J. MILLARD TAWES, Governor                     1273

rating records of the two employing units and shall for purposes of
rate determination transfer to the successor employer all of the pay-
roll record and the benefit charges of the predecessor. [Provided,
that the payroll record and benefit charges of the predecessor shall
be charged to the new employing unit in the same proportion as the
payroll record of the unit being transferred has to the total business
of the predecessor. ] In the event the transferror remains in business
and has employment after the date of the transfer, said transferror
shall be regarded for experience rating purposes as a new employer.

The successor employer shall be liable for the contributions for
such business from the date the transfer occurred.

If the successor is an employer at the time of the transfer, and
has been assigned a contribution rate pursuant to the provisions of
this subsection, he shall continue to pay contributions at such pre-
viously assigned rate from the date the transfer occurred through
the next June 30.

If the successor is not an employer at the time of the transfer
and acquires the business of one employer or the businesses of two
or more employers with the same rate he shall pay contributions
at the rate assigned to the predecessor employer or employers from
the date the transfer occurred through the next June 30.

If the successor is not an employer at the time of the transfer,
and simultaneously acquires the businesses of two or more employers
with different rates of contributions, his rate from the date the
transfer occurred through the next June 30 shall be a recomputed
rate based on the combined experience of his predecessors as of the
regular computation date for the fiscal year in which the transfer
occurred.

In all cases, from and after July 1 following the transfer, the
successor's rate of contribution for each fiscal year shall be based
on his experience with payrolls and benefits combined with the ex-
perience of his predecessor or predecessors, as of the regular compu-
tation date for that fiscal year. A successor employer shall be deemed
to have met the requirements of subsection (c) (2) of this section
if he or any one of his predecessors has had the experience with
benefit charges and payrolls which is required by subsection (c) (2).

No successor employer shall qualify for a reduced rate of contri-
butions by virtue of such transfer unless he shall report the transfer
and apply for a reduced rate to the Executive Director within 30
days of the date of the transfer in a manner and form to be prescribed
by the Executive Director. Nothing in this section shall be construed
as preventing the Executive Director, where a transfer has occurred
as described above, resulting in a higher rate of contribution to the
predecessor employer from combining the experience rating record
of the two employing units and for purposes of rate determination
transferring to the successor employer all of the payroll record and
benefit charges of the predecessor at any time.

Sec. 2. And be it further enacted, That this Act shall take effect
June 1, 1965.

Approved May 4, 1965.