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Two Important Industry Bills Advance in the Pennsylvania State Senate

Wednesday, January 31, 2018   (0 Comments)
Posted by: Catie Scott
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On Tuesday, January 30, 2018, two pieces of legislation important to our industry advanced in the Pennsylvania State Senate.

First, Prompt Pay legislation (HB 566) passed the Senate Labor & Industry Committee with a bipartisan majority of 9-3.  The three PA Senators who voted against the bill were Sens. Wagner, Folmer, and DiSanto.  In 2017, it was voted out of the House Commerce Committee by unanimous consent and received a huge majority vote of 168-26 when it was voted on by the full House.  

The legislative language, drafted by Reps. James R. Santora (R-Delaware) and Michael Driscoll (D-Philadelphia), permits contractors to suspend their work if they are not paid per contract terms.  Under the bill, contractors and subcontractors would be able to stop working on a project if payment is not received per contract guidelines, at least 60 days have passed since the end of the billing period and seven calendars days’ notice was given of their intent to suspend work.  Currently, suspension of work is not included in the payment dispute remedies available for contractors and subcontractors.  Eight states in the US already have stop work provisions to protect contractors including Oklahoma, Kansas, Arizona Texas, Illinois, New Jersey, New York, and California. 

The bill now goes to the full Senate for consideration.  To read the full text of HB 566 click here , and to view past Prompt Pay updates, click here.

Additionally, PACE legislation (SB 234) passed the full senate with a bipartisan majority of 42-8.  It had previously passed the Senate Community, Economic, and Recreational Development Committee with unanimous consent.

PACE is a financing mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy, and water conservation upgrades to commercial or industrial properties.  The proposal is similar to legislation that has already been established in 33 other states.  

The bill now moves to the House side.  To learn more about the PACE bill, click here

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