AN ACT

 

1Amending Title 68 (Real and Personal Property) of the
2Pennsylvania Consolidated Statutes, in management of the
3condominium, cooperatives and planned community, further
4providing for quorums; and providing for management of
5condominiums, cooperatives and planned communities.

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

8Section 1. Section 3309 of Title 68 of the Pennsylvania
9Consolidated Statutes is amended by adding a subsection to read:

10§ 3309. Quorums.

11* * *

12(c) Committees and commissions.--Unless the bylaws specify a
13different percentage, a quorum is deemed present throughout a
14meeting of a committee, commission or entity that is a
15subdivision of the executive board if at least 50% of the
16designated members of the committee, commission or entity are
17present at the beginning of the meeting.

18Section 2. Title 68 is amended by adding a section to read:

19§ 3321. Management of condominiums.

1(a) Scope.--

2(1) A condominium established after the effective date
3of this section shall adopt bylaws in compliance with the
4provisions of this section.

5(2) A condominium established on or before the effective
6date of this section may adopt bylaws in compliance with the
7provisions of this section.

8(b) Unfair trade practice.--Notwithstanding the provisions
9of section 3113 (relating to remedies to be liberally
10administered), a violation of this subpart involving a
11condominium that has not adopted bylaws in compliance with the
12provisions of this section shall constitute an unfair trade
13practice, shall be deemed unlawful and may be enforced by the
14Attorney General.

15(c) Mediation and arbitration.--

16(1) The bylaws shall establish procedures for mediation
17and arbitration of disputes between:

18(i) two or more unit owners; or

19(ii) a unit owner and the association.

20Mediation or arbitration shall be limited to disputes where
21all parties agree to either mediation or arbitration.

22(2) Costs and fees associated with mediation, excluding
23attorney fees, shall be assessed equally against all parties
24to a dispute.

25(3) Costs and fees associated with arbitration shall be
26assessed against all parties to a dispute at the discretion
27of the arbitrator.

28(d) Meetings.--The bylaws shall, in addition to the
29provisions of section 3308 (relating to meetings), provide that:

30(1) A meeting of the association, executive board or any

1committee, commission or entity that is a subdivision of the
2executive board, except an executive session under paragraph
3(4), shall be open to all unit owners and that an appropriate
4officer of the association shall provide notice as follows:

5(i) Notice of an association meeting shall be
6provided pursuant to section 3308.

7(ii) Notice of any other meeting, except an
8executive session under paragraph (4) or emergency
9meeting under paragraph (5), shall be provided as
10specified in the bylaws and shall, at a minimum, include
11the time and place of the meeting and the items on the
12agenda.

13All official action shall be taken at a meeting under this
14paragraph or an emergency meeting under paragraph (5).

15(2) (i) Except during an executive session under
16paragraph (4), written minutes shall be kept of any
17association or executive board meeting, including the
18time and date of the meeting, the number of unit owners
19in attendance, the substance of all official actions
20taken at the meeting and a record of votes on official
21action by individual executive board members or officers.

22(ii) Approved minutes of any association or
23executive board meeting, except executive sessions under
24paragraph (4), shall be made reasonably available for
25examination by any unit owner and authorized agents no
26later than 45 days after the meeting or 15 days after a
27subsequent association or board meeting, whichever is
28greater.

29(3) All unit owners shall be provided at any meeting,
30except an executive session under paragraph (4), with a

1reasonable opportunity to comment on matters of concern,
2deliberation or official action that are or may be under
3consideration at that meeting.

4(4) (i) The executive board may exclude unit owners
5from an executive session. An executive session shall
6only be convened during an open meeting under paragraph
7(1) or (5) upon an affirmative vote of a majority of the
8members of the executive board in attendance at the open
9meeting.

10(ii) An executive session may be held for any of the
11following reasons, which reason shall be announced at the
12open meeting prior to the executive session:

13(A) To discuss any matter involving the
14employment, termination of employment, terms and
15conditions of employment, evaluation of performance,
16promotion or disciplining of any specific prospective
17employee or current employee employed by the
18association, or former employee, but the individual
19employees whose rights could be adversely affected
20may request in writing that the matter or matters be
21discussed at an open meeting.

