1272                            LAWS OF MARYLAND                      [CH. 796

transfer of experience rating to those employers who acquire over
50 percent of a business, and establishing a time limit within
which a successor can claim a reduced rate.

Section 1. Be it enacted by the General Assembly of Maryland,
That Sections 8 (c) (2) and 8 (c) (5) of Article 95A of the An-
notated Code of Maryland (1964 Replacement Volume) title "Un-
employment Insurance Law," sub-title "Contributions," be and they
are hereby repealed and re-enacted, with amendments, to read as
follows:

(c) (2) No employer's rate shall be varied from 2.7 percent for
any fiscal year, except as provided in subsection (c) (4) of this
section, and unless and until his experience-rating record has been
chargeable with benefits throughout the 36-consecutive-calendar-
month period ending on the computation date (as defined in sub-
section (c) (7) of this section), and unless and until each of his
annual payrolls, as defined herein, during the four calendar years
immediately preceding the computation date for that fiscal year
equals or exceeds $200.00; except that any employer who has not
been subject to the provisions of this article for a period of time
sufficient to meet the 36-consecutive-calendar-month requirement
shall, for the fiscal year beginning July 1, 1960 and for each fiscal
year thereafter, have his rate computed on the basis of his experience
provided his account has been chargeable with benefits throughout
at least the 12-consecutive-calendar-month period ending on the
computation date, and provided further that each of his annual pay-
rolls, as defined herein, during the two calendar years immediately
preceding the computation date for that fiscal year equalled or ex-
ceeded $200.00. Provided, that if an employer has met all of the
other requirements of the law to qualify for an experience rate, but
does not have the required annual payrolls because he failed to pay
contributions due and payable, on or before the computation date,
his contribution rate for the following fiscal year shall be his earned
rate or the standard rate, whichever is the greater, provided further
that if an employer has failed to file reports due and/or has failed
to pay all contributions due and payable, as required by the pro-
visions of this article and the regulations adopted thereunder, as
of the beginning of any fiscal year, his contribution rate shall be
4.2 percent beginning with the first day of that fiscal year and there-
after until the first day of the calendar quarter following the date
on which he has filed all reports due and has paid all contributions
due, as required by this article and the regulations promulgated
pursuant thereto, at which time he shall be granted his earned con-
tribution rate.

8.

(c) (5) If an employer subject to this article shall transfer his
entire business, or a department, section, division or any other
[substantial] portion of the business which includes more than 50
percent of the average number of persons on the payroll of said em-
ployer in Maryland during the fiscal year preceding the transfer,
[which is readily definable by sale or otherwise,] to another em-
ploying unit, the Executive Director shall combine the experience-

8.