Full Text of HB4660 103rd General Assembly
HB4660sam001 103RD GENERAL ASSEMBLY | Sen. Elgie R. Sims, Jr. Filed: 5/15/2024 | | 10300HB4660sam001 | | LRB103 38254 LNS 73513 a |
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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: | 4 | | "Section 5. The Mechanics Lien Act is amended by changing | 5 | | Sections 5, 21, and 24 as follows: | 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.) | 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.) | 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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| 1 | | this Section shall not constitute an admission by the lien | 2 | | claimant that its status is that of subcontractor if it is | 3 | | later determined that the party with whom the lien claimant | 4 | | contracted was the owner or an agent of the owner. | 5 | | (Source: P.A. 94-627, eff. 1-1-06.)". |
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