6413.E AMH CL CORD 2

ESB 6413 ‑ H COMM AMD ADOPTED 2-28-96

By Committee on Commerce & Labor

     On page 2, beginning on line 1, strike all of subsection (a) and insert the following:

     "(a)(i) For transfers before January 1, 1997, the contribution rate of the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year and continuing until the successor qualifies for a different rate in its own right;

(ii) For transfers on or after January 1, 1997, the contribution rate of the rate class assigned to the predecessor employer at the time of the transfer for the remainder of that rate year.  Any experience relating to the assignment of that rate class attributable to the predecessor is transferred to the successor.  Beginning with the January 1 following the transfer, the successor's contribution rate shall be based on the transferred experience of the acquired business and the successor's experience after the transfer; or"

EFFECT:  The amendment clarifies that when the "rate class" option applies, the contribution rate for successor employers who participate in business transfers before January 1, 1997, will be determined without transferring the predecessor's layoff experience.  For these employers, the tax rate class of the predecessor will determine the tax rate until the successor qualifies for a rate in its own right.