THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY WARD, BAKER, EARLL, WAUGH, SOLOBAY, FOLMER, ALLOWAY, McILHINNEY, EICHELBERGER, FONTANA, FERLO, SMUCKER, MENSCH AND RAFFERTY, MAY 31, 2012

REFERRED TO LABOR AND INDUSTRY, MAY 31, 2012  

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 right to

lien and amount and for discharge of lien on payment into

court or entry of security.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301 of the act of August 24, 1963

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

amended to read:

Section 301.  Right to Lien; Amount; Subcontractor.--[Every] 

(a)  General rule. Except as provided under subsection (b),

every improvement and the estate or title of the owner in the

property shall be subject to a lien, to be perfected as herein

provided, for the payment of all debts due by the owner to the

contractor or by the contractor to any of his subcontractors for

labor or materials furnished in the erection or construction, or

the alteration or repair of the improvement, provided that the

amount of the claim, other than amounts determined by

apportionment under section 306(b) of this act, shall exceed

five hundred dollars ($500).

(b)  Subcontractor. A subcontractor does not have the right

to a lien with respect to an improvement to a residential

property if:

(1)  the owner or tenant paid the full contract price to the

contractor; and

(2)  the property is or is intended to be used as the

residence of the owner or tenant.

Section 2.  Section 510 heading of the act is amended and the

section is amended by adding a subsection to read:

Section 510.  Discharge of Lien [on Payment into Court or

Entry of Security].--

* * *

(f)  Residential property. A claim filed under this act with

respect to an improvement to a residential property subject to

section 301(b) shall, upon petition or motion to the court by

the owner or a party in interest, be discharged as a lien

against the property when:

(1)  the owner or tenant has paid the full contract price to

the contractor; or

(2)  the lien shall be reduced to the amount of the unpaid

contract price owed by the owner or tenant to the contractor.

Section 3.  This act shall take effect in 60 days.