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Session of 2026
HOUSE BILL No. 2764
By Committee on Commerce, Labor and Economic Development
Requested by Representative Tarwater
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AN ACT concerning labor and employment; relating to the employment
security law; prohibiting amendments, suspensions or repeals of
employment security law provisions through budget provisos,
appropriations bills or temporary fiscal measures without following
specified review procedures; authorizing the secretary of labor to
recognize and approve employer-sponsored supplemental
unemployment benefit plans if such plans meet specific criteria,
including compliance with federal guidance and being employer-
funded; ensuring that supplemental unemployment benefit plans do not
disqualify employees from state unemployment benefits; requiring the
secretary to maintain a registry of authorized plans and monitor the
impact of such plans on the employment security trust fund; updating
terminology to reflect modern labor arrangements; reorganizing
sections for improved readability and compliance; enhancing federal
conformity by incorporating references to federal laws and guidelines;
integrating supplemental unemployment benefit plans into the current
statutory framework; updating the criteria for determining suitable
work and disqualification conditions for unemployment benefits;
clarifying procedures for filing claims, determining eligibility and
handling appeals and emphasizing electronic submissions and secure
online portals for employer responses; specifying timelines for appeals
and decisions; updating the structure and responsibilities of the
employment security board of review; amending K.S.A. 44-701, 44-
702, 44-704a, 44-704b, 44-710d, 44-710e, 44-710f, 44-710i, 44-711,
44-712, 44-713, 44-713a, 44-714, 44-715, 44-716, 44-716a, 44-718,
44-719, 44-720, 44-721, 44-722, 44-723, 44-724, 44-725, 44-727, 44-
758, 44-759, 44-760, 44-765, 44-766, 44-767, 44-768, 44-769, 44-770,
44-773 and 44-777 and K.S.A. 2025 Supp. 44-703, 44-704, 44-705, 44-
706, 44-709, 44-709b, 44-710, 44-710a, 44-710b, 44-717, 44-757, 44-
772, 44-774, 44-775 and 79-3234 and repealing the existing sections;
also repealing K.S.A. 44-706a, 44-761, 44-762, 44-763 and 44-764.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) The legislature intends that all provisions of the
Kansas employment security law be administered with transparency,
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consistency and fiscal integrity with an emphasis on long-term
perspectives. The legislature finds that, to facilitate this intent,
amendments by the legislature to employment security law benefit
eligibility, definitions, benefit duration or administrative procedures shall
be made only upon review and consideration by the legislature pursuant to
subsection (c). The legislature further finds that employment security law
eligibility, definitions, benefit duration or administrative procedures shall
not be amended, suspended or repealed by budget provisos, appropriations
bills or temporary fiscal measures, unless the procedures for review and
consideration provided by subsection (c) have been followed with respect
to such action by a committee responsible for labor, budget or economic
development policy of both chambers. Alternatively, the legislature finds
that the intent of this act will be met upon consideration, at a hearing and
prior to taking action, of the record of such a review and consideration
made by another committee responsible for labor, budget or economic
development policy of the same chamber.
(b) Except upon review and consideration as provided by subsections
(a) and (c), no provision of any budget provisos, appropriations bills or
temporary fiscal measures shall:
(1) Amend the definition of "unemployment," "employment,"
"employer," "employee" or any other term defined in K.S.A. 44-703, and
amendments thereto, for purposes of the employment security law;
(2) expand, limit, restrict or modify eligibility requirements for
unemployment insurance benefits, including, but not limited to, duration
of benefits, work search requirements, temporary unemployment status,
waivers or exemptions for specific employee groups or reemployment
program participation;
(3) create special classifications, selective exemptions or exceptions
to any provisions of the employment security law for specific groups of
employees, employers or industries, including, but not limited to, such
groups that are subject to collective bargaining agreements; or
(4) alter any provision affecting the administration, funding, solvency
or disbursement criteria of the employment security trust fund.
(c) Any proposed change to unemployment compensation eligibility,
benefit structure or program administration pursuant to subsection (b) shall
be enacted through an amendment to the employment security law made
upon a thorough and comprehensive legislative review, including, at a
minimum:
(1) A formal actuarial impact analysis to assess potential effects on
the unemployment insurance trust fund;
(2) opportunity for public comment, with adequate notice and
opportunity for stakeholder input from employers, labor representatives,
economists and the public;
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(3) hearings by the standing committees of both chambers responsible
for labor, budget or economic development policy, with opportunity for
testimony by stakeholders, including employers, labor organizations,
workforce development representatives and employment security law
experts; and
(4) legislative debate and vote in accordance with the full customary
legislative process for amending statutory law.
(d) In the event of a conflict between a provision of the substantive
employment security law and any budget provision or appropriations act
proviso that is enacted without compliance with this section, the
substantive employment security law shall govern.
(e) This section shall be a part of and supplemental to the
employment security law.
New Sec. 2. (a) It is the intent of the legislature to support
responsible workforce transition strategies during periods of temporary
layoffs while safeguarding the fiscal integrity of the unemployment
insurance system. Employer-sponsored supplemental unemployment
benefit plans meeting the requirements of this section, as determined by
the secretary of labor and accordingly authorized by the secretary, shall
serve as a voluntary, employer-funded mechanism to supplement state
unemployment compensation benefits.
(b) Employers may establish supplemental unemployment benefit
plans to provide income support to employees who are involuntarily laid
off due to lack of work and eligible for state unemployment insurance
benefits. The secretary shall recognize and authorize such plans if, in the
secretary's judgment, such plans:
(1) Are properly documented in writing and filed with the secretary
prior to implementation;
(2) comply with applicable federal guidance, including United States
internal revenue service rulings 56-249 and 90-72, and satisfy relevant
requirements of 26 U.S.C. § 501(c)(17) concerning trust arrangements for
supplemental unemployment compensation benefits;
(3) are funded entirely by the employer, and the supplemental
unemployment benefits do not constitute wages for purposes of state
unemployment insurance calculations;
(4) do not disqualify laid-off employees from receiving state
unemployment insurance benefits;
(5) provide supplemental unemployment benefits to laid-off
employees in periodic payments that align with the state unemployment
insurance benefit schedule. Lump-sum distributions shall not qualify as
valid supplemental unemployment plan payments; and
(6) terminate supplemental unemployment benefit payments when
laid-off employees become reemployed, are no longer eligible for state
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HB 2764 4
unemployment benefits or otherwise fail to meet eligibility criteria
established by the plan or rules and regulations adopted by the secretary
pursuant to subsection (g).
(c) (1) Notwithstanding any other provision of the employment
security law, laid-off employees shall not be denied unemployment
insurance benefits or have such benefits reduced, offset or otherwise
limited solely because such employees are receiving payments from
employer-sponsored supplemental unemployment benefit plans if, as
determined by the secretary, such plans:
(A) Meet the requirements of subsection (b), including that such
plans:
(i) Are funded entirely by the employer;
(ii) are provided only to employees who are unemployed due to lack
of work and are eligible for state benefits under the employment security
law;
(iii) supplement rather than replace state unemployment
compensation; and
(iv) are not paid in a lump sum or in lieu of wages; and
(B) comply with the criteria set forth in 26 U.S.C. § 3306(b)(9),
United States internal revenue service revenue rulings 56-249 and 90-72
and applicable federal guidance.
(2) Payments made pursuant to supplemental unemployment benefit
plans meeting the requirements of subsections (b) and (c), as determined
by the secretary, shall not be considered wages or remuneration for
purposes of eligibility or disqualification for state unemployment
insurance benefits, the waiting week or the calculation of weekly benefit
amounts pursuant to the employment security law.
(3) This subsection shall be construed to be in conformity with 26
U.S.C. § 3304(a)(4) and 42 U.S.C. § 503(a) and interpreted in accordance
with United States department of labor conformity guidance.
(d) The secretary shall maintain and publish a registry on the
secretary's website of authorized supplemental unemployment benefit
plans submitted by employers to the secretary and may offer technical
guidance to assist employers in developing compliant plans.
(e) (1) The secretary shall monitor the interaction between
supplemental unemployment benefit plans and state unemployment
insurance claims to ensure continued solvency of the employment security
trust fund.
(2) For the fiscal year beginning on July 1, 2025, and each fiscal year
thereafter, the secretary shall publish the following information for the
fiscal year on the secretary's website on or before December 1 following
the end of such fiscal year, in conjunction with the information required to
be published on such website by K.S.A. 44-774, and amendments thereto.
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Additionally, the secretary shall report such information to the legislature
at the beginning of each next succeeding legislative session. Such
information shall include:
(A) The number of active supplemental unemployment benefit plans
on file;
(B) aggregate claimant data for laid-off employees concurrently
receiving supplemental unemployment benefits and state unemployment
insurance benefits; and
(C) any actuarial analysis or findings concerning the impact of
supplemental unemployment benefit plan usage on the employment
security trust fund.
(3) If the secretary finds that supplemental unemployment benefit
plan usage materially increases unemployment insurance costs that may
affect the employment security trust fund for all other rated employers, the
secretary shall advise the legislature in the report submitted pursuant to
paragraph (2) and recommend modifications to program regulations or
propose statutory amendments to mitigate adverse impacts.
(f) This section shall apply uniformly to all employers and
employees, regardless of union affiliation, industry classification or
business size. The secretary and the employer shall administer
supplemental unemployment benefit plans without discrimination and
shall not provide disproportionate or preferential treatment to officers,
executives or specific classes of employees except as may be required by
federal law.
(g) The secretary shall adopt rules and regulations as necessary to
implement and administer this section, including, but not limited to:
(1) Procedures for submission, review and approval of supplemental
unemployment benefit plans;
(2) employer reporting and documentation requirements;
(3) oversight and audit mechanisms to ensure plan compliance and
fiscal responsibility; and
(4) alignment with federal standards. All rules and regulations
adopted by the secretary pursuant to this section shall conform to the
requirements of 26 U.S.C. § 3304, 42 U.S.C. § 503 and any conformity
guidance issued by the United States department of labor that is necessary
to maintain state certification and eligibility for federal tax offset and
administrative funding.
(h) This section and all other provisions of the employment security
law relating to supplemental unemployment insurance plans shall be
liberally construed to promote transparency, solvency and fair access to
unemployment compensation. The secretary shall ensure that all policies,
procedures and enforcement actions related to the recognition, operation
and administration of supplemental unemployment benefit plans are
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HB 2764 6
consistent with federal law and guidance issued by the United States
department of labor, including all conformity and compliance criteria that
are necessary to maintain the state's certification under 26 U.S.C. § 3304.
(i) This section shall be a part of and supplemental to the employment
security law.
Sec. 3. K.S.A. 44-701 is hereby amended to read as follows: 44-701.
This act K.S.A. 44-701 through 44-777, and amendments thereto, and
sections 1 and 2, and amendments thereto, shall be known and may be
cited as the "employment security law."
Sec. 4. K.S.A. 44-702 is hereby amended to read as follows: 44-702.
(a) As a guide to the interpretation and application of this act the
employment security law, the public policy of this state is declared to be as
follows:
(1) Economic insecurity , due to caused by involuntary
unemployment, is poses a serious menace threat to the health, morals,
well-being and welfare of the people of this state. Involuntary
unemployment is therefore a subject economic stability of individuals,
families and communities throughout Kansas. Unemployment is a matter
of general interest and concern that requires appropriate action by the
legislature requiring proactive legislative measures to reduce its impact
and prevent its spread and.
(2) (A) The legislature finds that achieving economic security for
Kansans includes the establishment of a compulsory unemployment
insurance system. The primary goals of this system are to lighten its
burden that now so often falls with crushing force upon the:
(i) Provide financial stability to unemployed worker and such
worker's family. The achievement of social security requires protection
against this greatest hazard of our economic life. This can be provided
workers;
(ii) stabilize the economy during downturns by maintaining consumer
purchasing power; and
(iii) encourage reemployment through active job search requirements
and coordinated workforce services.
(B) These goals are supported by encouraging employers to provide
more stable employment and by requiring the systematic accumulation of
funds unemployment insurance reserves, funded through employer
contributions during periods of active employment. Such reserves are used
to provide benefits for temporary wage replacement for eligible
individuals during periods of unemployment, thus maintaining purchasing
power and limiting the serious social consequences of poor-relief
joblessness, helping to sustain economic activity and reduce reliance on
public assistance programs. The legislature, therefore, declares that in its
considered judgment the public good and the general welfare of the
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HB 2764 7
citizens of this state require the enactment of this measure,
(b) The employment security law is enacted under the police powers
of the state, for to promote the compulsory setting aside general welfare of
the citizens of the state of Kansas and to ensure the responsible and
equitable administration of unemployment reserves to be used for the
benefit of persons unemployed compensation benefits.
(c) The state of Kansas is committed to maintaining and
strengthening equitable access to the unemployment compensation
insurance system, including through fair and timely processing of both
initial and continuing claims. All persons individuals and employers are
entitled to a neutral, transparent and impartial interpretation of the
employment security law.
(d) The administration of the employment security law shall align
with applicable federal standards and shall be coordinated with state
workforce development initiatives to support timely reemployment,
economic resilience and long-term public confidence in the unemployment
insurance system.
(e) (1) The administration and interpretation of the employment
security law shall remain in conformity with applicable federal laws and
guidance to ensure continued federal certification of Kansas'
unemployment compensation program, including, but not limited to:
(A) 20 C.F .R. part 603, which concerns confidentiality and disclosure
of unemployment compensation information;
(B) 20 C.F .R. part 625, which concerns disaster unemployment
assistance;
(C) 2 C.F .R. part 200, which concerns uniform administrative
requirements for federal grants; and
(D) the edition in force of the employment and training
administration handbook No. 401, which concerns unemployment
insurance state quality service plan and reporting requirements.
(2) These references shall guide state agency implementation,
recordkeeping and benefit administration to ensure continued federal
certification and funding eligibility.
Sec. 5. K.S.A. 2025 Supp. 44-703 is hereby amended to read as
follows: 44-703. As used in this act the employment security law , unless
the context clearly requires otherwise:
(a) (1) "Annual payroll" means the total amount of wages paid or
payable by an employer during the calendar year.
(2) "Average annual payroll" means the average of the annual
payrolls of any employer for the last three calendar years immediately
preceding the computation date as hereinafter defined if the employer has
been continuously subject to contributions during those three calendar
years and has paid some wages for employment during each of such years.
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In determining contribution rates for the calendar year, if an employer has
not been continuously subject to contribution for the three calendar years
immediately preceding the computation date but has paid wages subject to
contributions during only the two calendar years immediately preceding
the computation date, such employer's "average annual payroll" shall be
the average of the payrolls for those two calendar years.
(3) "Total wages" means the total amount of wages paid or payable
by an employer during the calendar year, including that part of
remuneration in excess of the limitation prescribed as provided in
subsection (o)(1).
(b) "Base period" means the first four of the last five completed
calendar quarters immediately preceding the first day of an individual's
benefit year, except that the base period in respect to combined wage
claims means the base period as defined in the law of the paying state.
(1) If an individual lacks sufficient base period wages in order to
establish a benefit year in the manner set forth above and satisfies the
requirements of subsection (hh) and K.S.A. 44-705(g), and amendments
thereto, the claimant shall have an alternative base period substituted for
the current base period so as not to prevent establishment of a valid claim.
For the purposes of this subsection, "alternative base period" means the
last four completed quarters immediately preceding the date the qualifying
injury occurred. In the event the wages in the alternative base period have
been used on a prior claim, then they shall be excluded from the new
alternative base period.
(2) For the purposes of this chapter, the term "base period" includes
the alternative base period.
(c) (1) "Benefits" means the money payments payable to an
individual, as provided in this act, with respect to such individual's
unemployment.
(2) "Regular benefits" means benefits payable to an individual under
this act or under any other state law, including benefits payable to federal
civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85,
other than extended benefits.
(d) "Benefit year" with respect to any individual, means the period
beginning with the Sunday of the first week for which such individual files
a valid claim for benefits, and such benefit year shall continue for one full
year. In the case of a combined wage claim, the benefit year shall be the
benefit year of the paying state. Following the termination of a benefit
year, a subsequent benefit year shall commence on the Sunday of the first
week with respect to which an individual next files a claim for benefits.
Any claim for benefits made in accordance with K.S.A. 44-709(a), and
amendments thereto, shall be deemed to be a "valid claim" for the
purposes of this subsection if the individual has been paid wages for
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HB 2764 9
insured work as required under K.S.A. 44-705(e), and amendments
thereto.
(e) "Commissioner" or "secretary" means the secretary of labor.
(f) (1) "Contributions" means the money payments to the state
employment security fund that are required to be made by employers on
account of employment under K.S.A. 44-710, and amendments thereto,
and voluntary payments made by employers pursuant to such statute.
(2) "Payments in lieu of contributions" means the money payments to
the state employment security fund from employers that are required to
make or that elect to make such payments under K.S.A. 44-710(e), and
amendments thereto.
(g) "Employing unit" means any individual or type of organization,
including any partnership, association, limited liability company, agency
or department of the state of Kansas and political subdivisions thereof,
trust, estate, joint-stock company, insurance company or corporation,
whether domestic or foreign including nonprofit corporations, or the
receiver, trustee in bankruptcy, trustee or successor thereof, or the legal
representatives of a deceased person, that has in its employ one or more
individuals performing services for it within this state. All individuals
performing services within this state for any employing unit that maintains
two or more separate establishments within this state shall be deemed to be
employed by a single employing unit for all the purposes of this act. Each
individual employed to perform or to assist in performing the work of any
agent or employee of an employing unit shall be deemed to be employed
by such employing unit for all the purposes of this act, whether such
individual was hired or paid directly by such employing unit or by such
agent or employee, provided the employing unit had actual or constructive
knowledge of the employment.
(h) "Employer" means:
(1) (A) Any employing unit for which agricultural labor as defined in
subsection (w) is performed and during any calendar quarter in either the
current or preceding calendar year paid remuneration in cash of $20,000 or
more to individuals employed in agricultural labor or for some portion of a
day in each of 20 different calendar weeks, whether or not such weeks
were consecutive, in either the current or the preceding calendar year,
employed in agricultural labor 10 or more individuals, regardless of
whether they were employed at the same moment of time.
(B) For the purpose of this subsection (h)(1), any individual who is a
member of a crew furnished by a crew leader to perform services in
agricultural labor for any other person shall be treated as an employee of
such crew leader if:
(i) Such crew leader holds a valid certificate of registration under the
federal migrant and seasonal agricultural workers protection act or
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substantially all the members of such crew operate or maintain tractors,
mechanized harvesting or cropdusting equipment or any other mechanized
equipment, that is provided by such crew leader; and
(ii) such individual is not in the employment of such other person
within the meaning of subsection (i).
(C) For the purpose of this subsection (h)(1), in the case of any
individual who is furnished by a crew leader to perform services in
agricultural labor for any other person and who is not treated as an
employee of such crew leader:
(i) Such other person and not the crew leader shall be treated as the
employer of such individual; and
(ii) such other person shall be treated as having paid cash
remuneration to such individual in an amount equal to the amount of cash
remuneration paid to such individual by the crew leader, either on the crew
leader's own behalf or on behalf of such other person, for the services in
agricultural labor performed for such other person.
(D) For the purposes of this subsection (h)(1) "crew leader" means an
individual who:
(i) Furnishes individuals to perform services in agricultural labor for
any other person;
(ii) pays, either on such individual's own behalf or on behalf of such
other person, the individuals so furnished by such individual for the
services in agricultural labor performed by them; and
(iii) has not entered into a written agreement with such other person
under which such individual is designated as an employee of such other
person.
(2) (A) Any employing unit that for calendar year 2007 and each
calendar year thereafter: (i) In any calendar quarter in either the current or
preceding calendar year paid for services in employment wages of $1,500
or more; (ii) for some portion of a day in each of 20 different calendar
weeks, whether or not such weeks were consecutive, in either the current
or preceding calendar year, had in employment at least one individual,
whether or not the same individual was in employment in each such day;
or (iii) elects to have an unemployment tax account established at the time
of initial registration in accordance with K.S.A. 44-711(c), and
amendments thereto.
(B) Employment of individuals to perform domestic service or
agricultural labor and wages paid for such service or labor shall not be
considered in determining whether an employing unit meets the criteria of
this subsection (h)(2).
(3) Any employing unit for which service is employment as defined
in subsection (i)(3)(E).
(4) (A) Any employing unit, whether or not it is an employing unit
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under subsection (g), that acquires or in any manner succeeds to: (i)
Substantially all of the employing enterprises, organization, trade or
business; or (ii) substantially all the assets, of another employing unit that
at the time of such acquisition was an employer subject to this act;
(B) any employing unit that is controlled substantially, either directly
or indirectly by legally enforceable means or otherwise, by the same
interest or interests, whether or not such interest or interests are an
employing unit under subsection (g), acquires or in any manner succeeds
to a portion of an employer's annual payroll, is less than 100% of such
employer's annual payroll, and intends to continue the acquired portion as
a going business.
(5) Any employing unit that paid cash remuneration of $1,000 or
more in any calendar quarter in the current or preceding calendar year to
individuals employed in domestic service as defined in subsection (aa).
(6) Any employing unit that having become an employer under this
subsection (h) has not, under K.S.A. 44-711(b), and amendments thereto,
ceased to be an employer subject to this act.
(7) Any employing unit that has elected to become fully subject to
this act in accordance with K.S.A. 44-711(c), and amendments thereto.
(8) Any employing unit not an employer by reason of any other
paragraph of this subsection (h), for which within either the current or
preceding calendar year services in employment are or were performed
with respect to which such employing unit is liable for any federal tax
against which credit may be taken for contributions required to be paid
into a state unemployment compensation fund; or that, as a condition for
approval of this act for full tax credit against the tax imposed by the
federal unemployment tax act, is required, pursuant to such act, to be an
"employer" under this act.
(9) Any employing unit described in section 501(c)(3) of the federal
internal revenue code of 1986 that is exempt from income tax under
section 501(a) of the code that had four or more individuals in
employment for some portion of a day in each of 20 different weeks,
whether or not such weeks were consecutive, within either the current or
preceding calendar year, regardless of whether they were employed at the
same moment of time.
(i) "Employment" means:
(1) Subject to the other provisions of this subsection, service,
including services in interstate commerce, performed by:
(A) Any active officer of a corporation;
(B) any individual who, under the usual common law rules applicable
in determining the employer-employee relationship, has the status of an
employee subject to the provisions of subsection (i)(3)(D); or
(C) any individual other than an individual who is an employee under
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subsection (i)(1)(A) or subsection (i)(1)(B) above who performs services
for remuneration for any person:
(i) As an agent-driver or commission-driver engaged in distributing
meat products, vegetable products, fruit products, bakery products,
beverages, other than milk, or laundry or dry-cleaning services, for such
individual's principal; or
(ii) as a traveling or city salesman, other than as an agent-driver or
commission-driver, engaged upon a full-time basis in the solicitation on
behalf of, and the transmission to, a principal, except for side-line sales
activities on behalf of some other person, of orders from wholesalers,
retailers, contractors, or operators of hotels, restaurants, or other similar
establishments for merchandise for resale or supplies for use in their
business operations.
For purposes of subsection (i)(1)(C), the term "employment" includes
services described in paragraphs (i) and (ii) above only if:
(a) The contract of service contemplates that substantially all of the
services are to be performed personally by such individual;
(b) the individual does not have a substantial investment in facilities
used in connection with the performance of the services, other than in
facilities for transportation; and
(c) the services are not in the nature of a single transaction that is not
part of a continuing relationship with the person for whom the services are
performed.
(2) The term "employment" includes an individual's entire service
within the United States, even though performed entirely outside this state
if:
(A) The service is not localized in any state;
(B) the individual is one of a class of employees who are required to
travel outside this state in performance of their duties; and
(C) the individual's base of operations is in this state, or if there is no
base of operations, then the place where service is directed or controlled is
in this state.
(3) The term "employment" also includes:
(A) Services performed within this state but not covered by the
provisions of subsection (i)(1) or subsection (i)(2) shall be deemed to be
employment subject to this act if contributions are not required and paid
with respect to such services under an unemployment compensation law of
any other state or of the federal government.
(B) Services performed entirely without this state, with respect to no
part of which contributions are required and paid under an unemployment
compensation law of any other state or of the federal government, shall be
deemed to be employment subject to this act only if the individual
performing such services is a resident of this state and the secretary
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HB 2764 13
approved the election of the employing unit for whom such services are
performed that the entire service of such individual shall be deemed to be
employment subject to this act.
(C) Services covered by an arrangement pursuant to K.S.A. 44-
714(j), and amendments thereto, between the secretary and the agency
charged with the administration of any other state or federal
unemployment compensation law, pursuant to which all services
performed by an individual for an employing unit are deemed to be
performed entirely within this state, shall be deemed to be employment if
the secretary has approved an election of the employing unit for whom
such services are performed, pursuant to which the entire service of such
individual during the period covered by such election is deemed to be
insured work.
(D) Services performed by an individual for wages or under any
contract of hire shall be deemed to be employment subject to this act if the
business for which activities of the individual are performed retains not
only the right to control the end result of the activities performed, but the
manner and means by which the end result is accomplished.
(E) Services performed by an individual in the employ of a state or
any instrumentality thereof, any political subdivision of a state or any
instrumentality thereof, or in the employ of an Indian tribe, as defined
pursuant to section 3306(u) of the federal unemployment tax act, any
instrumentality of more than one of the foregoing or any instrumentality
that is jointly owned by this state or a political subdivision thereof or
Indian tribes and one or more other states or political subdivisions of this
or other states, provided that such service is excluded from "employment"
as defined in the federal unemployment tax act by reason of section
3306(c)(7) of that act and is not excluded from "employment" under
subsection (i)(4)(A) of this section. For purposes of this section, the
exclusions from employment in subsections (i)(4)(A) and (i)(4)(L) shall
also be applicable to services performed in the employ of an Indian tribe.
(F) Services performed by an individual in the employ of a religious,
charitable, educational or other organization that is excluded from the term
"employment" as defined in the federal unemployment tax act solely by
reason of section 3306(c)(8) of that act, and is not excluded from
employment under subsection (i)(4)(I) through (M).
(G) The term "employment" includes the services of an individual
who is a citizen of the United States, performed outside the United States
except in Canada, in the employ of an American employer, other than
service that is deemed "employment" under the provisions of subsection (i)
(2) or subsection (i)(3) or the parallel provisions of another state's law, if:
(i) The employer's principal place of business in the United States is
located in this state; or
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HB 2764 14
(ii) the employer has no place of business in the United States, but:
(a) The employer is an individual who is a resident of this state;
(b) the employer is a corporation which is organized under the laws
of this state; or
(c) the employer is a partnership or a trust and the number of the
partners or trustees who are residents of this state is greater than the
number who are residents of any other state; or
(iii) none of the criteria of (i)(3)(G)(i) and (ii) are met but the
employer has elected coverage in this state or, the employer having failed
to elect coverage in any state, the individual has filed a claim for benefits,
based on such service, under the law of this state.
(H) An "American employer," for purposes of subsection (i)(3)(G),
means a person who is:
(i) An individual who is a resident of the United States;
(ii) a partnership if ⅔ or more of the partners are residents of the
United States;
(iii) a trust, if all of the trustees are residents of the United States; or
(iv) a corporation organized under the laws of the United States or of
any state.
(I) Notwithstanding subsection (i)(2), all services performed by an
officer or member of the crew of an American vessel or American aircraft
on or in connection with such vessel or aircraft, if the operating office,
from which the operations of such vessel or aircraft operating within, or
within and without, the United States are ordinarily and regularly
supervised, managed, directed and controlled is within this state.
(J) Notwithstanding any other provisions of this subsection (i),
services with respect to which a tax is required to be paid under any
federal law imposing a tax against which credit may be taken for
contributions required to be paid into a state unemployment compensation
fund or that as a condition for full tax credit against the tax imposed by the
federal unemployment tax act is required to be covered under this act.
(K) Domestic service in a private home, local college club or local
chapter of a college fraternity or sorority performed for a person who paid
cash remuneration of $1,000 or more in any calendar quarter in the current
calendar year or the preceding calendar year to individuals employed in
such domestic service.
(4) The term "employment" does not include: (A) Services performed
in the employ of an employer specified in subsection (h)(3) if such service
is performed by an individual in the exercise of duties:
(i) As an elected official;
(ii) as a member of a legislative body, or a member of the judiciary, of
a state, political subdivision or of an Indian tribe;
(iii) as a member of the state national guard or air national guard;
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HB 2764 15
(iv) as an employee serving on a temporary basis in case of fire,
storm, snow, earthquake, flood or similar emergency;
(v) in a position that, under or pursuant to the laws of this state or
tribal law, is designated as a major nontenured policymaking or advisory
position or as a policymaking or advisory position the performance of the
duties of which ordinarily does not require more than eight hours per
week;
(B) services with respect to which unemployment compensation is
payable under an unemployment compensation system established by an
act of congress;
(C) services performed by an individual in the employ of such
individual's son, daughter or spouse, and services performed by a child
under the age of 21 years in the employ of such individual's father or
mother;
(D) services performed in the employ of the United States
government or an instrumentality of the United States exempt under the
constitution of the United States from the contributions imposed by this
act, except that to the extent that the congress of the United States shall
permit states to require any instrumentality of the United States to make
payments into an unemployment fund under a state unemployment
compensation law, all of the provisions of this act shall be applicable to
such instrumentalities, and to services performed for such
instrumentalities, in the same manner, to the same extent and on the same
terms as to all other employers, employing units, individuals and services.
If this state shall not be certified for any year by the federal security
agency under section 3304(c) of the federal internal revenue code of 1986,
the payments required of such instrumentalities with respect to such year
shall be refunded by the secretary from the fund in the same manner and
within the same period as is provided in K.S.A. 44-717(h), and
amendments thereto, with respect to contributions erroneously collected;
(E) services covered by an arrangement between the secretary and the
agency charged with the administration of any other state or federal
unemployment compensation law pursuant to which all services performed
by an individual for an employing unit during the period covered by such
employing unit's duly approved election, are deemed to be performed
entirely within the jurisdiction of such other state or federal agency;
(F) services performed by an individual under the age of 18 in the
delivery or distribution of newspapers or shopping news, not including
delivery or distribution to any point for subsequent delivery or
distribution;
(G) services performed by an individual for an employing unit as an
insurance agent or as an insurance solicitor, if all such service performed
by such individual for such employing unit is performed for remuneration
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HB 2764 16
solely by way of commission;
(H) services performed in any calendar quarter in the employ of any
organization exempt from income tax under section 501(a) of the federal
internal revenue code of 1986, other than an organization described in
section 401(a) or under section 521 of such code, if the remuneration for
such service is less than $50. In construing the application of the term
"employment," if services performed during ½ or more of any pay period
by an individual for the person employing such individual constitute
employment, all the services of such individual for such period shall be
deemed to be employment; but if the services performed during more than
½ of any such pay period by an individual for the person employing such
individual do not constitute employment, then none of the services of such
individual for such period shall be deemed to be employment. As used in
this subsection (i)(4)(H) the term "pay period" means a period, of not more
than 31 consecutive days, for which a payment of remuneration is
ordinarily made to the individual by the person employing such individual.
