Date of Adoption: November 17, 1999.
Purpose: To repeal WAC 192-12-072 Predecessor-successor relationship defined and replace it with WAC 192-300-050 Predecessor-successor relationship defined and 192-320-050 Requirements of partial successors -- Chapter 50.29 RCW, in accordance with Governor Locke's Executive Order 97-02.
Citation of Existing Rules Affected by this Order: Repealing WAC 192-12-072.
Statutory Authority for Adoption: RCW 50.12.010, 50.12.040.
Adopted under notice filed as WSR 99-19-132 on September 21, 1999. Note: Also filed supplemental notice to WSR 99-05-068 filed February 17, 1999, with a hearing held on March 22, 1999, at which no adverse testimony was heard against the rule.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 2, Amended 5, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 2, Amended 5, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
January 31, 2000
This section applies only to those individuals and organizations that meet the definition of an employer contained in RCW 50.04.080.
(1) Predecessor. You are a "predecessor" if, during any calendar year, you transfer any of the following to another individual or organization:
(a) All, or a portion, of your operating assets as defined in subsection (3) below; or
(b) A separate unit or branch of your trade or business.
(2) Successor. You are a "successor" if, during any calendar year, you acquire substantially all of a predecessor employer's operating assets. You are a "partial successor" if, during any calendar year, you acquire:
(a) A portion of a predecessor employer's operating assets, or
(b) A separate unit or branch of a predecessor employer's trade or business.
(3) Operating assets. "Operating assets" include the properties you use in the normal course of business operations to generate your operating income. They may include properties that are real or personal, and tangible or intangible. Examples include land, buildings, machinery, equipment, stock of goods, merchandise, fixtures, or goodwill. Employees are not operating assets.
(4) Transfer of assets. Transfers from a predecessor to a successor employer may occur by sale, lease, gift, or any legal process, except those listed in subsection (5) below.
(5) Exceptions. A predecessor-successor relationship will not exist:
(a) For the purposes of Chapter 50.24 RCW (payment of taxes), when the property is acquired through court proceedings, including bankruptcies, to enforce a lien, security interest, judgment, or repossession under a security agreement unless the court specifies otherwise;
(b) For the purposes of Chapter 50.29 RCW (experience rating), when any four consecutive quarters, one of which includes the acquisition date, pass without reportable employment by either the predecessor, successor, or a combination of both.
(1) If you are a partial successor, you must return the partial transfer of experience letter provided to you by the department within thirty days of the mailing date. Your response must indicate the percentage of operating assets transferred to you as the partial successor.
(2) If you do not return the letter within thirty days, you will keep the tax rate class that was assigned to the predecessor employer for the remainder of the rate year. However, in the following calendar year you will receive the average industry rate. You will keep this rate until you qualify for a different rate in your own right.
The following section of the Washington Administrative Code is repealed:
|WAC 192-12-072||Predecessor-successor relationship defined.|