THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCHRODER, CREIGHTON, KORTZ, MURT AND ROHRER, APRIL 7, 2009

REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 7, 2009  

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, in management of the

condominium, cooperatives and planned community, further

providing for quorums; and providing for management of

condominiums, cooperatives and planned communities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3309 of Title 68 of the Pennsylvania

Consolidated Statutes is amended by adding a subsection to read:

§ 3309.  Quorums.

* * *

(c)  Committees and commissions.--Unless the bylaws specify a

different percentage, a quorum is deemed present throughout a

meeting of a committee, commission or entity that is a

subdivision of the executive board if at least 50% of the

designated members of the committee, commission or entity are

present at the beginning of the meeting.

Section 2.  Title 68 is amended by adding a section to read:

§ 3321.  Management of condominiums.

(a)  Scope.--

(1)  A condominium established after the effective date

of this section shall adopt bylaws in compliance with the

provisions of this section.

(2)  A condominium established on or before the effective

date of this section may adopt bylaws in compliance with the

provisions of this section.

(b)  Unfair trade practice.--Notwithstanding the provisions

of section 3113 (relating to remedies to be liberally

administered), a violation of this subpart involving a

condominium that has not adopted bylaws in compliance with the

provisions of this section shall constitute an unfair trade

practice, shall be deemed unlawful and may be enforced by the

Attorney General.

(c)  Mediation and arbitration.--

(1)  The bylaws shall establish procedures for mediation

and arbitration of disputes between:

(i)  two or more unit owners; or

(ii)  a unit owner and the association.

Mediation or arbitration shall be limited to disputes where

all parties agree to either mediation or arbitration.

(2)  Costs and fees associated with mediation, excluding

attorney fees, shall be assessed equally against all parties

to a dispute.

(3)  Costs and fees associated with arbitration shall be

assessed against all parties to a dispute at the discretion

of the arbitrator.

(d)  Meetings.--The bylaws shall, in addition to the

provisions of section 3308 (relating to meetings), provide that:

(1)  A meeting of the association, executive board or any

committee, commission or entity that is a subdivision of the

executive board, except an executive session under paragraph

(4), shall be open to all unit owners and that an appropriate

officer of the association shall provide notice as follows:

(i)  Notice of an association meeting shall be

provided pursuant to section 3308.

(ii)  Notice of any other meeting, except an

executive session under paragraph (4) or emergency

meeting under paragraph (5), shall be provided as

specified in the bylaws and shall, at a minimum, include

the time and place of the meeting and the items on the

agenda.

All official action shall be taken at a meeting under this

paragraph or an emergency meeting under paragraph (5).

(2)  (i)  Except during an executive session under

paragraph (4), written minutes shall be kept of any

association or executive board meeting, including the

time and date of the meeting, the number of unit owners

in attendance, the substance of all official actions

taken at the meeting and a record of votes on official

action by individual executive board members or officers.

(ii)  Approved minutes of any association or

executive board meeting, except executive sessions under

paragraph (4), shall be made reasonably available for

examination by any unit owner and authorized agents no

later than 45 days after the meeting or 15 days after a

subsequent association or board meeting, whichever is

greater.

(3)  All unit owners shall be provided at any meeting,

except an executive session under paragraph (4), with a

reasonable opportunity to comment on matters of concern,

deliberation or official action which are or may be under

consideration at that meeting.

(4)  (i)  The executive board may exclude unit owners

from an executive session. An executive session shall

only be convened during an open meeting under paragraph

(1) or (5) upon an affirmative vote of a majority of the

members of the executive board in attendance at the open

meeting.

(ii)  An executive session may be held for any of the

following reasons, which reason shall be announced at the

open meeting prior to the executive session:

(A)  To discuss any matter involving the

employment, termination of employment, terms and

conditions of employment, evaluation of performance,

promotion or disciplining of any specific prospective

employee or current employee employed by the

association, or former employee, provided, however,

that the individual employees whose rights could be

adversely affected may request in writing that the

matter or matters be discussed at an open meeting.

(B)  To consider the purchase or lease of real

property up to the time an option to purchase or

lease the real property is obtained or up to the time

an agreement to purchase or lease such property is

obtained if the agreement is obtained directly

without an option.

(C)  To consult with its attorney or other

professional advisor regarding any information or

strategy in connection with litigation or with an

issue on which an identifiable complaint is expected

to be filed.

(D)  To review and discuss business which, if

conducted in public, would violate a lawful privilege

or lead to the disclosure of information or

confidentiality protected by law.

(iii)  Official action on discussion held at an

executive session shall be taken at an open meeting, and

no executive session shall be used as a subterfuge to

defeat the purposes of paragraph (1) or (5).

