HB426 Summary

• Amends Section 25-4-8 of the Code of Alabama 1975 to redefine "employing unit" under unemployment compensation law to include employers acquiring at least 65 percent of an organization, trade, employees, or business located in Alabama.

• Modifies subsections (4) and (5) of the employer definition to add "at least 65 percent" threshold language and specify that the acquisition must be of operations "located in the State of Alabama."

• Establishes penalties for violations including assignment of highest tax rates for four years (or 2% above maximum rate if already at highest), and civil penalties up to $10,000 or 10% of underreported amounts for non-employers.

• Defines "knowingly" as having actual knowledge or acting with deliberate ignorance or reckless disregard, and includes the employer's workforce within the definition of "trade or business."

• Becomes effective on the first day of the third month following passage and approval by the Governor.