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1 | AN ACT concerning civil law.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Mechanics Lien Act is amended by changing | ||||||
5 | Section 23 as follows:
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6 | (770 ILCS 60/23) (from Ch. 82, par. 23)
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7 | Sec. 23. Liens against public funds.
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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
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16 | public improvement for the benefit of the State.
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17 | (a-5) For the purpose of this Section, "unit of local | ||||||
18 | government" includes any unit of local government as defined in | ||||||
19 | the Illinois Constitution of 1970, and any entity, other than | ||||||
20 | the State, organized for the purpose of conducting public | ||||||
21 | business pursuant to the Intergovernmental Cooperation Act or | ||||||
22 | the General Not For Profit Corporation Act of 1986, or where a | ||||||
23 | not-for-profit corporation is owned, operated, or controlled |
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1 | by one or more units of local government for the purpose of | ||||||
2 | conducting public business.
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3 | (b) Any person who shall furnish labor, services, material, | ||||||
4 | apparatus, fixtures,
apparatus or machinery , forms or form work
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5 | labor to any contractor having a contract for public
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6 | improvement for any county, township, school district, city, | ||||||
7 | municipality ,
or municipal corporation , or any other unit of | ||||||
8 | local government in this State, shall have a lien for the value
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9 | thereof on the money, bonds, or warrants due or to become due | ||||||
10 | the
contractor having a contract with such county, township, | ||||||
11 | school district,
municipality ,
or municipal corporation , or | ||||||
12 | any other unit of local government in this State under such | ||||||
13 | contract.
The lien shall attach only to that portion of the | ||||||
14 | money, bonds, or warrants against which no voucher or other | ||||||
15 | evidence of indebtedness has been issued and delivered to the | ||||||
16 | contractor by or on behalf of the county, township, school | ||||||
17 | district, city, municipality, municipal corporation, or any | ||||||
18 | other unit of local government as the case may be at the time | ||||||
19 | of the notice. | ||||||
20 | (1) No person shall have a lien as provided in this | ||||||
21 | subsection (b) unless
Provided, such person shall, before | ||||||
22 | payment or delivery thereof is made to
such contractor, | ||||||
23 | notify the clerk or secretary, as the case may be, of the
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24 | county, township, school district, city, municipality ,
or
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25 | municipal
corporation , or any other unit of local | ||||||
26 | government
his claim by a written notice of the claim for |
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1 | lien containing a sworn statement identifying the | ||||||
2 | claimant's contract, describing the work done by the | ||||||
3 | claimant, and stating the total amount due and unpaid as of | ||||||
4 | the date of the notice for the work and furnish a copy of | ||||||
5 | said
notice at once to said contractor. The person claiming | ||||||
6 | such lien may cause
notification and written notice thereof | ||||||
7 | to be given either by sending the
written notice (by | ||||||
8 | registered or certified mail, return receipt requested,
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9 | with delivery limited to addressee only) to, or by | ||||||
10 | delivering the written
notice to the clerk or secretary, as | ||||||
11 | the case may be, of the county,
township, school district, | ||||||
12 | city, municipality, or municipal corporation , or any other | ||||||
13 | unit of local government ;
and the copy of the written | ||||||
14 | notice which the person claiming the lien is to
furnish to | ||||||
15 | the contractor may be sent to, or delivered to such | ||||||
16 | contractor
in like manner. The notice shall be effective | ||||||
17 | when received or refused by the clerk or secretary, as the | ||||||
18 | case may be,
And, provided further, that such lien shall | ||||||
19 | attach only to
that portion of such money, bonds, or | ||||||
20 | warrants against which no voucher or
other evidence of | ||||||
21 | indebtedness has been issued and delivered to the
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22 | contractor by or on behalf of the county, township, school | ||||||
23 | district, city,
municipality ,
or municipal corporation , or | ||||||
24 | any other unit of local government
as the case may be at | ||||||
25 | the time of
such notice . | ||||||
