PRINTER'S NO. 1149
No. 977 Session of 2007
INTRODUCED BY SCHRODER, CALTAGIRONE, CARROLL, CREIGHTON,
MANDERINO, RAPP, RAYMOND, RUBLEY, STEIL AND THOMAS,
APRIL 2, 2007
REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 2, 2007
AN ACT
1 Amending Title 68 (Real and Personal Property) of the
2 Pennsylvania Consolidated Statutes, further providing, in
3 management of condominiums, cooperatives and planned
4 communities, for quorums; and providing for management of
5 substantial condominiums, substantial cooperatives and
6 substantial planned communities.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 3309 of Title 68 of the Pennsylvania
10 Consolidated Statutes is amended by adding a subsection to read:
11 § 3309. Quorums.
12 * * *
13 (c) Committees and commissions.--Unless the bylaws specify a
14 different percentage, a quorum is deemed present throughout a
15 meeting of a committee, commission or entity that is a
16 subdivision of the executive board if at least 50% of the
17 designated members of the committee, commission or entity are
18 present at the beginning of the meeting.
19 Section 2. Section 3315(b)(2)(i) of Title 68 is amended to
1 read:
2 § 3315. Lien for assessments.
3 * * *
4 (b) Priority of lien.--
5 * * *
6 (2) Limited nondivestiture.--The association's lien for
7 assessments shall be divested by a judicial sale of the unit:
8 (i) As to unpaid common expense assessments made
9 under section 3314(b) (relating to assessments for common
10 expenses) that come due during the six months immediately
11 preceding the date of a judicial sale of a unit in an
12 action to enforce collection of a lien against a unit[.]
13 by a judicial sale, only to the extent that the six
14 months' unpaid assessments are paid out of the proceeds
15 of the sale.
16 * * *
17 Section 3. Title 68 is amended by adding a section to read:
18 § 3321. Management of substantial condominiums.
19 (a) Scope.--
20 (1) A substantial condominium established after the
21 effective date of this section shall adopt bylaws in
22 compliance with the provisions of this section.
23 (2) A substantial condominium established on or before
24 the effective date of this section may adopt bylaws in
25 compliance with the provisions of this section.
26 (b) Unfair trade practice.--Notwithstanding the provisions
27 of section 3113 (relating to remedies to be liberally
28 administered), a violation of this subpart involving a
29 substantial condominium that has not adopted bylaws in
30 compliance with the provisions of this section shall constitute
20070H0977B1149 - 2 -
1 an unfair trade practice, shall be deemed unlawful and may be
2 enforced by the Attorney General.
3 (c) Mediation and arbitration.--
4 (1) The bylaws shall establish procedures for mediation
5 and arbitration of disputes between:
6 (i) two or more unit owners; or
7 (ii) a unit owner and the association.
8 Mediation or arbitration shall be limited to disputes where
9 all parties agree to either mediation or arbitration.
10 (2) Costs and fees associated with mediation, excluding
11 attorney fees, shall be assessed equally against all parties
12 to a dispute.
13 (3) Costs and fees associated with arbitration shall be
14 assessed against all parties to a dispute at the discretion
15 of the arbitrator.
16 (d) Meetings.--The bylaws shall, in addition to the
17 provisions of section 3308 (relating to meetings), provide that:
18 (1) A meeting of the association, executive board or any
19 committee, commission or entity that is a subdivision of the
20 executive board, except an executive session under paragraph
21 (4), shall be open to all unit owners and that an appropriate
22 officer of the association shall provide notice as follows:
23 (i) Notice of an association meeting shall be
24 provided pursuant to section 3308.
25 (ii) Notice of any other meeting, except an
26 executive session under paragraph (4) or emergency
27 meeting under paragraph (5), shall be provided as
28 specified in the bylaws and shall, at a minimum, include
29 the time and place of the meeting and the items on the
30 agenda.
20070H0977B1149 - 3 -
1 All official action shall be taken at a meeting under this
2 paragraph or an emergency meeting under paragraph (5).
