1Amending Title 68 (Real and Personal Property) of the
2Pennsylvania Consolidated Statutes, further providing for
3applicability of provisions relating to planned communities,
4for meetings and for quorums of unit owners' associations of
5planned communities, for proxies and for association records.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 5102(b) of Title 68 of the Pennsylvania
9Consolidated Statutes is amended and the section is amended by
10adding a subsection to read:

11§ 5102. Applicability.

12* * *

13(b) [Retroactivity] General retroactivity.--Except as
14provided in subsection (c), sections 5105, 5106, 5107, 5203
15(relating to construction and validity of declaration and
16bylaws), 5204 (relating to description of units), 5218, 5219
17(relating to amendment of declaration), 5223 (relating to merger
18or consolidation of planned community), 5302(a)(1) through (6)
19and (11) through (15) (relating to power of unit owners'

1association), 5311 (relating to tort and contract liability),
25315 (relating to lien for assessments), [5316 (relating to
3association records),] 5407 (relating to resales of units) and
45412 (relating to effect of violations on rights of action) and
5section 5103 (relating to definitions), to the extent necessary
6in construing any of those sections, apply to all planned
7communities created in this Commonwealth before the effective
8date of this subpart; but those sections apply only with respect
9to events and circumstances occurring after the effective date
10of this subpart and do not invalidate specific provisions
11contained in existing provisions of the declaration, bylaws or
12plats and plans of those planned communities.

13* * *

14(b.2) Legislative finding and retroactivity of specific
15provisions.--

16(1) It is hereby determined and declared as a matter of
17legislative finding that certain aspects of local governance
18involving open meetings, open records and basic parliamentary
19procedure relating to proxy voting and quorums are so vital
20to the sound administration of planned communities that
21retroactive application of these rules is within the police
22powers of the Commonwealth.

23(2) Notwithstanding any provision of law or any
24declarations or bylaws to the contrary, sections 5308
25(relating to meetings), 5309 (relating to quorums), 5310(b.1)
26(relating to voting; proxies) and 5316 (relating to
27association records) apply to all planned communities created
28in this Commonwealth before the effective date of this
29subsection except planned communities under subsections (a)
30(1), (c) and (e).

1* * *

2Section 2. Section 5308 of Title 68 is amended to read:

3§ 5308. Meetings.

4[The bylaws shall require that]

5(a) Open meetings and notice.--Notwithstanding any 
6provisions of any declaration or bylaws to the contrary,
7meetings of the association shall be held at least once each
8year [and shall provide for special meetings.] and all meetings 
9of the association, executive board or any committee, commission 
10or other entity which is a subdivision of the executive board of 
11the association, except executive board meetings under 
12subsection (d), shall be open to unit owners. The bylaws shall
13specify which of the association's officers, not less than ten
14nor more than 60 days in advance of any meeting, except 
15executive board meetings under subsection (d) or emergency 
16meetings under subsection (e), shall cause notice to be hand
17delivered or sent prepaid by United States mail to the mailing
18address of each unit or to any other mailing address designated
19in writing by the unit owner. The notice of any meeting [must]
20shall state the time and place of the meeting and the items on
21the agenda, including the general nature of any proposed
22amendment to the declaration or bylaws; any budget or assessment
23changes; and, where the declaration or bylaws require approval
24of unit owners, any proposal to remove a director or officer.
25All official action shall be taken at a meeting under this 
26subsection or an emergency meeting under subsection (e).

27(b) Minutes.--Except during executive board meetings under
28subsection (d), written minutes shall be kept of all association
29meetings, including the time and date of the meeting, the number
30of unit owners in attendance, the substance of all official

1actions taken at the meeting and a record of votes on official
2action by individual executive board members or officers. Board-
3approved minutes of any meeting, except executive board meetings
4under subsection (d), shall be made reasonably available for
5examination by any unit owner and authorized agent of any unit
6owner no later than 45 days after a meeting.

7(c) Recording devices and unit owner participation.--

8(1) A unit owner shall be:

9(i) Authorized to use recording devices to record
10the proceedings at any meeting except an executive board
11meeting under subsection (d).

12(ii) Provided at any meeting, except an executive
13board meeting under subsection (d), with a reasonable
14opportunity to comment on matters of concern,
15deliberation or official action which are or may be under
16consideration at that meeting.

17(2) Nothing in this section shall be construed to
18prevent an association from adopting bylaws governing the
19reasonable use of recording devices.

20(d) Executive board meetings.--

21(1) The executive board may exclude unit owners from an
22executive board meeting. Executive board meetings shall only
23be convened during an open meeting under subsection (a) or
24(e) upon an affirmative vote of a majority of the members of
25the executive board in attendance at the open meeting. The
26reason for holding the executive board meeting shall be
27announced at the open meeting prior to the executive board
28meeting. Official action on discussions held at an executive
29board meeting shall be taken at an open meeting, and no
30executive board meeting shall be used as a subterfuge to

1defeat the purposes of subsection (a) or (e). An executive
2board meeting may be held for one or more of the following
3reasons:

4(i) To discuss any matter involving the employment,
5termination of employment, terms and conditions of
6employment, evaluation of performance, promotion or
7disciplining of any specific prospective employee or
8current employee employed by the association, or former
9employee, provided, however, that the individual
10employees whose rights could be adversely affected may
11request, in writing, that the matter or matters be
12discussed at an open meeting.

13(ii) To consider the purchase or lease of real
14property up to the time an option to purchase or lease
15such property is obtained or up to the time an agreement
16to purchase or lease such property is obtained if the
17agreement is obtained directly without an option.

18(iii) To consult with the executive board's attorney
19or other professional adviser regarding information or
20strategy in connection with litigation or with issues on
21which identifiable complaints are expected to be filed.

