1Amending Title 68 (Real and Personal Property) of the
2Pennsylvania Consolidated Statutes, in management of planned
3community, further providing for association records; and
4providing for meetings of unit owners' associations.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1. Section 5316 of Title 68 of the Pennsylvania
8Consolidated Statutes is amended to read:

9§ 5316. Association records.

10(a) Financial records.--The association shall keep financial
11records sufficiently detailed to enable the association to
12comply with section 5407 (relating to resales of units). [All
13financial and other records shall be made reasonably available
14for examination by any unit owner and authorized agents.]

15(b) Annual financial statements.--Within 180 days after the
16close of its fiscal year, the association in any planned
17community having more than 12 units or subject to any rights
18under section 5215 (relating to subdivision or conversion of

1units) or 5211 (relating to conversion and expansion of flexible
2planned communities) shall prepare annual financial statements
3consisting of at least a balance sheet and a statement of
4revenues and expenses for the association. The cost of preparing
5the financial statements shall be a common expense. Each unit
6owner shall be entitled to receive from the association, within
730 days after submitting a written request to the association, a
8copy of the annual financial statements and, if such financial
9statements are audited, reviewed or compiled by an independent
10certified public accountant or independent public accountant, a
11copy of the independent accountant's report on the financial
12statements. The association may charge a fee not to exceed the
13cost of producing copies of records other than the financial
14statement.

15(b.1) Access to association records.--

16(1) All association records shall be accessible for
17inspection and duplication by a unit owner or an authorized
18agent of the unit owner in accordance with this section.

19(2) An association may fulfill verbal requests for
20access to an association record. In the event that the
21requesting unit owner wishes to pursue relief under
22subsection (c), the unit owner shall initiate the relief with
23a written request.

24(3) An association record may not be used for commercial
25purposes.

26(4) If an association determines that any portion of a
27record in its possession is not an association record, the
28association's response to a request for access to the record
29shall grant access to the portion of the record that is an
30association record and deny access to the portion of the

1record that is not an association record. If the information
2that is not subject to access is an integral part of the
3association record and cannot be separated, the association
4shall redact from the record the information that is not
5subject to access.

6(5) Upon receipt of a written request for access to an
7association record, an association shall make a good faith
8effort to determine if the record requested is an association
9record under this section and to respond as promptly as
10possible under the circumstances existing at the time of the
11request but shall not exceed 15 business days from the date
12the written request is received by the association. If the
13agency fails to send a response within 15 business days, the
14written request for access shall be deemed denied. Upon
15receipt of a written request for access, an association shall
16send written notice to the requester within 15 business days
17of the association's receipt of the request for access if the
18association determines that one of the following applies:

19(i) The request for access requires redaction of an
20association record in accordance with paragraph (4).

21(ii) A timely response to the request for access
22cannot be accomplished due to bona fide and specified
23manpower limitations.

24(iii) A legal review is necessary to determine
25whether the record is an association record subject to
26access under this section.

27The notice shall include a statement notifying the requester
28that the request for access is being reviewed, the reason for
29the review and a reasonable date that a response is expected
30to be provided, which date shall be no later than 30 business

1days following the association's receipt of the request for
2access.

3(6) An association may impose and collect reasonable
4fees, reflecting the actual costs of materials and labor, for
5duplication of association records.

6(c) Filing of complaints.--If an association subject to
7subsection (a) fails to provide a copy of the annual financial
8statements and, if applicable, the report of an independent
9accountant as required under subsection (b) to the requesting
10unit owner [within 30 days of the unit owner's written request
11or] prior to the deadline established in subsection (b.1)(5), if
12the financial records of the association which substantiate an
13association's financial statements, or any other requested 
14association records are not made [reasonably] available by any
15association for examination by any unit owner and authorized
16agents[,] prior to the deadline established in subsection (b.1)
17(5), or if the association denies access to an association 
18record under subsection (b.1)(5), the unit owner may file a
19complaint with the Bureau of Consumer Protection in the Office
20of Attorney General.

