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H. B. No. 574 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend sections 5311.08, 5311.081, 5311.09,
5311.091, and 5311.22 and to enact sections
5311.082, 5311.083, 5311.15, and 5311.28 to
5311.33 of the Revised Code to require certain
condominium association managers to hold a real
estate broker's license, to make changes to the
board meetings, record retention, and budget
procedure requirements of the Condominium Law, and
to establish the creation of a registry of
condominium developments and the Ohio Condominium
Dispute Resolution Board.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5311.08, 5311.081, 5311.09,
5311.091, and 5311.22 be amended and sections 5311.082, 5311.083,
5311.15, 5311.28, 5311.29, 5311.30, 5311.31, 5311.32, and 5311.33
of the Revised Code be enacted to read as follows:
Sec. 5311.08. (A)(1) Every condominium property shall be
administered by a unit owners association. All power and authority
of the unit owners association shall be exercised by a board of
directors, which the unit owners shall elect from among the unit
owners or the spouses of unit owners. If a unit owner is not an
individual, that unit owner may nominate for the board of
directors any principal, member of a limited liability company,
partner, director, officer, or employee of that unit owner.
(2) The board of directors shall elect a president,
secretary, treasurer, and other officers that the board may
desire.
(3) Unless otherwise provided in the declaration or the
bylaws, all meetings of the unit owners association are open to
the unit owners, and those present in person or by proxy when
action is taken during a meeting of the unit owners association
constitute a sufficient quorum.
(4)(a) All meetings of the board of directors shall be open
to all unit owners. A portion of each board meeting shall be
allocated for comments by unit owners. A unit owner may send an
agent or a representative to attend a board meeting in the unit
owner's place.
(b) At least five days prior to a meeting of the board of
directors, the board shall send notice and an agenda to all unit
owners in the condominium property. The board shall make all
materials provided to board members for the meeting available to
unit owners.
(c) A meeting of the board of directors may be held by any
method of communication, including electronic or telephonic
communication provided that each member of the board, and each
unit owner that participates, can hear, participate, and respond
to every other member of the board or unit owner.
(b) In lieu of conducting a meeting, the (d) The board of
directors
may take action with the unanimous written consent of
the members of the board. Those written consents shall be filed
with the minutes of the meetings of the board shall vote on the
record.
(B) The unit owners association shall be governed by bylaws.
No modification of or amendment to the bylaws is valid unless it
is set forth in an amendment to the declaration, and the amendment
to the declaration is filed for record. Unless otherwise provided
by the declaration, the bylaws shall provide for the following:
(1)(a) The election of the board of directors of the unit
owners association;
(b) The number of persons constituting the board;
(c) The terms of the directors, with not less than one-fifth
to expire annually;
(d) The powers and duties of the board;
(e) The compensation of the directors;
(f) The method of removal of directors from office;
(g) The election of officers of the board;
(h) Whether or not the services of a manager or managing
agent may be engaged.
(2) The time and place for holding meetings; the manner of
and authority for calling, giving notice of, and conducting
meetings; and the requirement, in terms of undivided interests in
the common elements, of a quorum for meetings of the unit owners
association;
(3) By whom and the procedure by which maintenance, repair,
and replacement of the common elements may be authorized;
(4) The common expenses for which assessments may be made and
the manner of collecting from the unit owners their respective
shares of the common expenses;
(5) The method of distributing the common profits;
(6) By whom and the procedure by which administrative rules
governing the operation and use of the condominium property or any
portion of the property may be adopted and amended. These rules
may govern any aspect of the condominium property that is not
required to be governed by bylaws and may include standards
governing the type and nature of information and documents that
are subject to examination and copying by unit owners pursuant to
section 5311.091 of the Revised Code, including the times and
location at which items may be examined or copied and any required
fee for copying the information or documents.
(C)(1) The unit owners association shall be established not
later than the date that the deed or other evidence of ownership
is filed for record following the first sale of a condominium
ownership interest in a condominium development. Membership in the
unit owners association shall be limited to unit owners, and all
unit owners shall be members. Until the unit owners association is
established, the developer shall act in all instances in which
action of the unit owners association or its officers is
authorized or required by law or the declaration.
(2)(a) Not later than sixty days after the developer has sold
and conveyed condominium ownership interests appertaining to
twenty-five per cent of the undivided interests in the common
elements in a condominium development, the unit owners association
shall meet, and the unit owners other than the developer shall
elect not less than one-third of the members of the board of
directors.
