2026 -- H 7874

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LC003141

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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 PROPERTY -- OVERSIGHT AND REGULATION OF MANAGEMENT

COMMITTEES

     Introduced By: Representatives Cortvriend, Speakman, and McGaw

     Date Introduced: February 27, 2026

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

adding thereto the following chapter:

CHAPTER 36.2

OVERSIGHT AND REGULATION OF MANAGEMENT COMMITTEES

     34-36.2-1. Short title.

     This chapter shall be known and may be cited as the “Oversight and Regulation of

Management Committees Act”.

     34-36.2-2. Applicability.

     This chapter shall apply to any and all management committees in existence on or after

July 1, 2026.

     34-36.2-3. Definitions.

     The following terms and phrases are defined as follows:

     (1) “Annual registration” means that registration required by § 34-36.2-4.

     (2) “Condominium project” shall be defined as provided in § 34-36-3.

     (3) “Department” means the department of business regulation.

     (4) “Director” means the director of the department of business regulation.

     (5) “Management committee” shall be defined as provided in § 34-36-3.

     (6) "Property management company" means a person or entity hired by the management

committee to manage operations.

     (7) “Unit owner” shall be defined as provided in § 34-36.1-1.03.

     34-36.2-4. Registration of management committees.

     Each management committee or its property management company shall file an annual

registration with the department, a copy of which shall be filed with the office of land records for

the municipality in which the condominium project is located. The annual registration shall include:

     (1) Names and addresses of board members;

     (2) Name of any property management company;

     (3) Most recent annual budget;

     (4) Most recent reserve study, if any; and

     (5) A listing of any and all pending litigation in which the property management company,

management committee, or any board member in his or her capacity as a member of the

management committee, is involved.

     34-36.2-5. Duties.

     (a) Members of the management committee and/or agents of the property management

company shall exercise the duties of good faith and loyalty in relation to unit owners.

     (b) Members of the management committee and/or agents of the property management

company are prohibited from:

     (1) Failing, within a reasonable time, to account for or remit any monies coming into its

possession which belong to unit owners;

     (2) Conviction in a court of competent jurisdiction of this or any other state, of forgery,

embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud,

or other like offense or offenses;

     (3) Improperly commingling funds in an escrow or trustee account; or

     (4) Commingling funds of different associations.

     34-36.2-6. Transparency and access to records.

     The management committee and/or property management company shall maintain

accurate financial and operational records of the condominium project, and unit owners shall have

the right to inspect and obtain copies of records related to the condominium project.

     34-36.2-7. Complaints, investigations, and enforcement.

     (a) A unit owner may file a complaint with the department regarding violations of this

chapter.

     (b) In carrying out the provisions of this chapter, the director may conduct investigations,

audits, or hearings as necessary; issue subpoenas; administer oaths; compel testimony; and order

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the production of books, records, and documents.

     (c) If any person refuses to appear, to testify or produce any book, record, paper or

document when so ordered, upon application of the department, a judge of the superior court may

make such order as may be appropriate to aid in the enforcement of this section.

     (d) The director may issue orders, fines, or corrective directives to ensure the compliance

of management committees and property management companies with this chapter; provided, the

director shall refer matters of a criminal nature to the office of the attorney general for investigation.

     34-36.2-8. Rulemaking authority.

     The department is authorized to adopt rules and regulations necessary to implement this

chapter.

     34-36.2-9. Interpretation.

     The provisions of this chapter are intended to support, expand upon, and be consistent with

the provisions of chapter 36.1 of title 34 (“condominium law”). To the extent there are any express

conflicts between these chapters that cannot be resolved, the provisions of this chapter shall

supersede any conflicting provisions in chapter 36.1 of title 34.

     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 -- OVERSIGHT AND REGULATION OF MANAGEMENT

COMMITTEES

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     This act would establish oversight of condominium management committees and property

management companies by the department of business regulation.

     This act would take effect upon passage.

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LC003141

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