21(d) Definitions.--As used in this section, the following
22words and phrases shall have the meanings given to them in this
23subsection:

24"Association record." The term includes financial records,
25annual financial statements, bylaws, rules, regulations and
26budgets adopted by the association, board-approved minutes of
27meetings, contracts entered into by the association, insurance
28policies, declarations and amendments to the declaration. The
29term does not include personnel records, an individual's medical
30records, records relating to business transactions that are

1currently in negotiation, privileged communications with legal
2counsel, complaints against a unit owner, records of executive
3board meetings or information which, if disclosed, would
4constitute an invasion of privacy under Federal or State law.

5Section 2. Title 68 is amended by adding a section to read:

6§ 5321. Meetings of unit owners' associations.

7(a) Bylaws.--The bylaws of any unit owners' association
8shall, in addition to the provisions of section 5308 (relating
9to meetings), provide that:

10(1) A meeting of the association, executive board or any
11committee, commission or other entity that is a subdivision
12of the executive board, except an executive board meeting
13under paragraph (4), shall be open to unit owners, and an
14appropriate officer of the association shall provide notice
15as follows:

16(i) Notice of an association meeting shall be
17provided under section 5308.

18(ii) Notice of any other meeting, except an
19executive board meeting under paragraph (4) or emergency
20meeting under paragraph (5), shall be provided as
21specified in the bylaws and shall, at a minimum:

22(A) Include the time and place of the meeting
23and the items on the agenda.

24(B) Be posted at either the main entrance to the
25substantial planned community or at a central
26location within the substantial planned community
27designated for such purposes. All official action
28shall be taken at a meeting under this paragraph or
29an emergency meeting under paragraph (5).

30(2) Except during an executive board meeting under

1paragraph (4), written minutes shall be kept of any
2association meeting, including the time and date of the
3meeting, the number of unit owners in attendance, the
4substance of all official actions taken at the meeting and a
5record of votes on official action by individual executive
6board members or officers.

7(3) Unit owners shall be provided at any meeting, except
8an executive board meeting under paragraph (4), with a
9reasonable opportunity to comment on matters of concern,
10deliberation or official action that are or may be under
11consideration at that meeting.

12(4) (i) The executive board may exclude unit owners
13from an executive board meeting. An executive board
14meeting shall only be convened during an open meeting
15under paragraph (1) or (5) upon an affirmative vote of a
16majority of the members of the executive board in
17attendance at the opening meeting.

18(ii) An executive board meeting may be held for any
19of the following reasons, which reason shall be announced
20at the open meeting prior to the executive board meeting:

21(A) To discuss any matter involving the
22employment, termination of employment, terms and
23conditions of employment, evaluation of performance,
24promotion or discipline of any specific prospective
25employee or current employee employed by the
26association, or former employee, provided, however,
27that the individual employee whose rights could be
28adversely affected may request in writing that the
29matter or matters be discussed at an open meeting.

30(B) To consider the purchase or lease of real

1property up to the time an option to purchase or
2lease the real property is obtained or up to the time
3an agreement to purchase or lease the property is
4obtained if the agreement is obtained directly
5without an option.

6(C) To consult with its attorney or other
7professional advisor regarding any information or
8strategy in connection with litigation or with an
9issue on which an identifiable complaint is expected
10to be filed.

11(D) To review and discuss business that, if
12conducted in public, would violate a lawful privilege
13or lead to the disclosure of information or
14confidentiality protected by law.

15(iii) Official action on discussion held at an
16executive board meeting shall be taken at an open meeting
17and no executive board meeting shall be used as a
18subterfuge to defeat the purposes of paragraph (1) or
19(5).

20(iv) The provisions of this paragraph shall not
21apply to any meeting involving the appointment or
22selection of any person to fill a vacancy in the
23executive board.

24(5) (i) The executive board may call an emergency
25meeting for the purpose of dealing with a real or
26potential emergency involving a clear and present danger
27to life or property.

28(ii) An emergency meeting shall be open to unit
29owners and shall be subject to the requirements of
30paragraphs (2) and (3).

1(iii) The bylaws shall specify which member of the
2association's executive board shall provide notice of any
3emergency meeting and shall further specify the means and
4methods of providing the notice, including, but not
5limited to, posting the notice at either the main
6entrance to the substantial planned community or at a
7central location within the substantial planned community
8designated for such purposes.

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

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

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

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

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

22"Official action." Any of the following:

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

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

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

30Section 3. This act shall take effect in 60 days.