Full Text of SB3096 100th General Assembly
SB3096sam003 100TH GENERAL ASSEMBLY | 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, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The State Tax Lien Registration Act is amended | 6 | | by 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 | 10 | | statewide system for filing notices of tax liens that are in | 11 | | favor of or enforced by the Department or the Department of | 12 | | Employment Security . The Department shall maintain the system. | 13 | | (b) The scope of this Act is limited to tax liens in real | 14 | | property and personal property, tangible and intangible, of | 15 | | taxpayers or other persons or entities against whom the | 16 | | Department or the Department of Employment Security has liens |
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| 1 | | pursuant to law for unpaid final tax liabilities administered | 2 | | by the Department . | 3 | | (c) Nothing in this Act shall be construed to invalidate | 4 | | any lien filed by the Department with a county recorder of | 5 | | deeds prior to January 1, 2018, or by the Department of | 6 | | Employment Security prior to January 1, 2020 the effective date | 7 | | of this Act .
| 8 | | (Source: P.A. 100-22, eff. 1-1-18 .) | 9 | | Section 10. The Unemployment Insurance Act is amended by | 10 | | changing Sections 2401 and 2402 and by adding Sections 1502.4 | 11 | | and 2401.1 as follows: | 12 | | (820 ILCS 405/1502.4 new) | 13 | | Sec. 1502.4. Benefit charges; gubernatorial declared | 14 | | disasters. Notwithstanding the provisions of Section 1502.1, | 15 | | no employer located in an Illinois county that has been | 16 | | declared a State disaster area by the Governor in accordance | 17 | | with Section 7 of the Illinois Emergency Management Agency Act | 18 | | shall be chargeable for any benefit charges that result from | 19 | | the payment of benefits to an individual for any weeks of | 20 | | unemployment during the period of the disaster, but only to the | 21 | | extent that the employer can show that the individual's | 22 | | unemployment 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 | 3 | | as to any
innocent purchaser for value of stock in trade of any | 4 | | employer in the usual
course of such employer's business, and | 5 | | shall be invalid as to any innocent
purchaser for value of any | 6 | | of the other assets to which such lien has
attached, unless , | 7 | | with respect to liens created prior to January 1, 2020, notice | 8 | | thereof has been filed by the Director in the
office of the | 9 | | recorder of the county within which the property
subject to the | 10 | | lien is situated or, with respect to liens created on or after | 11 | | January 1, 2020, notice has been filed in the Lien Registry as | 12 | | provided by Section 2401.1 . The Director may, in his | 13 | | discretion, for
good cause shown, issue a certificate of | 14 | | withdrawal of notice of lien filed
against any employer, which | 15 | | certificate shall be recorded in the same
manner as herein | 16 | | provided for the recording of notice of liens. Such
withdrawal | 17 | | of notice of lien shall invalidate such lien as against any
| 18 | | person acquiring any of such employer's property or any | 19 | | interest therein,
subsequent to the recordation of the | 20 | | withdrawal of notice of lien, but
shall not otherwise affect | 21 | | the validity of such lien, nor shall it prevent
the Director | 22 | | from re-recording notice of such lien. In the event notice of
| 23 | | such lien is re-recorded, such notice shall be effective as | 24 | | against third
persons only as of the date of such | 25 | | re-recordation. Recording in the Lien Registry a lien that had | 26 | | previously been recorded by the Director with a county recorder |
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| 1 | | of deeds does not constitute a re-recordation of that lien and | 2 | | does not change the original filing date of such lien.
| 3 | | B. The recorder of each county shall procure at the expense | 4 | | of
the county a file labeled "Unemployment Compensation | 5 | | Contribution Lien
Notice" and an index book labeled | 6 | | "Unemployment Compensation Contribution
Lien Index." When a | 7 | | notice of any such lien is presented to him for filing,
he | 8 | | shall file it in numerical order in the file and shall enter it
| 9 | | alphabetically in the index. The entry shall show the name and | 10 | | last known
business address of the employer named in the | 11 | | notice, the serial number of
the notice, the date and hour of | 12 | | filing, and the amount of contribution,
interest and penalty | 13 | | thereon due and unpaid. When a certificate of complete
or | 14 | | partial release of such lien issued by the Director is | 15 | | presented for
filing in the office of the recorder where a | 16 | | notice of lien was
filed, the recorder shall permanently attach | 17 | | the certificate of release to
the notice of lien and shall | 18 | | enter the certificate of release and the date
in the | 19 | | Unemployment Compensation Contribution Lien Index on the line | 20 | | where
the notice of lien is entered. In case title to land to | 21 | | be affected by the
Notice of Lien is registered under the | 22 | | provisions of "An Act Concerning
Land Titles", approved May 1, | 23 | | 1897, as amended, such notice shall be
filed in the office of | 24 | | the Registrar of Titles of the county within which
the property | 25 | | subject to the lien is situated and shall be entered upon the
| 26 | | register of titles as a memorial or charge upon each folium of |
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| 1 | | the register
of title affected by such notice, and the Director | 2 | | shall not have a
preference over the rights of any bona fide | 3 | | purchaser, mortgagee, judgment
creditor or other lien holder | 4 | | arising prior to the registration of such
notice.
