103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4660

 

Introduced 2/6/2024, by Rep. Bob Morgan

 

SYNOPSIS AS INTRODUCED:
 
770 ILCS 60/5  from Ch. 82, par. 5
770 ILCS 60/21  from Ch. 82, par. 21

    Amends the Mechanics Lien Act. Removes language providing for notice by a subcontractor for an owner-occupied single-family from a provision regarding notice by a contractor for an owner-occupied single-family. In a provision regarding subcontractor liens, requires the notice provided by the subcontractor to contain, in addition to other requirements, the type of labor, services, fixtures, apparatus or machinery, or forms or form work delivered and to be delivered. Makes other changes.


LRB103 38254 JRC 68389 b

 

 

A BILL FOR

 

HB4660LRB103 38254 JRC 68389 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Mechanics Lien Act is amended by changing
5Sections 5 and 21 as follows:
 
6    (770 ILCS 60/5)  (from Ch. 82, par. 5)
7    Sec. 5. Statement of contractor and persons furnishing
8labor, services, material, fixtures, apparatus or machinery,
9forms or form work notice to owner of owner-occupied
10single-family residence waiver; size of type.
11    (a) It shall be the duty of the contractor to give the
12owner, and the duty of the owner to require of the contractor,
13before the owner or the owner's his agent, architect, or
14superintendent shall pay or cause to be paid to the contractor
15or to the contractor's his order any moneys or other
16consideration due or to become due to the contractor, or make
17or cause to be made to the contractor any advancement of any
18moneys or any other consideration, a statement in writing,
19under oath or verified by affidavit, of the names and
20addresses of all parties furnishing labor, services, material,
21fixtures, apparatus or machinery, or forms or form work and of
22the amounts due or to become due to each. Merchants and dealers
23in materials only shall not be required to make statements

 

 

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1required in this Section.
2    (b) The following shall apply to an owner-occupied
3single-family residence:
4        (i) Each contractor shall provide the owner or the
5    owner's his or her agent, either as part of the contract or
6    as a separate printed statement given before the owner or
7    the owner's his agent makes the first payment for labor,
8    materials, fixtures, or apparatus or machinery, the
9    following notice in at least 10 point boldface type:
10        "THE LAW REQUIRES THAT THE CONTRACTOR SHALL SUBMIT A
11    SWORN STATEMENT OF PERSONS FURNISHING LABOR, SERVICES,
12    MATERIAL, FIXTURES, APPARATUS OR MACHINERY, OR FORMS OR
13    FORM WORK BEFORE ANY PAYMENTS ARE REQUIRED TO BE MADE TO
14    THE CONTRACTOR."
15        If the owners of the property are persons living
16    together, the aforesaid statement is conclusively presumed
17    given to each such owners if given to one of them.
18        (ii) (Blank). Each subcontractor who has furnished, or
19    is furnishing, labor, services, material, fixtures,
20    apparatus or machinery, forms or form work in order to
21    preserve his lien, shall notify the occupant either
22    personally or by certified mail, return receipt requested,
23    addressed to the occupant or his agent at the residence
24    within 60 days from his first furnishing labor, services,
25    material, fixtures, apparatus or machinery, forms or form
26    work, of his agreement to do so.

 

 

HB4660- 3 -LRB103 38254 JRC 68389 b

1        The notice shall contain the name and address of the
2    subcontractor or material man, the date he started to work
3    or to deliver materials, the type of work done and to be
4    done or the type of labor, services, material, fixtures,
5    apparatus or machinery, forms or form work delivered and
6    to be delivered, and the name of the contractor requesting
7    the work. The notice shall also contain the following
8    warning:
9    
"NOTICE TO OWNER
10         The subcontractor providing this notice has performed
11    work for or delivered material to your home improvement
12    contractor. These services or materials are being used in
13    the improvements to your residence and entitle the
14    subcontractor to file a lien against your residence if the
15    labor, services, material, fixtures, apparatus or
16    machinery, forms or form work are not paid for by your home
17    improvement contractor. A lien waiver will be provided to
18    your contractor when the subcontractor is paid, and you
19    are urged to request this waiver from your contractor when
20    paying for your home improvements."
21        (iii) (Blank). The statement and the notices required
22    by subdivisions (b)(i) and (b)(ii) of this Section shall
23    be in at least 10 point boldface type. For purposes of this
24    Section, notice by certified mail is considered served at
25    the time of its mailing. Any notice given pursuant to
26    subdivision (b)(ii) of this Section after 60 days by the

 

 

HB4660- 4 -LRB103 38254 JRC 68389 b

1    subcontractor, however, shall preserve his or her lien,
2    but only to the extent that the owner has not been
3    prejudiced by payments made before receipt of the notice.
4(Source: P.A. 94-627, eff. 1-1-06.)
 
5    (770 ILCS 60/21)  (from Ch. 82, par. 21)
6    Sec. 21. Subcontractor Sub-contractor defined; lien of
7subcontractor sub-contractor; notice; size of type; service of
8notice; amount of lien; default by contractor.
9    (a) Subject to the provisions of Section 5, every
10mechanic, worker, or other person who shall furnish any labor,
11services, material, fixtures, apparatus or machinery, or forms
12or form work for the contractor, or shall furnish any material
13to be employed in the process of construction as a means for
14assisting in the erection of the building or improvement in
15what is commonly termed form or form work where concrete,
16cement, or like material is used in whole or in part, shall be
17known under this Act as a subcontractor sub-contractor, and
18shall have a lien for the value thereof, with interest on such
19amount from the date the same is due, from the same time, on
20the same property as provided for the contractor, and, also,
21as against the creditors and assignees, and personal and legal
22representatives of the contractor, on the material, fixtures,
23or apparatus or machinery furnished, and on the moneys or
24other considerations due or to become due from the owner under
25the original contract.