3 (2) (i) Except during an executive session under
4 paragraph (4), written minutes shall be kept of any
5 association or executive board meeting, including the
6 time and date of the meeting, the number of unit owners
7 in attendance, the substance of all official actions
8 taken at the meeting and a record of votes on official
9 action by individual executive board members or officers.
10 (ii) Approved minutes of any association or
11 executive board meeting, except executive sessions under
12 paragraph (4), shall be made reasonably available for
13 examination by any unit owner and authorized agents no
14 later than 45 days after the meeting or 15 days after a
15 subsequent association or board meeting, whichever is
16 greater.
17 (3) All unit owners shall be provided at any meeting,
18 except an executive session under paragraph (4), with a
19 reasonable opportunity to comment on matters of concern,
20 deliberation or official action which are or may be under
21 consideration at that meeting.
22 (4) (i) The executive board may exclude unit owners
23 from an executive session. An executive session shall
24 only be convened during an open meeting under paragraph
25 (1) or (5) upon an affirmative vote of a majority of the
26 members of the executive board in attendance at the open
27 meeting.
28 (ii) An executive session may be held for any of the
29 following reasons, which reason shall be announced at the
30 open meeting prior to the executive session:
20070H0977B1149 - 4 -
1 (A) To discuss any matter involving the
2 employment, termination of employment, terms and
3 conditions of employment, evaluation of performance,
4 promotion or disciplining of any specific prospective
5 employee or current employee employed by the
6 association, or former employee, provided, however,
7 that the individual employees whose rights could be
8 adversely affected may request in writing that the
9 matter or matters be discussed at an open meeting.
10 (B) To consider the purchase or lease of real
11 property up to the time an option to purchase or
12 lease the real property is obtained or up to the time
13 an agreement to purchase or lease such property is
14 obtained if the agreement is obtained directly
15 without an option.
16 (C) To consult with its attorney or other
17 professional advisor regarding any information or
18 strategy in connection with litigation or with an
19 issue on which an identifiable complaint is expected
20 to be filed.
21 (D) To review and discuss business which, if
22 conducted in public, would violate a lawful privilege
23 or lead to the disclosure of information or
24 confidentiality protected by law.
25 (iii) Official action on discussion held at an
26 executive session shall be taken at an open meeting, and
27 no executive session shall be used as a subterfuge to
28 defeat the purposes of paragraph (1) or (5).
29 (iv) The provisions of this paragraph shall not
30 apply to any meeting involving the appointment or
20070H0977B1149 - 5 -
1 selection of any person to fill a vacancy in the
2 executive board.
3 (5) (i) The executive board may call an emergency
4 meeting for the purpose of dealing with a real or
5 potential emergency.
6 (ii) An emergency meeting shall be open to unit
7 owners and shall be subject to the requirements of
8 paragraphs (2) and (3).
9 (iii) The bylaws shall specify which member of the
10 association's executive board shall provide notice of any
11 emergency meeting and shall further specify the means and
12 methods of providing such notice.
13 (6) The bylaws shall provide for rules of order to
14 govern meetings under paragraphs (1) and (5). The rules may
15 not be made to violate the intent of this section.
16 (e) Executive board proxies.--The bylaws shall, in addition
17 to the provisions of section 3310 (relating to voting; proxies),
18 provide that no vote may be cast pursuant to a proxy during a
19 vote of the executive board.
20 (f) Records.--The bylaws shall, in addition to the
21 provisions of section 3316 (relating to association records),
22 provide that:
23 (1) The association shall keep detailed records of its
24 operation and administration, including financial records as
25 provided in section 3316.
26 (2) (i) Books and records kept by or on behalf of an
27 association shall be available for examination and
28 copying by any unit owner or the unit owner's authorized
29 agent. This right of examination may be exercised only
30 during reasonable business hours or at a time and
20070H0977B1149 - 6 -
1 location mutually convenient to the association and the
2 unit owner and may not be exercised in bad faith or for
3 any improper purpose, such as to harass another.
4 (ii) Books and records kept by or on behalf of an
5 association may be withheld from inspection to the extent
6 they concern any of the following:
7 (A) Personnel records.
8 (B) An individual's medical records.
