SENATE AMENDED
PRIOR PRINTER'S NOS. 2035, 2190, 3242
PRINTER'S NO. 3513
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1795
Session of
2021
INTRODUCED BY R. BROWN, RADER, HELM, M. MACKENZIE, CIRESI,
GAYDOS AND T. DAVIS, AUGUST 17, 2021
SENATOR PITTMAN, URBAN AFFAIRS AND HOUSING, IN SENATE, AS
AMENDED, SEPTEMBER 21, 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 AND FOR VOTING AND PROXIES; 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
AND FOR VOTING AND PROXIES; 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 FOR VOTING AND PROXIES.
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:
ยง 3103. 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
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unless the context clearly indicates otherwise:
* * *
"IMMEDIATE FAMILY." A PARENT, SPOUSE, CHILD, BROTHER OR
SISTER.
"Independent reviewer." A person who is selected by the
declarant or a majority of the unit owners EXECUTIVE BOARD 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 AND SPECIALIZES IN CONDOMINIUMS OR REAL
ESTATE LAW 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:
ยง 3303. Executive board members and officers.
* * *
(d) Election of members during transfer of declarant
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control.--
(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 SHALL 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. 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 100 500 units. If a condominium has
more than 100 units and less than 500 units, the association
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may opt out of IN TO the requirements under this paragraph by
a majority vote of unit owners. A VOTE OF AT LEAST 51% OF THE
VOTES COLLECTED FROM THE UNIT OWNERS IN PERSON,
ELECTRONICALLY OR BY ABSENTEE BALLOT WHICH ARE IN FAVOR OF
THE REQUIREMENTS UNDER THIS PARAGRAPH.
(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 SHALL present the official election
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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. 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 100 500 units. If a condominium has
more than 100 units and less than 500 units, the association
may opt out of IN TO the requirements under this paragraph by
amending the association's bylaws by a majority vote of unit
owners .
* * *
(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
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:
ยง 3306. Bylaws.
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(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 are collected
from unit owners in person, electronically or by
absentee ballot WHICH ARE IN FAVOR OF THE AMENDMENT ;
(B) any larger majority as specified in the
bylaws; or
(C) a smaller number MAJORITY as specified in
the bylaws 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 14 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 within five days after the
scheduled meeting .
* * *
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ยง 3308. Meetings.
(a) 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 A
MEETING MAY BE DELIVERED BY ELECTRONIC MEANS IF THE UNIT OWNER
HAS AGREED IN WRITING TO ACCEPT THE NOTICE BY ELECTRONIC MEANS
OR WHERE THE BYLAWS PERMIT ELECTRONIC NOTICES. 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.
(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
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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.
(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
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.
(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 3310 OF THE ACT IS AMENDED BY ADDING
SUBSECTIONS TO READ:
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ยง 3310. VOTING; PROXIES.
* * *
(E) APPROVED METHODS OF VOTING.--METHODS OF VOTING SHALL BE
IN ACCORDANCE WITH THE FOLLOWING:
(1) EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED IN AN
ASSOCIATION'S DECLARATION OR BYLAWS, THE VOTING RIGHTS OF A
UNIT OWNER MAY BE CAST OR GIVEN IN THE FOLLOWING WAYS:
(I) IN PERSON OR BY PROXY AT A MEETING OF THE
ASSOCIATION;
(II) BY ABSENTEE OR ELECTRONIC BALLOT IN ACCORDANCE
WITH THIS SUBPART; OR
(III) BY ANOTHER METHOD OF VOTING EXPRESSLY PROVIDED
IN THE ASSOCIATION'S DECLARATION OR BYLAWS.
(2) AN ABSENTEE OR ELECTRONIC BALLOT MAY:
(I) BE COUNTED AS A UNIT OWNER PRESENT AND VOTING
FOR THE PURPOSE OF ESTABLISHING A QUORUM, AND OTHERWISE,
ONLY FOR AGENDA ITEMS APPEARING ON THE BALLOT.
