PRINTER'S NO. 2085
No. 1699 Session of 1999
INTRODUCED BY BELFANTI, HARHAI, WALKO, RAMOS, BELARDI,
YOUNGBLOOD, LAUGHLIN, HORSEY, McCALL, FREEMAN, TRELLO, DALEY,
GRUCELA, SURRA, SHANER, DeWEESE, MELIO, COSTA, PESCI,
LEVDANSKY, RUFFING AND JAMES, JUNE 16, 1999
REFERRED TO COMMITTEE ON LABOR RELATIONS, JUNE 16, 1999
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
1 concession in anticipation of future benefits shall have a labor
2 concession lien on behalf of its members covered by the
3 agreement upon the property of the employer at the employment
4 site for the value of the concession. The parties shall by
5 agreement determine the nature and value of anticipated future
6 benefits and the value of the concession.
7 Section 4. Attachment, notice and perfection.
8 A labor concession lien shall be perfected when the union
9 files a notice of lien in the office of the recorder of deeds or
10 prothonotary or other office that performs similar duties for
11 the county in which the employment site is located. A notice of
12 lien shall include all of the following information:
13 (1) The name of the employer.
14 (2) The name of the union.
15 (3) A legal description of the employment site that is
16 subject to the lien and a description of all personal
17 property that is subject to the lien.
18 (4) The conditions under which the lien may be released.
19 Section 5. Continuation.
20 A labor concession lien shall continue until the union
21 releases it or the conditions under which the lien may be
22 released are satisfied or by order of court.
23 Section 6. Priority.
24 A labor concession lien shall have priority over all liens
25 that are filed or recorded after a labor concession lien is
26 perfected except for any of the following:
27 (1) Tax and special assessment liens.
28 (2) A purchase money security interest in property
29 obtained by the employer after the concession lien is
30 perfected and that is used as collateral to secure the
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1 purchase price.
2 (3) A lien filed or recorded for the nonpayment of wages
3 owed to employees.
4 (4) A debt incurred to satisfy the conditions under
5 which the lien may be released.
6 Section 7. Discharge or release.
7 An employer may have a labor concession lien discharged or
8 released only by filing a motion to show cause why the lien
9 should be discharged or released and after a hearing on the
10 merits by the court that results in a decision in favor of the
11 employer.
12 Section 8. Lien proceeds.
13 A union shall distribute all proceeds obtained through
14 enforcement of a labor concession lien to its members covered by
15 the agreement that acknowledges the lien. The union may
16 determine which members are eligible to receive the proceeds and
17 the method for distributing the proceeds.
18 Section 9. Applicability.
19 This act shall apply to any collective bargaining agreement
20 or other contract between an employer and a union entered into,
21 renewed, extended or modified on the effective date of this
22 section.
23 Section 10. Effective date.
24 This act shall take effect immediately.
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