Page:United States Statutes at Large Volume 118.djvu/1120

 118 STAT. 1090 PUBLIC LAW 108–295—AUG. 9, 2004 Public Law 108–295 108th Congress An Act To amend titles III and IV of the Social Security Act to improve the administration of unemployment taxes and benefits. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘SUTA Dumping Prevention Act of 2004’’. SEC. 2. TRANSFER OF UNEMPLOYMENT EXPERIENCE UPON TRANSFER OR ACQUISITION OF A BUSINESS. (a) IN GENERAL.—Section 303 of the Social Security Act (42 U.S.C. 503) is amended by adding at the end the following: ‘‘(k)(1) For purposes of subsection (a), the unemployment com pensation law of a State must provide— ‘‘(A) that if an employer transfers its business to another employer, and both employers are (at the time of transfer) under substantially common ownership, management, or con trol, then the unemployment experience attributable to the transferred business shall also be transferred to (and combined with the unemployment experience attributable to) the employer to whom such business is so transferred, ‘‘(B) that unemployment experience shall not, by virtue of the transfer of a business, be transferred to the person acquiring such business if— ‘‘(i) such person is not otherwise an employer at the time of such acquisition, and ‘‘(ii) the State agency finds that such person acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions, ‘‘(C) that unemployment experience shall (or shall not) be transferred in accordance with such regulations as the Sec retary of Labor may prescribe to ensure that higher rates of contributions are not avoided through the transfer or acquisi tion of a business, ‘‘(D) that meaningful civil and criminal penalties are imposed with respect to— ‘‘(i) persons that knowingly violate or attempt to violate those provisions of the State law which implement subpara graph (A) or (B) or regulations under subparagraph (C), and ‘‘(ii) persons that knowingly advise another person to violate those provisions of the State law which implement SUTA Dumping Prevention Act of 2004. Inter governmental relations. 42 USC 1305 note. Aug. 9, 2004 [H.R. 3463]

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