 

 

HB4660- 5 -LRB103 38254 JRC 68389 b

1    (b) If the legal effect of a provision in any contract
2between the owner and contractor or contractor and
3subcontractor is that no lien or claim may be filed or
4maintained, or that such contractor's lien shall be
5subordinated to the interests of any other party, and the
6provision is not prohibited by this Act, such provision shall
7be binding if made as part of an agreement not prohibited by
8this Act.
9    (c) It shall be the duty of each subcontractor who has
10furnished, or is furnishing, labor, services, material,
11fixtures, apparatus or machinery, or forms or form work for an
12existing owner-occupied single family residence, in order to
13preserve the subcontractor's his lien, to notify the occupant
14either personally or by certified mail, return receipt
15requested, addressed to the occupant or the occupant's his
16agent of the residence within 60 days from the subcontractor's
17his first furnishing labor, services, material, fixtures,
18apparatus or machinery, or forms or form work, that the
19subcontractor he is supplying labor, services, material,
20fixtures, apparatus or machinery, or forms or form work
21provided, however, that any notice given after 60 days by the
22subcontractor shall preserve the subcontractor's his lien, but
23only to the extent that the owner has not been prejudiced by
24payments made prior to receipt of the notice. The notification
25shall include a warning to the owner that before any payment is
26made to the contractor, the owner should receive a waiver of

 

 

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1lien executed by each subcontractor who has furnished labor,
2services, material, fixtures, apparatus or machinery, or forms
3or form work.
4    The notice shall contain the name and address of the
5subcontractor or material supplier man, the date the
6subcontractor or material supplier he started to work or to
7deliver materials, the type of work done and to be done or the
8type of labor, services, materials, fixtures, apparatus or
9machinery, or forms or form work delivered and to be
10delivered, and the name of the contractor requesting the work.
11The notice shall also contain the following warning:
12
"NOTICE TO OWNER
13    The subcontractor providing this notice has performed work
14for or delivered material to your home improvement contractor.
15These services or materials are being used in the improvements
16to your residence and entitle the subcontractor to file a lien
17against your residence if the labor, services, or materials,
18fixtures, apparatus or machinery, or forms or form work are
19not paid for by your home improvement contractor. A lien
20waiver will be provided to your contractor when the
21subcontractor is paid, and you are urged to request this
22waiver from your contractor when paying for your home
23improvements."
24    Such warning shall be in at least 10 point bold face type.
25For purposes of this Section, notice by certified mail is
26considered served at the time of its mailing.

 

 

HB4660- 7 -LRB103 38254 JRC 68389 b

1    (d) In no case, except as hereinafter provided, shall the
2owner be compelled to pay a greater sum for or on account of
3the completion of such house, building, or other improvement
4than the price or sum stipulated in said original contract or
5agreement, unless payment be made to the contractor or to the
6contractor's his order, in violation of the rights and
7interests of the persons intended to be benefited by this Act:
8Provided, if it shall appear to the court that the owner and
9contractor fraudulently, and for the purpose of defrauding
10subcontractors sub-contractors fixed an unreasonably low price
11in their original contract for the erection or repairing of
12such house, building, or other improvement, then the court
13shall ascertain how much of a difference exists between a fair
14price for labor, services, material, fixtures, apparatus or
15machinery, or forms or form work used in said house, building
16or other improvement, and the sum named in said original
17contract, and said difference shall be considered a part of
18the contract and be subject to a lien. But where the
19contractor's statement, made as provided in Section 5, shows
20the amount to be paid to the subcontractor sub-contractor, or
21party furnishing material, or the subcontractor's
22sub-contractor's statement, made pursuant to Section 22, shows
23the amount to become due for material; or notice is given to
24the owner, as provided in Sections 24 and 25, and thereafter
25such subcontractor sub-contract shall be performed, or
26material to the value of the amount named in such statements or

 

 

HB4660- 8 -LRB103 38254 JRC 68389 b

1notice, shall be prepared for use and delivery, or delivered
2without written protest on the part of the owner previous to
3such performance or delivery, or preparation for delivery,
4then, and in any of such cases, such subcontractor
5sub-contractor or party furnishing or preparing material,
6regardless of the price named in the original contract, shall
7have a lien therefor to the extent of the amount named in such
8statements or notice. In case of default or abandonment by the
9contractor, the subcontractor sub-contractor or party
10furnishing material, shall have and may enforce the
11subcontractor's his lien to the same extent and in the same
12manner that the contractor may under conditions that arise as
13provided for in Section 4 of this Act, and shall have and may
14exercise the same rights as are therein provided for the
15contractor.
16    (e) Any provision in a contract, agreement, or
17understanding, when payment from a contractor to a
18subcontractor or supplier is conditioned upon receipt of the
19payment from any other party including a private or public
20owner, shall not be a defense by the party responsible for
21payment to a claim brought under Section 21, 22, 23, or 28 of
22this Act against the party. For the purpose of this Section,
23"contractor" also includes subcontractor or supplier. The
24provisions of Public Act 87-1180 shall be construed as
25declarative of existing law and not as a new enactment.
26(Source: P.A. 98-764, eff. 7-16-14.)