22(iv) To review and discuss business which, if
23conducted in public, would violate a lawful privilege or
24lead to the disclosure of information or confidentiality
25protected by law.

26(2) Nothing in paragraph (1)(i) shall apply to any
27meeting involving the appointment or selection of any person
28to fill a vacancy on the executive board.

29(e) Emergency meetings.--The executive board may call an
30emergency meeting for the purpose of dealing with a real or

1potential emergency involving a clear and present danger to life
2or property. An emergency meeting shall be open to unit owners
3and shall be subject to the requirements of subsections (b) and
4(c). The bylaws shall specify which member of the association's
5executive board shall be responsible for providing notice of any
6emergency meeting and shall further specify the means and
7methods of providing such notice, including, but not limited to,
8posting notice at either the main entrance to the planned
9community or at a central location within the planned community
10designated for such purposes.

11(f) Rules of order.--The bylaws shall provide for rules of
12order to govern meetings under subsections (a) and (e). The
13rules may be based on Robert's Rules of Order or any other
14established set of rules of order or parliamentary procedure.

15(g) Filing of complaints.--A unit owner may file a complaint
16with the Bureau of Consumer Protection in the Office of Attorney
17General if an association either:

18(1) fails to adopt bylaws as required by this section
19within either 120 days after the termination of any period of
20declarant control of the association or 120 days after the
21effective date of this subsection, whichever is later; or

22(2) violates any provision of this section.

23(h) Penalties.--

24(1) Notwithstanding any provision of the declaration or
25bylaws to the contrary, the unit owners, by a two-thirds vote
26of all unit owners present and entitled to vote at any
27meeting of the unit owners at which a quorum is present, may
28impose a monetary penalty of not less than $50 against any
29member of an executive board, committee or commission or
30other entity which is a subdivision of the executive board

1who participates in a meeting with the intent and purpose of
2violating this section.

3(2) Official action taken at a meeting under subsection
4(a) or (e) in violation of the requirements of this section
5shall be null and void.

6(i) Exemption.--An association shall be exempt from the
7requirements of this section during any period of declarant
8control of the association.

9(j) Definitions.--As used in this section, the following
10words and phrases shall have the meanings given to them in this
11subsection:

12"Meeting." A prearranged gathering held for the purpose of 
13deliberating association business or taking official action of:

14(1) an association, which is attended or participated in
15by a quorum of unit owners;

16(2) an executive board, which is attended or
17participated in by a quorum of the executive board; or

18(3) a committee, commission or other entity which is a
19subdivision of the executive board of the association which
20is attended or participated in by a quorum of the committee,
21commission or entity.

22"Official action." Any of the following:

23(1) The establishment of policy by an association.

24(2) A decision on association business made by an
25association.

26(3) A vote taken by an association, executive board or a
27committee, commission or other entity which is a subdivision
28of the executive board of the association on a proposal,
29resolution, rule, regulation or report.

30Section 3. Sections 5309 and 5310 of Title 68 are amended by

1adding subsections to read:

2§ 5309. Quorums.

3* * *

4(c) Committees, commissions or other entities which are
5subdivisions of the executive board.--Unless the bylaws specify
6a larger percentage, a quorum is deemed present throughout any
7meeting of a committee, commission or other entity which is a
8subdivision of the executive board if at least 50% of the
9designated members of the committee, commission or other entity
10which is a subdivision of the executive board are present at the
11beginning of the meeting.

12§ 5310. Voting; proxies.

13* * *

14(b.1) Executive board proxies.--No vote may be cast under a
15proxy during a vote of the executive board.

16* * *

17Section 4. Section 5316(a) of Title 68 is amended and the
18section is amended by adding subsections to read:

19§ 5316. Association records.

20(a) [Financial] Maintenance of records.--The association
21shall keep [financial records sufficiently detailed to enable
22the association to comply with section 5407 (relating to resales
23of units). All financial and other records shall be made
24reasonably available for examination by any unit owner and
25authorized agents.] records of its operation, administration and 
26finances that are sufficiently detailed to enable the 
27association to comply with section 5407 (relating to resales of 
28units).

29(a.1) Inspection and copying.--

30(1) Books and records kept by or on behalf of an

1association shall be available for examination and copying by
2a unit owner in good standing, or the unit owner's authorized
3agent, to protect the unit owner's interest. This right of
4examination and copying may be exercised only during
5reasonable business hours or at a time and location mutually
6convenient to the association and the unit owner.

7(2) Books and records kept by or on behalf of an
8association may be withheld from examination and copying
9under paragraph (1) to the extent that they concern any of
10the following:

11(i) Personnel records.

12(ii) An individual's medical records.

13(iii) Records relating to business transactions that
14are currently in negotiation.

15(iv) Privileged communications with legal counsel.

16(v) Complaints against a unit owner.

17(vi) Records of executive board meetings under
18section 5308(d) (relating to meetings).

19(3) The association may impose and collect a charge that
20represents the actual costs of materials and labor prior to
21providing copies of any books and records under this
22subsection.

23* * *

24(d) Penalties.--

25(1) The bylaws shall specify which of the association's
26officers shall be responsible for the maintenance of records
27under subsection (a) and the preparation of financial
28statements under subsection (b).

29(2) Any officer designated under paragraph (1) who fails
30to maintain records or prepare financial statements as

1required by this section shall be subject to a monetary
2penalty of not less than $50. Notwithstanding any provision
3of the declaration or bylaws to the contrary, the unit
4owners, by a two-thirds vote of all unit owners present and
5entitled to vote at any meeting of the unit owners at which a
6quorum is present, may impose the penalty provided by this
7paragraph.

8Section 5. This act shall take effect in 60 days.