Bill Status of HB 5201   100th General Assembly

Short Description:  MECHANICS LIEN DEMAND & REFER

House Sponsors
Rep. La Shawn K. Ford-Emanuel Chris Welch-Frances Ann Hurley-Marcus C. Evans, Jr.

Senate Sponsors
(Sen. Cristina Castro)


Last Action  View All Actions

DateChamber Action
  8/24/2018HousePublic Act . . . . . . . . . 100-1061

Statutes Amended In Order of Appearance
55 ILCS 5/3-5010.8 new
55 ILCS 5/5-41065 new
55 ILCS 5/5-43043 new
770 ILCS 60/34from Ch. 82, par. 34
770 ILCS 60/34.5 new

Synopsis As Introduced
Amends the Counties Code. Creates a mechanics lien demand and referral pilot program. Provides that in counties with a code hearing unit, a recorder may adopt rules establishing a mechanics lien demand and referral process for residential property after a public hearing. Provides that if a recorder determines that a mechanics lien recorded in the grantor's index or the grantee's index is a defective lien, the recorder shall serve a Notice of Defective Lien by certified mail to the last known address of the owner. Provides that if the owner or legal representative of the owner of the residential property confirms in writing that the lien is not involved in pending litigation, the owner may request that the recorder refer the defective mechanics lien to the county's code hearing department for adjudication or serve a Demand to Commence Suit forcing the lienholder to either file suit, respond to the Demand, or forfeit the lien. Provides how the recorder is to serve a Demand to Commence Suit or file a Notice of Referral with the code hearing unit. Provides that if the mechanics lien is referred to the code hearing unit, the code hearing unit will set a hearing and notify the applicable parties. Provides if the recorder shows by clear and convincing evidence that the lien in question is a defective lien, the administrative law judge shall rule the lien is forfeited and that the lien no longer affects the chain of title of the property in any way. Limits liability. Includes other provisions. Repeals the provisions on January 1, 2022. Further amends the Counties Code making conforming changes in county code hearing unit provisions. Amends the Mechanics Lien Act making conforming changes.

Senate Committee Amendment No. 1
Replaces everything after the enacting clause. Reinserts the provisions of the engrossed bill with the following changes: provides that the demand and referral process is for expired mechanics liens (rather than defective mechanics liens); adds a definition of "residential property"; makes changes concerning how expired liens are classified; provides that a lien may be determined expired if an automatic stay under specified provisions of the United States Bankruptcy Code does not prohibit a suit or counterclaim to foreclose; provides that when the lienholder commences a suit or files an answer within 30 days or the lienholder records a release of lien with the county recorder provisions (rather than the mechanics lien is forfeited because no suit or answer is filed), then the demand and referral process is completed for the recorder for that property; provides that the recorder (rather than the administrative law judge) shall provide notice of hearing; provides that a decision by the administrative law judge is reviewable under the Administrative Review Law and review shall be consistent with the Administrative Review Law (rather than de novo); provides that a lienholder or property owner may remove the matter to circuit court under specified circumstances and if the matter is not resolved in the circuit court, the recorder may reinstitute the demand and referral process; and provides that the administrative law judge handling the demand and referral proceedings needs to be familiar with the areas of law relating to mechanics liens (rather than specializes in public records).

Senate Floor Amendment No. 2
Replaces everything after the enacting clause. Reinserts the provisions of Senate Amendment No. 1 with the following changes: removes the definition of "subcontractor"; makes changes concerning how a recorder determines if a lien is expired; provides that a recorder may not proceed with referral of a matter if a lienholder responds to the Demand to Commence Suit served by the recorder but may refer the matter if no response is received; modifies the procedures related to the notice of hearing of a referral and the when the hearing occurs in the code hearing unit; and provides that the recorder shall record a copy of the administrative law's finding that the lien is not expired (rather than to be valid and still within the statutorily prescribed period of time to remain as an active lien in the property's chain of title).

