Regular Session 2021-2022 House Bill 1795 P.N. 3242

PRIOR PRINTER'S NOS. 2035, 2190

PRINTER'S NO. 3242

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1795

Session of

2021

INTRODUCED BY R. BROWN, RADER, HELM, M. MACKENZIE, CIRESI AND

GAYDOS, AUGUST 17, 2021

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

JUNE 14, 2022

AN ACT

Amending Title 68 (Real and Personal Property) of the

Pennsylvania Consolidated Statutes, in general provisions

relating to condominiums, further providing for definitions;

in management of the condominium, further providing for

executive board members and officers, for bylaws and for

meetings; in protection of purchasers, further providing for

effect of violations on rights of action; in general

provisions relating to cooperatives, further providing for

definitions; in creation, alteration and termination of

cooperatives, further providing for master associations; in

management of cooperatives, further providing for bylaws and

for meetings; in protection of cooperative interest

purchasers, further providing for effect of violations on

rights of action; in general provisions relating to planned

communities, further providing for definitions; in creation,

alteration and termination of planned communities, further

providing for master associations; AND, in management of

planned community, further providing for bylaws and for

meetings; and, in protection of purchasers, further providing

for effect of violations on rights of action.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 3103 of Title 68 of the Pennsylvania

Consolidated Statutes is amended by adding definitions to read:

§ 3103. Definitions.

The following words and phrases when used in this subpart and

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in the declaration and bylaws shall have the meanings given to

them in this section unless specifically provided otherwise or

unless the context clearly indicates otherwise:

* * *

"Independent reviewer." A person who is selected by the

declarant or a majority of the unit owners of a condominium and

satisfies all of the following:

(1) Holds a certificate issued by the Commonwealth as a

certified public accountant, is licensed to practice law in

this Commonwealth or is a vote management system.

(2) Is not a unit owner, directly or indirectly.

(3) Has no IMMEDIATE family relationship with the

declarant, a unit owner or a condominium manager.

(4) Has no financial interest shared with the declarant,

a unit owner or a condominium manager.

(5) If compensated by the declarant, a director, the

association or a condominium manager, has disclosed the terms

of the compensation to all unit owners AT A SCHEDULED

MEETING .

* * *

"Vote management system." A third-party vendor who operates

a digital or subscription service that securely manages the

conduct of elections and voting procedures.

* * *

Section 2. Section 3303(d) and (e) of Title 68 are amended

and the section is amended by adding a subsection to read:

§ 3303. Executive board members and officers.

* * *

(d) Election of members during transfer of declarant

control.--

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(1) Not later than 60 days after conveyance of 25% of

the units to unit owners other than a declarant, not less

than 25% of the members of the executive board shall be

elected by unit owners other than the declarant.

(2) Not later than 60 days after conveyance of 50% of

the units to unit owners other than a declarant, not less

than 33 1/3% of the members of the executive board shall be

elected by unit owners other than the declarant.

(3) A vote by a unit owner must be submitted by the unit

owner to an independent reviewer who shall tally the results

of the election and certify the results to the declarant, the

executive board and unit owners. IN ORDER TO BE ELIGIBLE TO

VOTE IN THE ELECTION, A UNIT OWNER SHALL BE IN GOOD STANDING

WITH THE ASSOCIATION. IF A THIRD-PARTY VENDOR CONDUCTS THE

ELECTION, THE EXECUTIVE BOARD MAY PRESENT THE OFFICIAL

ELECTION RESULTS BASED ON THE CERTIFIED ELECTION REPORT FROM

THE INDEPENDENT REVIEWER AT A MEETING OF THE UNIT OWNERS AND

SHALL ENTER THE RESULTS IN THE MEETING RECORDS. THE EXECUTIVE

BOARD SHALL ENSURE THAT ALL MAILINGS RELATING TO THE ELECTION

USE THE RETURN ADDRESS OF THE THIRD-PARTY VENDOR THAT

CONDUCTS THE ELECTION. All votes by unit owners under this

paragraph shall be submitted to the independent reviewer in

either an electronic or a paper format. The interchangeable

submission of votes by unit owners in an electronic and a

paper format in the same election shall be prohibited. IF

VOTES ARE SUBMITTED IN AN ELECTRONIC FORMAT, THE ASSOCIATION

SHALL PROVIDE REASONABLE ACCOMMODATIONS TO A UNIT OWNER WHO

DOES NOT HAVE ACCESS TO ELECTRONIC MEANS TO SUBMIT THE UNIT

OWNER'S VOTE. This paragraph shall only apply to a

condominium with at least 100 units. If a condominium has

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more than 100 units and less than 500 units, the association

may opt out of the requirements under this paragraph by

amending the association's bylaws in accordance with section

3306 (relating to bylaws) A MAJORITY VOTE OF UNIT OWNERS .

