PRINTER'S NO. 2604
No. 1903 Session of 2005
INTRODUCED BY SCHRODER, ARMSTRONG, CALTAGIRONE, CRAHALLA,
DENLINGER, KIRKLAND, STEIL AND E. Z. TAYLOR, JULY 28, 2005
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 28, 2005
AN ACT
1 Amending Title 68 (Real and Personal Property) of the
2 Pennsylvania Consolidated Statutes, further providing, in
3 management of planned communities, for quorums; and providing
4 for management of substantial planned communities.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 5309 of Title 68 of the Pennsylvania
8 Consolidated Statutes is amended by adding a subsection to read:
9 § 5309. Quorums.
10 * * *
11 (c) Subdivisions of the executive board.--Unless the bylaws
12 specify a different percentage, a quorum is deemed present
13 throughout a meeting of a committee, commission or other entity
14 that is a subdivision of the executive board if at least 50% of
15 the designated members of the committee, commission or other
16 entity are present at the beginning of the meeting.
17 Section 2. Title 68 is amended by adding a section to read:
18 § 5321. Management of substantial planned communities.
19 (a) Scope.--
1 (1) A substantial planned community established after
2 the effective date of this section shall adopt bylaws in
3 compliance with the provisions of this section.
4 (2) A substantial planned community established on or
5 before the effective date of this section may adopt bylaws in
6 compliance with the provisions of this section.
7 (b) Unfair trade practice.--Notwithstanding the provisions
8 of section 5114(b) (relating to remedies to be liberally
9 administered), a violation of this subpart involving a
10 substantial planned community that has not adopted bylaws in
11 compliance with the provisions of this section shall constitute
12 an unfair trade practice, shall be deemed unlawful and may be
13 enforced by the Attorney General.
14 (c) Mediation and arbitration.--
15 (1) The bylaws shall establish procedures for mediation
16 and arbitration of disputes between:
17 (i) two or more unit owners; or
18 (ii) a unit owner and the association.
19 Mediation or arbitration shall be limited to disputes where
20 all parties agree to either mediation or arbitration.
21 (2) Costs and fees associated with mediation, excluding
22 attorney fees, shall be assessed equally against all parties
23 to a dispute.
24 (3) Costs and fees associated with arbitration,
25 excluding attorney fees, shall be assessed equally against
26 all parties to a dispute unless one party substantially
27 prevails in an arbitration, in which case costs and fees of
28 the arbitrators shall be assessed against the other party or
29 parties.
30 (d) Meetings.--The bylaws shall, in addition to the
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1 provisions of section 5308 (relating to meetings), provide that:
2 (1) A meeting of the association, executive board or any
3 committee, commission or other entity that is a subdivision
4 of the executive board, except an executive board meeting
5 under paragraph (4), shall be open to unit owners and that an
6 appropriate officer of the association shall provide notice
7 as follows:
8 (i) Notice of an association meeting shall be
9 provided pursuant to section 5308.
10 (ii) Notice of any other meeting, except an
11 executive board meeting under paragraph (4) or emergency
12 meeting under paragraph (5), shall be provided as
13 specified in the bylaws and shall, at a minimum:
14 (A) Include the time and place of the meeting
15 and the items on the agenda.
16 (B) Be posted at either the main entrance to the
17 substantial planned community or at a central
18 location within the substantial planned community
19 designated for such purposes.
20 All official action shall be taken at a meeting under this
21 paragraph or an emergency meeting under paragraph (5).
22 (2) (i) Except during an executive board meeting under
23 paragraph (4), written minutes shall be kept of any
24 association meeting, including the time and date of the
25 meeting, the number of unit owners in attendance, the
26 substance of all official actions taken at the meeting
27 and a record of votes on official action by individual
28 executive board members or officers.
29 (ii) Board-approved minutes of any meeting, except
30 executive board meetings under paragraph (4), shall be
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1 made reasonably available for examination by any unit
2 owner and authorized agents no later than 45 days after a
3 meeting or 15 days after a subsequent association
4 meeting, whichever is greater.
5 (3) Unit owners shall be provided at any meeting, except
6 an executive board meeting under paragraph (4), with a
7 reasonable opportunity to comment on matters of concern,
8 deliberation or official action which are or may be under
9 consideration at that meeting.
10 (4) (i) The executive board may exclude unit owners
11 from an executive board meeting. An executive board
12 meeting shall only be convened during an open meeting
13 under paragraph (1) or (5) upon an affirmative vote of a
14 majority of the members of the executive board in
15 attendance at the open meeting.