(iv)  The provisions of this paragraph shall not

apply to any meeting involving the appointment or

selection of any person to fill a vacancy in the

executive board.

(5)  (i)  The executive board may call an emergency

meeting for the purpose of dealing with a real or

potential emergency.

(ii)  An emergency meeting shall be open to unit

owners and shall be subject to the requirements of

paragraphs (2) and (3).

(iii)  The bylaws shall specify which member of the

association's executive board shall provide notice of any

emergency meeting and shall further specify the means and

methods of providing such notice.

(6)  The bylaws shall provide for rules of order to

govern meetings under paragraphs (1) and (5). The rules may

not be made to violate the intent of this section.

(e)  Executive board proxies.--The bylaws shall, in addition

to the provisions of section 3310 (relating to voting; proxies),

provide that no vote may be cast pursuant to a proxy during a

vote of the executive board.

(f)  Records.--The bylaws shall, in addition to the

provisions of section 3316 (relating to association records),

provide that:

(1)  The association shall keep detailed records of its

operation and administration, including financial records as

provided in section 3316.

(2)  (i)  Books and records kept by or on behalf of an

association shall be available for examination and

copying by any unit owner or the unit owner's authorized

agent. This right of examination may be exercised only

during reasonable business hours or at a time and

location mutually convenient to the association and the

unit owner and may not be exercised in bad faith or for

any improper purpose, such as to harass another.

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

association may be withheld from inspection to the extent

they concern any of the following:

(A)  Personnel records.

(B)  An individual's medical records.

(C)  Records relating to business transactions

that are currently in negotiation.

(D)  Privileged communications with legal

counsel.

(E)  Complaints against a unit owner.

(F)  Records of executive sessions under

subsection (d)(4).

(G)  Information which, if disclosed, would

constitute an unwarranted invasion of privacy under

Federal or State law.

(iii)  The association may impose and collect a

charge reflecting the actual costs of materials and labor

prior to providing copies of any books and records under

this paragraph.

(g)  Election of executive board members.--

(1)  The bylaws shall, in addition to the provisions of

sections 3303 (relating to executive board members and

officers) and 3306(a)(3) (relating to bylaws), provide that

candidates for election to the executive board may be

nominated from the floor of membership meetings by any unit

owner.

(2)  Bylaws adopted in compliance with the provisions of

this subsection shall not apply to the appointment of members

of the executive board by the declarant or persons designated

by the declarant.

(h)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Executive session."  A meeting of the executive board from

which unit owners may be excluded under subsection (d)(4).

"Meeting."  A prearranged gathering held for the purpose of

deliberating association business or taking official action of:

(1)  an association, which is attended or participated in

by a quorum of unit owners;

(2)  an executive board, which is attended or

participated in by a quorum of the executive board; or

(3)  any committee, commission or entity that is a

subdivision of the executive board of the association, which

is attended or participated in by a quorum of the committee,

commission or entity.

"Official action."  Any of the following:

(1)  The establishment of policy by an association.

(2)  A decision on association business made by an

association.

(3)  A vote taken by an association, executive board or

any committee, commission or entity that is a subdivision of

the executive board of an association on any proposal,

resolution, rule, regulation or report.

Section 3.  Section 4309 of Title 68 is amended by adding a

subsection to read:

§ 4309.  Quorums.

* * *

(c)  Committees and commissions.--Unless the bylaws specify a

different percentage, a quorum is deemed present throughout a

meeting of a committee, commission or entity that is a

subdivision of the executive board if at least 50% of the

designated members of the committee, commission or entity are

present at the beginning of the meeting.

Section 4.  Title 68 is amended by adding a section to read:

§ 4322.  Management of cooperatives.

(a)  Scope.--

(1)  A cooperative established after the effective date

of this section shall adopt bylaws in compliance with the

provisions of this section.

(2)  A cooperative established on or before the effective

date of this section may adopt bylaws in compliance with the

provisions of this section.

(b)  Unfair trade practice.--Notwithstanding the provisions

of section 4113 (relating to remedies to be liberally

administered), a violation of this subpart involving a

cooperative that has not adopted bylaws in compliance with the

provisions of this section shall constitute an unfair trade

practice, shall be deemed unlawful and may be enforced by the

Attorney General.

(c)  Mediation and arbitration.--

(1)  The bylaws shall establish procedures for mediation

and arbitration of disputes between:

(i)  two or more proprietary lessees; or

(ii)  a proprietary lessee and the association.

Mediation or arbitration shall be limited to disputes where

all parties agree to either mediation or arbitration.

