Bill Text: PA HB950 | 2011-2012 | Regular Session | Introduced

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Bill Title: In management of condominiums, cooperatives and planned communities, further providing for quorums; and providing for management of substantial condominiums, substantial cooperatives and substantial planned communities.

Spectrum: Moderate Partisan Bill (Republican 7-1)

Status: (Introduced - Dead) 2011-03-04 - Referred to URBAN AFFAIRS [HB950 Detail]

Download: Pennsylvania-2011-HB950-Introduced.html

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PRINTER'S NO. 1017
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 950 Session of2011
INTRODUCED BY SCHRODER, CALTAGIRONE, DENLINGER, MILLER, MOUL, MURT AND VULAKOVICH, MARCH 4, 2011
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 4, 2011
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in management of
condominiums, cooperatives and planned communities, further
providing for quorums; and providing for management of
substantial condominiums, substantial cooperatives and
substantial 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 substantial condominiums.
(a) Scope.--
(1) A substantial condominium established after the
effective date of this section shall adopt bylaws in
compliance with the provisions of this section.
(2) A substantial 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
substantial 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
20110HB0950PN1017 - 2 -
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
20110HB0950PN1017 - 3 -
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
20110HB0950PN1017 - 4 -
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
20110HB0950PN1017 - 5 -
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.
20110HB0950PN1017 - 6 -
(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.
20110HB0950PN1017 - 7 -
"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.
"Substantial condominium." A condominium consisting of more
than 12 units created before, on or after the effective date of
this section. The term shall not include a condominium in which
all units are restricted exclusively to nonresidential use.
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 substantial cooperatives.
(a) Scope.--
(1) A substantial cooperative established after the
effective date of this section shall adopt bylaws in
compliance with the provisions of this section.
(2) A substantial cooperative established on or before
the effective date of this section may adopt bylaws in
20110HB0950PN1017 - 8 -
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
substantial 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
20110HB0950PN1017 - 9 -
provided pursuant to 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
20110HB0950PN1017 - 10 -
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 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
20110HB0950PN1017 - 11 -
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:
20110HB0950PN1017 - 12 -
(1) The association shall keep detailed records of its
operation and administration, including financial records as
provided in 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
20110HB0950PN1017 - 13 -
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.
20110HB0950PN1017 - 14 -
(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.
"Substantial cooperative." A cooperative consisting of more
than 12 units created before, on or after the effective date of
this section. The term shall not include a cooperative in which
all units are restricted exclusively to nonresidential use.
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 substantial planned communities.
(a) Scope.--
(1) A substantial planned community established after
the effective date of this section shall adopt bylaws in
compliance with the provisions of this section.
(2) A substantial 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
20110HB0950PN1017 - 15 -
of section 5114 (relating to remedies to be liberally
administered), a violation of this subpart involving a
substantial 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
20110HB0950PN1017 - 16 -
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
20110HB0950PN1017 - 17 -
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
20110HB0950PN1017 - 18 -
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).
20110HB0950PN1017 - 19 -
(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
20110HB0950PN1017 - 20 -
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,
20110HB0950PN1017 - 21 -
resolution, rule, regulation or report.
"Substantial planned community." A planned community
consisting of more than 12 units created before, on or after the
effective date of this section. The term shall not include a
planned community in which all units are restricted exclusively
to nonresidential use.
Section 7. This act shall take effect in one year.
20110HB0950PN1017 - 22 -