100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5577

 

Introduced , by Rep. Jay Hoffman

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 405/2600  from Ch. 48, par. 750

    Amends the Unemployment Insurance Act. Provides that for sales or transfers of business occurring on or after March 1, 2017, the purchaser or transferee is not personally liable for the contributions, interest, and penalties owed to the Department of Employment Security if upon petition to the Director of Employment Security within 2 years after the sale or transfer or notice of the amount due, whichever is later, the purchaser or transferee proves: (1) the purchaser or transferee lacked knowledge of the contributions, interest, and penalties owing to the Department of Employment Security at the time of the sale or transfer; or (2) pursuant to any sale or transfer agreement, the seller or transferor agreed to be liable for outstanding contributions, interest, and penalties owed to the Department of Employment Security. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Unemployment Insurance Act is amended by
5changing Section 2600 as follows:
 
6    (820 ILCS 405/2600)  (from Ch. 48, par. 750)
7    Sec. 2600. Every assignee, receiver, trustee in
8bankruptcy, liquidator, administrator, executor, sheriff,
9mortgagee, conditional vendor, or any other person who shall
10sell substantially all of (A) the business, or (B) the stock of
11goods, or (C) the furniture or fixtures, or (D) the machinery
12and equipment, or (E) the goodwill of any employing unit shall,
13at least 7 days prior to the date of such sale, notify the
14Director of the name and address of the person conducting such
15sale, the date, the place and the terms of such sale and a
16description of the property to be sold. Any assignee, receiver,
17trustee in bankruptcy, liquidator, administrator, executor,
18sheriff, mortgagee, conditional vendor, or any other person who
19shall fail to observe the requirements of this section shall be
20personally responsible for all loss in contributions,
21penalties and interest attributable to such failure to notify
22the Director as herein provided.
23    Any employing unit which shall, outside the usual course of

 

 

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1its business, sell or transfer substantially all or any one of
2the classes of its assets hereinabove enumerated and shall
3cease to own said business, shall, within 10 days after such
4sale or transfer, file such reports as the Director shall
5prescribe and pay the contributions, interest and penalties
6required by this Act with respect to wages for employment up to
7the date of said sale or transfer. The purchaser or transferee
8shall withhold sufficient of the purchase money to cover the
9amount of all contributions, interest and penalties due and
10unpaid by the seller or transferor or, if the payment of money
11is not involved, shall withhold the performance of the
12condition that constitutes the consideration for the transfer,
13until such time as the seller shall produce a receipt from the
14Director showing that the contributions, interest and
15penalties have been paid or a certificate that no
16contributions, interest or penalties are due. If the seller or
17transferor shall fail to pay such contributions within the 10
18days specified, then the purchaser or transferee shall pay the
19money so withheld to the Director of Employment Security. If
20such seller or transferor shall fail to pay the aforementioned
21contributions, interest or penalties within the 10 days and
22said purchaser or transferee shall either fail to withhold such
23purchase money as above required or fail to pay the same to the
24Director immediately after the expiration of 10 days from the
25date of such sale as above required, or shall fail to withhold
26the performance of the condition that constitutes the

 

 

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1consideration for the transfer in cases where the payment of
2money is not involved or is not the sole consideration, such
3purchaser or transferee shall be personally liable to the
4Director for the payment to the Director of the contributions,
5interest and penalties incurred by the seller or transferor up
6to the amount of the reasonable value of the property acquired
7by him.
8    Any person who shall acquire any property or rights thereto
9which at the time of such acquisition is subject to a valid
10lien in favor of the Director shall be personally liable to the
11Director for a sum equal to the amount of contributions secured
12by such lien but not to exceed the reasonable value of such
13property acquired by him.
14    For a sale or transfer of a business occurring on or after
15March 1, 2017, the purchaser or transferee is not personally
16liable for the contributions, interest, and penalties owed to
17the Department if upon petition to the Director within 2 years
18after the sale or transfer or notice of the amount due,
19whichever is later, the purchaser or transferee proves:
20        (1) the purchaser or transferee lacked knowledge of the
21    contributions, interest, and penalties owing to the
22    Department at the time of the sale or transfer; or
23        (2) pursuant to any sale or transfer agreement, the
24    seller or transferor agreed to be liable for outstanding
25    contributions, interest, and penalties owed to the
26    Department.

 

 

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1(Source: P.A. 83-1503.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.