1Amending the act of August 24, 1963 (P.L.1175, No.497), entitled
2"An act to codify, amend, revise and consolidate the laws
3relating to mechanics' liens," further providing for
4definitions; and providing for State Construction Notices 
5Directory and for notice of commencement and furnishing 
6requirements.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Section 201 of the act of August 24, 1963
10(P.L.1175, No.497), known as the Mechanics' Lien Law of 1963, is
11amended by adding paragraphs to read:

12Section 201. Definitions.--The following words, terms and
13phrases when used in this act shall have the meaning ascribed to
14them in this section, except where the context clearly indicates
15a different meaning:

16* * *

17(15) "Department" means the Department of Labor and
18Industry.

19(16) "Directory" means the State Construction Notices

1Directory in section 501.1.

2 Section 2. The act is amended by adding sections to read:

3Section 501.1. State Construction Notices Directory.--

4(a) Establishment of Directory. The department shall
5establish an Internet website to be known as the State
6Construction Notices Directory.

7(b) Third-party Administration. The department may contract
8with a third-party vendor to establish and administer the
9Internet website.

10(c) Purpose of Directory. The directory shall:

11(1) Serve primarily as a means for contractors and
12subcontractors to readily locate notices of commencement filed
13under section 501.2(a).

14(2) Act as a central Statewide repository for notices filed
15under section 501.2.

16(d) Operational Date. The department shall have the
17directory operational on July 1, 2015. The department may,
18however, establish a later effective date, if it provides
19sufficient reasons for the delay in the implementation of the
20program in a notice to the chairman and minority chairman of the
21Labor and Industry Committee of the Senate and the chairman and
22minority chairman of the Labor and Industry Committee of the
23House of Representatives.

24(e) Public Awareness. When appropriate, the department shall
25publish notice in the Pennsylvania Bulletin advising the public
26of plans for and the existence of the directory. The department
27shall take reasonable measures to inform the general public of
28the directory and its purpose.

29(f) Directory Fees. The department may assess filing fees to
30owners filing notices under section 501.2(a) to cover the costs

1of administration. If a contracted third-party vendor is
2administering the website, the assessed fees must be designated
3in the contract. The department shall:

4(1) Consider the fee levels in awarding a contract.

5(2) Ensure the fee levels are as favorable as possible to
6users.

7(g) Posting of Notices. The directory shall:

8(1) Make public notices filed under section 501.2 in a job
9site specific format.

10(2) Provide copies of the filings of notice of furnishing
11under section 501.2(b) to an owner who files a notice of
12commencement under section 501.2(a).

13(3) Provide hard copy printing of electronic receipts for an
14individual filing evidencing the date and time of the individual
15filing and the content of the individual filing.

16(4) List the notices of furnishing filed with a notice of
17commencement.

18(h) Index. The directory must be primarily indexed by
19county, and a notice of commencement filed with the directory
20shall be searchable by owner name, contractor name, property
21address or other identifying features that the department
22believes are necessary.

23Section 501.2. Notice of Commencement and Furnishing
24Requirements.--

25(a) Notice of Commencement.

26(1) Prior to commencing labor or work or furnishing
27materials for an improvement on real property that may give rise
28to a mechanics' lien under this act, the owner or agent of the
29owner may file a notice of commencement with the State
30Construction Notices Directory. The notice must include the

1following:

2(i) Name, address and e-mail address of the contractor.

3(ii) Name and location of the project being constructed.

4(iii) Legal description of the property upon which the
5improvements are being made.

6(iv) Name, address and e-mail address of the legal record
7owner of the property.

8(v) Name, address and e-mail address of the person other
9than the owner at whose direction the improvements are being
10made, if that person is not the true legal record owner of the
11property.

12(vi) If applicable, the name, address and e-mail address of
13a surety for the performance and payment bonds.

14(2) The owner shall conspicuously post a copy of the notice
15at the project site before physical work commences upon the
16property, and the owner shall take reasonable measures to insure
17that the copy of the notice of commencement remains posted at
18the project site for the duration of the project. For the
19purposes of this paragraph, the term "reasonable measures" means
20the reposting of notice by the owner within 48 hours after being
21notified in writing or e-mail that the notice is not posted.

22(b) Notice of Furnishing. A subcontractor that performs work
23or services or provides material in furtherance of an
24improvement to property shall, if a notice of commencement has
25been properly and timely filed under subsection (a), as a
26condition of retaining lien rights under section 301:

27(1) Have a positive duty to monitor the State Construction
28Notices Directory to identify appropriate notices of
29commencement.

30(2) Substantially comply with the following to file a notice

1of furnishing:

2(i) Subject to subparagraph (v)(A), the subcontractor shall
3file notice upon the owner within twenty (20) days after first
4performing work or services or first providing materials in
5connection with the improvement of the property.

6(ii) The notice must be served in one of the following
7manners:

8(A) Certified mail to the owner's address.

9(B) Personal delivery to the owner. Evidence of delivery
10must be an acknowledgment signed by the owner.

11(C) Filing of notice on the State Construction Notices
12Directory.

13(iii) The notice must contain, at a minimum, the following:

14(A) A general description of the labor, skill, materials,
15fixtures, machinery or tools furnished.

16(B) Name and address of the person supplying items in clause
17(A).

18(C) Name and address of the person that contracted for the
19items in clause (A).

20(D) A description sufficient to identify the property which
21is being improved.

22(iv) The notice must be substantially in the following form:

23Notice of Furnishing

24(For use in connection with improvements to property other
25than public improvements)

26TO:

27(Name of owner)

28

29(Address of owner)

30Please take notice that the undersigned is performing

1certain work or labor or furnishing certain materials

2to (Name and address of other contracting
3party) in connection with the improvement to the real property
4located at . The labor, work or materials
5were performed or furnished first, or will be furnished first on
6(date).

7

8(Name and Address of Lien Claimant

9By

10(Name and capacity of party signing for lien claimant)

11

12(Address of Signing Party)

13

14(Date)

15(v) Filing of a notice under this subsection preserves the
16lien rights of a subcontractor in compliance with this act as
17follows:

18(A) For amounts owing for work and services performed and
19materials furnished from the date the work or services were
20first performed or materials were first furnished through the
21date of service of the notice of furnishing and thereafter.

22(B) A notice delivered outside the time frame under
23subparagraph (i) preserves the right to file a lien which is
24only enforceable for the services or materials furnished within
25the period of twenty (20) days before the date on which notice
26is given and thereafter.

27(vi) If a subcontractor does not substantially comply with
28this subsection, the subcontractor forfeits the right to file a
29lien claim.

30(c) Construction. Subsection (b) may not be interpreted to

1affect the ability of a subcontractor or contractor to waive his
2lien rights under sections 401 and 402.

3(d) Public Policy.

4(1) It is against public policy and unlawful for a
5contractor or subcontractor to request or require that a
6subcontractor not file a notice of furnishing as required to
7maintain his lien rights, in order that the subcontractor may
8enter into or maintain a contract for work or furnishing of
9materials on an improvement.

10(2) A subcontractor has the right to file a lien for the
11work and services performed and the materials furnished under
12this act, irrespective of compliance with section 501.2(b), if
13he proves that the failure to comply with section 501.2(b) was
14directly the result of a contractor or subcontractor violating
15paragraph (1).

16Section 3. The addition of section 501.2 of the act shall
17take effect July 1, 2015, or on the date designated by the
18Department of Labor and Industry.

19Section 4. This act shall take effect in 60 days.