9 (C) Records relating to business transactions
10 that are currently in negotiation.
11 (D) Privileged communications with legal
12 counsel.
13 (E) Complaints against a unit owner.
14 (F) Records of executive sessions under
15 subsection (d)(4).
16 (G) Information which, if disclosed, would
17 constitute an unwarranted invasion of privacy under
18 Federal or State law.
19 (iii) The association may impose and collect a
20 charge reflecting the actual costs of materials and labor
21 prior to providing copies of any books and records under
22 this paragraph.
23 (g) Election of executive board members.--
24 (1) The bylaws shall, in addition to the provisions of
25 sections 3303 (relating to executive board members and
26 officers) and 3306(a)(3) (relating to bylaws), provide that
27 candidates for election to the executive board may be
28 nominated from the floor of membership meetings by any unit
29 owner.
30 (2) Bylaws adopted in compliance with the provisions of
20070H0977B1149 - 7 -
1 this subsection shall not apply to the appointment of members
2 of the executive board by the declarant or persons designated
3 by the declarant.
4 (h) Definitions.--As used in this section, the following
5 words and phrases shall have the meanings given to them in this
6 subsection:
7 "Executive session." A meeting of the executive board from
8 which unit owners may be excluded under subsection (d)(4).
9 "Meeting." A prearranged gathering held for the purpose of
10 deliberating association business or taking official action of:
11 (1) an association, which is attended or participated in
12 by a quorum of unit owners;
13 (2) an executive board, which is attended or
14 participated in by a quorum of the executive board; or
15 (3) any committee, commission or entity that is a
16 subdivision of the executive board of the association, which
17 is attended or participated in by a quorum of the committee,
18 commission or entity.
19 "Official action." Any of the following:
20 (1) The establishment of policy by an association.
21 (2) A decision on association business made by an
22 association.
23 (3) A vote taken by an association, executive board or
24 any committee, commission or entity that is a subdivision of
25 the executive board of an association on any proposal,
26 resolution, rule, regulation or report.
27 "Substantial condominium." A condominium consisting of more
28 than 12 units created before, on or after the effective date of
29 this section. The term shall not include a condominium in which
30 all units are restricted exclusively to nonresidential use.
20070H0977B1149 - 8 -
1 Section 4. Section 4309 of Title 68 is amended by adding a
2 subsection to read:
3 § 4309. Quorums.
4 * * *
5 (c) Committees and commissions.--Unless the bylaws specify a
6 different percentage, a quorum is deemed present throughout a
7 meeting of a committee, commission or entity that is a
8 subdivision of the executive board if at least 50% of the
9 designated members of the committee, commission or entity are
10 present at the beginning of the meeting.
11 Section 5. Title 68 is amended by adding a section to read:
12 § 4322. Management of substantial cooperatives.
13 (a) Scope.--
14 (1) A substantial cooperative established after the
15 effective date of this section shall adopt bylaws in
16 compliance with the provisions of this section.
17 (2) A substantial cooperative established on or before
18 the effective date of this section may adopt bylaws in
19 compliance with the provisions of this section.
20 (b) Unfair trade practice.--Notwithstanding the provisions
21 of section 4113 (relating to remedies to be liberally
22 administered), a violation of this subpart involving a
23 substantial cooperative that has not adopted bylaws in
24 compliance with the provisions of this section shall constitute
25 an unfair trade practice, shall be deemed unlawful and may be
26 enforced by the Attorney General.
27 (c) Mediation and arbitration.--
28 (1) The bylaws shall establish procedures for mediation
29 and arbitration of disputes between:
30 (i) two or more proprietary lessees; or
20070H0977B1149 - 9 -
1 (ii) a proprietary lessee and the association.
2 Mediation or arbitration shall be limited to disputes where
3 all parties agree to either mediation or arbitration.
4 (2) Costs and fees associated with mediation, excluding
5 attorney fees, shall be assessed equally against all parties
6 to a dispute.
7 (3) Costs and fees associated with arbitration shall be
8 assessed against all parties to a dispute at the discretion
9 of the arbitrator.