(II) NOT BE COUNTED EVEN IF PROPERLY DELIVERED, IF
THE UNIT OWNER ATTENDS THE MEETING TO VOTE IN PERSON. A
VOTE CAST AT A MEETING BY A UNIT OWNER SUPERSEDES A VOTE
SUBMITTED BY ABSENTEE OR ELECTRONIC BALLOT PREVIOUSLY
SUBMITTED FOR THAT AGENDA ITEM.
(3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM
"ELECTRONIC BALLOT" MEANS A BALLOT CAST OR GIVEN BY
ELECTRONIC TRANSMISSION OVER THE INTERNET, VOTE MANAGEMENT
SYSTEM OR THE ASSOCIATION'S COMMUNITY NETWORK, WHETHER BY
DIRECT CONNECTION, INTRANET, TELECOPIER, ELECTRONIC MAIL OR
OTHER TECHNOLOGICAL MEANS, IF THE IDENTITY OF THE UNIT OWNER
SUBMITTING THE BALLOT CAN BE CONFIRMED AND A RECEIPT OF THE
ELECTRONIC TRANSMISSION AND BALLOT CAN BE MADE AVAILABLE TO
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THE UNIT OWNER.
(F) ACCLAMATION.--UNLESS THE BYLAWS OF THE ASSOCIATION
PROVIDE OTHERWISE, IN THE EVENT THAT AN ELECTION FOR A POSITION
ON THE EXECUTIVE BOARD IS UNCONTESTED, THE OFFICER OR CHAIR
PRESIDING AT THE ELECTION MEETING MAY DECLARE THE NOMINEE
ELECTED BY ACCLAMATION AFTER DETERMINING THERE ARE NO FURTHER
NOMINATIONS.
Section 4 5. Section 4103 of Title 68 is amended by adding
definitions to read:
ยง 4103. Definitions.
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:
* * *
"IMMEDIATE FAMILY." A PARENT, SPOUSE, CHILD, BROTHER OR
SISTER.
"Independent reviewer." A person who is selected by the
declarant or a majority of the proprietary lessees EXECUTIVE
BOARD 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 SPECIALIZING IN COOPERATIVE OR REAL ESTATE
LAW 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
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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 6. Section 4219 of Title 68 is amended by adding a
subsection to read:
ยง 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 SHALL 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
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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. 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 100 500 units. If a
cooperative has more than 100 units and less than 500 units, the
master association may opt out of IN TO the requirements under
this subsection by a majority vote of proprietary lessees. A
VOTE OF AT LEAST 51% OF THE VOTES COLLECTED FROM THE UNIT OWNERS
IN PERSON, ELECTRONICALLY OR BY ABSENTEE BALLOT WHICH ARE IN
FAVOR OF THE REQUIREMENTS UNDER THIS PARAGRAPH.
* * *
Section 6 7. Sections 4306(a)(3) and (6) and 4308 of Title
68 are amended to read:
ยง 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
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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 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.
(I) THE BYLAWS MAY BE AMENDED ONLY BY VOTE, VOTE BY
PROXY OR AGREEMENT OF PROPRIETARY LESSEES OF COOPERATIVE
INTERESTS TO WHICH AT LEAST:
(A) FIFTY-ONE PERCENT OF THE VOTES COLLECTED
FROM UNIT OWNERS IN PERSON, ELECTRONICALLY OR BY
ABSENTEE BALLOT ARE IN FAVOR OF THE AMENDMENT.
(B) A LARGER MAJORITY AS SPECIFIED IN THE
BYLAWS.
(C) A SMALLER MAJORITY AS SPECIFIED IN THE
BYLAWS 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 14 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
within five days after the scheduled meeting .
* * *
ยง 4308. Meetings.
[A] (a) In-person association meetings.-- An in- person
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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 A MEETING MAY BE DELIVERED BY
ELECTRONIC MEANS IF THE UNIT OWNER HAS AGREED IN WRITING TO
ACCEPT THE NOTICE BY ELECTRONIC MEANS OR WHERE THE BYLAWS PERMIT
ELECTRONIC NOTICES. 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 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.
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(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
subsection shall be deemed in-person attendance at the meeting.
(c) Election sessions.--The bylaws must require that a
special session of the association be held 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.
(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 proprietary lessees for a period of six months
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after the date of the meeting.
