THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

REFERRED TO COMMITTEE ON LABOR RELATIONS, DECEMBER 4, 2009  

AN ACT

Amending the act of August 24, 1963 (P.L.1175, No.497), entitled

"An act to codify, amend, revise and consolidate the laws

relating to mechanics' liens," further providing for notice

and filing requirements.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 501 and 502 of the act of August 24,

1963 (P.L.1175, No.497), known as the Mechanics' Lien Law of

1963, amended June 29, 2006 (P.L.210, No.52), are amended to

read:

Section 501. Formal Notice by Subcontractor as Condition

Precedent.--

(b.1)  Time Period of Formal Notice. No claim by a

subcontractor, whether for erection or construction or for

alterations or repairs, shall be valid unless, at least thirty

(30) days before the same is filed, he shall have given to the

owner a formal written notice of his intention to file a claim,

except that such notice shall not be required where the claim is

filed pursuant to a rule to do so as provided by section 506.

(c)  Contents of Formal Notice. The formal notice shall

state:

(1)  the name of the party claimant;

(2)  the name of the person with whom he contracted;

(3)  the amount claimed to be due;

(4)  the general nature and character of the labor or

materials furnished;

(5)  the date of completion of the work for which his claim

is made;

(6)  a brief description sufficient to identify the property

claimed to be subject to the lien.

(d)  Service of Notice. The notice provided by this section

may be served by first class, registered or certified mail on

the owner or his agent or by an adult in the same manner as a

writ of summons in assumpsit, or if service cannot be so made

then by posting upon a conspicuous public part of the

improvement.

(e)  Commencement.

(1)  Owner's Right to File.

(i)  Within thirty (30) days following execution of a

contract with a contractor, the owner may file with the

prothonotary a notice of commencement that does all of the

following:

(A)  Identifies with reasonable specificity the real property

upon which the improvement will be constructed.

(B)  Sets forth the name of the contractor, the name of the

owner and the address at which the owner may be served with

claims and notices pursuant to this act.

(ii)  The prothonotary shall index the notice of commencement

on the construction lien docket in the name of the contractor as

plaintiff and in the name of the owner as defendant.

(2)  Delivery of Notice.

(i)  The owner must deliver a copy of the notice of

commencement to the contractor within seven (7) days after the

notice is filed.

(ii)  Within seven (7) days following receipt of a written

request from a subcontractor, the contractor must deliver a copy

of the notice of commencement to the requesting party.

(f)  Furnishing.

(1)  Service of Notice. If a notice of commencement has been

filed under subsection (e), a subcontractor who performs work or

services or provides material or equipment in furtherance of an

improvement to real property and who wishes to preserve his lien

rights must serve a notice of furnishing upon the owner named in

the notice of commencement at the address listed in the notice

of commencement within the later of:

(i)  thirty (30) days after the filing of the notice of

commencement; or

(ii)  thirty (30) days after first performing work or

services or first providing materials or equipment in connection

with the improvement of the real property.

(2)  Preservation of Rights. A notice of furnishing served

within the applicable period under paragraph (1) preserves the

subcontractor's lien rights for amounts owing for work and

services performed and materials and equipment furnished from

the date the work or services were first performed or materials

or equipment were first furnished through the date of service of

the notice of furnishing and thereafter.

(3)  Forfeiture of Rights. If a subcontractor fails to serve

a notice of furnishing within the applicable period under

paragraph (1), the subcontractor shall be deemed to have

forfeited its right to file a lien claim.

(4)  Absence of Notice of Commencement. If the owner fails to

file a notice of commencement in accordance with subsection (e),

no subcontractor shall be required to serve a notice of

furnishing in order to preserve the subcontractor's lien rights.

Section 502.  Filing and Notice of Filing of Claim.--

(a)  Perfection of Lien. To perfect a lien, every claimant

must:

(1)  file a claim with the prothonotary as provided by this

act within [six (6)] four (4) months after the completion of his

work; and

(2)  serve written notice of such filing upon the owner

within one (1) month after filing, giving the court, term and

number and date of filing of the claim. An affidavit of service

of notice, or the acceptance of service, shall be filed within

twenty (20) days after service setting forth the date and manner

of service. Failure to serve such notice or to file the

affidavit or acceptance of service within the times specified

shall be sufficient ground for striking off the claim.

(b)  Venue; Property in More Than One County. Where the

improvement is located in more than one county, the claim may be

filed in any one or more of said counties, but shall be

effective only as to the part of the property in the county in

which it has been filed.

(c)  Manner of Service. Service of the notice of filing of

claim shall be made by an adult in the same manner as a writ of

summons in assumpsit, or if service cannot be so made then by

posting upon a conspicuous public part of the improvement.

Section 2.  This act shall apply as follows:

(1)  The amendment of section 501 of the act shall apply

to contracts entered into or renewed on or after the

effective date of this paragraph.

(2)  The amendment of section 502(a)(2) of the act shall

apply to claims for work completed on or after the effective

date of this paragraph.

Section 3.  This act shall take effect January 1, 2010.