10 (d) Meetings.--The bylaws shall, in addition to the
11 provisions of section 4308 (relating to meetings), provide that:
12 (1) A meeting of the association, executive board or any
13 committee, commission or entity that is a subdivision of the
14 executive board, except an executive session under paragraph
15 (4), shall be open to all proprietary lessees and that an
16 appropriate officer of the association shall provide notice
17 as follows:
18 (i) Notice of an association meeting shall be
19 provided pursuant to section 4308.
20 (ii) Notice of any other meeting, except an
21 executive session under paragraph (4) or emergency
22 meeting under paragraph (5), shall be provided as
23 specified in the bylaws and shall, at a minimum, include
24 the time and place of the meeting and the items on the
25 agenda.
26 All official action shall be taken at a meeting under this
27 paragraph or an emergency meeting under paragraph (5).
28 (2) (i) Except during an executive session under
29 paragraph (4), written minutes shall be kept of any
30 association or executive board meeting, including the
20070H0977B1149 - 10 -
1 time and date of the meeting, the number of proprietary
2 lessees in attendance, the substance of all official
3 actions taken at the meeting and a record of votes on
4 official action by individual executive board members or
5 officers.
6 (ii) Approved minutes of any association or
7 executive board meeting, except executive sessions under
8 paragraph (4), shall be made reasonably available for
9 examination by any proprietary lessees and authorized
10 agents no later than 45 days after the meeting or 15 days
11 after a subsequent association or board meeting,
12 whichever is greater.
13 (3) All proprietary lessees shall be provided at any
14 meeting, except an executive session under paragraph (4),
15 with a reasonable opportunity to comment on matters of
16 concern, deliberation or official action which are or may be
17 under consideration at that meeting.
18 (4) (i) The executive board may exclude proprietary
19 lessees from an executive session. An executive session
20 shall only be convened during an open meeting under
21 paragraph (1) or (5) upon an affirmative vote of a
22 majority of the members of the executive board in
23 attendance at the open meeting.
24 (ii) An executive session may be held for any of the
25 following reasons, which reason shall be announced at the
26 open meeting prior to the executive session:
27 (A) To discuss any matter involving the
28 employment, termination of employment, terms and
29 conditions of employment, evaluation of performance,
30 promotion or disciplining of any specific prospective
20070H0977B1149 - 11 -
1 employee or current employee employed by the
2 association, or former employee, provided, however,
3 that the individual employees whose rights could be
4 adversely affected may request in writing that the
5 matter or matters be discussed at an open meeting.
6 (B) To consider the purchase or lease of real
7 property up to the time an option to purchase or
8 lease the real property is obtained or up to the time
9 an agreement to purchase or lease such property is
10 obtained if the agreement is obtained directly
11 without an option.
12 (C) To consult with its attorney or other
13 professional advisor regarding any information or
14 strategy in connection with litigation or with an
15 issue on which an identifiable complaint is expected
16 to be filed.
17 (D) To review and discuss business which, if
18 conducted in public, would violate a lawful privilege
19 or lead to the disclosure of information or
20 confidentiality protected by law.
21 (iii) Official action on discussion held at an
22 executive session shall be taken at an open meeting, and
23 no executive session shall be used as a subterfuge to
24 defeat the purposes of paragraph (1) or (5).
25 (iv) The provisions of this paragraph shall not
26 apply to any meeting involving the appointment or
27 selection of any person to fill a vacancy in the
28 executive board.
29 (5) (i) The executive board may call an emergency
30 meeting for the purpose of dealing with a real or
20070H0977B1149 - 12 -
1 potential emergency.
2 (ii) An emergency meeting shall be open to
3 proprietary lessees and shall be subject to the
4 requirements of paragraphs (2) and (3).
5 (iii) The bylaws shall specify which member of the
6 association's executive board shall provide notice of any
7 emergency meeting and shall further specify the means and
8 methods of providing such notice.
9 (6) The bylaws shall provide for rules of order to
10 govern meetings under paragraphs (1) and (5). The rules may
11 not be made to violate the intent of this section.
12 (e) Executive board proxies.--The bylaws shall, in addition
13 to the provisions of section 4310 (relating to voting; proxies),
14 provide that no vote may be cast pursuant to a proxy during a
15 vote of the executive board.
