HB3474 Summary

• Amends the Unemployment Insurance Act to transfer experience rating records from a transferor to a transferee when a business is transferred and substantial common ownership, management, or control exists between the parties.

• Allows the Director to combine experience rating accounts of involved employers into a single account with a single rate if the Director determines the transfer's substantial purpose was to obtain reduced contribution liability.

• Prohibits non-employer entities from acquiring a business solely or primarily to obtain lower contribution rates, with evidence including low acquisition costs relative to operating costs, immediate business discontinuation, or hiring unrelated workers.

• Establishes penalties for violations: employers face a penalty contribution rate of 50% of their calculated rate for the violation year and following year; non-employers and advisors face $10,000 penalties per violation.

• Makes knowingly violating the contribution rate and advisory requirements a Class B misdemeanor, with corporate officers (president, secretary, treasurer) subject to individual criminal liability; effective January 1, 2018.