before the earlier of:
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(i) Receipt of written notice asserting a claim arising out of such business activities; or
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(ii) Receipt of written notice from any state agency of a compliance inquiry or enforcement
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action relating to such registration obligation, then the applicable statute of limitations for any such
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cause of action shall begin to run on the date of such registration or authorization; provided,
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however, that any such action shall be commenced within three (3) years after the date of such
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registration or authorization, or within the otherwise applicable limitations period measured from
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the date the cause of action accrued, whichever is later.
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(3) For purposes of this subsection:
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(i) "Person" has the same meaning as provided in § 6-1-1.1 and includes a natural person
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acting as a sole proprietor who is required to file under § 6-1-1.
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(ii) "Written notice" includes notice delivered by electronic mail.
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SECTION 2. This act shall take effect upon passage.
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LC005867
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LC005867 - Page 2 of 3
EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO COURTS AND CIVIL PROCEDURE -- PROCEDURE GENERALLY --
CAUSES OF ACTION
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This act would toll the statute of limitations for causes of action arising out of business
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activities conducted in this state by a person or entity required to register with the secretary of state
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under title 7 ("corporations, associations, and partnerships") or § 6-1-1 but failing to do so, until
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such person or entity becomes duly registered or authorized to transact business in this state. This
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act would further provide a voluntary compliance incentive that starts the limitations period upon
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registration when the person or entity registers before written notice of a claim or enforcement
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inquiry, thereby encouraging compliance while preserving remedies for injured consumers and
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businesses.
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This act would take effect upon passage.
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LC005867
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