26 | (2) Provided further, that where such person has not so |
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1 | notified
the clerk or secretary, as the case may be, of the | ||||||
2 | county, township, school
district, city, municipality ,
or
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3 | municipal corporation , or any other unit of local | ||||||
4 | government of his claim for a
lien, upon written demand of | ||||||
5 | the contractor with service by certified mail
(return | ||||||
6 | receipt requested) and with a copy filed with the clerk or
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7 | secretary, as the case may be, that person shall, within 30 | ||||||
8 | days, notify
the clerk or secretary, as the case may be, of | ||||||
9 | the county, township, school
district, city, municipality ,
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10 | or municipal corporation , or any other unit of local | ||||||
11 | government of his claim for a
lien by either sending or | ||||||
12 | delivering written notice in like manner as above
provided | ||||||
13 | for causing notification and written notice of a claim for | ||||||
14 | lien to
be given to such clerk or secretary, as the case | ||||||
15 | may be, or the lien shall
be forfeited. | ||||||
16 | (3) No official shall withhold from the contractor | ||||||
17 | money, bonds,
warrants, or funds on the basis of a lien | ||||||
18 | forfeited as provided herein. | ||||||
19 | (4) The
person so claiming a lien shall, within 90 days | ||||||
20 | after serving
giving such notice ,
commence proceedings by | ||||||
21 | complaint for an accounting, making the contractor
having a | ||||||
22 | contract with the county, township, school district, city,
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23 | municipality ,
or municipal corporation , or any other unit | ||||||
24 | of local government and the contractor to whom such
labor, | ||||||
25 | services, material, apparatus, fixtures, apparatus or
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26 | machinery , forms or form work
labor was furnished, parties
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1 | defendant, and shall within 10 days after filing the | ||||||
2 | complaint
the same period notify the clerk or secretary,
as | ||||||
3 | the case may be, of the county, township, school district, | ||||||
4 | city,
municipality ,
or municipal corporation , or any other | ||||||
5 | unit of local government of the commencement of such suit | ||||||
6 | by
delivering to him or them a copy of the complaint filed. | ||||||
7 | (5) Failure to
commence proceedings by complaint for | ||||||
8 | accounting within 90 days after serving
giving notice of | ||||||
9 | lien pursuant to
this subsection shall terminate the lien | ||||||
10 | and no subsequent notice of lien
may be given for the same | ||||||
11 | claim nor may that claim be asserted in any
proceedings | ||||||
12 | pursuant to this Act , provided, however, that failure to | ||||||
13 | file the complaint after notice of the claim for lien shall | ||||||
14 | not preclude a subsequent notice or action for an amount or | ||||||
15 | amounts becoming due to the lien claimant on a date after | ||||||
16 | the prior notice or notices . | ||||||
17 | (6) It shall be the duty of any such clerk
or | ||||||
18 | secretary, as the case may be, upon receipt of the first | ||||||
19 | notice herein
provided for to cause to be withheld a | ||||||
20 | sufficient amount to pay such claim
for the period limited | ||||||
21 | for the filing of suit plus the period for notice to the | ||||||
22 | clerk or secretary of the suit , unless otherwise notified | ||||||
23 | by
the person claiming the lien. Upon the expiration of | ||||||
24 | this period the
money, bonds or warrants so withheld shall | ||||||
25 | be released for payment to the
contractor unless the person | ||||||
26 | claiming the lien shall have instituted
proceedings and |
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1 | delivered to the clerk or secretary, as the case may be, of
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2 | the county, township, school district, city, municipality ,
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3 | or municipal
corporation , or any other unit of local | ||||||
4 | government a copy of the complaint as herein provided, in | ||||||
5 | which case, the
amount claimed shall be withheld until the | ||||||
6 | final adjudication of the suit
is had. Provided, that the | ||||||
7 | clerk or secretary, as the case may be,
to whom a copy of | ||||||
8 | the complaint is delivered as herein provided may pay
over | ||||||
9 | to the clerk of the court in which such suit is pending a | ||||||
10 | sum
sufficient to pay the amount claimed to abide the | ||||||
11 | result of such suit and
be distributed by the clerk | ||||||
12 | according to the judgment rendered or other
court order. | ||||||
13 | Any payment so made to such claimant or to the clerk of the
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14 | court shall be a credit on the contract price to be paid to | ||||||
15 | such contractor.
