The proposed bill introduces a new chapter, Chapter 36.2, titled "Oversight and Regulation of Management Committees," to Title 34 of the General Laws concerning property. This chapter establishes a framework for the regulation of management committees associated with condominium projects, which will be applicable to all such committees in existence on or after July 1, 2026. Key provisions include the requirement for management committees or their property management companies to file an annual registration with the Department of Business Regulation. This registration must include the names and addresses of board members, the name of any property management company, the most recent annual budget, the most recent reserve study (if any), and a listing of any pending litigation involving the property management company, management committee, or any board member in their capacity as a member of the management committee.

The bill outlines the duties of management committee members and agents of property management companies, emphasizing the necessity of good faith and loyalty towards unit owners. It prohibits certain actions, such as failing to account for or remit funds belonging to unit owners, conviction of specific offenses, improperly commingling funds in an escrow or trustee account, and commingling funds of different associations.

Additionally, the bill grants unit owners the right to file complaints with the Department regarding violations of this chapter. The director of the department is empowered to conduct investigations, audits, or hearings, issue subpoenas, administer oaths, compel testimony, and order the production of relevant documents. If any person refuses to comply, a judge of the superior court may enforce compliance. The director may also issue orders, fines, or corrective directives to ensure compliance with this chapter, while referring criminal matters to the office of the attorney general for investigation.

The department is authorized to adopt rules and regulations necessary to implement this chapter. The provisions of this new chapter are intended to support, expand upon, and be consistent with the provisions of chapter 36.1 of title 34 (condominium law), with the new chapter superseding any conflicting provisions in chapter 36.1. The act will take effect upon passage.