SB0330 Enrolled LRB095 09738 AJO 29944 b

1     AN ACT concerning liens.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Mechanics Lien Act is amended by changing
5 Section 23 and adding Section 1.2 as follows:
 
6     (770 ILCS 60/1.2 new)
7     Sec. 1.2. Rental equipment liens. In addition to persons
8 who would otherwise have a lien under this Act, any person,
9 whether contractor or subcontractor, who leases construction
10 equipment to another for use in the process of constructing a
11 specific improvement to real estate, has a lien for the rental
12 value of the construction equipment to the same extent and in
13 the same manner as provided in this Act for other liens. This
14 Section shall apply only if, and to the extent that, the
15 equipment is used on or about the site of the improvement. This
16 Section does not apply if the improvement is either a single
17 family residence or a multi-family residence of fewer than 12
18 units in a single building.
 
19     (770 ILCS 60/23)  (from Ch. 82, par. 23)
20     Sec. 23. Liens against public funds.
21     (a) For the purpose of this Section "contractor" includes
22 any sub-contractor; "State" includes any department, board or

 

 

SB0330 Enrolled - 2 - LRB095 09738 AJO 29944 b

1 commission thereof, or other person financing and constructing
2 any public improvements for the benefit of the State or any
3 department, board or commission thereof; and "director"
4 includes any chairman or president of any State department,
5 board or commission, or the president or chief executive
6 officer or such other person financing and constructing a
7 public improvement for the benefit of the State.
8     (a-5) For the purpose of this Section, "unit of local
9 government" includes any unit of local government as defined in
10 the Illinois Constitution of 1970, and any entity, other than
11 the State, organized for the purpose of conducting public
12 business pursuant to the Intergovernmental Cooperation Act or
13 the General Not For Profit Corporation Act of 1986, or where a
14 not-for-profit corporation is owned, operated, or controlled
15 by one or more units of local government for the purpose of
16 conducting public business.
17     (b) Any person who shall furnish labor, services, material,
18 apparatus, fixtures, apparatus or machinery, forms or form work
19 labor to any contractor having a contract for public
20 improvement for any county, township, school district, city,
21 municipality, or municipal corporation, or any other unit of
22 local government in this State, shall have a lien for the value
23 thereof on the money, bonds, or warrants due or to become due
24 the contractor having a contract with such county, township,
25 school district, municipality, or municipal corporation, or
26 any other unit of local government in this State under such

 

 

SB0330 Enrolled - 3 - LRB095 09738 AJO 29944 b

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

 

 

SB0330 Enrolled - 4 - LRB095 09738 AJO 29944 b

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

 

 

SB0330 Enrolled - 5 - LRB095 09738 AJO 29944 b

1     for causing notification and written notice of a claim for
2     lien to be given to such clerk or secretary, as the case
3     may be, or the lien shall be forfeited.
4         (3) No official shall withhold from the contractor
5     money, bonds, warrants, or funds on the basis of a lien
6     forfeited as provided herein.
7         (4) The person so claiming a lien shall, within 90 days
8     after serving giving such notice, commence proceedings by
9     complaint for an accounting, making the contractor having a
10     contract with the county, township, school district, city,
11     municipality, or municipal corporation, or any other unit
12     of local government and the contractor to whom such labor,
13     services, material, apparatus, fixtures, apparatus or
14     machinery, forms or form work labor was furnished, parties
15     defendant, and shall within 10 days after filing the
16     complaint the same period notify the clerk or secretary, as
17     the case may be, of the county, township, school district,
18     city, municipality, or municipal corporation, or any other
19     unit of local government of the commencement of such suit
20     by delivering to him or them a copy of the complaint filed.
21         (5) Failure to commence proceedings by complaint for
22     accounting within 90 days after serving giving notice of
23     lien pursuant to this subsection shall terminate the lien
24     and no subsequent notice of lien may be given for the same
25     claim nor may that claim be asserted in any proceedings
26     pursuant to this Act, provided, however, that failure to

 

 

SB0330 Enrolled - 6 - LRB095 09738 AJO 29944 b

1     file the complaint after notice of the claim for lien shall
2     not preclude a subsequent notice or action for an amount or
3     amounts becoming due to the lien claimant on a date after
4     the prior notice or notices.
5         (6) It shall be the duty of any such clerk or
6     secretary, as the case may be, upon receipt of the first
7     notice herein provided for to cause to be withheld a
8     sufficient amount to pay such claim for the period limited
9     for the filing of suit plus the period for notice to the
10     clerk or secretary of the suit, unless otherwise notified
11     by the person claiming the lien. Upon the expiration of
12     this period the money, bonds or warrants so withheld shall
13     be released for payment to the contractor unless the person
14     claiming the lien shall have instituted proceedings and
15     delivered to 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 a copy of the complaint as herein provided, in
19     which case, the amount claimed shall be withheld until the
20     final adjudication of the suit is had. Provided, that the
21     clerk or secretary, as the case may be, to whom a copy of
22     the complaint is delivered as herein provided may pay over
23     to the clerk of the court in which such suit is pending a
24     sum sufficient to pay the amount claimed to abide the
25     result of such suit and be distributed by the clerk
26     according to the judgment rendered or other court order.

