HB109 Summary

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

• Adds specific threshold requirement of 65 percent acquisition of Alabama-located operations or substantially all assets to trigger employer status under unemployment compensation law.

• Establishes penalties for knowingly violating acquisition and rate assignment rules, including assignment to highest tax rate for four years or penalty rate of 2 percent above maximum for employers, and civil fines up to $10,000 or 10 percent of underreported amounts for non-employers.

• Allows violations to be prosecuted as Class C felonies and requires the director to establish procedures to identify transfers or acquisitions of trades or businesses.

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