(b) When computing undivided interests in expandable
condominium properties for purposes of divisions (C) and (D) of
this section, the undivided interests in common elements shall be
computed by comparing the number of units sold and conveyed to the
maximum number of units that may be created, as stated in the
declaration pursuant to division (C)(8) of section 5311.05 of the
Revised Code.
(D)(1) Except as provided in division (C) of this section,
the declaration or bylaws of a condominium development may
authorize the developer or persons the developer designates to
appoint and remove members of the board of directors of the unit
owners association and to exercise the powers and responsibilities
otherwise assigned by law, the declaration, or the bylaws to the
unit owners association or to the board of directors. The
authorization for developer control may extend from the date the
unit owners association is established until sixty days after the
sale and conveyance to purchasers in good faith for value of
condominium ownership interests to which seventy-five per cent of
the undivided interests in the common elements appertain, except
that in no case may the authorization extend for more than five
years after the unit owners association is established if the
declaration includes expandable condominium property or more than
three years after the unit owners association is established if
the declaration does not include expandable condominium property.
(2) If there is a unit owner other than the developer, the
declaration of a condominium development shall not be amended to
increase the scope or the period of the developer's control.
(3) Within sixty days after the expiration of the period
during which the developer has control pursuant to division (D)(1)
of this section, the unit owners association shall meet and elect
all members of the board of directors of the association. The
persons elected shall take office at the end of the meeting during
which they are elected and shall, as soon as reasonably possible,
appoint officers.
(E) The board of directors, or the developer while in control
of the association, may take any measures necessary to incorporate
the unit owners association as a not-for-profit corporation.
(F) If the services of a manager or managing agent are
engaged, the manager or managing agent shall comply with section
5311.15 of the Revised Code.
Sec. 5311.081. (A) Unless otherwise provided in the
declaration or bylaws, the unit owners association, through the
board of directors, shall do both of the following:
(1) Adopt Subject to division (D) of this section, adopt and
amend budgets for revenues, expenditures, and reserves in an
amount adequate to repair and replace major capital items in the
normal course of operations without the necessity of special
assessments, provided that the amount set aside annually for
reserves shall not be less than ten per cent of the budget for
that year unless the reserve requirement is waived annually by the
unit owners exercising not less than a majority of the voting
power of the unit owners association;
(2) Collect assessments for common expenses from unit owners.
(B) Unless otherwise provided in the declaration, the unit
owners association, through the board of directors, may exercise
all powers of the association, including the power to do the
following:
(1) Hire Subject to section 5311.15 of the Revised Code, hire
and fire managing agents, attorneys, accountants, and other
independent contractors and employees that the board determines
are necessary or desirable in the management of the condominium
property and the association;
(2) Commence, defend, intervene in, settle, or compromise any
civil, criminal, or administrative action or proceeding that is in
the name of, or threatened against, the unit owners association,
the board of directors, or the condominium property, or that
involves two or more unit owners and relates to matters affecting
the condominium property;
(3) Enter into contracts and incur liabilities relating to
the operation of the condominium property;
(4) Regulate the use, maintenance, repair, replacement,
modification, and appearance of the condominium property;
(5) Adopt rules that regulate the use or occupancy of units,
the maintenance, repair, replacement, modification, and appearance
of units, common elements, and limited common elements when the
actions regulated by those rules affect common elements or other
units;
(6) Cause additional improvements to be made as part of the
common elements;
(7) Purchase, encumber, and convey units, and, subject to any
restrictions in the declaration or bylaws and with the approvals
required by division (H)(2) or (3) of section 5311.04 of the
Revised Code, acquire an interest in other real property and
encumber or convey that interest. All expenses incurred in
connection with the acquisition, encumbrance, use, and operation
of that interest are common expenses.