22(B) To consider the purchase or lease of real
23property up to the time an option to purchase or
24lease the real property is obtained or up to the time
25an agreement to purchase or lease the property is
26obtained if the agreement is obtained directly
27without an option.

28(C) To consult with its attorney or other
29professional advisor regarding any information or
30strategy in connection with litigation or with an

1issue on which an identifiable complaint is expected
2to be filed.

3(D) To review and discuss business that, if
4conducted in public, would violate a lawful privilege
5or lead to the disclosure of information or
6confidentiality protected by law.

7(iii) Official action on discussion held at an
8executive session shall be taken at an open meeting, and
9no executive session may be used as a subterfuge to
10defeat the purposes of paragraph (1) or (5).

11(iv) The provisions of this paragraph shall not
12apply to any meeting involving the appointment or
13selection of any person to fill a vacancy in the
14executive board.

15(5) (i) The executive board may call an emergency
16meeting for the purpose of dealing with a real or
17potential emergency.

18(ii) An emergency meeting shall be open to unit
19owners and shall be subject to the requirements of
20paragraphs (2) and (3).

21(iii) The bylaws shall specify which member of the
22association's executive board shall provide notice of any
23emergency meeting and shall further specify the means and
24methods of providing the notice.

25(6) The bylaws shall provide for rules of order to
26govern meetings under paragraphs (1) and (5). The rules may
27not be made to violate the intent of this section.

28(e) Executive board proxies.--The bylaws shall, in addition
29to the provisions of section 3310 (relating to voting; proxies),
30provide that no vote may be cast pursuant to a proxy during a

1vote of the executive board.

2(f) Records.--The bylaws shall, in addition to the
3provisions of section 3316 (relating to association records),
4provide that:

5(1) The association shall keep detailed records of its
6operation and administration, including financial records as
7provided in section 3316.

8(2) (i) Books and records kept by or on behalf of an
9association shall be available for examination and
10copying by any unit owner or the unit owner's authorized
11agent. This right of examination may be exercised only
12during reasonable business hours or at a time and
13location mutually convenient to the association and the
14unit owner and may not be exercised in bad faith or for
15any improper purpose, such as to harass another.

16(ii) Books and records kept by or on behalf of an
17association may be withheld from inspection to the extent
18they concern any of the following:

19(A) Personnel records.

20(B) An individual's medical records.

21(C) Records relating to business transactions
22that are currently in negotiation.

23(D) Privileged communications with legal
24counsel.

25(E) Complaints against a unit owner.

26(F) Records of executive sessions under
27subsection (d)(4).

28(G) Information which, if disclosed, would
29constitute an unwarranted invasion of privacy under
30Federal or State law.

1(iii) The association may impose and collect a
2charge reflecting the actual costs of materials and labor
3prior to providing copies of any books and records under
4this paragraph.

5(g) Election of executive board members.--

6(1) The bylaws shall, in addition to the provisions of
7sections 3303 (relating to executive board members and
8officers) and 3306(a)(3) (relating to bylaws), provide that
9candidates for election to the executive board may be
10nominated from the floor of membership meetings by any unit
11owner.

12(2) Bylaws adopted in compliance with the provisions of
13this subsection shall not apply to the appointment of members
14of the executive board by the declarant or persons designated
15by the declarant.

16(h) Definitions.--As used in this section, the following
17words and phrases shall have the meanings given to them in this
18subsection:

19"Executive session." A meeting of the executive board from 
20which unit owners may be excluded under subsection (d)(4).

21"Meeting." A prearranged gathering held for the purpose of 
22deliberating association business or taking official action of:

23(1) an association, which is attended or participated in
24by a quorum of unit owners;

25(2) an executive board, which is attended or
26participated in by a quorum of the executive board; or

27(3) any committee, commission or entity that is a
28subdivision of the executive board of the association, which
29is attended or participated in by a quorum of the committee,
30commission or entity.

1"Official action." Any of the following:

2(1) The establishment of policy by an association.