(2)  Costs and fees associated with mediation, excluding

attorney fees, shall be assessed equally against all parties

to a dispute.

(3)  Costs and fees associated with arbitration shall be

assessed against all parties to a dispute at the discretion

of the arbitrator.

(d)  Meetings.--The bylaws shall, in addition to the

provisions of section 4308 (relating to meetings), provide that:

(1)  A meeting of the association, executive board or any

committee, commission or entity that is a subdivision of the

executive board, except an executive session under paragraph

(4), shall be open to all proprietary lessees and that an

appropriate officer of the association shall provide notice

as follows:

(i)  Notice of an association meeting shall be

provided under section 4308.

(ii)  Notice of any other meeting, except an

executive session under paragraph (4) or emergency

meeting under paragraph (5), shall be provided as

specified in the bylaws and shall, at a minimum, include

the time and place of the meeting and the items on the

agenda.

All official action shall be taken at a meeting under this

paragraph or an emergency meeting under paragraph (5).

(2)  (i)  Except during an executive session under

paragraph (4), written minutes shall be kept of any

association or executive board meeting, including the

time and date of the meeting, the number of proprietary

lessees in attendance, the substance of all official

actions taken at the meeting and a record of votes on

official action by individual executive board members or

officers.

(ii)  Approved minutes of any association or

executive board meeting, except executive sessions under

paragraph (4), shall be made reasonably available for

examination by any proprietary lessees and authorized

agents no later than 45 days after the meeting or 15 days

after a subsequent association or board meeting,

whichever is greater.

(3)  All proprietary lessees shall be provided at any

meeting, except an executive session under paragraph (4),

with a reasonable opportunity to comment on matters of

concern, deliberation or official action which are or may be

under consideration at that meeting.

(4)  (i)  The executive board may exclude proprietary

lessees from an executive session. An executive session

shall only be convened during an open meeting under

paragraph (1) or (5) upon an affirmative vote of a

majority of the members of the executive board in

attendance at the open meeting.

(ii)  An executive session may be held for any of the

following reasons, which reason shall be announced at the

open meeting prior to the executive session:

(A)  To discuss any matter involving the

employment, termination of employment, terms and

conditions of employment, evaluation of performance,

promotion or discipline of any specific prospective

employee or current employee employed by the

association, or former employee, provided, however,

that the individual employees whose rights could be

adversely affected may request in writing that the

matter or matters be discussed at an open meeting.

(B)  To consider the purchase or lease of real

property up to the time an option to purchase or

lease the real property is obtained or up to the time

an agreement to purchase or lease such property is

obtained if the agreement is obtained directly

without an option.

(C)  To consult with its attorney or other

professional advisor regarding any information or

strategy in connection with litigation or with an

issue on which an identifiable complaint is expected

to be filed.

(D)  To review and discuss business which, if

conducted in public, would violate a lawful privilege

or lead to the disclosure of information or

confidentiality protected by law.

(iii)  Official action on discussion held at an

executive session shall be taken at an open meeting, and

no executive session shall be used as a subterfuge to

defeat the purposes of paragraph (1) or (5).

(iv)  The provisions of this paragraph shall not

apply to any meeting involving the appointment or

selection of any person to fill a vacancy in the

executive board.

(5)  (i)  The executive board may call an emergency

meeting for the purpose of dealing with a real or

potential emergency.

(ii)  An emergency meeting shall be open to

proprietary lessees and shall be subject to the

requirements of paragraphs (2) and (3).

(iii)  The bylaws shall specify which member of the

association's executive board shall provide notice of any

emergency meeting and shall further specify the means and

methods of providing such notice.

(6)  The bylaws shall provide for rules of order to

govern meetings under paragraphs (1) and (5). The rules may

not be made to violate the intent of this section.

(e)  Executive board proxies.--The bylaws shall, in addition

to the provisions of section 4310 (relating to voting; proxies),

provide that no vote may be cast pursuant to a proxy during a

vote of the executive board.

(f)  Records.--The bylaws shall, in addition to the

provisions of section 4317 (relating to association records),

provide that:

(1)  The association shall keep detailed records of its

operation and administration, including financial records as

provided under section 4317.

(2)  (i)  Books and records kept by or on behalf of an

association shall be available for examination and

copying by any proprietary lessee or the proprietary

lessee's authorized agent. This right of examination may

be exercised only during reasonable business hours or at

a time and location mutually convenient to the

association and the proprietary lessee and may not be

exercised in bad faith or for any improper purpose such

as to harass another.

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

association may be withheld from inspection to the extent

they concern any of the following:

(A)  Personnel records.

(B)  An individual's medical records.

(C)  Records relating to business transactions

that are currently in negotiation.

