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Full Text of HB0830  95th General Assembly

HB0830ham001 95TH GENERAL ASSEMBLY

Judiciary I - Civil Law Committee

Filed: 3/21/2007

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 830

2     AMENDMENT NO. ______. Amend House Bill 830 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Mechanics Lien Act is amended by changing
5 Section 23 as follows:
 
6     (770 ILCS 60/23)  (from Ch. 82, par. 23)
7     Sec. 23. Liens against public funds.
8     (a) For the purpose of this Section "contractor" includes
9 any sub-contractor; "State" includes any department, board or
10 commission thereof, or other person financing and constructing
11 any public improvements for the benefit of the State or any
12 department, board or commission thereof; and "director"
13 includes any chairman or president of any State department,
14 board or commission, or the president or chief executive
15 officer or such other person financing and constructing a
16 public improvement for the benefit of the State.

 

 

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1     (a-5) For the purpose of this Section, "unit of local
2 government" includes any unit of local government as defined in
3 the Illinois Constitution of 1970, and any entity, other than
4 the State, organized for the purpose of conducting public
5 business pursuant to the Intergovernmental Cooperation Act or
6 the General Not For Profit Corporation Act of 1986, or where a
7 not-for-profit corporation is owned, operated, or controlled
8 by one or more units of local government for the purpose of
9 conducting public business.
10     (b) Any person who shall furnish labor, services, material,
11 apparatus, fixtures, apparatus or machinery, forms or form work
12 labor to any contractor having a contract for public
13 improvement for any county, township, school district, city,
14 municipality, or municipal corporation, or any other unit of
15 local government in this State, shall have a lien for the value
16 thereof on the money, bonds, or warrants due or to become due
17 the contractor having a contract with such county, township,
18 school district, municipality, or municipal corporation, or
19 any other unit of local government in this State under such
20 contract. The lien shall attach only to that portion of the
21 money, bonds, or warrants against which no voucher or other
22 evidence of indebtedness has been issued and delivered to the
23 contractor by or on behalf of the county, township, school
24 district, city, municipality, municipal corporation, or any
25 other unit of local government as the case may be at the time
26 of the notice.

 

 

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1         (1) No person shall have a lien as provided in this
2     subsection (b) unless Provided, such person shall, before
3     payment or delivery thereof is made to such contractor,
4     notify the clerk or secretary, as the case may be, of the
5     county, township, school district, city, municipality, or
6     municipal corporation, or any other unit of local
7     government his claim by a written notice of the claim for
8     lien containing a sworn statement identifying the
9     claimant's contract, describing the work done by the
10     claimant, and stating the total amount due and unpaid as of
11     the date of the notice for the work and furnish a copy of
12     said notice at once to said contractor. The person claiming
13     such lien may cause notification and written notice thereof
14     to be given either by sending the written notice (by
15     registered or certified mail, return receipt requested,
16     with delivery limited to addressee only) to, or by
17     delivering the written notice to the clerk or secretary, as
18     the case may be, of the county, township, school district,
19     city, municipality, or municipal corporation, or any other
20     unit of local government; and the copy of the written
21     notice which the person claiming the lien is to furnish to
22     the contractor may be sent to, or delivered to such
23     contractor in like manner. The notice shall be effective
24     when received or refused by the clerk or secretary, as the
25     case may be, And, provided further, that such lien shall
26     attach only to that portion of such money, bonds, or

 

 

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1     warrants against which no voucher or other evidence of
2     indebtedness has been issued and delivered to the
3     contractor by or on behalf of the county, township, school
4     district, city, municipality, or municipal corporation, or
5     any other unit of local government as the case may be at
6     the time of such notice.
7         (2) Provided further, that where such person has not so
8     notified the clerk or secretary, as the case may be, of the
9     county, township, school district, city, municipality, or
10     municipal corporation, or any other unit of local
11     government of his claim for a lien, upon written demand of
12     the contractor with service by certified mail (return
13     receipt requested) and with a copy filed with the clerk or
14     secretary, as the case may be, that person shall, within 30
15     days, notify the clerk or secretary, as the case may be, of
16     the county, township, school district, city, municipality,
17     or municipal corporation, or any other unit of local
18     government of his claim for a lien by either sending or
19     delivering written notice in like manner as above provided
20     for causing notification and written notice of a claim for
21     lien to be given to such clerk or secretary, as the case
22     may be, or the lien shall be forfeited.
23         (3) No official shall withhold from the contractor
24     money, bonds, warrants, or funds on the basis of a lien
25     forfeited as provided herein.
26         (4) The person so claiming a lien shall, within 90 days

