Bill Amendment: IL HB4660 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: MECHANICS LIEN-NOTICE
Status: 2024-08-09 - Public Act . . . . . . . . . 103-0827 [HB4660 Detail]
Download: Illinois-2023-HB4660-Senate_Amendment_001.html
Bill Title: MECHANICS LIEN-NOTICE
Status: 2024-08-09 - Public Act . . . . . . . . . 103-0827 [HB4660 Detail]
Download: Illinois-2023-HB4660-Senate_Amendment_001.html
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1 | AMENDMENT TO HOUSE BILL 4660 | ||||||
2 | AMENDMENT NO. ______. Amend House Bill 4660 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 | Sections 5, 21, and 24 as follows:
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6 | (770 ILCS 60/5) (from Ch. 82, par. 5) | ||||||
7 | Sec. 5. Statement of contractor and persons furnishing | ||||||
8 | labor, services, material, fixtures, apparatus or machinery, | ||||||
9 | forms or form work notice to owner of owner-occupied | ||||||
10 | single-family residence waiver; size of type . | ||||||
11 | (a) It shall be the duty of the contractor to give the | ||||||
12 | owner, and the duty of the owner to require of the contractor, | ||||||
13 | before the owner or the owner's his agent, architect, or | ||||||
14 | superintendent shall pay or cause to be paid to the contractor | ||||||
15 | or to the contractor's his order any moneys or other | ||||||
16 | consideration due or to become due to the contractor, or make |
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1 | or cause to be made to the contractor any advancement of any | ||||||
2 | moneys or any other consideration, a statement in writing, | ||||||
3 | under oath or verified by affidavit, of the names and | ||||||
4 | addresses of all parties furnishing labor, services, material, | ||||||
5 | fixtures, apparatus or machinery, or forms or form work and of | ||||||
6 | the amounts due or to become due to each. Merchants and dealers | ||||||
7 | in materials only shall not be required to make statements | ||||||
8 | required in this Section. | ||||||
9 | (b) The following shall apply to an owner-occupied | ||||||
10 | single-family residence: | ||||||
11 | (i) Each contractor shall provide the owner or the | ||||||
12 | owner's his or her agent, either as part of the contract or | ||||||
13 | as a separate printed statement given before the owner or | ||||||
14 | the owner's his agent makes the first payment for labor, | ||||||
15 | materials, fixtures, or apparatus or machinery, the | ||||||
16 | following notice in at least 10 point boldface type : | ||||||
17 | "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A | ||||||
18 | SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES, | ||||||
19 | MATERIAL, FIXTURES, APPARATUS OR MACHINERY, OR FORMS OR | ||||||
20 | FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO | ||||||
21 | THE CONTRACTOR." | ||||||
22 | If the owners of the property are persons living | ||||||
23 | together, the aforesaid statement is conclusively presumed | ||||||
24 | given to each such owners if given to one of them. | ||||||
25 | (ii) (Blank). Each subcontractor who has furnished, or | ||||||
26 | is furnishing, labor, services, material, fixtures, |
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1 | apparatus or machinery, forms or form work in order to | ||||||
2 | preserve his lien, shall notify the occupant either | ||||||
3 | personally or by certified mail, return receipt requested, | ||||||
4 | addressed to the occupant or his agent at the residence | ||||||
5 | within 60 days from his first furnishing labor, services, | ||||||
6 | material, fixtures, apparatus or machinery, forms or form | ||||||
7 | work, of his agreement to do so. | ||||||
8 | The notice shall contain the name and address of the | ||||||
9 | subcontractor or material man, the date he started to work | ||||||
10 | or to deliver materials, the type of work done and to be | ||||||
11 | done or the type of labor, services, material, fixtures, | ||||||
12 | apparatus or machinery, forms or form work delivered and | ||||||
13 | to be delivered, and the name of the contractor requesting | ||||||
14 | the work. The notice shall also contain the following | ||||||
15 | warning: | ||||||
16 | "NOTICE TO OWNER | ||||||
17 | The subcontractor providing this notice has performed | ||||||
18 | work for or delivered material to your home improvement | ||||||
19 | contractor. These services or materials are being used in | ||||||