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16 | (c) Any person who shall furnish labor, services, material, | ||||||
17 | apparatus, fixtures, apparatus or machinery , forms
or form work
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18 | labor to any contractor having a contract for public | ||||||
19 | improvement for
the State, may have a lien for the value | ||||||
20 | thereof on the money, bonds or
warrants due or about to become | ||||||
21 | due the contractor having a contract with
the State under the | ||||||
22 | contract . The lien shall attach to only that portion of the | ||||||
23 | money, bonds or warrants against which no voucher has been | ||||||
24 | issued and delivered by the State. | ||||||
25 |
(1) No person or party shall have a lien as | ||||||
26 | provided in this subsection (c) unless such person |
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1 | shall, before payment or delivery thereof is made to | ||||||
2 | the contractor, notify , by giving to the Director or | ||||||
3 | other official,
whose duty it is to let such contract, | ||||||
4 | written notice of a
his claim for lien
containing a | ||||||
5 | sworn statement identifying the claimant's contract, | ||||||
6 | describing the work done by the claimant and stating | ||||||
7 | the total amount due and unpaid as of the date of the | ||||||
8 | notice for the work
of the claim showing with | ||||||
9 | particularity the
several items and the amount claimed | ||||||
10 | to be due on each . The claimant shall
furnish a copy of | ||||||
11 | said notice at once to the contractor. The person | ||||||
12 | claiming
such lien may cause such written notice with | ||||||
13 | sworn statement of the claim to
be given either by | ||||||
14 | sending such notice (by registered or certified mail,
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15 | return receipt requested, with delivery limited to | ||||||
16 | addressee only) to, or
by delivering such notice to the | ||||||
17 | Director or other official of the State
whose duty it | ||||||
18 | is to let such contract; and the copy of such notice | ||||||
19 | which
the person claiming the lien is to furnish to the | ||||||
20 | contractor may be sent
to, or delivered to such | ||||||
21 | contractor in like manner. The notice shall be | ||||||
22 | effective when received or refused by the Director or | ||||||
23 | other official whose duty it is to let the contract
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24 | However, the lien
shall attach to only that portion of | ||||||
25 | the money, bonds or warrants
against which no voucher | ||||||
26 | has been issued and delivered by the State . |
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1 | (2)
Provided, that where such person has not so | ||||||
2 | notified the Director or other
official of the State, whose | ||||||
3 | duty it is to let such contract, of his claim
for a lien, | ||||||
4 | upon written demand of the contractor, with service by | ||||||
5 | certified
mail (return receipt requested) and with a copy | ||||||
6 | filed with such Director
or other official of the State, | ||||||
7 | that person shall, within 30 days, notify
the Director or | ||||||
8 | other official of the State, whose duty it is to let such
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9 | contract, of his claim for a lien by either sending or | ||||||
10 | delivering written
notice in like manner as above provided | ||||||
11 | for giving written notice with
sworn statement of claim to | ||||||
12 | such Director or official, or the lien shall
be forfeited. | ||||||
13 | (3) No public official shall withhold from the | ||||||
14 | contractor money,
bonds, warrants or funds on the basis of | ||||||
15 | a lien forfeited as provided herein. | ||||||
16 | (4)
The person so claiming a lien shall, within 90 days | ||||||
17 | after serving
giving such
notice, commence proceedings by | ||||||
18 | complaint for an accounting, making the
contractor having a | ||||||
19 | contract with the State and the contractor to whom
such | ||||||
20 | labor, services, material, apparatus, fixtures, apparatus | ||||||
21 | or machinery , forms or form work
labor was furnished,
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22 | parties defendant, and shall, within 10 days after filing | ||||||
23 | the suit
the same period notify the Director
of the | ||||||
24 | commencement of such suit by delivering to him a copy
of | ||||||
25 | the complaint filed; provided, if money appropriated by the | ||||||
26 | General
Assembly is to be used in connection with the |
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1 | construction of such
public improvement, that suit shall be | ||||||
2 | commenced and a copy of the
complaint delivered to the | ||||||
3 | Director not less than 15 days before the date
when the | ||||||
4 | appropriation from which such money is to be paid, will | ||||||
5 | lapse. | ||||||
6 | (5)
Failure to commence proceedings by complaint for | ||||||
7 | accounting within 90 days after serving
giving notice of
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8 | lien pursuant to this subsection shall terminate the lien | ||||||
9 | and no subsequent
notice of lien may be given for the same | ||||||
10 | claim nor may that claim be
asserted in any proceedings | ||||||
11 | pursuant to this Act , provided, however, that failure to | ||||||
12 | file suit after notice of a claim for lien shall not | ||||||
13 | preclude a subsequent notice or action for an amount or | ||||||
14 | amounts becoming due to the lien claimant on a date after | ||||||
15 | the prior notice or notices . | ||||||
16 | (6) It shall be the duty of
the Director, upon receipt | ||||||
17 | of the written notice with sworn statement as
herein | ||||||
18 | provided, to withhold payment of a sum sufficient to pay | ||||||
19 | the
amount of such claim, for the period limited for the | ||||||
20 | filing of suit plus the period for the notice to the | ||||||
21 | Director ,
unless otherwise notified by the person claiming | ||||||
22 | the lien.
