ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. In this episode he covers County code of conduct (Public Act 98-779), Dissolution of business entities (Public Act 98-776), The Residential Real Property Disclosure Act (Public Act 98-754) and The Mechanics Lien Act. (Public Act 98-764). More information on the bill is available below the video.

County code of conduct. Public Act 98-779 (Morrison, D-Deerfield; Yingling D-Hainesville) allows a county board for counties more than 300,000 but less than two million population to adopt a code of conduct regarding the fiscal responsibility and procurement authority, as required by State law, local ordinance, or county board policy It may also include additional provisions for the accountability, transparency, and ethical conduct of county appointees. Allows appointees appointed by a county board chairman or county executive to be removed from office for violating the code of conduct by the county board chairman or county executive with concurrence by a 2/3 majority vote of the county board. It requires that reasonable notice of the violation and a hearing before the county board or its designee be provided to the appointee before the vote. Makes similar provisions for appointees appointed by the county. The Act exempts the removal of county superintendent of highways and county engineer from these provisions. Effective January 1, 2015.

Dissolution of business entities. Public Act 98-776 (Harmon, D-Oak Park; Currie, D-Chicago) amends several acts governing business organizations regarding director and officer liability during periods of dissolution. Reinstatement of the organization reinstates the corporate liability shield for directors, officers, employees, and agents of the organization for actions taken during the period of dissolution. Clarifies that directors are not liable for actions that are necessary and appropriate to wind up and liquidate a corporation’s business and affairs. Effective January 1, 2015.

The Residential Real Property Disclosure Act. Public Act 98-754 (Bertino-Tarrant, D-Plainfield; Walsh, D-Joliet) amends the Residential Real Property Disclosure Act to add material defects in the windows or doors to the list of disclosures required under the Act. Effective January 1, 2015.

The Mechanics Lien Act. Public Act 98-764 (Mulroe, D-Chicago; Kelly Burke, D-Oak Lawn) provides that language barring certain agreements does not prohibit an agreement to subordinate a mechanics lien to a mortgage lien that secures a construction loan if that agreement is made after more than 50% of the loan has been disbursed to fund improvements to the property. Allows provisions to be binding between an owner and contractor or a contractor and subcontractor that no lien or claim may be filed or maintained or that a contractor’s lien must be subordinated to the interests of any other party as long as it is not otherwise prohibited by this Act. Deletes language providing that the only admissible evidence of specified conditions of a contract as against a subcontractor or material supplier shall be proof of actual notice thereof to him or her before his or her contract is entered into. Deletes language providing that certain subordination provisions of contracts is not binding on the subcontractor unless set forth in its entirety in writing in the contract between the contractor and subcontractor or material supplier.  Effective July 16, 2014.