16 (f) Records.--The bylaws shall, in addition to the
17 provisions of section 4317 (relating to association records),
18 provide that:
19 (1) The association shall keep detailed records of its
20 operation and administration, including financial records as
21 provided in section 4317.
22 (2) (i) Books and records kept by or on behalf of an
23 association shall be available for examination and
24 copying by any proprietary lessee or the proprietary
25 lessee's authorized agent. This right of examination may
26 be exercised only during reasonable business hours or at
27 a time and location mutually convenient to the
28 association and the proprietary lessee and may not be
29 exercised in bad faith or for any improper purpose such
30 as to harass another.
20070H0977B1149 - 13 -
1 (ii) Books and records kept by or on behalf of an
2 association may be withheld from inspection to the extent
3 they concern any of the following:
4 (A) Personnel records.
5 (B) An individual's medical records.
6 (C) Records relating to business transactions
7 that are currently in negotiation.
8 (D) Privileged communications with legal
9 counsel.
10 (E) Complaints against a proprietary lessee.
11 (F) Records of executive sessions under
12 subsection (d)(4).
13 (G) Information which, if disclosed, would
14 constitute an unwarranted invasion of privacy under
15 Federal or State law.
16 (iii) The association may impose and collect a
17 charge reflecting the actual costs of materials and labor
18 prior to providing copies of any books and records under
19 this paragraph.
20 (g) Election of executive board members.--
21 (1) The bylaws shall, in addition to the provisions of
22 sections 4303 (relating to executive board members and
23 officers) and 4306(a)(3) (relating to bylaws), provide that
24 candidates for election to the executive board may be
25 nominated from the floor of membership meetings by any
26 proprietary lessee.
27 (2) Bylaws adopted in compliance with the provisions of
28 this subsection shall not apply to the appointment of members
29 of the executive board by the declarant or persons designated
30 by the declarant.
20070H0977B1149 - 14 -
1 (h) Definitions.--As used in this section, the following
2 words and phrases shall have the meanings given to them in this
3 subsection:
4 "Executive session." A meeting of the executive board from
5 which proprietary lessees may be excluded under subsection
6 (d)(4).
7 "Meeting." A prearranged gathering held for the purpose of
8 deliberating association business or taking official action of:
9 (1) an association, which is attended or participated in
10 by a quorum of proprietary lessees;
11 (2) an executive board, which is attended or
12 participated in by a quorum of the executive board; or
13 (3) any committee, commission or entity that is a
14 subdivision of the executive board of the association, which
15 is attended or participated in by a quorum of the committee,
16 commission or entity.
17 "Official action." Any of the following:
18 (1) The establishment of policy by an association.
19 (2) A decision on association business made by an
20 association.
21 (3) A vote taken by an association, executive board or
22 any committee, commission or entity that is a subdivision of
23 the executive board of an association on any proposal,
24 resolution, rule, regulation or report.
25 "Substantial cooperative." A cooperative consisting of more
26 than 12 units created before, on or after the effective date of
27 this section. The term shall not include a cooperative in which
28 all units are restricted exclusively to nonresidential use.
29 Section 6. Section 5309 of Title 68 is amended by adding a
30 subsection to read:
20070H0977B1149 - 15 -
1 § 5309. Quorums.
2 * * *
3 (c) Committees and commissions.--Unless the bylaws specify a
4 different percentage, a quorum is deemed present throughout a
5 meeting of a committee, commission or entity that is a
6 subdivision of the executive board if at least 50% of the
7 designated members of the committee, commission or entity are
8 present at the beginning of the meeting.
9 Section 7. Title 68 is amended by adding a section to read:
10 § 5321. Management of substantial planned communities.
11 (a) Scope.--
12 (1) A substantial planned community established after
13 the effective date of this section shall adopt bylaws in
14 compliance with the provisions of this section.
15 (2) A substantial planned community established on or
16 before the effective date of this section may adopt bylaws in
17 compliance with the provisions of this section.
