Full Text of SB0330 95th General Assembly
SB0330enr 95TH GENERAL ASSEMBLY
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| AN ACT concerning liens.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Mechanics Lien Act is amended by changing | 5 |
| Section 23 and adding Section 1.2 as
follows:
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| (770 ILCS 60/1.2 new)
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| 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.
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| (770 ILCS 60/23) (from Ch. 82, par. 23)
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| Sec. 23. Liens against public funds.
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| (a) For the purpose of this Section "contractor" includes | 22 |
| any
sub-contractor; "State" includes any department, board or |
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| 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
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| public improvement for the benefit of the State.
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| (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.
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| (b) Any person who shall furnish labor, services, material, | 18 |
| apparatus, fixtures,
apparatus or machinery , forms or form work
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| labor to any contractor having a contract for public
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| 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
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| 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 |
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| 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
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| county, township, school district, city, municipality ,
or
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| 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,
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| 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 |
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| 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
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| 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
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| 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
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| 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 ,
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| 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 |
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| 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,
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| 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
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| machinery , forms or form work
labor was furnished, parties
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| 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 |
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| 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
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| the county, township, school district, city, municipality ,
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| 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. |
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| Any payment so made to such claimant or to the clerk of the
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| court shall be a credit on the contract price to be paid to | 3 |
| such contractor.
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| (c) Any person who shall furnish labor, services, material, | 5 |
| apparatus, fixtures, apparatus or machinery , forms
or form work
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| 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 |
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| sworn statement of the claim to
be given either by | 2 |
| sending such notice (by registered or certified mail,
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| 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
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| 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
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| 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. |
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| (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,
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| 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
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| 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 |
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| 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
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| 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
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| 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.
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| (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 |
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| 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 |
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| 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.
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| (Source: P.A. 87-329.)
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law. |
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