16 (ii) An executive board meeting may be held for any
17 of the following reasons, which reason shall be announced
18 at the open meeting prior to the executive board meeting:
19 (A) To discuss any matter involving the
20 employment, termination of employment, terms and
21 conditions of employment, evaluation of performance,
22 promotion or disciplining of any specific prospective
23 employee or current employee employed by the
24 association, or former employee, provided, however,
25 that the individual employees whose rights could be
26 adversely affected may request in writing that the
27 matter or matters be discussed at an open meeting.
28 (B) To consider the purchase or lease of real
29 property up to the time an option to purchase or
30 lease the real property is obtained or up to the time
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1 an agreement to purchase or lease such property is
2 obtained if the agreement is obtained directly
3 without an option.
4 (C) To consult with its attorney or other
5 professional advisor regarding any information or
6 strategy in connection with litigation or with an
7 issue on which an identifiable complaint is expected
8 to be filed.
9 (D) To review and discuss business which, if
10 conducted in public, would violate a lawful privilege
11 or lead to the disclosure of information or
12 confidentiality protected by law.
13 (iii) Official action on discussion held at an
14 executive board meeting shall be taken at an open meeting
15 and no executive board meeting shall be used as a
16 subterfuge to defeat the purposes of paragraph (1) or
17 (5).
18 (iv) The provisions of this paragraph shall not
19 apply to any meeting involving the appointment or
20 selection of any person to fill a vacancy in the
21 executive board.
22 (5) (i) The executive board may call an emergency
23 meeting for the purpose of dealing with a real or
24 potential emergency involving a clear and present danger
25 to life or property.
26 (ii) An emergency meeting shall be open to unit
27 owners and shall be subject to the requirements of
28 paragraphs (2) and (3).
29 (iii) The bylaws shall specify which member of the
30 association's executive board shall provide notice of any
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1 emergency meeting and shall further specify the means and
2 methods of providing such notice, including, but not
3 limited to, posting notice at either the main entrance to
4 the substantial planned community or at a central
5 location within the substantial planned community
6 designated for such purposes.
7 (6) The bylaws shall provide for rules of order to
8 govern meetings under paragraphs (1) and (5). The rules may
9 be based on Robert's Rules of Order or any other established
10 set of rules of order or parliamentary procedure.
11 (e) Executive board proxies.--The bylaws shall, in addition
12 to the provisions of section 5310 (relating to voting; proxies),
13 provide that no vote may be cast pursuant to a proxy during a
14 vote of the executive board.
15 (f) Records.--The bylaws shall, in addition to the
16 provisions of section 5316 (relating to association records),
17 provide that:
18 (1) The association shall keep detailed records of its
19 operation and administration, including financial records as
20 provided in section 5316(a).
21 (2) (i) Books and records kept by or on behalf of an
22 association shall be available for examination and
23 copying by any unit owner, or the unit owner's authorized
24 agent, to protect the unit owner's interest. This right
25 of examination may be exercised only during reasonable
26 business hours or at a time and location mutually
27 convenient to the association and the unit owner.
28 (ii) Books and records kept by or on behalf of an
29 association may be withheld from inspection to the extent
30 they concern any of the following:
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1 (A) Personnel records.
2 (B) An individual's medical records.
3 (C) Records relating to business transactions
4 that are currently in negotiation.
5 (D) Privileged communications with legal
6 counsel.
7 (E) Complaints against a unit owner.
8 (F) Records of executive board meetings under
9 subsection (d)(4).
10 (G) Information which, if disclosed, would
11 constitute an unwarranted invasion of privacy under
12 Federal or State law.
13 (iii) The association may impose and collect a
14 charge, reflecting the actual costs of materials and
15 labor, prior to providing copies of any books and records
16 under this paragraph.
17 (g) Definitions.--As used in this section, the following
18 words and phrases shall have the meanings given to them in this
19 subsection:
20 "Meeting." A prearranged gathering held for the purpose of
21 deliberating association business or taking official action of:
22 (1) an association, which is attended or participated in
23 by a quorum of unit owners;
24 (2) an executive board, which is attended or
25 participated in by a quorum of the executive board; or
26 (3) any committee, commission or other entity that is a
27 subdivision of the executive board of the association which
28 is attended or participated in by a quorum of the committee,
29 commission or entity.
30 "Official action." Any of the following:
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1 (1) The establishment of policy by an association.
2 (2) A decision on association business made by an
3 association.
4 (3) A vote taken by an association, executive board or
5 any committee, commission or other entity that is a
6 subdivision of the executive board of an association on any
7 proposal, resolution, rule, regulation or report.
8 "Substantial planned community." A planned community
9 consisting of more than 12 units created before, on or after the
10 effective date of this section. The term shall not include a
11 planned community in which all units are restricted exclusively
12 to nonresidential use.
13 Section 3. This act shall take effect in one year.
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