3(2) A decision on association business made by an
4association.

5(3) A vote taken by an association, executive board or
6any committee, commission or entity that is a subdivision of
7the executive board of an association on any proposal,
8resolution, rule, regulation or report.

9Section 3. Section 4309 of Title 68 is amended by adding a
10subsection to read:

11§ 4309. Quorums.

12* * *

13(c) Committees and commissions.--Unless the bylaws specify a
14different percentage, a quorum is deemed present throughout a
15meeting of a committee, commission or entity that is a
16subdivision of the executive board if at least 50% of the
17designated members of the committee, commission or entity are
18present at the beginning of the meeting.

19Section 4. Title 68 is amended by adding a section to read:

20§ 4322. Management of cooperatives.

21(a) Scope.--

22(1) A cooperative established after the effective date
23of this section shall adopt bylaws in compliance with the
24provisions of this section.

25(2) A cooperative established on or before the effective
26date of this section may adopt bylaws in compliance with the
27provisions of this section.

28(b) Unfair trade practice.--Notwithstanding the provisions
29of section 4113 (relating to remedies to be liberally
30administered), a violation of this subpart involving a

1cooperative that has not adopted bylaws in compliance with the
2provisions of this section shall constitute an unfair trade
3practice, shall be deemed unlawful and may be enforced by the
4Attorney General.

5(c) Mediation and arbitration.--

6(1) The bylaws shall establish procedures for mediation
7and arbitration of disputes between:

8(i) two or more proprietary lessees; or

9(ii) a proprietary lessee and the association.

10Mediation or arbitration shall be limited to disputes where
11all parties agree to either mediation or arbitration.

12(2) Costs and fees associated with mediation, excluding
13attorney fees, shall be assessed equally against all parties
14to a dispute.

15(3) Costs and fees associated with arbitration shall be
16assessed against all parties to a dispute at the discretion
17of the arbitrator.

18(d) Meetings.--The bylaws shall, in addition to the
19provisions of section 4308 (relating to meetings), provide that:

20(1) A meeting of the association, executive board or any
21committee, commission or entity that is a subdivision of the
22executive board, except an executive session under paragraph
23(4), shall be open to all proprietary lessees and that an
24appropriate officer of the association shall provide notice
25as follows:

26(i) Notice of an association meeting shall be
27provided under section 4308.

28(ii) Notice of any other meeting, except an
29executive session under paragraph (4) or emergency
30meeting under paragraph (5), shall be provided as

1specified in the bylaws and shall, at a minimum, include
2the time and place of the meeting and the items on the
3agenda.

4All official action shall be taken at a meeting under this
5paragraph or an emergency meeting under paragraph (5).

6(2) (i) Except during an executive session under
7paragraph (4), written minutes shall be kept of any
8association or executive board meeting, including the
9time and date of the meeting, the number of proprietary
10lessees in attendance, the substance of all official
11actions taken at the meeting and a record of votes on
12official action by individual executive board members or
13officers.

14(ii) Approved minutes of any association or
15executive board meeting, except executive sessions under
16paragraph (4), shall be made reasonably available for
17examination by any proprietary lessees and authorized
18agents no later than 45 days after the meeting or 15 days
19after a subsequent association or board meeting,
20whichever is greater.

21(3) All proprietary lessees shall be provided at any
22meeting, except an executive session under paragraph (4),
23with a reasonable opportunity to comment on matters of
24concern, deliberation or official action that are or may be
25under consideration at that meeting.

26(4) (i) The executive board may exclude proprietary
27lessees from an executive session. An executive session
28shall only be convened during an open meeting under
29paragraph (1) or (5) upon an affirmative vote of a
30majority of the members of the executive board in

1attendance at the open meeting.

2(ii) An executive session may be held for any of the
3following reasons, which reason shall be announced at the
4open meeting prior to the executive session:

5(A) To discuss any matter involving the
6employment, termination of employment, terms and
7conditions of employment, evaluation of performance,
8promotion or discipline of any specific prospective
9employee or current employee employed by the
10association, or former employee, but the individual
11employees whose rights could be adversely affected
12may request in writing that the matter or matters be
13discussed at an open meeting.

