Judiciary I - Civil Law Committee
Filed: 3/21/2007
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1 | AMENDMENT TO HOUSE BILL 830
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2 | AMENDMENT NO. ______. Amend House Bill 830 by replacing | ||||||
3 | everything after the enacting clause with the following:
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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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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.
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10 | (b) Any person who shall furnish labor, services, material, | ||||||
11 | apparatus, fixtures,
apparatus or machinery , forms or form work
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12 | labor to any contractor having a contract for public
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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
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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
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5 | county, township, school district, city, municipality ,
or
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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,
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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
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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
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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
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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 ,
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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,
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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
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7 | machinery , forms or form work
labor was furnished, parties
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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
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9 | the county, township, school district, city, municipality ,
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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
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21 | court shall be a credit on the contract price to be paid to | ||||||
22 | such contractor.
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23 | (c) Any person who shall furnish labor, services, material, | ||||||
24 | apparatus, fixtures, apparatus or machinery , forms
or form work
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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,
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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
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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
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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,
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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
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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
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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
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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.
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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.
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4 | (Source: P.A. 87-329.)
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5 | Section 99. Effective date. This Act takes effect upon | ||||||
6 | becoming law.".
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