Sen. Jil Tracy

Filed: 4/20/2018

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3096

2    AMENDMENT NO. ______. Amend Senate Bill 3096, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The State Tax Lien Registration Act is amended
6by changing Section 1-5 as follows:
 
7    (35 ILCS 750/1-5)
8    Sec. 1-5. Purpose.
9    (a) The purpose of this Act is to provide a uniform
10statewide system for filing notices of tax liens that are in
11favor of or enforced by the Department or the Department of
12Employment Security. The Department shall maintain the system.
13    (b) The scope of this Act is limited to tax liens in real
14property and personal property, tangible and intangible, of
15taxpayers or other persons or entities against whom the
16Department or the Department of Employment Security has liens

 

 

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1pursuant to law for unpaid final tax liabilities administered
2by the Department.
3    (c) Nothing in this Act shall be construed to invalidate
4any lien filed by the Department with a county recorder of
5deeds prior to January 1, 2018, or by the Department of
6Employment Security prior to January 1, 2020 the effective date
7of this Act.
8(Source: P.A. 100-22, eff. 1-1-18.)
 
9    Section 10. The Unemployment Insurance Act is amended by
10changing Sections 2401 and 2402 and by adding Sections 1502.4
11and 2401.1 as follows:
 
12    (820 ILCS 405/1502.4 new)
13    Sec. 1502.4. Benefit charges; gubernatorial declared
14disasters. Notwithstanding the provisions of Section 1502.1,
15no employer located in an Illinois county that has been
16declared a State disaster area by the Governor in accordance
17with Section 7 of the Illinois Emergency Management Agency Act
18shall be chargeable for any benefit charges that result from
19the payment of benefits to an individual for any weeks of
20unemployment during the period of the disaster, but only to the
21extent that the employer can show that the individual's
22unemployment was a direct result of the declared disaster.
 
23    (820 ILCS 405/2401)  (from Ch. 48, par. 721)

 

 

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1    Sec. 2401. Recording and release of lien.
2    A. The lien created by Section 2400 shall be invalid only
3as to any innocent purchaser for value of stock in trade of any
4employer in the usual course of such employer's business, and
5shall be invalid as to any innocent purchaser for value of any
6of the other assets to which such lien has attached, unless,
7with respect to liens created prior to January 1, 2020, notice
8thereof has been filed by the Director in the office of the
9recorder of the county within which the property subject to the
10lien is situated or, with respect to liens created on or after
11January 1, 2020, notice has been filed in the Lien Registry as
12provided by Section 2401.1. The Director may, in his
13discretion, for good cause shown, issue a certificate of
14withdrawal of notice of lien filed against any employer, which
15certificate shall be recorded in the same manner as herein
16provided for the recording of notice of liens. Such withdrawal
17of notice of lien shall invalidate such lien as against any
18person acquiring any of such employer's property or any
19interest therein, subsequent to the recordation of the
20withdrawal of notice of lien, but shall not otherwise affect
21the validity of such lien, nor shall it prevent the Director
22from re-recording notice of such lien. In the event notice of
23such lien is re-recorded, such notice shall be effective as
24against third persons only as of the date of such
25re-recordation. Recording in the Lien Registry a lien that had
26previously been recorded by the Director with a county recorder

 

 

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1of deeds does not constitute a re-recordation of that lien and
2does not change the original filing date of such lien.
3    B. The recorder of each county shall procure at the expense
4of the county a file labeled "Unemployment Compensation
5Contribution Lien Notice" and an index book labeled
6"Unemployment Compensation Contribution Lien Index." When a
7notice of any such lien is presented to him for filing, he
8shall file it in numerical order in the file and shall enter it
9alphabetically in the index. The entry shall show the name and
10last known business address of the employer named in the
11notice, the serial number of the notice, the date and hour of
12filing, and the amount of contribution, interest and penalty
13thereon due and unpaid. When a certificate of complete or
14partial release of such lien issued by the Director is
15presented for filing in the office of the recorder where a
16notice of lien was filed, the recorder shall permanently attach
17the certificate of release to the notice of lien and shall
18enter the certificate of release and the date in the
19Unemployment Compensation Contribution Lien Index on the line
20where the notice of lien is entered. In case title to land to
21be affected by the Notice of Lien is registered under the
22provisions of "An Act Concerning Land Titles", approved May 1,
231897, as amended, such notice shall be filed in the office of
24the Registrar of Titles of the county within which the property
25subject to the lien is situated and shall be entered upon the
26register of titles as a memorial or charge upon each folium of

 

 