(D)  Privileged communications with legal

counsel.

(E)  Complaints against a proprietary lessee.

(F)  Records of executive sessions under

subsection (d)(4).

(G)  Information which, if disclosed, would

constitute an unwarranted invasion of privacy under

Federal or State law.

(iii)  The association may impose and collect a

charge reflecting the actual costs of materials and labor

prior to providing copies of any books and records under

this paragraph.

(g)  Election of executive board members.--

(1)  The bylaws shall, in addition to the provisions of

sections 4303 (relating to executive board members and

officers) and 4306(a)(3) (relating to bylaws), provide that

candidates for election to the executive board may be

nominated from the floor of membership meetings by any

proprietary lessee.

(2)  Bylaws adopted in compliance with the provisions of

this subsection shall not apply to the appointment of members

of the executive board by the declarant or persons designated

by the declarant.

(h)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Executive session."  A meeting of the executive board from

which proprietary lessees may be excluded under subsection (d)

(4).

"Meeting."  A prearranged gathering held for the purpose of

deliberating association business or taking official action of:

(1)  an association, which is attended or participated in

by a quorum of proprietary lessees;

(2)  an executive board, which is attended or

participated in by a quorum of the executive board; or

(3)  any committee, commission or entity that is a

subdivision of the executive board of the association, which

is attended or participated in by a quorum of the committee,

commission or entity.

"Official action."  Any of the following:

(1)  The establishment of policy by an association.

(2)  A decision on association business made by an

association.

(3)  A vote taken by an association, executive board or

any committee, commission or entity that is a subdivision of

the executive board of an association on any proposal,

resolution, rule, regulation or report.

Section 5.  Section 5309 of Title 68 is amended by adding a

subsection to read:

§ 5309.  Quorums.

* * *

(c)  Committees and commissions.--Unless the bylaws specify a

different percentage, a quorum is deemed present throughout a

meeting of a committee, commission or entity that is a

subdivision of the executive board if at least 50% of the

designated members of the committee, commission or entity are

present at the beginning of the meeting.

Section 6.  Title 68 is amended by adding a section to read:

§ 5321.  Management of planned communities.

(a)  Scope.--

(1)  A planned community established after the effective

date of this section shall adopt bylaws in compliance with

the provisions of this section.

(2)  A planned community established on or before the

effective date of this section may adopt bylaws in compliance

with the provisions of this section.

(b)  Unfair trade practice.--Notwithstanding the provisions

of section 5114 (relating to remedies to be liberally

administered), a violation of this subpart involving a planned

community that has not adopted bylaws in compliance with the

provisions of this section shall constitute an unfair trade

practice, shall be deemed unlawful and may be enforced by the

Attorney General.

(c)  Mediation and arbitration.--

(1)  The bylaws shall establish procedures for mediation

and arbitration of disputes between:

(i)  two or more unit owners; or

(ii)  a unit owner and the association.

Mediation or arbitration shall be limited to disputes where

all parties agree to either mediation or arbitration.

(2)  Costs and fees associated with mediation, excluding

attorney fees, shall be assessed equally against all parties

to a dispute.

(3)  Costs and fees associated with arbitration shall be

assessed against all parties to a dispute at the discretion

of the arbitrator.

(d)  Meetings.--The bylaws shall, in addition to the

provisions of section 5308 (relating to meetings), provide that:

(1)  A meeting of the association, executive board or any

committee, commission or entity that is a subdivision of the

executive board, except an executive session under paragraph

(4), shall be open to all unit owners and that an appropriate

officer of the association shall provide notice as follows:

(i)  Notice of an association meeting shall be

provided pursuant to section 5308.

(ii)  Notice of any other meeting, except an

executive session under paragraph (4) or emergency

meeting under paragraph (5), shall be provided as

specified in the bylaws and shall, at a minimum, include

the time and place of the meeting and the items on the

agenda.

All official action shall be taken at a meeting under this

paragraph or an emergency meeting under paragraph (5).

(2)  (i)  Except during an executive session under

paragraph (4), written minutes shall be kept of any

association or executive board meeting, including the

time and date of the meeting, the number of unit owners

in attendance, the substance of all official actions

taken at the meeting and a record of votes on official

action by individual executive board members or officers.

(ii)  Approved minutes of any association or

executive board meeting, except executive sessions under

paragraph (4), shall be made reasonably available for

examination by any unit owner and authorized agents no

later than 45 days after the meeting or 15 days after a

subsequent association or board meeting, whichever is

greater.

(3)  All unit owners shall be provided at any meeting,

except an executive session under paragraph (4), with a

reasonable opportunity to comment on matters of concern,

deliberation or official action which are or may be under

consideration at that meeting.

