3354

LAWS OF MARYLAND

Ch. 718

2. THE REORGANIZED EMPLOYER SHALL RETAIN
THE CONTRIBUTION RATE AND BE LIABLE FOR ALL CONTRIBUTIONS,
INTEREST, AND PENALTIES OWED BY THE EMPLOYING UNIT BEFORE THE
REORGANIZATION.

(II) 1. AN EMPLOYER UNIT TRANSFERRING BY SALE
OR OTHERWISE, ALL OR PART OF ITS ORGANIZATION, TRADE, BUSINESS,
OR ASSETS TO ANOTHER EMPLOYING UNIT OR EMPLOYING UNITS SHALL BE
KNOWN AS A PREDECESSOR EMPLOYER.

2.  AN EMPLOYING UNIT ACQUIRING, BY SALE
OR OTHERWISE, ALL OR PART OF THE ORGANIZATION, TRADE, BUSINESS,
OR ASSETS OF ANOTHER EMPLOYING UNIT OR EMPLOYING UNITS SHALL BE
KNOWN AS A SUCCESSOR EMPLOYER.

3.  A SUCCESSOR EMPLOYER THAT WAS NOT AN
EMPLOYER BEFORE ACQUIRING THE ORGANIZATION, TRADE, BUSINESS, OR
ASSETS OF A PREDECESSOR SHALL BE REGARDED AS A NEW EMPLOYER AND
SHALL BE ASSIGNED A CONTRIBUTION RATE IN ACCORDANCE WITH
PARAGRAPH (1) OF THIS SUBSECTION.

(III) 1. IF THE PREDECESSOR EMPLOYER DOES NOT
REMAIN IN BUSINESS AFTER THE TRANSFER OF ALL OR PART OF THE
ORGANIZATION, TRADE, BUSINESS, OR ASSETS, THE SUCCESSOR EMPLOYER
OR EMPLOYERS SHALL BE LIABLE FOR ALL CONTRIBUTIONS, INTEREST, AND
PENALTIES OWED BY THE PREDECESSOR EMPLOYER AT THE TIME OF THE
TRANSFER.

2. IF 2 OR MORE SUCCESSOR EMPLOYERS
ACQUIRE THE ORGANIZATION, TRADE, BUSINESS, OR ASSETS OF A
PREDECESSOR, THE SUCCESSOR EMPLOYERS SHALL BE LIABLE FOR THE
CONTRIBUTIONS IN THE SAME PROPORTION AS THE PAYROLL RECORD OF THE
UNIT BEING TRANSFERRED IS TO THE TOTAL BUSINESS OF THE
PREDECESSOR.

(IV)  IF A SUCCESSOR EMPLOYER WAS AN EMPLOYER
BEFORE THE TRANSFER OF THE ORGANIZATION, TRADE, BUSINESS, OR
ASSETS, AND HAD BEEN ASSIGNED A CONTRIBUTION RATE PURSUANT TO THE
PROVISIONS OF THIS SECTION, THE SUCCESSOR SHALL CONTINUE TO PAY
CONTRIBUTIONS AT THE PREVIOUSLY ASSIGNED RATE FROM THE DATE OF
TRANSFER THROUGH THE NEXT JUNE 30. FROM AND AFTER JULY 1 AFTER
THE TRANSFER, THE SUCCESSOR'S RATE OF CONTRIBUTIONS FOR EACH
FISCAL YEAR SHALL BE BASED ON ITS EXPERIENCE WITH PAYROLLS AND
BENEFIT CHARGES COMBINED WITH THE EXPERIENCE WITH PAYROLLS AND
BENEFIT CHARGES OF THE PREDECESSOR OR PREDECESSORS.

(V)  IF THE PREDECESSOR EMPLOYER TRANSFERS ONLY
PART OF THE ORGANIZATION, TRADE, BUSINESS, OR ASSETS, AND REMAINS
IN BUSINESS AND HAS BEEN ASSIGNED A CONTRIBUTION RATE PURSUANT TO
THE PROVISIONS OF THIS SECTION, THE PREDECESSOR SHALL CONTINUE TO
PAY CONTRIBUTIONS AT THE PREVIOUSLY ASSIGNED RATE.

(VI)  NO SUCCESSOR EMPLOYER OR NEW EMPLOYER
SHALL QUALIFY FOR A REDUCED RATE OF CONTRIBUTIONS FROM THE DATE
OF TRANSFER BY VIRTUE OF THAT TRANSFER UNLESS HE SHALL REPORT THE