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Public Act 095-0274


 

Public Act 0274 95TH GENERAL ASSEMBLY



 


 
Public Act 095-0274
 
SB0330 Enrolled LRB095 09738 AJO 29944 b

    AN ACT concerning liens.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Mechanics Lien Act is amended by changing
Section 23 and adding Section 1.2 as follows:
 
    (770 ILCS 60/1.2 new)
    Sec. 1.2. Rental equipment liens. In addition to persons
who would otherwise have a lien under this Act, any person,
whether contractor or subcontractor, who leases construction
equipment to another for use in the process of constructing a
specific improvement to real estate, has a lien for the rental
value of the construction equipment to the same extent and in
the same manner as provided in this Act for other liens. This
Section shall apply only if, and to the extent that, the
equipment is used on or about the site of the improvement. This
Section does not apply if the improvement is either a single
family residence or a multi-family residence of fewer than 12
units in a single building.
 
    (770 ILCS 60/23)  (from Ch. 82, par. 23)
    Sec. 23. Liens against public funds.
    (a) For the purpose of this Section "contractor" includes
any sub-contractor; "State" includes any department, board or
commission thereof, or other person financing and constructing
any public improvements for the benefit of the State or any
department, board or commission thereof; and "director"
includes any chairman or president of any State department,
board or commission, or the president or chief executive
officer or such other person financing and constructing a
public improvement for the benefit of the State.
    (a-5) For the purpose of this Section, "unit of local
government" includes any unit of local government as defined in
the Illinois Constitution of 1970, and any entity, other than
the State, organized for the purpose of conducting public
business pursuant to the Intergovernmental Cooperation Act or
the General Not For Profit Corporation Act of 1986, or where a
not-for-profit corporation is owned, operated, or controlled
by one or more units of local government for the purpose of
conducting public business.
    (b) Any person who shall furnish labor, services, material,
apparatus, fixtures, apparatus or machinery, forms or form work
labor to any contractor having a contract for public
improvement for any county, township, school district, city,
municipality, or municipal corporation, or any other unit of
local government in this State, shall have a lien for the value
thereof on the money, bonds, or warrants due or to become due
the contractor having a contract with such county, township,
school district, municipality, or municipal corporation, or
any other unit of local government in this State under such
contract. The lien shall attach only to that portion of the
money, bonds, or warrants against which no voucher or other
evidence of indebtedness has been issued and delivered to the
contractor by or on behalf of the county, township, school
district, city, municipality, municipal corporation, or any
other unit of local government as the case may be at the time
of the notice.
        (1) No person shall have a lien as provided in this
    subsection (b) unless Provided, such person shall, before
    payment or delivery thereof is made to such contractor,
    notify the clerk or secretary, as the case may be, of the
    county, township, school district, city, municipality, or
    municipal corporation, or any other unit of local
    government his claim by a written notice of the claim for
    lien containing a sworn statement identifying the
    claimant's contract, describing the work done by the
    claimant, and stating the total amount due and unpaid as of
    the date of the notice for the work and furnish a copy of
    said notice at once to said contractor. The person claiming
    such lien may cause notification and written notice thereof
    to be given either by sending the written notice (by
    registered or certified mail, return receipt requested,
    with delivery limited to addressee only) to, or by
    delivering the written notice to the clerk or secretary, as
    the case may be, of the county, township, school district,
    city, municipality, or municipal corporation, or any other
    unit of local government; and the copy of the written
    notice which the person claiming the lien is to furnish to
    the contractor may be sent to, or delivered to such
    contractor in like manner. The notice shall be effective
    when received or refused by the clerk or secretary, as the
    case may be, And, provided further, that such lien shall
    attach only to that portion of such money, bonds, or
    warrants against which no voucher or other evidence of
    indebtedness has been issued and delivered to the
    contractor by or on behalf of the county, township, school
    district, city, municipality, or municipal corporation, or
    any other unit of local government as the case may be at
    the time of such notice.
        (2) Provided further, that where such person has not so
    notified the clerk or secretary, as the case may be, of the
    county, township, school district, city, municipality, or
    municipal corporation, or any other unit of local
    government of his claim for a lien, upon written demand of
    the contractor with service by certified mail (return
    receipt requested) and with a copy filed with the clerk or
    secretary, as the case may be, that person shall, within 30
    days, notify the clerk or secretary, as the case may be, of
    the county, township, school district, city, municipality,
    or municipal corporation, or any other unit of local
