SB3675 98TH GENERAL ASSEMBLY

LRB098 23283 HEP 62348 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3675

Introduced 11/19/2014, by Sen. Michael Noland

SYNOPSIS AS INTRODUCED:

770 ILCS 45/1	from Ch. 82, par. 40
770 ILCS 50/1	from Ch. 82, par. 47a
815 ILCS 306/10
815 ILCS 306/77 new
815 ILCS 308/10
815 ILCS 308/67 new

Amends the Labor and Storage Lien Act, the Labor and Storage Lien (Small Amount) Act, the Automobile Repair Act, and the Automotive Collision Repair Act. Provides that a person or entity providing labor, services, material, or storage for any vehicle with the consent of the vehicle owner or authorized agent of the vehicle owner shall be entitled to have a lien upon the vehicle for the contracted price of the services provided. Provides methods for establishing consent. Prescribes the method and requirements for foreclosing a mechanic's lien, including notice requirements to the owner. Establishes requirements for the purchaser of a vehicle at a foreclosure sale to obtain title.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Labor and Storage Lien Act is amended by changing Section 1 as follows:

(770 ILCS 45/1) (from Ch. 82, par. 40)

Sec. 1. Every person, firm or corporation who has expended labor, skill or materials upon any chattel, or has furnished storage for said chattel, at the request of its owner, reputed owner, or authorized agent of the owner, or lawful possessor thereof, shall have a lien upon such chattel beginning on the date of the commencement of such expenditure of labor, skill and materials or of such storage for the contract price for all such expenditure of labor, skill or materials, or for all such storage, or in the absence of such contract price, for the reasonable worth of such expenditure of labor, skill and materials, or of such storage, for a period of one year from and after the completion of such expenditure of labor, skill or materials, or of such storage, notwithstanding the fact that the possession of such chattel has been surrendered to the owner, or lawful possessor thereof. The specific procedures for obtaining liens on unclaimed motor vehicles for labor, storage, and material under this Act shall be those set forth in Section 77 of the Automotive Repair Act and Section 67 of the Automotive Collision Repair Act.

(Source: Laws 1921, p. 508.)

Section 10. The Labor and Storage Lien (Small Amount) Act is amended by changing Section 1 as follows:

(770 ILCS 50/1) (from Ch. 82, par. 47a)

Sec. 1. Every person expending labor, services, skill or material upon or furnishing storage for any chattel at the request of or with the consent of its owner, authorized agent of the owner, or lawful possessor thereof, in the amount of $2,000 or less, shall have a lien upon such chattel beginning upon the date of commencement of such expenditure of labor, services, skill, or materials or furnishing of storage, for the contract price for all such expenditure of labor, services, skill, or material, until the possession of such chattel is voluntarily relinquished to such owner or authorized agent, or to one entitled to the possession thereof. The specific procedures for obtaining liens on unclaimed motor vehicles for labor, storage, and material under this Act shall be those set forth in Section 77 of the Automotive Repair Act and Section 67 of the Automotive Collision Repair Act.

For the purposes of this Act, a person, other than a driver or a person otherwise in control of a fire, police, emergency or public utility vehicle on official business, consents to removal by towing of his or her vehicle when he or she without authorization parks such vehicle upon private property while having notice that unauthorized vehicles will be towed from such property by the owner of such property, or agent thereof, at the vehicle owner's expense, where such notice is provided pursuant to State law, local ordinances or regulation by any state or local agency. Such notice must include a sign of at least 24 inches in height by 36 inches in width posted in a conspicuous place in the affected area at least 4 feet from the ground but not more than 8 feet from the ground. Such sign shall be either illuminated or painted with reflective paint, or both and shall state the amount of towing charges to which the person may be subjected. However, the requirement of the sign provided for in this section shall not apply to residential property which, paying due regard to the circumstances and the surrounding area, is clearly reserved or intended exclusively for the use or occupation of residents or their vehicles.

The lien established herein shall also apply to labor, services, skills or material upon or furnishing storage for towed vehicles performed by any relocator or any other towing service pursuant to the order of a law enforcement official or agency in accordance with Sections 4-201 through 4-214 of The Illinois Vehicle Code. The lien created herein shall be valid even though the towing and storage is performed without the vehicle owner's consent.

(Source: P.A. 85-1283.)