20 | the improvements to your residence and entitle the | ||||||
21 | subcontractor to file a lien against your residence if the | ||||||
22 | labor, services, material, fixtures, apparatus or | ||||||
23 | machinery, forms or form work are not paid for by your home | ||||||
24 | improvement contractor. A lien waiver will be provided to | ||||||
25 | your contractor when the subcontractor is paid, and you | ||||||
26 | are urged to request this waiver from your contractor when |
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1 | paying for your home improvements." | ||||||
2 | (iii) (Blank). The statement and the notices required | ||||||
3 | by subdivisions (b)(i) and (b)(ii) of this Section shall | ||||||
4 | be in at least 10 point boldface type. For purposes of this | ||||||
5 | Section, notice by certified mail is considered served at | ||||||
6 | the time of its mailing. Any notice given pursuant to | ||||||
7 | subdivision (b)(ii) of this Section after 60 days by the | ||||||
8 | subcontractor, however, shall preserve his or her lien, | ||||||
9 | but only to the extent that the owner has not been | ||||||
10 | prejudiced by payments made before receipt of the notice. | ||||||
11 | (Source: P.A. 94-627, eff. 1-1-06.)
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12 | (770 ILCS 60/21) (from Ch. 82, par. 21) | ||||||
13 | Sec. 21. Subcontractor Sub-contractor defined; lien of | ||||||
14 | subcontractor sub-contractor ; notice; size of type; service of | ||||||
15 | notice; amount of lien; default by contractor. | ||||||
16 | (a) Subject to the provisions of Section 5, every | ||||||
17 | mechanic, worker , or other person who shall furnish any labor, | ||||||
18 | services, material, fixtures, apparatus or machinery, or forms | ||||||
19 | or form work for the contractor, or shall furnish any material | ||||||
20 | to be employed in the process of construction as a means for | ||||||
21 | assisting in the erection of the building or improvement in | ||||||
22 | what is commonly termed form or form work where concrete, | ||||||
23 | cement , or like material is used in whole or in part, shall be | ||||||
24 | known under this Act as a subcontractor sub-contractor , and | ||||||
25 | shall have a lien for the value thereof, with interest on such |
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1 | amount from the date the same is due, from the same time, on | ||||||
2 | the same property as provided for the contractor, and, also, | ||||||
3 | as against the creditors and assignees, and personal and legal | ||||||
4 | representatives of the contractor, on the material, fixtures, | ||||||
5 | or apparatus or machinery furnished, and on the moneys or | ||||||
6 | other considerations due or to become due from the owner under | ||||||
7 | the original contract. | ||||||
8 | (b) If the legal effect of a provision in any contract | ||||||
9 | between the owner and contractor or contractor and | ||||||
10 | subcontractor is that no lien or claim may be filed or | ||||||
11 | maintained, or that such contractor's lien shall be | ||||||
12 | subordinated to the interests of any other party, and the | ||||||
13 | provision is not prohibited by this Act, such provision shall | ||||||
14 | be binding if made as part of an agreement not prohibited by | ||||||
15 | this Act. | ||||||
16 | (c) It shall be the duty of each subcontractor who has | ||||||
17 | furnished, or is furnishing, labor, services, material, | ||||||
18 | fixtures, apparatus or machinery, or forms or form work for an | ||||||
19 | existing owner-occupied single family residence, in order to | ||||||
20 | preserve the subcontractor's his lien, to notify the occupant | ||||||
21 | either personally or by certified mail, return receipt | ||||||
22 | requested, addressed to the occupant or the occupant's his | ||||||
23 | agent of the residence within 60 days from the subcontractor's | ||||||
24 | his first furnishing labor, services, material, fixtures, | ||||||
25 | apparatus or machinery, or forms or form work, that the | ||||||
26 | subcontractor he is supplying labor, services, material, |
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1 | fixtures, apparatus or machinery, or forms or form work | ||||||
2 | provided, however, that any notice given after 60 days by the | ||||||
3 | subcontractor shall preserve the subcontractor's his lien, but | ||||||
4 | only to the extent that the owner has not been prejudiced by | ||||||