(8) Acquire, encumber, and convey or otherwise transfer
personal property;
(9) Hold in the name of the unit owners association the real
property and personal property acquired pursuant to divisions
(B)(7) and (8) of this section;
(10) Grant easements, leases, licenses, and concessions
through or over the common elements;
(11) Impose and collect fees or other charges for the use,
rental, or operation of the common elements or for services
provided to unit owners;
(12) Impose interest and late charges for the late payment of
assessments; impose returned check charges; and, pursuant to
division (C) of this section, impose reasonable enforcement
assessments for violations of the declaration, the bylaws, and the
rules of the unit owners association, and reasonable charges for
damage to the common elements or other property;
(13) Adopt and amend rules that regulate the collection of
delinquent assessments and the application of payments of
delinquent assessments;
(14) Subject to applicable laws, adopt and amend rules that
regulate the termination of utility or other service to a
commercial unit if the unit owner is delinquent in the payment of
an assessment that pays, in whole or in part, the cost of that
service;
(15) Impose reasonable charges for preparing, recording, or
copying amendments to the declaration, resale certificates, or
statements of unpaid assessments;
(16) Enter a unit for bona fide purposes when conditions
exist that involve an imminent risk of damage or harm to common
elements, another unit, or to the health or safety of the
occupants of that unit or another unit;
(17) To the extent provided in the declaration or bylaws,
assign the unit owners association's rights to common assessments,
or other future income, to a lender as security for a loan to the
unit owners association;
(18) Suspend the voting privileges and use of recreational
facilities of a unit owner who is delinquent in the payment of
assessments for more than thirty days;
(19) Purchase insurance and fidelity bonds the directors
consider appropriate or necessary;
(20) Invest excess funds in investments that meet standards
for fiduciary investments under Ohio law;
(21) Exercise powers that are:
(a) Conferred by the declaration or the bylaws of the unit
owners association or the board of directors;
(b) Necessary to incorporate the unit owners association as a
not-for-profit corporation;
(c) Permitted to be exercised in this state by a
not-for-profit corporation;
(d) Necessary and proper for the government and operation of
the unit owners association.
(C)(1) Prior to imposing a charge for damages or an
enforcement assessment pursuant to division (B)(12) of this
section, the board of directors shall give the unit owner a
written notice that includes all of the following:
(a) A description of the property damage or violation;
(b) The amount of the proposed charge or assessment;
(c) A statement that the owner has a right to a hearing
before the board of directors to contest the proposed charge or
assessment;
(d) A statement setting forth the procedures to request a
hearing pursuant to division (C)(2) of this section;
(e) A reasonable date by which the unit owner must cure the
violation to avoid the proposed charge or assessment.
(2)(a) To request a hearing, the owner shall deliver a
written notice to the board of directors not later than the tenth
day after receiving the notice required by division (C)(1) of this
section. If the owner fails to make a timely request for a
hearing, the right to that hearing is waived, and the board may
immediately impose a charge for damages or an enforcement
assessment pursuant to division (C) of this section.
(b) If a unit owner requests a hearing, at least seven days
prior to the hearing the board of directors shall provide the unit
owner with a written notice that includes the date, time, and
location of the hearing.
(3) The board of directors shall not levy a charge or
assessment before holding any hearing requested pursuant to
division (C)(2) of this section.
(4) The unit owners, through the board of directors, may
allow a reasonable time to cure a violation described in division
(B)(12) of this section before imposing a charge or assessment.
(5) Within thirty days following a hearing at which the board
of directors imposes a charge or assessment, the unit owners
association shall deliver a written notice of the charge or
assessment to the unit owner.
(6) Any written notice that division (C) of this section
requires shall be delivered to the unit owner or any occupant of
the unit by personal delivery, by certified mail, return receipt
requested, or by regular mail.
(D) The board of directors shall adopt a proposed budget in
accordance with division (A)(1) of this section for consideration
by the unit owners. Not later than thirty days after adoption of a
proposed budget, the board shall provide to all the unit owners a
summary of the proposed budget including an explanation of the
amount and method of calculating and funding reserves, if
applicable. Starting on the date the board provides the summary of
the proposed budget, the board shall set a date of not less than
sixty days for a meeting of the unit owners to consider approval
of the budget. The board shall give all unit owners seven days
notice of the date, time, and location of the scheduled meeting.
If, at that meeting, a majority of all unit owners votes to reject
the budget, the budget is rejected. Otherwise the budget is
approved. The absence of a quorum at such meeting or participating
in the vote by ballot shall not affect rejection or approval of
the budget. If a proposed budget is rejected, the budget last
approved by the unit owner association continues until unit owners
approve a subsequent budget.
Sec. 5311.082. (A) The division of real estate and
professional licensing shall establish and maintain a registry, in
the form of a database, of the names of condominium associations
in the state. Information in the database shall be available for
public viewing. The division shall include access to the
information in the database on the division's web site and in
other materials, as determined by the superintendent.
