Prompt Pay Legislation (HB 566) Passes PA Senate; Moves to Governor's Desk
On Tuesday, May 22, the Pennsylvania State Senate voted to pass Prompt Pay Legislation (HB 566) by an overwhelming, bipartisan majority of 43-5. The bill was amended while in the Senate, and therefore was sent back to the House for concurrence. On Wednesday, May 23, after a failed attempt by Rep. Mike Tobash to table the vote, the full PA House of Representatives voted to concur on HB 566 with a vote of 175-16.
This 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.
The overwhelming majority votes and bipartisan support for this bill shows the immense importance of this issue. The passing of HB 566 is a huge win for contractors across the state of Pennsylvanian who aren't being compensated for their work and materials in a timely manner.
M&SCA of Eastern PA has been working in partnership with our fellow MCA Chapters around the state of Pennsylvania as well as Pennsylvania chapters of NECA and IFCA to move this legislation in order to give subcontractors the ability to collect payment in accordance with their contracts and reduce reliance on the Mechanic’s Lien Law. We would like to thank the co-sponsors of this bill, Representatives Santora and Driscoll, for their tireless efforts on this important issue.
HB 566 is now headed to Governor Wolf’s desk for signature and enactment.