SECTION 8. SECTION 4310 OF THE ACT IS AMENDED BY ADDING
SUBSECTIONS TO READ:
ยง 4310. VOTING; PROXIES.
* * *
(E) APPROVED METHODS OF VOTING.--METHODS OF VOTING SHALL BE
IN ACCORDANCE WITH THE FOLLOWING:
(1) EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED IN AN
ASSOCIATION'S DECLARATION OR BYLAWS, THE VOTING RIGHTS OF A
UNIT OWNER MAY BE CAST OR GIVEN IN THE FOLLOWING WAYS:
(I) IN PERSON OR BY PROXY AT A MEETING OF THE
ASSOCIATION;
(II) BY ABSENTEE OR ELECTRONIC BALLOT IN ACCORDANCE
WITH THIS SUBPART; OR
(III) BY ANOTHER METHOD OF VOTING EXPRESSLY PROVIDED
IN THE ASSOCIATION'S DECLARATION OR BYLAWS.
(2) AN ABSENTEE OR ELECTRONIC BALLOT MAY:
(I) BE COUNTED AS A UNIT OWNER PRESENT AND VOTING
FOR THE PURPOSE OF ESTABLISHING A QUORUM, AND OTHERWISE,
ONLY FOR AGENDA ITEMS APPEARING ON THE BALLOT.
(II) NOT BE COUNTED EVEN IF PROPERLY DELIVERED, IF
THE UNIT OWNER ATTENDS THE MEETING TO VOTE IN PERSON. A
VOTE CAST AT A MEETING BY A UNIT OWNER SUPERSEDES A VOTE
SUBMITTED BY ABSENTEE OR ELECTRONIC BALLOT PREVIOUSLY
SUBMITTED FOR THAT AGENDA ITEM.
(3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM
"ELECTRONIC BALLOT" MEANS A BALLOT CAST OR GIVEN BY
ELECTRONIC TRANSMISSION OVER THE INTERNET, VOTE MANAGEMENT
SYSTEM OR THE ASSOCIATION'S COMMUNITY NETWORK, WHETHER BY
DIRECT CONNECTION, INTRANET, TELECOPIER, ELECTRONIC MAIL OR
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OTHER TECHNOLOGICAL MEANS, IF THE IDENTITY OF THE UNIT OWNER
SUBMITTING THE BALLOT CAN BE CONFIRMED AND A RECEIPT OF THE
ELECTRONIC TRANSMISSION AND BALLOT CAN BE MADE AVAILABLE TO
THE UNIT OWNER.
(F) ACCLAMATION.--UNLESS THE BYLAWS OF THE ASSOCIATION
PROVIDE OTHERWISE, IN THE EVENT THAT AN ELECTION FOR A POSITION
ON THE EXECUTIVE BOARD IS UNCONTESTED, THE OFFICER OR CHAIR
PRESIDING AT THE ELECTION MEETING MAY DECLARE THE NOMINEE
ELECTED BY ACCLAMATION AFTER DETERMINING THERE ARE NO FURTHER
NOMINATIONS.
Section 7 9. Section 5103 of Title 68 is amended by adding
definitions to read:
ยง 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:
* * *
"IMMEDIATE FAMILY." A PARENT, SPOUSE, CHILD, BROTHER OR
SISTER.
"Independent reviewer." A person who is selected by the
declarant or a majority of the unit owners EXECUTIVE BOARD 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 SPECIALIZING IN PLANNED COMMUNITY OR REAL
ESTATE LAW 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
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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 .
* * *
"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 10. Section 5222 of Title 68 is amended by adding
a subsection to read:
ยง 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 SHALL present the official election results
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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. 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 100 500 units. If a planned
community has more than 100 units and less than 500 units, the
master association may opt out of IN TO the requirements under
this subsection by a majority vote of unit owners. A VOTE OF AT
LEAST 51% OF THE VOTES COLLECTED FROM THE UNIT OWNERS IN PERSON,
ELECTRONICALLY OR BY ABSENTEE BALLOT WHICH ARE IN FAVOR OF THE
REQUIREMENTS UNDER THIS PARAGRAPH.