(e) Election of members and officers following declarant

control.--

(1) Not later than the termination of any period of

declarant control, the unit owners shall elect an executive

board of at least three members at least a majority of whom

must be unit owners, except that the executive board may

consist of two members, both of whom must be unit owners, if

the condominium consists of two units. The executive board

shall elect the officers. The persons elected shall take

office upon election.

(2) In the event that the election of the executive

board by the unit owners fails to take place not later than

the termination of a period of declarant control as provided

in this section, then a special meeting of the unit owners

may be called for such purpose by any member of the executive

board elected by the unit owners or, if there is no such

member of the executive board, the unit owners entitled to

cast at least 10% of the votes in the association.

(3) A vote by a unit owner must be submitted by the unit

owner to an independent reviewer who shall tally the results

of the election and certify the results to the executive

board and unit owners. IN ORDER TO BE ELIGIBLE TO VOTE IN THE

ELECTION, A UNIT OWNER SHALL BE IN GOOD STANDING WITH THE

ASSOCIATION. IF A THIRD-PARTY VENDOR CONDUCTS THE ELECTION,

THE EXECUTIVE BOARD MAY PRESENT THE OFFICIAL ELECTION RESULTS

BASED ON THE CERTIFIED ELECTION REPORT FROM THE INDEPENDENT

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REVIEWER AT A MEETING OF THE UNIT OWNERS AND SHALL ENTER THE

RESULTS IN THE MEETING RECORDS. THE EXECUTIVE BOARD SHALL

ENSURE THAT ALL MAILINGS RELATING TO THE ELECTION USE THE

RETURN ADDRESS OF THE THIRD-PARTY VENDOR THAT CONDUCTS THE

ELECTION. All votes by unit owners under this paragraph shall

be submitted to the independent reviewer in either an

electronic or a paper format. The interchangeable submission

of votes by unit owners in an electronic and a paper format

in the same election shall be prohibited. IF VOTES ARE

SUBMITTED IN AN ELECTRONIC FORMAT, THE ASSOCIATION SHALL

PROVIDE REASONABLE ACCOMMODATIONS TO A UNIT OWNER WHO DOES

NOT HAVE ACCESS TO ELECTRONIC MEANS TO SUBMIT THE UNIT

OWNER'S VOTE. This paragraph shall only apply to a

condominium with at least 100 units. If a condominium has

more than 100 units and less than 500 units, the association

may opt out of the requirements under this paragraph by

amending the association's bylaws in accordance with section

3306 BY A MAJORITY VOTE OF UNIT OWNERS .

* * *

(g) Penalties.--A person who attempts to interfere with the

votes or election process under subsection (d) or (e) is guilty

of a misdemeanor of the first degree a nd, upon conviction, shall

be sentenced to pay a fine not exceeding $10,000 or to undergo

imprisonment of not more than five years, or both, in the

discretion of the court.

Section 3. Sections 3306(a)(6), 3308 and 3412 of Title 68

are amended to read:

(G) REMOVAL OF MEMBER OF EXECUTIVE BOARD.-- NOTWITHSTANDING

ANY PROVISION OF THE DECLARATION OR BYLAWS TO THE CONTRARY, THE

UNIT OWNERS, BY A TWO-THIRDS VOTE OF ALL PERSONS PRESENT AND

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ENTITLED TO VOTE AT ANY MEETING OF THE UNIT OWNERS AT WHICH A

QUORUM IS PRESENT, MAY REMOVE ANY MEMBER OF THE EXECUTIVE BOARD

WITH OR WITHOUT CAUSE, OTHER THAN A MEMBER APPOINTED BY THE

DECLARANT, PROVIDED NOTICE OF THE INTENTION TO REMOVE A MEMBER

OF THE EXECUTIVE BOARD IS GIVEN WITH THE NOTICE OF THE MEETING

AT WHICH SUCH REMOVAL IS CONSIDERED.

SECTION 3. SECTIONS 3306(A)(3) AND (6) AND 3308 OF TITLE 68

ARE AMENDED TO READ:

§ 3306. Bylaws.