    government of his claim for a lien by either sending or
    delivering written notice in like manner as above provided
    for causing notification and written notice of a claim for
    lien to be given to such clerk or secretary, as the case
    may be, or the lien shall be forfeited.
        (3) No official shall withhold from the contractor
    money, bonds, warrants, or funds on the basis of a lien
    forfeited as provided herein.
        (4) The person so claiming a lien shall, within 90 days
    after serving giving such notice, commence proceedings by
    complaint for an accounting, making the contractor having a
    contract with the county, township, school district, city,
    municipality, or municipal corporation, or any other unit
    of local government and the contractor to whom such labor,
    services, material, apparatus, fixtures, apparatus or
    machinery, forms or form work labor was furnished, parties
    defendant, and shall within 10 days after filing the
    complaint the same period notify the clerk or secretary, as
    the case may be, of the county, township, school district,
    city, municipality, or municipal corporation, or any other
    unit of local government of the commencement of such suit
    by delivering to him or them a copy of the complaint filed.
        (5) Failure to commence proceedings by complaint for
    accounting within 90 days after serving giving notice of
    lien pursuant to this subsection shall terminate the lien
    and no subsequent notice of lien may be given for the same
    claim nor may that claim be asserted in any proceedings
    pursuant to this Act, provided, however, that failure to
    file the complaint after notice of the claim for lien shall
    not preclude a subsequent notice or action for an amount or
    amounts becoming due to the lien claimant on a date after
    the prior notice or notices.
        (6) It shall be the duty of any such clerk or
    secretary, as the case may be, upon receipt of the first
    notice herein provided for to cause to be withheld a
    sufficient amount to pay such claim for the period limited
    for the filing of suit plus the period for notice to the
    clerk or secretary of the suit, unless otherwise notified
    by the person claiming the lien. Upon the expiration of
    this period the money, bonds or warrants so withheld shall
    be released for payment to the contractor unless the person
    claiming the lien shall have instituted proceedings and
    delivered to the clerk or secretary, as the case may be, of
    the county, township, school district, city, municipality,
    or municipal corporation, or any other unit of local
    government a copy of the complaint as herein provided, in
    which case, the amount claimed shall be withheld until the
    final adjudication of the suit is had. Provided, that the
    clerk or secretary, as the case may be, to whom a copy of
    the complaint is delivered as herein provided may pay over
    to the clerk of the court in which such suit is pending a
    sum sufficient to pay the amount claimed to abide the
    result of such suit and be distributed by the clerk
    according to the judgment rendered or other court order.
    Any payment so made to such claimant or to the clerk of the
    court shall be a credit on the contract price to be paid to
    such contractor.
    (c) Any person who shall furnish labor, services, material,
apparatus, fixtures, apparatus or machinery, forms or form work
labor to any contractor having a contract for public
improvement for the State, may have a lien for the value
thereof on the money, bonds or warrants due or about to become
due the contractor having a contract with the State under the
contract. The lien shall attach to only that portion of the
money, bonds or warrants against which no voucher has been
issued and delivered by the State.
            (1) No person or party shall have a lien as
        provided in this subsection (c) unless such person
        shall, before payment or delivery thereof is made to
        the contractor, notify , by giving to the Director or
        other official, whose duty it is to let such contract,
        written notice of a his claim for lien containing a
        sworn statement identifying the claimant's contract,
        describing the work done by the claimant and stating
        the total amount due and unpaid as of the date of the
        notice for the work of the claim showing with
        particularity the several items and the amount claimed
        to be due on each. The claimant shall furnish a copy of
        said notice at once to the contractor. The person
        claiming such lien may cause such written notice with
        sworn statement of the claim to be given either by
        sending such notice (by registered or certified mail,
        return receipt requested, with delivery limited to
        addressee only) to, or by delivering such notice to the
        Director or other official of the State whose duty it
        is to let such contract; and the copy of such notice
        which the person claiming the lien is to furnish to the
        contractor may be sent to, or delivered to such
        contractor in like manner. The notice shall be
        effective when received or refused by the Director or
        other official whose duty it is to let the contract
        However, the lien shall attach to only that portion of
        the money, bonds or warrants against which no voucher
        has been issued and delivered by the State.
        (2) Provided, that where such person has not so
    notified the Director or other official of the State, whose
    duty it is to let such contract, of his claim for a lien,