This subsection (i)(4)(H) shall not be applicable with respect to services
with respect to which unemployment compensation is payable under an
unemployment compensation system established by an act of congress;
(I) services performed in the employ of a church or convention or
association of churches, or an organization which is operated primarily for
religious purposes and which is operated, supervised, controlled, or
principally supported by a church or convention or association of
churches;
(J) services performed by a duly ordained, commissioned, or licensed
minister of a church in the exercise of such individual's ministry or by a
member of a religious order in the exercise of duties required by such
order;
(K) services performed in a facility conducted for the purpose of
carrying out a program of:
(i) Rehabilitation for individuals whose earning capacity is impaired
by age or physical or mental deficiency or injury; or
(ii) providing remunerative work for individuals who because of their
impaired physical or mental capacity cannot be readily absorbed in the
competitive labor market, by an individual receiving such rehabilitation or
remunerative work;
(L) services performed as part of an employment work-relief or work-
training program assisted or financed in whole or in part by any federal
agency or an agency of a state or political subdivision thereof or of an
Indian tribe, by an individual receiving such work relief or work training;
(M) services performed by an inmate of a custodial or correctional
institution;
(N) services performed, in the employ of a school, college, or
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HB 2764 17
university, if such service is performed by a student who is enrolled and is
regularly attending classes at such school, college or university;
(O) services performed by an individual who is enrolled at a
nonprofit or public educational institution that normally maintains a
regular faculty and curriculum and normally has a regularly organized
body of students in attendance at the place where its educational activities
are carried on as a student in a full-time program, taken for credit at such
institution, that combines academic instruction with work experience, if
such service is an integral part of such program, and such institution has so
certified to the employer, except that this subsection (i)(4)(O) shall not
apply to service performed in a program established for or on behalf of an
employer or group of employers;
(P) services performed in the employ of a hospital licensed, certified
or approved by the secretary of health and environment, if such service is
performed by a patient of the hospital;
(Q) services performed as a qualified real estate agent. As used in this
subsection (i)(4)(Q) the term "qualified real estate agent" means any
individual who is licensed by the Kansas real estate commission as a
salesperson under the real estate brokers' and salespersons' license act and
for whom:
(i) Substantially all of the remuneration, whether or not paid in cash,
for the services performed by such individual as a real estate salesperson is
directly related to sales or other output, including the performance of
services, rather than to the number of hours worked; and
(ii) the services performed by the individual are performed pursuant
to a written contract between such individual and the person for whom the
services are performed and such contract provides that the individual will
not be treated as an employee with respect to such services for state tax
purposes;
(R) services performed for an employer by an extra in connection
with any phase of motion picture or television production or television
commercials for less than 14 days during any calendar year. As used in this
subsection, the term "extra" means an individual who pantomimes in the
background, adds atmosphere to the set and performs such actions without
speaking and "employer" shall not include any employer that is a
governmental entity or any employer described in section 501(c)(3) of the
federal internal revenue code of 1986 that is exempt from income taxation
under section 501(a) of the code;
(S) services performed by an oil and gas contract pumper. As used in
this subsection (i)(4)(S), "oil and gas contract pumper" means a person
performing pumping and other services on one or more oil or gas leases, or
on both oil and gas leases, relating to the operation and maintenance of
such oil and gas leases, on a contractual basis for the operators of such oil
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HB 2764 18
and gas leases and "services" shall not include services performed for a
governmental entity or any organization described in section 501(c)(3) of
the federal internal revenue code of 1986 that is exempt from income
taxation under section 501(a) of the code;
(T) service not in the course of the employer's trade or business
performed in any calendar quarter by an employee, unless the cash
remuneration paid for such service is $200 or more and such service is
performed by an individual who is regularly employed by such employer
to perform such service. For purposes of this paragraph, an individual shall
be deemed to be regularly employed by an employer during a calendar
quarter only if:
(i) On each of some 24 days during such quarter such individual
performs for such employer for some portion of the day service not in the
course of the employer's trade or business; or
(ii) such individual was regularly employed, as determined under
subparagraph (i), by such employer in the performance of such service
during the preceding calendar quarter.
Such excluded service shall not include any services performed for an
employer that is a governmental entity or any employer described in
section 501(c)(3) of the federal internal revenue code of 1986 that is
exempt from income taxation under section 501(a) of the code;
(U) service which is performed by any person who is a member of a
limited liability company and that is performed as a member or manager of
that limited liability company; and
(V) services performed as a qualified direct seller. The term "direct
seller" means any person if:
(i) Such person:
(a) Is engaged in the trade or business of selling or soliciting the sale
of consumer products to any buyer on a buy-sell basis or a deposit-
commission basis for resale, by the buyer or any other person, in the home
or otherwise rather than in a permanent retail establishment; or
(b) is engaged in the trade or business of selling or soliciting the sale
of consumer products in the home or otherwise than in a permanent retail
establishment;
(ii) substantially all the remuneration whether or not paid in cash for
the performance of the services described in subparagraph (i) is directly
related to sales or other output including the performance of services rather
than to the number of hours worked;
(iii) the services performed by the person are performed pursuant to a
written contract between such person and the person for whom the services
are performed and such contract provides that the person will not be
treated as an employee for federal and state tax purposes;
(iv) for purposes of this act, a sale or a sale resulting exclusively from
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a solicitation made by telephone, mail, or other telecommunications
method, or other nonpersonal method does not satisfy the requirements of
this subsection;
(W) services performed as an election official or election worker, if
the amount of remuneration received by the individual during the calendar
year for services as an election official or election worker is less than
$1,000;
(X) services performed by agricultural workers who are aliens
admitted to the United States to perform labor pursuant to section 1101(a)
(15)(H)(ii)(a) of the immigration and nationality act;
(Y) services performed by an owner-operator of a motor vehicle that
is leased or contracted to a licensed motor carrier with the services of a
driver and is not treated under the terms of the lease agreement or contract
with the licensed motor carrier as an employee for purposes of the federal
insurance contribution act, 26 U.S.C. § 3101 et seq ., the federal social
security act, 42 U.S.C. § 301 et seq., the federal unemployment tax act, 26
U.S.C. § 3301 et seq ., and the federal statutes prescribing income tax
withholding at the source, 26 U.S.C. § 3401 et seq. Employees or agents of
the owner-operator shall not be considered employees of the licensed
motor carrier for purposes of employment security taxation or
compensation. As used in this subsection (Y), the following definitions
apply: (i) "Motor vehicle" means any automobile, truck-trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle used
upon any of the public highways of Kansas for the purpose of transporting
persons or property; (ii) "licensed motor carrier" means any person, firm,
corporation or other business entity that holds a certificate of convenience
and necessity or a certificate of public service from the state corporation
commission or is required to register motor carrier equipment pursuant to
49 U.S.C. § 14504; and (iii) "owner-operator" means a person, firm,
corporation or other business entity that is the owner of a single motor
vehicle that is driven exclusively by the owner under a lease agreement or
contract with a licensed motor carrier; and
(Z) services performed by a petroleum landman on a contractual
basis. As used in this subparagraph, "petroleum landman" means an
individual performing services on a contractual basis who is not an
individual who is an active officer of a corporation as described in
subsection (i)(1)(A) that may include:
(i) Negotiating for the acquisition or divestiture of mineral rights;
(ii) negotiating business agreements that provide exploration for or
development of minerals;
(iii) determining ownership in minerals through the research of public
and private records;
(iv) reviewing the status of title, curing title defects, providing title
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due diligence and otherwise reducing title risk associated with ownership
in minerals or the acquisition and divestiture of mineral properties;
(v) managing rights or obligations derived from ownership of
interests in minerals; or
(vi) unitizing or pooling of interests in minerals. For purposes of this
subparagraph, "minerals" includes oil, natural gas or petroleum. "Services"
does not include services performed for a governmental entity or any
organization described in section 501(c)(3) of the federal internal revenue
code of 1986 , or a federally recognized Indian tribe that is exempt from
income taxation under section 501(a) of the code.
(j) "Employment office" means any office operated by this state and
maintained by the secretary of labor for the purpose of assisting persons to
become employed.
(k) "Fund" means the employment security fund established by this
act, to which all contributions and reimbursement payments required and
from which all benefits provided under this act shall be paid and including
all money received from the federal government as reimbursements
pursuant to section 204 of the federal-state extended compensation act of
1970, and amendments thereto.
(l) "State" includes, in addition to the states of the United States of
America, any dependency of the United States, the Commonwealth of
Puerto Rico, the District of Columbia and the Virgin Islands.
(m) "Unemployment." An individual shall be deemed "unemployed"
with respect to any week during which such individual performs no
services and with respect to which no wages are payable to such
individual, or with respect to any week of less than full-time work if the
wages payable to such individual with respect to such week are less than
such individual's weekly benefit amount.
(n) "Employment security administration fund" means the fund
established by this act, from which administrative expenses under this act
shall be paid.
(o) "Wages" means all compensation for services, including
commissions, bonuses, back pay and the cash value of all remuneration,
including benefits, paid in any medium other than cash. The reasonable
cash value of remuneration in any medium other than cash, shall be
estimated and determined in accordance with rules and regulations
prescribed by the secretary. Compensation payable to an individual that
has not been actually received by that individual within 21 days after the
end of the pay period in which the compensation was earned shall be
considered to have been paid on the 21 st day after the end of that pay
period. Effective January 1, 1986, gratuities, including tips received from
persons other than the employing unit, shall be considered wages when
reported in writing to the employer by the employee. Employees must
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furnish a written statement to the employer, reporting all tips received if
they total $20 or more for a calendar month whether the tips are received
directly from a person other than the employer or are paid over to the
employee by the employer. This includes amounts designated as tips by a
customer who uses a credit card to pay the bill. Notwithstanding the other
provisions of this subsection (o), wages paid in back pay awards or
settlements shall be allocated to the week or weeks and reported in the
manner as specified in the award or agreement, or, in the absence of such
specificity in the award or agreement, such wages shall be allocated to the
week or weeks in which such wages, in the judgment of the secretary,
would have been paid. The term "wages" shall not include:
(1) For calendar years 2016 through 2025, that part of the
remuneration that has been paid in a calendar year to an individual by an
employer or such employer's predecessor in excess of $14,000, except that
if the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include remuneration paid to an
individual by an employer under the federal act in excess of $14,000 with
respect to employment during calendar years 2016 through 2025, wages
shall include remuneration paid in a calendar year to an individual by an
employer subject to this act or such employer's predecessor with respect to
employment during any calendar year up to an amount equal to the dollar
limitation specified in the federal unemployment tax act. For the purposes
of this subsection (o)(1), the term "employment" shall include service
constituting employment under any employment security law of another
state or of the federal government;
(2) (A) For the calendar year as set forth below, except as provided by
subparagraph (B), for contributing rated employers assigned rate groups 0-
N11, that part of the remuneration that has been paid in a calendar year to
an individual by an employer or such employer's predecessor in excess of
the specified percentage of the statewide average annual wage paid to
employees in insured work during the previous calendar year and rounded
to the nearest multiple of $100:
(i) Calendar years 2026 through 2027, 25%;
(ii) calendar year 2028, 30%;
(iii) calendar year 2029, 35%;
(iv) calendar years 2030 through 2031, 40%; and
(v) calendar year 2032 and all ensuing calendar years thereafter:
(a) 40%, except as provided in subclause (b); and
(b) 45% if any combination of employer rate schedules G through M,
as provided in K.S.A. 44-710a(a)(4)(C), and amendments thereto, is in
effect for any five consecutive preceding calendar years occurring after
calendar year 2031. The specified percentage of 45% shall then remain in
effect for all ensuing calendar years thereafter notwithstanding any
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changes to the employer rate schedules in effect during such ensuing
calendar years.
(B) If the definition of the term "wages" as contained in the federal
unemployment tax act is amended to include the remuneration paid to an
individual by an employer under the federal act in excess of the amount
calculated pursuant to subparagraph (A), then with respect to employment
during all calendar years thereafter, wages shall include the remuneration
paid in a calendar year to an individual by an employer subject to this act
or such employer's predecessor with respect to employment during any
calendar year up to an amount equal to the dollar limitation specified in the
federal unemployment tax act.
(C) For purposes of subparagraphs (A) and (B):
(i) "Employment" includes service constituting employment under
any employment security law of another state or of the federal
government; and
(ii) "statewide average annual wage" means the statewide average
annual wage as defined by subsection (jj) and computed by the secretary
on July 1 each year, as provided by K.S.A. 44-704, and amendments
thereto;
(3) the amount of any payment, including any amount paid by an
employing unit for insurance or annuities, or into a fund, to provide for
any such payment, made to, or on behalf of, an employee or any of such
employee's dependents under a plan or system established by an employer
that makes provisions for employees generally, for a class or classes of
employees or for such employees or a class or classes of employees and
their dependents, on account of:
(A) Sickness or accident disability, except in the case of any payment
made to an employee or such employee's dependents, this subparagraph
shall exclude from the term "wages" only payments that are received under
a workers compensation law. Any third party that makes a payment
included as wages by reason of this subparagraph shall be treated as the
employer with respect to such wages;
(B) medical and hospitalization expenses in connection with sickness
or accident disability; or
(C) death;
(4) any payment on account of sickness or accident disability, or
medical or hospitalization expenses in connection with sickness or
accident disability, made by an employer to, or on behalf of, an employee
after the expiration of six calendar months following the last calendar
month in which the employee worked for such employer;
(5) any payment made to, or on behalf of, an employee or such
employee's beneficiary:
(A) From or to a trust described in section 401(a) of the federal
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internal revenue code of 1986 that is exempt from tax under section 501(a)
of the federal internal revenue code of 1986 at the time of such payment
unless such payment is made to an employee of the trust as remuneration
for services rendered as such employee and not as a beneficiary of the
trust;
(B) under or to an annuity plan that, at the time of such payment, is a
plan described in section 403(a) of the federal internal revenue code of
1986;
(C) under a simplified employee pension as defined in section 408(k)
(1) of the federal internal revenue code of 1986, other than any
contribution described in section 408(k)(6) of the federal internal revenue
code of 1986;
(D) under or to an annuity contract described in section 403(b) of the
federal internal revenue code of 1986, other than a payment for the
purchase of such contract that was made by reason of a salary reduction
agreement whether evidenced by a written instrument or otherwise;
(E) under or to an exempt governmental deferred compensation plan
as defined in section 3121(v)(3) of the federal internal revenue code of
1986;
(F) to supplement pension benefits under a plan or trust described in
any of the foregoing provisions of this subparagraph to take into account
some portion or all of the increase in the cost of living, as determined by
the secretary of labor, since retirement but only if such supplemental
payments are under a plan that is treated as a welfare plan under section
3(2)(B)(ii) of the federal employee retirement income security act of 1974;
or
(G) under a cafeteria plan within the meaning of section 125 of the
federal internal revenue code of 1986;
(6) the payment by an employing unit, without deduction from the
remuneration of the employee, of the tax imposed upon an employee under
section 3101 of the federal internal revenue code of 1986 with respect to
remuneration paid to an employee for domestic service in a private home
of the employer or for agricultural labor;
(7) remuneration paid in any medium other than cash to an employee
for service not in the course of the employer's trade or business;
(8) remuneration paid to or on behalf of an employee if and to the
extent that at the time of the payment of such remuneration it is reasonable
to believe that a corresponding deduction is allowable under section 217 of
the federal internal revenue code of 1986 relating to moving expenses;
(9) any payment or series of payments by an employer to an
employee or any of such employee's dependents that is paid:
(A) Upon or after the termination of an employee's employment
relationship because of (i) death or (ii) retirement for disability; and
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(B) under a plan established by the employer that makes provisions
for employees generally, a class or classes of employees or for such
employees or a class or classes of employees and their dependents, other
than any such payment or series of payments that would have been paid if
the employee's employment relationship had not been so terminated;
(10) remuneration for agricultural labor paid in any medium other
than cash;
(11) any payment made, or benefit furnished, to or for the benefit of
an employee if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 129 of the federal internal
revenue code of 1986 that relates to dependent care assistance programs;
(12) the value of any meals or lodging furnished by or on behalf of
the employer if at the time of such furnishing it is reasonable to believe
that the employee will be able to exclude such items from income under
section 119 of the federal internal revenue code of 1986;
(13) any payment made by an employer to a survivor or the estate of
a former employee after the calendar year in which such employee died;
(14) any benefit provided to or on behalf of an employee if at the time
such benefit is provided it is reasonable to believe that the employee will
be able to exclude such benefit from income under section 74(c), 117 or
132 of the federal internal revenue code of 1986;
(15) any payment made, or benefit furnished, to or for the benefit of
an employee, if at the time of such payment or such furnishing it is
reasonable to believe that the employee will be able to exclude such
payment or benefit from income under section 127 of the federal internal
revenue code of 1986 relating to educational assistance to the employee; or
(16) any payment made to or for the benefit of an employee if at the
time of such payment it is reasonable to believe that the employee will be
able to exclude such payment from income under section 106(d) of the
federal internal revenue code of 1986 relating to health savings accounts.
Nothing in any paragraph of subsection (o), other than paragraphs (1)
and (2), shall exclude from the term "wages": (1) Any employer
contribution under a qualified cash or deferred arrangement, as defined in
section 401(k) of the federal internal revenue code of 1986, to the extent
that such contribution is not included in gross income by reason of section
402(a)(8) of the federal internal revenue code of 1986; or (2) any amount
treated as an employer contribution under section 414(h)(2) of the federal
internal revenue code of 1986.
Any amount deferred under a nonqualified deferred compensation plan
shall be taken into account for purposes of this section as of the later of
when the services are performed or when there is no substantial risk of
forfeiture of the rights to such amount. Any amount taken into account as
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wages by reason of this paragraph, and the income attributable thereto,
shall not thereafter be treated as wages for purposes of this section. For
purposes of this paragraph, the term "nonqualified deferred compensation
plan" means any plan or other arrangement for deferral of compensation
other than a plan described in subsection (o)(5).
(p) "Week" means such period or periods of seven consecutive
calendar days, as the secretary may by rules and regulations prescribe.
(q) "Calendar quarter" means the period of three consecutive calendar
months ending March 31, June 30, September 30 or December 31, or the
equivalent thereof as the secretary may by rules and regulations prescribe.
(r) "Insured work" means employment for employers.
(s) "Approved training" means any vocational training course or
course in basic education skills, including a job training program
authorized under the federal workforce investment act of 1998, approved
by the secretary or a person or persons designated by the secretary.
(t) "American vessel" or "American aircraft" means any vessel or
aircraft documented or numbered or otherwise registered under the laws of
the United States; and any vessel or aircraft that is neither documented or
numbered or otherwise registered under the laws of the United States nor
documented under the laws of any foreign country, if its crew performs
service solely for one or more citizens or residents of the United States or
corporations organized under the laws of the United States or of any state.
(u) "Institution of higher education," for the purposes of this section,
means an educational institution that:
(1) Admits as regular students only individuals having a certificate of
graduation from a high school, or the recognized equivalent of such a
certificate;
(2) is legally authorized in this state to provide a program of
education beyond high school;
(3) provides an educational program for which it awards a bachelor's
or higher degree, or provides a program that is acceptable for full credit
toward such a degree, a program of postgraduate or postdoctoral studies,
or a program of training to prepare students for gainful employment in a
recognized occupation; and
(4) is a public or other nonprofit institution.
Notwithstanding any of the foregoing provisions of this subsection (u),
all colleges and universities in this state are institutions of higher education
for purposes of this section, except that no college, university, junior
college or other postsecondary school or institution that is operated by the
federal government or any agency thereof shall be an institution of higher
education for purposes of the employment security law.
(v) "Educational institution" means any institution of higher
education, as defined in subsection (u), or any institution, except private
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for profit institutions, in which participants, trainees or students are offered
an organized course of study or training designed to transfer to them
knowledge, skills, information, doctrines, attitudes or abilities from, by or
under the guidance of an instructor or teacher and that is approved,
licensed or issued a permit to operate as a school by the state department
of education or other government agency that is authorized within the state
to approve, license or issue a permit for the operation of a school or to an
Indian tribe in the operation of an educational institution. The courses of
study or training that an educational institution offers may be academic,
technical, trade or preparation for gainful employment in a recognized
occupation.
(w) (1) "Agricultural labor" means any remunerated service:
(A) On a farm, in the employ of any person, in connection with
cultivating the soil, or in connection with raising or harvesting any
agricultural or horticultural commodity, including the raising, shearing,
feeding, caring for, training, and management of livestock, bees, poultry,
and furbearing animals and wildlife.
(B) In the employ of the owner or tenant or other operator of a farm,
in connection with the operating, management, conservation,
improvement, or maintenance of such farm and its tools and equipment, or
in salvaging timber or clearing land of brush and other debris left by a
hurricane, if the major part of such service is performed on a farm.
(C) In connection with the production or harvesting of any
commodity defined as an agricultural commodity in section (15)(g) of the
agricultural marketing act, as amended, 46 Stat. 1500, sec. 3; 12 U.S.C. §
1141j, or in connection with the ginning of cotton, or in connection with
the operation or maintenance of ditches, canals, reservoirs or waterways,
not owned or operated for profit, used exclusively for supplying and
storing water for farming purposes.
(D) (i) In the employ of the operator of a farm in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing, or
delivering to storage or to market or to a carrier for transportation to
market, in its unmanufactured state, any agricultural or horticultural
commodity; but only if such operator produced more than ½ of the
commodity with respect to which such service is performed;
(ii) in the employ of a group of operators of farms, or a cooperative
organization of which such operators are members, in the performance of
services described in paragraph (i), but only if such operators produced
more than ½ of the commodity with respect to which such service is
performed;
(iii) the provisions of paragraphs (i) and (ii) shall not be deemed to be
applicable with respect to services performed in connection with
commercial canning or commercial freezing or in connection with any
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HB 2764 27
agricultural or horticultural commodity after its delivery to a terminal
market for distribution for consumption.
(E) On a farm operated for profit if such service is not in the course
of the employer's trade or business.
(2) "Agricultural labor" does not include services performed prior to
January 1, 1980, by an individual who is an alien admitted to the United
States to perform service in agricultural labor pursuant to sections 214(c)
and 101(a)(15)(H) of the federal immigration and nationality act.
(3) As used in this subsection, the term "farm" includes stock, dairy,
poultry, fruit, fur-bearing animal, and truck farms, plantations, ranches,
nurseries, ranges, greenhouses, or other similar structures used primarily
for the raising of agricultural or horticultural commodities, and orchards.
(4) For the purpose of this section, if an employing unit does not
maintain sufficient records to separate agricultural labor from other
employment, all services performed during any pay period by an
individual for the person employing such individual shall be deemed to be
agricultural labor if services performed during ½ or more of such pay
period constitute agricultural labor; but if the services performed during
more than ½ of any such pay period by an individual for the person
employing such individual do not constitute agricultural labor, then none
of the services of such individual for such period shall be deemed to be
agricultural labor. As used in this subsection, the term "pay period" means
a period of not more than 31 consecutive days for which a payment of
remuneration is ordinarily made to the individual by the person employing
such individual.
(x) "Reimbursing employer" means any employer who makes
payments in lieu of contributions to the employment security fund as
provided in K.S.A. 44-710(e), and amendments thereto.
(y) "Contributing employer" means any employer other than a
reimbursing employer or rated governmental employer.
(z) "Wage combining plan" means a uniform national arrangement
approved by the United States secretary of labor in consultation with the
state unemployment compensation agencies and in which this state shall
participate, whereby wages earned in one or more states are transferred to
another state, called the "paying state," and combined with wages in the
paying state, if any, for the payment of benefits under the laws of the
paying state and as provided by an arrangement so approved by the United
States secretary of labor.
(aa) "Domestic service" means any services for a person in the
operation and maintenance of a private household, local college club or
local chapter of a college fraternity or sorority, as distinguished from
service as an employee in the pursuit of an employer's trade, occupation,
profession, enterprise or vocation.
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(bb) "Rated governmental employer" means any governmental entity
that elects to make payments as provided by K.S.A. 44-710d, and
amendments thereto.
(cc) "Benefit cost payments" means payments made to the
employment security fund by a governmental entity electing to become a
rated governmental employer.
(dd) "Successor employer" means any employer, as described in
subsection (h), that acquires or in any manner succeeds to: (1)
Substantially all of the employing enterprises, organization, trade or
business of another employer; or (2) substantially all the assets of another
employer.
(ee) "Predecessor employer" means an employer, as described in
subsection (h), who has previously operated a business or portion of a
business with employment to which another employer has succeeded.
(ff) "Lessor employing unit" means any independently established
business entity that engages in the business of providing leased employees
to a client lessee.
(gg) "Client lessee" means any individual, organization, partnership,
corporation or other legal entity leasing employees from a lessor
employing unit.
(hh) "Qualifying injury" means a personal injury by accident arising
out of and in the course of employment within the coverage of the Kansas
workers compensation act, K.S.A. 44-501 et seq., and amendments*.
(ii) "Temporary unemployment," "temporarily unemployed" or
"temporary layoff" means that the individual has been laid off due to lack
of work by an employing unit for which the individual has most recently
worked full time and for which the individual reasonably expects to
resume full-time work at a future date within eight weeks, and that the
individual's employment with the employing unit, although temporarily
suspended, has not been terminated. Except as otherwise provided by
K.S.A. 44-775(a)(3), and amendments thereto, "temporary unemployment"
shall not exceed eight consecutive weeks. An extension of additional
weeks of temporary unemployment at the request of an employer for an
individual may be granted by the secretary as provided by K.S.A. 44-
775(a)(3), and amendments thereto. The maximum amount of temporary
unemployment for an individual in a benefit year, including any extension
granted by the secretary, shall be as provided by K.S.A. 44-775(a)(3), and
amendments thereto.
(jj) "Statewide average annual wage" or "SAAW" means the quotient,
obtained by dividing gross wages by average monthly covered
employment for the same determination period, rounded to the nearest
cent.
(kk) "Statewide average weekly wage" or "SAWW" means the
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quotient, obtained by dividing the statewide average annual wage by 52,
rounded to the nearest cent.
(a) "Agricultural labor" means any remunerated service as defined
below:
(1) Services performed:
(A) On a farm, in the employ of any person and in connection with:
(i) Cultivating the soil; or
(ii) raising or harvesting any agricultural or horticultural
commodity, including the raising, shearing, feeding, caring for, training
and management of livestock, bees, poultry, furbearing animals and
wildlife;
(B) in the employ of the owner, tenant or other operator of a farm, in
connection with:
(i) The operation, management, conservation, improvement or
maintenance of such farm and such farm's tools and equipment; or
(ii) salvaging timber or clearing land of brush and debris left by a
hurricane, if the major part of such service is performed on a farm;
(C) in connection with:
(i) The production or harvesting of any agricultural commodity as
defined in 12 U.S.C. § 1141j, as in effect on July 1, 2026;
(ii) the ginning of cotton; or
(iii) the operation or maintenance of ditches, canals, reservoirs or
waterways not owned or operated for profit, if used exclusively for
supplying and storing water for farming purposes;
(D) (i) in the employ of the operator of a farm, in handling, planting,
drying, packing, packaging, processing, freezing, grading, storing or
delivering to storage, market or a carrier for transportation to market any
agricultural or horticultural commodity in such commodity's
unmanufactured state, if such operator produced more than 50% of such
commodity for which the service is performed;
(ii) in the employ of a group of farm operators or a cooperative
organization of which such operators are members, in performing the
services described in paragraph (i), provided that the operators
collectively produced more than 50% of the commodity for which the
service is performed; or
(iii) services under (i) and (ii) shall not include services performed in
connection with commercial canning or freezing or any agricultural or
horticultural commodity after its delivery to a terminal market for
distribution or consumption; or
(E) on a farm operated for profit, where the service is not performed
in the course of the employer's trade or business.
(2) For purposes of this subsection, "farm" includes stock, dairy,
poultry, fruit, fur-bearing animal and truck farms, plantations, ranches,
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nurseries, ranges, greenhouses or similar structures primarily used for the
raising of agricultural or horticultural commodities and orchards.
(3) For determining coverage under this act, if an employing unit
does not maintain sufficient records to distinguish agricultural labor from
other employment:
(A) All services performed during a pay period shall be deemed
agricultural labor if 50% or more of the individual's services during such
period constitute agricultural labor; or
(B) no services shall be deemed agricultural labor if less than 50% of
such services constitute agricultural labor.
(b) "American vessel" or "American aircraft" means a vessel or
aircraft registered or documented under the laws of the United States or
operated by companies or citizens that are based in the United States.
(c) (1) "Annual payroll" means the total wages paid or payable by an
employer during the calendar year.
(2) "Average annual payroll" means the average of the annual
payrolls of an employer for the last three calendar years immediately
preceding the computation date, provided the employer has been
continuously subject to contributions and has paid wages during each of
those years. If an employer has only been subject to contributions for the
two most recent calendar years preceding the computation date, the
"average annual payroll" shall be the average for those two years.
(3) "Total wages" means the total amount of wages paid or payable
by an employer during the calendar year, including amounts exceeding the
taxable wage base.
(d) "Approved training" means any training or education program
approved by the secretary or the secretary's designee, including those
authorized under federal workforce programs.
(e) "Average high cost multiple" means the measure of trust fund
solvency calculated by dividing the trust fund balance by the average of
the three highest calendar year benefit cost rates in the previous 20 years.
An average high cost multiple of 1.0 indicates sufficient reserves to pay
one year of high-cost benefits without additional revenue, as
recommended by the United States department of labor.
(f) "Base period" means the first four of the last five completed
calendar quarters immediately preceding the start of an individual's
benefit year, except for combined wage claims, in which the base period is
defined by the paying state.
(1) If an individual does not have sufficient wages in the standard
base period to establish a claim and meets the requirements of K.S.A. 44-
705(e), and amendments thereto, an "alternative base period" may be
used, defined as the last four completed quarters immediately before the
date of a qualifying injury. Wages previously used for another claim shall
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be excluded.
(2) For the purposes of this act, the term "base period" includes both
the standard and alternative base periods.
(g) "Benefit account" means the account established within the
employment security fund for the disbursement of unemployment
insurance benefits, consisting of moneys requisitioned from this state's
account in the federal unemployment trust fund.
(h) "Benefit cost payments" means amounts paid by rated
governmental employers to fund unemployment benefits.
(i) "Benefit cost rate" means the total benefits paid during a fiscal
year divided by total covered payrolls.
(j) "Benefit liability" means the amount of unemployment insurance
benefits attributed to an employer's account or obligation, either through
experience rating, reimbursement or benefit charging, including amounts
subject to offset or relief as provided under this act.
(k) "Benefit year" means the 52-week period beginning on the Sunday
of the week in which an individual files a valid claim for benefits. A
subsequent benefit year may begin only after the preceding benefit year
ends. In combined wage claims, the benefit year is determined by the
paying state.
(l) (1) "Benefits" means money payments payable to an individual
with respect to unemployment, as provided under this act.
(2) "Regular benefits" means benefits payable under this act or under
any other state law, including federal benefits to civilian employees or ex-
service members under 5 U.S.C. Ch. 85, excluding extended benefits.
(m) "Calendar quarter" means a three-month period ending on
March 31, June 30, September 30 or December 31.
(n) "Clearing account" means the account within the employment
security fund used to temporarily hold contributions and remittances prior
to their deposit into the federal unemployment trust fund or other
authorized accounts.
(o) "Client lessee" means any individual, organization, partnership,
corporation or other legal entity that obtains the services of workers by
leasing such workers from a lessor employing unit under a contractual
arrangement.
(p) (1) "Computation date" means June 30 of the calendar year
preceding the applicable rate year, or such other date as may be
designated by rules and regulations adopted by the secretary, used for
calculating employer experience ratings and contribution rates applicable
to the following calendar year beginning on January 1.
(2) For the purpose of calculating experience ratings and
contribution rates, contributions paid on or before July 31 following the
computation date shall be considered, provided they relate to employment
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occurring on or before the computation date.
(3) The experience ratings and contribution rates shall apply to any
contributing employer that has been subject to this act for a sufficient
period to have a rate computed pursuant to K.S.A. 44-710a(a)(2), and
amendments thereto.
(q) "Contributing employer" means any employer required to pay
regular unemployment insurance contributions, excluding reimbursing or
rated governmental employers.
(r) "Contribution receipts" means all amounts collected from subject
employers under the employment security law, including contributions,
penalties and interest, unless otherwise excluded by statute or regulation.
(s) (1) "Contributions" means required payments by employers to the
state employment security fund pursuant to K.S.A. 44-710, and
amendments thereto, including voluntary payments.