| 5 | | C. The Director shall have the power to issue a certificate | 6 | | of partial
release of any part of the property subject to the | 7 | | lien if he shall find
that the fair market value of that part | 8 | | of such property remaining subject
to the lien is at least | 9 | | equal to the amount of all prior liens upon such
property plus | 10 | | double the amount of the liability for contributions,
interest | 11 | | and penalties thereon remaining unsatisfied.
| 12 | | D. Where the amount of or the liability for the payment of | 13 | | any
contribution, interest or penalty is contested by any | 14 | | employing unit
against whose property a lien has attached, and | 15 | | the determination of the
Director with reference to such | 16 | | contribution has not become final, the
Director may issue a | 17 | | certificate of release of lien upon the furnishing of
bond by | 18 | | such employing unit in 125% the amount of the sum of such
| 19 | | contribution, interest and penalty, for which lien is claimed, | 20 | | with good
and sufficient surety to be approved by the Director | 21 | | conditioned upon the
prompt payment of such contribution, | 22 | | together with interest and penalty
thereon, by such employing | 23 | | unit to the Director immediately upon the
decision of the | 24 | | Director in respect to the liability for such contribution,
| 25 | | interest and penalty becoming final.
| 26 | | E. When a lien filed by the Director before January 1, 2020 |
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| 1 | | obtained pursuant to this Act has been satisfied, the
| 2 | | Department shall issue a release to the person, or his or her | 3 | | agent, against whom
the lien was obtained and such release | 4 | | shall 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 | 9 | | has been satisfied, the Department shall permanently attach a | 10 | | certificate of complete or partial release, as the case may be, | 11 | | in the Lien Registry, and provide notice of the release to the | 12 | | person, or his or her agent, against whom the lien was | 13 | | obtained. | 14 | | F. The Director may, by rule, require, as a condition of | 15 | | withdrawing, releasing, or partially releasing a lien recorded | 16 | | pursuant to this Section, that the employer reimburse the | 17 | | Department for any recording fees paid with respect to the | 18 | | lien. | 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 | 5 | | Registry 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 | 17 | | Lien Registry, the lien is perfected and shall be attached to | 18 | | all existing and after-acquired: (1) personal property of the | 19 | | debtor, both tangible and intangible, that is located in any | 20 | | and all counties within the State of Illinois; and (2) real | 21 | | property of the debtor located in the county or counties as | 22 | | specified in the notice of lien. | 23 | | D. The amount of the lien shall be a debt due the Director | 24 | | and shall remain a lien upon all property and rights to: (1) | 25 | | personal property belonging to the debtor, both tangible and | 26 | | intangible, that is located in any and all counties within the |
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| 1 | | State of Illinois; and (2) real property of the debtor located | 2 | | in the county or counties as specified in the notice of lien. | 3 | | Interest and penalty shall accrue on the lien as provided by | 4 | | this Act. | 5 | | E. A notice of release, partial release, or withdrawal of | 6 | | lien filed in the Lien Registry shall constitute a release, | 7 | | partial release, or withdrawal, as the case may be, of the lien | 8 | | within the Department, the Lien Registry, and any county in | 9 | | which the lien was previously filed. The information contained | 10 | | on the Lien Registry shall be controlling, and the Lien | 11 | | Registry shall supersede the records of any county. | 12 | | F. Information contained in the Lien Registry shall be | 13 | | maintained and made accessible as provided by Section 1-30 of | 14 | | the State Tax Lien Registration Act. | 15 | | G. Nothing in this Section shall be construed to invalidate | 16 | | any lien filed by the Director with a county recorder of deeds | 17 | | prior to the effective date of this amendatory Act of the 100th | 18 | | General Assembly. | 19 | | H. In the event of conflict between this Section and any | 20 | | other 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 | 23 | | 2400 shall be prior to all other liens,
whether general or | 24 | | specific, and shall be inferior only to any claim for
wages | 25 | | filed pursuant to "An Act to protect employees and laborers in |
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| 1 | | their
claims for wages" approved June 15, 1887, as amended, in | 2 | | an amount not
exceeding $250.00 for work performed within six | 3 | | months from the date of
filing such claim, and to such liens as | 4 | | shall attach prior to the filing of
Notice of Lien by the | 5 | | Director with the recorder as provided in
this Act; provided, | 6 | | however, that in all cases where statutory provision
is made | 7 | | for the recordation or other public notice of a lien, the lien | 8 | | of
the Director shall be inferior only to such liens as shall | 9 | | have been duly
recorded, or of which public notice shall have | 10 | | been duly given, in the
manner provided by such statute, prior | 11 | | to the filing of notice of lien by
the Director with the | 12 | | recorder 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 | 16 | | repealing Section 1900.2.".
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