H.F. 2274 Section 1. Section 96.19, subsection 16, paragraph b, Code 1 2018, is amended to read as follows: 2 b. Any employing unit, whether or not an employing unit 3 at the time of acquisition, which acquired the organization, 4 trade, or business, or substantially all of the assets thereof, 5 of another employing unit which at the time of such acquisition 6 was an employer subject to this chapter , or which acquired 7 a part of the organization, trade, or business of another 8 employing unit which at the time of such acquisition was an 9 employer subject to this chapter . Provided, that such other 10 employing unit would have been an employer under paragraph “a” , 11 if such part had constituted its entire organization, trade, 12 or business. This paragraph does not apply to an acquisition 13 through a judicial repossession, foreclosure action, or 14 bankruptcy. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill provides that acquisition by an employing unit 19 of another employing unit through a judicial repossession, 20 foreclosure action, or bankruptcy shall not cause the acquiring 21 employing unit to be considered an employer for purposes of 22 Code chapter 96, relating to unemployment insurance taxes and 23 benefits, with respect to the acquired employing unit. An 24 employing unit for purposes of Code chapter 96 is an entity 25 that employs one or more individuals performing services for 26 the entity in Iowa. 27 -1- LSB 5881YH (2) 87 je/rj 1/ 1