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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-31-125 SO AS TO PROVIDE THAT FOR PURPOSES OF THE SOUTH CAROLINA EMPLOYMENT SECURITY LAW, A NEW EMPLOYING UNIT MUST NOT BE ASSIGNED A DISCRETE EMPLOYER NUMBER WHEN THERE IS AN ACQUISITION OR CHANGE IN THE FORM OF THE ORGANIZATION OF AN EXISTING BUSINESS ENTERPRISE WITH CONTINUITY OF CONTROL, AND TO PROVIDE DEFINITIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 31, Title 41 of the 1976 Code, is amended by adding:
"Section 41-31-125. (A) A new employing unit must not be assigned a discrete employer number when there is an acquisition or change in the form or organization of an existing business enterprise, or severable portion of the business enterprise, and there is a continuity of control of the business enterprise. That new employing unit shall continue to be the same employer for the purposes of this chapter as before the acquisition or change in form. As used in this section:
(1) 'Control of the business enterprise' may occur by means of ownership of the organization conducting the business enterprise, ownership of assets necessary to conduct the business enterprise, security arrangements or lease arrangements covering assets necessary to conduct the business enterprise, or a contract when the ownership, stated arrangements, or contract provide for or allow direction of the internal affairs or conduct of the business enterprise.
(2) A 'continuity of control' exists if one or more persons, entities, or other organizations controlling the business enterprise remain in control of the business enterprise after an acquisition or change in form. Evidence of continuity of control includes, but is not limited to, changes of an individual proprietorship to a corporation, partnership, limited liability company, association, or estate; a partnership to an individual proprietorship, corporation, limited liability company, association, estate, or the addition, deletion, or change of partners; a limited liability company to an individual proprietorship, partnership, corporation, association, estate, or to another limited liability company; a corporation to an individual proprietorship, partnership, limited liability company, association, estate, or to another corporation or from any form to another form.
(B) This section does not modify the provisions of Article 3 of this chapter."
SECTION 2. This act takes effect upon approval by the Governor.
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