 

 

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1     after serving giving such notice, commence proceedings by
2     complaint for an accounting, making the contractor having a
3     contract with the county, township, school district, city,
4     municipality, or municipal corporation, or any other unit
5     of local government and the contractor to whom such labor,
6     services, material, apparatus, fixtures, apparatus or
7     machinery, forms or form work labor was furnished, parties
8     defendant, and shall within 10 days after filing the
9     complaint the same period notify the clerk or secretary, as
10     the case may be, of the county, township, school district,
11     city, municipality, or municipal corporation, or any other
12     unit of local government of the commencement of such suit
13     by delivering to him or them a copy of the complaint filed.
14         (5) Failure to commence proceedings by complaint for
15     accounting within 90 days after serving giving notice of
16     lien pursuant to this subsection shall terminate the lien
17     and no subsequent notice of lien may be given for the same
18     claim nor may that claim be asserted in any proceedings
19     pursuant to this Act, provided, however, that failure to
20     file the complaint after notice of the claim for lien shall
21     not preclude a subsequent notice or action for an amount or
22     amounts becoming due to the lien claimant on a date after
23     the prior notice or notices.
24         (6) It shall be the duty of any such clerk or
25     secretary, as the case may be, upon receipt of the first
26     notice herein provided for to cause to be withheld a

 

 

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1     sufficient amount to pay such claim for the period limited
2     for the filing of suit plus the period for notice to the
3     clerk or secretary of the suit, unless otherwise notified
4     by the person claiming the lien. Upon the expiration of
5     this period the money, bonds or warrants so withheld shall
6     be released for payment to the contractor unless the person
7     claiming the lien shall have instituted proceedings and
8     delivered to the clerk or secretary, as the case may be, of
9     the county, township, school district, city, municipality,
10     or municipal corporation, or any other unit of local
11     government a copy of the complaint as herein provided, in
12     which case, the amount claimed shall be withheld until the
13     final adjudication of the suit is had. Provided, that the
14     clerk or secretary, as the case may be, to whom a copy of
15     the complaint is delivered as herein provided may pay over
16     to the clerk of the court in which such suit is pending a
17     sum sufficient to pay the amount claimed to abide the
18     result of such suit and be distributed by the clerk
19     according to the judgment rendered or other court order.
20     Any payment so made to such claimant or to the clerk of the
21     court shall be a credit on the contract price to be paid to
22     such contractor.
23     (c) Any person who shall furnish labor, services, material,
24 apparatus, fixtures, apparatus or machinery, forms or form work
25 labor to any contractor having a contract for public
26 improvement for the State, may have a lien for the value

 

 

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1 thereof on the money, bonds or warrants due or about to become
2 due the contractor having a contract with the State under the
3 contract. The lien shall attach to only that portion of the
4 money, bonds or warrants against which no voucher has been
5 issued and delivered by the State.
6             (1) No person or party shall have a lien as
7         provided in this subsection (c) unless such person
8         shall, before payment or delivery thereof is made to
9         the contractor, notify , by giving to the Director or
10         other official, whose duty it is to let such contract,
11         written notice of a his claim for lien containing a
12         sworn statement identifying the claimant's contract,
13         describing the work done by the claimant and stating
14         the total amount due and unpaid as of the date of the
15         notice for the work of the claim showing with
16         particularity the several items and the amount claimed
17         to be due on each. The claimant shall furnish a copy of
18         said notice at once to the contractor. The person
19         claiming such lien may cause such written notice with
20         sworn statement of the claim to be given either by
21         sending such notice (by registered or certified mail,
22         return receipt requested, with delivery limited to
23         addressee only) to, or by delivering such notice to the
24         Director or other official of the State whose duty it
25         is to let such contract; and the copy of such notice
26         which the person claiming the lien is to furnish to the

 

 

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1         contractor may be sent to, or delivered to such
2         contractor in like manner. The notice shall be
3         effective when received or refused by the Director or
4         other official whose duty it is to let the contract
5         However, the lien shall attach to only that portion of
6         the money, bonds or warrants against which no voucher
7         has been issued and delivered by the State.
8         (2) Provided, that where such person has not so
9     notified the Director or other official of the State, whose
10     duty it is to let such contract, of his claim for a lien,
11     upon written demand of the contractor, with service by
12     certified mail (return receipt requested) and with a copy
13     filed with such Director or other official of the State,
14     that person shall, within 30 days, notify the Director or
15     other official of the State, whose duty it is to let such
16     contract, of his claim for a lien by either sending or
17     delivering written notice in like manner as above provided
18     for giving written notice with sworn statement of claim to
19     such Director or official, or the lien shall be forfeited.
20         (3) No public official shall withhold from the
21     contractor money, bonds, warrants or funds on the basis of
22     a lien forfeited as provided herein.
23         (4) The person so claiming a lien shall, within 90 days
24     after serving giving such notice, commence proceedings by
25     complaint for an accounting, making the contractor having a
26     contract with the State and the contractor to whom such

