Bill Text: PA HB1240 | 2009-2010 | Regular Session | Introduced


Bill Title: Further providing for association records; and providing for meetings of unit owners' associations.

Spectrum: Slight Partisan Bill (Republican 13-7)

Status: (Introduced - Dead) 2009-04-08 - Referred to URBAN AFFAIRS [HB1240 Detail]

Download: Pennsylvania-2009-HB1240-Introduced.html

  

 

    

PRINTER'S NO.  1473

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

1240

Session of

2009

  

  

INTRODUCED BY O'NEILL, BARRAR, BOYD, CARROLL, CLYMER, FABRIZIO, GEIST, HARKINS, KILLION, MELIO, MILLER, MOUL, MURT, PEIFER, READSHAW, REICHLEY, SIPTROTH, TRUE, VULAKOVICH AND YOUNGBLOOD, APRIL 8, 2009

  

  

REFERRED TO COMMITTEE ON URBAN AFFAIRS, APRIL 8, 2009  

  

  

  

AN ACT

  

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Amending Title 68 (Real and Personal Property) of the

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Pennsylvania Consolidated Statutes, further providing for

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association records; and providing for meetings of unit

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owners' associations.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 5316 of Title 68 of the Pennsylvania

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Consolidated Statutes is amended to read:

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§ 5316.  Association records.

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(a)  Financial records.--The association shall keep financial

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records sufficiently detailed to enable the association to

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comply with section 5407 (relating to resales of units). [All

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financial and other records shall be made reasonably available

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for examination by any unit owner and authorized agents.]

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(b)  Annual financial statements.--Within 180 days after the

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close of its fiscal year, the association in any planned

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community having more than 12 units or subject to any rights

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under section 5215 (relating to subdivision or conversion of

 


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units) or 5211 (relating to conversion and expansion of flexible

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planned communities) shall prepare annual financial statements

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consisting of at least a balance sheet and a statement of

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revenues and expenses for the association. The cost of preparing

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the financial statements shall be a common expense. Each unit

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owner shall be entitled to receive from the association, within

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30 days after submitting a written request to the association, a

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copy of the annual financial statements and, if such financial

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statements are audited, reviewed or compiled by an independent

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certified public accountant or independent public accountant, a

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copy of the independent accountant's report on the financial

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statements. The association may charge a fee not to exceed the

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cost of producing copies of records other than the financial

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statement.

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

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(1)  All association records shall be accessible for

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inspection and duplication by a unit owner or an authorized

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agent of the unit owner in accordance with this section.

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(2)  An association may fulfill verbal requests for

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access to an association record. In the event that the

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requesting unit owner wishes to pursue relief under

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subsection (c), the unit owner shall initiate the relief with

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a written request.

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(3)  An association record may not be used for commercial

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purposes.

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(4)  If an association determines that any portion of a

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record in its possession is not an association record, the

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association's response to a request for access to the record

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shall grant access to the portion of the record that is an

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association record and deny access to the portion of the

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record that is not an association record. If the information

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that is not subject to access is an integral part of the

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association record and cannot be separated, the association

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shall redact from the record the information that is not

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subject to access.

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(5)  Upon receipt of a written request for access to an

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association record, an association shall make a good faith

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effort to determine if the record requested is an association

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record under this section and to respond as promptly as

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possible under the circumstances existing at the time of the

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request but shall not exceed 15 business days from the date

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the written request is received by the association. If the

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agency fails to send a response within 15 business days, the

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written request for access shall be deemed denied. Upon

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receipt of a written request for access, an association shall

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send written notice to the requester within 15 business days

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of the association's receipt of the request for access if the

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association determines that one of the following applies:

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(i)  The request for access requires redaction of an

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association record in accordance with paragraph (4).

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(ii)  A timely response to the request for access

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cannot be accomplished due to bona fide and specified

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manpower limitations.

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(iii)  A legal review is necessary to determine

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whether the record is an association record subject to

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access under this section.

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The notice shall include a statement notifying the requester

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that the request for access is being reviewed, the reason for

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the review and a reasonable date that a response is expected

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to be provided, which date shall be no later than 30 business

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days following the association's receipt of the request for

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access.

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(6)  An association may impose and collect reasonable

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fees, reflecting the actual costs of materials and labor, for

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duplication of association records.

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(c)  Filing of complaints.--If an association subject to

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subsection (a) fails to provide a copy of the annual financial

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statements and, if applicable, the report of an independent

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accountant as required under subsection (b) to the requesting

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unit owner [within 30 days of the unit owner's written request

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or] prior to the deadline established in subsection (b.1)(5), if

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the financial records of the association which substantiate an

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association's financial statements, or any other requested

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association records are not made [reasonably] available by any

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association for examination by any unit owner and authorized

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agents[,] prior to the deadline established in subsection (b.1)

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(5), or if the association denies access to an association

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record under subsection (b.1)(5), the unit owner may file a

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complaint with the Bureau of Consumer Protection in the Office

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of Attorney General.

