SECTIONS 1731-1736 - California Statutes

UNEMPLOYMENT INSURANCE CODE

SECTION 1731-1736

1731. Any person or employing unit that acquires the organization,
trade or business, or substantially all the assets thereof, of an
employer shall withhold in trust money or other property sufficient
in amount or value to cover the amount of any contributions, interest
and penalties due or unpaid from such employer until such employer
produces a certificate from the department stating that no
contributions, interest or penalties are due. If such employer does
not produce such certificate, the acquiring person or employing unit
shall pay the amount or the value of the property so withheld to the
department at the time of such acquisition.

1732. (a) Upon request of either of the parties to an acquisition
as described in Section 1731, the department shall within 30 days
issue a certificate, or a statement showing the amount of any
contributions, interest and penalties claimed to be due. The failure
to issue a certificate or a statement within the period of 30 days
shall be deemed equivalent to the issuance of a certificate stating
that no contributions, interest or penalties are due.
(b) If the department issues a statement showing the amount of
contributions, interest and penalties claimed to be due, the amount
stated therein shall be withheld and paid to the department such
amount, however, not to exceed the purchase price. The issuance of
any certificate stating that no contributions, interest and penalties
are due, or the failure to issue such certificate or statement
within the period of 30 days shall not release the employer from
liability on account of any contributions, interest and penalties
then or thereafter determined to be due from him, but shall release
the acquiring person or employing unit from any further liability on
account of any such contributions, interest and penalties.

1733. Any person or employing unit that fails to withhold money or
other property or fails to pay the amount or value of the property
withheld as provided in Sections 1731 and 1732 shall be personally
liable for the payment of the contributions, interest and penalties
due from the employer up to but not exceeding the purchase price. The
director shall assess such amount to the acquiring person or
employing unit and shall give a written notice of the assessment
pursuant to Section 1206. Sections 1135, 1136, 1137, 1221, 1222,
1223, and 1224 apply to assessments under this section.

1734. The director shall have all of the remedies for collection
against any person or employing unit that acquires the organization,
trade or business, or substantially all the assets thereof of an
employer as are provided by this division against any employer liable
for contributions, interest and penalties due. The time within which
the obligation may be enforced against the person or employing unit
acquiring the organization, trade or business, or substantially all
the assets thereof of an employer shall start to run with the day the
assessment against such person or employing unit becomes final.

1735. Any officer, major stockholder, or other person, having
charge of the affairs of a corporate, association, registered limited
liability partnership or foreign limited liability partnership, or
limited liability company employing unit, who willfully fails to pay
contributions required by this division or withholdings required by
Division 6 (commencing with Section 13000) on the date on which they
become delinquent, shall be personally liable for the amount of the
contributions, withholdings, penalties, and interest due and unpaid
by such employing unit. The director may assess such officer,
stockholder, or other person for the amount of such contributions,
withholdings, penalties, and interest. The provisions of Article 8
(commencing with Section 1126) and Article 9 (commencing with Section
1176) of Chapter 4 of Part 1 apply to assessments made pursuant to
this section. Sections 1221, 1222, 1223, and 1224 shall apply to
assessments made pursuant to this section. With respect to such
officer, stockholder, or other person, the director shall have all
the collection remedies set forth in this chapter.

1735.1. (a) An individual who has been assessed under the
provisions of Section 1128.1, or any officer, major stockholder, or
other person having charge of the affairs of a business entity that
has been assessed under the provisions of that section, shall be
personally liable for the amount of contributions, withholdings,
penalties, and interest due and unpaid by the employer, other than
those under subdivisions (a) and (b) of Section 1128, for whom money
was exchanged as described in Section 1128.1. The director may assess
that person for the amount of contributions, withholdings, all
penalties other than those under Section 1128, and interest. The
provisions of Article 8 (commencing with Section 1126) and Article 9
(commencing with Section 1176) of Chapter 4 of Part 1 shall apply to
assessments made pursuant to this section. Sections 1221, 1222, 1223,
and 1224 shall apply to assessments made pursuant to this section.
With respect to that person, the director shall have all the
collection remedies set forth in this chapter.
(b) For purposes of this section, "business entity" means a
partnership, corporation, association, limited liability company, or
Indian tribe (as described by subsection (u) of Section 3306 of Title
26 of the United States Code).

1736. In addition to other penalties prescribed in this division,
failure to file the notice required by Section 1090 shall cause the
assignee, receiver, trustee in bankruptcy, or other representative of
an insolvent employing unit, or the administrator or executor of the
estate of the deceased employing unit to be personally responsible
for all loss in contributions, penalties and interest attributable to
such failure. This liability may be enforced by civil action in the
name of the State of California against the assignee, receiver,
trustee in bankruptcy, or other representative of the insolvent
employing unit, and against the administrator or executor of the
deceased employing unit.