(2) "Payments in lieu of contributions" means payments made by
reimbursing employers instead of contributions pursuant to K.S.A. 44-
710(e), and amendments thereto.
(t) "Domestic service" means services performed for a person in the
operation and maintenance of a private household, local college club or
local chapter of a college fraternity or sorority. This term is distinct from
employment performed in the course of an employer's trade, occupation,
profession, enterprise or vocation.
(u) "Educational institution" means any accredited institution, except
private for-profit entities, that offers organized courses of study approved
by a relevant government authority or tribal authority.
(v) "Employer" means:
(1) (A) Any employing unit for which agricultural labor as defined in
this section is performed and, during any calendar quarter in either the
current or preceding calendar year, paid remuneration in cash in an
amount of $20,000 or more to individuals employed in agricultural labor
or for some portion of a day in each of 20 calendar weeks, whether or not
such weeks were consecutive, in either the current or the preceding
calendar year, or employed 10 or more individuals in agricultural labor,
regardless of whether they were employed at the same time.
(B) For the purposes of this subsection, any individual who is a
member of a crew furnished by a crew leader to perform services in
agricultural labor for any other person shall be considered an employee of
such crew leader if:
(i) Such crew leader holds a valid certificate of registration under the
federal migrant and seasonal agricultural workers protection act or
substantially all the members of such crew operate or maintain tractors,
mechanized harvesting or cropdusting equipment or any other mechanized
equipment that is provided by such crew leader; and
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(ii) such individual is not in the employment of such other person as
defined in this section.
(C) For the purposes of this subsection, in the case of any individual
who is furnished by a crew leader to perform services in agricultural
labor for any other person and is not an employee of such crew leader:
(i) Such other person shall be considered the employer of such
individual; and
(ii) such other person shall be deemed to have paid cash
remuneration to such individual in an amount equal to the amount of cash
remuneration paid to such individual by the crew leader, either on the
crew leader's own behalf or on behalf of such other person, for the
services in agricultural labor performed for such other person.
(D) For the purposes of this subsection, "crew leader" means an
individual who:
(i) Furnishes individuals to perform services in agricultural labor for
any other person;
(ii) pays, either on such crew leader's own behalf or on behalf of such
other person, the individuals so furnished by such crew leader for the
services in agricultural labor performed by such individuals; and
(iii) has not entered into a written agreement with such other person
under which such individual is designated as an employee of such other
person.
(2) (A) Any employing unit that:
(i) Paid wages of $1,500 or more in any calendar quarter during the
current or preceding calendar year;
(ii) employed at least one individual for some portion of a day in
each of 20 weeks during the current or preceding calendar year; or
(iii) elected to establish an unemployment tax account pursuant to
K.S.A. 44-711(c), and amendments thereto.
(B) Wages and employment related to domestic service or
agricultural labor shall be excluded when determining employer status
under this paragraph.
(3) Any employing unit for which service is deemed employment
under subsection (x)(3)(E);
(4) (A) any employing unit that acquires or succeeds to:
(i) Substantially all of the business, trade, organization or
operations; or
(ii) substantially all of the assets of an employer subject to this act.
(B) Any employing unit controlled substantially, directly or indirectly,
by the same interest or interests that acquires less than 100% of another
employer's payroll and intends to operate such acquired portion of payroll
as a continuing business;
(5) any employing unit that paid $1,000 or more in cash wages in any
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calendar quarter in the current or preceding calendar year for domestic
service;
(6) any employing unit that, having become subject to this act as an
employer, has not ceased to be an employer pursuant to K.S.A. 44-711(b),
and amendments thereto;
(7) any employing unit that elects full coverage under this act and
pursuant to K.S.A. 44-711(c), and amendments thereto;
(8) any employing unit not otherwise defined as an employer under
this subsection that is subject to federal unemployment tax requirements or
must be defined as an employer for Kansas to maintain conformity with
federal law; or
(9) any organization that is tax exempt under 26 U.S.C. § 501(c)(3)
that employed four or more individuals for some portion of a day in each
of 20 weeks during the current or preceding calendar year, regardless of
whether the employees worked simultaneously.
(w) (1) "Employing unit" means any individual or legal entity,
including, but not limited to, a partnership, corporation, limited liability
company, trust, estate, association, government agency or nonprofit
organization that has employed one or more individuals in this state.
(2) All individuals working at multiple locations operated by the
same entity shall be considered employed by one employing unit for the
purposes of this act.
(3) Any individual who performs work under the direction of another
individual employed by the unit, whether hired directly or indirectly, shall
be considered employed by the employing unit if the unit had actual or
constructive knowledge of such work.
(x) "Employment" means:
(1) Subject to the provisions of this subsection, service, including
service in interstate commerce, performed by:
(A) Any active officer of a corporation;
(B) any individual who is determined to be an employee under the
common law test for employer-employee status, subject to paragraph (3)
(D); or
(C) any individual who is not included under subparagraphs (A) or
(B) but performs services for remuneration under occupational
classifications such as:
(i) An agent-driver or commission-driver distributing goods or
services for a principal; or
(ii) a traveling or city salesperson working full time soliciting orders
for merchandise or supplies for use in business operations.
(D) Employment under paragraph (1)(C) is recognized only if:
(i) The contract requires that substantially all services be performed
personally;
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HB 2764 35
(ii) the individual does not own a substantial investment in facilities
used, except transport; and
(iii) the work reflects a continuing business relationship.
(2) "Employment" includes all services performed entirely outside of
Kansas if:
(A) The work is not localized in any one state;
(B) the individual is part of a class of traveling employees; and
(C) the base of operations or supervisory control is located in
Kansas.
(3) "Employment" also includes:
(A) Services performed in Kansas but not covered under paragraphs
(1) or (2), if no other state or federal unemployment tax applies;
(B) services performed entirely outside of Kansas by a resident in
which the employer elects to cover the service under Kansas law and no
other state has jurisdiction;
(C) services subject to an interstate reciprocal arrangement pursuant
to K.S.A. 44-714(h), and amendments thereto, in which all services are
deemed to occur in Kansas and the secretary approves the election;
(D) services for remuneration under a contract of hire in which the
employer retains control over both the result and manner of performance;
(E) services for state, local or tribal governments and political
subdivisions, as well as joint instrumentalities with Indian tribes, to the
extent permitted under federal law and not excluded in paragraph (4)(A);
(F) services for religious, charitable or educational organizations
excluded from coverage under the federal unemployment tax act solely by
26 U.S.C. 3306(c)(8) but not otherwise excluded under paragraph (4)(I)–
(M);
(G) (i) out-of-country services by citizens of the United States. For
the purposes of the employment security law, "employment" includes
services performed outside of the United States, except in Canada, by an
individual who is a citizen of the United States and employed by an
American employer, as such term is defined in subclause (ii), provided
such service is not already deemed "employment" under paragraphs (2) or
(3) or the corresponding provisions of another state's law, and one of the
following conditions applies:
(a) The employer's principal place of business within the United
States is located in Kansas; or
(b) the employer has no place of business in the United States, but:
(1) If the employer is an individual, such individual is a resident of
Kansas;
(2) if the employer is a corporation, such corporation is organized
under the laws of Kansas; or
(3) if the employer is a partnership or a trust, the number of partners
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or trustees who are Kansas residents exceeds the number residing in any
other state; or
(c) if none of the above criteria are met, the employer has elected to
cover such services under the employment security law, or, in the absence
of such an election in any state, the individual has filed a claim for
benefits under the employment security law.
(ii) For the purposes of paragraph (3)(G)(i), an "American
employer" means any of the following entities:
(a) An individual who is a resident of the United States;
(b) a partnership in which two-thirds or more of the partners are
residents of the United States;
(c) a trust in which all trustees are residents of the United States; or
(d) a corporation organized under the laws of the United States or
any of its states;
(H) services performed on American vessels and aircraft.
Notwithstanding paragraph (2), services performed by an officer or crew
member aboard an American vessel or American aircraft, whether
operating solely within the United States or both within and outside of the
United States, shall be deemed employment under the employment security
law if the operating office from which the vessel's or aircraft's operations
are ordinarily and regularly supervised, managed, directed and controlled
is located within the state of Kansas;
(I) services required to be compliant under the federal unemployment
tax act. Notwithstanding any other provisions of this subsection,
"employment" includes any services for which a federal tax is required to
be paid under a law that permits a credit for contributions made to a state
unemployment compensation fund, or for which coverage is required
under the employment security law as a condition of receiving the full tax
credit allowed under the federal unemployment tax act; and
(J) domestic service performed in a private home, local college club
or local chapter of a college fraternity or sorority for any person who paid
cash wages totaling $1,000 or more in any calendar quarter during the
current or preceding calendar year to one or more individuals employed
in such domestic service.
(4) The term "employment" does not include the following services:
(A) Services performed for an employer described in paragraph (3)
(E), if the individual performs duties:
(i) As an elected official;
(ii) as a member of a legislative body or the judiciary of a state,
political subdivision or Indian tribe;
(iii) as a member of the Kansas army or air national guard;
(iv) on a temporary basis in response to emergencies, such as fire,
storm, snow, earthquake, flood or similar events; or
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HB 2764 37
(v) in a position designated under state or tribal law as a major
nontenured policymaking or advisory role, or one that ordinarily requires
less than eight hours of service per week;
(B) services for which unemployment compensation is payable under
a federal unemployment compensation system established by an act of
congress;
(C) services performed by an individual in the employ of such
individual's spouse, son, or daughter or by a child under the age of 21 in
the employ of the child's parent;
(D) services for the United States government or the United State's
instrumentalities that are exempt from state contributions under the
constitution of the United States. However, if federal law permits such
instrumentalities to make payments into a state unemployment fund, all
provisions of this act apply. If Kansas fails to be certified for a year under
26 U.S.C. 3304(c), payments made by such instrumentalities shall be
refunded in accordance with K.S.A. 44-717(h), and amendments thereto;
(E) reciprocal coverage agreements. "Employment" does not include
services performed by an individual for an employing unit when all such
services during a specified period are covered under a reciprocal
arrangement approved pursuant to K.S.A. 44-714(h), and amendments
thereto, pursuant to which the secretary and the agency administering
another state or federal unemployment compensation law have agreed that
such services are deemed to be performed entirely within the jurisdiction
of that other state or federal agency for purposes of unemployment
insurance coverage;
(F) exempt newspaper delivery by minors. Services performed by an
individual under the age of 18 in the delivery or distribution of
newspapers or shopping news shall not be deemed employment, provided
such services do not include delivery or distribution to any location for
subsequent delivery or distribution;
(G) insurance agents and solicitors. Services performed by an
individual for an employing unit as an insurance agent or solicitor shall
be excluded from employment if all such services are performed for
remuneration solely by way of commission;
(H) low-paid work for certain tax-exempt organizations. Services
performed in any calendar quarter for an organization exempt from
income tax under 26 U.S.C. § 501(a), excluding organizations described
in 26 U.S.C. §§ 401(a) or 521, shall be excluded from employment if total
remuneration is less than $50 for such quarter. For the purposes of this
subsection:
(i) If services performed during 1/2 or more of any pay period
constitute employment, then all services performed by such individual
during such pay period shall be deemed employment;
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(ii) if services performed during more than 1/2 of any pay period do
not constitute employment, then none of the services during that period
shall be deemed employment; and
(iii) this exclusion shall not apply where unemployment
compensation is payable under a federal unemployment compensation
system;
(I) religious employment, including services performed in the employ
of a church, convention or association of churches or by an organization
operated primarily for religious purposes and under the supervision,
control or support of such church entities;
(J) ministers and religious order members, including services
performed by a duly ordained, commissioned or licensed minister of a
church in the exercise of their ministry or a member of a religious order in
the exercise of required duties;
(K) rehabilitation and sheltered work services, including services
performed in a facility operated to conduct a program of:
(i) Rehabilitation for individuals whose earning capacity is impaired
by age, physical or mental deficiency or injury; or
(ii) remunerative work for individuals who, due to such impairments,
cannot readily be absorbed into the competitive labor market;
(L) work-relief or work-training programs, including services
performed under an employment work-relief or work-training program
financed in whole or in part by any federal agency or agency of a state,
political subdivision or Indian tribe, by individuals receiving such work
relief or training;
(M) services performed by an inmate of a custodial or correctional
institution;
(N) student employees of educational institutions. Services performed
in the employ of a school, college or university by a student who is
enrolled and regularly attending classes at such institution shall be
excluded from employment;
(O) work-study programs. Services performed as part of a full-time,
for-credit work-study program at a nonprofit or public educational
institution shall be excluded from employment, provided the institution
certifies that:
(i) The service is an integral part of the student's academic program;
and
(ii) the position was not established primarily for or by the employer;
(P) services performed in the employ of a hospital licensed, certified
or approved by the secretary of health and environment, if such services
are performed by a patient of the hospital;
(Q) services performed as a qualified real estate agent. A "qualified
real estate agent" means any individual who:
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(i) Is licensed by the Kansas real estate commission as a salesperson
under the real estate brokers' and salespersons' license act;
(ii) receives substantially all remuneration, whether or not paid in
cash, for services as a real estate salesperson based directly on sales or
other output rather than hours worked; and
(iii) performs such services pursuant to a written contract with the
person for whom the services are performed, and such contract specifies
that the individual will not be considered an employee for state tax
purposes;
(R) services performed by an extra for an employer in connection
with any phase of motion picture, television production or television
commercials for fewer than 14 days in any calendar year. "Extra" means
an individual who pantomimes in the background, adds atmosphere to the
set and performs such actions without speaking. This exclusion does not
apply to services performed for a governmental entity or an organization
described in 26 U.S.C. § 501(c)(3) that is exempt under 26 U.S.C. §
501(a).
(S) services performed by an oil and gas contract pumper. "Oil and
gas contract pumper" means a person performing pumping and related
services on one or more oil or gas leases on a contractual basis for the
lease operators concerning the operation and maintenance of such leases.
This exclusion does not apply to services performed for a governmental
entity or an organization described in 26 U.S.C. § 501(c)(3) that is exempt
under 26 U.S.C. § 501(a);
(T) (i) casual services not in the course of the employer's trade or
business performed in any calendar quarter, unless:
(a) Cash remuneration paid for such service is $200 or more; and
(b) the individual is regularly employed by the employer to perform
such service;
(ii) for the purposes of this subparagraph, an individual is "regularly
employed" during a calendar quarter if:
(a) On 24 or more days in such quarter, the individual performs some
portion of such casual services; or
(b) the individual met the standard in subparagraph (a) in the
preceding calendar quarter;
(iii) this exclusion shall not apply to services performed for a
governmental entity or an organization described in 26 U.S.C. § 501(c)(3)
that is exempt under 26 U.S.C. § 501(a);
(U) services performed by a member or manager of a limited liability
company in their capacity as a member or manager of such limited
liability company.
(V) services performed as a qualified direct seller. A "qualified direct
seller" means a person who:
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(i) Is engaged in selling or soliciting the sale of consumer products
without a permanent retail establishment, including through buy-sell,
deposit-commission or similar arrangements;
(ii) receives substantially all remuneration directly related to sales or
output rather than hours worked;
(iii) performs services pursuant to a written contract stating that the
individual will not be considered an employee for federal and state tax
purposes; and
(iv) does not rely exclusively on nonpersonal solicitation methods
such as telephone, mail or other telecommunication means to make sales;
(W) services performed as an election official or election worker, if
the total remuneration received in a calendar year is less than $1,000;
(X) services performed by agricultural workers admitted to the
United States under H-2A visas in accordance with 8 U.S.C. § 1101(a)(15)
(H)(ii)(a);
(Y) services performed by an owner-operator of a motor vehicle that
is leased or contracted to a licensed motor carrier with the services of a
driver and is considered an employee under the terms of the lease
agreement or contract with the licensed motor carrier for the purposes of
the federal insurance contribution act, 26 U.S.C. § 3101 et seq., the
federal social security act, 42 U.S.C. § 301 et seq., the federal
unemployment tax act, 26 U.S.C. § 3301 et seq., and the federal statutes
prescribing income tax withholding at the source, 26 U.S.C. § 3401 et seq.
Employees or agents of the owner-operator shall not be considered
employees of the licensed motor carrier for purposes of employment
security taxation or compensation. As used in this subparagraph, the
following definitions apply:
(i) "Motor vehicle" means any automobile, truck-trailer, semitrailer,
tractor, motor bus or any other self-propelled or motor-driven vehicle used
upon any of the public highways of Kansas for the purpose of transporting
persons or property;
(ii) "licensed motor carrier" means any person, firm, corporation or
other business entity that holds a certificate of convenience and necessity
or a certificate of public service from the state corporation commission or
is required to register motor carrier equipment pursuant to 49 U.S.C. §
14504; and
(iii) "owner-operator" means a person, firm, corporation or other
business entity that is the owner of a single motor vehicle that is driven
exclusively by the owner under a lease agreement or contract with a
licensed motor carrier; and
(Z) (i) services performed by a petroleum landman under a
contractual arrangement, provided such individual is not acting as a
corporate officer. "Petroleum landman" includes a person performing one
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or more of the following services:
(a) Negotiating acquisition or divestiture of mineral rights;
(b) negotiating agreements for mineral exploration or development;
(c) researching public or private records to determine mineral
ownership;
(d) reviewing and curing title defects or providing due diligence;
(e) managing mineral rights or obligations derived from such rights;
or
(f) coordinating unitization or pooling of mineral interests;
(ii) This exclusion does not apply to services performed for a
governmental entity, a federally recognized Indian tribe or an
organization described in 26 U.S.C. § 501(c)(3) that is exempt under 26
U.S.C. § 501(a).
(y) "Employment office" means any office operated or authorized by
the department of labor or the department of commerce, as applicable, for
the purpose of connecting individuals with employment opportunities and
workforce services.
(z) "Employment security administration fund" means the fund from
which all administrative expenses for the Kansas unemployment insurance
program are paid.
(aa) "Experience rating factors" means the components used to
calculate an employer's contribution rate, including the employer's
cumulative benefit charges, contributions paid and annual taxable payroll
over the relevant experience period as defined in K.S.A. 44-710a, and
amendments thereto.
(bb) "Federal unemployment trust fund" means the fund established
under 42 U.S.C. § 1104 that is held by the secretary of the treasury of the
United States and where each state maintains a separate account for the
deposit and requisition of unemployment insurance contributions and
benefit payments.
(cc) "Fraud" means knowingly making a false statement or
representation or knowingly failing to disclose a material fact in order to
obtain or increase unemployment benefits in violation of this act or any
other unemployment compensation law administered by the secretary.
(dd) "Improper payment" means any unemployment benefit paid to a
claimant who was not eligible for such benefits or who failed to comply
with applicable eligibility conditions, including payments issued as a
result of administrative error, claimant error or fraud.
(ee) "Institution of higher education" means an accredited, nonprofit
or public educational institution authorized to offer programs beyond high
school and award degrees or training for gainful employment.
(ff) "Insured work" means employment for a covered employer under
the employment security law.
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(gg) "Lessor employing unit" means any individual, organization,
partnership, corporation or other legal entity that provides its employees
to one or more client lessees through a contractual arrangement and that
retains the right to hire, assign, reassign and discharge those employees.
(hh) (1) "Meritorious service award" means a non-monetary form of
recognition authorized by the secretary to honor eligible employees for
continuous or cumulative satisfactory service in the administration of the
employment security law, provided that a majority of such employee's
compensation is paid from the employment security administration fund.
(2) Such awards may include, but are not limited to, service pins,
certificates, framed commendations, engraved plaques or other modest
commemorative items.
(3) The total cost of each award, including materials and
presentation, shall not exceed $100 per employee, unless a higher amount
is explicitly authorized in the agency's annual administrative budget and
approved in accordance with federal grant requirements.
(4) All meritorious service award expenses shall be paid from the
employment security administration fund and shall comply with applicable
federal cost principles, including 2 C.F .R. Part 200, and relevant United
States department of labor conformity requirements or guidance,
including ETA Handbook 401.
(ii) "Negative account balance" means the condition in which the
total benefit charges to an employer's account exceed the total
contributions paid and any other credits assigned to such account as of
the applicable computation date.
(jj) "Negative account balance employer" means any eligible
employer whose cumulative unemployment insurance benefit charges
exceed the total contributions that the employer has paid into the system
over all applicable years.
(kk) "Pay period" means a period of not more than 31 consecutive
days for which remuneration is ordinarily paid.
(ll) (1) "Performance of official duties" means the administration or
enforcement of federal, state or local law, including, but not limited to, the
collection of debts owed to courts and the enforcement of child support
obligations.
(2) "Performance of official duties" includes conducting research
directly related to the administration of such laws.
(3) "Performance of official duties" does not include solicitation of
contributions or expenditures to or on behalf of any candidate for public
office, political party or political action committee.
(mm) "Pooled money investment board" means the board established
pursuant to K.S.A. 75-4221a, and amendments thereto, responsible for
investing idle funds of the state and authorizing loans to the employment
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security fund pursuant to K.S.A. 75-4209(d), and amendments thereto.
(nn) "Predecessor employer" means an employer who has previously
operated a business or portion of a business involving employment to
which another employer has succeeded, whether by acquisition, merger,
consolidation or any other form of legal succession.
(oo) "Qualifying injury" means a work-related injury covered under
the Kansas workers compensation act, K.S.A. 44-501, and amendments
thereto.
(pp) "Rate group" means the classification assigned to an employer
based on the employer's reserve ratio under standard rate schedule G.
(qq) "Rate year" means the calendar year beginning on January 1
and ending on December 31 during which an employer's assigned
unemployment insurance contribution rate is in effect.
(rr) "Rated governmental employer" means any governmental entity
that elects to finance unemployment compensation benefits by making
contributions as provided pursuant to K.S.A. 44-710d, and amendments
thereto, through periodic payments determined by experience rating
rather than on a reimbursement basis.
(ss) (1) "Reasonable commute" means the geographic distance,
travel time and available transportation options that are customarily
accepted by workers in the individual's customary occupation and labor
market area.
(2) A commute is presumed reasonable if it does not exceed the
distance or time the individual traveled for prior employment, unless
substantially equivalent work is available closer to the individual's
residence.
(3) Reasonableness shall take into account the claimant's physical
capabilities, transportation limitations and labor market conditions.
(tt) "Reemployment services" means:
(1) Services provided to unemployment insurance claimants to assist
with rapid return to work, including, but not limited to, job search
assistance, job placement services, skills assessments, resume writing
assistance, labor market information, career counseling and referrals to
training or support services.
(2) Reemployment services may be provided by the department of
labor, KansasWorks or other entities authorized under federal or state
workforce programs.
(3) Failure to participate in reemployment services without good
cause may result in disqualification pursuant to K.S.A. 44-705, and
amendment thereto.
(uu) "Reimbursing employer" means an employer who elects to make
payments in lieu of contributions as allowed by law.
(vv) "Requisition" means the process by which the secretary formally
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HB 2764 44
requests the transfer of funds from this state's account in the federal
unemployment trust fund to the benefit account for the purpose of paying
unemployment insurance benefits.
(ww) "Reserve fund ratio" means the ratio of total trust fund assets,
excluding federal funds not withdrawn and uncollected contributions, to
total contributing employer payrolls for the preceding fiscal year ending
on June 30.
(xx) "Secretary" means the secretary of labor of the state of Kansas.
(yy) "Section 903 funds" means moneys credited to the state's
account in the federal unemployment trust fund under 42 U.S.C. § 1103
and may include funds made available for administration of the
unemployment insurance program or public employment offices, subject to
federal and state conditions.
(zz) "Solvency certification" means the annual report prepared by the
secretary pursuant to K.S.A. 44-712(g), and amendments thereto,
evaluating the status of the unemployment insurance trust fund and its
ability to meet benefit obligations under varying economic scenarios.
(aaa) "Standard rate schedule" means the base contribution rate
schedule adopted by the secretary and published annually pursuant to
K.S.A. 44-710a, and amendments thereto, without application of solvency
or credit adjustments.
(bbb) "State" includes the states of the United States, the District of
Columbia, Puerto Rico, the Virgin Islands and any dependency of the
United States.
(ccc) "Statewide average annual wage" means the total annual
covered wages divided by the average number of employees, rounded to
the nearest cent.
(ddd) "Statewide average weekly wage" means the statewide average
annual wage divided by 52, rounded to the nearest cent.
(eee) "Successor employer" means any employer who acquires
substantially all of the operations or assets of another employer.
(fff) "Supplemental unemployment benefit plan" means a private,
employer-sponsored plan that provides additional income to an eligible
individual who is unemployed due to a temporary layoff, designed to
supplement state unemployment compensation without disqualifying the
recipient from benefits, consistent with federal guidance under IRS
revenue rulings 56-249 and 90-72 and 26 U.S.C. § 501(c)(17).
Supplemental unemployment benefit plans shall comply with the
requirements set forth in section 2, and amendments thereto.
(ggg) (1) "Temporary unemployment" means a period during which
an individual is completely separated from employment due to a short-
term, bona fide interruption of work with a reasonable expectation of
recall to the same employer, under conditions that:
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HB 2764 45
(A) Are attributable to temporary economic conditions, seasonal
operations, equipment maintenance, inventory adjustments, weather-
related interruptions or other similar short-term business circumstances;
(B) are designated in writing by the employer at the time of
separation, including an estimated duration of the temporary
unemployment;
(C) are not intended to be permanent, indefinite or open-ended; and
(D) except as otherwise provided by K.S.A. 44-775, and amendments
thereto, do not exceed eight weeks in duration.
(2) Temporary unemployment does not include partial reduction in
hours or partial unemployment.
(3) The employer shall affirmatively remove the designation of
temporary unemployment if the circumstances giving rise to the
designation materially change, including when the employer no longer has
a reasonable expectation of recall within a determinable period or when
the individual becomes fully unemployed without expectation of recall or
permanently separated, and shall notify the secretary in the manner
prescribed by the secretary.
(4) The secretary may require documentation sufficient to verify that
the designation of temporary unemployment is consistent with the
conditions set forth in this subsection.
(5) An extension of additional weeks of temporary unemployment at
the request of an employer for an individual may be granted by the
secretary as provided by K.S.A. 44-775, and amendments thereto.
(6) The maximum amount of temporary unemployment for an
individual in a benefit year, including any extension granted by the
secretary, shall be as provided by K.S.A. 44-775, and amendments thereto.
(7) An individual shall not be considered to be on temporary
unemployment if the employer has no reasonable expectation of recall
within a determinable period or if the designation is used to avoid
obligations otherwise applicable under this act.
(hhh) "Training program" means:
(1) A course or series of courses, classes, apprenticeships or
structured learning activities offered by an educational institution, public
agency or approved provider that is designed to enhance the claimant's
occupational skills, employability or ability to obtain suitable work.
(2) Approved training programs may include, but are not limited to,
those under:
(A) The workforce innovation and opportunity act, 29 U.S.C. Ch. 32;
(B) the trade adjustment assistance act, 19 U.S.C. §§ 2271 et seq.;
(C) community or technical colleges; and
(D) other vocational or remedial instruction approved by the
secretary.
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(iii) "Trust fund account" means this state's separate account within
the federal unemployment trust fund:
(1) That is used to hold all contributions collected under the
employment security law; and
(2) from which moneys are requisitioned to the benefit account for
the payment of unemployment insurance benefits.
(jjj) "Trust fund solvency standard" means the minimum financial
benchmark, as recommended by the United States department of labor,
indicating whether a state's unemployment insurance trust fund has
sufficient reserves to withstand a recession, typically measured using the
average high cost multiple.
(lll) "Unemployment insurance benefits" or "unemployment
compensation benefits" means the monetary payments provided to eligible
claimants under the employment security law and federal law for periods
of unemployment, including regular benefits, extended benefits and any
federally funded or supplemental unemployment compensation.
(mmm) "Unemployment" means the status of an individual who
performs no services and receives no wages in a given week or performs
less than full-time work and earns less than such individual's weekly
benefit amount.
(nnn) (1) "Unemployment insurance" means the system established
under the employment security law to provide temporary income support
to eligible individuals who are unemployed through no fault of their own
and who meet the requirements set forth in the employment security law.
(2) "Unemployment insurance" includes all benefits, contributions,
eligibility criteria, administrative procedures and enforcement provisions
governed by the employment security law and applicable federal law.
(ooo) "Wage combining plan" means a uniform national
arrangement:
(1) Approved by the United States secretary of labor in consultation
with state unemployment compensation agencies in which the state of
Kansas participates;
(2) where wages earned in one or more participating states are
transferred to another state, referred to as the "paying state," and
combined with wages earned in the paying state, if any, for the purpose of
determining eligibility for and the payment of benefits under the
unemployment compensation laws of the paying state in accordance with
the arrangement approved by the secretary of labor.
(ppp) (1) "Wages" means all forms of compensation provided to an
individual in exchange for services rendered. This includes commissions,
bonuses, back pay and the fair cash value of any noncash remuneration or
benefits. The cash value of noncash compensation shall be determined in
accordance with rules and regulations issued by the secretary.
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Compensation that has not been received by the individual within 21 days
after the end of the pay period in which it was earned shall be considered
paid on the 21 st day after that pay period. Effective January 1, 1986,
gratuities, including tips received from any source other than the
employing unit, shall be considered wages when reported in writing to the
employer by the employee. Employees must report in writing all tips
totaling $20 or more in a calendar month, whether received directly or
through a credit card from the customer or passed through by the
employer. Wages paid pursuant to back pay awards or settlements shall be
allocated to the specific weeks outlined in the award or agreement. If the
award or agreement lacks such specificity, the secretary shall allocate
such wages to the weeks in which the compensation, in the secretary's
judgment, would have ordinarily been paid.
(2) "Wages" does not include the following:
(A) For calendar years 2016 through 2025, remuneration exceeding
$14,000 paid to an individual in a calendar year by an employer or such
employer's predecessor. If the federal unemployment tax act increases this
threshold, Kansas shall conform to the higher amount;
(B) (i) for contributing rated employers assigned to rate groups 0-
N11, beginning in 2026, the following thresholds apply, based on a
percentage of the statewide average annual wage as determined by the
secretary, rounded to the nearest $100:
(a) 2026–2027: 25%;
(b) 2028: 30%;
(c) 2029: 35%;
(d) 2030–2031: 40%; and
(e) 2032 and beyond: 40%, increasing to 45% if any combination of
employer rate schedules G–M is in effect for five consecutive years
following 2031. Once increased to 45%, the threshold shall remain
regardless of future schedule changes;
(ii) if the federal unemployment tax act is amended to set a higher
threshold than provided above, Kansas shall adopt the federal threshold;
(C) payments made under an employer-established plan or system
covering employees or classes thereof, or such employee's dependents,
made for:
(i) Sickness or accident disability, excluding workers' compensation
payments;
(ii) medical or hospitalization expenses related to sickness or
disability; or
(iii) death benefits;
(D) payments related to sickness, accident or hospitalization made by
an employer after six months following the employee's last month of work;
(E) payments made to or for an employee or beneficiary from a tax-
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HB 2764 48
qualified retirement plan or annuity, including, but not limited to:
(i) Plans under 26 U.S.C. §§ 401(a), 403(a), 403(b), 408(k) and
457(b);
(ii) supplemental cost-of-living pension payments under 29 U.S.C. §
1002(2)(B)(ii); and
(iii) cafeteria plans under 26 U.S.C. § 125;
(F) employer-paid social security tax for domestic or agricultural
workers, when not deducted from the employee's wages;
(G) noncash remuneration for work outside the employer's trade or
business;
(H) moving expense reimbursements that qualify as deductible under
26 U.S.C. § 217;
(I) severance or death or disability-related payments made under an
employer-established plan and conditioned on the employee's separation
due to retirement or death;
(J) noncash payments for agricultural labor;
(K) dependent care benefits excludable under 26 U.S.C. § 129;
(L) meals or lodging provided by the employer excludable under 26
U.S.C. § 119;
(M) payments made to the estate or survivors of a deceased employee
in the year following the employee's death;
(N) educational or fringe benefits excludable under 26 U.S.C. §§
74(c), 117 or 132;
(O) educational assistance benefits excludable under 26 U.S.C. §
127;
(P) health savings account contributions excludable under 26 U.S.C.
