3352

LAWS OF MARYLAND

Ch. 718

employers; deleting certain provisions of current law; and
generally relating to contribution rates under the
unemployment insurance tax law.

BY repealing

Article 95A - Unemployment Insurance Law

Section 8(c)(6)

Annotated Code of Maryland

(1979 Replacement Volume and 1983 Supplement)

BY adding to

Article 95A - Unemployment Insurance Law

Section 8(c)(6)

Annotated Code of Maryland

(1979 Replacement Volume and 1983 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 95A - Unemployment Insurance Law

8.

(c) Each employer shall pay contributions with respect to
employment during any fiscal year prior to July 1, 1964, as
required by this article prior to July 1, 1964, and each employer
shall pay contributions at the standard rate of two and
seven-tenths (2.7) percent of wages paid by him during the fiscal
year beginning July 1, 1964, and during each fiscal year
thereafter with respect to employment occurring after June 30,
1964, except as otherwise provided herein.

[(6) If an employing unit alters its legal status,
such as by changing from a sole proprietorship or a partnership
to a corporation, or if an employing unit otherwise changes its
trade name or business identity and the enterprise remains under
substantially the same ownership, the Executive Director shall
combine the experience-rating records of the two employing units
and shall for purposes of rate determination transfer to the
successor 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. Provided, 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.