 

 

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1     labor, services, material, apparatus, fixtures, apparatus
2     or machinery, forms or form work labor was furnished,
3     parties defendant, and shall, within 10 days after filing
4     the suit the same period notify the Director of the
5     commencement of such suit by delivering to him a copy of
6     the complaint filed; provided, if money appropriated by the
7     General Assembly is to be used in connection with the
8     construction of such public improvement, that suit shall be
9     commenced and a copy of the complaint delivered to the
10     Director not less than 15 days before the date when the
11     appropriation from which such money is to be paid, will
12     lapse.
13         (5) Failure to commence proceedings by complaint for
14     accounting within 90 days after serving giving notice of
15     lien pursuant to this subsection shall terminate the lien
16     and no subsequent notice of lien may be given for the same
17     claim nor may that claim be asserted in any proceedings
18     pursuant to this Act, provided, however, that failure to
19     file suit after notice of a claim for lien shall not
20     preclude a subsequent notice or action for an amount or
21     amounts becoming due to the lien claimant on a date after
22     the prior notice or notices.
23         (6) It shall be the duty of the Director, upon receipt
24     of the written notice with sworn statement as herein
25     provided, to withhold payment of a sum sufficient to pay
26     the amount of such claim, for the period limited for the

 

 

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1     filing of suit plus the period for the notice to the
2     Director, unless otherwise notified by the person claiming
3     the lien. Upon the expiration of this period the money,
4     bonds, or warrants so withheld shall be released for
5     payment to the contractor unless the person claiming the
6     lien shall have instituted proceedings and delivered to the
7     Director a copy of the complaint as herein provided, in
8     which case, the amount claimed shall be withheld until the
9     final adjudication of the suit is had. Provided, the
10     Director or other official may pay over to the clerk of the
11     court in which such suit is pending, a sum sufficient to
12     pay the amount claimed to abide the result of such suit and
13     be distributed by the clerk according to the judgment
14     rendered or other court order. Any payment so made to such
15     claimant or to the clerk of the court shall be a credit on
16     the contract price to be paid to such contractor.
17     (d) Any officer of the State, county, township, school
18 district, city, municipality, or municipal corporation, or any
19 other unit of local government violating the duty hereby
20 imposed upon him shall be liable on his official bond to the
21 claimant giving notice as provided in this Section for the
22 damages resulting from such violation, which may be recovered
23 in a civil action in the circuit court. There shall be no
24 preference between the persons giving such notice, but all
25 shall be paid pro rata in proportion to the amount due under
26 their respective contracts.

 

 

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1     (e) In the event a suit to enforce a claim based on a
2 notice of claim for lien is commenced in accordance with this
3 Section, and the suit is subsequently dismissed, the lien for
4 the work claimed under the notice of claim for lien shall
5 terminate 30 days after the effective date of the order
6 dismissing the suit unless the lien claimant shall file a
7 motion to reinstate the suit, a motion to reconsider, or a
8 notice of appeal within the 30 day period. Notwithstanding the
9 foregoing, nothing contained in this Section shall prevent a
10 public body from paying a lien claim in less than 30 days after
11 dismissal.
12     (f) Unless the contract with the State, county, township,
13 school district, city, municipality, municipal corporation, or
14 any other unit of local government otherwise provides, no lien
15 for material shall be defeated because of lack of proof that
16 the material after the delivery thereof, actually entered into
17 the construction of the building or improvement, even if it be
18 shown that the material was not actually used in the
19 construction of the building or improvement so long as it is
20 shown that the material was delivered either (i) to the owner
21 or its agent for that building or improvement, to be used in
22 that building or improvement or (ii) pursuant to the contract,
23 at the place where the building or improvement was being
24 constructed or some other designated place, for the purpose of
25 being used in construction or for the purpose of being employed
26 in the process of construction as a means for assisting in the

 

 

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1 erection of the building or improvement in what is commonly
2 termed forms or form work where concrete, cement, or like
3 material is used, in whole or in part.
4 (Source: P.A. 87-329.)
 
5     Section 99. Effective date. This Act takes effect upon
6 becoming law.".