§ 106(d).
(Q) payments made under an approved employer-funded
supplemental unemployment benefit plan, provided such payments meet
the requirements of 26 U.S.C. § 3306(b)(9) revenue rulings 56-249 and
90-72, and are not paid in a lump sum or in lieu of wages. For recognition
purposes under the Kansas employment security law, such plans shall
comply with the requirements of section 2, and amendments thereto.
(3) None of the exclusions in paragraph (2), except subparagraphs
(2)(A) and (B), shall exclude:
(A) Employer contributions to qualified 401(k) plans not included in
income under 26 U.S.C. § 402(a)(8); or
(B) contributions treated as employer contributions under 26 U.S.C.
§ 414(h)(2).
(4) Deferred compensation under a nonqualified deferred
compensation plan shall be treated as wages at the later of the time that
services are performed or the right to the compensation is no longer
subject to substantial risk of forfeiture. Such deferred wages and their
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HB 2764 49
attributable income shall not be treated as wages again once counted.
"Nonqualified deferred compensation plan" means any plan not described
in paragraph (2)(E).
(qqq) "Week" means a seven-day period as defined by regulation of
the secretary.
Sec. 6. K.S.A. 2025 Supp. 44-704 is hereby amended to read as
follows: 44-704. (a) Payment of benefits. All benefits provided herein shall
be payable from the fund. All benefits shall be paid through the secretary
of labor, in accordance with such rules and regulations as the secretary
may adopt. Benefits based on service in employment defined in K.S.A. 44-
703(i)(3)(E) and (i)(3)(F), and amendments thereto, shall be payable in the
same amount, on the same terms and subject to the same conditions as
compensation payable on the basis of other service subject to this act
except as provided in K.S.A. 44-705(e) and 44-711(e), and amendments
thereto.
(b) Determined weekly benefit amount. An individual's determined
weekly benefit amount shall be an amount equal to 4.25% of the
individual's total wages for insured work paid during that calendar quarter
of the individual's base period that such total wages were highest, subject
to the following limitations:
(1) If an individual's determined weekly benefit amount is less than
the minimum weekly benefit amount, it shall be raised to such minimum
weekly benefit amount;
(2) if the individual's determined weekly benefit amount is more than
the maximum weekly benefit amount, it shall be reduced to the maximum
weekly benefit amount; and
(3) if the individual's determined weekly benefit amount is not a
multiple of $1, it shall be reduced to the next lower multiple of $1.
(c) Maximum weekly benefit amount. For initial claims effective on or
after July 1, 2024, the maximum weekly benefit amount shall be
determined as follows: On July 1 of each year, the secretary shall
determine the maximum weekly benefit amount by computing 55% of the
statewide average weekly wages paid to employees in insured work during
the previous calendar year and shall, prior to that date, announce the
maximum weekly benefit amount so determined by publication in the
Kansas register. Such computation of the statewide average weekly wage
shall be made by dividing the statewide average annual wage, as defined in
K.S.A. 44-703(jj), and amendments thereto, determined for the period of
the previous calendar year, by 52, as set forth by K.S.A. 44-703(kk), and
amendments thereto. The maximum weekly benefit amount so determined
and announced for the 12-month period shall apply only to those claims
filed in that period qualifying for maximum payment under the foregoing
formula. All claims qualifying for payment at the maximum weekly
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benefit amount shall be paid at the maximum weekly benefit amount in
effect when the benefit year to which the claim relates was first
established, notwithstanding a change in the maximum benefit amount for
a subsequent 12-month period. If the computed maximum weekly benefit
amount is not a multiple of $1, then the computed maximum weekly
benefit amount shall be reduced to the next lower multiple of $1.
(d) Minimum weekly benefit amount. The minimum weekly benefit
amount payable to any individual shall be 25% of the maximum weekly
benefit amount effective as of the beginning of the individual's benefit
year. If the minimum weekly benefit amount is not a multiple of $1 it shall
be reduced to the next lower multiple of $1. The minimum weekly benefit
amount shall apply through the benefit year, notwithstanding a change in
the minimum weekly benefit amount.
(e) All claims qualifying for payment at the maximum weekly benefit
amount shall be paid at the maximum weekly benefit amount in effect
when the benefit year to which the claim relates was first established,
notwithstanding a subsequent change in the maximum weekly benefit
amount.
(f) Weekly benefit payable . Each eligible individual who is
unemployed with respect to any week, except as to final payment, shall be
paid with respect to such week a benefit in an amount equal to such
individual's determined weekly benefit amount, less that part of the wage,
if any, payable to such individual with respect to such week that is in
excess of the amount that is equal to 25% of such individual's determined
weekly benefit amount, and if the resulting amount is not a multiple of $1,
it shall be reduced to the next lower multiple of $1.
(1) For the purposes of this section, remuneration received under the
following circumstances shall be construed as wages:
(A) Vacation or holiday pay that was attributable to a week that the
individual claimed benefits; and
(B) severance pay, if paid as scheduled, and all other employment
benefits within the employer's control, as defined in subsection (f)(3), if
continued as though the severance had not occurred, except as set out in
subsection (f)(2)(C).
(2) For the purposes of this section, remuneration received under the
following circumstances shall not be construed as wages:
(A) Remuneration received for services performed on a public
assistance work project;
(B) severance pay, in lieu of notice, under the provisions of public
law 100-379, the federal worker adjustment and retraining notification act,
29 U.S.C. §§ 2101 through 2109;
(C) all other severance pay, separation pay, bonuses, wages in lieu of
notice or remuneration of a similar nature that is payable after the
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HB 2764 51
severance of the employment relationship, except as set out in subsection
(f)(1)(B); and
(D) moneys received as federal social security payments.
(3) For the purposes of this subsection, "employment benefits within
the employer's control" means benefits offered by the employer to
employees that are employee benefit plans as defined by section 3 of the
federal employee retirement income security act of 1974, as amended, 29
U.S.C. § 1002, and that the employer has the option to continue to provide
to the employee after the last day that the employee worked for that
employer.
(g) Duration of benefits . Any otherwise eligible individual shall be
entitled during any benefit year to a total amount of benefits equal to
whichever is the lesser of 26 times such individual's weekly benefit
amount, or 1/3 of such individual's wages for insured work paid during such
individual's base period. Such total amount of benefits, if not a multiple of
$1, shall be reduced to the next lower multiple of $1.
(h) For the purposes of this section, wages shall be counted as "wages
for insured work" for benefit purposes with respect to any benefit year
only if such benefit year begins subsequent to the date when the
employing unit by whom such wages were paid has satisfied the
conditions of K.S.A. 44-703(h), and amendments thereto, with respect to
becoming an employer.
(i) Notwithstanding any other provisions of this section to the
contrary, any benefit otherwise payable for any week shall be reduced by
the amount of any separation, termination, severance or other similar
payment paid to a claimant at the time of or after the claimant's separation
from employment during the benefit year.
(1) If any payment pursuant to this subsection is paid with respect to
a month, then the amount deemed to be received with respect to any week
during such month shall be computed by multiplying such monthly
amount by 12 and dividing the product by 52. If there is no designation of
the period with respect to which payments to an individual are made under
this section, then an amount equal to such individual's normal weekly
wage shall be attributed to and deemed paid with respect to the first and
each succeeding week following payment of the separation pay to the
individual until such amount so paid is exhausted.
(2) If benefits for any week, when reduced as provided in this
subsection, result in an amount that is not a multiple of $1, such benefits
shall be rounded to the next lower multiple of $1.
(3) Notwithstanding the reemployment provisions of K.S.A. 44-
705(e), and amendments thereto, any individual whose benefit amount is
completely reduced under this subsection for 52 or more weeks shall, upon
exhaustion of the separation pay, be entitled to a new benefit year based
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upon entitlement from the base period of the claim that was reduced.
(j) (1) For weeks commencing on and after September 5, 2021, if at
the beginning of the benefit year, the three-month seasonally adjusted
average unemployment rate for the state of Kansas is: (1) Less than 5%, a
claimant shall be eligible for a maximum of 16 weeks of benefits; (2) at
least 5% but less than 6%, a claimant shall be eligible for a maximum of
20 weeks of benefits; or (3) at least 6%, a claimant shall be eligible for a
maximum of 26 weeks of benefits.
(2) The maximum number of weeks of benefits allowed in a benefit
year pursuant to paragraph (1) shall apply to the combined total of any
weeks of traditional and temporary unemployment in such benefit year.
(k) Upon the secretary of labor's receipt of notification that the
claimant has become employed, the secretary shall notify the secretary of
the department for children and families in order that the secretary for
children and families may determine the claimant's eligibility for state or
federal benefits provided or facilitated by the department for children and
families. The department of labor and the department for children and
families shall enter into a memorandum of understanding that shall
provide for the transfer of information as provided in this subsection. (a)
Benefit payments.
(1) All unemployment insurance benefits shall be paid from the
unemployment insurance trust fund and administered by the secretary of
labor in accordance with applicable rules and regulations.
(2) All benefit payments made under the employment security law
shall be issued with the greatest promptness that is administratively
feasible and in accordance with the standards of promptness established
under 42 U.S.C. § 503(a)(1) and (5) and applicable federal regulations.
(3) The following services shall be paid on equal terms and
conditions as other covered services, except as modified under K.S.A. 44-
705(e) and 44-711(e), and amendments thereto:
(A) Services for state, local or tribal governments and political
subdivisions, as well as joint instrumentalities with Indian tribes that are
deemed "employment" pursuant to K.S.A. 44-703, and amendments
thereto; and
(B) services for religious, charitable or educational organizations
that are deemed "employment" pursuant to K.S.A. 44-703, and
amendments thereto.
(b) Weekly benefit amount. An individual's weekly benefit amount
shall equal 4.25% of the total wages paid during the highest-earning
calendar quarter in the individual's base period. The weekly benefit
amount is subject to the following:
(1) If the calculated weekly benefit amount is less than the minimum
weekly amount, the calculated weekly benefit amount shall be increased to
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such minimum.
(2) If the calculated weekly benefit amount exceeds the maximum
allowed, the calculated weekly benefit amount shall be reduced to the
maximum.
(3) If not a whole dollar, the calculated weekly benefit amount shall
be rounded down to the next lower dollar.
(c) Maximum weekly benefit a mount. (1) Beginning July 1, 2024, the
maximum weekly benefit amount shall be 55% of the statewide average
weekly wage from the previous calendar year. The maximum weekly
benefit amount shall remain fixed for the duration of each benefit year. If
the computed amount is not a whole dollar, the maximum weekly benefit
amount shall be rounded down.
(2) Prior to July 1 each year, the secretary shall announce the
maximum weekly benefit amount so determined by publication in the
Kansas register.
(d) Minimum weekly benefit amount. (1) The minimum weekly benefit
amount shall:
(A) Be 25% of the maximum weekly benefit amount that is effective at
the start of the individual's benefit year;
(B) remain fixed for that benefit year; and
(C) be rounded down to the nearest whole dollar.
(2) Prior to July 1 each year, the secretary shall announce the
minimum weekly benefit amount so determined by publication in the
Kansas register.
(e) Weekly benefits for partial u nemployment. (1) Eligible individuals
shall receive a weekly benefit amount reduced by any wages earned
during the benefit week that exceed 25% of such individual's weekly
benefit amount.
(2) The result shall be rounded down to the nearest dollar.
(f) Treatment of other payments. (1) Payments treated as wages
include:
(A) Vacation or holiday pay that is attributable to the claimed week;
and
(B) severance or employer-provided benefits that continue post-
separation, unless excluded below.
(2) Payments not treated as wages include:
(A) Public assistance work program earnings;
(B) severance in lieu of notice under 29 U.S.C. Ch. 23;
(C) lump-sum severance or bonuses unrelated to ongoing benefits;
(D) social security payments; and
(E) payments made under an approved employer-funded
supplemental unemployment benefit plan for the purposes of benefit offset,
provided the plan meets the requirements of 26 U.S.C. § 3306(b)(9), IRS
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revenue rulings 56-249 and 90-72 and section 2, and amendments thereto.
(g) Total benefit entitlement during benefit year. (1) (A) Any
otherwise eligible individual shall be entitled to a maximum total amount
of benefits during any benefit year equal to the lesser of:
(i) The individual's determined weekly benefit amount multiplied by
the maximum number of weeks of benefits for which the individual is
eligible during the benefit year as determined pursuant to subsection (h)
of this section; or
(ii) one-third of the individual's wages for insured work paid during
the individual's base period.
(B) Such total amount of benefits, if not a multiple of $1, shall be
reduced to the next lower multiple of $1.
(2) (A) Notwithstanding the provisions of paragraph (1), if an
individual is designated by the individual's employer as being on
temporary unemployment as defined in K.S.A. 44-703, and amendments
thereto, the individual's total benefit entitlement during the benefit year
shall be limited to an amount equal to the individual's determined weekly
benefit amount multiplied by not more than eight weeks, regardless of the
maximum number of weeks otherwise applicable under subsection (h) of
this section.
(B) Such limitation shall apply only during the period in which the
individual is designated as being on temporary unemployment and shall
not diminish the individual's remaining balance of benefit entitlement
otherwise payable during the benefit year if the individual subsequently
becomes fully unemployed.
(3) Upon designation of an individual as being on temporary
unemployment, the secretary shall issue a monetary determination to the
employer that submitted the designation. Such determination shall clearly
state that:
(A) Benefits payable during the period of temporary unemployment
are limited to not more than eight weeks; and
(B) benefit exhaustion for purposes of temporary unemployment shall
occur upon payment of eight weeks of benefits, unless an extension is
approved pursuant to K.S.A. 44-775, and amendments thereto.
(4) Benefits paid during a period of temporary unemployment,
including any extension approved pursuant to K.S.A. 44-775, and
amendments thereto, shall be charged in the same manner and to the same
extent as other unemployment insurance benefits paid during the benefit
year and shall not be treated as a separate or nonchargeable category of
benefits.
(5) Upon designation of an individual as being on temporary
unemployment, the secretary shall issue a written notice to the individual.
Such notice shall clearly state that:
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HB 2764 55
(A) Benefits payable during the period of temporary unemployment
are limited to not more than eight weeks;
(B) benefit exhaustion for purposes of temporary unemployment shall
occur upon payment of eight weeks of benefits, unless an extension is
approved pursuant to K.S.A. 44-775, and amendments thereto; and
(C) such limitation applies only during the period of temporary
unemployment and does not reduce the individual's remaining entitlement
to benefits otherwise payable during the benefit year if the individual
subsequently becomes fully unemployed.
(6) Nothing in this subsection shall be construed to alter the
treatment of supplemental unemployment benefit payments made pursuant
to a bona fide supplemental unemployment benefit plan under applicable
state or federal law.
(h) Variable duration based on state unemployment rate. (1) For
weeks commencing on or after September 5, 2021, the maximum total
number of weeks an individual may receive unemployment insurance
benefits during a benefit year, including weeks of traditional
unemployment and temporary unemployment, shall be determined by the
three-month seasonally adjusted average unemployment rate for the state
of Kansas at the beginning of the benefit year, as follows. If the seasonally
adjusted average employment rate is:
(A) Less than 5%, the claimant shall be eligible for up to 16 weeks of
benefits;
(B) at least 5% but less than 6%, the claimant shall be eligible for up
to 20 weeks of benefits; and
(C) 6% or higher, the claimant shall be eligible for up to 26 weeks of
benefits.
(i) Qualifying wages. Only wages from employers shall count toward
benefit eligibility.
(j) Reduction for separation p ayments. Benefits shall be reduced by
any separation pay, termination pay or similar compensation received
after separation.
(1) Monthly payments shall be prorated weekly as follows: Monthly
amount × 12 ÷ 52.
(2) If no period is specified, the claimant's normal weekly wage shall
be assigned until the amount is exhausted.
(3) If benefits are fully offset for 52 or more weeks due to separation
pay, the individual may establish a new benefit year using the same base
period.
(k) Interagency employment notification. When the secretary of labor
receives notice of a claimant's return to work, the secretary shall notify the
secretary for children and families to assess eligibility for other state or
federal assistance. A memorandum of understanding shall govern secure
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and timely data exchange between the agencies.
(l) For the purposes of this section, any payments received by a
claimant under an employer-sponsored supplemental unemployment
benefit plan recognized under section 2, and amendments thereto, shall
not be considered wages, earnings or disqualifying income, provided such
plan meets the conditions set forth in subsection (h) of that section.
Sec. 7. K.S.A. 44-704a is hereby amended to read as follows: 44-
704a. (a) Definitions. As used in this section, unless the context clearly
requires otherwise:
(1) "Extended benefit period" means a period which:
(A) Begins with the third week after a week for which there is an
"on" indicator; and
(B) ends with either of the following weeks, whichever occurs later:
(i) The third week after the first week for which there is an "off" indicator;
or (ii) the 13 th consecutive week of such period, except that no extended
benefit period may begin by reason of an "on" indicator before the 14 th
week following the end of a prior extended benefit period which was in
effect with respect to this state.
(2) For the purposes of this section:
(A) There is an "on" indicator for this state for a week if the secretary
of labor determines, in accordance with the regulations of the United
States secretary of labor, that, for the period consisting of such week and
the immediately preceding 12 weeks, the rate of insured unemployment
(not seasonally adjusted) under this act: (i) Equaled or exceeded 5% and
equaled or exceeded 120% of the average of such rates for the
corresponding 13-week period ending in each of the preceding two
calendar years and the state of Kansas pays a portion of such benefits in
accordance with the provisions of K.S.A. 44-710(c)(2)(C) and 44-710(e),
and amendments thereto; or (ii) equaled or exceeded 5% and equaled or
exceeded 120% of the average of such rates for the corresponding 13-week
period ending in each of the preceding three calendar years and until on or
before the earlier of the latest date permitted under federal law or the end
of the fourth week prior to the last week for which federal sharing is
provided as authorized by section 2005(a) of public law 111-5 without
regard to section 2005(c) of public law 111-5; or (iii) equaled or exceeded
6%; or (iv) with respect to benefits for weeks of unemployment beginning
after March 6, 1993, (a) the average rate of total unemployment
(seasonally adjusted), as determined by the United States secretary of
labor, for the period consisting of the most recent three months for which
data for all states are published before the close of such week equals or
exceeds 6.5%, and (b) the average rate of total unemployment for this state
(seasonally adjusted), as determined by the United States secretary of
labor, for the three-month period referred to in clause (iv)(a)(1), equals or
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HB 2764 57
exceeds 110% of such average for either or both of the corresponding
three-month periods ending in the two preceding calendar years; or (2)
equals or exceeds 110% of such average for any or all of the
corresponding three-month periods ending in each of the three preceding
calendar years and until on or before the earlier of the latest date permitted
under federal law or the end of the fourth week prior to the last week for
which federal sharing is provided as authorized by section 2005(a) of
public law 111-5 without regard to section 2005(c) of public law 111-5.
(B) (i) There is an "off" indicator for this state for a week if the
secretary of labor determines, in accordance with the regulations of the
United States secretary of labor, that for the period consisting of such week
and the immediately preceding 12 weeks, the rate of insured
unemployment (not seasonally adjusted) under this act: (a) (1) Was less
than 5% or less than 120% of the average of such rates for the
corresponding 13-week period ending in each of the preceding two
calendar years; or (2) was less than 5% or less than 120% of the average of
such rates for the corresponding 13-week period ending in any or all of the
three preceding calendar years and until on or before the earlier of the
latest date permitted under federal law or the end of the fourth week prior
to the last week for which federal sharing is provided as authorized by
section 2005(a) of public law 111-5 without regard to section 2005(c) of
public law 111-5; and (b) was less than 5%.
(ii) There is an "off" indicator for this state for a week only if, for the
period consisting of such week and the immediately preceding 12 weeks,
none of the conditions specified in subsection (a)(2)(A) of this section
result in an "on" indicator.
(3) "Rate of insured unemployment," for purposes of paragraphs (2)
(A) and (2)(B) of this subsection, means the percentage derived by
dividing:
(A) The average weekly number of individuals filing claims for
regular benefits in this state for weeks of unemployment with respect to
the most recent 13-consecutive-week period, as determined by the
secretary of labor on the basis of reports to the United States secretary of
labor; by
(B) the average monthly employment covered under this act for the
first four of the most recent six completed calendar quarters ending before
the end of such 13-week period.
(4) "Extended entitlement period" of an individual means the period
consisting of the weeks of the individual's benefit year which begin in an
extended benefit period and, if the individual's benefit year ends within
such extended benefit period, any weeks thereafter which begin in such
period.
(5) "Extended benefits" means benefits (including benefits payable to
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HB 2764 58
federal civilian employees and to ex-service personnel pursuant to 5
U.S.C.A. chapter 85) payable to an individual under the provisions of the
act for weeks of unemployment in the individual's extended entitlement
period.
(6) "Exhaustee" means an individual who, with respect to any week
of unemployment in the individual's extended entitlement period:
(A) Has received, prior to such week, all of the regular benefits that
were available to the individual under this act or any other state law
(including dependents' allowances and benefits payable to federal civilian
employees and ex-service personnel under 5 U.S.C.A. chapter 85) in the
individual's current benefit year that includes such week, provided that, for
the purposes of this paragraph (6)(A), an individual shall be deemed to
have received all of the regular benefits that were available to the
individual although the individual may subsequently be determined to be
entitled to added regular benefits as a result of a pending appeal with
respect to wages that were not considered in the original monetary
determination of the individual's benefit year; or
(B) the individual's benefit year having expired prior to such week,
has no, or insufficient, wages on the basis of which the individual could
establish a new benefit year that would include such week; and
(C) (i) has no right to unemployment benefits or allowances, as the
case may be, under the federal railroad unemployment insurance act and
such other federal laws as are specified in regulations issued by the United
States secretary of labor; and (ii) has not received and is not seeking
unemployment benefits under the unemployment compensation law of
Canada; but if the individual is seeking such benefits and the appropriate
agency finally determines that the individual is not entitled to benefits
under such law the individual is considered an exhaustee.
(7) "State law" means the unemployment compensation law of any
state, approved by the United States secretary of labor under section 3304
of the federal internal revenue code of 1986.
(b) Payment of extended benefits. Extended benefits shall be payable
to eligible individuals with respect to weeks of unemployment in their
extended entitlement periods. The extended benefits provided by this
section and K.S.A. 44-704b, and amendments thereto, shall be payable
from the fund. All extended benefits shall be paid through the employment
offices, in accordance with such rules and regulations as the secretary of
labor may adopt.
(c) Beginning and termination of extended benefit period. (1)
Whenever an extended benefit period is to become effective in this state as
a result of an "on" indicator, or an extended benefit period is to be
terminated in this state as a result of an "off" indicator, the secretary of
labor shall make an appropriate public announcement.
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HB 2764 59
(2) Computations required by the provisions of subsection (a)(3) of
this section shall be made by the secretary of labor, in accordance with
regulations prescribed by the United States secretary of labor.
(d) Weekly extended benefit amount. The weekly extended benefit
amount payable to an individual for a week of total unemployment in the
individual's extended entitlement period shall be an amount equal to the
regular weekly benefit amount payable to the individual during the
individual's applicable benefit year, except that for any week during a
period in which federal payments to states under section 204 of the
federal-state extended unemployment compensation act of 1970 are
reduced pursuant to an order issued under section 252 of the federal
balanced budget and emergency deficit control act of 1985, the weekly
extended benefit amount payable to an individual for a week of total
unemployment in the individual's eligibility period shall be reduced by a
percentage amount which is equivalent to the reduction in the federal
payment. If such reduced weekly extended benefit amount is not a
multiple of $1, it shall be reduced to the next lower multiple of $1.
(e) Total extended benefit amount. (1) Except as otherwise provided
in subsection (e)(2) or (e)(3) of this section, the total extended benefit
amount payable to any eligible individual with respect to the individual's
applicable benefit year shall be the least of the following amounts:
(A) Fifty percent of the total amount of regular benefits which were
payable to the individual under this act in the individual's applicable
benefit year; or
(B) thirteen times the individual's weekly benefit amount which was
payable to the individual under this act for a week of total unemployment
in the applicable benefit year.
(2) Effective with respect to weeks beginning in a high
unemployment period, the provisions of subsection (e)(1) of this section
shall be applied by substituting "80%" for "50%" in subparagraph (A) of
that subsection (e)(1), and by substituting "20" for "13" in subparagraph
(B) of that subsection (e)(1). For purposes of this subsection (e)(2), the
term "high unemployment period" means any period during which an
extended benefit period would be in effect if the provisions of subsection
(a)(2)(A)(iii) of this section were applied after substituting "8%" for
"6.5%" in clause (a) of that subsection (a)(2)(A)(iii).
(3) During any fiscal year in which federal payments to states under
section 204 of the federal-state extended unemployment compensation act
of 1970 are reduced pursuant to an order issued under section 252 of the
federal balanced budget and emergency deficit control act of 1985, the
total extended benefit amount payable to an individual with respect to the
individual's applicable benefit year shall be reduced by an amount equal to
the total of all of the reductions under subsection (d) of this section in the
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HB 2764 60
weekly extended benefit amounts paid to the individual.
(f) Eligibility requirements for extended benefits. An individual shall
be eligible to receive extended benefits with respect to any week of
unemployment in the individual's extended entitlement period only if the
secretary of labor, or a person or persons designated by the secretary, finds
that with respect to such week:
(1) The individual is an "exhaustee" as defined in subsection (a)(6) of
this section;
(2) the individual is qualified and eligible for extended benefits
pursuant to K.S.A. 44-704b, and amendments thereto;
(3) the individual is entitled to benefits pursuant to the provisions of
this act which apply to claims for, or the payment of regular benefits which
are not inconsistent with the provisions of K.S.A. 44-704b, and
amendments thereto; and
(4) the individual, during the base period, (A) was paid wages for
insured work equal to or greater than 1½ times the amount of total wages
paid for the quarter in which such wages were highest during the
individual's base period; or (B) has been paid an amount equal to or
exceeding 40 times the individual's most recent weekly benefit amount in
the individual's base period.
(g) Limitation on amount of combined regular, extended and trade
readjustment act benefits received. Notwithstanding any other provisions
of this section or K.S.A. 44-704b, and amendments thereto, if the benefit
year of any individual ends within an extended entitlement period, the
remaining balance of extended benefits that the individual would, but for
this section, be entitled to receive in that extended entitlement period, with
respect to weeks of unemployment beginning after the end of the benefit
year, shall be reduced (but not below zero) by the product of the number of
weeks for which the individual received any amounts as trade
readjustment allowances within that benefit year, multiplied by the
individual's weekly benefit amount for extended benefits.
(a) Definitions. For the purposes of this section, unless otherwise
indicated:
(1) "Exhaustee" means an individual who, for a given week in the
extended entitlement period:
(A) Has received all regular benefits available under this or another
state's law;
(B) cannot establish a new benefit year due to insufficient wages;
(C) is not eligible for unemployment benefits under 45 U.S.C. Ch. 11;
or
(D) has not received or is not seeking benefits under Canadian law
or has been found ineligible for such benefits.
(2) "Extended benefits" means additional benefits payable under this
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HB 2764 61
act, including for federal employees and ex-service personnel under 5
U.S.C. Ch. 85, during an extended entitlement period.
(3) (A) "Extended benefit period" means a period that begins in the
third week following a week for which there is an "on" indicator and ends
in the later of:
(i) The third week after the first week for which there is an "off"
indicator; or
(ii) the 13th consecutive week of the extended benefit period.
(B) An extended benefit period shall not begin because of an "on"
indicator until at least 14 weeks have passed since the preceding extended
benefit period ended.
(4) "Extended entitlement period" means the weeks within an
individual's benefit year that fall within an extended benefit period and
any weeks beyond such year that fall within the extended benefit period.
(5) "High unemployment period" means a period when the United
States unemployment rate exceeds 8% and Kansas meets federal
thresholds.
(6) "On indicator" means:
(A) An "on" indicator exists for a given week in Kansas if the
secretary of labor determines, in accordance with United States
department of labor regulations, that:
(i) The rate of insured unemployment, not seasonally adjusted, for the
most recent 13-week period:
(a) Equals or exceeds 5%;
(b) is at least 120% of the average for the corresponding 13-week
periods in the two preceding calendar years;
(c) Kansas shares in funding extended benefits as provided pursuant
to K.S.A. 44-710, and amendments thereto;
(ii) the insured unemployment rate equals or exceeds 6%; or
(iii) on March 6, 1993:
(a) The United States' seasonally adjusted total unemployment rate
for the most recent 3-month period is at least 6.5%; and
(b) Kansas' 3-month average unemployment rate is at least 110% of
the same period in one or both of the two preceding years.
(B) The secretary shall conduct calculations under subparagraph (A)
(iii) in accordance with federal regulations.
(7) "Off indicator" means an "off indicator" exists if:
(A) None of the "on" indicator conditions are met for a given 13-
week period; or
(B) the insured unemployment rate falls below 5% or below 120% of
the corresponding periods in prior years.
(8) "Rate of insured unemployment" means the rate that is calculated
as the average weekly number of claims filed during the most recent 13
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HB 2764 62
weeks, divided by the average monthly covered employment for the first
four of the last six completed calendar quarters.
(9) "State law" means the unemployment compensation law of any
state of the United States approved under 26 U.S.C. § 3304.
(b) Payment of extended benefits. Extended benefits shall be paid to
eligible individuals during an extended entitlement period. Payments shall
be made in accordance with rules and regulations adopted by the
secretary of labor. Such benefits shall be paid from the unemployment
insurance trust fund.
(c) Supplemental unemployment benefit plans. Notwithstanding any
other provision of this section, payments made under a supplemental
unemployment benefit plan shall not be included in the computation of
earnings or used to reduce the amount of partial unemployment benefits
otherwise payable under this section.
(d) Notice. When an extended benefit period begins or ends, the
secretary of labor shall issue a public announcement.
(e) Weekly extended benefit amount. The weekly extended benefit
amount equals the individual's regular weekly benefit amount. If federal
reimbursement to states is reduced, benefits shall be reduced
proportionally. If not a multiple of $1, the amount shall be rounded down.
(f) Maximum duration of extended benefits. (1) The maximum
extended benefit amount in a benefit year is the lesser of:
(A) 50% of regular benefits paid; or
(B) the individual's weekly benefit amount multiplied by 13.
(2) During a high unemployment period, the limits shall be increased
to 80% and 20 weeks, respectively.
(3) If federal extended benefit funding is reduced, the maximum
payable benefit shall be reduced by the total reductions in weekly benefit
amounts under subsection (e).
(g) Eligibility for extended benefits. To be eligible for extended
benefits, an individual must:
(1) Be an exhaustee;
(2) meet eligibility pursuant to K.S.A. 44-704b, and amendments
thereto;
(3) satisfy all regular unemployment insurance eligibility criteria
consistent with K.S.A. 44-704b, and amendments thereto; and
(4) during the base period, have earned, at a minimum, such
individual's:
(A) Highest quarter wages multiplied by 1.5; or
(B) most recent weekly benefit amount multiplied by 40.
(h) Coordination with trade readjustment allowances. If an individual
received trade readjustment allowances during the benefit year, the
remaining extended benefit balance shall be reduced by the product of:
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(1) The number of weeks of trade readjustment allowance received;
and
(2) the individual's weekly extended benefit amount.
Sec. 8. K.S.A. 44-704b is hereby amended to read as follows: 44-
704b. (a) Cessation of extended benefits when paid under an interstate
claim in a state where an extended benefit period is not in effect:
(1) Except as provided in subsection (a)(2), an individual shall not be
eligible for extended benefits for any week if:
(A) Extended benefits are payable for such week pursuant to an
interstate claim filed in any state under the interstate benefit payment plan;
and
(B) no extended benefit period is in effect for such week in the state
where the claim for extended benefits was filed.