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1the register of title affected by such notice, and the Director
2shall not have a preference over the rights of any bona fide
3purchaser, mortgagee, judgment creditor or other lien holder
4arising prior to the registration of such notice.
5    C. The Director shall have the power to issue a certificate
6of partial release of any part of the property subject to the
7lien if he shall find that the fair market value of that part
8of such property remaining subject to the lien is at least
9equal to the amount of all prior liens upon such property plus
10double the amount of the liability for contributions, interest
11and penalties thereon remaining unsatisfied.
12    D. Where the amount of or the liability for the payment of
13any contribution, interest or penalty is contested by any
14employing unit against whose property a lien has attached, and
15the determination of the Director with reference to such
16contribution has not become final, the Director may issue a
17certificate of release of lien upon the furnishing of bond by
18such employing unit in 125% the amount of the sum of such
19contribution, interest and penalty, for which lien is claimed,
20with good and sufficient surety to be approved by the Director
21conditioned upon the prompt payment of such contribution,
22together with interest and penalty thereon, by such employing
23unit to the Director immediately upon the decision of the
24Director in respect to the liability for such contribution,
25interest and penalty becoming final.
26    E. When a lien filed by the Director before January 1, 2020

 

 

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1obtained pursuant to this Act has been satisfied, the
2Department shall issue a release to the person, or his or her
3agent, against whom the lien was obtained and such release
4shall contain in legible letters a statement as follows:
5    FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
6    BE FILED WITH THE RECORDER OR THE REGISTRAR
7    OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
8    E-1. When a lien filed by the Director in the Lien Registry
9has been satisfied, the Department shall permanently attach a
10certificate of complete or partial release, as the case may be,
11in the Lien Registry, and provide notice of the release to the
12person, or his or her agent, against whom the lien was
13obtained.
14    F. The Director may, by rule, require, as a condition of
15withdrawing, releasing, or partially releasing a lien recorded
16pursuant to this Section, that the employer reimburse the
17Department for any recording fees paid with respect to the
18lien.
19(Source: P.A. 98-107, eff. 7-1-14; 98-1133, eff. 12-23-14.)
 
20    (820 ILCS 405/2401.1 new)
21    Sec. 2401.1. Lien Registry.
22    A. As used in this Section:
23        "Debtor" means an employer or individual against whom
24    there is an unpaid determination and assessment
25    collectible by the Director.

 

 

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1        "Lien Registry" means the public database maintained
2    by the Department of Revenue as provided by the State Tax
3    Lien Registration Act.
4    B. A notice of lien filed by the Director in the Lien
5Registry shall include:
6        1. the name and last known address of the debtor;
7        2. the name and address of the Department;
8        3. the lien number assigned to the lien by the
9    Department;
10        4. the basis for the lien including, but not limited
11    to, the amount of contribution, interest, and penalty due
12    and unpaid as of the date of filing in the Lien Registry;
13    and
14        5. the county or counties where the real property of
15    the debtor to which the lien will attach is located.
16    C. When a notice of lien is filed by the Director in the
17Lien Registry, the lien is perfected and shall be attached to
18all existing and after-acquired: (1) personal property of the
19debtor, both tangible and intangible, that is located in any
20and all counties within the State of Illinois; and (2) real
21property of the debtor located in the county or counties as
22specified in the notice of lien.
23    D. The amount of the lien shall be a debt due the Director
24and shall remain a lien upon all property and rights to: (1)
25personal property belonging to the debtor, both tangible and
26intangible, that is located in any and all counties within the

 

 

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1State of Illinois; and (2) real property of the debtor located
2in the county or counties as specified in the notice of lien.
3Interest and penalty shall accrue on the lien as provided by
4this Act.
5    E. A notice of release, partial release, or withdrawal of
6lien filed in the Lien Registry shall constitute a release,
7partial release, or withdrawal, as the case may be, of the lien
8within the Department, the Lien Registry, and any county in
9which the lien was previously filed. The information contained
10on the Lien Registry shall be controlling, and the Lien
11Registry shall supersede the records of any county.
12    F. Information contained in the Lien Registry shall be
13maintained and made accessible as provided by Section 1-30 of
14the State Tax Lien Registration Act.
15    G. Nothing in this Section shall be construed to invalidate
16any lien filed by the Director with a county recorder of deeds
17prior to the effective date of this amendatory Act of the 100th
18General Assembly.
19    H. In the event of conflict between this Section and any
20other law, this Section shall control.
 
21    (820 ILCS 405/2402)  (from Ch. 48, par. 722)
22    Sec. 2402. Priority of lien. The lien created by Section
232400 shall be prior to all other liens, whether general or
24specific, and shall be inferior only to any claim for wages
25filed pursuant to "An Act to protect employees and laborers in

 

 

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1their claims for wages" approved June 15, 1887, as amended, in
2an amount not exceeding $250.00 for work performed within six
3months from the date of filing such claim, and to such liens as
4shall attach prior to the filing of Notice of Lien by the
5Director with the recorder as provided in this Act; provided,
6however, that in all cases where statutory provision is made
7for the recordation or other public notice of a lien, the lien
8of the Director shall be inferior only to such liens as shall
9have been duly recorded, or of which public notice shall have
10been duly given, in the manner provided by such statute, prior
11to the filing of notice of lien by the Director with the
12recorder as in this Act provided.
13(Source: P.A. 83-358.)
 
14    (820 ILCS 405/1900.2 rep.)
15    Section 15. The Unemployment Insurance Act is amended by
16repealing Section 1900.2.".