93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2733


 
Introduced 2/5/2004, by Carol Ronen
 
SYNOPSIS AS INTRODUCED:
 		













820 ILCS 405/2600
  from Ch. 48, par. 750







    Amends the Unemployment Insurance Act. Provides that whenever a
corporation or a limited liability company fails to
pay contributions or payments instead of contributions as prescribed in the
Act,
or fails to properly file the reports as are
required by the Act, those employees, managers, or officers having control or
supervision of or charged with the responsibility
of filing the reports and remitting the contributions or payments instead of
contributions and who willfully fail to do so are
personally liable for the total amount of the contributions  or payments
instead of contributions, not paid, together with any
interest and penalties that may be due.
















LRB093 18303 WGH 44008 b

















 


 


A BILL FOR









 











SB2733

LRB093 18303 WGH 44008 b






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    AN ACT concerning unemployment insurance. 

 
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    Be it enacted by the People of the State of Illinois, 
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represented in the General Assembly: 


 
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    Section  5. The Unemployment Insurance Act is amended by 
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changing
Section 2600 as follows:


 
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    (820 ILCS 405/2600)  (from Ch. 48, par. 750)

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    Sec. 2600. A. Every assignee, receiver, trustee in 
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bankruptcy,
liquidator,
administrator, executor, sheriff, 
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mortgagee, conditional vendor, or any
other person who shall 
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sell substantially all of (1)
(A) the business,
or (2)
(B)
the 
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stock of goods, or (3)
(C) the furniture or fixtures, or (4)

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(D) the machinery
and equipment, or (5)
(E) the goodwill of any 
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employing unit shall, at
least 7
days prior to the date of such 
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sale, notify the Director of the name and
address of the person 
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conducting such sale, the date, the place and the
terms of such 
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sale and a description of the property to be sold. Any

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assignee, receiver, trustee in bankruptcy, liquidator, 
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administrator,
executor, sheriff, mortgagee, conditional 
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vendor, or any other person who
shall fail to observe the 
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requirements of this section shall be personally
responsible 
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for all loss in contributions, penalties and interest

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attributable to such failure to notify the Director as herein 
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provided.


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    Any employing unit which shall, outside the usual course of 
25
its
business, sell or transfer substantially all or any one of 
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the classes of
its assets hereinabove enumerated and shall 
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cease to own said business,
shall, within 10 days after such 
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sale or transfer, file such reports as the
Director shall 
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prescribe and pay the contributions, interest and penalties

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required by this Act with respect to wages for employment up to 
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the date of
said sale or transfer. The purchaser or transferee 
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shall withhold
sufficient of the purchase money to cover the 
 


 






SB2733
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amount of all contributions,
interest and penalties due and 
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unpaid by the seller or transferor or, if
the payment of money 
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is not involved, shall withhold the performance of the

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condition that constitutes the consideration for the transfer, 
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until such
time as the seller shall produce a receipt from the 
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Director showing that
the contributions, interest and 
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penalties have been paid or a certificate
that no 
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contributions, interest or penalties are due. If the seller or

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transferor shall fail to pay such contributions within the 10 
10
days
specified, then the purchaser or transferee shall pay the 
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money so withheld
to the Director of Employment Security. If 
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such seller or
transferor shall fail to pay
the aforementioned 
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contributions, interest or penalties within the 10 days
and 
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said purchaser or transferee shall either fail to withhold such

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purchase money as above required or fail to pay the same to the 
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Director
immediately after the expiration of 10 days from the 
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date of such sale as
above required, or shall fail to withhold 
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the performance of the condition
that constitutes the 
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consideration for the transfer in cases where the
payment of 
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money is not involved or is not the sole consideration, such

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purchaser or transferee shall be personally liable to the 
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Director for the
payment to the Director of the contributions, 
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interest and penalties
incurred by the seller or transferor up 
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to the amount of the reasonable
value of the property acquired 
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by him.


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    Any person who shall acquire any property or rights thereto 
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which at the
time of such acquisition is subject to a valid 
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lien in favor of the
Director shall be personally liable to the 
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Director for a sum equal to the
amount of contributions secured 
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by such lien but not to exceed the
reasonable value of such 
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property acquired by him.


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    B. Whenever a corporation or a limited liability company 
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fails to pay
contributions or payments instead of
contributions 
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as prescribed in this Act, or fails to properly file the 
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reports
as are required by this Act, those employees,
managers, 
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or officers having control or supervision of or charged with 
 


 






SB2733
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the
responsibility of filing the reports and remitting the

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contributions or payments instead of contributions and who 
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willfully fail to
do so are personally liable for the total 
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amount
of the contributions  or payments instead of 
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contributions, not paid,
together with any interest  and 
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penalties that may be
due.  Collection of the total amount due 
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may be made from any one or
combination of the employees, 
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managers, officers, or
directors by use of any of the remedies 
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provided by law for the collection of
the funds.


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(Source: P.A. 83-1503.)