(a) Mandatory provisions.--The bylaws of the association

must provide for:

* * *

(3) THE QUALIFICATIONS, POWERS AND DUTIES, TERMS OF

OFFICE AND MANNER OF ELECTING EXECUTIVE BOARD MEMBERS AND

OFFICERS AND REMOVING EXECUTIVE BOARD MEMBERS AND OFFICERS

UNDER SECTION 3303(G) (RELATING TO EXECUTIVE BOARD MEMBERS

AND OFFICERS) AND FILLING VACANCIES.

* * *

(6) The method of amending the bylaws. The following

apply:

(i) The bylaws may be amended only by vote , VOTE BY

PROXY or agreement of unit owners of units to which at

least:

(A) fifty-one percent of the votes in the

association is allocated as provided under section

3208 (relating to allocation of common element

interests, votes and common expense liabilities) ARE

COLLECTED FROM UNIT OWNERS IN PERSON, ELECTRONICALLY

OR BY ABSENTEE BALLOT ;

(B) any larger majority as specified in the

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bylaws; or

if all of the units are restricted exclusively to

nonresidential use.

(ii) The vote may be taken only at a scheduled

meeting as provided under section 3308 (relating to

meetings) that was advertised seven days in advance to

the unit owners. Absentee voting shall be permitted to

unit owners provided that the ballots must be submitted

to an independent reviewer during a time period

consistent with the absentee voting provisions under

Article XIII of the act of June 3, 1937 (P.L.1333,

No.320), known as the Pennsylvania Election Code WITHIN

FIVE DAYS AFTER THE SCHEDULED MEETING .

* * *

§ 3308. Meetings.

(a) Association IN-PERSON ASSOCIATION meetings.-- The bylaws

must require that IN-PERSON meetings of the association be held

at least once each year and provide for special meetings. The

bylaws must specify which of the association's officers, not

less than ten nor more than 60 days in advance of any meeting,

shall cause notice to be hand delivered or sent prepaid by

United States mail to the mailing address of each unit or to any

other mailing address designated in writing by the unit owner.

The notice of [any] AN IN-PERSON meeting must state the time and

place of the meeting and the items on the agenda, including the

general nature of any proposed amendment to the declaration or

bylaws, any budget or assessment changes and, where the

declaration or bylaws require approval of unit owners, any

proposal to remove an executive board member or officer.

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(A.1) VIRTUAL ASSOCIATION MEETINGS.--

(1) THE BYLAWS MUST REQUIRE THAT NOTICE OF VIRTUAL

MEETINGS OF THE ASSOCIATION BE GIVEN BY:

(I) FIRST CLASS OR EXPRESS MAIL, POSTAGE PREPAID, OR

COURIER SERVICE, CHARGES PREPAID, TO THE MAILING ADDRESS

OF EACH UNIT OR TO ANY OTHER MAILING ADDRESS DESIGNATED

IN WRITING BY THE UNIT OWNER. NOTICE UNDER THIS

SUBPARAGRAPH SHALL BE DEEMED TO HAVE BEEN GIVEN TO A UNIT

OWNER WHEN DEPOSITED IN THE UNITED STATES MAIL OR WITH A

COURIER SERVICE FOR DELIVERY TO THE UNIT OWNER.

(II) FACSIMILE TRANSMISSION, E-MAIL OR OTHER

ELECTRONIC COMMUNICATION TO THE UNIT OWNER'S FACSIMILE

NUMBER OR ADDRESS FOR E-MAIL OR OTHER ELECTRONIC

COMMUNICATIONS SUPPLIED BY THE UNIT OWNER FOR THE PURPOSE

OF NOTICE. NOTICE UNDER THIS SUBPARAGRAPH SHALL BE DEEMED

TO HAVE BEEN GIVEN TO THE UNIT OWNER WHEN SENT.

(2) (RESERVED).

(B) USE OF REMOTE TECHNOLOGY.--EXCEPT AS OTHERWISE PROVIDED

IN THE BYLAWS, AN INDIVIDUAL MAY PARTICIPATE IN A MEETING OF THE

EXECUTIVE BOARD OR ASSOCIATION BY MEANS OF A CONFERENCE

TELEPHONE OR OTHER REMOTE ELECTRONIC TECHNOLOGY, INCLUDING THE

INTERNET, WHICH ALLOWS PARTICIPANTS IN THE MEETING TO HEAR EACH

OTHER. PARTICIPATION IN A MEETING AS AUTHORIZED UNDER THIS

SUBSECTION SHALL BE DEEMED IN-PERSON ATTENDANCE AT THE MEETING.

