PRINTER'S NO. 648 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.638 Session of 2025 INTRODUCED BY HOWARD, WAXMAN, NEILSON, KHAN, GIRAL, HILL-EVANS, PIELLI, MADDEN AND SANCHEZ, FEBRUARY 20, 2025 REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 20, 2025 AN ACT Amending Title 12 (Commerce and Trade) of the Pennsylvania Consolidated Statutes, in commercial protection, prohibiting confession of judgment provisions. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Part IV of Title 12 of the Pennsylvania Consolidated Statutes is amended by adding a chapter to read: CHAPTER 59 MISCELLANEOUS PROVISIONS Sec. 5901. Confession of judgment provisions prohibited. ยง 5901. Confession of judgment provisions prohibited. (a) Prohibition.--A contract or agreement entered into between parties may not contain a provision that authorizes one party to confess judgment against another party to the contract or agreement. (b) Exceptions.--Subsection (a) does not apply to a contract or agreement entered into: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (1) prior to the effective date of this section; or (2) by the Commonwealth or a municipality pursuant to statute. (c) Effect.--A confession of judgment provision in violation of this section is void and unenforceable. Section 2. This act shall take effect in 60 days. 20250HB0638PN0648 - 2 - 1 2 3 4 5 6