(B) The division of real estate and professional licensing
shall perform all of the following duties:
(1) Adopt, amend, and rescind rules in accordance with
Chapter 119. of the Revised Code to carry out sections 5311.082
and 5311.083 of the Revised Code governing the registration of
condominium associations;
(2) Prescribe the form and content of all applications to be
used for registration and renewal of registration pursuant to
section 5311.083 of the Revised Code;
(3) Review applications for registration and issue
registration certificates to condominium associations that meet
the requirements for registration pursuant to section 5311.083 of
the Revised Code;
(4) Collect all fees related to the registration and renewal
of registration certificates for condominium associations;
(5) Maintain a written record of each condominium association
registered with the division, which shall include such
documentation as required by the division. The record shall be
available for inspection by the public through the web site and
copies shall be made available pursuant to division (B) of section
149.43 of the Revised Code.
(6) Hire all division personnel necessary to implement
sections 5311.082 and 5311.083 of the Revised Code.
Sec. 5311.083. (A)(1) The board of directors of a condominium
association shall apply to the division of real estate and
professional licensing in the department of commerce to register
the association on forms prescribed by the division. With the
application, the applicant shall submit any information required
by the division and a registration fee of twenty-five dollars.
(2) The director of commerce, by rule adopted in accordance
with Chapter 119. of the Revised Code, may reduce the amount of
the registration fee required by this section in any year if the
director determines that the total amount of funds the fee is
generating at the amount specified by this section exceeds the
amount of funds the division and the Ohio condominium dispute
resolution board created by section 5311.28 of the Revised Code
need to carry out their powers and duties under this chapter. If
the director so reduces the amount of the registration fee, the
director shall reduce it for all owners or other persons required
to pay the fee under division (A)(1) of this section. If the
director has reduced the fee under division (A)(2) of this
section, the director may later raise it up to the amounts
specified in division (A)(1) of this section if, in any year, the
director determines that the total amount of funds the fee is
generating at the reduced amount is insufficient for the division
and the Ohio condominium dispute resolution board to carry out
their powers and duties under this chapter.
(B) Upon receipt of the completed application form,
documentation, and registration fee, the division shall issue a
certificate of registration to the applicant. The applicant shall
display the certificate in a conspicuous place on the premises of
the condominium property for which the registration was obtained.
(C) Except as otherwise provided in this division, each
registration issued pursuant to this section shall expire annually
on the thirtieth day of June and may be renewed. The renewal fee
shall be the same as the initial registration fee prescribed in
division (A) of this section.
(D) All registration and renewal fees collected pursuant to
this section shall be paid into the state treasury to the credit
of the division of real estate and professional licensing in the
department of commerce to be used by the division to carry out its
powers and duties under this chapter and by the Ohio condominium
dispute resolution board created by section 5311.28 of the Revised
Code.
Sec. 5311.09. (A)(1) The unit owners association shall keep
all of the following:
(a) Correct and complete books and records of account that
specify the receipts and expenditures relating to the common
elements and other common receipts and expenses;
(b) Records showing the allocation, distribution, and
collection of the common profits, losses, and expenses among and
from the unit owners;
(c) Minutes of the meetings of the association and the board
of directors;
(d) Records of the names, in alphabetical order, and
addresses of the unit owners and their respective undivided
interests in the common elements;
(e) Records showing the names and addresses of the members of
the board of directors and association officers;
(f) Records of all actions taken without a meeting of the
board of directors;
(g) The original or restated documents described in division
(B)(1)(b) of this section;
(h) All financial statements and tax returns, which shall be
kept for a minimum of three years;
(i) All current contracts into which the condominium
development has entered;
(j) Records of approvals or denials for requests for design
or architectural approval from the board of directors or the unit
owners association;
(k) Ballots, proxies, and other voting records of the board
of directors and the unit owners association, which shall be kept
for a minimum of one year.
(2) Within thirty days after a unit owner obtains a
condominium ownership interest, the unit owner shall provide the
following information in writing to the unit owners association
through the board of directors:
(a) The home address, home and business mailing addresses,
and the home and business telephone numbers of the unit owner and
all occupants of the unit;
(b) The name, business address, and business telephone number
of any person who manages the owner's unit as an agent of that
owner.