(b) (C) Election sessions .--The bylaws must require that a

special session of the association be held not later than seven

days before the election of an executive board member or officer

of the association to allow the unit owners to meet each

candidate for an executive board position or officer position. A

special session under this subsection may be held virtually or

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in person. Each candidate for an executive board position or

officer position with the association shall have equal time to

address the unit owners during a special session under this

subsection.

§ 3412. Effect of violations on rights of action.

(a) General rule.--If a declarant or [any other person] an

executive board member subject to this subpart violates any

provision thereof or any provision of the declaration or

bylaws[, any] in executing his or her duties as a declarant or

an executive board member:

(1) Any person or class of persons adversely affected by

the violation has a claim for appropriate relief.

(2) The violation shall constitute an unfair trade

practice as defined in and may be enforced by the Office of

Attorney General under the act of December 17, 1968

(P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law.

(b) Punitive damages.--Punitive damages may be awarded in

the case of a willful violation of the subpart and, if

appropriate, the prevailing party may be entitled to an award of

costs and reasonable attorney fees.

(D) RECORDED MEETING.--IF A MEETING OF THE ASSOCIATION WILL

BE RECORDED VIA AUDIO OR VIDEO, AN ANNOUNCEMENT SHALL BE MADE AT

THE COMMENCEMENT OF THE MEETING THAT THE MEETING WILL BE

RECORDED. A RECORDED MEETING UNDER THIS SUBSECTION SHALL BE

AVAILABLE TO UNIT OWNERS FOR A PERIOD OF SIX MONTHS AFTER THE

DATE OF THE MEETING.

Section 4. Section 4103 of Title 68 is amended by adding

definitions to read:

§ 4103. Definitions.

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Subject to additional definitions contained in subsequent

provisions of this subpart which are applicable to specific

provisions of this subpart, the following words and phrases when

used in this subpart and in the declaration and bylaws shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Independent reviewer." A person who is selected by the

declarant or a majority of the proprietary lessees of a

cooperative and satisfies all of the following:

(1) Holds a certificate as a certified public accountant

issued by the Commonwealth, is licensed to practice law in

this Commonwealth or is a vote management system.

(2) Is not a proprietary lessee of the cooperative,

directly or indirectly.

(3) Has no IMMEDIATE family relationship with a

proprietary lessee of the cooperative or a cooperative

manager.

(4) Has no financial interest shared with a proprietary

lessee of the cooperative or a cooperative manager.

(5) If compensated by the declarant, a director, the

association or a cooperative manager, has disclosed the terms

of the compensation to all proprietary lessees of the

cooperative AT A SCHEDULED MEETING .

* * *

"Vote management system." A third-party vendor who operates

a digital or subscription service that securely manages the

conduct of elections and voting procedures.

Section 5. Section 4219 of Title 68 is amended by adding

subsections A SUBSECTION to read:

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§ 4219. Master associations.

* * *

(e.1) Independent reviewer.--The certificate of

incorporation or other instrument creating the master

association and the declaration of each cooperative, the powers

of which are assigned by the declaration or delegated to the

master association, shall provide that a vote by a proprietary

lessee in an election of the executive board of an association

must be submitted by the proprietary lessee to an independent

reviewer who shall tally the results of the election and certify

the results to the executive board and proprietary lessees. IN

ORDER TO BE ELIGIBLE TO VOTE IN THE ELECTION, A PROPRIETARY

LESSEE SHALL BE IN GOOD STANDING WITH THE MASTER ASSOCIATION. IF

A THIRD-PARTY VENDOR CONDUCTS THE ELECTION, THE EXECUTIVE BOARD

MAY PRESENT THE OFFICIAL ELECTION RESULTS BASED ON THE CERTIFIED

ELECTION REPORT FROM THE INDEPENDENT REVIEWER AT A MEETING OF

THE PROPRIETARY LESSEES AND SHALL ENTER THE RESULTS IN THE

MEETING RECORDS. THE EXECUTIVE BOARD SHALL ENSURE THAT ALL

MAILINGS RELATING TO THE ELECTION USE THE RETURN ADDRESS OF THE

THIRD-PARTY VENDOR THAT CONDUCTS THE ELECTION. All votes by

proprietary lessees under this subsection shall be submitted to

the independent reviewer in either an electronic or a paper

format. The interchangeable submission of votes by proprietary

lessees in an electronic and a paper format in the same election

shall be prohibited. IF VOTES ARE SUBMITTED IN AN ELECTRONIC

FORMAT, THE MASTER ASSOCIATION SHALL PROVIDE REASONABLE

ACCOMMODATIONS TO A PROPRIETARY LESSEE WHO DOES NOT HAVE ACCESS

TO ELECTRONIC MEANS TO SUBMIT THE PROPRIETARY LESSEE'S VOTE.