* * *
Section 9 11. Sections 5306(a)(3) and (6) and 5308 of Title
68 are amended to read:
ยง 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) 5303(F) (relating to executive board
members and officers) and filling vacancies.
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* * *
(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 votes are collected
from unit owners in person, electronically or by
absentee ballot ARE IN FAVOR OF THE AMENDMENT ;
(B) a larger percentage MAJORITY of the votes in
the association as specified in the bylaws; or
(C) a smaller percentage MAJORITY of the votes
in the 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 14 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 within five days after the
scheduled meeting .
* * *
ยง 5308. Meetings.
(a) 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, 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
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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 A MEETING MAY BE DELIVERED BY ELECTRONIC MEANS IF
THE UNIT OWNER HAS AGREED IN WRITING TO ACCEPT THE NOTICE BY
ELECTRONIC MEANS OR WHERE THE BYLAWS PERMIT ELECTRONIC NOTICES.
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
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executive board or association by means of a conference
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.
(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.
(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 12. SECTION 5310 OF THE ACT IS AMENDED BY ADDING
SUBSECTIONS TO READ:
ยง 5310. VOTING; PROXIES.
* * *
(E) APPROVED METHODS OF VOTING.--METHODS OF VOTING SHALL BE
IN ACCORDANCE WITH THE FOLLOWING:
(1) EXCEPT TO THE EXTENT EXPRESSLY PROHIBITED IN AN
ASSOCIATION'S DECLARATION OR BYLAWS, THE VOTING RIGHTS OF A
UNIT OWNER MAY BE CAST OR GIVEN IN THE FOLLOWING WAYS:
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(I) IN PERSON OR BY PROXY AT A MEETING OF THE
ASSOCIATION;
(II) BY ABSENTEE OR ELECTRONIC BALLOT IN ACCORDANCE
WITH THIS SUBPART; OR
(III) BY ANOTHER METHOD OF VOTING EXPRESSLY PROVIDED
IN THE ASSOCIATION'S DECLARATION OR BYLAWS.
(2) AN ABSENTEE OR ELECTRONIC BALLOT MAY:
(I) BE COUNTED AS A UNIT OWNER PRESENT AND VOTING
FOR THE PURPOSE OF ESTABLISHING A QUORUM, AND OTHERWISE,
ONLY FOR AGENDA ITEMS APPEARING ON THE BALLOT.
(II) NOT BE COUNTED EVEN IF PROPERLY DELIVERED, IF
THE UNIT OWNER ATTENDS THE MEETING TO VOTE IN PERSON. A
VOTE CAST AT A MEETING BY A UNIT OWNER SUPERSEDES A VOTE
SUBMITTED BY ABSENTEE OR ELECTRONIC BALLOT PREVIOUSLY
SUBMITTED FOR THAT AGENDA ITEM.
(3) FOR THE PURPOSES OF THIS SUBSECTION, THE TERM
"ELECTRONIC BALLOT" MEANS A BALLOT CAST OR GIVEN BY
ELECTRONIC TRANSMISSION OVER THE INTERNET, VOTE MANAGEMENT
SYSTEM OR THE ASSOCIATION'S COMMUNITY NETWORK, WHETHER BY
DIRECT CONNECTION, INTRANET, TELECOPIER, ELECTRONIC MAIL OR
OTHER TECHNOLOGICAL MEANS, IF THE IDENTITY OF THE UNIT OWNER
SUBMITTING THE BALLOT CAN BE CONFIRMED AND A RECEIPT OF THE
ELECTRONIC TRANSMISSION AND BALLOT CAN BE MADE AVAILABLE TO
THE UNIT OWNER.
(F) ACCLAMATION.--UNLESS THE BYLAWS OF THE ASSOCIATION
PROVIDE OTHERWISE, IN THE EVENT THAT AN ELECTION FOR A POSITION
ON THE EXECUTIVE BOARD IS UNCONTESTED, THE OFFICER OR CHAIR
PRESIDING AT THE ELECTION MEETING MAY DECLARE THE NOMINEE
ELECTED BY ACCLAMATION AFTER DETERMINING THERE ARE NO FURTHER
NOMINATIONS.
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Section 10 13. This act shall take effect in 60 180 days.
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