Bill Text: IL HB5577 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB5577 Detail]

Download: Illinois-2017-HB5577-Introduced.html

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

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its business, sell or transfer substantially all or any one of
the classes of its assets hereinabove enumerated and shall
cease to own said business, shall, within 10 days after such
sale or transfer, file such reports as the Director shall
prescribe and pay the contributions, interest and penalties
required by this Act with respect to wages for employment up to
the date of said sale or transfer. The purchaser or transferee
shall withhold sufficient of the purchase money to cover the
amount of all contributions, interest and penalties due and
unpaid by the seller or transferor or, if the payment of money
is not involved, shall withhold the performance of the
condition that constitutes the consideration for the transfer,
until such time as the seller shall produce a receipt from the
Director showing that the contributions, interest and
penalties have been paid or a certificate that no
contributions, interest or penalties are due. If the seller or
transferor shall fail to pay such contributions within the 10
days specified, then the purchaser or transferee shall pay the
money so withheld to the Director of Employment Security. If
such seller or transferor shall fail to pay the aforementioned
contributions, interest or penalties within the 10 days and
said purchaser or transferee shall either fail to withhold such
purchase money as above required or fail to pay the same to the
Director immediately after the expiration of 10 days from the
date of such sale as above required, or shall fail to withhold
the performance of the condition that constitutes the

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consideration for the transfer in cases where the payment of
money is not involved or is not the sole consideration, such
purchaser or transferee shall be personally liable to the
Director for the payment to the Director of the contributions,
interest and penalties incurred by the seller or transferor up
to the amount of the reasonable value of the property acquired
by him.
Any person who shall acquire any property or rights thereto
which at the time of such acquisition is subject to a valid
lien in favor of the Director shall be personally liable to the
Director for a sum equal to the amount of contributions secured
by such lien but not to exceed the reasonable value of such
property acquired by him.
For a sale or transfer of a 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 if upon petition to the Director 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 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.

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