This subsection shall only apply to a cooperative with at least

100 units. If a cooperative has more than 100 units and less

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than 500 units, the MASTER association may opt out of the

requirements under this subsection by amending the association's

bylaws in accordance with section 4306 (relating to bylaws) A

MAJORITY VOTE OF PROPRIETARY LESSEES .

* * *

(h) Penalties.--A person who attempts to interfere with the

votes or election process under subsection (e.1) is guilty of a

misdemeanor of the first degree and, upon conviction, shall be

sentenced to pay a fine not exceeding $10,000 or to undergo

imprisonment of not more than five years, or both, in the

discretion of the court.

Section 6. Sections 4306(a)(6), 4308 and 4415 4306(A)(3) AND

(6) AND 4308 of Title 68 are amended to read:

§ 4306. Bylaws.

(a) Mandatory provisions.--The bylaws of the association

must provide for:

* * *

(3) THE QUALIFICATIONS, POWERS AND DUTIES, TERMS OF

OFFICE AND MANNER OF ELECTING EXECUTIVE BOARD MEMBERS AND

OFFICERS AND REMOVING EXECUTIVE BOARD MEMBERS AND OFFICERS

UNDER SECTION 4303(G) (RELATING TO EXECUTIVE BOARD MEMBERS

AND OFFICERS) AND FILLING VACANCIES.

* * *

(6) The method of amending the bylaws. The following

apply:

(i) The bylaws may be amended only by vote , VOTE BY

PROXY or agreement of proprietary lessees of cooperative

interests to which at least 51% of the votes in the

association are allocated as provided under section 4207

(relating to allocation of ownership interests, votes and

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common expense liabilities) ARE COLLECTED FROM UNIT

OWNERS IN PERSON, ELECTRONICALLY OR BY ABSENTEE BALLOT or

any larger majority the declaration specifies. The

declaration may specify a smaller number only if all of

the units are restricted exclusively to nonresidential

use.

(ii) The vote may be taken only at a scheduled

meeting as provided under section 4308 (relating to

meetings) that was advertised seven days in advance to

the proprietary lessees. Absentee voting shall be

permitted to proprietary lessees provided that the

ballots must be submitted to an independent reviewer

during a time period consistent with the absentee voting

provisions under Article XIII of the act of June 3, 1937

(P.L.1333, No.320), known as the Pennsylvania Election

Code WITHIN FIVE DAYS AFTER THE SCHEDULED MEETING .

* * *

§ 4308. Meetings.

(a) Association IN-PERSON ASSOCIATION meetings.-- [A] AN IN-

PERSON meeting of the association must be held at least once

each year. Special meetings of the association may be called by

the president, a majority of the executive board or by 20%, or

any lower percentage specified in the bylaws, of the proprietary

lessees. Not less than ten nor more than 60 days in advance of

any meeting, the secretary or other officer specified in the

bylaws shall cause notice to be hand delivered or sent prepaid

by United States mail to the mailing address of each unit or to

any other mailing address designated in writing by the

proprietary lessee. The notice of any meeting must state the

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

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including the general nature of any proposed amendment to the

declaration or bylaws, any budget or assessment changes and,

where the declaration or bylaws require approval of the

proprietary lessees, any proposal to remove an executive board

member or officer.

(A.1) VIRTUAL ASSOCIATION MEETINGS.--

(1) THE BYLAWS MUST REQUIRE THAT NOTICE OF VIRTUAL

MEETINGS OF THE ASSOCIATION BE GIVEN BY:

(I) FIRST CLASS OR EXPRESS MAIL, POSTAGE PREPAID, OR

COURIER SERVICE, CHARGES PREPAID, TO THE MAILING ADDRESS

OF EACH UNIT OR TO ANY OTHER MAILING ADDRESS DESIGNATED

IN WRITING BY THE PROPRIETARY LESSEE. NOTICE UNDER THIS

SUBPARAGRAPH SHALL BE DEEMED TO HAVE BEEN GIVEN TO A

PROPRIETARY LESSEE WHEN DEPOSITED IN THE UNITED STATES

MAIL OR WITH A COURIER SERVICE FOR DELIVERY TO THE

PROPRIETARY LESSEE.

