PRINTER'S NO. 4267
No. 3097 Session of 1994
INTRODUCED BY BELFANTI, SURRA, GIGLIOTTI, STEELMAN, CALTAGIRONE,
LEVDANSKY, BELARDI, PISTELLA, PESCI, MIHALICH, VEON, TRELLO,
COLAFELLA, McGEEHAN AND RICHARDSON, OCTOBER 3, 1994
REFERRED TO COMMITTEE ON LABOR RELATIONS, OCTOBER 3, 1994
AN ACT
1 Providing for labor concession liens.
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Short title.
5 This act shall be known and may be cited as the Labor
6 Concession Lien Law.
7 Section 2. Definitions.
8 The following words and phrases when used in this act shall
9 have the meanings given to them in this section unless the
10 context clearly indicates otherwise:
11 "Concession." A contractual reduction in wages or benefits.
12 "Employment site." One or more facilities at which employees
13 are covered by an agreement between an employer and a union.
14 Section 3. Lien existence.
15 If agreed to by an employer and a union in a collective
16 bargaining agreement or other contract, a union that grants a
17 concession in anticipation of future benefits shall have a labor
1 concession lien on behalf of its members covered by the
2 agreement upon the property of the employer at the employment
3 site for the value of the concession. The parties shall by
4 agreement determine the nature and value of anticipated future
5 benefits and the value of the concession.
6 Section 4. Attachment, notice and perfection.
7 A labor concession lien is perfected when the union files a
8 notice of lien in the office of the recorder of deeds or
9 prothonotary or other office that performs similar duties for
10 the county in which the employment site is located. A notice of
11 lien shall include all of the following information:
12 (1) The name of the employer.
13 (2) The name of the union.
14 (3) A legal description of the employment site that is
15 subject to the lien and a description of personal property
16 that is subject to the lien.
17 (4) The conditions under which the lien may be released.
18 Section 5. Continuation.
19 A labor concession lien continues until the union releases it
20 or the conditions under which the lien may be released are
21 satisfied or by order of court.
22 Section 6. Priority.
23 A labor concession lien shall have priority over all liens
24 that are filed or recorded after a labor concession lien is
25 perfected except for any of the following:
26 (1) Tax and special assessment liens.
27 (2) A purchase money security interest in property
28 obtained by the employer after the concession lien is
29 perfected and that is used as collateral to secure the
30 purchase price.
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1 (3) A lien filed or recorded for the nonpayment of wages
2 owed to employees.
3 (4) A debt incurred that satisfies the conditions of
4 section 4(4).
5 Section 7. Discharge or release.
6 An employer may have the lien discharged or released only by
7 filing a motion to show cause why the lien should be discharged
8 or released and after a hearing on the merits by the court that
9 results in a decision in favor of the employer.
10 Section 8. Lien proceeds.
11 A union shall distribute all proceeds obtained through
12 enforcement of a labor concession lien to its members covered by
13 the agreement that acknowledges the lien. The union may
14 determine who is eligible to receive proceeds and the method for
15 distributing the proceeds.
16 Section 9. Applicability.
17 This act shall apply to agreements entered into, renewed,
18 extended or modified on the effective date of this section.
19 Section 10. Effective date.
20 This act shall take effect immediately.
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