1676                           LAWS OF MARYLAND                     [CH. 776

transfer, said predecessor shall be regarded for experience rating
purposes as a new employer. Provided, that the payroll record and
benefit charges of the predecessor shall be charged to the new em-
ploying unit or employing units in the same proportion as the pay-
roll record of the unit being transferred has to the total business
of the predecessor.

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 previously
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 business 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 predecessor 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
experience of his predecessor or predecessors, as of the regular
computation 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 con-
tributions from the date of transfer by virtue of such transfer
unless he shall report the transfer and apply for a reduced rate to the
Executive Director within 120 days of the date of the transfer in a
manner and form to be prescribed by the Executive Director. In the
event the transfer is not reported within this time, the earned rate
shall be assigned to the successor as of the first day of the first
quarter after the transfer is actually reported. 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 successor employer from com-
bining 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