Text: SF02035 Text: SF02037 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 96.7, subsection 2, paragraph b,
1 2 unnumbered paragraph 1, Code Supplement 2003, is amended to
1 3 read as follows:
1 4 If an enterprise or business, or a clearly segregable and
1 5 identifiable part of an enterprise or business, for which
1 6 contributions have been paid is sold or transferred to a
1 7 subsequent employing unit, or if one or more employing units
1 8 have been reorganized or merged into a single employing unit,
1 9 and the successor employer, having qualified as an employer as
1 10 defined in section 96.19, subsection 16, paragraph "b",
1 11 continues to operate the enterprise or business, the successor
1 12 employer shall assume the position of the predecessor employer
1 13 or employers with respect to the predecessors' payrolls,
1 14 contributions, accounts, and contribution rates to the same
1 15 extent as if no change had taken place in the ownership or
1 16 control of the enterprise or business, unless the predecessor
1 17 employer is insolvent, as defined by section 554.1201,
1 18 subsection 23, at the time of sale or transfer, in which case
1 19 the successor employer shall initially pay contributions at
1 20 the applicable rate specified in paragraph "c".
1 21 PARAGRAPH DIVIDED. However, the successor employer shall
1 22 not assume the position of the predecessor employer or
1 23 employers with respect to the predecessor employer's or
1 24 employers' payrolls, contributions, accounts, and contribution
1 25 rates which are attributable to that part of the enterprise or
1 26 business transferred, unless the successor employer applies to
1 27 the department within ninety days from the date of the partial
1 28 transfer, and the succession is approved by the predecessor
1 29 employer or employers and the department.
1 30 Sec. 2. CODE EDITOR'S DIRECTIVE. The Code editor shall
1 31 number the unnumbered paragraphs of section 96.7, subsection
1 32 1, paragraph "b", as subparagraphs, retaining the first and
1 33 second unnumbered paragraphs under the same subparagraph.
1 34 EXPLANATION
1 35 This bill relates to the unemployment contribution rate of
2 1 an employer who purchases or merges with another business.
2 2 Under current law the successor employer must assume the
2 3 contribution rate of the business which the successor is
2 4 purchasing or with which the successor is merging. The bill
2 5 provides that if the business being purchased or merged is
2 6 insolvent at the time of the purchase or merger, as defined by
2 7 the uniform commercial code, then the successor employer shall
2 8 not assume the predecessor's contribution rate but shall
2 9 initially pay contributions at the rate applicable to
2 10 employers newly subject to Code chapter 96. The bill provides
2 11 for the Code editor to number the unnumbered paragraphs of
2 12 Code section 96.7, subsection 2, paragraph "b".
2 13 LSB 5510XS 80
2 14 kk/sh/8
Text: SF02035 Text: SF02037 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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