5 | payments made prior to receipt of the notice. The notification | ||||||
6 | shall include a warning to the owner that before any payment is | ||||||
7 | made to the contractor, the owner should receive a waiver of | ||||||
8 | lien executed by each subcontractor who has furnished labor, | ||||||
9 | services, material, fixtures, apparatus or machinery, or forms | ||||||
10 | or form work. | ||||||
11 | The notice shall contain the name and address of the | ||||||
12 | subcontractor or material supplier man , the date the | ||||||
13 | subcontractor or material supplier he started to work or to | ||||||
14 | deliver materials, the type of work done and to be done or the | ||||||
15 | type of labor, services, materials , fixtures, apparatus or | ||||||
16 | machinery, or forms or form work delivered and to be | ||||||
17 | delivered, and the name of the contractor requesting the work. | ||||||
18 | The notice shall also contain the following warning: | ||||||
19 | "NOTICE TO OWNER | ||||||
20 | The subcontractor providing this notice has performed work | ||||||
21 | for or delivered material to your home improvement contractor. | ||||||
22 | These services or materials are being used in the improvements | ||||||
23 | to your residence and entitle the subcontractor to file a lien | ||||||
24 | against your residence if the labor, services , or materials , | ||||||
25 | fixtures, apparatus or machinery, or forms or form work are | ||||||
26 | not paid for by your home improvement contractor. A lien |
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1 | waiver will be provided to your contractor when the | ||||||
2 | subcontractor is paid, and you are urged to request this | ||||||
3 | waiver from your contractor when paying for your home | ||||||
4 | improvements." | ||||||
5 | Such warning shall be in at least 10 point bold face type. | ||||||
6 | For purposes of this Section, notice by certified mail is | ||||||
7 | considered served at the time of its mailing. | ||||||
8 | (d) In no case, except as hereinafter provided, shall the | ||||||
9 | owner be compelled to pay a greater sum for or on account of | ||||||
10 | the completion of such house, building , or other improvement | ||||||
11 | than the price or sum stipulated in said original contract or | ||||||
12 | agreement, unless payment be made to the contractor or to the | ||||||
13 | contractor's his order, in violation of the rights and | ||||||
14 | interests of the persons intended to be benefited by this Act: | ||||||
15 | Provided, if it shall appear to the court that the owner and | ||||||
16 | contractor fraudulently, and for the purpose of defrauding | ||||||
17 | subcontractors sub-contractors fixed an unreasonably low price | ||||||
18 | in their original contract for the erection or repairing of | ||||||
19 | such house, building , or other improvement, then the court | ||||||
20 | shall ascertain how much of a difference exists between a fair | ||||||
21 | price for labor, services, material, fixtures, apparatus or | ||||||
22 | machinery, or forms or form work used in said house, building | ||||||
23 | or other improvement, and the sum named in said original | ||||||
24 | contract, and said difference shall be considered a part of | ||||||
25 | the contract and be subject to a lien. But where the | ||||||
26 | contractor's statement, made as provided in Section 5, shows |
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1 | the amount to be paid to the subcontractor sub-contractor , or | ||||||
2 | party furnishing material, or the subcontractor's | ||||||
3 | sub-contractor's statement, made pursuant to Section 22, shows | ||||||
4 | the amount to become due for material; or notice is given to | ||||||
5 | the owner, as provided in Sections 24 and 25, and thereafter | ||||||
6 | such subcontractor sub-contract shall be performed, or | ||||||
7 | material to the value of the amount named in such statements or | ||||||
8 | notice, shall be prepared for use and delivery, or delivered | ||||||
9 | without written protest on the part of the owner previous to | ||||||
10 | such performance or delivery, or preparation for delivery, | ||||||
11 | then, and in any of such cases, such subcontractor | ||||||
12 | sub-contractor or party furnishing or preparing material, | ||||||
13 | regardless of the price named in the original contract, shall | ||||||
14 | have a lien therefor to the extent of the amount named in such | ||||||
15 | statements or notice. In case of default or abandonment by the | ||||||
