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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY TURZAI, BOYD, BRADFORD, CLYMER, D. COSTA, CREIGHTON, CUTLER, ELLIS, EVERETT, FRANKEL, GABLER, GINGRICH, HORNAMAN, KORTZ, LONGIETTI, MAJOR, MILLARD, MILLER, MILNE, MOUL, MURT, O'NEILL, PASHINSKI, PICKETT, RAPP, ROHRER, ROSS, SAYLOR, SCAVELLO, SIPTROTH, SWANGER, TALLMAN, R. TAYLOR AND VULAKOVICH, DECEMBER 4, 2009 |
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| REFERRED TO COMMITTEE ON LABOR RELATIONS, DECEMBER 4, 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 notice |
4 | and filing requirements. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Sections 501 and 502 of the act of August 24, |
8 | 1963 (P.L.1175, No.497), known as the Mechanics' Lien Law of |
9 | 1963, amended June 29, 2006 (P.L.210, No.52), are amended to |
10 | read: |
11 | Section 501. Formal Notice by Subcontractor as Condition |
12 | Precedent.-- |
13 | (b.1) Time Period of Formal Notice. No claim by a |
14 | subcontractor, whether for erection or construction or for |
15 | alterations or repairs, shall be valid unless, at least thirty |
16 | (30) days before the same is filed, he shall have given to the |
17 | owner a formal written notice of his intention to file a claim, |
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1 | except that such notice shall not be required where the claim is |
2 | filed pursuant to a rule to do so as provided by section 506. |
3 | (c) Contents of Formal Notice. The formal notice shall |
4 | state: |
5 | (1) the name of the party claimant; |
6 | (2) the name of the person with whom he contracted; |
7 | (3) the amount claimed to be due; |
8 | (4) the general nature and character of the labor or |
9 | materials furnished; |
10 | (5) the date of completion of the work for which his claim |
11 | is made; |
12 | (6) a brief description sufficient to identify the property |
13 | claimed to be subject to the lien. |
14 | (d) Service of Notice. The notice provided by this section |
15 | may be served by first class, registered or certified mail on |
16 | the owner or his agent or by an adult in the same manner as a |
17 | writ of summons in assumpsit, or if service cannot be so made |
18 | then by posting upon a conspicuous public part of the |
19 | improvement. |
20 | (e) Commencement. |
21 | (1) Owner's Right to File. |
22 | (i) Within thirty (30) days following execution of a |
23 | contract with a contractor, the owner may file with the |
24 | prothonotary a notice of commencement that does all of the |
25 | following: |
26 | (A) Identifies with reasonable specificity the real property |
27 | upon which the improvement will be constructed. |
28 | (B) Sets forth the name of the contractor, the name of the |
29 | owner and the address at which the owner may be served with |
30 | claims and notices pursuant to this act. |
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1 | (ii) The prothonotary shall index the notice of commencement |
2 | on the construction lien docket in the name of the contractor as |
3 | plaintiff and in the name of the owner as defendant. |
4 | (2) Delivery of Notice. |
5 | (i) The owner must deliver a copy of the notice of |
6 | commencement to the contractor within seven (7) days after the |
7 | notice is filed. |
8 | (ii) Within seven (7) days following receipt of a written |
9 | request from a subcontractor, the contractor must deliver a copy |
10 | of the notice of commencement to the requesting party. |
11 | (f) Furnishing. |
12 | (1) Service of Notice. If a notice of commencement has been |
13 | filed under subsection (e), a subcontractor who performs work or |
14 | services or provides material or equipment in furtherance of an |
15 | improvement to real property and who wishes to preserve his lien |
16 | rights must serve a notice of furnishing upon the owner named in |
17 | the notice of commencement at the address listed in the notice |
18 | of commencement within the later of: |
19 | (i) thirty (30) days after the filing of the notice of |
20 | commencement; or |
21 | (ii) thirty (30) days after first performing work or |
22 | services or first providing materials or equipment in connection |
23 | with the improvement of the real property. |
24 | (2) Preservation of Rights. A notice of furnishing served |
25 | within the applicable period under paragraph (1) preserves the |
26 | subcontractor's lien rights for amounts owing for work and |
27 | services performed and materials and equipment furnished from |
28 | the date the work or services were first performed or materials |
29 | or equipment were first furnished through the date of service of |
30 | the notice of furnishing and thereafter. |
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1 | (3) Forfeiture of Rights. If a subcontractor fails to serve |
2 | a notice of furnishing within the applicable period under |
3 | paragraph (1), the subcontractor shall be deemed to have |
4 | forfeited its right to file a lien claim. |
5 | (4) Absence of Notice of Commencement. If the owner fails to |
6 | file a notice of commencement in accordance with subsection (e), |
7 | no subcontractor shall be required to serve a notice of |
8 | furnishing in order to preserve the subcontractor's lien rights. |
9 | Section 502. Filing and Notice of Filing of Claim.-- |
10 | (a) Perfection of Lien. To perfect a lien, every claimant |
11 | must: |
12 | (1) file a claim with the prothonotary as provided by this |
13 | act within [six (6)] four (4) months after the completion of his |
14 | work; and |
15 | (2) serve written notice of such filing upon the owner |
16 | within one (1) month after filing, giving the court, term and |
17 | number and date of filing of the claim. An affidavit of service |
18 | of notice, or the acceptance of service, shall be filed within |
19 | twenty (20) days after service setting forth the date and manner |
20 | of service. Failure to serve such notice or to file the |
21 | affidavit or acceptance of service within the times specified |
22 | shall be sufficient ground for striking off the claim. |
23 | (b) Venue; Property in More Than One County. Where the |
24 | improvement is located in more than one county, the claim may be |
25 | filed in any one or more of said counties, but shall be |
26 | effective only as to the part of the property in the county in |
27 | which it has been filed. |
28 | (c) Manner of Service. Service of the notice of filing of |
29 | claim shall be made by an adult in the same manner as a writ of |
30 | summons in assumpsit, or if service cannot be so made then by |
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1 | posting upon a conspicuous public part of the improvement. |
2 | Section 2. This act shall apply as follows: |
3 | (1) The amendment of section 501 of the act shall apply |
4 | to contracts entered into or renewed on or after the |
5 | effective date of this paragraph. |
6 | (2) The amendment of section 502(a)(2) of the act shall |
7 | apply to claims for work completed on or after the effective |
8 | date of this paragraph. |
9 | Section 3. This act shall take effect January 1, 2010. |
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