(3) Within thirty days after a change in any information that
division (A)(2) of this section requires, a unit owner shall
notify the association, through the board of directors, in writing
of the change. When the board of directors requests, a unit owner
shall verify or update the information.
(B)(1) When elected members of a board of directors of a unit
owners association take control of the association, the declarant
or developer shall deliver to the board correct and complete
copies of all of the following:
(a) The books, records, and minutes referred to in division
(A) of this section;
(b) The declaration, the bylaws, the drawings prepared
pursuant to section 5311.07 of the Revised Code, as recorded, and
any articles of incorporation of the unit owners association, as
recorded;
(c) Except in the case of a conversion condominium,
documents, information, and sources of information concerning the
location of underground utility lines, and plans and
specifications that are not proprietary or copyrighted, of the
buildings, other improvements, and structures of the condominium
property that are reasonably available to the developer, but only
in connection with condominium developments declared on or after
the effective date of this amendment July 20, 2004, and
condominium developments that are declared prior to that date but
originally built or constructed on or after that date.
(2) The board of directors may commence a civil action on
behalf of the unit owners association in the court of common pleas
of the county in which the condominium property is located to
obtain injunctive relief or recover damages for harm resulting
from the declarant's or developer's failure to comply with
division (B)(1) of this section.
Sec. 5311.091. (A)(1) Except as otherwise prohibited by this
section, any member of a unit owners association or any manager or
managing agent of the condominium property may examine and copy
the books, records, and minutes information described in division
(A) of section 5311.09 of the Revised Code pursuant to reasonable
standards set forth in the declaration, bylaws, or rules the board
promulgates, which may include, but are not limited to, standards
governing the type of documents that are subject to examination
and copying, the times and locations at which those documents may
be examined or copied, and the specification of a reasonable fee
for copying the documents or the supervision of examination. A
member of the unit owners association, manager, or managing agent
desiring to examine or copy the information shall submit a notice
five days in advance of the date of examination.
(2) Unless otherwise provided in the declaration or bylaws
pursuant to division (B)(6) of section 5311.08 of the Revised
Code, the board of directors may establish a policy requiring a
unit owner, manager, or managing agent that requests records in
accordance with division (A)(1) of this section to pay a
reasonable charge for copies of the records or supervision for
examination of the records.
(B) The unit owners association is not required to permit the
examination and copying of any of the following from books,
records, and minutes:
(1) Information that pertains to condominium property-related
personnel matters;
(2) Communications with legal counsel or attorney work
product pertaining to pending litigation or other condominium
property-related matters;
(3) Information that pertains to contracts or transactions
currently under negotiation, or information that is contained in a
contract or other agreement containing confidentiality
requirements and that is subject to those requirements;
(4) Information that relates to the enforcement of the
declaration, bylaws, or rules of the unit owners association
against unit owners;
(5) Information the disclosure of which is prohibited by
state or federal law.
Sec. 5311.15. No manager or managing agent of a condominium
development containing more than ten units shall manage or be
hired by a unit owners association pursuant to sections 5311.08
and 5311.081 of the Revised Code unless the manager or managing
agent holds a current and active real estate broker's license
issued under Chapter 4735. of the Revised Code.
Sec. 5311.22. (A) Unless otherwise provided in the
declaration or bylaws, each unit owner may exercise that
percentage of the total voting power of all unit owners on any
question for which the vote of unit owners is permitted or
required that is equivalent to the undivided interest in the
common elements appurtenant to the owner's unit.
(B) Fiduciaries who are owners of record of a unit or units
may vote their respective interests as unit owners. Unless
otherwise provided in the declaration or bylaws, if two or more
persons, whether fiduciaries, tenants in common, or otherwise, own
undivided interests in a unit, each person may exercise the
proportion of the voting power of all of the owners of the unit
that is equivalent to the person's proportionate undivided
interest in the unit.
(C) A fiduciary for a unit owner or of the estate of a unit
owner may vote as though the fiduciary were the unit owner when
the fiduciary has furnished to the unit owners association proof,
satisfactory to it, of the fiduciary's appointment and
qualification as an executor under the last will of a deceased
unit owner, an administrator of the estate of a deceased unit
owner, a guardian, committee, or conservator of the estate of a
minor or incompetent who is a unit owner, a trustee in bankruptcy
of a unit owner, a statutory or judicial receiver or liquidator of
the estate or affairs of a unit owner, or an assignee for the
benefit of creditors of a unit owner.
