Georgia House of Representatives - 1995/1996 Sessions

HB 131 - Unemployment benefits; liability of succeeding employers

Page Numbers - 1/ 2

Code Sections - 34-8-153

1. Bannister  77th        2. Johnson  97th           3. Breedlove  85th
4. Crawford  129th


House Comm: IndR       /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
              ----------------------------------------                                              
               House          Action         Senate                                                 
              ----------------------------------------                                              
              1/11/95  Read 1st Time                                                                
              1/12/95  Read 2nd Time                                                                
              ----------------------------------------                                              
                                                                                                    
Code Sections amended: 34-8-153                                                                     


HB 131                                            LC 18 6506






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 5 of Chapter 8 of Title 34 of the Official
  1- 2  Code of Georgia Annotated, relating to unemployment benefit
  1- 3  contributions, so as to change the liability of succeeding
  1- 4  employers; to change the computation of contribution rates
  1- 5  for such employers; to repeal conflicting laws; and for
  1- 6  other purposes.

  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1- 8  Article 5 of Chapter 8 of Title 34 of the Official Code of
  1- 9  Georgia Annotated, relating to unemployment benefit
  1-10  contributions, is amended by striking Code Section 34-8-153,
  1-11  relating to succeeding employers, and inserting in its place
  1-12  a new Code Section 34-8-153 to read as follows:

  1-13    "34-8-153. (Index)

  1-14    (a) Any corporation, partnership, individual, or other
  1-15    legal entity who acquires by purchase, merger,
  1-16    consolidation, or other means substantially all of the
  1-17    business or assets of any employer and who thereafter
  1-18    continues the acquired business shall not be deemed to be
  1-19    a successor to the employer from whom the business was
  1-20    acquired.  The successor shall not acquire the experience
  1-21    rating record of the predecessor.  If the successor is not
  1-22    already an employer at the time of the acquisition, the
  1-23    rate of contributions applicable to the predecessor shall
  1-24    continue to be applicable to the successor.  Future rates
  1-25    will be determined by the combined experience of the
  1-26    predecessor and successor as of the applicable computation
  1-27    date be computed as in the case of a new employer.

  1-28    (b) If the successor is already an employer at the time of
  1-29    the acquisition, the rate of contributions applicable to
  1-30    the successor shall continue until the end of the quarter
  1-31    in which the acquisition occurred in effect.  The rate of
  1-32    contributions applicable to the successor beginning on the
  1-33    first day of the quarter following the acquisition will be


                                 -1- (Index)

                                                  LC 18 6506

  2- 1    determined by the combined experience of the predecessor
  2- 2    and successor as of the applicable computation date.

  2- 3    (c) Any employing unit which acquires by any means any
  2- 4    clearly identifiable or separable portion of the business
  2- 5    of an employer and is an employer at the time of the
  2- 6    acquisition or becomes an employer within six months from
  2- 7    the end of the quarter in which the acquisition is made
  2- 8    may be deemed to be a partial successor to the employer
  2- 9    from whom the portion of the business was acquired.  A
  2-10    portion of the predecessor's experience rating records
  2-11    which are attributable to the portion of the business
  2-12    which was acquired may be transferred to the successor.
  2-13    Mutual consent of both parties must be given to effectuate
  2-14    the partial transfer.  The Commissioner shall prescribe by
  2-15    regulation the time frame for notification to the
  2-16    department of partial acquisitions and the method by which
  2-17    the portion of the experience rating record to be
  2-18    transferred will be determined.

  2-19    (d) If the conditions of subsection (c) of this Code
  2-20    section are met and the partial successor is not already
  2-21    an employer at the time of the acquisition, the rate of
  2-22    contributions applicable to the predecessor shall be
  2-23    applicable to the successor.  Future rates will be
  2-24    determined by combining the transferred portion of the
  2-25    predecessor's experience rating record with the
  2-26    successor's own experience rating record as of the
  2-27    applicable computation date.

  2-28    (e) If the conditions of subsection (c) of this Code
  2-29    section are met and the partial successor is already an
  2-30    employer at the time of the acquisition, the rate of
  2-31    contributions applicable to the successor shall continue
  2-32    until the end of the quarter in which the acquisition
  2-33    occurred.  The rate of contributions applicable to the
  2-34    successor beginning on the first day of the quarter
  2-35    following the acquisition will be determined by combining
  2-36    the transferred portion of the predecessor's experience
  2-37    rating record with the successor's own experience rating
  2-38    record as of the applicable computation date."

                         SECTION 2.

  2-39  All laws and parts of laws in conflict with this Act are
  2-40  repealed.





                                 -2- (Index)