Chapter 513 Oregon Laws 1999

Session Law

AN ACT

HB 3141

Relating to unemployment insurance tax rate computation; creating new provisions; amending ORS 657.480; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 657.480 is amended to read:

657.480. (1) If the organization, trade or business, including the entire employing enterprise and all its incidents for all purposes of this chapter, of any employer is by purchase or otherwise transferred to an employing unit, whether or not such acquiring employing unit was an employing unit within the meaning of ORS 657.020 prior to such acquisition, the employing unit to which the transfer is made shall assume the position of such employer with respect to such employer's experience, payrolls and otherwise the same as if there had been no change in ownership and shall be required to assume and continue the experience of such employer pursuant to ORS 657.430 to 657.475 and 657.480 to 657.487. However, no employing unit to which the organization, trade or business of an employer has been transferred is entitled to a tax rate of less than the rate assigned an employer in accordance with ORS 657.435 unless and until such employing unit, based upon its experience and the experience of the organization, trade or business transferred, has throughout the 12 consecutive months preceding the computation date had its account chargeable with benefits.

(2)(a) The Director of the Employment Department shall provide by rule for partial transfer of experience and payroll when an employer has transferred an identifiable and segregable portion of an employing unit to a successor employing unit. As a condition of such partial transfer of experience and payroll, the rules shall require an application by the successor, agreement by the predecessor and such evidence as the director may prescribe of the experience and payrolls attributable to the transferred portion up to the date of transfer. The rules shall provide that the successor, if not already an employer, shall become an employer as of the date of transfer. The rules shall also provide that the experience of the transferred portion of the predecessor's account shall be removed from the experience rating record of the predecessor, and for each calendar year following the date of the transfer of the employment records, the director shall compute the rate of contribution payable by the successor on the basis of the successor's experience, if any, combined with the experience of the portion of the record transferred. The rules shall provide which rates shall be payable by the predecessor and successor employing units for the period between the date of the transfer of the employment record of the transferred unit and the first day of the next calendar year.

(b) If the director determines the transfer was made solely to qualify for a reduced tax rate or if either the predecessor or the successor employing unit is delinquent with contributions or tax reports, the director shall deny the application for partial transfer of experience and payroll.

(c) An employing unit whose application is denied may request a hearing under the provisions of ORS 657.683.

SECTION 2. The amendments to ORS 657.480 by section 1 of this 1999 Act first apply to tax years beginning after December 31, 1997.

SECTION 3. The amendments to ORS 657.480 by section 1 of this 1999 Act apply only to transfers that occur on or after January 1, 1998.

SECTION 4. (1) An employing unit may apply for a partial transfer of experience and payroll under ORS 657.480, as amended by section 1 of this 1999 Act, on or after July 1, 2000.

(2) Regarding any transfer that occurs between January 1, 1998, and the effective date of this 1999 Act, the provisions of this 1999 Act do not permit the employing unit to obtain a refund of sums paid into the Unemployment Compensation Trust Fund for wages paid between January 1, 1998, and the effective date of this 1999 Act. However, the employing unit may apply for and the Director of the Employment Department may allow a credit against future contributions equal to the amount of such sums.

SECTION 5. Notwithstanding ORS 657.812, the Employment Department may accept funds made available to this state under section 903 of the Social Security Act, as amended, for payment of administrative expenses relating to the computation of unemployment insurance tax rates.

SECTION 6. Sections 4 and 5 of this 1999 Act are added to and made a part of ORS chapter 657.

SECTION 7. Section 5 of this 1999 Act is repealed on July 1, 2001.

SECTION 8. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect on its passage.

Approved by the Governor July 7, 1999

Filed in the office of Secretary of State July 7, 1999

Effective date July 7, 1999

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