Page:United States Statutes at Large Volume 68 Part 1.djvu/1022

 990 Notice of payment. 60 Stat. 527. D. C. Code 4 6 303. Transfer of business; successor.

Benefit chargeability.

Successor's rate of contributions.

PUBLIC LAW 721-AUG. 31, 1954

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"The principal base period employer shall be notified of each payment of benefits to a claimant at the time of such payment." Sections (c)(7)(a) is amended to read as follows: " (a) If 25 per centum or more of the business of any employer is transferred, the transferee shall be determined a successor for the purposes of this section. "(i) If the Board is unable to get information upon which to determine whether or not 25 per centum of the business has been transferred, it may, in its discretion, make such determination based upon the quarterly payrolls of the employers involved for the last complete calendar quarter prior to the transfer and the first complete calendar quarter after such transfer. "(ii) In the event of a transfer of 25 per centum or more of the assets of a covered employer's business by any means whatever, otherwise than in the ordinary course of trade, such transfer shall be deemed a transfer of business and shall constitute the transferee a successor hereunder, unless the Board, on its own motion or on application of an interested party, finds that all of the following conditions exist: "(1) The transferee has not assumed any of the transferor's obligations; "(2) The transferee has not continued or resumed transferor's goodwill; "(3) The transferee has not continued or resumed the business of the transferor, either in the same establishment or elsewhere; and "(4) The transferee has not employed substantially the same employees as those the transferor had employed in connection with the assets transferred." Section 3(c)(7)(c) is amended to read as follows: "(c) The successor shall take over and continue the employer's account, including its reserve and all other aspects of its experience under this section, in proportion to the payroll assignable to the transferred business as determined for the purposes of this section by the Board. However, his successor shall take over only the reserve actually credited to the account of the transferor or for which the transferor has filed a claim with the Board at the date of transfer. The successor shall be secondarily liable for any amounts owed by the employer to the fund at the time of such transfer; but such liability shall be proportioned to the extent of the transfer of business and shall not exceed the value of the assets transferred." Section 3(c)(7)(d) is amended to read as follows: " (d) The benefit chargeability of a successor's account under section 3(c), if not accrued before the transfer date, shall begin to accrue on the transfer date in case the transferor's benefit chargeability was then accruing; or shall begin to accrue on the date otherwise applicable to the successor, or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor's benefit chargeability was not accruing on the transfer date. Similarly, benefits from a successor's account, if not chargeable before the transfer date, shall become chargeable on the transfer date, in case the transferor was then chargeable for benefit payments; or shall become chargeable on the date otherwise applicable to the successor or on the date otherwise applicable to the transferor, whichever is earlier, in case the transferor was chargeable for benefit payments on the transfer date." Sections (c)(7)(f) is amended to read as follows: "(f) Notwithstanding any other provisions of this section, if the successor employer was an employer subject to this Act prior to the date of transfer, his rate of contributions the remainder of the calendar

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