Section 15. The Automotive Repair Act is amended by changing Section 10 and by adding Section 77 as follows:

(815 ILCS 306/10)

Sec. 10. Definitions. In this Act:

"Automotive repair" includes, but is not limited to:

(1) All repairs to motor vehicles that are commonly performed in a motor vehicle repair facility by a motor vehicle technician, including the diagnosis, installation, exchange, or repair of mechanical or electrical parts or units for any vehicle, the performance of any electrical or mechanical adjustment to any vehicle, or the performance of any service work required for routine maintenance or repair of any vehicle. The term does not include commercial fleet repair or maintenance transactions involving 2 or more vehicles or ongoing service or maintenance contracts involving vehicles used primarily for business purposes.

(2) All repair work in motor vehicle repair facilities that perform one or more specialties within the automotive repair service industry, including, but not limited to, refinishing, brake, electrical, exhaust repair or installation, front-end, radiators, tires, transmission, tune-up, and windshield. However, transactions involving the retail purchase of merchandise when a facility installs the merchandise as part of the transaction at the discretion of the customer for a firm price are not included. These transactions shall include but not be limited to tires, batteries, oil, and lube jobs.

"Automotive repair facility" or "motor vehicle repair facility" means any person, firm, association, or corporation that for compensation engages in the business of automotive repair or diagnosis, or both, of malfunctions of motor vehicles.

"Owner" includes the person who holds the legal title to the vehicle or the customer who relinquished the vehicle to the claimant for repair.

A "used" part consists of a used assembly removed from a vehicle and installed on a vehicle undergoing repair without the benefit of being rebuilt or remanufactured.

(Source: P.A. 90-426, eff. 1-1-98.)

(815 ILCS 306/77 new)

Sec. 77. Foreclosing mechanic's liens.

(a) If a vehicle is not redeemed by the owner within 30 days after completion of the requested services or 30 days after the date agreed upon by the parties, whichever is later, the vehicle shall be considered unclaimed and the claimant may begin to enforce a mechanic's lien. If no repairs were made, the claimant may enforce a mechanic's lien for storage services 30 days after the claimant provided an estimate to the owner.

(b) The sale of the vehicle shall occur only after providing notice to the lienholder and owner of the time and place of the sale. The claimant shall request the title records of the vehicle from the Secretary of State. If the Secretary of State cannot provide ownership information, the following means shall be used to identify the owner:

(1) using the vehicle identification number to conduct a search through a commercial, nationwide motor vehicle information service; and

(2) inspecting the vehicle for evidence of the name or address of the owner or state of registration.

If evidence of the state of registration is found, the motor vehicle department of the particular state shall be contacted and requested to perform a record search for the name and address of any owner or lienholder. In lieu of contacting a motor vehicle department, the request for the name and address of any owner or lienholder may be made to any private entity approved by the Secretary of State for this purpose.

(c) The claimant shall send notice by certified mail no less than 30 days prior to the sale to the owner of the vehicle and any lienholder. The notice sent to a lienholder shall be sent return receipt requested. The notice, in addition to being mailed to the addresses provided on the record search, shall also be sent to any secondary address provided to the claimant by the vehicle owner. The notice shall include the name, address, and telephone number of the claimant, the hours of operation, the total amount owed, and the time and place of the sale. The sale must be held at the business location of the claimant.

(d) In addition to the certified notice required under subsection (c) of this Section, the claimant shall publish one notice of the sale in a newspaper of general circulation in the city, county, village, municipality, or township where the claimant provided services for the vehicle. The notice shall be published no less than 14 days prior to the date and time of the sale and shall set forth:

(1) the date, time, and location of the sale;

(2) the name of the vehicle owner and a description of the vehicle including the vehicle identification number, make, model, and year of manufacture;

(3) the amount owed; and

(4) a statement that, unless the vehicle is redeemed prior to the date of the sale, it will be sold at sale.

(e) The owner or lienholder of the vehicle may redeem the vehicle any time during normal business hours prior to the date of the sale. If the vehicle is not redeemed prior to the sale, the claimant may sell the vehicle at the time and place specified in the notice to satisfy the lien amount.

(f) After the sale of the vehicle, the entity or individual purchasing the vehicle at sale shall apply for a certificate of title, salvage certificate, or junking certificate for the purchased vehicle as required by law. The entity or individual shall submit a title application along with the following documentation to the Secretary of State:

(1) a detailed, itemized estimate or invoice, including labor and parts, as originally prepared by the repairer, rebuilder, or other entity;

(2) pictures of the vehicle;

(3) a mechanic's lien affirmation, completed by the purchaser and the mechanic;

(4) proof of a title record search;

(5) proof of certified mail notification to the owner and proof of a signed return receipt from the lienholder; and

(6) proof of published notice (not required for a junking certificate).

