Marvin Mandel, Governor                         271

SCHEDULE OF BASIC RATE ADJUSTMENTS

When Ratio Between Fund Balance

on Computation Date and Total               Employer's Contribution

Taxable Wages for Prior Year Is                       Basic Rate Shall

A Up to 2%                                               Increase by 2.7%

B 2% but less than 2.5%                           Increase by 1.5%

C 2.5% but less than 3%                            Increase by 0.6%

D 4.5% but less than 5%                          Decrease by 0.3%

E 5% but less than 6%                              Decrease by 0.6%

F 6% but less than 7%                              Decrease by 0.9%

G 7% but less than 8%                               Decrease by 1.2%

H 8% but less than 9%                              Decrease by 1.5%

I 9% or over                                           Decrease by 1.8%

(5)    For the purpose of making any computation under this sub-
section, any amount which has been credited to Maryland's account
under Section 903 of the Social Security Act, as amended, and which
has been appropriated for expenses of administration, whether or not
withdrawn from said account, shall be excluded from the total amount
available for benefits in the fund. Further, amounts receivable by the
fund as federal reimbursements for sharable benefits under the
Federal-State Extended Unemployment Compensation Act of 1970
and all advance payments made on behalf of eligible employers elect-
ing to reimburse the fund for benefit charges in lieu of contributions
shall be treated as accounts receivable to the fund and shall be
included in the fund for computation purposes under this section.

(6)    If an employer subject to this article shall transfer to another
employing unit, or other employing units by sale or otherwise, his
entire organization, trade, or business, or substantially all the assets
thereof, and that transfer constitutes a transfer of that employer's
employing enterprise as a going concern, the Executive Director
shall combine the experience-rating records of the two employing
units and shall for purposes of rate determination transfer to the suc-
cessor employer the payroll record and the benefit charges of the
predecessor. In the event the predecessor remains in business and
has employment after the date of the transfer, the predecessor shall
be regarded for experience-rating purposes as a new employer. Pro-
vided, that the payroll record and benefit charges of the predecessor
shall be charged to the new employing unit or employing units in the
same proportion as the payroll 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 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 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.