(2) Subsection (a)(1) shall not apply with respect to the first two
weeks for which extended benefits are payable, determined without regard
to this subsection, pursuant to an interstate claim filed under the interstate
benefit payment plan to the individual from the extended benefit account
established for the individual with respect to the benefit year.
(b) Disqualification conditions. (1) An individual shall be disqualified
for payment of extended benefits for any week of unemployment in the
individual's extended entitlement period and until the individual has been
employed in each of four subsequent weeks, whether or not consecutive,
and has had earnings of at least four times the weekly extended benefit
amount if the secretary of labor finds that during such period:
(A) The individual failed to accept any offer of suitable work, as
defined under subsection (b)(2), or failed to apply for any suitable work as
defined in subsection (b)(2) to which the individual was referred by the
secretary of labor; or
(B) the individual failed to actively engage in seeking work as
prescribed under subsection (b)(4).
(2) For purposes of this subsection (b), the term "suitable work"
means, with respect to any individual, any work which is within such
individual's capabilities, provided, however, that the gross average weekly
remuneration payable for the work must exceed the sum of:
(A) The individual's weekly extended benefit amount, plus the
amount, if any, of supplemental unemployment benefits, as defined in
section 501(c)(17)(D) of the internal revenue code of 1954, payable to
such individual for such week; and further,
(B) pays wages not less than the higher of:
(i) The minimum wage provided by section 6(a)(1) of the fair labor
standards act of 1938, without regard to any exemption; or
(ii) the applicable state or local minimum wage;
(C) except that no individual shall be denied extended benefits for
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failure to accept an offer of or apply for any job which meets the definition
of suitability as described above if:
(i) The position was not offered to such individual in writing by an
employing unit or was not listed with the employment service; or
(ii) such failure could not result in a denial of benefits under the
definition of suitable work for regular benefit claimants in subsection (c)
of K.S.A. 44-706, and amendments thereto, to the extent that the criteria of
suitability in that section are not inconsistent with the provisions of this
subsection (b)(2); or
(iii) the individual furnishes satisfactory evidence to the secretary of
labor that the individual's prospects for obtaining work in the individual's
customary occupation within a reasonably short period are good. If such
evidence is deemed satisfactory for this purpose, the determination of
whether any work is suitable with respect to such individual shall be made
in accordance with the definition of suitable work for regular benefit
claimants in subsection (c) of K.S.A. 44-706, and amendments thereto,
without regard to the definition specified by this subsection (b)(2).
(3) No work shall be determined suitable work for an individual
which does not accord with the labor standard provisions required by
section 3304(a)(5) of the internal revenue code of 1954. Notwithstanding
any other provisions of this act, an otherwise eligible individual shall not
be disqualified for refusing an offer of suitable employment, or failing to
apply for suitable employment when notified by an employment office, or
for leaving such individual's most recent work accepted during approved
training, if the acceptance of or applying for suitable employment or
continuing such work would require the individual to terminate approved
training and no work shall be deemed suitable and benefits shall not be
denied under this act to any otherwise eligible individual for refusing to
accept new work under any of the following conditions:
(A) If the position offered is vacant due directly to a strike, lockout or
other labor dispute;
(B) if the remuneration, hours or other conditions of the work offered
are substantially less favorable to the individual than those prevailing for
similar work in the locality; or
(C) if as a condition of being employed, the individual would be
required to join or to resign from or refrain from joining any labor
organization.
(4) For the purposes of subsection (b)(1)(B), an individual shall be
treated as actively engaged in seeking work during any week if:
(A) The individual has engaged in a systematic and sustained effort to
obtain work during such week; and
(B) the individual furnishes tangible evidence that the individual has
engaged in such effort during such week.
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(5) The employment service shall refer any individual entitled to
extended benefits under this act to any suitable work which meets the
criteria prescribed in subsection (b)(2). (a) Extended benefits paid through
interstate claims. (1) General disqualification. Except as provided in
paragraph (2), an individual shall not be eligible to receive extended
benefits for any week if:
(A) Such benefits are payable for that week under an interstate claim
filed pursuant to the interstate benefit payment plan; and
(B) no extended benefit period is in effect in the state where the
individual's claim was filed.
(2) Two-week exception. The disqualification under paragraph (1)
shall not apply to the first two weeks of extended benefits payable under
an interstate claim, without regard to this subsection, from the individual's
extended benefit account for the applicable benefit year.
(b) Disqualification from extended benefits. (1) An individual shall be
disqualified from receiving extended benefits for any week of
unemployment during such individual's extended entitlement period and
shall remain disqualified until the individual:
(A) Has been employed for at least four subsequent weeks, whether
consecutive or not; and
(B) has earned wages in an amount equal to or greater than four
times such individual's weekly extended benefit amount, if the secretary of
labor finds that, during the extended entitlement period, the individual:
(i) Failed to accept an offer of suitable work as defined in paragraph
(2), or apply for such work when referred by the secretary; or
(ii) failed to actively engage in a search for work as required under
subsection (d).
(2) For the purposes of this subsection, "suitable work" means any
employment that:
(A) Is within the individual's physical and mental capabilities;
(B) provides a gross average weekly remuneration that exceeds the
sum of:
(i) The individual's weekly extended benefit amount; and
(ii) any supplemental unemployment benefits payable for the week
under a recognized employer-sponsored supplemental unemployment
benefits plan that complies with 26 U.S.C. § 501(c)(17)(D) and section 2,
and amendments thereto; and
(C) pays wages that are not less than the greater of:
(i) The federal minimum wage as prescribed in 29 U.S.C. § 206(a)
(1); or
(ii) the applicable state or local minimum wage.
(3) No disqualification shall apply for failure to accept or apply for
work that otherwise meets the criteria in subsection (b)(2) if:
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(A) The job offer was not made in writing by an employing unit or
was not listed with the state employment service;
(B) the individual's refusal would not constitute disqualification
pursuant to K.S.A. 44-706(c), and amendments thereto, to the extent such
criteria are not inconsistent with this subsection;
(C) the individual provides satisfactory evidence to the secretary of
labor showing a strong likelihood of reemployment in such individual's
customary occupation within a reasonably short period. In such cases,
suitability shall be determined in accordance with K.S.A. 44-706(c), and
amendments thereto; or
(D) the individual is enrolled in or has been accepted to an approved
training program or is subject to a pending determination under 42 U.S.C.
§ 503(a)(12). In such cases, disqualification for refusal of suitable work
shall not apply during periods of verified participation or pending
eligibility determination.
(c) Labor standards and training protections. No work shall be
considered suitable and no disqualification shall result if:
(1) The position is vacant due to a strike, lockout or other labor
dispute;
(2) the wages, hours or other working conditions are substantially
less favorable than those prevailing for similar work in the locality;
(3) acceptance of the position would require the individual to join,
resign from or refrain from joining a labor organization; or
(4) acceptance of or application for the job would require the
individual to terminate or interrupt participation in approved training.
(d) Active work search requirement. An individual shall be deemed to
be actively seeking work during any week if:
(1) The individual has engaged in a systematic and sustained effort to
obtain employment; and
(2) the individual provides tangible, verifiable evidence of job search
activity, including, but not limited to, applications submitted, interviews
attended, contacts with potential employers, use of job boards or
participation in employment services.
(e) Referrals by employment service. The employment service shall
refer individuals receiving extended benefits to any job that meets the
definition of suitable work under subsection (b)(2).
Sec. 9. K.S.A. 2025 Supp. 44-705 is hereby amended to read as
follows: 44-705. Except as provided by K.S.A. 44-757, and amendments
thereto, an unemployed individual shall be eligible to receive benefits with
respect to any week only if the secretary, or a person or persons designated
by the secretary, finds that:
(a) The claimant has registered for work at and thereafter continued
to report at an employment office in accordance with rules and regulations
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HB 2764 67
adopted by the secretary, except that, subject to the provisions of K.S.A.
44-704(a), and amendments thereto, the secretary may adopt rules and
regulations that waive or alter either or both of the requirements of this
subsection.
(b) The claimant has made a claim for benefits with respect to such
week in accordance with rules and regulations adopted by the secretary.
(c) (1) The claimant is able to perform the duties of such claimant's
customary occupation or the duties of other occupations that the claimant
is reasonably fitted by training or experience, and is available for work, as
demonstrated by the claimant's pursuit of the full course of action most
reasonably calculated to result in the claimant's reemployment except that,
notwithstanding any other provisions of this section, an unemployed
claimant otherwise eligible for benefits shall not become ineligible for
benefits:
(A) Because of the claimant's enrollment in and satisfactory pursuit
of approved training, including training approved under section 236(a)(1)
of the trade act of 1974;
(B) solely because such individual is seeking only part-time
employment if the individual is available for a number of hours per week
that are comparable to the individual's part-time work experience in the
base period; or
(C) because a claimant is not actively seeking work:
(i) During a state of disaster emergency proclaimed by the governor
pursuant to K.S.A. 48-924 and 48-925, and amendments thereto;
(ii) in response to the spread of the public health emergency of
COVID-19; and
(iii) the state's temporary waiver of the work search requirement
under the employment security law for such claimant is in compliance
with the families first coronavirus response act, public law 116-127.
(2) The secretary shall develop and implement procedures to address
claimants who refuse to return to suitable work or refuse to accept an offer
of suitable work without good cause. Such procedures shall include the
receipt and processing of job refusal reports from employers, the
evaluation of such reports in consideration of the claimant's work history
and skills and suitability of the offered employment and guidelines for a
determination of whether the claimant shall remain eligible for
unemployment benefits or has failed to meet the work search requirements
of this subsection or the requirements of K.S.A. 44-706(c), and
amendments thereto. In determining whether the employment offered is
suitable, the secretary's considerations shall include whether the
employment offers wages comparable to the claimant's recent employment
and work duties that correspond to the claimant's education level and
previous work experience. The secretary shall also consider whether the
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HB 2764 68
employment offers wages of at least the amount of the claimant's
maximum weekly benefits.
(3) To facilitate the requirements of paragraph (2), the secretary shall
provide readily accessible means for employers to notify the department
when a claimant refuses to return to work or refuses an offer of
employment, including by telephone, email or an online web portal. The
secretary shall create or cause to be created in the new unemployment
insurance information technology system as provided by K.S.A. 44-772,
and amendments thereto, an audit process for employers to submit reports
regarding activities related to the work search requirement or to the my
reemployment plan, established by K.S.A. 44-775, and amendments
thereto, and applicants that accept interview appointments but do not
participate or notify the interviewing employer of their inability to
participate in the scheduled interview. The secretary shall not be required
to implement such audit process prior to January 1, 2026. Nothing in this
subsection shall be construed as to require an employer to notify the
department of such job refusals or such failures to appear for a scheduled
interview without notifying the interviewing employer to the department.
(4) At the time of receipt of notice from an employer pursuant to
paragraph (3), the secretary shall, within 10 business days of receipt of
such notice from the employer, provide a notice to the claimant who has
refused to return to work or to accept an offer of suitable work without
good cause. The method of providing the notice to the claimant shall be
consistent with other correspondence from the department to the claimant
and may include mail, telephone, email or through an online web portal.
The notice shall, at minimum, include the following information:
(A) A summary of state employment security law regarding a
claimant's duties to return to work or accept suitable work;
(B) a statement that the claimant has been or may be disqualified and
the claimant's right to collect benefits has been or may be terminated for
refusal to return to work or accept suitable work without good cause, as
provided by this subsection and K.S.A. 44-706(c), and amendments
thereto;
(C) an explanation of what constitutes suitable work under the
employment security law; and
(D) instructions for contesting a denial of a claim if the denial is
based upon a report by an employer that the claimant has refused to return
to work or has refused to accept an offer of suitable work.
(5) The secretary shall include notices to all active employers
regarding work search noncompliance reporting options provided in
paragraph (3) in the department of labor's annual summary of benefit
charges pursuant to K.S.A. 44-710b(d), and amendments thereto, and in
the rate notices to employers pursuant to K.S.A. 44-710b(a), and
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HB 2764 69
amendments thereto. The secretary shall not be required to implement such
notice requirements prior to the completion of the new unemployment
insurance information technology system, as provided by K.S.A. 44-772,
and amendments thereto.
(6) For the purposes of this subsection, an inmate of a custodial or
correctional institution shall be deemed to be unavailable for work and not
eligible to receive unemployment compensation while incarcerated.
(d) (1) Except as provided further, the claimant has been unemployed
for a waiting period of one week or the claimant is unemployed and has
satisfied the requirement for a waiting period of one week under the shared
work unemployment compensation program as provided in K.S.A. 44-
757(k)(4), and amendments thereto, and that period of one week, in either
case, occurs within the benefit year that includes the week for which the
claimant is claiming benefits. No week shall be counted as a week of
unemployment for the purposes of this subsection:
(A) If benefits have been paid for such week;
(B) if the individual fails to meet with the other eligibility
requirements of this section; or
(C) if an individual is seeking unemployment benefits under the
unemployment compensation law of any other state or of the United
States, except that if the appropriate agency of such state or of the United
States finally determines that the claimant is not entitled to unemployment
benefits under such other law, this subparagraph shall not apply.
(2) (A) The waiting week requirement of paragraph (1) shall not
apply to:
(i) New claims by claimants who become unemployed as a result of
an employer terminating business operations within this state, declaring
bankruptcy or initiating a work force reduction pursuant to public law 100-
379, the federal worker adjustment and retraining notification act, 29
U.S.C. §§ 2101 through 2109, as amended; or
(ii) new claims filed on or after April 5, 2020, through December 26,
2020, in accordance with the families first coronavirus response act, public
law 116-127 and the federal CARES act, public law 116-136.
(B) The secretary shall adopt rules and regulations to administer the
provisions of this paragraph.
(3) If the waiting week requirement of paragraph (1) applies, a
claimant shall become eligible to receive compensation for the waiting
period of one week, pursuant to paragraph (1), upon completion of three
weeks of unemployment consecutive to such waiting period. This
paragraph shall not apply to initial claims effective on and after April 1,
2021.
(e) For benefit years established on and after the effective date of this
act, the claimant has been paid total wages for insured work in the
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HB 2764 70
claimant's base period of not less than 30 times the claimant's weekly
benefit amount and has been paid wages in more than one quarter of the
claimant's base period, except that the wage credits of an individual earned
during the period commencing with the end of a prior base period and
ending on the date that such individual filed a valid initial claim shall not
be available for benefit purposes in a subsequent benefit year unless, in
addition thereto, such individual has returned to work and subsequently
earned wages for insured work in an amount equal to at least eight times
the claimant's current weekly benefit amount.
(f) The claimant participates in reemployment services, such as job
search assistance services, if the individual has been determined to be
likely to exhaust regular benefits and needs reemployment services
pursuant to a profiling system established by the secretary, unless the
secretary determines that: (1) The individual has completed such services;
or (2) there is justifiable cause for the claimant's failure to participate in
such services.
(g) The claimant is returning to work after a qualifying injury and has
been paid total wages for insured work in the claimant's alternative base
period of not less than 30 times the claimant's weekly benefit amount and
has been paid wages in more than one quarter of the claimant's alternative
base period if:
(1) The claimant has filed for benefits within four weeks of being
released to return to work by a licensed and practicing health care
provider;
(2) the claimant files for benefits within 24 months of the date the
qualifying injury occurred; and
(3) the claimant attempted to return to work with the employer where
the qualifying injury occurred, but the individual's regular work or
comparable and suitable work was not available. Except as provided by
K.S.A. 44-757, and amendments thereto, an unemployed individual is
eligible to receive benefits for any week only if the secretary of labor or a
designated representative determines that all of the following conditions
are met:
(a) Work registration. (1) The claimant has registered for work and
continues to report to an authorized employment office in accordance with
regulations adopted by the secretary.
(2) The secretary may waive or modify this requirement by rule,
including for individuals participating in approved reemployment or
training programs pursuant to K.S.A. 44-704(a), and amendments thereto.
(3) All eligibility and availability requirements under the employment
security law shall be construed and administered in accordance with 20
C.F .R. part 604 and any successor regulations issued by the United States
department of labor to ensure conformity with 42 U.S.C. § 503(a)(12).
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(b) Weekly claim filing. (1) The claimant has filed a claim for benefits
for the applicable week, following the procedures established by the
secretary.
(2) (A) All claims, forms, notices and documents required or
permitted under the employment security law may be filed, submitted or
issued by electronic means, including through secure online systems, email
or other electronic platforms, provided such methods are consistent with
federal law, including 20 C.F .R. part 640 and related United States
department of labor guidance.
(B) Electronic transmission and signatures shall carry the same legal
effect as paper-based methods in accordance with K.S.A. 16-1601 et seq.,
and amendments thereto, unless otherwise prohibited by federal law.
(c) Availability for work and work refusal. (1) The claimant shall be
able and available to work, as demonstrated by actively pursuing
reemployment in the claimant's customary occupation or another field for
which the claimant is reasonably qualified by experience or training. The
claimant shall not be disqualified solely because such claimant:
(A) Is enrolled in and satisfactorily pursuing approved training,
including training under 19 U.S.C. § 2296(a)(1);
(B) is seeking part-time work consistent with such claimant's base
period experience and is available for a comparable number of hours per
week;
(C) is temporarily excused from active work search under a declared
state of disaster emergency or public health emergency, such as COVID-
19, in compliance with applicable federal law.
(2) (A) Claimants may be disqualified for refusing an offer of suitable
work or failing to apply for suitable work, unless good cause is shown.
The secretary shall consider:
(i) The claimant's work history, skills and past wages;
(ii) whether the offer involves comparable duties, conditions and
wages; and
(iii) whether the offer meets or exceeds the claimant's weekly benefit
amount.
(B) Work shall not be deemed suitable and shall not disqualify the
claimant if:
(i) The job was not formally offered or listed with the employment
service;
(ii) the job would not qualify as suitable work pursuant to K.S.A. 44-
706(c), and amendments thereto; or
(iii) the claimant can demonstrate a reasonable expectation of
returning to such claimant's own customary occupation in a short period.
(3) The secretary shall provide a telephone, email and online web
portal for employers to optionally report:
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HB 2764 72
(A) Claimant refusals to return to work or accept a job offer;
(B) failures to appear for scheduled interviews; and
(C) noncompliance with the my reemployment plan, K.S.A. 44-775,
and amendments thereto, or work search requirements. An automated
audit process for such reports shall be implemented and maintained under
the unemployment insurance system.
(4) (A) Upon receiving an employer's report under paragraph (3), the
secretary shall notify the claimant within 10 business days. The notice
shall include:
(i) A summary of relevant legal obligations;
(ii) a statement that eligibility may be denied due to refusal of
suitable work;
(iii) an explanation of what constitutes suitable work; and
(iv) instructions for contesting a potential denial.
(B) The claimant shall have 10 business days from the date of such
notice to respond or submit evidence contesting the potential
disqualification. Failure to respond within the time period may result in
denial of benefits, subject to appeal rights provided pursuant to K.S.A. 44-
709, and amendments thereto.
(5) Information about work search noncompliance reporting options
shall be included in annual benefit charge summaries and rate notices sent
to employers pursuant to K.S.A. 44-710b(a) and (d), and amendments
thereto.
(6) An individual who is incarcerated in a correctional or custodial
institution shall be deemed unavailable for work and ineligible for benefits
during the period of confinement.
(7) No individual shall be denied unemployment compensation under
the employment security law solely on the basis of such individual's
immigration status if such individual is lawfully present and authorized to
work in the United States, in accordance with 42 U.S.C. § 503(a)(10).
(d) Waiting week requirement. (1) The claimant shall be unemployed
for a waiting period of one week within the benefit year. No compensation
shall be paid for the waiting week and it shall not count if:
(A) Benefits were paid for the week;
(B) other eligibility conditions were not met; or
(C) the claimant is seeking benefits under another state or federal
law, unless ultimately denied under that law.
(2) (A) The waiting week requirement does not apply to new claims
arising from business closures, bankruptcy or mass layoffs subject to 29
U.S.C. Ch. 23.
(B) The secretary shall adopt rules and regulations to implement this
subsection. The waiting week requirement may be waived for claims
resulting from employer closures, mass layoffs covered by 29 U.S.C. Ch.
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HB 2764 73
23 or during periods of declared public emergency or disaster, as
authorized by federal waivers or conformity guidance issued under 42
U.S.C. § 503 or applicable United States department of labor rules.
(e) Base period earnings. (1) To qualify for benefits, the claimant
shall have:
(A) Earned total wages for insured work equal to at least 30 times the
weekly benefit amount during the base period; and
(B) earned wages in more than one calendar quarter of the base
period.
(2) Wages earned after the end of the base period may not be used
again unless the claimant has returned to work and earned at least eight
times the current weekly benefit amount in new wages for insured work.
(f) Reemployment services participation. A claimant identified
through the secretary's profiling system as likely to exhaust regular
benefits shall participate in reemployment services, such as job search
assistance, unless:
(1) The claimant has already completed such services; or
(2) the claimant has justifiable cause for nonparticipation.
(g) Qualifying injury and alternative base period. Claimants
returning from a qualifying injury may establish benefit eligibility using an
alternative base period if:
(1) The claim is filed within four weeks of medical clearance to
return to work;
(2) the injury occurred within the past 24 months; and
(3) the claimant attempted to return to such claimant's former
employer, but no suitable position was available.
(h) Supplemental unemployment benefit plan payments. Payments
received under a supplemental unemployment benefit plan recognized in
accordance with section 2, and amendments thereto, shall not affect a
claimant's eligibility determination, availability for work status or job
search requirements, provided such payments meet the conditions
described in subsection (h) of that section.
Sec. 10. K.S.A. 2025 Supp. 44-706 is hereby amended to read as
follows: 44-706. The secretary shall examine whether an individual has
separated from employment for each week claimed. The secretary shall
apply the provisions of this section to the individual's most recent
employment prior to the week claimed. An individual shall be disqualified
for benefits:
(a) If the individual left work voluntarily without good cause
attributable to the work or the employer, subject to the other provisions of
this subsection. For purposes of this subsection, "good cause" is cause of
such gravity that would impel a reasonable, not supersensitive, individual
exercising ordinary common sense to leave employment. Good cause
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requires a showing of good faith of the individual leaving work, including
the presence of a genuine desire to work. Failure to return to work after
expiration of approved personal or medical leave, or both, shall be
considered a voluntary resignation. After a temporary job assignment,
failure of an individual to affirmatively request an additional assignment
on the next succeeding workday, if required by the employment
agreement, after completion of a given work assignment, shall constitute
leaving work voluntarily. The disqualification shall begin the day
following the separation and shall continue until after the individual has
become reemployed and has had earnings from insured work of at least
three times the individual's weekly benefit amount. An individual shall not
be disqualified under this subsection if:
(1) The individual was forced to leave work because of illness or
injury upon the advice of a licensed and practicing healthcare provider
and, upon learning of the necessity for absence, immediately notified the
employer thereof, or the employer consented to the absence, and after
recovery from the illness or injury, when recovery was certified by a
practicing health care provider, the individual returned to the employer and
offered to perform services and the individual's regular work or
comparable and suitable work was not available. As used in this paragraph
"healthcare provider" means any person licensed by the proper licensing
authority of any state to engage in the practice of medicine and surgery,
osteopathy, chiropractic, dentistry, optometry, podiatry or psychology;
(2) the individual left temporary work to return to the regular
employer;
(3) the individual left work to enter active service in the armed forces
of the United States but was rejected or delayed from entry;
(4) The spouse of an individual who is a member of the armed forces
of the United States who left work because of the voluntary or involuntary
transfer of the individual's spouse from one job to another job that is for
the same employer or for a different employer, at a geographic location
that makes it unreasonable for the individual to continue work at the
individual's job. For the purposes of this provision "member of the armed
forces" means a person performing active service in the army, navy,
marine corps, air force, space force, coast guard or any component of the
military reserves of the United States;
(5) the individual left work because of hazardous working conditions;
in determining whether or not working conditions are hazardous for an
individual, the degree of risk involved to the individual's health, safety and
morals, the individual's physical fitness and prior training and the working
conditions of workers engaged in the same or similar work for the same
and other employers in the locality shall be considered; as used in this
paragraph, "hazardous working conditions" means working conditions that
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could result in a danger to the physical or mental well-being of the
individual; each determination as to whether hazardous working
conditions exist shall include, but shall not be limited to, a consideration
of: (A) The safety measures used or the lack thereof; and (B) the condition
of equipment or lack of proper equipment; no work shall be considered
hazardous if the working conditions surrounding the individual's work are
the same or substantially the same as the working conditions generally
prevailing among individuals performing the same or similar work for
other employers engaged in the same or similar type of activity;
(6) the individual left work to enter training approved under section
236(a)(1) of the federal trade act of 1974, provided the work left is not of a
substantially equal or higher skill level than the individual's past adversely
affected employment, as defined for purposes of the federal trade act of
1974, and wages for such work are not less than 80% of the individual's
average weekly wage as determined for the purposes of the federal trade
act of 1974;
(7) the individual left work because of unwelcome harassment of the
individual by the employer or another employee of which the employing
unit had knowledge and that would impel the average worker to give up
such worker's employment;
(8) the individual left work to accept better work; each determination
as to whether or not the work accepted is better work shall include, but
shall not be limited to, consideration of: (A) The rate of pay, the hours of
work and the probable permanency of the work left as compared to the
work accepted; (B) the cost to the individual of getting to the work left in
comparison to the cost of getting to the work accepted; and (C) the
distance from the individual's place of residence to the work accepted in
comparison to the distance from the individual's residence to the work left;
(9) the individual left work as a result of being instructed or requested
by the employer, a supervisor or a fellow employee to perform a service or
commit an act in the scope of official job duties that is in violation of an
ordinance or statute;
(10) the individual left work because of a substantial violation of the
work agreement by the employing unit and, before the individual left, the
individual had exhausted all remedies provided in such agreement for the
settlement of disputes before terminating. For the purposes of this
paragraph, a demotion based on performance does not constitute a
violation of the work agreement;
(11) after making reasonable efforts to preserve the work, the
individual left work due to a personal emergency of such nature and
compelling urgency that it would be contrary to good conscience to
impose a disqualification; or
(12) (A) the individual left work due to circumstances resulting from
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domestic violence, including:
(i) The individual's reasonable fear of future domestic violence at or
en route to or from the individual's place of employment;
(ii) the individual's need to relocate to another geographic area in
order to avoid future domestic violence;
(iii) the individual's need to address the physical, psychological and
legal impacts of domestic violence;
(iv) the individual's need to leave employment as a condition of
receiving services or shelter from an agency that provides support services
or shelter to victims of domestic violence; or
(v) the individual's reasonable belief that termination of employment
is necessary to avoid other situations that may cause domestic violence and
to provide for the future safety of the individual or the individual's family.
(B) An individual may prove the existence of domestic violence by
providing one of the following:
(i) A restraining order or other documentation of equitable relief by a
court of competent jurisdiction;
(ii) a police record documenting the abuse;
(iii) documentation that the abuser has been convicted of one or more
of the offenses enumerated in articles 34 and 35 of chapter 21 of the
Kansas Statutes Annotated, prior to their repeal, or articles 54 or 55 of
chapter 21 of the Kansas Statutes Annotated, or K.S.A. 21-6104, 21-6325,
21-6326 or 21-6418 through 21-6422, and amendments thereto, where the
victim was a family or household member;
(iv) medical documentation of the abuse;
(v) a statement provided by a counselor, social worker, health care
provider, clergy, shelter worker, legal advocate, domestic violence or
sexual assault advocate or other professional who has assisted the
individual in dealing with the effects of abuse on the individual or the
individual's family; or
(vi) a sworn statement from the individual attesting to the abuse.
(C) No evidence of domestic violence experienced by an individual,
including the individual's statement and corroborating evidence, shall be
disclosed by the department of labor unless consent for disclosure is given
by the individual.
(b) If the individual has been discharged or suspended for misconduct
connected with the individual's work. The disqualification shall begin the
day following the separation and shall continue until after the individual
becomes reemployed and in cases where the disqualification is due to
discharge for misconduct has had earnings from insured work of at least
three times the individual's determined weekly benefit amount, except that
if an individual is discharged for gross misconduct connected with the
individual's work, such individual shall be disqualified for benefits until
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such individual again becomes employed and has had earnings from
insured work of at least eight times such individual's determined weekly
benefit amount. In addition, all wage credits attributable to the
employment from which the individual was discharged for gross
misconduct connected with the individual's work shall be canceled. No
such cancellation of wage credits shall affect prior payments made as a
result of a prior separation.
(1) As used in this subsection, "misconduct" means a violation of a
duty or obligation reasonably owed the employer as a condition of
employment including, but not limited to, a violation of a company rule,
including a safety rule, if: (A) The individual knew or should have known
about the rule; (B) the rule was lawful and reasonably related to the job;
and (C) the rule was fairly and consistently enforced.
(2) (A) Failure of the employee to notify the employer of an absence
and an individual's leaving work prior to the end of such individual's
assigned work period without permission shall be considered prima facie
evidence of a violation of a duty or obligation reasonably owed the
employer as a condition of employment.
(B) For the purposes of this subsection, misconduct shall include, but
not be limited to, violation of the employer's reasonable attendance
expectations if the facts show:
(i) The individual was absent or tardy without good cause;
(ii) the individual had knowledge of the employer's attendance
expectation; and
(iii) the employer gave notice to the individual that future absence or
tardiness may or will result in discharge.
(C) For the purposes of this subsection, if an employee disputes being
absent or tardy without good cause, the employee shall present evidence
that a majority of the employee's absences or tardiness were for good
cause. If the employee alleges that the employee's repeated absences or
tardiness were the result of health related issues, such evidence shall
include documentation from a licensed and practicing healthcare provider
as defined in subsection (a)(1).
(3) (A) The term "gross misconduct" as used in this subsection shall
be construed to mean conduct evincing extreme, willful or wanton
misconduct as defined by this subsection. Gross misconduct shall include,
but not be limited to: (i) Theft; (ii) fraud; (iii) intentional damage to
property; (iv) intentional infliction of personal injury; or (v) any conduct
that constitutes a felony.