(D) When any fiduciary or representative of a unit owner who
is not described in division (C) of this section has furnished the
unit owners association with satisfactory proof of authority, that
person may vote as though a unit owner.
(E) Unless otherwise provided in the declaration or bylaws,
votes allocated to a unit may be cast by a directed or undirected
proxy executed by a unit owner, provided that a person shall not
cast votes representing more than fifteen per cent of the votes in
the unit owners association pursuant to undirected proxies.
Sec. 5311.28. (A) There is hereby created the Ohio
condominium dispute resolution board, consisting of seven members
who shall be appointed by the governor, with the advice and
consent of the senate. The board shall be comprised of the
following members:
(1) Two members shall be condominium unit owners and members
of a condominium unit owners association, but not members of a
condominium unit owners association board of directors. One of
these members shall be from a small association and one shall be
from a large association.
(2) Two members shall be members of a condominium unit
association board of directors. One of these members shall be from
a small association and one shall be from a large association.
(3) One member shall be a certified public accountant.
(4) One member shall be a real estate attorney.
(5) One member shall represent the public and be a
non-condominium property homeowner.
(B)(1) Within a reasonable time, the governor shall make
initial appointments to the board. The initial members of the
board shall serve staggered terms ending on the thirtieth day of
June one, two, three, four, or five years after appointment, as
determined by the governor. Thereafter, terms of office shall be
for five years, commencing on the first day of July and ending on
the thirtieth day of June. Each member shall hold office from the
date of appointment until the end of the term for which appointed.
No more than four members shall be members of any one political
party. Each member, before entering upon the duties of office,
shall subscribe to and file with the secretary of state the
constitutional oath of office. The governor may remove any member
for misconduct, neglect of duty, incapacity, or malfeasance in
accordance with section 3.04 of the Revised Code. All vacancies
that occur shall be filled in the manner prescribed for the
regular appointments to the board. Any member appointed to fill a
vacancy occurring prior to the expiration of the term for which
the member's predecessor was appointed shall hold office for the
remainder of such term. Any member shall continue in office
subsequent to the expiration date of the member's term until the
member's successor takes office, or until a period of sixty days
has elapsed, whichever occurs first. No member shall hold office
for more than two consecutive full terms.
(2) Annually, upon the qualification of the member appointed
in such year, the board shall organize by selecting from its
members a chairperson, vice-chairperson, and secretary, and shall
do all things necessary and proper to carry out and enforce this
chapter.
The chairperson or vice-chairperson may do all of the
following:
(d) Compel the production of books, papers, records, and
other forms of evidence;
(e) Fix the time and place for hearing any matter related to
compliance with sections 5311.08, 5311.081, 5311.083, 5311.09, and
5311.091 of the Revised Code.
(3) A majority of the members of the board shall constitute a
quorum, but a lesser number may adjourn from time to time.
(4) Members of the board shall receive no compensation but
shall be reimbursed for their actual and necessary expenses
incurred in the discharge of their duties.
(C) The division of real estate and professional licensing in
the department of commerce shall provide the board with meeting
space, staff services, and other technical assistance required by
the board in carrying out its duties pursuant to sections 5311.29
to 5311.33 of the Revised Code.
(D) As used in this section:
(1) "Small association" means a condominium development with
fifty units or less;
(2) "Large association" means a condominium development with
more than fifty units.
Sec. 5311.29. The Ohio condominium dispute resolution board,
the director of commerce, or the superintendent of real estate and
professional licensing may compel, by order or subpoena, the
attendance of witnesses to testify in relation to any matter over
which the board, director, or superintendent has jurisdiction and
which is the subject of inquiry and investigation by the board,
director, or superintendent, and require the production of any
book, paper, or document pertaining to such matter. For such
purpose, the board, director, or superintendent shall have the
same power as judges of county courts to administer oaths, compel
the attendance of witnesses, and punish them for refusal to
testify. Service of the subpoena may be made by sheriffs or
constables, or by certified mail, return receipt requested, and
the subpoena shall be deemed served on the date delivery is made
or the date the person refused to accept delivery. Witnesses shall
receive, after their appearance before the board or
superintendent, the fees and mileage provided for under section
119.094 of the Revised Code. If two or more witnesses travel
together in the same vehicle, the mileage fee shall be paid to
only one of those witnesses, but the witnesses may agree to divide
the fee among themselves in any manner.