Actions 
DateChamber Action
  2/15/2018HouseFiled with the Clerk by Rep. La Shawn K. Ford
  2/16/2018HouseFirst Reading
  2/16/2018HouseReferred to Rules Committee
  3/21/2018HouseAssigned to Judiciary - Civil Committee
  3/21/2018HouseTo Commercial Law Subcommittee
  4/10/2018HouseRecommends Do Pass Subcommittee/ Judiciary - Civil Committee; 005-000-000
  4/10/2018HouseReported Back To Judiciary - Civil Committee;
  4/10/2018HouseDo Pass / Short Debate Judiciary - Civil Committee; 011-000-000
  4/10/2018HousePlaced on Calendar 2nd Reading - Short Debate
  4/17/2018HouseSecond Reading - Short Debate
  4/17/2018HousePlaced on Calendar Order of 3rd Reading - Short Debate
  4/18/2018HouseThird Reading - Short Debate - Passed 110-000-000
  4/18/2018HouseAdded Co-Sponsor Rep. Emanuel Chris Welch
  4/18/2018HouseAdded Co-Sponsor Rep. Frances Ann Hurley
  4/18/2018HouseAdded Co-Sponsor Rep. Marcus C. Evans, Jr.
  4/18/2018HouseRemoved Co-Sponsor Rep. Emanuel Chris Welch
  4/18/2018HouseRemoved Co-Sponsor Rep. Frances Ann Hurley
  4/18/2018HouseRemoved Co-Sponsor Rep. Marcus C. Evans, Jr.
  4/18/2018HouseAdded Chief Co-Sponsor Rep. Emanuel Chris Welch
  4/18/2018HouseAdded Chief Co-Sponsor Rep. Frances Ann Hurley
  4/18/2018HouseAdded Chief Co-Sponsor Rep. Marcus C. Evans, Jr.
  4/19/2018SenateArrive in Senate
  4/19/2018SenatePlaced on Calendar Order of First Reading April 23, 2018
  4/25/2018SenateChief Senate Sponsor Sen. Cristina Castro
  4/25/2018SenateFirst Reading
  4/25/2018SenateReferred to Assignments
  5/1/2018SenateAssigned to Judiciary
  5/9/2018SenatePostponed - Judiciary
  5/11/2018SenateRule 2-10 Committee Deadline Established As May 31, 2018
  5/16/2018SenatePostponed - Judiciary
  5/17/2018SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Cristina Castro
  5/17/2018SenateSenate Committee Amendment No. 1 Referred to Assignments
  5/21/2018SenateSenate Committee Amendment No. 1 Assignments Refers to Judiciary
  5/22/2018SenateSenate Committee Amendment No. 1 Adopted
  5/22/2018SenateDo Pass as Amended Judiciary; 011-000-000
  5/22/2018SenatePlaced on Calendar Order of 2nd Reading May 23, 2018
  5/24/2018SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Cristina Castro
  5/24/2018SenateSenate Floor Amendment No. 2 Referred to Assignments
  5/25/2018SenateSenate Floor Amendment No. 2 Assignments Refers to Judiciary
  5/25/2018SenateRule 2-10 Third Reading Deadline Established As May 31, 2018
  5/29/2018SenateSenate Floor Amendment No. 2 Recommend Do Adopt Judiciary; 008-004-000
  5/29/2018SenateSenate Floor Amendment No. 2 Adopted; Castro
  5/29/2018SenateSecond Reading
  5/29/2018SenatePlaced on Calendar Order of 3rd Reading May 30, 2018
  5/30/2018SenateThird Reading - Passed; 037-019-000
  5/30/2018HouseArrived in House
  5/30/2018HousePlaced on Calendar Order of Concurrence Senate Amendment(s) 1, 2
  5/30/2018HouseSenate Committee Amendment No. 1 Motion Filed Concur Rep. La Shawn K. Ford
  5/30/2018HouseSenate Floor Amendment No. 2 Motion Filed Concur Rep. La Shawn K. Ford
  5/30/2018HouseSenate Committee Amendment No. 1 Motion to Concur Referred to Rules Committee
  5/30/2018HouseSenate Floor Amendment No. 2 Motion to Concur Referred to Rules Committee
  5/31/2018HouseSenate Committee Amendment No. 1 Motion to Concur Recommends Be Adopted Rules Committee; 004-000-000
  5/31/2018HouseSenate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Rules Committee; 004-000-000
  5/31/2018HouseSenate Committee Amendment No. 1 House Concurs 069-027-000
  5/31/2018HouseSenate Floor Amendment No. 2 House Concurs 069-027-000
  5/31/2018HouseHouse Concurs
  5/31/2018HousePassed Both Houses
  6/29/2018HouseSent to the Governor
  8/24/2018HouseGovernor Approved
  8/24/2018HouseEffective Date January 1, 2019
  8/24/2018HousePublic Act . . . . . . . . . 100-1061

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