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91_HB0653
LRB9102385WHpr
1 AN ACT to amend the Unemployment Insurance Act by
2 changing Section 2600.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Unemployment Insurance Act is amended by
6 changing Section 2600 as follows:
7 (820 ILCS 405/2600) (from Ch. 48, par. 750)
8 Sec. 2600. A. Every assignee, receiver, trustee in
9 bankruptcy, liquidator, administrator, executor, sheriff,
10 mortgagee, conditional vendor, or any other person who shall
11 sell substantially all of (iA) the business, or (iiB) the
12 stock of goods, or (iiiC) the furniture or fixtures, or (ivD)
13 the machinery and equipment, or (vE) the goodwill of any
14 employing unit shall, at least 7 days prior to the date of
15 such sale, notify the Director of the name and address of the
16 person conducting such sale, the date, the place and the
17 terms of such sale and a description of the property to be
18 sold. Any assignee, receiver, trustee in bankruptcy,
19 liquidator, administrator, executor, sheriff, mortgagee,
20 conditional vendor, or any other person who shall fail to
21 observe the requirements of this section shall be personally
22 responsible for all loss in contributions, penalties and
23 interest attributable to such failure to notify the Director
24 as herein provided.
25 B. Any employing unit which shall, outside the usual
26 course of its business, sell or transfer substantially all or
27 any one of the classes of its assets hereinabove enumerated
28 and shall cease to own said business, shall, within 10 days
29 after such sale or transfer, file such reports as the
30 Director shall prescribe and pay the contributions, interest
31 and penalties required by this Act with respect to wages for
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1 employment up to the date of said sale or transfer. The
2 purchaser or transferee shall withhold sufficient of the
3 purchase money to cover the amount of all contributions,
4 interest and penalties due and unpaid by the seller or
5 transferor or, if the payment of money is not involved, shall
6 withhold the performance of the condition that constitutes
7 the consideration for the transfer, until such time as the
8 seller shall produce a receipt from the Director showing that
9 the contributions, interest and penalties have been paid or a
10 certificate that no contributions, interest or penalties are
11 due. If the seller or transferor shall fail to pay such
12 contributions within the 10 days specified, then the
13 purchaser or transferee shall pay the money so withheld to
14 the Director of Employment Security. If such seller or
15 transferor shall fail to pay the aforementioned
16 contributions, interest or penalties within the 10 days and
17 said purchaser or transferee shall either fail to withhold
18 such purchase money as above required or fail to pay the same
19 to the Director immediately after the expiration of 10 days
20 from the date of such sale as above required, or shall fail
21 to withhold the performance of the condition that constitutes
22 the consideration for the transfer in cases where the payment
23 of money is not involved or is not the sole consideration,
24 such purchaser or transferee shall be personally liable to
25 the Director for the payment to the Director of the
26 contributions, interest and penalties incurred by the seller
27 or transferor up to the amount of the reasonable value of the
28 property acquired by him.
29 C. If the seller or transferor has filed all reports
30 prescribed by the Director and has paid the contributions,
31 interest, and penalties required by this Act with respect to
32 wages reported in those reports, the Director must issue,
33 within 21 days after the date of the payment, a certificate
34 containing an unqualified release of the purchaser or
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1 transferee from all known and unknown liabilities to the
2 Department for contributions, interest, and penalties
3 incurred by the seller or transferor. Nothing in this
4 subsection C requires the Director to release the seller or
5 transferor from contributions, interest, and penalties with
6 respect to unreported wages.
7 D. Any person who shall acquire any property or rights
8 thereto which at the time of such acquisition is subject to a
9 valid lien in favor of the Director shall be personally
10 liable to the Director for a sum equal to the amount of
11 contributions secured by such lien but not to exceed the
12 reasonable value of such property acquired by him.
13 (Source: P.A. 83-1503.)