Section 20. The Automotive Collision Repair Act is amended by changing Section 10 and by adding Section 67 as follows:

(815 ILCS 308/10)

Sec. 10. Definitions. As used in this Act:

"Automotive collision and body repair" means all repairs that are commonly performed by a body repair technician to restore a motor vehicle damaged in an accident or collision to a condition similar to the motor vehicle condition prior to the damage or deterioration including, but not limited to, the diagnosis, installation, exchange, repair, or refinishing of exterior body panels, trim, lighting, and structural chassis. The term does not include commercial fleet repair or maintenance transactions involving 2 or more motor vehicles or ongoing service or maintenance contracts involving motor vehicles used primarily for business purposes.

"Automotive collision and body repair facility" means a person, firm, association, or corporation that for compensation engages in the business of cosmetic repair, structural repair, or refinishing of motor vehicles with defect related to accident or collision.

"New part" means a part or component manufactured or supplied by the original motor vehicle manufacturer in an unused condition.

"Owner" includes the person who holds the legal title to the vehicle or the customer who relinquished the vehicle to the claimant for repair.

"Used part" means an original motor vehicle manufacturer part or component removed from a motor vehicle of similar make, model, and condition without the benefit of being rebuilt or remanufactured.

"Rebuilt part" or "reconditioned part" means a used part that has been inspected and remanufactured to restore functionality and performance.

"Aftermarket part" means a new part that is not manufactured or supplied by the original motor vehicle manufacturer for addition to, or replacement of, exterior body panel or trim.

(Source: P.A. 93-565, eff. 1-1-04.)

(815 ILCS 308/67 new)

Sec. 67. Foreclosing mechanic's liens.

(a) If a vehicle is not redeemed by the owner within 30 days after completion of the requested services or 30 days after the date agreed upon by the parties, whichever is later, the vehicle shall be considered unclaimed and the claimant may begin to enforce a mechanic's lien. If no repairs were made, the claimant may enforce a mechanic's lien for storage services 30 days after the claimant provided an estimate to the owner.

(b) The sale of the vehicle shall occur only after providing notice to the lienholder and owner of the time and place of the sale. The claimant shall request the title records of the vehicle from the Secretary of State. If the Secretary of State cannot provide ownership information, the following means shall be used to identify the owner:

(1) using the vehicle identification number to conduct a search through a commercial, nationwide motor vehicle information service; and

(2) inspecting the vehicle for evidence of the name or address of the owner or state of registration.

If evidence of the state of registration is found, the motor vehicle department of the particular state shall be contacted and requested to perform a record search for the name and address of any owner or lienholder. In lieu of contacting a motor vehicle department, the request for the name and address of any owner or lienholder may be made to any private entity approved by the Secretary of State for this purpose.

(c) The claimant shall send notice by certified mail no less than 30 days prior to the sale to the owner of the vehicle and any lienholder. The notice sent to a lienholder shall be sent return receipt requested. The notice, in addition to being mailed to the addresses provided on the record search, shall also be sent to any secondary address provided to the claimant by the vehicle owner. The notice shall include the name, address, and telephone number of the claimant, the hours of operation, the total amount owed, and the time and place of the sale. The sale must be held at the business location of the claimant.

(d) In addition to the certified notice required under subsection (c) of this Section, the claimant shall publish one notice of the sale in a newspaper of general circulation in the city, county, village, municipality, or township where the claimant provided services for the vehicle. The notice shall be published no less than 14 days prior to the date and time of the sale and shall set forth:

(1) the date, time, and location of the sale;

(2) the name of the vehicle owner and a description of the vehicle including the vehicle identification number, make, model, and year of manufacture;

(3) the amount owed; and

(4) a statement that, unless the vehicle is redeemed prior to the date of the sale, it will be sold at sale.

(e) The owner or lienholder of the vehicle may redeem the vehicle any time during normal business hours prior to the date of the sale. If the vehicle is not redeemed prior to the sale, the claimant may sell the vehicle at the time and place specified in the notice to satisfy the lien amount.

(f) After the sale of the vehicle, the entity or individual purchasing the vehicle at sale shall apply for a certificate of title, salvage certificate, or junking certificate for the purchased vehicle as required by law. The entity or individual shall submit a title application along with the following documentation to the Secretary of State:

(1) a detailed, itemized estimate or invoice, including labor and parts, as originally prepared by the repairer, rebuilder, or other entity;

(2) pictures of the vehicle;

(3) a mechanic's lien affirmation, completed by the purchaser and the mechanic;

(4) proof of a title record search;

(5) proof of certified mail notification to the owner and proof of a signed return receipt from the lienholder; and

(6) proof of published notice (not required for a junking certificate).