18 (b) Unfair trade practice.--Notwithstanding the provisions
19 of section 5114 (relating to remedies to be liberally
20 administered), a violation of this subpart involving a
21 substantial planned community that has not adopted bylaws in
22 compliance with the provisions of this section shall constitute
23 an unfair trade practice, shall be deemed unlawful and may be
24 enforced by the Attorney General.
25 (c) Mediation and arbitration.--
26 (1) The bylaws shall establish procedures for mediation
27 and arbitration of disputes between:
28 (i) two or more unit owners; or
29 (ii) a unit owner and the association.
30 Mediation or arbitration shall be limited to disputes where
20070H0977B1149 - 16 -
1 all parties agree to either mediation or arbitration.
2 (2) Costs and fees associated with mediation, excluding
3 attorney fees, shall be assessed equally against all parties
4 to a dispute.
5 (3) Costs and fees associated with arbitration shall be
6 assessed against all parties to a dispute at the discretion
7 of the arbitrator.
8 (d) Meetings.--The bylaws shall, in addition to the
9 provisions of section 5308 (relating to meetings), provide that:
10 (1) A meeting of the association, executive board or any
11 committee, commission or entity that is a subdivision of the
12 executive board, except an executive session under paragraph
13 (4), shall be open to all unit owners and that an appropriate
14 officer of the association shall provide notice as follows:
15 (i) Notice of an association meeting shall be
16 provided pursuant to section 5308.
17 (ii) Notice of any other meeting, except an
18 executive session under paragraph (4) or emergency
19 meeting under paragraph (5), shall be provided as
20 specified in the bylaws and shall, at a minimum, include
21 the time and place of the meeting and the items on the
22 agenda.
23 All official action shall be taken at a meeting under this
24 paragraph or an emergency meeting under paragraph (5).
25 (2) (i) Except during an executive session under
26 paragraph (4), written minutes shall be kept of any
27 association or executive board meeting, including the
28 time and date of the meeting, the number of unit owners
29 in attendance, the substance of all official actions
30 taken at the meeting and a record of votes on official
20070H0977B1149 - 17 -
1 action by individual executive board members or officers.
2 (ii) Approved minutes of any association or
3 executive board meeting, except executive sessions under
4 paragraph (4), shall be made reasonably available for
5 examination by any unit owner and authorized agents no
6 later than 45 days after the meeting or 15 days after a
7 subsequent association or board meeting, whichever is
8 greater.
9 (3) All unit owners shall be provided at any meeting,
10 except an executive session under paragraph (4), with a
11 reasonable opportunity to comment on matters of concern,
12 deliberation or official action which are or may be under
13 consideration at that meeting.
14 (4) (i) The executive board may exclude unit owners
15 from an executive session. An executive session shall
16 only be convened during an open meeting under paragraph
17 (1) or (5) upon an affirmative vote of a majority of the
18 members of the executive board in attendance at the open
19 meeting.
20 (ii) An executive session may be held for any of the
21 following reasons, which reason shall be announced at the
22 open meeting prior to the executive session:
23 (A) To discuss any matter involving the
24 employment, termination of employment, terms and
25 conditions of employment, evaluation of performance,
26 promotion or disciplining of any specific prospective
27 employee or current employee employed by the
28 association, or former employee, provided, however,
29 that the individual employees whose rights could be
30 adversely affected may request in writing that the
20070H0977B1149 - 18 -
1 matter or matters be discussed at an open meeting.
2 (B) To consider the purchase or lease of real
3 property up to the time an option to purchase or
4 lease the real property is obtained or up to the time
5 an agreement to purchase or lease such property is
6 obtained if the agreement is obtained directly
7 without an option.
8 (C) To consult with its attorney or other
9 professional advisor regarding any information or
10 strategy in connection with litigation or with an
11 issue on which an identifiable complaint is expected
12 to be filed.
13 (D) To review and discuss business which, if
14 conducted in public, would violate a lawful privilege
15 or lead to the disclosure of information or
16 confidentiality protected by law.
17 (iii) Official action on discussion held at an
18 executive session shall be taken at an open meeting and
19 no executive session shall be used as a subterfuge to
20 defeat the purposes of paragraph (1) or (5).
