| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 569, 1198 | PRINTER'S NO. 1355 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BROWNE, ROBBINS, BOSCOLA, ORIE, TOMLINSON, WAUGH, WOZNIAK, VANCE, EARLL, FOLMER AND WONDERLING, MARCH 2, 2009 |
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| AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JULY 28, 2009 |
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| AN ACT |
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1 | Amending the act of August 24, 1963 (P.L.1175, No.497), entitled |
2 | "An act to codify, amend, revise and consolidate the laws |
3 | relating to mechanics' liens," further providing for |
4 | definitions and, for waiver of lien by claimant and for | <-- |
5 | waiver by contractor and effect on subcontractor. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | Section 1. Sections 201(14) and 401, 401 and 402(a) of the | <-- |
9 | act of August 24, 1963 (P.L.1175, No.497), known as the |
10 | Mechanics' Lien Law of 1963, amended June 29, 2006 (P.L.210, |
11 | No.52), are amended to read: |
12 | Section 201. Definitions.--The following words, terms and |
13 | phrases when used in this act shall have the meaning ascribed to |
14 | them in this section, except where the context clearly indicates |
15 | a different meaning: |
16 | * * * |
17 | (14) "Residential [building] property" means property on |
18 | which there is or will be constructed a residential building not |
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1 | more than three stories in height, not including any basement |
2 | level, regardless of whether any portion of that basement is at |
3 | grade level, or which is zoned or otherwise approved for |
4 | residential development on which there is or will be constructed |
5 | a residential building not more than three stories in height, |
6 | not including any basement level, regardless of whether any |
7 | portion of that basement is at grade level, planned residential |
8 | development or agricultural use, or for which a residential |
9 | subdivision or land development plan or planned residential |
10 | development plan has received preliminary, tentative or final |
11 | approval on which there is or will be constructed a residential |
12 | building not more than three stories in height, not including |
13 | any basement level, regardless of whether any portion of that |
14 | basement is at grade level, pursuant to the act of July 31, 1968 |
15 | (P.L.805, No.247), known as the "Pennsylvania Municipalities |
16 | Planning Code." |
17 | Section 401. Waiver of Lien by Claimant.-- |
18 | (a) Residential [Buildings] Property. |
19 | [(1)] A contractor or subcontractor may waive his right to |
20 | file a claim against residential property [for the erection, |
21 | construction, alteration or repair of a residential building, in |
22 | which the total contract price between the owner and the |
23 | contractor is less than one million dollars ($1,000,000),] by a |
24 | written instrument signed by him or by any conduct which |
25 | operates equitably to estop such contractor from filing a claim. |
26 | [(2) (i) A subcontractor may waive his right to file a |
27 | claim against property for the erection, construction, |
28 | alteration or repair of a residential building, in which the |
29 | total contract price between the owner and the contractor is |
30 | less than one million dollars ($1,000,000), by a written |
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1 | instrument signed by him or by any conduct which operates |
2 | equitably to estop him from filing a claim. |
3 | (ii) A subcontractor may waive his right to file a claim |
4 | against the property, irrespective of the contract price between |
5 | the owner and the contractor, of a residential building by a |
6 | written instrument signed by him or by any conduct which |
7 | operates equitably to estop him from filing a claim, provided |
8 | the contractor has posted a bond guaranteeing payment for labor |
9 | and materials provided by subcontractors.] |
10 | (b) Nonresidential Buildings. |
11 | (1) Except as provided in subsection [(a)(1)] (a), a waiver |
12 | by a contractor of lien rights is against public policy, |
13 | unlawful and void unless given in consideration for payment for |
14 | the work, services, materials or equipment provided and only to |
15 | the extent that such payment is actually received. |
16 | (2) Except as provided in subsection [(a)(2)] (a), a waiver |
17 | by a subcontractor of lien rights is against public policy, |
18 | unlawful and void, unless given in consideration for payment for |
19 | the work, services, materials or equipment provided and only to |
20 | the extent that such payment is actually received, or unless the |
21 | contractor has posted a bond guaranteeing payment for labor and |
22 | materials provided by subcontractors. |
23 | Section 402. Waiver by Contractor; Effect on | <-- |
24 | Subcontractor.-- |
25 | (a) General rule.--[Provided] To the extent that lien rights |
26 | may be validly waived [as set forth under section 401] by a |
27 | contractor or subcontractor under section 401(a) or where the |
28 | contractor has posted a bond under section 401(b)(2), a written |
29 | contract between the owner and a contractor, or a separate |
30 | written instrument signed by the contractor, which provides that |
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1 | no claim shall be filed by anyone, shall be binding: but the |
2 | only admissible evidence thereof, as against a subcontractor, |
3 | shall be proof of actual notice thereof to him before any labor |
4 | or materials were furnished by him; or proof that such contract |
5 | or separate written instrument was filed in the office of the |
6 | prothonotary prior to the commencement of the work upon the |
7 | ground or within ten (10) days after the execution of the |
8 | principal contract or not less than ten (10) days prior to the |
9 | contract with the claimant subcontractor, indexed in the name of |
10 | the contractor as defendant and the owner as plaintiff and also |
11 | in the name of the contractor as plaintiff and the owner as |
12 | defendant. The only admissible evidence that such a provision |
13 | has, notwithstanding its filing, been waived in favor of any |
14 | subcontractor, shall be a written agreement to that effect |
15 | signed by all those who, under the contract, have an adverse |
16 | interest to the subcontractor's allegation. |
17 | * * * |
18 | Section 2. This act shall take effect in 60 days. |
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