14(B) To consider the purchase or lease of real
15property up to the time an option to purchase or
16lease the real property is obtained or up to the time
17an agreement to purchase or lease the property is
18obtained if the agreement is obtained directly
19without an option.

20(C) To consult with its attorney or other
21professional advisor regarding any information or
22strategy in connection with litigation or with an
23issue on which an identifiable complaint is expected
24to be filed.

25(D) To review and discuss business that, if
26conducted in public, would violate a lawful privilege
27or lead to the disclosure of information or
28confidentiality protected by law.

29(iii) Official action on discussion held at an
30executive session shall be taken at an open meeting, and

1no executive session may be used as a subterfuge to
2defeat the purposes of paragraph (1) or (5).

3(iv) The provisions of this paragraph shall not
4apply to any meeting involving the appointment or
5selection of any person to fill a vacancy in the
6executive board.

7(5) (i) The executive board may call an emergency
8meeting for the purpose of dealing with a real or
9potential emergency.

10(ii) An emergency meeting shall be open to
11proprietary lessees and shall be subject to the
12requirements of paragraphs (2) and (3).

13(iii) The bylaws shall specify which member of the
14association's executive board shall provide notice of any
15emergency meeting and shall further specify the means and
16methods of providing the notice.

17(6) The bylaws shall provide for rules of order to
18govern meetings under paragraphs (1) and (5). The rules may
19not be made to violate the intent of this section.

20(e) Executive board proxies.--The bylaws shall, in addition
21to the provisions of section 4310 (relating to voting; proxies),
22provide that no vote may be cast pursuant to a proxy during a
23vote of the executive board.

24(f) Records.--The bylaws shall, in addition to the
25provisions of section 4317 (relating to association records),
26provide that:

27(1) The association shall keep detailed records of its
28operation and administration, including financial records as
29provided under section 4317.

30(2) (i) Books and records kept by or on behalf of an

1association shall be available for examination and
2copying by any proprietary lessee or the proprietary
3lessee's authorized agent. This right of examination may
4be exercised only during reasonable business hours or at
5a time and location mutually convenient to the
6association and the proprietary lessee and may not be
7exercised in bad faith or for any improper purpose such
8as to harass another.

9(ii) Books and records kept by or on behalf of an
10association may be withheld from inspection to the extent
11they concern any of the following:

12(A) Personnel records.

13(B) An individual's medical records.

14(C) Records relating to business transactions
15that are currently in negotiation.

16(D) Privileged communications with legal
17counsel.

18(E) Complaints against a proprietary lessee.

19(F) Records of executive sessions under
20subsection (d)(4).

21(G) Information that, if disclosed, would
22constitute an unwarranted invasion of privacy under
23Federal or State law.

24(iii) The association may impose and collect a
25charge reflecting the actual costs of materials and labor
26prior to providing copies of any books and records under
27this paragraph.

28(g) Election of executive board members.--

29(1) The bylaws shall, in addition to the provisions of
30sections 4303 (relating to executive board members and

1officers) and 4306(a)(3) (relating to bylaws), provide that
2candidates for election to the executive board may be
3nominated from the floor of membership meetings by any
4proprietary lessee.

5(2) Bylaws adopted in compliance with the provisions of
6this subsection shall not apply to the appointment of members
7of the executive board by the declarant or persons designated
8by the declarant.

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

12"Executive session." A meeting of the executive board from 
13which proprietary lessees may be excluded under subsection (d)
14(4).

15"Meeting." A prearranged gathering held for the purpose of 
16deliberating association business or taking official action of:

17(1) an association, which is attended or participated in
18by a quorum of proprietary lessees;

19(2) an executive board, which is attended or
20participated in by a quorum of the executive board; or

21(3) any committee, commission or entity that is a
22subdivision of the executive board of the association, which
23is attended or participated in by a quorum of the committee,
24commission or entity.

25"Official action." Any of the following:

26(1) The establishment of policy by an association.

27(2) A decision on association business made by an
28association.

