2722

LAWS OF MARYLAND

Ch. 504

predecessors has had the experience with benefit charges and
payrolls which is required by subsection (c)(3).

No successor employer shall qualify for a reduced rate of
contributions from the date of transfer by virtue of that
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 combining the
experience-rating record of the two employing units and for
purposes of rate determination transferring to the successor
employer the payroll record and benefit charges of the
predecessor at any time.

(7)  An employer who transfers all or part of his
operations from another state to this State and has had, in that
other state, for a period of not less than three (3) years
immediately preceding the transfer, the experience with benefit
charges and payrolls which is required by subsection (c)(3) shall
be deemed to have met the requirements of that subsection for
variance from the standard rate, provided the employer shall make
application to the Executive Director for that treatment
effective upon the transfer. The application shall include such
information as will enable the Executive Director to establish an
employer's benefit ratio for that employer in the manner
prescribed by subsection (c)(4) as if the benefit charges and
payrolls in another state had been paid in this State. The
application shall also be verified in whatever manner as is
satisfactory to the Executive Director.

(8)   In the event that it is determined by the
Executive Director that an individual has received benefits which
are recoverable by the Executive Director under the terms of §
17(d) or 17(e) of this article, the benefits so received shall
not, for the purposes of the experience-rating provisions of this
subsection, be charged against the account of any employer in any
computation made for any fiscal year for which the computation
date occurs after the date of said determination by the Executive
Director, provided no benefit charges shall be removed from the
employer's account if the payment of such benefits was made as a
direct or indirect result of the employer's failure to provide
information to the Executive Director as required by this article
or the regulations promulgated pursuant thereto.

Benefits paid to claimants based upon wages earned in a
work-release program designed to give an inmate of a correctional
institution an opportunity to work while serving a term of
incarceration shall be treated as benefits for all purposes under
this article except that benefits resulting from unemployment due