In addition to the powers granted to the board, director, and
superintendent under this section, in case any person fails to
file any statement or report, obey any subpoena, give testimony,
answer questions, or produce any books, records, or papers as
required by the board, director, or superintendent under this
chapter, the court of common pleas of any county in the state,
upon application made to it by the board, director, or
superintendent setting forth such failure, may make an order
awarding process of subpoena or subpoena duces tecum for the
person to appear and testify before the board, director, or
superintendent, and may order any person to give testimony and
answer questions, and to produce books, records, or papers, as
required by the board or superintendent. Upon the filing of such
order in the office of the clerk of the court of common pleas, the
clerk, under the seal of the court, shall issue process of
subpoena for the person to appear before the board or
superintendent at a time and place named in the subpoena, and each
day thereafter until the examination of such person is completed.
The subpoena may contain a direction that the witness bring with
the witness to the examination any books, records, or papers
mentioned in the subpoena. The clerk shall also issue, under the
seal of the court, such other orders, in reference to the
examination, appearance, and production of books, records, or
papers, as the court directs. If any person so summoned by
subpoena fails to obey the subpoena, to give testimony, to answer
questions as required, or to obey an order of the court, the
court, on motion supported by proof, may order an attachment for
contempt to be issued against the person charged with disobedience
of any order or injunction issued by the court under this chapter.
If the person is brought before the court by virtue of the
attachment, and if upon a hearing the disobedience appears, the
court may order the offender to be committed and kept in close
custody.
Sec. 5311.30. (A) The Ohio condominium dispute resolution
board is a part of the department of commerce for administrative
purposes. The director of commerce is ex officio the executive
officer of the board, or the director may appoint the
superintendent of real estate and professional licensing, if a
superintendent is designated pursuant to section 4735.05 of the
Revised Code, to act as executive officer of the board.
(B) The director, the superintendent, or the board, except as
otherwise provided, shall do all of the following:
(1) Hear and investigate all of the following:
(a) General complaints and disputes between a unit owner, a
unit owners association, or a board of directors;
(b) Requests for elections monitoring and oversight of unit
owners associations and boards of directors;
(c) Disputes over access to records of a unit owners
association or board of directors.
(2) Establish and maintain an investigation and audit section
to investigate complaints and conduct inspections, audits, and
other inquiries as in the judgment of the director,
superintendent, or board are appropriate. The investigators or
auditors have the right to review and audit the records described
in division (A)(1) of section 5311.09 of the Revised Code during
normal business hours.
(C) The director, superintendent, or board may, in connection
with investigations and audits under division (B) of this section,
subpoena witnesses as provided in section 5311.29 of the Revised
Code.
(D) All information that is obtained by the board,
investigators, and auditors performing investigations or
conducting inspections, audits, and other inquiries pursuant to
division (B) of this section and all reports, documents, and other
work products that arise from that information and that are
prepared by the board, investigators, auditors, or other personnel
of the department, shall be held in confidence by the director,
superintendent, or board, the investigators and auditors, and
other personnel of the department. All information obtained by the
board, investigators, or auditors from an informal mediation
meeting held pursuant to section 5311.31 of the Revised Code,
including the agreement to mediate and the accommodation
agreement, shall be held in confidence by the director,
superintendent, or board, investigators, auditors, and other
personnel of the department.
Sec. 5311.31. The Ohio condominium dispute resolution board
shall perform all of the following duties:
(A) Adopt, amend, and rescind such rules in accordance with
Chapter 119. of the Revised Code as are necessary in carrying out
sections 5311.29 to 5311.33 of the Revised Code, including rules
relative to the following:
(1) Transacting the board's business and managing its
affairs;
(2) Establishing procedures for receiving, reviewing, and
responding to complaints filed pursuant to section 5311.32 of the
Revised Code;
(3) Conducting investigations in response to complaints filed
pursuant to division (A) of section 5311.32 of the Revised Code;
(4) Resolving complaints by using informal techniques of
mediation, conciliation, and persuasion, including requiring the
parties involved in a complaint to be given prompt notice of any
offers to resolve disputes and responses thereto;
(5) Advising all parties making a complaint, or who are the
subject of a complaint, of any recommendations or findings of fact
made by the board with respect to the complaint;
(6) Requesting the party who has filed a complaint or is the
subject of a complaint, and is affected by recommendations of the
board made with respect to the complaint, to notify the board
within a time specified by the board of any action the party has
taken in response to the board's recommendations;
(7) Conducting nonpublic hearings and maintaining board
proceedings and records as confidential, notwithstanding sections
121.22 and 149.43 of the Revised Code when the board determines
that the nature of the complaints merits that action;
(8) Determining the method to be used in serving notices as
required by section 5311.32 of the Revised Code.
