2018 -- H 7259

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LC003931

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM LAW -- MANAGEMENT CONTRACTS

     

     Introduced By: Representative Joseph J. Solomon

     Date Introduced: January 24, 2018

     Referred To: House Corporations

     (by request)

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 34-36.1-3.2 of the General Laws in Chapter 34-36.1 entitled

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"Condominium Law" is hereby amended to read as follows:

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     34-36.1-3.02. Powers of unit owners' association.

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     (a) Except as provided in subsection (b), and subject to the provisions of the declaration,

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the association, even if unincorporated, may:

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     (1) Adopt and amend bylaws and rules and regulations;

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     (2) Adopt and amend budgets for revenues, expenditures, and reserves and collect

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assessments for common expenses from unit owners;

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     (3) Hire and discharge managing agents and other employees, agents and independent

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contractors;

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     (4) Institute, defend, or intervene in litigation or administrative proceedings in its own

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name on behalf of itself or two (2) or more unit owners on matters affecting the condominium;

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     (5) Make contracts and incur liabilities; provided, however, that any property

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management company or agent retained by the association under contract to provide

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condominium management services, including the control of or disbursement of funds of the

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association, shall maintain an "acts or omissions" or "fidelity bond" insurance policy in effect

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with respect to the fiduciary relationship between the management agent and condominium

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association. The officers of the unit owners' association shall be personally liable for their failure

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to ensure such a policy is in place.

 

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     (6) Regulate the use, maintenance, repair, replacement and modification of common

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elements;

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     (7) Cause additional improvements to be made as a part of the common elements;

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     (8) Acquire, hold, encumber, and convey in its own name any right, title or interest to real

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or personal property, but common elements may be conveyed or subjected to a security interest or

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mortgage only pursuant to § 34-36.1-3.12;

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     (9) Grant easements, leases, licenses and concessions through or over the common

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elements;

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     (10) Impose and receive any payments, fees, or charges for the use, rental, or operation of

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the common elements other than limited common elements described in § 34-36.1-2.02(2) and (4)

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and for services provided to unit owners;

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     (11) Impose charges for late payment of assessments and, after notice and an opportunity

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to be heard, levy reasonable fines for violations of the declaration, bylaws, and rules and

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regulations of the association as provided in § 34-36.1-3.20;

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     (12) Impose reasonable charges for the preparation and recordation of amendments to the

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declaration, resale certificates required by § 34-36.1-4.09 or statements of unpaid assessments;

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     (13) Provide for the indemnification of its officers and executive board and maintain

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directors' and officers' liability insurance;

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     (14) Borrow funds including the right to assign and/or pledge its right to future income,

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including the right to receive common expense assessments;

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     (15) Exercise any other powers conferred by the declaration or bylaws;

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     (16) Exercise all other powers that may be exercised in this state by legal entities of the

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same type as the association; and

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     (17) Exercise any other powers necessary and proper for the governance and operation of

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the association.

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     (b) The declaration may not impose limitations on the powers of the association to deal

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with the declarant that are more restrictive than the limitations imposed on the power of the

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association to deal with other persons.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- CONDOMINIUM LAW -- MANAGEMENT CONTRACTS

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     This act would require condominium unit owners' association officers to verify that

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management agents or companies retained by the association are insured with respect to the

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services they provide to the condominium.

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     This act would take effect upon passage.

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