HB 964 Summary

• Removes the automatic requirement that unemployment experience rating be transferred to an employing unit upon transfer of an organization, trade, or business.

• Adds new provisions allowing experience rating transfer only when there is substantially common ownership, management, or control between the predecessor and successor employers, with rates recalculated effective January 1 following the transfer year.

• Establishes penalties for persons who knowingly violate or attempt to violate experience rating transfer provisions, including assignment of the highest available contribution rate for four years or a 2% penalty rate, and civil money penalties up to $5,000 for non-employers.

• Creates authority for the Department of Employment Security to identify business transfers and acquisitions to determine if primary purpose was obtaining reduced unemployment insurance contribution liability.

• Brings forward related unemployment compensation law sections (71-5-11, 71-5-361, 71-5-377, 71-5-389, and 71-5-541) for possible amendment.