(4)  (i)  The executive board may exclude unit owners

from an executive session. An executive session shall

only be convened during an open meeting under paragraph

(1) or (5) upon an affirmative vote of a majority of the

members of the executive board in attendance at the open

meeting.

(ii)  An executive session may be held for any of the

following reasons, which reason shall be announced at the

open meeting prior to the executive session:

(A)  To discuss any matter involving the

employment, termination of employment, terms and

conditions of employment, evaluation of performance,

promotion or disciplining of any specific prospective

employee or current employee employed by the

association, or former employee, provided, however,

that the individual employees whose rights could be

adversely affected may request in writing that the

matter or matters be discussed at an open meeting.

(B)  To consider the purchase or lease of real

property up to the time an option to purchase or

lease the real property is obtained or up to the time

an agreement to purchase or lease such property is

obtained if the agreement is obtained directly

without an option.

(C)  To consult with its attorney or other

professional advisor regarding any information or

strategy in connection with litigation or with an

issue on which an identifiable complaint is expected

to be filed.

(D)  To review and discuss business which, if

conducted in public, would violate a lawful privilege

or lead to the disclosure of information or

confidentiality protected by law.

(iii)  Official action on discussion held at an

executive session shall be taken at an open meeting and

no executive session shall be used as a subterfuge to

defeat the purposes of paragraph (1) or (5).

(iv)  The provisions of this paragraph shall not

apply to any meeting involving the appointment or

selection of any person to fill a vacancy in the

executive board.

(5)  (i)  The executive board may call an emergency

meeting for the purpose of dealing with a real or

potential emergency.

(ii)  An emergency meeting shall be open to unit

owners and shall be subject to the requirements of

paragraphs (2) and (3).

(iii)  The bylaws shall specify which member of the

association's executive board shall provide notice of any

emergency meeting and shall further specify the means and

methods of providing such notice.

(6)  The bylaws shall provide for rules of order to

govern meetings under paragraphs (1) and (5). The rules may

not be made to violate the intent of this section.

(e)  Executive board proxies.--The bylaws shall, in addition

to the provisions of section 5310 (relating to voting; proxies),

provide that no vote may be cast pursuant to a proxy during a

vote of the executive board.

(f)  Records.--The bylaws shall, in addition to the

provisions of section 5316 (relating to association records),

provide that:

(1)  The association shall keep detailed records of its

operation and administration, including financial records as

provided in section 5316(a).

(2)  (i)  Books and records kept by or on behalf of an

association shall be available for examination and

copying by any unit owner or the unit owner's authorized

agent. This right of examination may be exercised only

during reasonable business hours or at a time and

location mutually convenient to the association and the

unit owner and may not be exercised in bad faith or for

any improper purpose, such as to harass another.

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

association may be withheld from inspection to the extent

they concern any of the following:

(A)  Personnel records.

(B)  An individual's medical records.

(C)  Records relating to business transactions

that are currently in negotiation.

(D)  Privileged communications with legal

counsel.

(E)  Complaints against a unit owner.

(F)  Records of executive sessions under

subsection (d)(4).

(G)  Information which, if disclosed, would

constitute an unwarranted invasion of privacy under

Federal or State law.

(iii)  The association may impose and collect a

charge reflecting the actual costs of materials and labor

prior to providing copies of any books and records under

this paragraph.

(g)  Election of executive board members.--

(1)  The bylaws shall, in addition to the provisions of

sections 5303 (relating to executive board members and

officers) and 5306(a)(3) (relating to bylaws), provide that

candidates for election to the executive board may be

nominated from the floor of membership meetings by any unit

owner.

(2)  Bylaws adopted in compliance with the provisions of

this subsection shall not apply to the appointment of members

of the executive board by the declarant or persons designated

by the declarant.

(h)  Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection:

"Executive session."  A meeting of the executive board from

which unit owners may be excluded under subsection (d)(4).

"Meeting."  A prearranged gathering held for the purpose of

deliberating association business or taking official action of:

(1)  an association, which is attended or participated in

by a quorum of unit owners;

(2)  an executive board, which is attended or

participated in by a quorum of the executive board; or

(3)  any committee, commission or entity that is a

subdivision of the executive board of the association, which

is attended or participated in by a quorum of the committee,

commission or entity.

"Official action."  Any of the following:

(1)  The establishment of policy by an association.

(2)  A decision on association business made by an

association.

(3)  A vote taken by an association, executive board or

any committee, commission or entity that is a subdivision of

the executive board of an association on any proposal,

resolution, rule, regulation or report.

Section 7.  This act shall take effect in one year.