21 (iv) The provisions of this paragraph shall not
22 apply to any meeting involving the appointment or
23 selection of any person to fill a vacancy in the
24 executive board.
25 (5) (i) The executive board may call an emergency
26 meeting for the purpose of dealing with a real or
27 potential emergency.
28 (ii) An emergency meeting shall be open to unit
29 owners and shall be subject to the requirements of
30 paragraphs (2) and (3).
20070H0977B1149 - 19 -
1 (iii) The bylaws shall specify which member of the
2 association's executive board shall provide notice of any
3 emergency meeting and shall further specify the means and
4 methods of providing such notice.
5 (6) The bylaws shall provide for rules of order to
6 govern meetings under paragraphs (1) and (5). The rules may
7 not be made to violate the intent of this section.
8 (e) Executive board proxies.--The bylaws shall, in addition
9 to the provisions of section 5310 (relating to voting; proxies),
10 provide that no vote may be cast pursuant to a proxy during a
11 vote of the executive board.
12 (f) Records.--The bylaws shall, in addition to the
13 provisions of section 5316 (relating to association records),
14 provide that:
15 (1) The association shall keep detailed records of its
16 operation and administration, including financial records as
17 provided in section 5316(a).
18 (2) (i) Books and records kept by or on behalf of an
19 association shall be available for examination and
20 copying by any unit owner or the unit owner's authorized
21 agent. This right of examination may be exercised only
22 during reasonable business hours or at a time and
23 location mutually convenient to the association and the
24 unit owner and may not be exercised in bad faith or for
25 any improper purpose, such as to harass another.
26 (ii) Books and records kept by or on behalf of an
27 association may be withheld from inspection to the extent
28 they concern any of the following:
29 (A) Personnel records.
30 (B) An individual's medical records.
20070H0977B1149 - 20 -
1 (C) Records relating to business transactions
2 that are currently in negotiation.
3 (D) Privileged communications with legal
4 counsel.
5 (E) Complaints against a unit owner.
6 (F) Records of executive sessions under
7 subsection (d)(4).
8 (G) Information which, if disclosed, would
9 constitute an unwarranted invasion of privacy under
10 Federal or State law.
11 (iii) The association may impose and collect a
12 charge reflecting the actual costs of materials and labor
13 prior to providing copies of any books and records under
14 this paragraph.
15 (g) Election of executive board members.--
16 (1) The bylaws shall, in addition to the provisions of
17 sections 5303 (relating to executive board members and
18 officers) and 5306(a)(3) (relating to bylaws), provide that
19 candidates for election to the executive board may be
20 nominated from the floor of membership meetings by any unit
21 owner.
22 (2) Bylaws adopted in compliance with the provisions of
23 this subsection shall not apply to the appointment of members
24 of the executive board by the declarant or persons designated
25 by the declarant.
26 (h) Definitions.--As used in this section, the following
27 words and phrases shall have the meanings given to them in this
28 subsection:
29 "Executive session." A meeting of the executive board from
30 which unit owners may be excluded under subsection (d)(4).
20070H0977B1149 - 21 -
1 "Meeting." A prearranged gathering held for the purpose of
2 deliberating association business or taking official action of:
3 (1) an association, which is attended or participated in
4 by a quorum of unit owners;
5 (2) an executive board, which is attended or
6 participated in by a quorum of the executive board; or
7 (3) any committee, commission or entity that is a
8 subdivision of the executive board of the association, which
9 is attended or participated in by a quorum of the committee,
10 commission or entity.
11 "Official action." Any of the following:
12 (1) The establishment of policy by an association.
13 (2) A decision on association business made by an
14 association.
15 (3) A vote taken by an association, executive board or
16 any committee, commission or entity that is a subdivision of
17 the executive board of an association on any proposal,
18 resolution, rule, regulation or report.
19 "Substantial planned community." A planned community
20 consisting of more than 12 units created before, on or after the
21 effective date of this section. The term shall not include a
22 planned community in which all units are restricted exclusively
23 to nonresidential use.
24 Section 8. This act shall take effect in one year.
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