    upon written demand of the contractor, with service by
    certified mail (return receipt requested) and with a copy
    filed with such Director or other official of the State,
    that person shall, within 30 days, notify the Director or
    other official of the State, whose duty it is to let such
    contract, of his claim for a lien by either sending or
    delivering written notice in like manner as above provided
    for giving written notice with sworn statement of claim to
    such Director or official, or the lien shall be forfeited.
        (3) No public official shall withhold from the
    contractor money, bonds, warrants or funds on the basis of
    a lien forfeited as provided herein.
        (4) The person so claiming a lien shall, within 90 days
    after serving giving such notice, commence proceedings by
    complaint for an accounting, making the contractor having a
    contract with the State and the contractor to whom such
    labor, services, material, apparatus, fixtures, apparatus
    or machinery, forms or form work labor was furnished,
    parties defendant, and shall, within 10 days after filing
    the suit the same period notify the Director of the
    commencement of such suit by delivering to him a copy of
    the complaint filed; provided, if money appropriated by the
    General Assembly is to be used in connection with the
    construction of such public improvement, that suit shall be
    commenced and a copy of the complaint delivered to the
    Director not less than 15 days before the date when the
    appropriation from which such money is to be paid, will
    lapse.
        (5) Failure to commence proceedings by complaint for
    accounting within 90 days after serving giving notice of
    lien pursuant to this subsection shall terminate the lien
    and no subsequent notice of lien may be given for the same
    claim nor may that claim be asserted in any proceedings
    pursuant to this Act, provided, however, that failure to
    file suit after notice of a claim for lien shall not
    preclude a subsequent notice or action for an amount or
    amounts becoming due to the lien claimant on a date after
    the prior notice or notices.
        (6) It shall be the duty of the Director, upon receipt
    of the written notice with sworn statement as herein
    provided, to withhold payment of a sum sufficient to pay
    the amount of such claim, for the period limited for the
    filing of suit plus the period for the notice to the
    Director, unless otherwise notified by the person claiming
    the lien. Upon the expiration of this period the money,
    bonds, or warrants so withheld shall be released for
    payment to the contractor unless the person claiming the
    lien shall have instituted proceedings and delivered to the
    Director a copy of the complaint as herein provided, in
    which case, the amount claimed shall be withheld until the
    final adjudication of the suit is had. Provided, the
    Director or other official may pay over to the clerk of the
    court in which such suit is pending, a sum sufficient to
    pay the amount claimed to abide the result of such suit and
    be distributed by the clerk according to the judgment
    rendered or other court order. Any payment so made to such
    claimant or to the clerk of the court shall be a credit on
    the contract price to be paid to such contractor.
    (d) Any officer of the State, county, township, school
district, city, municipality, or municipal corporation, or any
other unit of local government violating the duty hereby
imposed upon him shall be liable on his official bond to the
claimant giving notice as provided in this Section for the
damages resulting from such violation, which may be recovered
in a civil action in the circuit court. There shall be no
preference between the persons giving such notice, but all
shall be paid pro rata in proportion to the amount due under
their respective contracts.
    (e) In the event a suit to enforce a claim based on a
notice of claim for lien is commenced in accordance with this
Section, and the suit is subsequently dismissed, the lien for
the work claimed under the notice of claim for lien shall
terminate 30 days after the effective date of the order
dismissing the suit unless the lien claimant shall file a
motion to reinstate the suit, a motion to reconsider, or a
notice of appeal within the 30-day period. Notwithstanding the
foregoing, nothing contained in this Section shall prevent a
public body from paying a lien claim in less than 30 days after
dismissal.
    (f) Unless the contract with the State, county, township,
school district, city, municipality, municipal corporation, or
any other unit of local government otherwise provides, no lien
for material shall be defeated because of lack of proof that
the material after the delivery thereof, actually entered into
the construction of the building or improvement, even if it be
shown that the material was not actually used in the
construction of the building or improvement so long as it is
shown that the material was delivered either (i) to the owner
or its agent for that building or improvement, to be used in
that building or improvement or (ii) pursuant to the contract,
at the place where the building or improvement was being
constructed or some other designated place, for the purpose of
being used in construction or for the purpose of being employed
in the process of construction as a means for assisting in the
erection of the building or improvement in what is commonly
termed forms or form work where concrete, cement, or like
material is used, in whole or in part.
(Source: P.A. 87-329.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/17/2007