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ROBERT L. EHRLICH, JR., Governor
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Ch. 610
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(3) NOTWITHSTANDING § 1-101 OF THIS ARTICLE, "PERSON" MEANS, AS
DEFINED IN § 7701(A)(1) OF THE INTERNAL REVENUE CODE OF 1086, AN INDIVIDUAL,
TRUST, ESTATE, PARTNERSHIP, ASSOCIATION, COMPANY, OR CORPORATION.
(2) (4) (3) "Reorganized employer" means:
(i) an employer that alters its legal status, including changing
from a sole proprietorship or a partnership to a corporation; or
(ii) an employer that otherwise changes its trade name or business
identity while remaining under [substantially] ANY OF the same ownership.
(3) (5) (4) "Successor employer" means an employer that acquires, by
sale or otherwise, all or part of the assets, business, organization, or trade of another
employer INCLUDING THE EMPLOYER'S WORKFORCE.
(b) (1) A reorganized employer shall be liable for all contributions, interest,
and penalties owed by the employing unit before the reorganization.
(2) A reorganized employer shall continue to pay contributions at the
contribution rate of the employing unit before the reorganization from the date of the
reorganization through the next December 31.
(3) Beginning on the January 1 after the reorganization, the rate of
contribution of the reorganized employer shall be based on its experience with
payrolls and benefit charges, in combination with the experience with payrolls and
benefit charges of the employing unit before the reorganization.
(c) [(1)] If a successor employer was not an employing unit before acquiring
the assets, business, organization, or trade of a predecessor employer that is an
employing unit, AND HAS NO COMMON OWNERSHIP, MANAGEMENT, OR CONTROL
WITH THE PREDECESSOR EMPLOYER, THEN the successor employer shall be
considered a new employing unit and shall be assigned a contribution rate in
accordance with [§ 8-610.5] § 8-609 of this subtitle.
[(2)] (D) If a successor employer was an employing unit before [the
transfer of the assets, business, organization, or trade and had been assigned a
contribution rate under this subtitle] ACQUIRING THE ASSETS, BUSINESS,
ORGANIZATION, OR TRADE OF A PREDECESSOR EMPLOYER THAT IS AN EMPLOYING
UNIT, AND HAS NO COMMON OWNERSHIP, MANAGEMENT, OR CONTROL WITH THE
PREDECESSOR EMPLOYER:
[(i)] (1) the successor employer shall continue to pay contributions
at the previously assigned rate from the date of the transfer through the next
December 31; [and]
[(ii)](2) beginning on the January 1 after the transfer, AND FOR
EACH CALENDAR YEAR THEREAFTER, the rate of contribution of the successor
[employing unit for each calendar year] EMPLOYER shall be based on its experience
with payrolls and benefit charges in combination with the proportionate share of
payrolls and benefit charges [of] ACQUIRED FROM the predecessor [employing]
EMPLOYER unit; AND
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