AN ACT RELATING TO PROPERTY -- OVERSIGHT AND REGULATION OF MANAGEMENT COMMITTEES (Establishes oversight of condominium management committees and property management companies by the department of business regulation.)

H7874

2026 -- H 7874
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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:
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SECTION 1. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by
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adding thereto the following chapter:
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CHAPTER 36.2
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OVERSIGHT AND REGULATION OF MANAGEMENT COMMITTEES
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34-36.2-1. Short title.
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This chapter shall be known and may be cited as the “Oversight and Regulation of
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Management Committees Act”.
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34-36.2-2. Applicability.
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This chapter shall apply to any and all management committees in existence on or after
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July 1, 2026.
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34-36.2-3. Definitions.
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The following terms and phrases are defined as follows:
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(1) “Annual registration” means that registration required by § 34-36.2-4.
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(2) “Condominium project” shall be defined as provided in § 34-36-3.
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(3) “Department” means the department of business regulation.
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(4) “Director” means the director of the department of business regulation.
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(5) “Management committee” shall be defined as provided in § 34-36-3.
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(6) "Property management company" means a person or entity hired by the management

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committee to manage operations.
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(7) “Unit owner” shall be defined as provided in § 34-36.1-1.03.
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34-36.2-4. Registration of management committees.
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Each management committee or its property management company shall file an annual
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registration with the department, a copy of which shall be filed with the office of land records for
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the municipality in which the condominium project is located. The annual registration shall include:
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(1) Names and addresses of board members;
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(2) Name of any property management company;
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(3) Most recent annual budget;
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(4) Most recent reserve study, if any; and
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(5) A listing of any and all pending litigation in which the property management company,
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management committee, or any board member in his or her capacity as a member of the
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management committee, is involved.
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34-36.2-5. Duties.
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(a) Members of the management committee and/or agents of the property management
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company shall exercise the duties of good faith and loyalty in relation to unit owners.
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(b) Members of the management committee and/or agents of the property management
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company are prohibited from:
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(1) Failing, within a reasonable time, to account for or remit any monies coming into its
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possession which belong to unit owners;
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(2) Conviction in a court of competent jurisdiction of this or any other state, of forgery,
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embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud,
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or other like offense or offenses;
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(3) Improperly commingling funds in an escrow or trustee account; or
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(4) Commingling funds of different associations.
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34-36.2-6. Transparency and access to records.
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The management committee and/or property management company shall maintain
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accurate financial and operational records of the condominium project, and unit owners shall have
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the right to inspect and obtain copies of records related to the condominium project.
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34-36.2-7. Complaints, investigations, and enforcement.
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(a) A unit owner may file a complaint with the department regarding violations of this
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chapter.
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(b) In carrying out the provisions of this chapter, the director may conduct investigations,
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audits, or hearings as necessary; issue subpoenas; administer oaths; compel testimony; and order

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the production of books, records, and documents.
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(c) If any person refuses to appear, to testify or produce any book, record, paper or
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document when so ordered, upon application of the department, a judge of the superior court may
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make such order as may be appropriate to aid in the enforcement of this section.
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(d) The director may issue orders, fines, or corrective directives to ensure the compliance
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of management committees and property management companies with this chapter; provided, the
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director shall refer matters of a criminal nature to the office of the attorney general for investigation.
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34-36.2-8. Rulemaking authority.
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The department is authorized to adopt rules and regulations necessary to implement this
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chapter.
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34-36.2-9. Interpretation.
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The provisions of this chapter are intended to support, expand upon, and be consistent with
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the provisions of chapter 36.1 of title 34 (“condominium law”). To the extent there are any express
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conflicts between these chapters that cannot be resolved, the provisions of this chapter shall
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supersede any conflicting provisions in chapter 36.1 of title 34.
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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 -- OVERSIGHT AND REGULATION OF MANAGEMENT
COMMITTEES
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This act would establish oversight of condominium management committees and property
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management companies by the department of business regulation.
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This act would take effect upon passage.
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