(B) For the purposes of this subsection, the following shall be
conclusive evidence of gross misconduct:
(i) The use of alcoholic liquor, cereal malt beverage or a
nonprescribed controlled substance by an individual while working;
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(ii) the impairment caused by alcoholic liquor, cereal malt beverage
or a nonprescribed controlled substance by an individual while working;
(iii) a positive breath alcohol test or a positive chemical test, if:
(a) The test was either:
(1) Required by law and was administered pursuant to the drug free
workplace act, 41 U.S.C. § 701 et seq.;
(2) administered as part of an employee assistance program or other
drug or alcohol treatment program in which the employee was
participating voluntarily or as a condition of further employment;
(3) requested pursuant to a written policy of the employer of which
the employee had knowledge and was a required condition of
employment;
(4) required by law and the test constituted a required condition of
employment for the individual's job; or
(5) there was reasonable suspicion to believe that the individual used,
had possession of, or was impaired by alcoholic liquor, cereal malt
beverage or a nonprescribed controlled substance while working;
(b) the test sample was collected either:
(1) As prescribed by the drug free workplace act, 41 U.S.C. § 701 et
seq.;
(2) as prescribed by an employee assistance program or other drug or
alcohol treatment program in which the employee was participating
voluntarily or as a condition of further employment;
(3) as prescribed by the written policy of the employer of which the
employee had knowledge and that constituted a required condition of
employment;
(4) as prescribed by a test that was required by law and which
constituted a required condition of employment for the individual's job; or
(5) at a time contemporaneous with the events establishing probable
cause;
(c) the collecting and labeling of a chemical test sample was
performed by a licensed health care professional or any other individual
certified pursuant to paragraph (b)(3)(A)(iii)(f) or authorized to collect or
label test samples by federal or state law, or a federal or state rule or
regulation having the force or effect of law, including law enforcement
personnel;
(d) the chemical test was performed by a laboratory approved by the
United States department of health and human services or licensed by the
department of health and environment, except that a blood sample may be
tested for alcohol content by a laboratory commonly used for that purpose
by state law enforcement agencies;
(e) the chemical test was confirmed by gas chromatography, gas
chromatography-mass spectroscopy or other comparably reliable
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analytical method, except that no such confirmation is required for a blood
alcohol sample or a breath alcohol test;
(f) the breath alcohol test was administered by an individual trained
to perform breath tests, the breath testing instrument used was certified
and operated strictly according to a description provided by the
manufacturers and the reliability of the instrument performance was
assured by testing with alcohol standards; and
(g) the foundation evidence establishes, beyond a reasonable doubt,
that the test results were from the sample taken from the individual;
(iv) an individual's refusal to submit to a chemical test or breath
alcohol test, if:
(a) The test meets the standards of the drug free workplace act, 41
U.S.C. § 701 et seq.;
(b) the test was administered as part of an employee assistance
program or other drug or alcohol treatment program in which the
employee was participating voluntarily or as a condition of further
employment;
(c) the test was otherwise required by law and the test constituted a
required condition of employment for the individual's job;
(d) the test was requested pursuant to a written policy of the employer
of which the employee had knowledge and was a required condition of
employment; or
(e) there was reasonable suspicion to believe that the individual used,
possessed or was impaired by alcoholic liquor, cereal malt beverage or a
nonprescribed controlled substance while working; and
(v) an individual's dilution or other tampering of a chemical test.
(C) For purposes of this subsection:
(i) "Alcohol concentration" means the number of grams of alcohol
per 210 liters of breath;
(ii) "alcoholic liquor" means the same as defined in K.S.A. 41-102,
and amendments thereto;
(iii) "cereal malt beverage" means the same as defined in K.S.A. 41-
2701, and amendments thereto;
(iv) "chemical test" includes, but is not limited to, tests of urine,
blood or saliva;
(v) "controlled substance" means the same as defined in K.S.A. 21-
5701, and amendments thereto;
(vi) "required by law" means required by a federal or state law, a
federal or state rule or regulation having the force and effect of law, a
county resolution or municipal ordinance, or a policy relating to public
safety adopted in an open meeting by the governing body of any special
district or other local governmental entity;
(vii) "positive breath test" means a test result showing an alcohol
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HB 2764 80
concentration of 0.04 or greater, or the levels listed in 49 C.F.R. part 40, if
applicable, unless the test was administered as part of an employee
assistance program or other drug or alcohol treatment program in which
the employee was participating voluntarily or as a condition of further
employment, in which case "positive chemical test" means a test result
showing an alcohol concentration at or above the levels provided for in the
assistance or treatment program; and
(viii) "positive chemical test" means a chemical result showing a
concentration at or above the levels listed in K.S.A. 44-501, and
amendments thereto, or 49 C.F.R. part 40, as applicable, for the drugs or
abuse listed therein, unless the test was administered as part of an
employee assistance program or other drug or alcohol treatment program
in which the employee was participating voluntarily or as a condition of
further employment, in which case "positive chemical test" means a
chemical result showing a concentration at or above the levels provided for
in the assistance or treatment program.
(4) An individual shall not be disqualified under this subsection if the
individual is discharged under the following circumstances:
(A) The employer discharged the individual after learning the
individual was seeking other work or when the individual gave notice of
future intent to quit, except that the individual shall be disqualified after
the time that such individual intended to quit and any individual who
commits misconduct after such individual gives notice to such individual's
intent to quit shall be disqualified;
(B) the individual was making a good faith effort to do the assigned
work but was discharged due to:
(i) Inefficiency;
(ii) unsatisfactory performance due to inability, incapacity or lack of
training or experience;
(iii) isolated instances of ordinary negligence or inadvertence;
(iv) good faith errors in judgment or discretion; or
(v) unsatisfactory work or conduct due to circumstances beyond the
individual's control; or
(C) the individual's refusal to perform work in excess of the contract
of hire.
(c) If the individual has failed, without good cause, to either apply for
suitable work when so directed by the employment office of the secretary
of labor, or to accept suitable work when offered to the individual by the
employment office, the secretary of labor, or an employer, such
disqualification shall begin with the week in which such failure occurred
and shall continue until the individual becomes reemployed and has had
earnings from insured work of at least three times such individual's
determined weekly benefit amount. In determining whether or not any
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work is suitable for an individual, the secretary of labor, or a person or
persons designated by the secretary, shall consider the degree of risk
involved to health, safety and morals, physical fitness and prior training,
experience and prior earnings, length of unemployment and prospects for
securing local work in the individual's customary occupation or work for
which the individual is reasonably fit by training or experience, and the
distance of the available work from the individual's residence.
Notwithstanding any other provisions of this act, an otherwise eligible
individual shall not be disqualified for refusing an offer of suitable
employment, or failing to apply for suitable employment when notified by
an employment office, or for leaving the individual's most recent work
accepted during approved training, including training approved under
section 236(a)(1) of the trade act of 1974, if the acceptance of or applying
for suitable employment or continuing such work would require the
individual to terminate approved training and no work shall be deemed
suitable and benefits shall not be denied under this act to any otherwise
eligible individual for refusing to accept new work under any of the
following conditions:
(1) If the position offered is vacant due directly to a strike, lockout or
other labor dispute;
(2) if the remuneration, hours or other conditions of the work offered
are substantially less favorable to the individual than those prevailing for
similar work in the locality;
(3) if as a condition of being employed, the individual would be
required to join or to resign from or refrain from joining any labor
organization; and
(4) if the individual left employment as a result of domestic violence,
and the position offered does not reasonably accommodate the individual's
physical, psychological, safety, or legal needs relating to such domestic
violence.
(d) For any week with respect to which the secretary of labor, or a
person or persons designated by the secretary, finds that the individual's
unemployment is due to a stoppage of work that exists because of a labor
dispute or there would have been a work stoppage had normal operations
not been maintained with other personnel previously and currently
employed by the same employer at the factory, establishment or other
premises at which the individual is or was last employed, except that this
subsection (d) shall not apply if it is shown to the satisfaction of the
secretary of labor, or a person or persons designated by the secretary, that:
(1) The individual is not participating in or financing or directly
interested in the labor dispute that caused the stoppage of work; and
(2) the individual does not belong to a grade or class of workers of
which, immediately before the commencement of the stoppage, there were
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HB 2764 82
members employed at the premises where the stoppage occurs any of
whom are participating in or financing or directly interested in the dispute.
If in any case separate branches of work that are commonly conducted as
separate businesses in separate premises are conducted in separate
departments of the same premises, each such department shall, for the
purpose of this subsection be deemed to be a separate factory,
establishment or other premises. For the purposes of this subsection,
failure or refusal to cross a picket line or refusal for any reason during the
continuance of such labor dispute to accept the individual's available and
customary work at the factory, establishment or other premises where the
individual is or was last employed shall be considered as participation and
interest in the labor dispute.
(e) For any week or a part of the week in which the individual has
received or is seeking unemployment benefits under the unemployment
compensation law of any other state or of the United States, except that if
the appropriate agency of such other state or the United States finally
determines that the individual is not entitled to such unemployment
benefits, this disqualification shall not apply.
(f) For any week in which the individual is entitled to receive any
unemployment allowance or compensation granted by the United States
under an act of congress to former members of the armed forces in
recognition of former service with the military, naval, air or space services
of the United States.
(g) If the individual, or another in such individual's behalf with the
knowledge of the individual, has knowingly made a false statement or
representation, or has knowingly failed to disclose a material fact to obtain
or increase benefits under this act or any other unemployment
compensation law administered by the secretary of labor, unless the
individual has repaid the full amount of the overpayment as determined by
the secretary or the secretary's designee, including, but not limited to, the
total amount of money erroneously paid as benefits or unlawfully
obtained, interest, penalties and any other costs or fees provided by law. If
the individual has made such repayment, the individual shall be
disqualified for a period of one year for the first occurrence or five years
for any subsequent occurrence, beginning with the first day following the
date the department of labor confirmed the individual has successfully
repaid the full amount of the overpayment. In addition to the penalties set
forth in K.S.A. 44-719, and amendments thereto, an individual who has
knowingly made a false statement or representation or who has knowingly
failed to disclose a material fact to obtain or increase benefits under this
act or any other unemployment compensation law administered by the
secretary of labor shall be liable for a penalty in the amount equal to 25%
of the amount of benefits unlawfully received. Notwithstanding any other
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HB 2764 83
provision of law, such penalty shall be deposited into the employment
security trust fund. No person who is a victim of identify theft shall be
subject to the provisions of this subsection. The secretary shall investigate
all cases of an alleged false statement or representation or failure to
disclose a material fact to ensure no victim of identity theft is disqualified,
required to repay or subject to any penalty as provided by this subsection
as a result of identity theft.
(h) For any week in which the individual is receiving compensation
for temporary total disability or permanent total disability under the
workmen's compensation law of any state or under a similar law of the
United States.
(i) For any week of unemployment on the basis of service in an
instructional, research or principal administrative capacity for an
educational institution as defined in K.S.A. 44-703(v), and amendments
thereto, if such week begins during the period between two successive
academic years or terms or, when an agreement provides instead for a
similar period between two regular but not successive terms during such
period or during a period of paid sabbatical leave provided for in the
individual's contract, if the individual performs such services in the first of
such academic years or terms and there is a contract or a reasonable
assurance that such individual will perform services in any such capacity
for any educational institution in the second of such academic years or
terms.
(j) For any week of unemployment on the basis of service in any
capacity other than service in an instructional, research, or administrative
capacity in an educational institution, as defined in K.S.A. 44-703(v), and
amendments thereto, if such week begins during the period between two
successive academic years or terms if the individual performs such
services in the first of such academic years or terms and there is a
reasonable assurance that the individual will perform such services in the
second of such academic years or terms, except that if benefits are denied
to the individual under this subsection and the individual was not offered
an opportunity to perform such services for the educational institution for
the second of such academic years or terms, such individual shall be
entitled to a retroactive payment of benefits for each week for which the
individual filed a timely claim for benefits and such benefits were denied
solely by reason of this subsection.
(k) For any week of unemployment on the basis of service in any
capacity for an educational institution as defined in K.S.A. 44-703(v), and
amendments thereto, if such week begins during an established and
customary vacation period or holiday recess, if the individual performs
services in the period immediately before such vacation period or holiday
recess and there is a reasonable assurance that such individual will perform
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such services in the period immediately following such vacation period or
holiday recess.
(l) For any week of unemployment on the basis of any services,
consisting of participating in sports or athletic events or training or
preparing to so participate, if such week begins during the period between
two successive sport seasons or similar period if such individual
performed services in the first of such seasons or similar periods and there
is a reasonable assurance that such individual will perform such services in
the later of such seasons or similar periods.
(m) For any week on the basis of services performed by an alien
unless such alien is an individual who was lawfully admitted for
permanent residence at the time such services were performed, was
lawfully present for purposes of performing such services, or was
permanently residing in the United States under color of law at the time
such services were performed, including an alien who was lawfully present
in the United States as a result of the application of the provisions of
section 212(d)(5) of the federal immigration and nationality act. Any data
or information required of individuals applying for benefits to determine
whether benefits are not payable to them because of their alien status shall
be uniformly required from all applicants for benefits. In the case of an
individual whose application for benefits would otherwise be approved, no
determination that benefits to such individual are not payable because of
such individual's alien status shall be made except upon a preponderance
of the evidence.
(n) For any week in which an individual is receiving a governmental
or other pension, retirement or retired pay, annuity or other similar
periodic payment under a plan maintained by a base period employer and
to which the entire contributions were provided by such employer, except
that:
(1) If the entire contributions to such plan were provided by the base
period employer but such individual's weekly benefit amount exceeds such
governmental or other pension, retirement or retired pay, annuity or other
similar periodic payment attributable to such week, the weekly benefit
amount payable to the individual shall be reduced, but not below zero, by
an amount equal to the amount of such pension, retirement or retired pay,
annuity or other similar periodic payment that is attributable to such week;
or
(2) if only a portion of contributions to such plan were provided by
the base period employer, the weekly benefit amount payable to such
individual for such week shall be reduced, but not below zero, by the
prorated weekly amount of the pension, retirement or retired pay, annuity
or other similar periodic payment after deduction of that portion of the
pension, retirement or retired pay, annuity or other similar periodic
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HB 2764 85
payment that is directly attributable to the percentage of the contributions
made to the plan by such individual; or
(3) if the entire contributions to the plan were provided by such
individual, or by the individual and an employer, or any person or
organization, who is not a base period employer, no reduction in the
weekly benefit amount payable to the individual for such week shall be
made under this subsection; or
(4) whatever portion of contributions to such plan were provided by
the base period employer, if the services performed for the employer by
such individual during the base period, or remuneration received for the
services, did not affect the individual's eligibility for, or increased the
amount of, such pension, retirement or retired pay, annuity or other similar
periodic payment, no reduction in the weekly benefit amount payable to
the individual for such week shall be made under this subsection. No
reduction shall be made for payments made under the social security act or
railroad retirement act of 1974.
(o) For any week of unemployment on the basis of services
performed in any capacity and under any of the circumstances described in
subsection (i), (j) or (k) that an individual performed in an educational
institution while in the employ of an educational service agency. For the
purposes of this subsection, the term "educational service agency" means a
governmental agency or entity that is established and operated exclusively
for the purpose of providing such services to one or more educational
institutions.
(p) For any week of unemployment on the basis of service as a school
bus or other motor vehicle driver employed by a private contractor to
transport pupils, students and school personnel to or from school-related
functions or activities for an educational institution, as defined in K.S.A.
44-703(v), and amendments thereto, if such week begins during the period
between two successive academic years or during a similar period between
two regular terms, whether or not successive, if the individual has a
contract or contracts, or a reasonable assurance thereof, to perform
services in any such capacity with a private contractor for any educational
institution for both such academic years or both such terms. An individual
shall not be disqualified for benefits as provided in this subsection for any
week of unemployment:
(1) That the individual is a participating employee in a short-term
compensation program established pursuant to K.S.A. 44-757, and
amendments thereto; or
(2) on the basis of service as a bus or other motor vehicle driver
employed by a private contractor to transport persons to or from
nonschool-related functions or activities.
(q) For any week of unemployment on the basis of services
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performed by the individual in any capacity and under any of the
circumstances described in subsection (i), (j), (k) or (o) that are provided
to or on behalf of an educational institution, as defined in K.S.A. 44-
703(v), and amendments thereto, while the individual is in the employ of
an employer that is a governmental entity, Indian tribe or any employer
described in section 501(c)(3) of the federal internal revenue code of 1986
that is exempt from income under section 501(a) of the code.
(r) For any week in which an individual is registered at and attending
an established school, training facility or other educational institution, or is
on vacation during or between two successive academic years or terms. An
individual shall not be disqualified for benefits as provided in this
subsection if:
(1) The individual was engaged in full-time employment concurrent
with the individual's school attendance;
(2) the individual is attending approved training as defined in K.S.A.
44-703(s), and amendments thereto; or
(3) the individual is attending evening, weekend or limited day time
classes that would not affect availability for work, and is otherwise eligible
under K.S.A. 44-705(c), and amendments thereto.
(s) For any week in which an individual is receiving or has received
remuneration in the form of a back pay award or settlement. The
remuneration shall be allocated to the week or weeks in the manner as
specified in the award or agreement, or in the absence of such specificity
in the award or agreement, such remuneration shall be allocated to the
week or weeks for which such remuneration, in the judgment of the
secretary, would have been paid.
(1) For any such weeks that an individual receives remuneration in
the form of a back pay award or settlement, an overpayment will be
established in the amount of unemployment benefits paid and shall be
collected from the claimant.
(2) If an employer chooses to withhold from a back pay award or
settlement, amounts paid to a claimant while they claimed unemployment
benefits, such employer shall pay the department the amount withheld.
With respect to such amount, the secretary shall have available all of the
collection remedies authorized or provided in K.S.A. 44-717, and
amendments thereto.
(t) (1) Any applicant for or recipient of unemployment benefits who
tests positive for unlawful use of a controlled substance or controlled
substance analog shall be required to complete a substance abuse treatment
program approved by the secretary of labor, secretary of commerce or
secretary for children and families, and a job skills program approved by
the secretary of labor, secretary of commerce or the secretary for children
and families. Subject to applicable federal laws, any applicant for or
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recipient of unemployment benefits who fails to complete or refuses to
participate in the substance abuse treatment program or job skills program
as required under this subsection shall be ineligible to receive
unemployment benefits until completion of such substance abuse
treatment and job skills programs. Upon completion of both substance
abuse treatment and job skills programs, such applicant for or recipient of
unemployment benefits may be subject to periodic drug screening, as
determined by the secretary of labor. Upon a second positive test for
unlawful use of a controlled substance or controlled substance analog, an
applicant for or recipient of unemployment benefits shall be ordered to
complete again a substance abuse treatment program and job skills
program, and shall be terminated from unemployment benefits for a period
of 12 months, or until such applicant for or recipient of unemployment
benefits completes both substance abuse treatment and job skills programs,
whichever is later. Upon a third positive test for unlawful use of a
controlled substance or controlled substance analog, an applicant for or a
recipient of unemployment benefits shall be terminated from receiving
unemployment benefits, subject to applicable federal law.
(2) Any individual who has been discharged or refused employment
for failing a preemployment drug screen required by an employer may
request that the drug screening specimen be sent to a different drug testing
facility for an additional drug screening. Any such individual who requests
an additional drug screening at a different drug testing facility shall be
required to pay the cost of drug screening.
(u) If the individual was found not to have a disqualifying
adjudication or conviction under K.S.A. 39-970 or 65-5117, and
amendments thereto, was hired and then was subsequently convicted of a
disqualifying felony under K.S.A. 39-970 or 65-5117, and amendments
thereto, and discharged pursuant to K.S.A. 39-970 or 65-5117, and
amendments thereto. The disqualification shall begin the day following the
separation and shall continue until after the individual becomes
reemployed and has had earnings from insured work of at least three times
the individual's determined weekly benefit amount.
(v) Notwithstanding the provisions of any subsection, an individual
shall not be disqualified for such week of part-time employment in a
substitute capacity for an educational institution if such individual's most
recent employment prior to the individual's benefit year begin date was for
a non-educational institution and such individual demonstrates application
for work in such individual's customary occupation or for work for which
the individual is reasonably fit by training or experience. The secretary of
labor shall determine whether an individual is disqualified from receiving
unemployment benefits based on the nature and circumstances of such
individual's separation from employment. This determination shall apply
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to the individual's most recent employment prior to each week claimed.
(a) Voluntary separation. An individual shall be disqualified for
benefits if they voluntarily leave employment without good cause
attributable to the work or employer.
(1) (A) "Good cause" means a compelling reason that would lead a
reasonable, non-supersensitive person, using sound judgment and acting
in good faith, to voluntarily leave employment. A genuine desire to remain
employed must be present.
(B) "Voluntarily leave employment" includes, but is not limited to:
(i) Failing to return from approved personal or medical leave; or
(ii) failing to request reassignment after completing a temporary
assignment, if required by an agreement.
(2) The following exceptions shall not result in disqualification:
(A) The individual left work due to illness or injury under the advice
of a licensed healthcare provider, notified the employer and, upon
recovery, offered to return to suitable work.
(B) The individual left work temporary employment to return to a
regular employer.
(C) The individual left work for military service but was rejected or
delayed from entry.
(D) The individual left work due to a spouse's transfer within the
armed forces to a different geographic area.
(E) The individual left work due to unsafe or hazardous conditions
that could jeopardize such individual's health or well-being.
(F) The individual left work to attend federally approved training
under 19 U.S.C. Ch. 12.
(G) The individual left work due to workplace harassment that the
employer knew about and failed to correct.
(H) The individual left work for employment that offered better
wages, hours, benefits or permanency.
(I) The individual left work after being asked to commit an unlawful
act.
(J) The individual left work after the employer substantially violated
the terms of employment.
(K) The individual left work after making reasonable efforts to keep
such individual's job due to a serious personal emergency.
(L) An individual shall not be disqualified for benefits if such
individual left work due to circumstances related to domestic violence with
documented evidence.
(i) Examples of domestic violence may include:
(a) Reasonable fear of future violence at or near the workplace;
(b) need to relocate for safety;
(c) need to address the physical, psychological or legal effects of
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abuse;
(d) requirement to leave work to receive shelter or services; or
(e) a reasonable belief that leaving employment is necessary to
protect the individual or their family.
(ii) Evidence of domestic violence may include:
(a) A court-issued restraining order or similar relief;
(b) a police report;
(c) court records showing the abuser's conviction of a qualifying
offense;
(d) medical documentation;
(e) a statement from a qualified professional, such as a counselor,
healthcare provider or advocate; or
(f) a sworn statement from the individual attesting the abuse.
(iii) Any evidence of domestic violence provided by an individual,
including personal statements and supporting documentation, shall
remain confidential and shall not be disclosed by the department of labor
without the individual’ s explicit consent.
(b) Disqualification for misconduct or gross misconduct. (1) An
individual shall be disqualified from receiving benefits if discharged or
suspended for misconduct connected to the individual's work.
Disqualification shall begin the day after separation and shall continue
until the individual is reemployed and has earned:
(A) At least three times the individual's weekly benefit amount from
insured work if the discharge was for misconduct; or
(B) at least eight times the weekly benefit amount if the discharge
was for gross misconduct. In cases of gross misconduct, all wage credits
from the disqualifying employer shall be canceled. This cancellation shall
not affect benefits already paid from a prior separation.
(2) "Misconduct" includes any willful violation of a duty or
obligation reasonably owed to the employer. This includes, but is not
limited to, breaking a known and consistently enforced company rule,
including safety rules, that are lawful and job-related.
(A) Failing to notify the employer of an absence or leaving work
early without permission constitutes prima facie misconduct.
(B) Repeated violations of reasonable attendance policies may be
deemed misconduct if:
(i) Absences or tardiness were without good cause;
(ii) the employee knew of the attendance expectations; and
(iii) the employer warned the employee that further absences could
lead to discharge.
(C) If an employee disputes the attendance-related disqualification,
the burden is on the employee to demonstrate that a majority of absences
or tardiness were for good cause. If health-related, such demonstration
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requires documentation from a licensed healthcare provider.
(3) "Gross misconduct" means extreme, willful or wanton behavior,
and includes, but is not limited to:
(A) Theft, fraud, intentional property damage, intentional personal
injury or conduct constituting a felony;
(B) use, possession or impairment by alcohol or nonprescribed
controlled substances while working;
(C) a positive alcohol or drug test meeting the following conditions:
(i) The test was legally required or part of a written employment
policy;
(ii) the sample was properly collected, labeled and tested by certified
professionals;
(iii) the test result was confirmed by reliable methods, such as gas
chromatography;
(iv) breath tests were administered using certified instruments by
trained personnel; and
(v) results are clearly linked to the tested individual.
(D) A refusal to submit to a lawful test or tampering with a chemical
test.
(E) As used in this subsection:
(i) "Alcohol concentration" means grams of alcohol per 210 liters of
breath;
(ii) "alcoholic liquor" means the same as defined in K.S.A. 41-102,
and amendments thereto;
(iii) "cereal malt beverage" means the same as defined in K.S.A. 41-
2701, and amendments thereto;
(iv) "controlled substance" means the same as defined in K.S.A. 21-
5701, and amendments thereto;
(v) "positive chemical test" means test results exceeding thresholds
listed pursuant to K.S.A. 44-501, and amendments thereto, or 49 C.F .R.
part 40;
(vi) "required by law" includes federal, state or local laws or policies
adopted in an open meeting.
(4) An individual shall not be disqualified for the following
discharges:
(A) Termination after the individual gave notice of intent to quit or
was known to be seeking other employment, except if the individual
commits misconduct after such notice;
(B) discharge for inefficiency, inability, isolated negligence, good
faith errors or circumstances beyond the individual's control; or
(C) refusal to work hours beyond the agreed contract or terms of
hire.
(c) Refusal or failure to apply for suitable work. An individual shall
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be disqualified from receiving benefits if, without good cause, they fail to
apply for or accept suitable work when directed by the employment office,
the secretary of labor or an employer. The disqualification shall begin
with the week in which the refusal or failure occurred and shall continue
until the individual becomes reemployed and earns wages from insured
work equal to at least three times such individual's determined weekly
benefit amount.
(1) In determining whether work is "suitable," the secretary of labor
or the secretary's designee shall consider the following factors:
(A) Risk to health, safety or morals;
(B) the individual’ s physical fitness;
(C) prior training, experience and earnings;
(D) length of unemployment and job prospects in the individual’ s
customary occupation or similar work for which such individual is
reasonably qualified; and
(E) the distance between the available job and the individual's
residence.
(2) An otherwise eligible individual shall not be disqualified for
refusing to apply for or accept work or for leaving such individual's most
recent employment accepted during approved training, if any of the
following apply:
(A) The job is vacant due directly to a strike, lockout or labor
dispute;
(B) the wages, hours or working conditions are substantially less
favorable than those for similar jobs in the area;
(C) employment would require the individual to join, resign from or
refrain from joining a labor union;
(D) the individual left previous employment due to domestic violence
and the new job does not reasonably accommodate such individual's
physical, psychological, safety or legal needs related to such violence; or
(E) accepting, applying for or continuing in the job would require the
individual to terminate approved training, including training under 19
U.S.C. § 2296(a).
(d) Labor dispute disqualification. An individual shall be disqualified
from receiving benefits for any week in which the secretary determines
that the individual's unemployment is due to a work stoppage caused by a
labor dispute at the factory, establishment or premises where the
individual is or was last employed. This disqualification also applies if a
stoppage would have occurred but was avoided because operations were
maintained by other employees previously or currently employed at the
same location.
(1) This disqualification shall not apply if the secretary determines
both of the following:
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(A) The individual is not participating in, financing or directly
involved in the labor dispute that caused the work stoppage; and
(B) the individual does not belong to a grade or class of workers, any
of whom were employed at the premises immediately before the stoppage,
who are participating in, financing or directly involved in the dispute.
(2) For the purposes of this subsection:
(A) If distinct branches of work typically conducted as separate
businesses in separate locations are instead carried out in separate
departments within the same premises, each department shall be
considered a separate establishment.
(B) An individual who refuses or fails to cross a picket line or
otherwise declines to perform such individual's own customary work
during the labor dispute at such individual's usual worksite shall be
deemed to be participating in and directly interested in the dispute.
(e) Disqualification due to benefits from another jurisdiction. An
individual shall be disqualified from receiving benefits for any week or
part of a week in which the individual is receiving or actively seeking
unemployment benefits under the laws of another state or the federal
government. This disqualification shall not apply if the appropriate
agency of such other state or the United States makes a final
determination that the individual is not entitled to such benefits.
(f) Disqualification due to federal military unemployment
compensation. An individual shall be disqualified from receiving state
unemployment benefits for any week in which the individual is entitled to
receive federal unemployment compensation or allowances provided
under an act of congress for former members of the United States armed
forces, including military, naval, air or space services, in recognition of
such members' prior service.
(g) Disqualification for fraud or misrepresentation. An individual
shall be disqualified from receiving benefits if such individual or someone
acting on such individual's behalf with such individual's knowledge
knowingly make a false statement or representation or fails to disclose a
material fact in order to obtain or increase unemployment benefits under
this act or any other unemployment compensation law administered by the
secretary.
(1) The disqualification shall apply unless the individual has repaid
the full amount of the overpayment, including all benefits improperly or
unlawfully received and any applicable interest, penalties, fees and costs
as required by law.
(A) Once repayment is made and beginning on the day after the
department of labor confirms full repayment, the individual shall be
disqualified for:
(i) One year for a first occurrence; or
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HB 2764 93
(ii) five years for any subsequent occurrence.
(2) In addition to other penalties pursuant to K.S.A. 44-719, and
amendments thereto, any individual who knowingly commits fraud or
misrepresentation shall also be liable for a penalty equal to 25% of the
total amount of benefits unlawfully received. This penalty shall be
deposited into the employment security trust fund.
(3) No individual who is a verified victim of identity theft shall be
subject to the disqualification, repayment or penalty provisions of this
subsection. The secretary shall investigate all suspected cases of false
statements or nondisclosure to ensure that identity theft victims are not
wrongfully penalized.
(h) Disability compensation. An individual is not eligible to receive
unemployment benefits for any week in which such individual is receiving
compensation for temporary total or permanent total disability under the
workers' compensation laws of any state or under a comparable federal
law.
(i) Instructional, research or administrative roles in education. An
individual is not eligible for unemployment benefits for any week of
unemployment based on services performed in an instructional, research
or principal administrative capacity for an educational institution, if the
week:
(1) Falls between two successive academic years or terms;
(2) occurs during a similar break between two nonconsecutive terms
under an agreement; or
(3) occurs during a paid sabbatical leave provided in the individual's
contract and the individual performed services in the first academic year
or term and has a contract or reasonable assurance of performing
services in the second academic year or term.
(j) Other educational institution roles. (1) Disqualification applies to:
(A) Educational staff between school years or terms with reasonable
assurance of reemployment.
(B) School transportation workers under contract or with reasonable
assurance.
(C) Educational service agency staff in similar academic cycle
breaks.
(2) (A) "Reasonable assurance" means a written, verbal or implied
commitment given by an educational institution to an individual indicating
that the individual will perform services in the same or a similar capacity
during the next academic year or term.
(B) "Reasonable assurance" shall be made by an authorized
representative of the institution and must be based on a genuine offer of
employment, contingent only on factors within the employer's normal
hiring practices such as enrollment, program funding or course
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availability.
(C) "Reasonable assurance" does not exist if:
(i) The offer is conditional on the occurrence of events wholly outside
the employer’ s usual control or discretion;
(ii) the individual’ s prior employment was as a substitute or on-call
basis without consistent work history;
(iii) there is a significant reduction in earnings potential, work hours
or job duties compared to the preceding academic term; or
(iv) the assurance is vague, speculative or not communicated in good
faith.
(k) Established vacation periods and holiday recess. An individual
shall be disqualified from receiving benefits for any week of unemployment
that falls within an established and customary vacation period or holiday
recess if:
(1) The individual performed services for an educational institution
as defined in K.S.A. 44-703, and amendments thereto, during the period
immediately before the vacation or recess; and
(2) the individual has a reasonable assurance of performing similar
services for any educational institution during the period immediately
following the vacation or recess.
(l) Sports or athletic events. An individual is disqualified from
receiving benefits for any week of unemployment based on services
performed in sports or athletic events or while training or preparing for
such participation if the week falls between two sports seasons or similar
periods and the individual performed such services in the first season or
period and has reasonable assurance of performing the same in the
second.
(m) Immigration status. (1) An individual is disqualified from
receiving benefits for any week in which the services were performed by a
noncitizen unless the individual was:
(A) Lawfully admitted for permanent residence;
(B) lawfully present in the United States for the purpose of
performing such services; or
(C) permanently residing under color of law, including under 8
U.S.C. § 1182(d)(5).
(2) All applicants must provide the same data regarding immigration
status. Disqualification based on alien status may only be made upon a
preponderance of the evidence.
(n) Pension and retirement pay. An individual is disqualified from
receiving benefits for any week in which they receive a pension, retirement
pay, annuity or similar periodic payment from a base period employer,
unless:
(1) The weekly benefit exceeds the pension amount, in which case
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benefits are reduced by the pension amount;
(2) only part of the pension was funded by the base period employer,
in which case benefits are reduced proportionately;
(3) the pension was funded entirely by the individual or an entity
other than the base period employer, in which case no reduction applies;
or
(4) the individual's base period services did not contribute to or
increase the pension, in which case no reduction applies. No reduction
shall apply for payments made under 42 U.S.C. Ch. 7 or 45 U.S.C. § 231
et seq.