29(3) A vote taken by an association, executive board or
30any committee, commission or entity that is a subdivision of

1the executive board of an association on any proposal,
2resolution, rule, regulation or report.

3Section 5. Section 5309 of Title 68 is amended by adding a
4subsection to read:

5§ 5309. Quorums.

6* * *

7(c) Committees and commissions.--Unless the bylaws specify a
8different percentage, a quorum is deemed present throughout a
9meeting of a committee, commission or entity that is a
10subdivision of the executive board if at least 50% of the
11designated members of the committee, commission or entity are
12present at the beginning of the meeting.

13Section 6. Title 68 is amended by adding a section to read:

14§ 5321. Management of planned communities.

15(a) Scope.--

16(1) A planned community established after the effective
17date of this section shall adopt bylaws in compliance with
18the provisions of this section.

19(2) A planned community established on or before the
20effective date of this section may adopt bylaws in compliance
21with the provisions of this section.

22(b) Unfair trade practice.--Notwithstanding the provisions
23of section 5114 (relating to remedies to be liberally
24administered), a violation of this subpart involving a planned
25community that has not adopted bylaws in compliance with the
26provisions of this section shall constitute an unfair trade
27practice, shall be deemed unlawful and may be enforced by the
28Attorney General.

29(c) Mediation and arbitration.--

30(1) The bylaws shall establish procedures for mediation

1and arbitration of disputes between:

2(i) two or more unit owners; or

3(ii) a unit owner and the association.

4Mediation or arbitration shall be limited to disputes where
5all parties agree to either mediation or arbitration.

6(2) Costs and fees associated with mediation, excluding
7attorney fees, shall be assessed equally against all parties
8to a dispute.

9(3) Costs and fees associated with arbitration shall be
10assessed against all parties to a dispute at the discretion
11of the arbitrator.

12(d) Meetings.--The bylaws shall, in addition to the
13provisions of section 5308 (relating to meetings), provide that:

14(1) A meeting of the association, executive board or any
15committee, commission or entity that is a subdivision of the
16executive board, except an executive session under paragraph
17(4), shall be open to all unit owners and that an appropriate
18officer of the association shall provide notice as follows:

19(i) Notice of an association meeting shall be
20provided pursuant to section 5308.

21(ii) Notice of any other meeting, except an
22executive session under paragraph (4) or emergency
23meeting under paragraph (5), shall be provided as
24specified in the bylaws and shall, at a minimum, include
25the time and place of the meeting and the items on the
26agenda.

27All official action shall be taken at a meeting under this
28paragraph or an emergency meeting under paragraph (5).

29(2) (i) Except during an executive session under
30paragraph (4), written minutes shall be kept of any

1association or executive board meeting, including the
2time and date of the meeting, the number of unit owners
3in attendance, the substance of all official actions
4taken at the meeting and a record of votes on official
5action by individual executive board members or officers.

6(ii) Approved minutes of any association or
7executive board meeting, except executive sessions under
8paragraph (4), shall be made reasonably available for
9examination by any unit owner and authorized agents no
10later than 45 days after the meeting or 15 days after a
11subsequent association or board meeting, whichever is
12greater.

13(3) All unit owners shall be provided at any meeting,
14except an executive session under paragraph (4), with a
15reasonable opportunity to comment on matters of concern,
16deliberation or official action that are or may be under
17consideration at that meeting.

18(4) (i) The executive board may exclude unit owners
19from an executive session. An executive session shall
20only be convened during an open meeting under paragraph
21(1) or (5) upon an affirmative vote of a majority of the
22members of the executive board in attendance at the open
23meeting.

24(ii) An executive session may be held for any of the
25following reasons, which reason shall be announced at the
26open meeting prior to the executive session:

27(A) To discuss any matter involving the
28employment, termination of employment, terms and
29conditions of employment, evaluation of performance,
30promotion or disciplining of any specific prospective

1employee or current employee employed by the
2association, or former employee, provided, however,
3that the individual employees whose rights could be
4adversely affected may request in writing that the
5matter or matters be discussed at an open meeting.

