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        PRIOR PRINTER'S NO. 816                        PRINTER'S NO. 882

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 726 Session of 2007


        INTRODUCED BY BROWNE, WONDERLING, GREENLEAF, BOSCOLA, M. WHITE,
           FOLMER, ROBBINS, TOMLINSON, WAUGH AND ORIE, APRIL 9, 2007

        SENATOR GORDNER, LABOR AND INDUSTRY, AS AMENDED, APRIL 24, 2007

                                     AN ACT

     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.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 201(14) and section 401 of the act of
     8  August 24, 1963 (P.L.1175, No.497), known as the Mechanics' Lien
     9  Law of 1963, amended June 29, 2006 (P.L.210, No.52), are amended
    10  to read:
    11     Section 201.  Definitions.--The following words, terms and
    12  phrases when used in this act shall have the meaning ascribed to
    13  them in this section, except where the context clearly indicates
    14  a different meaning:
    15     * * *
    16     (14)  "Residential [building] property" means property on
    17  which there is or will be constructed a residential building not
    18  more than three stories in height, not including any basement
    19  level, regardless of whether any portion of that basement is at

     1  grade level, or which is zoned or otherwise approved for
     2  residential development ON WHICH THERE IS OR WILL BE CONSTRUCTED  <--
     3  A RESIDENTIAL BUILDING NOT MORE THAN THREE STORIES IN HEIGHT,
     4  NOT INCLUDING ANY BASEMENT LEVEL, REGARDLESS OF WHETHER ANY
     5  PORTION OF THAT BASEMENT IS AT GRADE LEVEL, planned residential
     6  development or agricultural use, or for which a residential
     7  subdivision or land development plan or planned residential
     8  development plan has received preliminary, tentative or final
     9  approval ON WHICH THERE IS OR WILL BE CONSTRUCTED A RESIDENTIAL   <--
    10  BUILDING NOT MORE THAN THREE STORIES IN HEIGHT, NOT INCLUDING
    11  ANY BASEMENT LEVEL, REGARDLESS OF WHETHER ANY PORTION OF THAT
    12  BASEMENT IS AT GRADE LEVEL, pursuant to the act of July 31, 1968
    13  (P.L.805, No.247), known as the "Pennsylvania Municipalities
    14  Planning Code."
    15     Section 401.  Waiver of Lien by Claimant.--
    16     (a)  Residential [Buildings] Property.
    17     [(1)]  A contractor or subcontractor may waive his right to
    18  file a claim against residential property [for the erection,
    19  construction, alteration or repair of a residential building, in
    20  which the total contract price between the owner and the
    21  contractor is less than one million dollars ($1,000,000),] by a
    22  written instrument signed by him or by any conduct which
    23  operates equitably to estop such contractor from filing a claim.
    24     [(2)  (i)  A subcontractor may waive his right to file a
    25  claim against property for the erection, construction,
    26  alteration or repair of a residential building, in which the
    27  total contract price between the owner and the contractor is
    28  less than one million dollars ($1,000,000), by a written
    29  instrument signed by him or by any conduct which operates
    30  equitably to estop him from filing a claim.
    20070S0726B0882                  - 2 -     

     1     (ii)  A subcontractor may waive his right to file a claim
     2  against the property, irrespective of the contract price between
     3  the owner and the contractor, of a residential building by a
     4  written instrument signed by him or by any conduct which
     5  operates equitably to estop him from filing a claim, provided
     6  the contractor has posted a bond guaranteeing payment for labor
     7  and materials provided by subcontractors.]
     8     (b)  Nonresidential Buildings.
     9     (1)  Except as provided in subsection [(a)(1)] (a), a waiver
    10  by a contractor of lien rights is against public policy,
    11  unlawful and void unless given in consideration for payment for
    12  the work, services, materials or equipment provided and only to
    13  the extent that such payment is actually received.
    14     (2)  Except as provided in subsection [(a)(2)] (a), a waiver
    15  by a subcontractor of lien rights is against public policy,
    16  unlawful and void, unless given in consideration for payment for
    17  the work, services, materials or equipment provided and only to
    18  the extent that such payment is actually received, or unless the
    19  contractor has posted a bond guaranteeing payment for labor and
    20  materials provided by subcontractors.
    21     Section 2.  This act shall take effect in 60 days.






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