Full Text of HB5577 100th General Assembly
HB5577 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB5577 Introduced , by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: |
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820 ILCS 405/2600 | from Ch. 48, par. 750 |
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Unemployment Insurance Act is amended by | 5 | | changing Section 2600 as follows:
| 6 | | (820 ILCS 405/2600) (from Ch. 48, par. 750)
| 7 | | Sec. 2600.
Every assignee, receiver, trustee in | 8 | | bankruptcy, liquidator,
administrator, executor, sheriff, | 9 | | mortgagee, conditional vendor, or any
other person who shall | 10 | | sell substantially all of (A) the business, or (B)
the stock of | 11 | | goods, or (C) the furniture or fixtures, or (D) the machinery
| 12 | | and equipment, or (E) the goodwill of any employing unit shall, | 13 | | at least 7
days prior to the date of such sale, notify the | 14 | | Director of the name and
address of the person conducting such | 15 | | sale, the date, the place and the
terms of such sale and a | 16 | | description of the property to be sold. Any
assignee, receiver, | 17 | | trustee in bankruptcy, liquidator, administrator,
executor, | 18 | | sheriff, mortgagee, conditional vendor, or any other person who
| 19 | | shall fail to observe the requirements of this section shall be | 20 | | personally
responsible for all loss in contributions, | 21 | | penalties and interest
attributable to such failure to notify | 22 | | the Director as herein provided.
| 23 | | Any employing unit which shall, outside the usual course of |
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| 1 | | its
business, sell or transfer substantially all or any one of | 2 | | the classes of
its assets hereinabove enumerated and shall | 3 | | cease to own said business,
shall, within 10 days after such | 4 | | sale or transfer, file such reports as the
Director shall | 5 | | prescribe and pay the contributions, interest and penalties
| 6 | | required by this Act with respect to wages for employment up to | 7 | | the date of
said sale or transfer. The purchaser or transferee | 8 | | shall withhold
sufficient of the purchase money to cover the | 9 | | amount of all contributions,
interest and penalties due and | 10 | | unpaid by the seller or transferor or, if
the payment of money | 11 | | is not involved, shall withhold the performance of the
| 12 | | condition that constitutes the consideration for the transfer, | 13 | | until such
time as the seller shall produce a receipt from the | 14 | | Director showing that
the contributions, interest and | 15 | | penalties have been paid or a certificate
that no | 16 | | contributions, interest or penalties are due. If the seller or
| 17 | | transferor shall fail to pay such contributions within the 10 | 18 | | days
specified, then the purchaser or transferee shall pay the | 19 | | money so withheld
to the Director of Employment Security. If | 20 | | such seller or
transferor shall fail to pay
the aforementioned | 21 | | contributions, interest or penalties within the 10 days
and | 22 | | said purchaser or transferee shall either fail to withhold such
| 23 | | purchase money as above required or fail to pay the same to the | 24 | | Director
immediately after the expiration of 10 days from the | 25 | | date of such sale as
above required, or shall fail to withhold | 26 | | the performance of the condition
that constitutes the |
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| 1 | | consideration for the transfer in cases where the
payment of | 2 | | money is not involved or is not the sole consideration, such
| 3 | | purchaser or transferee shall be personally liable to the | 4 | | Director for the
payment to the Director of the contributions, | 5 | | interest and penalties
incurred by the seller or transferor up | 6 | | to the amount of the reasonable
value of the property acquired | 7 | | by him.
| 8 | | Any person who shall acquire any property or rights thereto | 9 | | which at the
time of such acquisition is subject to a valid | 10 | | lien in favor of the
Director shall be personally liable to the | 11 | | Director for a sum equal to the
amount of contributions secured | 12 | | by such lien but not to exceed the
reasonable value of such | 13 | | property acquired by him.
| 14 | | For a sale or transfer of a business occurring on or after | 15 | | March 1, 2017, the purchaser or transferee is not personally | 16 | | liable for the contributions, interest, and penalties owed to | 17 | | the Department if upon petition to the Director within 2 years | 18 | | after the sale or transfer or notice of the amount due, | 19 | | whichever 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 | 3 | | becoming law.
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