Upon the expiration of this period the money, | ||||||
23 | bonds, or warrants so
withheld shall be released for | ||||||
24 | payment to the contractor unless the
person claiming the | ||||||
25 | lien shall have instituted proceedings and delivered
to the | ||||||
26 | Director a copy of the complaint as herein
provided, in |
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1 | which case, the amount claimed shall be withheld until the
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2 | final adjudication of the suit is had. Provided, the | ||||||
3 | Director or other
official may pay over to the clerk of the | ||||||
4 | court in which such suit is
pending, a sum sufficient to | ||||||
5 | pay the amount claimed to abide the result of
such suit and | ||||||
6 | be distributed by the clerk according to the judgment
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7 | rendered or other court order. Any payment so made to such | ||||||
8 | claimant or to
the clerk of the court shall be a credit on | ||||||
9 | the contract price to be paid
to such contractor.
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10 | (d) Any officer of the State, county, township, school | ||||||
11 | district, city,
municipality ,
or municipal corporation , or any | ||||||
12 | other unit of local government violating the duty hereby | ||||||
13 | imposed
upon him shall be liable on his official bond to the | ||||||
14 | claimant giving notice
as provided in this Section for the | ||||||
15 | damages resulting from such violation,
which may be recovered | ||||||
16 | in a civil action in the circuit court. There shall
be no | ||||||
17 | preference between the persons giving such notice, but all | ||||||
18 | shall be
paid pro rata in proportion to the amount due under | ||||||
19 | their respective contracts. | ||||||
20 | (e) In the event a suit to enforce a claim based on a | ||||||
21 | notice of claim for lien is commenced in accordance with this | ||||||
22 | Section, and the suit is subsequently dismissed, the lien for | ||||||
23 | the work claimed under the notice of claim for lien shall | ||||||
24 | terminate 30 days after the effective date of the order | ||||||
25 | dismissing the suit unless the lien claimant shall file a | ||||||
26 | motion to reinstate the suit, a motion to reconsider, or a |
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1 | notice of appeal within the 30 day period. Notwithstanding the | ||||||
2 | foregoing, nothing contained in this Section shall prevent a | ||||||
3 | public body from paying a lien claim in less than 30 days after | ||||||
4 | dismissal. | ||||||
5 | (f) Unless the contract with the State, county, township, | ||||||
6 | school district, city, municipality, municipal corporation, or | ||||||
7 | any other unit of local government otherwise provides, no lien | ||||||
8 | for material shall be defeated because of lack of proof that | ||||||
9 | the material after the delivery thereof, actually entered into | ||||||
10 | the construction of the building or improvement, even if it be | ||||||
11 | shown that the material was not actually used in the | ||||||
12 | construction of the building or improvement so long as it is | ||||||
13 | shown that the material was delivered either (i) to the owner | ||||||
14 | or its agent for that building or improvement, to be used in | ||||||
15 | that building or improvement or (ii) pursuant to the contract, | ||||||
16 | at the place where the building or improvement was being | ||||||
17 | constructed or some other designated place, for the purpose of | ||||||
18 | being used in construction or for the purpose of being employed | ||||||
19 | in the process of construction as a means for assisting in the | ||||||
20 | erection of the building or improvement in what is commonly | ||||||
21 | termed forms or form work where concrete, cement, or like | ||||||
22 | material is used, in whole or in part.
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23 | (Source: P.A. 87-329.)
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
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