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

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

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subsection:

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"Association record."  The term includes financial records, 

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annual financial statements, bylaws, rules, regulations and

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budgets adopted by the association, board-approved minutes of

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meetings, contracts entered into by the association, insurance

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policies, declarations and amendments to the declaration. The

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term shall not include personnel records, an individual's

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medical records, records relating to business transactions that

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are currently in negotiation, privileged communications with

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legal counsel, complaints against a unit owner, records of

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executive board meetings or information which, if disclosed,

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would constitute an invasion of privacy under Federal or State

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law.

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

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§ 5321.  Meetings of unit owners' associations.

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(a)  Bylaws.--The bylaws of any unit owners' association

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shall, in addition to the provisions of section 5308 (relating

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to meetings), provide that:

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

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committee, commission or other entity that is a subdivision

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of the executive board, except an executive board meeting

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under paragraph (4), shall be open to unit owners and an

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appropriate officer of the association shall provide notice

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as follows:

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(i)  Notice of an association meeting shall be

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provided under section 5308.

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(ii)  Notice of any other meeting, except an

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executive board meeting under paragraph (4) or emergency

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meeting under paragraph (5), shall be provided as

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specified in the bylaws and shall, at a minimum:

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(A)  Include the time and place of the meeting

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and the items on the agenda.

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(B)  Be posted at either the main entrance to the

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substantial planned community or at a central

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location within the substantial planned community

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designated for such purposes. All official action

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shall be taken at a meeting under this paragraph or

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an emergency meeting under paragraph (5).

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(2)  Except during an executive board meeting under

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

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association meeting, including the time and date of the

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meeting, the number of unit owners in attendance, the

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substance of all official actions taken at the meeting and a

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record of votes on official action by individual executive

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board members or officers.

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(3)  Unit owners shall be provided at any meeting, except

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an executive board meeting under paragraph (4), with a

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reasonable opportunity to comment on matters of concern,

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deliberation or official action that are or may be under

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consideration at that meeting.

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

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from an executive board meeting. An executive board

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meeting shall only be convened during an open meeting

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

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majority of the members of the executive board in

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attendance at the opening meeting.

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(ii)  An executive board meeting may be held for any

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of the following reasons, which reason shall be announced

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at the open meeting prior to the executive board meeting:

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(A)  To discuss any matter involving the

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employment, termination of employment, terms and

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conditions of employment, evaluation of performance,

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promotion or disciplining of any specific prospective

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employee or current employee employed by the

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association, or former employee, provided, however,

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that the individual employee whose rights could be

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adversely affected may request in writing that the

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matter or matters be discussed at an open meeting.

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(B)  To consider the purchase or lease of real

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property up to the time an option to purchase or

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lease the real property is obtained or up to the time

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an agreement to purchase or lease the property is

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obtained if the agreement is obtained directly

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without an option.

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(C)  To consult with its attorney or other

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professional advisor regarding any information or

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strategy in connection with litigation or with an

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issue on which an identifiable complaint is expected

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to be filed.

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(D)  To review and discuss business that, if

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conducted in public, would violate a lawful privilege

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or lead to the disclosure of information or

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confidentiality protected by law.

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(iii)  Official action on discussion held at an

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executive board meeting shall be taken at an open meeting

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and no executive board meeting shall be used as a

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subterfuge to defeat the purposes of paragraph (1) or

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(5).

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(iv)  The provisions of this paragraph shall not

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apply to any meeting involving the appointment or

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selection of any person to fill a vacancy in the

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executive board.

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

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meeting for the purpose of dealing with a real or

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potential emergency involving a clear and present danger

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to life or property.

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(ii)  An emergency meeting shall be open to unit

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owners and shall be subject to the requirements of

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paragraphs (2) and (3).

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(iii)  The bylaws shall specify which member of the

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association's executive board shall provide notice of any

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emergency meeting and shall further specify the means and

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methods of providing the notice, including, but not

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limited to, posting the notice at either the main

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entrance to the substantial planned community or at a

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central location within the substantial planned community

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designated for such purposes.

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

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

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subsection:

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

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deliberating association business or taking official action of:

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

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by a quorum of unit owners;

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(2)  an executive board, which is attended or

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participated in by a quorum of the executive board; or

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

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subdivision of the executive board of the association, which

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

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commission or entity.

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"Official action."  Any of the following:

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(1)  The establishment of policy by an association.

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(2)  A decision on association business made by an

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association.

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

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any committee, commission or other entity that is a

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subdivision of the executive board of an association on any

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proposal, resolution, rule, regulation or report.

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

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