Georgia House of Representatives - 1995/1996 Sessions

HB 132 - Unemployment benefits; liability of succeeding employers

Page Numbers - 1/ 2/ 3

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


HB 132                                            LC 18 6507






                        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 be deemed to be a
  1-19    successor to the employer from whom the business was
  1-20    acquired.  The successor shall acquire the experience
  1-21    rating record of the predecessor except as otherwise
  1-22    provided in this Code section.  If the successor is not
  1-23    already an employer at the time of the acquisition, the
  1-24    rate of contributions applicable to the predecessor shall
  1-25    continue to be applicable to the successor; provided,
  1-26    however, if the existing rate of contributions of the
  1-27    predecessor exceeds the new employer rate as specified in
  1-28    Code Section 34-8-151, the successor shall be assigned a
  1-29    new employer rate of contributions; in such event, the
  1-30    experience of the predecessor shall not be considered for
  1-31    purposes of rate calculations and the successor shall be
  1-32    otherwise treated as a new employer.  Future rates will be




                                 -1- (Index)

                                                  LC 18 6507

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

  2- 3    (b) If the successor is already an employer at the time of
  2- 4    the acquisition, the rate of contributions applicable to
  2- 5    the successor shall continue until the end of the quarter
  2- 6    in which the acquisition occurred.  The rate of
  2- 7    contributions applicable to the successor beginning on the
  2- 8    first day of the quarter following the acquisition will be
  2- 9    determined by the combined experience of the predecessor
  2-10    and successor as of the applicable computation date;
  2-11    provided, however, the experience of the predecessor shall
  2-12    not be combined with that of the successor for purposes of
  2-13    rate calculation if the predecessor's rate of
  2-14    contributions immediately preceding the acquisition
  2-15    exceeded the rate already in effect for the successor; in
  2-16    such event, the experience of the predecessor shall not be
  2-17    considered for purposes of rate calculations.

  2-18    (c) Any employing unit which acquires by any means any
  2-19    clearly identifiable or separable portion of the business
  2-20    of an employer and is an employer at the time of the
  2-21    acquisition or becomes an employer within six months from
  2-22    the end of the quarter in which the acquisition is made
  2-23    may be deemed to be a partial successor to the employer
  2-24    from whom the portion of the business was acquired.  A
  2-25    portion of the predecessor's experience rating records
  2-26    which are attributable to the portion of the business
  2-27    which was acquired may be transferred to the successor.
  2-28    Mutual consent of both parties must be given to effectuate
  2-29    the partial transfer.  The Commissioner shall prescribe by
  2-30    regulation the time frame for notification to the
  2-31    department of partial acquisitions and the method by which
  2-32    the portion of the experience rating record to be
  2-33    transferred will be determined.

  2-34    (d) If the conditions of subsection (c) of this Code
  2-35    section are met and the partial successor is not already
  2-36    an employer at the time of the acquisition, the rate of
  2-37    contributions applicable to the predecessor shall be
  2-38    applicable to the successor.  Future rates will be
  2-39    determined by combining the transferred portion of the
  2-40    predecessor's experience rating record with the
  2-41    successor's own experience rating record as of the
  2-42    applicable computation date.

  2-43    (e) If the conditions of subsection (c) of this Code
  2-44    section are met and the partial successor is already an


                                 -2- (Index)

                                                  LC 18 6507

  3- 1    employer at the time of the acquisition, the rate of
  3- 2    contributions applicable to the successor shall continue
  3- 3    until the end of the quarter in which the acquisition
  3- 4    occurred.  The rate of contributions applicable to the
  3- 5    successor beginning on the first day of the quarter
  3- 6    following the acquisition will be determined by combining
  3- 7    the transferred portion of the predecessor's experience
  3- 8    rating record with the successor's own experience rating
  3- 9    record as of the applicable computation date.

  3-10    (f) Nothing in this Code section shall be construed to
  3-11    affect liens which are created pursuant to Code Section
  3-12    34-8-167."

                         SECTION 2.

  3-13  All laws and parts of laws in conflict with this Act are
  3-14  repealed.
































                                 -3- (Index)