 

 

SB0330 Enrolled - 7 - LRB095 09738 AJO 29944 b

1     Any payment so made to such claimant or to the clerk of the
2     court shall be a credit on the contract price to be paid to
3     such contractor.
4     (c) Any person who shall furnish labor, services, material,
5 apparatus, fixtures, apparatus or machinery, forms or form work
6 labor to any contractor having a contract for public
7 improvement for the State, may have a lien for the value
8 thereof on the money, bonds or warrants due or about to become
9 due the contractor having a contract with the State under the
10 contract. The lien shall attach to only that portion of the
11 money, bonds or warrants against which no voucher has been
12 issued and delivered by the State.
13             (1) No person or party shall have a lien as
14         provided in this subsection (c) unless such person
15         shall, before payment or delivery thereof is made to
16         the contractor, notify , by giving to the Director or
17         other official, whose duty it is to let such contract,
18         written notice of a his claim for lien containing a
19         sworn statement identifying the claimant's contract,
20         describing the work done by the claimant and stating
21         the total amount due and unpaid as of the date of the
22         notice for the work of the claim showing with
23         particularity the several items and the amount claimed
24         to be due on each. The claimant shall furnish a copy of
25         said notice at once to the contractor. The person
26         claiming such lien may cause such written notice with

 

 

SB0330 Enrolled - 8 - LRB095 09738 AJO 29944 b

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

 

 

SB0330 Enrolled - 9 - LRB095 09738 AJO 29944 b

1         (3) No public official shall withhold from the
2     contractor money, bonds, warrants or funds on the basis of
3     a lien forfeited as provided herein.
4         (4) The person so claiming a lien shall, within 90 days
5     after serving giving such notice, commence proceedings by
6     complaint for an accounting, making the contractor having a
7     contract with the State and the contractor to whom such
8     labor, services, material, apparatus, fixtures, apparatus
9     or machinery, forms or form work labor was furnished,
10     parties defendant, and shall, within 10 days after filing
11     the suit the same period notify the Director of the
12     commencement of such suit by delivering to him a copy of
13     the complaint filed; provided, if money appropriated by the
14     General Assembly is to be used in connection with the
15     construction of such public improvement, that suit shall be
16     commenced and a copy of the complaint delivered to the
17     Director not less than 15 days before the date when the
18     appropriation from which such money is to be paid, will
19     lapse.
20         (5) Failure to commence proceedings by complaint for
21     accounting within 90 days after serving giving notice of
22     lien pursuant to this subsection shall terminate the lien
23     and no subsequent notice of lien may be given for the same
24     claim nor may that claim be asserted in any proceedings
25     pursuant to this Act, provided, however, that failure to
26     file suit after notice of a claim for lien shall not

 

 

SB0330 Enrolled - 10 - LRB095 09738 AJO 29944 b

1     preclude a subsequent notice or action for an amount or
2     amounts becoming due to the lien claimant on a date after
3     the prior notice or notices.
4         (6) It shall be the duty of the Director, upon receipt
5     of the written notice with sworn statement as herein
6     provided, to withhold payment of a sum sufficient to pay
7     the amount of such claim, for the period limited for the
8     filing of suit plus the period for the notice to the
9     Director, unless otherwise notified by the person claiming
10     the lien. Upon the expiration of this period the money,
11     bonds, or warrants so withheld shall be released for
12     payment to the contractor unless the person claiming the
13     lien shall have instituted proceedings and delivered to the
14     Director a copy of the complaint as herein provided, in
15     which case, the amount claimed shall be withheld until the
16     final adjudication of the suit is had. Provided, the
17     Director or other official may pay over to the clerk of the
18     court in which such suit is pending, a sum sufficient to
19     pay the amount claimed to abide the result of such suit and
20     be distributed by the clerk according to the judgment
21     rendered or other court order. Any payment so made to such
22     claimant or to the clerk of the court shall be a credit on
23     the contract price to be paid to such contractor.
24     (d) Any officer of the State, county, township, school
25 district, city, municipality, or municipal corporation, or any
26 other unit of local government violating the duty hereby

 

 

SB0330 Enrolled - 11 - LRB095 09738 AJO 29944 b

1 imposed upon him shall be liable on his official bond to the
2 claimant giving notice as provided in this Section for the
3 damages resulting from such violation, which may be recovered
4 in a civil action in the circuit court. There shall be no
5 preference between the persons giving such notice, but all
6 shall be paid pro rata in proportion to the amount due under
7 their respective contracts.
8     (e) In the event a suit to enforce a claim based on a
9 notice of claim for lien is commenced in accordance with this
10 Section, and the suit is subsequently dismissed, the lien for
11 the work claimed under the notice of claim for lien shall
12 terminate 30 days after the effective date of the order
13 dismissing the suit unless the lien claimant shall file a
14 motion to reinstate the suit, a motion to reconsider, or a
15 notice of appeal within the 30-day period. Notwithstanding the
16 foregoing, nothing contained in this Section shall prevent a
17 public body from paying a lien claim in less than 30 days after
18 dismissal.
19     (f) Unless the contract with the State, county, township,
20 school district, city, municipality, municipal corporation, or
21 any other unit of local government otherwise provides, no lien
22 for material shall be defeated because of lack of proof that
23 the material after the delivery thereof, actually entered into
24 the construction of the building or improvement, even if it be
25 shown that the material was not actually used in the
26 construction of the building or improvement so long as it is

 

 

SB0330 Enrolled - 12 - LRB095 09738 AJO 29944 b

1 shown that the material was delivered either (i) to the owner
2 or its agent for that building or improvement, to be used in
3 that building or improvement or (ii) pursuant to the contract,
4 at the place where the building or improvement was being
5 constructed or some other designated place, for the purpose of
6 being used in construction or for the purpose of being employed
7 in the process of construction as a means for assisting in the
8 erection of the building or improvement in what is commonly
9 termed forms or form work where concrete, cement, or like
10 material is used, in whole or in part.
11 (Source: P.A. 87-329.)
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.