(II) FACSIMILE TRANSMISSION, E-MAIL OR OTHER

ELECTRONIC COMMUNICATION TO THE PROPRIETARY LESSEE'S

FACSIMILE NUMBER OR ADDRESS FOR E-MAIL OR OTHER

ELECTRONIC COMMUNICATIONS SUPPLIED BY THE PROPRIETARY

LESSEE FOR THE PURPOSE OF NOTICE. NOTICE UNDER THIS

SUBPARAGRAPH SHALL BE DEEMED TO HAVE BEEN GIVEN TO THE

PROPRIETARY LESSEE WHEN SENT.

(2) (RESERVED).

(B) USE OF REMOTE TECHNOLOGY.--EXCEPT AS OTHERWISE PROVIDED

IN THE BYLAWS, AN INDIVIDUAL MAY PARTICIPATE IN A MEETING OF THE

EXECUTIVE BOARD OR ASSOCIATION BY MEANS OF A CONFERENCE

TELEPHONE OR OTHER REMOTE ELECTRONIC TECHNOLOGY, INCLUDING THE

INTERNET, WHICH ALLOWS PARTICIPANTS IN THE MEETING TO HEAR EACH

OTHER. PARTICIPATION IN A MEETING AS AUTHORIZED UNDER THIS

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SUBSECTION SHALL BE DEEMED IN-PERSON ATTENDANCE AT THE MEETING.

(b) (C) Election sessions.--The bylaws must require that a

special session of the association be held not later than seven

days before the election AT LEAST SEVEN DAYS PRIOR TO THE

ELECTION of an executive board member or officer of the

association to allow the proprietary lessees to meet each

candidate for an executive board position or officer position. A

special session under this subsection may be held virtually or

in person. Each candidate for an executive board position or

officer position with the association shall have equal time to

address the proprietary lessees during a special session under

this subsection.

§ 4415. Effect of violations on rights of action.

(a) General rule.--If a declarant or [any other person] an

executive board member subject to this subpart fails to comply

with any provision of this subpart or any provision of the

declaration or bylaws[, any] in executing his or her duties as a

declarant or an executive board member:

(1) Any person or class of persons adversely affected by

the failure to comply has a claim for appropriate relief.

(2) The violation shall constitute an unfair trade

practice as defined in and may be enforced by the Office of

Attorney General under the act of December 17, 1968

(P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law.

(b) Punitive damages.--Punitive damages may be awarded for a

willful failure to comply with this subpart. The court, in an

appropriate case, may award reasonable attorney fees.

(D) RECORDED MEETING.--IF A MEETING OF THE ASSOCIATION WILL

BE RECORDED VIA AUDIO OR VIDEO, AN ANNOUNCEMENT SHALL BE MADE AT

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THE COMMENCEMENT OF THE MEETING THAT THE MEETING WILL BE

RECORDED. A RECORDED MEETING UNDER THIS SUBSECTION SHALL BE

AVAILABLE TO PROPRIETARY LESSEES FOR A PERIOD OF SIX MONTHS

AFTER THE DATE OF THE MEETING.

Section 7. Section 5103 of Title 68 is amended by adding

definitions to read:

§ 5103. Definitions.

The following words and phrases when used in this subpart and

in the declaration and bylaws shall have the meanings given to

them in this section unless specifically provided otherwise or

unless the context clearly indicates otherwise:

* * *

"Independent reviewer." A person who is selected by the

declarant or a majority of the unit owners of a planned

community and satisfies all of the following:

(1) Holds a certificate as a certified public accountant

issued by the Commonwealth, is licensed to practice law in

this Commonwealth or is a vote management system.

(2) Is not a unit owner of the planned community,

directly or indirectly.

(3) Has no IMMEDIATE family relationship with a unit

owner of the planned community or a planned community

manager.

(4) Has no financial interest shared with a unit owner

of the planned community or a planned community manager.

(5) If compensated by the declarant, a director, the

association or a planned community manager, has disclosed the

terms of the compensation to all unit owners of the planned

community AT A SCHEDULED MEETING .

* * *

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"Vote management system." A third-party vendor who operates

a digital or subscription service that securely manages the

conduct of elections and voting procedures.

* * *

Section 8. Section 5222 of Title 68 is amended by adding

subsections A SUBSECTION to read:

§ 5222. Master associations.