(B) Publicize information concerning the existence and duties
of the board and the procedure for filing complaints pursuant to
section 5311.32 of the Revised Code;
(C) Conduct hearings on complaints pursuant to section
5311.32 of the Revised Code;
(D) Submit at least annually by the thirty-first day of March
a report on the board's activities of the immediately preceding
calendar year to the governor and the majority and minority
leaders of the senate and house of representatives. The report
shall indicate the total number of complaints received, initiated,
and investigated under sections 5311.32 and 5311.33 of the Revised
Code; the total number of complaints for which hearings were held;
and the total number of referrals made to prosecuting attorneys
pursuant to section 5311.33 of the Revised Code.
(E) Review, at least once each year, all actions taken by the
prosecuting attorneys in response to referrals made to them by the
board, director of commerce, or the superintendent of the division
of real estate and professional licensing in the department of
commerce. The board shall include in the report required in
division (D) of this section information regarding the nature of
the inappropriate conduct alleged in each referral and the status
or disposition made of each referral occurring during the
preceding two years.
(F) Perform all functions as are necessary in administering
and enforcing sections 5311.29 to 5311.33 of the Revised Code.
Sec. 5311.32. (A) Any person may file a complaint regarding
the activity, practice, policy, or procedure of, or regarding an
alleged violation of section 5311.08, 5311.081, 5311.09, or
5311.091 of the Revised Code by, any board of directors of a
condominium association registered pursuant to section 5311.083 of
the Revised Code that adversely affects or may adversely affect
the interest of a unit owner. All complaints shall be in writing
and submitted to the division of real estate in the department of
commerce on forms provided by the division.
(B) With respect to complaints filed pursuant to division (A)
of this section, the division of real estate and professional
licensing shall do all of the following:
(1) Acknowledge receipt of the complaint by sending written
notice to the person who filed the complaint not more than twenty
days after receipt of the complaint;
(2) Send written notice of the complaint within seven days
after receipt of the complaint to the entity that is the subject
of the complaint;
(3) Before taking further action, allow the entity that is
the subject of a complaint thirty days after the date the division
sends notice of the complaint to respond to the division with
respect to the complaint.
(C) The condominium dispute resolution board shall hear each
complaint filed pursuant to division (A) of this section within
one hundred eighty days after its filing, unless it has been
resolved by the parties to the complaint.
Sec. 5311.33. (A) The Ohio condominium dispute resolution
board, on its own motion or as a result of a complaint received
pursuant to section 5311.32 of the Revised Code and with good
cause shown, shall investigate or cause to be investigated alleged
violations of sections 5311.08, 5311.081, 5311.09, and 5311.091 of
the Revised Code. If the board, the director of commerce, or the
superintendent of the division of real estate and professional
licensing in the department of commerce believes that a violation
has occurred, the board, director, or superintendent shall request
the prosecuting attorney of the county in which the alleged
violation occurred to initiate such proceedings as are
appropriate.
(B) The board, at any time, may dismiss a complaint if it
determines there is not good cause shown for the complaint. If the
board dismisses a complaint, it shall notify the person who filed
the complaint within twenty days of reaching its decision and
identify the reason why the complaint was dismissed.
(D) When necessary for the division of real estate and
professional licensing to perform the duties required by sections
5311.32 and 5311.33 of the Revised Code, the superintendent of the
division may issue subpoenas and compel the production of books,
papers, records, and other forms of evidence.
Section 2. That existing sections 5311.08, 5311.081,
5211.09, 5311.091, and 5311.22 of the Revised Code are hereby
repealed.
Section 3. Sections 5311.082, 5311.083, and 5311.15 of the
Revised Code, as enacted by this act, shall take effect one
hundred twenty days after the effective date of this act. During
that period, the Superintendent of Real Estate and Professional
Licensing shall collect and process applications for condominium
association registration and shall issue certificates of
registration. During that time, no association is required to have
a certificate of registration.
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