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                                                      PRINTER'S NO. 3767

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2603 Session of 2002


        INTRODUCED BY STETLER, BELFANTI, CAPPELLI, CLARK, COLAFELLA,
           CORRIGAN, COSTA, DALLY, FAIRCHILD, FRANKEL, GORDNER, HALUSKA,
           HENNESSEY, HORSEY, JAMES, KIRKLAND, McCALL, MICHLOVIC, MUNDY,
           NICKOL, PALLONE, RUBLEY, SAINATO, SAYLOR, SCHRODER, SHANER,
           STABACK, THOMAS, TIGUE, TRELLO, WALKO, J. WILLIAMS, G. WRIGHT
           AND YOUNGBLOOD, APRIL 29, 2002

        REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
           APRIL 29, 2002

                                     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 waiver
     4     by contractor.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 402 of the act of August 24, 1963
     8  (P.L.1175, No.497), known as the Mechanics' Lien Law of 1963, is
     9  amended to read:
    10     Section 402.  Waiver by Contractor; Effect on
    11  Subcontractor.--
    12     (a)  General Rule.  A written contract between the owner and
    13  contractor, or a separate written instrument signed by the
    14  contractor, which provides that no claim shall be filed by
    15  anyone, shall be binding; but the only admissible evidence
    16  thereof, as against a subcontractor, shall be proof of actual


     1  notice thereof to him before any labor or materials were
     2  furnished by him; or proof that such contract or separate
     3  written instrument was filed in the office of the prothonotary
     4  prior to the commencement of the work upon the ground or within
     5  ten (10) days after the execution of the principal contract or
     6  not less than ten (10) days prior to the contract with the
     7  claimant subcontractor, indexed in the name of the contractor as
     8  defendant and the owner as plaintiff and also in the name of the
     9  contractor as plaintiff and the owner as defendant. The only
    10  admissible evidence that such a provision has, notwithstanding
    11  its filing, been waived in favor of any subcontractor, shall be
    12  a written agreement to that effect signed by all those who,
    13  under the contract, have an adverse interest to the
    14  subcontractor's allegation.
    15     (b)  Electronic Indexing.  Notwithstanding the indexing
    16  requirements of subsection (a) in offices of the prothonotary in
    17  which such a written contract between the owner and contractor
    18  or separate written instrument is indexed electronically by
    19  means of a computer system or similar system such that the names
    20  of the contractor and owner are electronically retrievable
    21  regardless of whether the parties are designated as plaintiff or
    22  defendant, the contract or separate written instrument filed
    23  with the office of the prothonotary under subsection (a) may be
    24  indexed in the name of the contractor as defendant and the owner
    25  as plaintiff or in the name of the contractor as plaintiff and
    26  the owner as defendant.
    27     Section 2.  This act shall take effect in 60 days.


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