* * *

(e.1) Independent reviewer.--The instrument creating the

master association and the declaration of each planned community

of the organizational documents of other associations, the

powers of which are assigned pursuant to the declaration or

organizational documents or delegated to the master association,

shall also provide that a vote by a unit owner in an election of

the members of the master association governing body must be

submitted by the unit owner to an independent reviewer who shall

tally the results of the election and certify the results to the

executive board and unit owner. IN ORDER TO BE ELIGIBLE TO VOTE

IN THE ELECTION, A UNIT OWNER SHALL BE IN GOOD STANDING WITH THE

ASSOCIATION. IF A THIRD-PARTY VENDOR CONDUCTS THE ELECTION, THE

EXECUTIVE BOARD MAY PRESENT THE OFFICIAL ELECTION RESULTS BASED

ON THE CERTIFIED ELECTION REPORT FROM THE INDEPENDENT REVIEWER

AT A MEETING OF THE UNIT OWNERS AND SHALL ENTER THE RESULTS IN

THE MEETING RECORDS. THE EXECUTIVE BOARD SHALL ENSURE THAT ALL

MAILINGS RELATING TO THE ELECTION USE THE RETURN ADDRESS OF THE

THIRD-PARTY VENDOR THAT CONDUCTS THE ELECTION. All votes by unit

owners under this subsection shall be submitted to the

independent reviewer in either an electronic or a paper format.

The interchangeable submission of votes by unit owners in an

electronic and a paper format in the same election shall be

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prohibited. IF VOTES ARE SUBMITTED IN AN ELECTRONIC FORMAT, THE

MASTER ASSOCIATION SHALL PROVIDE REASONABLE ACCOMMODATIONS TO A

UNIT OWNER WHO DOES NOT HAVE ACCESS TO ELECTRONIC MEANS TO

SUBMIT THE UNIT OWNER'S VOTE. This subsection shall only apply

to a planned community with at least 100 units. If a planned

community has more than 100 units and less than 500 units, the

MASTER association may opt out of the requirements under this

subsection by amending the association's bylaws in accordance

with section 5306 (relating to bylaws) A MAJORITY VOTE OF UNIT

OWNERS .

* * *

(h) Penalties.--A person who attempts to interfere with the

votes or election process under subsection (e.1) is guilty of a

misdemeanor of the first degree and, upon conviction, shall be

sentenced to pay a fine not exceeding $10,000 or to undergo

imprisonment of not more than five years, or both, in the

discretion of the court.

Section 9. Sections 5306(a)(6), 5308 and 5412 5306(A)(3) AND

(6) AND 5308 of Title 68 are amended to read:

§ 5306. Bylaws.

(a) Mandatory provisions.--The bylaws of the association

shall provide for all of the following:

* * *

(3) THE QUALIFICATIONS, POWERS AND DUTIES, TERMS OF

OFFICE AND MANNER OF ELECTING EXECUTIVE BOARD MEMBERS AND

OFFICERS AND REMOVING EXECUTIVE BOARD MEMBERS AND OFFICERS

UNDER SECTION 5303(G) (RELATING TO EXECUTIVE BOARD MEMBERS

AND OFFICERS) AND FILLING VACANCIES.

* * *

(6) The method of amending the bylaws. The following

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apply:

(i) The bylaws may be amended only by vote , VOTE BY

PROXY or agreement of unit owners of units to which at

least:

(A) fifty-one percent of votes in the

association are allocated as provided under section

5208 (relating to allocation of votes and common

expense liabilities) ARE COLLECTED FROM UNIT OWNERS

IN PERSON, ELECTRONICALLY OR BY ABSENTEE BALLOT ;

(B) a larger percentage of the votes in the

association as specified in the bylaws; or

association as specified in the bylaws if all units

are restricted exclusively to nonresidential use.

(ii) The vote may be taken only at a scheduled

meeting as provided under section 5308 (relating to

meetings) that was advertised seven days in advance to

the unit owners. Absentee voting shall be permitted to

unit owners provided that the ballots must be submitted

to an independent reviewer during a time period

consistent with the absentee voting provisions under

Article XIII of the act of June 3, 1937 (P.L.1333,

No.320), known as the Pennsylvania Election Code WITHIN

FIVE DAYS AFTER THE SCHEDULED MEETING .

* * *

§ 5308. Meetings.

(a) Association IN-PERSON ASSOCIATION meetings.-- The bylaws

shall require that IN-PERSON meetings of the association be held

at least once each year and shall provide for special meetings.