6(B) To consider the purchase or lease of real
7property up to the time an option to purchase or
8lease the real property is obtained or up to the time
9an agreement to purchase or lease the property is
10obtained if the agreement is obtained directly
11without an option.

12(C) To consult with its attorney or other
13professional advisor regarding any information or
14strategy in connection with litigation or with an
15issue on which an identifiable complaint is expected
16to be filed.

17(D) To review and discuss business that, if
18conducted in public, would violate a lawful privilege
19or lead to the disclosure of information or
20confidentiality protected by law.

21(iii) Official action on discussion held at an
22executive session shall be taken at an open meeting and
23no executive session may be used as a subterfuge to
24defeat the purposes of paragraph (1) or (5).

25(iv) The provisions of this paragraph shall not
26apply to any meeting involving the appointment or
27selection of any person to fill a vacancy in the
28executive board.

29(5) (i) The executive board may call an emergency
30meeting for the purpose of dealing with a real or

1potential emergency.

2(ii) An emergency meeting shall be open to unit
3owners and shall be subject to the requirements of
4paragraphs (2) and (3).

5(iii) The bylaws shall specify which member of the
6association's executive board shall provide notice of any
7emergency meeting and shall further specify the means and
8methods of providing such notice.

9(6) The bylaws shall provide for rules of order to
10govern meetings under paragraphs (1) and (5). The rules may
11not be made to violate the intent of this section.

12(e) Executive board proxies.--The bylaws shall, in addition
13to the provisions of section 5310 (relating to voting; proxies),
14provide that no vote may be cast pursuant to a proxy during a
15vote of the executive board.

16(f) Records.--The bylaws shall, in addition to the
17provisions of section 5316 (relating to association records),
18provide that:

19(1) The association shall keep detailed records of its
20operation and administration, including financial records as
21provided in section 5316(a).

22(2) (i) Books and records kept by or on behalf of an
23association shall be available for examination and
24copying by any unit owner or the unit owner's authorized
25agent. This right of examination may be exercised only
26during reasonable business hours or at a time and
27location mutually convenient to the association and the
28unit owner and may not be exercised in bad faith or for
29any improper purpose, such as to harass another.

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

1association may be withheld from inspection to the extent
2they concern any of the following:

3(A) Personnel records.

4(B) An individual's medical records.

5(C) Records relating to business transactions
6that are currently in negotiation.

7(D) Privileged communications with legal
8counsel.

9(E) Complaints against a unit owner.

10(F) Records of executive sessions under
11subsection (d)(4).

12(G) Information that, if disclosed, would
13constitute an unwarranted invasion of privacy under
14Federal or State law.

15(iii) The association may impose and collect a
16charge reflecting the actual costs of materials and labor
17prior to providing copies of any books and records under
18this paragraph.

19(g) Election of executive board members.--

20(1) The bylaws shall, in addition to the provisions of
21sections 5303 (relating to executive board members and
22officers) and 5306(a)(3) (relating to bylaws), provide that
23candidates for election to the executive board may be
24nominated from the floor of membership meetings by any unit
25owner.

26(2) Bylaws adopted in compliance with the provisions of
27this subsection shall not apply to the appointment of members
28of the executive board by the declarant or persons designated
29by the declarant.

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

1words and phrases shall have the meanings given to them in this
2subsection:

3"Executive session." A meeting of the executive board from 
4which unit owners may be excluded under subsection (d)(4).

5"Meeting." A prearranged gathering held for the purpose of 
6deliberating association business or taking official action of:

7(1) an association, which is attended or participated in
8by a quorum of unit owners;

9(2) an executive board, which is attended or
10participated in by a quorum of the executive board; or

11(3) any committee, commission or entity that is a
12subdivision of the executive board of the association, which
13is attended or participated in by a quorum of the committee,
14commission or entity.

15"Official action." Any of the following:

16(1) The establishment of policy by an association.

17(2) A decision on association business made by an
18association.

19(3) A vote taken by an association, executive board or
20any committee, commission or entity that is a subdivision of
21the executive board of an association on any proposal,
22resolution, rule, regulation or report.

23Section 7. This act shall take effect in one year.