(o) Disqualification also applies to services performed under
subsections (i), (j) or (k) for an educational institution while employed by
an educational service agency. An "educational service agency" means a
governmental entity established solely to provide services to educational
institutions.
(p) Transporting students and school personnel. (1) An individual is
disqualified for any week of unemployment based on services as a school
bus or vehicle driver for a private contractor transporting students or
school personnel, if the week falls between academic years or terms and
the individual has a contract or reasonable assurance as defined in
subsection (j). This disqualification does not apply if:
(A) The individual participates in a short-term compensation plan
pursuant to K.S.A. 44-757, and amendments thereto; or
(B) the services involve nonschool-related transportation.
(q) Disqualification also applies for any week of unemployment
based on services described in subsections (i), (j), (k) or (o), performed for
or on behalf of an educational institution while employed by a
governmental entity, Indian tribe or a nonprofit exempt under 26 U.S.C. §
501(c)(3).
(r) Student attendance. An individual is disqualified for any week
during which such individual is enrolled in or attending an established
educational institution or is on break between academic terms, unless such
individual:
(1) Is concurrently engaged in full-time employment;
(2) is attending approved training as defined in K.S.A. 44-703, and
amendments thereto; or
(3) is attending evening, weekend or limited daytime classes that do
not affect work availability and otherwise meet the work availability
criteria pursuant to K.S.A. 44-705, and amendments thereto.
(s) Back pay or settlement pay. An individual is disqualified for any
week in which such individual receives back pay or settlement related to
prior employment. Payment shall be allocated according to the terms of
the agreement or, if unspecified, as determined by the secretary. The
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following conditions apply:
(1) Any unemployment benefits paid for such weeks shall be
considered overpayments and must be repaid.
(2) If the employer withholds amounts equal to unemployment
benefits from the back pay, such amounts must be submitted to the
department of labor and may be collected pursuant to K.S.A. 44-717, and
amendments thereto.
(t) Drug use and testing. An individual who tests positive for illegal
drug use shall complete approved substance abuse and job skills
programs. Failure to complete the programs shall result in
disqualification until completion.
(1) (A) A second offense shall require repetition of both programs
and result in disqualification for 12 months or until completion, whichever
is later.
(B) A third offense shall result in permanent disqualification, subject
to federal law.
(2) An individual discharged or denied employment due to a failed
pre-employment drug screen may request retesting at a different facility at
such individual's own expense.
(u) Criminal history. An individual is disqualified if such individual is
found not to have a disqualifying adjudication or conviction pursuant to
K.S.A. 39-970 or 65-5117, and amendments thereto, was hired and
subsequently convicted of a disqualifying felony and discharged pursuant
to such provisions.
(v) Substitute educational work. An individual is not disqualified for
part-time substitute work for an educational institution if such individual's
prior employment was not with an educational employer and such
individual is actively seeking suitable work.
(w) Supplemental unemployment benefits plans and eligibility.
Receipt of income from an employer-sponsored supplemental
unemployment benefit plan shall not, by itself, disqualify an individual
from receiving benefits under this act, provided such plan complies with
the requirements set forth in section 2, and amendments thereto.
Sec. 11. K.S.A. 2025 Supp. 44-709 is hereby amended to read as
follows: 44-709. (a) Filing. Claims for benefits shall be made in
accordance with rules and regulations adopted by the secretary. The
secretary shall furnish a copy of such rules and regulations to any
individual requesting them. Each employer shall: (1) Post and maintain
printed statements furnished by the secretary without cost to the employer
in places readily accessible to individuals in the service of the employer;
and (2) provide any other notification to individuals in the service of the
employer as required by the secretary pursuant to the families first
coronavirus response act, public law 116-127.
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(b) Determination. (1) Except as otherwise provided in this
paragraph, a representative designated by the secretary, and hereinafter
referred to as an examiner, shall promptly examine the claim and, on the
basis of the facts found by the examiner, shall determine whether or not
the claim is valid. If the examiner determines that the claim is valid, the
examiner shall determine the first day of the benefit year, the weekly
benefit amount and the total amount of benefits payable with respect to the
benefit year. If the claim is determined to be valid, the examiner shall send
a notice to the last employing unit who shall respond within 10 days by
providing the examiner all requested information including all information
required for a decision under K.S.A. 44-706, and amendments thereto. The
information may be submitted by the employing unit in person at an
employment office of the secretary or by mail, by telefacsimile machine or
by electronic mail. If the required information is not submitted or
postmarked within a response time limit of 10 days after the examiner's
notice was sent, the employing unit shall be deemed to have waived its
standing as a party to the proceedings arising from the claim and shall be
barred from protesting any subsequent decisions about the claim by the
secretary, a referee, the employment security board of review or any court,
except that the employing unit's response time limit may be waived or
extended by the examiner or upon appeal, if timely response was
impossible due to excusable neglect. In any case in which the payment or
denial of benefits will be determined by the provisions of K.S.A. 44-
706(d), and amendments thereto, the examiner shall promptly transmit the
claim to a special examiner designated by the secretary to make a
determination on the claim after the investigation as the special examiner
deems necessary. The parties shall be promptly notified of the special
examiner's decision and any party aggrieved by the decision may appeal to
the referee as provided in subsection (c). The claimant and the claimant's
most recent employing unit shall be promptly notified of the examiner's or
special examiner's decision.
(2) The examiner may for good cause reconsider the examiner's
decision and shall promptly notify the claimant and the most recent
employing unit of the claimant, that the decision of the examiner is to be
reconsidered, except that no reconsideration shall be made after the
termination of the benefit year.
(3) Notwithstanding the provisions of any other statute, a decision of
an examiner or special examiner shall be final unless the claimant or the
most recent employing unit of the claimant files an appeal from the
decision as provided in subsection (c), except that the time limit for appeal
may be waived or extended by the referee or board of review if a timely
response was impossible due to excusable neglect. The appeal must be
filed within 16 calendar days after the mailing of notice to the last known
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addresses of the claimant and employing unit or, if notice is not by mail,
within 16 calendar days after the delivery of the notice to the parties.
(c) Appeals. Unless the appeal is withdrawn, a referee, after affording
the parties reasonable opportunity for fair hearing, shall affirm or modify
the findings of fact and decision of the examiner or special examiner. The
parties shall be duly notified of the referee's decision, together with the
reasons for the decision. The decision shall be final, notwithstanding the
provisions of any other statute, unless a further appeal to the employment
security board of review is filed within 16 calendar days after the mailing
of the decision to the parties' last known addresses or, if notice is not by
mail, within 16 calendar days after the delivery of the decision, except that
the time limit for appeal may be waived or extended by the referee or
board of review if a timely response was impossible due to excusable
neglect.
(d) Referees. The secretary shall appoint, in accordance with K.S.A.
44-714(c), and amendments thereto, one or more referees to hear and
decide disputed claims.
(e) Time, computation and extension. In computing the period of time
for an employing unit response or for appeals under this section from the
examiner's or the special examiner's determination or from the referee's
decision, the day of the act, event or default from which the designated
period of time begins to run shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday or legal holiday, in
which event the period runs until the end of the next day that is not a
Saturday, Sunday or legal holiday.
(f) Board of review. There is hereby created an employment security
board of review, hereinafter referred to as the board.
(1) (A) Except as provided in subparagraph (B), the board shall
consist of three members. Each member of the board shall be appointed for
a term of four years as provided in this subsection. Not more than two
members of the board shall belong to the same political party.
(B) The board shall consist of six members. The six-member board
shall consist of the following: (i) Three members appointed under
subparagraph (A); and (ii) three members appointed for a term that shall
expire upon the expiration of this subparagraph. Each member of the board
appointed under subparagraph (B)(ii) shall be appointed as provided in this
subsection. Not more than four members of the six-member board shall
belong to the same political party. The provisions of this subparagraph
shall expire on June 30, 2024.
(2) (A) When a vacancy on the employment security board of review
occurs, the workers compensation and employment security boards
nominating committee established under K.S.A. 44-551, and amendments
thereto, shall convene and submit a qualified nominee to the governor for
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HB 2764 99
appointment to each vacancy on the employment security board of review,
subject to confirmation by the senate as provided by K.S.A. 75-4315b, and
amendments thereto. Minimum qualifications for qualified candidates for
appointment to the employment security board of review, in order of
priority, shall be:
(i) At least eight years direct experience with human resources
processes, polices*, guidelines or employee relations;
(ii) at least three years direct experience with employment security
laws and processes; and
(iii) knowledge of unemployment and labor laws.
(B) Applications for employment security board of review positions
shall be submitted to the director of unemployment. The director shall
determine if an applicant meets the qualifications for an employment
security review board member as prescribed in paragraph (A). Qualified
applicants for a position of employment security review board member
shall be submitted by the director to the workers compensation and
employment security boards nominating committee for consideration. The
workers compensation and employment security boards nominating
committee shall nominate a candidate for consideration by the governor.
(C) The governor shall either accept and submit to the senate for
confirmation the person nominated by the nominating committee or reject
the nomination and request the nominating committee to nominate another
person for that position. Except as provided by K.S.A. 46-2601, and
amendments thereto, no person appointed to the employment security
board of review, whose appointment is subject to confirmation by the
senate, shall exercise any power, duty or function as a member until
confirmed by the senate.
(3) No member of the employment security board of review shall
serve more than two consecutive terms. This paragraph shall not apply to
members of the board appointed under subsection (f)(1)(B)(ii). The service
of a board member appointed under subsection (f)(1)(B)(ii) shall not
constitute a term as contemplated in this paragraph.
(4) Each member of the employment security board shall serve until a
successor has been appointed and confirmed. Any vacancy in the
membership of the board occurring prior to expiration of a term shall be
filled by appointment for the unexpired term in the same manner as
provided for original appointment of the member.
(5) Each member of the employment security board of review shall
be entitled to receive as compensation for the member's services at the rate
of $15,000 per year, together with the member's travel and other necessary
expenses actually incurred in the performance of the member's official
duties in accordance with rules and regulations adopted by the secretary.
Members' compensation and expenses shall be paid from the employment
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HB 2764 100
security administration fund.
(6) The employment security board of review shall organize annually
by the election of a chairperson from among its members. The chairperson
shall serve in that capacity for a term of one year and until a successor is
elected. For the purpose of hearing and determining cases, the board
members may sit in panels. A board panel shall consist of three members
with not more than two members belonging to the same political party.
The chairperson may sit as a member of a panel and shall preside over
such panel. When the chairperson is not a member of a hearing panel, the
chairperson shall appoint a member of the panel to preside. The board or
board panel shall meet on the first Monday of each month or on the call of
the chairperson or any two members of the board at the place designated.
The secretary of labor shall appoint an executive secretary of the board
and the executive secretary or the executive secretary's designee shall
attend the meetings of the board and board panels.
(7) The employment security board of review or board panel, on its
own motion, may affirm, modify or set aside any decision of a referee on
the basis of the evidence previously submitted in the case; may direct the
taking of additional evidence; or may permit any of the parties to initiate
further appeal before it. The board or board panel shall permit such further
appeal by any of the parties interested in a decision of a referee that
overrules or modifies the decision of an examiner. The board or board
panel may remove to itself the proceedings on any claim pending before a
referee. Any proceedings so removed to the board or board panel shall be
heard in accordance with the requirements of subsection (c). The board or
board panel shall promptly notify the interested parties of its findings and
decision.
(8) A simple majority of the members of the employment security
board of review or board panel shall constitute a quorum and no action of
the board or board panel shall be valid unless it has the concurrence of a
majority of its members. A vacancy on the board shall not impair the right
of a quorum to exercise all the rights and perform all the duties of the
board.
(g) Procedure. The manner that disputed claims are presented, the
reports on claims required from the claimant and from employers and the
conduct of hearings and appeals shall be in accordance with rules of
procedure prescribed by the employment security board of review for
determining the rights of the parties, whether or not such rules conform to
common law or statutory rules of evidence and other technical rules of
procedure. A full and complete record shall be kept of all proceedings and
decisions in connection with a disputed claim. All testimony at any hearing
upon a disputed claim shall be recorded, but need not be transcribed unless
the disputed claim is further appealed. In the performance of its official
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HB 2764 101
duties, the board or board panel shall have access to all of the records that
pertain to the disputed claim and are in the custody of the secretary of
labor and shall receive the assistance of the secretary upon request.
(h) Witness fees. Witnesses subpoenaed pursuant to this section shall
be allowed fees and necessary travel expenses at rates fixed by the board.
Such fees and expenses shall be deemed a part of the expense of
administering this act.
(i) Review of board action. Any action of the employment security
board of review including that of a board panel, may not be reconsidered
after the mailing of the decision. An action of the board or board panel
shall become final unless a petition for review in accordance with the
Kansas judicial review act is filed within 16 calendar days after the date of
the mailing of the decision. If an appeal has not been filed within 16
calendar days of the date of the mailing of the decision, the decision
becomes final. No bond shall be required for commencing an action for
such review. In addition to those persons having standing pursuant to
K.S.A. 77-611, and amendments thereto, the examiner shall have standing
to obtain judicial review of an action of such board or board panel. The
review proceeding, and the questions of law certified, shall be heard in a
summary manner and shall be given precedence over all other civil cases
except cases arising under the workers compensation act.
(j) Any finding of fact or law, judgment, determination, conclusion or
final order made by the employment security board of review or board
panel or any examiner, special examiner, referee or other person with
authority to make findings of fact or law pursuant to the employment
security law is not admissible or binding in any separate or subsequent
action or proceeding, between a person and a present or previous employer
brought before an arbitrator, court or judge of the state or the United
States, regardless of whether the prior action was between the same or
related parties or involved the same facts.
(k) In any proceeding or hearing conducted under this section, a party
to the proceeding or hearing may appear before a referee or the
employment security board of review or board panel either personally or
by means of a designated representative to present evidence and to state
the position of the party. Hearings may be conducted in person, by
telephone or other means of electronic communication. The hearing shall
be conducted by telephone or other means of electronic communication if
none of the parties requests an in-person hearing. If a party requests an in-
person hearing, the referee or board or board panel shall have the
discretion to deny the request in the absence of good cause shown for the
request by the requesting party. If a request for an in-person hearing is
granted, the referee or board or board panel shall have the discretion to
require all parties to appear in person or allow the party not requesting an
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HB 2764 102
in-person hearing to appear by telephone or other means of electronic
communication. The notice of hearing shall include notice to the parties of
their right to request an in-person hearing and instructions on how to make
the request. (a) Filing of claims. Claims for unemployment benefits shall
be filed in accordance with rules and regulations established by the
secretary of labor. The secretary shall provide a copy of such rules to any
individual upon request. Each employer shall:
(1) Post and maintain printed statements, provided at no cost by the
secretary, in locations easily accessible to all employees.
(2) Provide any additional notifications to employees as required
under federal law.
(b) Claim determinations. (1) A designated examiner shall promptly
review each claim to determine if it is valid. If the claim is deemed valid,
the examiner shall:
(A) Determine eligibility, benefit year, weekly benefit amount and
maximum payable benefits.
(B) Notice of a valid claim shall be sent to the claimant's most recent
employer, who shall submit the required documentation to the examiner
within 10 calendar days. The employer's response shall be submitted in
person, by mail, fax, electronic mail or designated secure online claim
portal. Failure to timely respond constitutes a waiver of protest rights,
unless extended by the examiner for good cause due to excusable neglect.
(2) Claims involving labor disputes pursuant to K.S.A. 44-706(d),
and amendments thereto, shall be referred to a designated special
examiner. Determinations may be appealed as outlined in subsection (c).
(3) The examiner may, for good cause, reconsider decisions prior to
the end of the benefit year. Notice shall be provided to both parties.
(4) Decisions are final unless appealed within 16 calendar days from
the date of notification, unless extended for good cause.
(c) Appeals process. (1) Claimants or employers may appeal
examiner decisions to an unemployment insurance referee. Hearings shall
be conducted with an opportunity for all parties to present evidence.
(2) Referee decisions shall be issued in writing with rationale and
shall become final unless further appealed with the employment security
board of review within 16 calendar days, unless extended for good cause.
(d) Appointment of referees. Referees shall be appointed by the
secretary as authorized pursuant to K.S.A. 44-714(c), and amendments
thereto, and must meet qualifications established by regulation. Appointed
referees shall hear and decide appeals in disputed claims.
(e) Time computation. Computation of employer response and appeal
deadlines shall exclude the date of the triggering event and extend to the
next business day if deadlines fall on a weekend or legal holiday.
(f) Employment security board of review. (1) There is hereby
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HB 2764 103
established the employment security board of review, hereinafter referred
to as the board. The board shall consist of three members, each appointed
for a term of four years. No more than two members shall belong to the
same political party.
(2) (A) When a vacancy occurs on the board, the workers
compensation and employment security boards nominating committee,
established pursuant to K.S.A. 44-551, and amendments thereto, shall
convene and nominate a qualified candidate. The nomination shall be
submitted to the governor, subject to senate confirmation pursuant to
K.S.A. 75-4315b, and amendments thereto.
(B) Applications must be submitted to the director of unemployment,
who shall verify qualifications. Qualified applicants will be forwarded to
the nominating committee for consideration.
(C) Minimum qualifications for nominees, listed in order of priority,
are as follows:
(i) A minimum of eight years of direct experience in human resources,
including policies, processes or employee relations;
(ii) at least three years of direct experience in employment security
law or related administrative processes; and
(iii) demonstrated knowledge of unemployment and labor law.
(D) The governor may either accept the committee's nominee and
forward the appointment for senate confirmation or request an alternative
nomination. Except as provided by K.S.A. 46-2601, and amendments
thereto, no appointee shall exercise any official duties until confirmed by
the senate.
(3) Board members may serve no more than two consecutive terms.
(4) Each board member shall serve until a successor has been
appointed and confirmed. Vacancies occurring before term expiration
shall be filled for the unexpired term through the same appointment
process.
(5) Board members shall receive $15,000 annually as compensation,
in addition to reimbursement for actual and necessary travel and related
expenses incurred in performance of such members' duties. Such payments
shall be made in accordance with regulations adopted by the secretary
and shall be paid from the employment security administration fund.
(6) (A) The board shall elect a chairperson annually from among its
members, who shall serve a one-year term and continue until a successor
is elected.
(B) Meetings shall be held on the first Monday of each month or at
the call of the chairperson or any two members.
(C) The secretary shall appoint an executive secretary to the board.
The executive secretary or the secretary's designee shall attend all board
and panel meetings.
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(7) (A) The board may, on its own motion:
(i) Affirm, modify or set aside any decision of a referee based on the
existing record;
(ii) direct the taking of additional evidence;
(iii) allow further appeal from any party to a referee decision that
reverses or modifies an examiner's decision; and
(iv) remove any claim pending before a referee and conduct a
hearing pursuant to subsection (c).
(B) The board or panel shall promptly notify all parties of its findings
and decision.
(8) A majority of members shall constitute a quorum. No board
decision shall be valid without the affirmative vote of a majority of
members. A vacancy on the board shall not prevent a quorum from
conducting official business.
(g) Procedure for disputed claims. (1) Disputed claims shall be
presented, heard and resolved according to procedures established by the
employment security board of review. These procedures shall ensure a fair
determination of the rights of all parties and may deviate from formal
rules of evidence or civil procedure when appropriate for administrative
efficiency.
(2) A complete record shall be maintained for all disputed claims,
including all testimony, findings and decisions. Hearings shall be
recorded, but transcripts shall only be required if the matter proceeds to
further appeal. The board or panel shall have full access to any relevant
records held by the secretary and may request assistance from the
secretary in carrying out its official duties.
(h) Witness compensation. Any witness subpoenaed under this section
shall be entitled to receive fees and necessary travel expenses as set by the
board. These expenses shall be considered part of the administrative costs
of carrying out the employment security act.
(i) Judicial review of board actions. (1) Decisions of the employment
security board of review shall become final upon mailing, unless a petition
for review in accordance with the Kansas judicial review act is filed within
16 calendar days of the mailing date of the decision.
(2) Decisions are not subject to reconsideration once mailed. No
bond shall be required to initiate judicial review. In addition to parties
authorized pursuant to K.S.A. 77-611, and amendments thereto, the
examiner shall also have standing to seek judicial review. Review
proceedings shall be expedited and given precedence over all other civil
matters, except for workers compensation cases.
(j) Limitation on use of administrative findings. (1) Findings,
judgments or decisions made by the board, a panel, an examiner, referee
or any authorized decision-maker under the employment security law shall
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HB 2764 105
not be admissible or binding in any separate or future legal action
between the claimant and any current or former employer.
(2) The provisions of paragraph (1) shall apply regardless of the
forum and whether the prior case involved similar facts, parties or legal
questions.
(k) Hearing participation and format. (1) Parties to any proceeding
under this section may appear in person or through a designated
representative to present evidence and state such party's case.
(2) Hearings may be conducted in person or remotely by phone or
video conference.
(A) Hearings shall be conducted remotely unless a party requests in-
person attendance with good cause. If granted, the board may require all
parties to appear in person or may allow nonrequesting parties to appear
virtually.
(B) Hearing notices shall clearly state the right to request an in-
person hearing and provide instructions on how to do so.
Sec. 12. K.S.A. 2025 Supp. 44-709b is hereby amended to read as
follows: 44-709b. (a) An individual aggrieved by a violation of K.S.A.
2025 Supp. 44-663, and amendments thereto, who has filed a claim for
benefits under the employment security law and who is otherwise eligible
for benefits under the employment security law shall not become ineligible
for benefits pursuant to K.S.A. 44-705, and amendments thereto, or be
disqualified from receiving benefits pursuant to K.S.A. 44-706, and
amendments thereto, on the grounds that the claimant:
(1) Was discharged or suspended for misconduct if the employer's
conduct in discharging or suspending such claimant was a violation of
K.S.A. 2025 Supp. 44-663, and amendments thereto; or
(2) has declined to accept work that requires compliance with a
COVID-19 vaccine requirement if the claimant has requested an
exemption from the prospective employer in accordance with section 1
K.S.A. 2025 Supp. 44-663 , and amendments thereto, and such request was
denied. In such case, such work for such claimant shall be deemed not to
constitute suitable work for purposes of the employment security law.
(b) (1) Notwithstanding the time limitations of K.S.A. 44-709, and
amendments thereto, the provisions of K.S.A. 44-706, and amendments
thereto, or any other provision of the employment security law to the
contrary, a claimant upon request shall be retroactively paid benefits for
any week that the claimant would otherwise have been eligible for such
benefits, if such claimant was disqualified from receiving such benefits
during the period of September 9, 2021, through the effective date of this
act November 23, 2021, on the grounds that the claimant was discharged or
suspended for misconduct as the result of the claimant's refusal to comply
with a COVID-19 vaccine requirement after the claimant requested an
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HB 2764 106
exemption or accommodation from such requirement provided by state or
federal law and such request was denied.
(2) The secretary of labor shall independently review any claims
denied during the period of September 9, 2021, through the effective date
of this act November 23, 2021, to determine if the claimant was
disqualified from receiving benefits on the grounds that the claimant was
discharged or suspended for misconduct as the result of the claimant's
refusal to comply with a COVID-19 vaccine requirement after the
claimant requested an exemption or accommodation from such
requirement provided by state or federal law and such request was denied.
If the claimant has not requested retroactive payment of such benefits as
provided by paragraph (1), the secretary shall retroactively pay benefits to
such claimant for any week that the claimant would otherwise have been
eligible for such benefits.
(3) The claimant or the employer may appeal an award or denial of
benefits made pursuant to this section as provided in K.S.A. 44-709, and
amendments thereto.
(4) The secretary of labor shall develop and implement procedures to
enable claimants to retroactively substantiate and file claims under this
subsection.
(c) Benefits awarded to a claimant who receives back pay pursuant to
K.S.A. 2025 Supp. 44-663(c), and amendments thereto, shall be subject to
the repayment back pay or benefit offset and other settlement pay
provisions of K.S.A. 44-706(s) and 44-719(d) 44-706 , and amendments
thereto, if applicable.
(d) As used in this section:
(1) "COVID-19 vaccine requirement" means the same as in K.S.A.
2025 Supp. 44-663, and amendments thereto; and
(2) all other terms mean the same as in the employment security law.
(e) (1) The provisions of this section shall expire and have no further
force or effect on and after July 1, 2027.
(2) No later than January 15, 2027, the secretary of labor shall
submit a report to the legislature that identifies:
(A) The number of claims processed under this section;
(B) any pending reviews or appeals under this section; and
(C) whether continued application of this section is necessary to
resolve active matters.
(3) No new claims or requests for retroactive review shall be
accepted pursuant to this section after January 1, 2027. The secretary
shall publish guidance outlining a final submission deadline no later than
August 1, 2026, and ensure such guidance is prominently posted on the
department's website.
(4) The repeal of this section shall not affect any valid rights,
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determinations, appeals or repayments established prior to this section's
expiration date.
Sec. 13. K.S.A. 2025 Supp. 44-710 is hereby amended to read as
follows: 44-710. (a) Employer contributions and payment obligations .
Contributions shall accrue and become payable by (1) Each contributing
employer shall pay unemployment insurance contributions to the secretary
for deposit in the employment security fund for each calendar year that in
which the contributing employer is subject to the employment security law
with respect to. Contributions shall be calculated based on wages paid for
employment. Such contributions shall become due as defined in K.S.A. 44-
703, and be amendments thereto, and paid by each contributing employer
to the secretary for the employment security fund in accordance with such
rules and regulations as adopted by the secretary may adopt and.
(2) Contributions shall not be withheld or deducted, in whole or in
part, from the an employee's wages of individuals in such employer's
employ. In the payment of.
(3) When calculating contributions due, any contributions, a
fractional part of $.01 amount less than $.005 shall be disregarded unless it
amounts to $.005 or more, in which case it . Any fractional amount equal
to or greater than $.005 shall be increased to $.01. Should contributions
for any calendar quarter be less than $5, no rounded up to the nearest cent.
(4) No contribution payment shall be required for any calendar
quarter in which the total calculated contribution is less than five dollars.
(b) Contribution rates and wage base of contributions . (1) Except as
provided in paragraph (2), each contributing employer shall pay
contributions on wages paid by the contributing employer for covered
employment during each calendar year with respect to employment as
provided in K.S.A. 44-710a, and amendments thereto.
(2) (A) If the United States congress of the United States either
amends or repeals the Wagner-Peyser act, the federal unemployment tax
act, the federal social security act, or subtitle C of chapter 23 of the federal
internal revenue code of 1986, as amended, or any act or acts
supplemental to or in lieu thereof, or any part or parts of any such law, or
if any such law, or any part or parts thereof, are of such laws are held
invalid with the effect such that federal grants or appropriations of funds
by congress and grants thereof to the state of to Kansas for the payment of
costs of administration of the employment security law are no longer
available for such purposes; or (B) if, Kansas employers in Kansas subject
to the payment of tax under the shall receive full credit against the federal
unemployment tax act are granted full credit against such tax for
contributions or taxes paid to the secretary of labor, state, then, and in
either such case, beginning with effective the year that the unavailability of
federal appropriations and grants for such purpose occurs or that such
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change in liability for payment of such federal tax occurs such federal
changes take effect and for each year thereafter , the rate of contributions
of. Each contributing employer employer's rate shall be equal to the total
sum of 0.5% and plus the employer's experience-rated contribution rate of
contributions as determined for such contributing employer under
pursuant to K.S.A. 44-710a, and amendments thereto. The amount of
contributions that each contributing employer becomes liable to pay under
this paragraph over the amount of contributions that such contributing
employer would be otherwise liable to pay
(B) Any additional contributions collected pursuant to this subsection
shall be credited to the employment security administration fund to be
disbursed and paid out under the same conditions and shall be used solely
for the same purposes as other moneys are authorized to be paid from the
employment security administration fund, except that, provided by law.
(C) If the secretary determines that, as of the first day of January 1 of
any year there is an excess in , the employment security administration
fund over the amount required to be disbursed balance exceeds what is
needed for disbursements during such year, an amount equal to such
excess as determined by the secretary the excess amount shall be
transferred to the employment security fund.
(c) Charging of benefit payments to employer accounts. (1) The
secretary shall maintain a separate an individual account for each
contributing employer , and shall credit the contributing employer's that
account with all the contributions paid on the contributing employer's own
behalf. Nothing in the employment security law shall be construed to grant
any employer or individuals in such employer's service prior claims or
rights to the amounts paid remitted by such employer into or on behalf of
the employer. No employer or individual in the employer’ s service shall
have any vested right or claim to amounts contributed to the employment
security fund either on such employer's own behalf or on behalf of such
individuals by that employer . Benefits paid to a claimant shall be
proportionally charged against to the accounts of each all base period
employer in employers, based on the proportion that the base period ratio
of wages paid to an eligible individual by each such employer bears to the
total wages in the base period. Benefits shall be charged wages. Charges to
contributing employers' accounts employers and rated governmental
employers' accounts upon the basis of employers shall be assessed
quarterly in accordance with benefits paid disbursed during each calendar
quarter.
(2) (A) Benefits paid in benefit years established by valid new claims
shall not be charged to the account of a contributing employer or rated
governmental employer who is a base period employer if the examiner
finds that an employer's account under the following conditions:
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(A) The claimant was separated from the claimant's most recent
employment with such employer under any of the following conditions
employer due to:
(i) DischargedDischarge by the employer for misconduct or gross
misconduct connected with the individual's related to work; or
(ii) leaving work voluntarily quitting without good cause attributable
to the claimant's work or the employer; or
(iii) discharged from an employer directly impacted by COVID-19 in
accordance with the families first coronavirus response act, public law
116-127.
(B) Where base period wage credits of a contributing employer or
rated governmental employer represent part-time employment and the
claimant continues in that part-time employment with that employer
during the period for which benefits are paid, then that employer's account
shall not be charged with any part of the benefits paid if the employer
provides the secretary with information as required by rules and
regulations. For the purposes of this subparagraph, "part-time
employment" means any employment when an individual works less than
full-time because the individual's services are not required for the
customary, scheduled full-time hours prevailing at the work place or the
individual does not customarily work the regularly scheduled full-time
hours due to personal choice or circumstances.
(C) No contributing employer or rated governmental employer's
account shall be charged with any extended benefits paid in accordance
with the employment security law, except for weeks of unemployment
beginning after December 31, 1978, all contributing governmental
employers and governmental rated employers shall be charged an amount
equal to all extended benefits paid.
(D) No contributing employer or rated governmental employer's
account will be charged for benefits paid a claimant while pursuing an
approved training course as defined in K.S.A. 44-703(s), and amendments
thereto.
(E) No contributing employer or rated governmental employer's
account shall be charged with respect to the benefits paid to any individual
whose base period wages include wages for services not covered by the
employment security law prior to January 1, 1978, to the extent that the
employment security fund is reimbursed for such benefits pursuant to
section 121 of public law 94-566, 90 Stat. 2673.
(F) With respect to weeks of unemployment beginning after
December 31, 1977, wages for insured work shall include wages paid for
previously uncovered services. For the purposes of this subparagraph, the
term "previously uncovered services" means services that were not
covered employment, at any time during the one-year period ending
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December 31, 1975, except to the extent that assistance under title II of the
federal emergency jobs and unemployment assistance act of 1974 was paid
on the basis of such services, and that:
(i) Are agricultural labor as defined in K.S.A. 44-703(w), and
amendments thereto, or domestic service as defined in K.S.A. 44-703(aa),
and amendments thereto;
(ii) are services performed by an employee of this state or a political
subdivision thereof, as provided in K.S.A. 44-703(i)(3)(E), and
amendments thereto; or
(iii) are services performed by an employee of a nonprofit educational
institution that is not an institution of higher education.
