Committee backs bill to let rented construction equipment qualify for mechanics' liens

The House Judiciary Committee voted 25 to 1 to report House Bill 1319, which would clarify that rented construction equipment reasonably necessary for a project may be treated as "materials" under the Mechanics' Lien Law of 1963.

Representative Ryan Harkins, prime sponsor of the bill, told the committee the proposal grew out of a Pennsylvania Superior Court decision involving an Erie equipment rental company that the court found could not secure a mechanic's lien because the rented machinery was not "literally incorporated" into the structure. "Our goal with this legislation is to try and help to protect small businesses across Pennsylvania and the ones that rent out construction equipment," Harkins said.

The bill would add clarity to the law's definition of materials in section 201 of the Mechanics' Lien Law of 1963, so that rented equipment "reasonably necessary for the construction or incorporated into the improvement" is explicitly included. Counsel told the committee the bill takes effect in 90 days and that there were no amendments.

Representative Bahner opposed the measure, citing the Superior Court ruling and the statutory requirement that materials be incorporated into a structure. Bahner argued the ruling was "well reasoned" and warned the change could allow claims where equipment was merely present on a site, noting as an example that an on-site pickup truck could be stretched into a lien claim under broader language.

The committee recorded a 25-1 vote in favor; the clerk announced the bill will be reported to the floor as committed.