16 | contractor, the subcontractor sub-contractor or party | ||||||
17 | furnishing material, shall have and may enforce the | ||||||
18 | subcontractor's his lien to the same extent and in the same | ||||||
19 | manner that the contractor may under conditions that arise as | ||||||
20 | provided for in Section 4 of this Act, and shall have and may | ||||||
21 | exercise the same rights as are therein provided for the | ||||||
22 | contractor. | ||||||
23 | (e) Any provision in a contract, agreement, or | ||||||
24 | understanding, when payment from a contractor to a | ||||||
25 | subcontractor or supplier is conditioned upon receipt of the | ||||||
26 | payment from any other party including a private or public |
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1 | owner, shall not be a defense by the party responsible for | ||||||
2 | payment to a claim brought under Section 21, 22, 23, or 28 of | ||||||
3 | this Act against the party. For the purpose of this Section, | ||||||
4 | "contractor" also includes subcontractor or supplier. The | ||||||
5 | provisions of Public Act 87-1180 shall be construed as | ||||||
6 | declarative of existing law and not as a new enactment. | ||||||
7 | (Source: P.A. 98-764, eff. 7-16-14.)
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8 | (770 ILCS 60/24) (from Ch. 82, par. 24) | ||||||
9 | Sec. 24. Written notice by subcontractor sub-contractor ; | ||||||
10 | service; when notice not necessary; form of notice. | ||||||
11 | (a) Subcontractors Sub-contractors , or parties furnishing | ||||||
12 | labor, materials, fixtures, apparatus, machinery, or services, | ||||||
13 | may at any time after making his or her contract with the | ||||||
14 | contractor, and shall within 90 days after the completion | ||||||
15 | thereof, or, if extra or additional work or material is | ||||||
16 | delivered thereafter, within 90 days after the date of | ||||||
17 | completion of such extra or additional work or final delivery | ||||||
18 | of such extra or additional material, cause a written notice | ||||||
19 | of his or her claim and the amount due or to become due | ||||||
20 | thereunder, to be provided to the owner of record or the owner | ||||||
21 | of record's agent or architect, or the superintendent having | ||||||
22 | charge of the building or improvement and to the lending | ||||||
23 | agency, if known, with the written notice to be sent by : (i) | ||||||
24 | registered or certified mail, with return receipt requested ; | ||||||
25 | (ii) a nationally recognized delivery company with tracking |
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1 | service; or (iii) personal service. Notice shall be considered | ||||||
2 | served at the time the written notice is placed with the | ||||||
3 | delivery service or in the mail. The , and delivery limited to | ||||||
4 | addressee only, to or personally served on the owner of record | ||||||
5 | or his agent or architect, or the superintendent having charge | ||||||
6 | of the building or improvement and to the lending agency, if | ||||||
7 | known; and such notice shall not be necessary when the sworn | ||||||
8 | statement of the contractor or subcontractor provided for | ||||||
9 | herein shall serve to give the owner notice of the amount due | ||||||
10 | and to whom due, but where such statement is incorrect as to | ||||||
11 | the amount, the subcontractor or material man named shall be | ||||||
12 | protected to the extent of the amount named therein as due or | ||||||
13 | to become due to him or her. For purposes of this Section, | ||||||
14 | notice by registered or certified mail is considered served at | ||||||
15 | the time of its mailing. | ||||||
16 | The form of such notice may be as follows: To (name of | ||||||
17 | owner): You are hereby notified that I have been employed by | ||||||
18 | (the name of contractor) to (state here what was the contract | ||||||
19 | or what was done, or to be done, or what the claim is for) | ||||||
20 | under his or her contract with you, on your property at (here | ||||||
21 | give substantial description of the property) and that there | ||||||
22 | was due to me, or is to become due (as the case may be) | ||||||
23 | therefor, the sum of $..... | ||||||
24 | Dated at .... this .... day of ....., ..... | ||||||
25 | (Signature)..... | ||||||
26 | (b) The serving of notice pursuant to subsection (a) of |
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