The bylaws shall specify which of the association's officers,

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not less than ten nor more than 60 days in advance of any

meeting, shall cause notice to be hand delivered or sent prepaid

by United States mail to the mailing address of each unit or to

any other mailing address designated in writing by the unit

owner. The notice of any meeting must state the time and place

of the meeting and the items on the agenda, including the

general nature of any proposed amendment to the declaration or

bylaws; any budget or assessment changes; and, where the

declaration or bylaws require approval of unit owners, any

proposal to remove a director or officer.

(A.1) VIRTUAL ASSOCIATION MEETINGS.--

(1) THE BYLAWS MUST REQUIRE THAT NOTICE OF VIRTUAL

MEETINGS OF THE ASSOCIATION BE GIVEN BY:

(I) FIRST CLASS OR EXPRESS MAIL, POSTAGE PREPAID, OR

COURIER SERVICE, CHARGES PREPAID, TO THE MAILING ADDRESS

OF EACH UNIT OR TO ANY OTHER MAILING ADDRESS DESIGNATED

IN WRITING BY THE UNIT OWNER. NOTICE UNDER THIS

SUBPARAGRAPH SHALL BE DEEMED TO HAVE BEEN GIVEN TO AN

UNIT OWNER WHEN DEPOSITED IN THE UNITED STATES MAIL OR

WITH A COURIER SERVICE FOR DELIVERY TO THE UNIT OWNER.

(II) FACSIMILE TRANSMISSION, E-MAIL OR OTHER

ELECTRONIC COMMUNICATION TO THE UNIT OWNER'S FACSIMILE

NUMBER OR ADDRESS FOR E-MAIL OR OTHER ELECTRONIC

COMMUNICATIONS SUPPLIED BY THE UNIT OWNER FOR THE PURPOSE

OF NOTICE. NOTICE UNDER THIS SUBPARAGRAPH SHALL BE DEEMED

TO HAVE BEEN GIVEN TO THE UNIT OWNER WHEN SENT.

(2) (RESERVED).

(B) USE OF REMOTE TECHNOLOGY.--EXCEPT AS OTHERWISE PROVIDED

IN THE BYLAWS, AN INDIVIDUAL MAY PARTICIPATE IN A MEETING OF THE

EXECUTIVE BOARD OR ASSOCIATION BY MEANS OF A CONFERENCE

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TELEPHONE OR OTHER REMOTE ELECTRONIC TECHNOLOGY, INCLUDING THE

INTERNET, WHICH ALLOWS EACH PARTICIPANT IN THE MEETING TO HEAR

EACH OTHER. PARTICIPATION IN A MEETING AS AUTHORIZED UNDER THIS

SUBSECTION SHALL BE DEEMED IN-PERSON ATTENDANCE AT THE MEETING.

(b) (C) Election sessions.--The bylaws shall require that a

special session of the association be held not later than seven

days before the election of an executive board member or officer

of the association to allow the unit owners to meet each

candidate for an executive board position or officer position. A

special session under this subsection may be held virtually or

in person. Each candidate for an executive board position or

officer position with the association shall have equal time to

address the unit owners during a special session under this

subsection.

§ 5412. Effect of violations on rights of action.

(a) General rule.--If a declarant or [any other person] an

executive board member subject to this subpart violates any

provision of this subpart or any provisions of the declaration

or bylaws[, any] in executing his or her duties as a declarant

or an executive board member:

(1) Any person or class of persons adversely affected by

the violation has a claim for appropriate relief.

(2) The violation shall constitute an unfair trade

practice as defined in and may be enforced by the Office of

Attorney General under the act of December 17, 1968

(P.L.1224, No.387), known as the Unfair Trade Practices and

Consumer Protection Law.

(b) Punitive damages.--Punitive damages may be awarded in

the case of a willful violation of the subpart and, if

appropriate, the prevailing party may be entitled to an award of

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costs and reasonable attorney fees.

(D) RECORDED MEETING.--IF A MEETING OF THE ASSOCIATION WILL

BE RECORDED VIA AUDIO OR VIDEO, AN ANNOUNCEMENT SHALL BE MADE AT

THE COMMENCEMENT OF THE MEETING THAT THE MEETING WILL BE

RECORDED. A RECORDED MEETING UNDER THIS SUBSECTION SHALL BE

AVAILABLE TO UNIT OWNERS FOR A PERIOD OF SIX MONTHS AFTER THE

DATE OF THE MEETING.

Section 10. This act shall take effect in 60 days.

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