1. (a) To determine if a business was acquired or transferred solely or primarily for the purpose of obtaining a more favorable rate of contributions under AS 23.20.295 or 23.20.297, the department shall use objective factors on a case by case basis, including

   1. (1) the cost of acquiring the business;
   2. (2) whether the successor employer continued essentially the same business activity as the predecessor employer;
   3. (3) how long the same business activity was continued;
   4. (4) whether the successor employer hired a substantial number of new employees for performance of duties unrelated to the business activity before the acquisition; and
   5. (5) whether there was a continuity of control of the business.

2. (b) For the purposes of this section, continuity of control will be considered to exist if one or more persons, businesses, or organizations controlling a business remain in control after an acquisition or change in form. Evidence of continuity of control includes

   1. (1) ownership of the organization conducting the business;
   2. (2) ownership of assets necessary to conduct the business;
   3. (3) security arrangements or lease arrangements covering assets necessary to conduct the business, or a contract when the ownership, stated arrangements or contract provides for or allows direction of the internal affairs or conduct of the business.

(Eff. 3/25/2007, Register 181)

Authority: AS 23.20.045, AS 23.20.295, AS 23.20.297