(G) Contributing employers, rated
(B) the employer provided part-time employment during the benefit
period, and the claimant remained employed in the same part-time role;
(C) the benefits paid were extended benefits, including such benefits
paid after 1978 for governmental employers and reimbursing, which shall
be charged in full to governmental employers only;
(D) the claimant was participating in an approved training program
as defined pursuant to K.S.A. 44-703, and amendments thereto; or
(E) the claim was determined to be fraudulent or improper, and the
employer reported it as such. Employers shall be held harmless for and
shall not be required to reimburse the state for claims or benefits paid that
have been reported by the employer to the secretary and determined by the
secretary as fraudulent or as an improper payment, and reimbursed or
credited accordingly unless the secretary determines the claims are claim
was not fraudulent or improper as provided by in K.S.A. 44-710b(b)(2)
(A), and amendments thereto. The time limitation for disputing a claim or
an appeal of a claim as provided by this section, or by any other provision
of the employment security law, shall not apply to identifications of fraud
reported to the secretary for claims or benefits paid during the period
beginning on There is no time limit on reporting fraud for claims filed
between March 15, 2020, through and December 31, 2022. Contributing
employers, rated governmental employers and reimbursing employers
shall be refunded or credited, in the discretion of the employer, as provided
by K.S.A. 44-710b, and amendments thereto, for any claims or benefits
paid that have been reported as fraudulent.
(F) For the purposes of this paragraph, "part-time employment"
means work performed for fewer hours than the employer's customary
full-time schedule, either due to employer need or claimant choice.
(3) An employer's account shall not be relieved of charges relating to
a payment that was made erroneously if the secretary determines that if:
(A) The erroneous payment was made because due to the employer,
employer's or the agent of the employer, was at fault for failing to respond
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HB 2764 111
employer's agent's failure to timely or adequately respond to a written the
secretary's request from the secretary for information relating to the claim
for unemployment compensation; and
(B) the employer or agent has established demonstrated a pattern of
failing failure within the preceding 12 months, defined as:
(i) to respondFailing to timely or adequately to respond to a request
for information by the secretary two or more times; or
(ii) failing to timely or adequately respond to more than 2% of the
requests for information by the secretary.
(C) For purposes of this paragraph:
(i) "Erroneous payment" means a payment that but for the failure by
the employer or the employer's agent with respect to the claim for
unemployment compensation, would not have been made; and
(ii) "pattern of failure" means repeated documented failure on the part
of the employer or the agent of the employer to respond, taking into
consideration the number of instances of failure in relation to the total
volume of requests. An employer or employer's agent failing to respond as
described in subparagraph (A) shall not be determined to have engaged in
a "pattern of failure" if the number of such failures during the year prior to
such request is fewer than two, or less than 2%, of such requests,
whichever is greater.
(D) Determinations of the secretary prohibiting the relief of charges
pursuant to this section shall be subject to appeal or protest as other
determinations of the agency with respect to the charging of employer
accounts.
(4) The examiner shall notify any base period employer whose
account will be charged with benefits paid Employers shall be notified by
the secretary of claim charges following the filing of a valid new claim
and a determination by the examiner based on all information relating to
the claim contained in the records of the division of employment security.
Such for benefits by a claimant. This notice shall become be final and
benefits charged to the base period employer's account in accordance with
the claim dispositive of the matters as set forth in such notice unless the
employer responds within 10 calendar days from the date the notice was
sent, the base period employer requests in writing that the examiner
reconsider the determination and furnishes any required information in
accordance with the secretary's rules and regulations. In a similar manner,
a notice of an additional claim followed by the first payment of benefits
with respect to the benefit year, filed by an individual during a benefit year
after a period in such year during which such individual was employed,
shall be given to any base period employer of the individual who has
requested such a notice within 10 calendar days from the date the notice of
the valid new claim was sent to such base period employer. For purposes
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HB 2764 112
of this paragraph, if the required information is not submitted or
postmarked within a response time limit of 10 days after the base period
employer notice was sent, the base period employer shall be deemed to
have waived its standing as a party to the proceedings arising from the
claim and shall be barred from protesting any subsequent decisions about
the claim by the secretary, a referee, the board of review or any court,
except that the base period employer's response time limit may be waived
or extended by the examiner or upon appeal, if timely response was
impossible due to receipt of such notice with a written request for
reconsideration accompanied by any information requested from such
employer in the notice by the secretary. The failure to respond timely,
without excusable neglect . The examiner shall notify the employer of the
reconsidered determination, which shall be subject to appeal or further
reconsideration, in accordance with the provisions of K.S.A. 44-709, and
amendments thereto , shall result in the loss of protest rights against the
claim by such employer.
(5) Time, computation and extension. In computing the period of time
for a base period employer response or appeals under any deadline
pursuant to this section from , the date of the examiner's or the special
examiner's determination or from the referee's decision, the day of the act,
triggering event or default from which the designated period of time
begins to run shall not be included. The last day of the period shall be
included unless it is excluded. If the deadline falls on a Saturday, Sunday
or legal holiday, in which event the period runs until the end of extends to
the next day that is not a Saturday, Sunday or legal holiday business day.
(d) Pooled fund. (1) All contributions and , payments in lieu of
contributions and benefit cost payments to reimbursements deposited into
the employment security fund shall be pooled and available. Such pooled
resources shall be used to pay unemployment insurance benefits to any
individual entitled thereto under eligible individuals pursuant to the
employment security law, regardless of the specific source of such the
contributions or payments in lieu of contributions or benefit cost payments
reimbursements.
(2) The secretary shall administer the pooled fund in accordance with
all federal requirements for state unemployment compensation trust funds
and ensure the fund’ s integrity, solvency and transparency through
published reports and audits as required by law.
(e) Election to become reimbursing employer; payment in lieu of
contributions. (1) Any governmental entity, Indian tribes tribe or tribal
units, ( unit, including subdivisions, subsidiaries or wholly owned business
enterprises wholly owned by such Indian tribes), for which services are
performed as described in K.S.A. 44-703(i)(3)(E), and amendments
thereto, or any nonprofit organization or group of nonprofit organizations
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HB 2764 113
described in exempt under section 501(c)(3) of the federal internal revenue
code of 1986 that is exempt from income tax under section 501(a) of such
code, that becomes subject to the employment security law may elect to
become a reimbursing employer under this paragraph and agree to pay the
secretary for reimburse the employment security fund an amount for
benefits paid instead of paying contributions based on a contribution rate.
The reimbursement shall be equal to the full amount of regular benefits
paid and ½ of the any extended benefits paid that are attributable to
service in the employ of for such reimbursing employer, except that each
reimbursing governmental employer, . Governmental entities and Indian
tribes or tribal units shall pay an amount equal to reimburse the full
amount of regular benefits and extended benefits paid for weeks of
unemployment beginning after their respective effective dates under
federal law.
(A) To elect reimbursing status, eligible employers shall file a written
notice with the secretary within 30 days of:
(i) January 1 of any calendar year; or
(ii) the date of the secretary’ s determination of such employer's status
as subject to the employment security law, whichever is later.
(B) An election shall remain in effect for a minimum of four calendar
years and after such period shall remain in effect until a written
termination notice is filed with the secretary at least 30 days before the
start of a new calendar year.
(C) Employers that previously elected to be contributing employers
pursuant to the employment security law and have fulfilled the minimum
time requirement of such election may switch status to that of a
reimbursing employer by filing written notice with the secretary at least 30
days before the start of a new calendar year. Such election shall remain in
effect for a minimum of four calendar years.
(D) The secretary may extend filing deadlines or permit retroactive
elections if good cause is shown, but not prior to January 1 of the year
that the election is received by the secretary from the employer.
(E) The secretary shall issue written notices of election status,
effective dates and terminations. Such determinations are subject to
appeal pursuant to K.S.A. 44-710b, and amendments thereto.
(2) (A) All reimbursing employers, except the state of Kansas, shall:
(i) Submit quarterly wage reports by the last day of the month
following each calendar quarter; and
(ii) pay the full amount of regular and 1/2 of extended benefits paid
during each calendar quarter.
(B) Governmental entities and Indian tribes shall pay the full amount
of both regular and extended benefits after applicable federal effective
dates.
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HB 2764 114
(C) Payment shall be due within 30 days after the billing notice is
mailed or delivered, unless a redetermination is requested.
(D) Reimbursement payments shall not be deducted from employee
wages.
(E) Employers shall submit written redetermination requests within
15 days of receiving a billing notice in accordance with K.S.A. 44-710b,
and amendments thereto.
(3) (A) Past-due payments are subject to penalties and interest
pursuant to K.S.A. 44-717, and amendments thereto.
(B) The secretary may remove delinquent nonprofit or governmental
employers from reimbursement status for two years.
(C) Indian tribes failing to make timely payments may lose their right
to reimburse and their employment may be excluded from coverage.
Reinstatement shall require full payment and one year of compliance.
(D) The secretary shall notify the internal revenue service and the
United States department of labor of final delinquencies.
(E) (i) The secretary may require delinquent or newly electing
employers to post a surety bond or equivalent deposit.
(ii) Such bond shall not exceed 5.4% of the previous four quarters'
taxable wages or, if no wages were reported, an amount determined by the
secretary.
(iii) A failure to comply by the employer may result in the loss of
reimbursing status for the current and following calendar year.
(4) (A) The state shall reimburse benefits at a fiscal year rate
determined annually by the secretary based on account balances, claims
history and wage estimates.
(B) Such rate shall apply uniformly across agencies and shall be
certified annually by the secretary to the secretary of administration.
(C) Adjustments may be made by the secretary annually to reconcile
over or underpayments.
(f) Allocation of benefit costs. (1) The secretary shall charge each
reimbursing employer as follows:
(A) The full amount of regular benefits and ½ of extended benefits
paid to claimants shall be charged to the account of the reimbursing
employer, except as provided by paragraph (B).
(B) Reimbursing employers shall be charged for the full amount of
both regular and extended benefits paid for weeks of unemployment
beginning after:
(i) December 31, 1978, for governmental employers and December
21, 2000, for Indian tribes or tribal units to individuals for weeks of
unemployment that begin during the effective period of such election.
(A) Any employer identified in this paragraph may elect to become a
reimbursing employer for a period encompassing not less than four
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HB 2764 115
complete calendar years if such employer files with the secretary a written
notice of such election within the 30-day period immediately following
January 1 of any calendar year or within the 30-day period immediately
following the date when a determination of subjectivity to the employment
security law is issued, whichever occurs later.
(B) Any employer that makes an election to become a reimbursing
employer in accordance with subparagraph (A) will continue to be liable
for payments in lieu of contributions until such employer files with the
secretary a written notice terminating its election not later than 30 days
prior to the beginning of the calendar year for which such termination shall
first be effective.
(C) Any employer identified in this paragraph that has remained a
contributing employer and has been paying contributions under the
employment security law for a period subsequent to January 1, 1972, may
change to a reimbursing employer by filing with the secretary not later
than 30 days prior to the beginning of any calendar year a written notice of
election to become a reimbursing employer. Such election shall not be
terminable by the employer for four complete calendar years.
(D) The secretary may for good cause extend the period within which
a notice of election, or a notice of termination, must be filed and may
permit an election to be retroactive but not any earlier than with respect to
benefits paid after January 1 of the year such election is received.
(E) The secretary, in accordance with such rules and regulations as
the secretary may adopt, shall notify each employer identified in this
paragraph of any determination that the secretary may make of its status as
an employer and of the effective date of any election that it makes to
become a reimbursing employer and of any termination of such election.
Such determinations shall be subject to reconsideration, appeal and review
in accordance with the provisions of K.S.A. 44-710b, and amendments
thereto.
(2) Reimbursement reports and payments. Payments in lieu of
contributions shall be made in accordance with the provisions of
subparagraph (A) by all reimbursing employers except the state of Kansas.
Each reimbursing employer shall report total wages paid during each
calendar quarter by filing quarterly wage reports with the secretary that
shall be filed by the last day of the month following the close of each
calendar quarter. Wage reports are deemed filed as of the date they are
placed in the United States mail.
(A) At the end of each calendar quarter, or at the end of any other
period as determined by the secretary, the secretary shall bill each
reimbursing employer, except the state of Kansas: (i) An amount to be paid
that is equal to the full amount of regular benefits plus ½ of the amount of
extended benefits paid during such quarter or other prescribed period that
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HB 2764 116
is attributable to service in the employ of such reimbursing employer; and
(ii) for weeks of unemployment beginning after December 31, 1978, each
reimbursing governmental employer and December 21, 2000, for Indian
tribes or tribal units shall be certified an amount to be paid that is equal to
the full amount of regular benefits and extended benefits paid during such
quarter or other prescribed period that is attributable to service in the
employ of such reimbursing governmental employer.
(B) Payment of any bill rendered under subparagraph (A) shall be
made not later than 30 days after such bill was mailed to the last known
address of the reimbursing employer, or otherwise was delivered to such
reimbursing employer, unless there has been an application for review and
redetermination in accordance with subparagraph (D).
(C) Payments made by any reimbursing employer under the
provisions of this paragraph shall not be deducted or deductible, in whole
or in part, from the remuneration of individuals in the employ of such
employer.
(D) The amount due specified in any bill from the secretary shall be
conclusive on the reimbursing employer, unless, not later than 15 days
after the bill was mailed to the last known address of such employer, or
was otherwise delivered to such employer, the reimbursing employer files
an application for redetermination in accordance with K.S.A. 44-710b, and
amendments thereto.
(E) (i) Past due payments of amounts certified by the secretary under
this section shall be subject to the same interest, penalties and actions
required by K.S.A. 44-717, and amendments thereto.
(ii) If any nonprofit organization or group of nonprofit organizations
described in section 501(c)(3) of the federal internal revenue code of 1986
or governmental reimbursing employer is delinquent in making payments
of amounts certified by the secretary under this section, the secretary may
terminate such employer's election to make payments in lieu of
contributions as of the beginning of the next calendar year and such
termination shall be effective for such next calendar year and the calendar
year thereafter so that the termination is effective for two complete
calendar years.
(iii) Failure of an Indian tribe or tribal unit to make required
payments, including assessment of interest and penalty within 90 days of
receipt of a bill shall cause the Indian tribe to lose the option to make
payments in lieu of contributions as described pursuant to paragraph (e)(1)
for the following tax year unless payment in full is received before
contribution rates for the next tax year are calculated. Any Indian tribe that
loses the option to make payments in lieu of contributions due to late
payment or nonpayment, as described in this paragraph, shall have such
option reinstated, if after a period of one year, all contributions have been
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made on time and no contributions, payments in lieu of contributions for
benefits paid, penalties or interest remain outstanding.
(F) Failure of the Indian tribe or any tribal unit thereof to make
required payments, including assessments of interest and penalties, after
all collection activities deemed necessary by the secretary have been
exhausted, will cause services performed by such tribe to not be treated as
employment for purposes of K.S.A. 44-703(i)(3)(E), and amendments
thereto. If an Indian tribe fails to make payments required under this
section, including assessments of interest and penalties, within 90 days of
a final notice of delinquency, the secretary shall immediately notify the
United States internal revenue service and the United States department of
labor. The secretary may determine that any Indian tribe that loses
coverage pursuant to this paragraph may have services performed on
behalf of such tribe again deemed employment if all contributions,
payments in lieu of contributions, penalties and interest have been paid.
(G) In the discretion of the secretary, any employer who elects to
become liable for payments in lieu of contributions and any nonprofit
organization or group of nonprofit organizations described in section
501(c)(3) of the federal internal revenue code of 1986 or governmental
reimbursing employer or Indian tribe or tribal unit who is delinquent in
filing reports or in making payments of amounts certified by the secretary
under this section shall be required within 60 days after the effective date
of such election, in the case of an eligible employer so electing, or after the
date of notification to the delinquent employer under this subparagraph, in
the case of a delinquent employer, to execute and file with the secretary a
surety bond, except that the employer may elect, in lieu of a surety bond,
to deposit with the secretary money or securities as approved by the
secretary or to purchase and deliver to an escrow agent a certificate of
deposit to guarantee payment. The amount of the bond, deposit or escrow
agreement required shall not exceed 5.4% of the organization's taxable
wages paid for employment by the eligible employer during the four
calendar quarters immediately preceding the effective date of the election
or the date of notification, in the case of a delinquent employer. If the
employer did not pay wages in each of such four calendar quarters, the
amount of the bond or deposit shall be as determined by the secretary.
Upon the failure of an employer to comply with the provisions of this
subparagraph within the time limits imposed or to maintain the required
bond or deposit, the secretary may terminate the election of such eligible
employer or delinquent employer, as the case may be, to make payments in
lieu of contributions, and such termination shall be effective for the current
and next calendar year.
(H) The state of Kansas shall make reimbursement payments
quarterly at a fiscal year rate that shall be based upon: (i) The available
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balance in the state's reimbursing account as of December 31 of each
calendar year; (ii) the historical unemployment experience of all covered
state agencies during prior years; (iii) the estimate of total covered wages
to be paid during the ensuing calendar year; (iv) the applicable fiscal year
rate of the claims processing and auditing fee under K.S.A. 75-3798, and
amendments thereto; and (v) actuarial and other information furnished to
the secretary by the secretary of administration. In accordance with K.S.A.
75-3798, and amendments thereto, the claims processing and auditing fees
charged to state agencies shall be deducted from the amounts collected for
the reimbursement payments under this paragraph prior to making the
quarterly reimbursement payments for the state of Kansas. The fiscal year
rate shall be expressed as a percentage of covered total wages and shall be
the same for all covered state agencies. The fiscal year rate for each fiscal
year will be certified in writing by the secretary to the secretary of
administration on July 15 of each year and such certified rate shall become
effective on the July 1 immediately following the date of certification. A
detailed listing of benefit charges applicable to the state's reimbursing
account shall be furnished quarterly by the secretary to the secretary of
administration and the total amount of charges deducted from previous
reimbursing payments made by the state. On January 1 of each year, if it is
determined that benefit charges exceed the amount of prior reimbursing
payments, an upward adjustment shall be made therefor in the fiscal year
rate to be certified on the ensuing July 15. If total payments exceed benefit
charges, all or part of the excess may be refunded, at the discretion of the
secretary, from the fund or retained in the fund as part of the payments that
may be required for the next fiscal year.
(3) Allocation of benefit costs. The reimbursing account of each
reimbursing employer shall be charged the full amount of regular benefits
and ½ of the amount of extended benefits paid except that each
reimbursing governmental employer's account shall be charged the full
amount of regular benefits and extended benefits paid for weeks of
unemployment beginning after December 31, 1978, to individuals whose
entire base period wage credits are from such employer. When benefits
received by an individual are based upon base period wage credits from
more than one employer then the reimbursing employer's or reimbursing
governmental employer's account shall be charged in the same ratio as
base period wage credits from such employer bear to the individual's total
base period wage credits. Notwithstanding any other provision of the
employment security law, no reimbursing employer's or reimbursing
governmental employer's account shall be charged for payments of
extended benefits that are wholly reimbursed to the state by the federal
government.
(A) Proportionate allocation when fewer than all reimbursing base
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HB 2764 119
period employers are liable. If benefits paid to an individual are based on
wages paid by one or more reimbursing employers and on wages paid by
one or more contributing employers or rated governmental employers, the
amount of benefits payable by each reimbursing employer shall be an
amount that bears the same ratio to the total benefits paid to the individual
as the total base period wages paid to the individual by such employer
bears to the total base period wages paid to the individual by all of such
individual's base period employers.
(B) Proportionate allocation when all base period employers are
reimbursing employers. If benefits paid to an individual are based on
wages paid by two or more reimbursing employers, the amount of benefits
payable by each such employer shall be an amount that bears the same
ratio to the total benefits paid to the individual as the total base period
wages paid to the individual by such employer bear to the total base period
wages paid to the individual by all of such individual's base period
employers.
(4) Group accounts. Two or more reimbursing employers may file a
joint application to the secretary for the establishment of a group account
for the purpose of sharing the cost of benefits paid that are attributable to
service in the employment of such reimbursing employers. Each such
application shall identify and authorize a group representative to act as the
group's agent for the purposes of this paragraph. Upon approval of the
application, the secretary shall establish a group account for such
employers effective as of the beginning of the calendar quarter in which
the secretary receives the application and shall notify the group's
representative of the effective date of the account. Such account shall
remain in effect for not less than four years and thereafter such account
shall remain in effect until terminated at the discretion of the secretary or
upon application by the group. Upon establishment of the account, each
member of the group shall be liable for payments in lieu of contributions
with respect to each calendar quarter in the amount that bears the same
ratio to the total benefits paid in such quarter that are attributable to service
performed in the employ of all members of the group as the total wages
paid for service in employment by such member in such quarter bear to the
total wages paid during such quarter for service performed in the employ
of all members of the group. The secretary shall adopt such rules and
regulations as the secretary deems necessary with respect to applications
for establishment, maintenance and termination of group accounts that are
authorized by this paragraph, for addition of new members to, and
withdrawal of active members from such accounts, and for the
determination of the amounts that are payable under this paragraph by
members of the group and the time and manner of such payments. entities;
and
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(ii) December 21, 2000, for Indian tribes or tribal units.
(2) (A) If an individual's base period wages include wages from more
than one employer, the benefit charges shall be allocated proportionally
based on the share of base period wages attributable to each employer.
(B) (i) If an individual has base period wages from both reimbursing
employers and rated contributing governmental employers, the
reimbursing employer shall be liable for a portion of the benefits equal to
such employer's share of total base period wages.
(ii) If all base period employers are reimbursing employers, each
reimbursing employer is liable for a proportion of the total benefits paid
based on such employer's share of the total base period wages.
(3) Reimbursing employers shall not be charged for extended benefits
reimbursed in full by the federal government.
(4) (A) Each reimbursing employer shall be entitled to an annual
reconciliation of such employer's benefit charge account. Upon written
request submitted to the secretary no later than March 1 following the
close of the preceding calendar year, the secretary shall provide the
employer with a summary of benefit charges and payments for such year.
(B) If the employer believes it was overcharged or undercharged, the
employer may submit supporting documentation and request an
adjustment from the secretary. The secretary shall conduct an audit and
issue a written determination within 60 days of receipt of the request. Any
adjustment shall be applied to the employer's account as a credit or
additional charge in the current calendar year, as appropriate.
(5) (A) A reimbursing employer may protest the allocation of benefit
charges under this subsection if the employer believes an error has
occurred in the proportional allocation or in the identification of base
period wages.
(B) A protest shall be submitted to the secretary in writing within 30
calendar days of the date that the charge statement is issued by the
secretary. The secretary shall review the protest and issue a
redetermination, which shall be subject to further appeal as provided in
K.S.A. 44-710b, and amendments thereto.
(g) Supplemental unemployment benefit plans. Employer payments
made exclusively to a qualified and approved supplemental unemployment
benefit plan pursuant to section 2, and amendments thereto, shall not be
considered unemployment insurance contributions and shall not affect the
employer's experience rating or taxable wage base pursuant to the
employment security law.
Sec. 14. K.S.A. 2025 Supp. 44-710a is hereby amended to read as
follows: 44-710a. (a) Classification of employers by the secretary. The
term "employer" as used in this section refers to contributing employers.
The secretary shall classify employers in accordance with their actual
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HB 2764 121
experience in the payment of contributions on their own behalf and with
respect to benefits charged against their accounts with a view of fixing
such contribution rates as will reflect such experience. If, as of the date
such classification of employers is made, the secretary finds that any
employing unit has failed to file any report required in connection
therewith, or has filed a report which the secretary finds incorrect or
insufficient, the secretary shall make an estimate of the information
required from such employing unit on the basis of the best evidence
reasonably available to the secretary at the time, and notify the employing
unit thereof by mail addressed to its last known address. Unless such
employing unit shall file the report or a corrected or sufficient report as the
case may be, within 15 days after the mailing of such notice, the secretary
shall compute such employing unit's rate of contributions on the basis of
such estimates, and the rate as so determined shall be subject to increase
but not to reduction on the basis of subsequently ascertained information.
The secretary shall determine the contribution rate of each employer in
accordance with the requirements of this section Employer classification
and rate assignment. (1) The purpose of this section shall be to establish a
data-informed framework for determining employer contribution rates to
the unemployment insurance trust fund. This framework is intended to
account for economic conditions, historical claims experience and trust
fund solvency and provide employers with clear information and planning
tools to meet such employer's financial responsibilities under the
employment security law.
(2) For the purposes of this section, "employer" means any
contributing employer subject to the employment security law.
(3) The secretary shall annually classify employers based on such
employer's actual experience with contributions and benefits charged to
such employer's account to determine contribution rates that reflect
unemployment risk.
(4) The secretary shall notify employers electronically or by mail of
the respective classification, applicable rate and any deficiencies in
reporting. Employers shall correct such deficiencies within 15 days of
notice. The secretary shall base rates on estimated data, subject to upward
adjustment only.
(1)(b) New employers. (A) No (1) An employer will shall not be
eligible for a an experience-rated contribution rate computation until there
have been the employer has completed 24 consecutive calendar months
immediately preceding as an employer subject to the computation date
throughout employment security law, during which time benefits could
have been charged against such to the employer's account.
(B) (i) (a)(2) Each employer who is not eligible for a rate
contributionThe secretary shall pay contributions equal to 1.75% of wages
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HB 2764 122
paid during each calendar year with regard to employment, except such
employers assign a new employer a standard contribution rate of 1.75%
of taxable wages. A new employer engaged in the construction industry
shall pay a rate equal to 5.55%.
(b) (1) An employer who was not doing business in Kansas prior to
July 1, 2014, as defined by rules and regulations of the secretary , shall be
eligible for either the new employer rate under subsection (a)(1)(B)(i)(a)
or the rate associated with the reserve ratio such employer experienced in
the state which such employer was formerly located, but in no event less
than 1% if such: assigned a contribution rate of 5.55%.
(A)(3) A new employer that has operated in another state for at least
three consecutive years may elect to use its out-of-state reserve ratio for
rate assignment, subject to the following conditions:
(A) The employer submits authenticated documentation of its
unemployment insurance account history from the other state to the
secretary;
(B) the employer's Kansas operations fall within the same industry
classification as the prior out-of-state operations; and
(C) the employer submits such election to the secretary in writing or
through a secure digital portal provided by the department within 30 days
of receiving official notice of employment security law liability in Kansas.
(4) If the secretary determines that the employer has been in
operation in the other state or states for at least the three years immediately
preceding the date such employer becomes a liable employer in Kansas;
(B) employer provides the authenticated account history from
information accumulated from operations of such employer in the other
state or all the other states necessary to compute a current Kansas rate; and
(C) employer's business operations established in Kansas are of the
same nature, as defined by the North American industrial classification
system, as conducted by such employer in the other state or states.
(2) The election authorized in subsection (a)(1)(B)(i)(b) of this
section must be made in writing within 30 days after notice of Kansas
liability. A rate in accordance with subsection (a)(1)(B)(i)(a) will be
assigned unless a timely met the conditions pursuant to paragraph (3) and
approves the employer’ s election has been made.
(3) If the election is made timely , the employer's account will receive
the rate elected for the remainder of that rate year. The rate shall be
assigned for the next and subsequent years will be determined by the
condition of the account on the computation date.
(ii) For purposes of this subsection (a), employers shall be classified
by industrial activity in accordance with standard procedures as set forth in
rules and regulations adopted by the secretary. Employers engaged in more
than one type of industrial activity shall be classified by principal activity.
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All rates assigned will remain in effect for a complete calendar year. If the
sale or acquisition of a new establishment would require reclassification of
the employer to a different industry sector, the employer would be
promptly notified, and the contribution rate applicable to the new industry
sector would become effective the following January 1.
(C) "Computation date" means June 30 of each calendar year with
respect to rates of contribution applicable to the calendar year beginning
with the following January 1. In arriving at contribution rates for each
calendar year, contributions paid on or before July 31 following the
computation date for employment occurring on or prior to the computation
date shall be considered for each contributing employer who has been
subject to this act for a sufficient period of time to have such employer's
rate computed under this subsection (a).
(2) Eligible employers. (A) A associated with the out-of-state reserve
ratio shall be computed for each eligible employer by the following
method: for the remainder of such rate year, except that the rate assigned
shall not be less than 1.00%. The contribution rate for the subsequent
years shall be determined by the secretary based on the employer's
account condition as of the applicable computation date.
(5) If an employer's election submitted to the secretary under
paragraph (3) is denied, incomplete or results in an incorrect rate
assignment, the employer may request administrative review by filing a
written or electronic appeal with the secretary within 30 days of the denial
or rate notification. The secretary shall establish by rules and regulations
a standardized procedure for correction or redetermination.
(6) For the purposes of this subsection, employers shall be classified
by their primary industrial activity in accordance with the standard
classification procedures established by rules and regulations adopted by
the secretary. Employers engaged in multiple lines of business shall be
classified based on their principal activity. Assigned contribution rates
shall remain in effect for the entire calendar year. If an employer acquires
or sells an establishment in a manner that results in a change to such
employer's principal industry classification, the employer shall be
promptly notified by the secretary, and the new contribution rate
applicable to the new classification shall take effect on the next January 1.
(7) The secretary shall make available a secure, accessible electronic
system for filing new employer elections and submitting supporting
documentation to streamline compliance and support interstate business
mobility.
(c) Eligible employers. (1) The secretary shall compute a reserve
ratio for each eligible employer by deducting the total benefits charged to
the employer's account for all past years shall be deducted from all the
total contributions paid by such employer for all such years the same
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HB 2764 124
period. The resulting balance, whether positive or negative, shall be
divided by the employer's average annual payroll , and . The result shall
constitute constitutes the employer employer's reserve ratio.
(B) (i) Negative account balance employers, as defined in subsection
(d), shall pay contributions at the rate referenced in subsection (a)(4)(C).
(ii) (a) Beginning on July 1, 2024, and annually thereafter, active
negative rated employers shall be eligible for a calculated negative debt
write-off and forgiveness amount as determined pursuant to this subclause.
If on any computation date an employer's account registers a negative
reserve ratio less than or equal to -7.150%, a portion of benefit charges
shall be conditionally forgiven and removed from the employer's account
in order to bring the employer's account to a reserve ratio of -7.150%, and
the employer shall be assigned to rate group N11, as set forth in subsection
(a)(4)(C)(ii) for the next three calendar years.
(b) Negative rated employers affected by the conditional write-off
provision pursuant to subclause (a) shall have the option to avoid a
negative debt write-off and assignment to rate group N11 for the next three
calendar years by submitting a voluntary contribution pursuant to
subsection (c) equal to or greater than the amount necessary to establish
their account reserve ratio to an amount equal to or greater than -7.149%
for the next calendar year.
(C) (2) Eligible employers, other than negative account balance
employers, who that do not meet the average annual payroll requirements
as stated specified in K.S.A. 44-703 (a)(2), and amendments thereto, will
shall be issued assigned the maximum contribution rate indicated by
under the maximum highest rate group of standard rate schedule—
standard schedule G as defined in subsection (a)(4)(C)(ii) (e)(3) until such
employer establishes has reestablished a new period of 24 consecutive
calendar months immediately preceding the computation date , throughout
during which benefits could have been charged against such the
employer's account by resuming the payment of wages. Contribution rates
effective for each calendar year . Thereafter, the employer's contribution
rate shall be determined in accordance with subsection (e)(3), and
amendments thereto, based on the employer’ s account condition as
prescribed below of the applicable computation date.
(3)(d) Entering and expanding employer. (A) The secretary, as a
method of providing for a reduced rate of contributions to an employer
shall verify the qualifications in this statute that bear a direct relation to
unemployment risk for that employer.
(B) If, as of the computation date, an eligible, positive balance
employer's reserve ratio is significantly affected due to an (1) Employers
experiencing a payroll increase in the employer's taxable payroll of at least
100% and such increase is attributable due to a business growth in
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HB 2764 125
employment, and, not to a change in the taxable wage base from the
previous year, the secretary shall assign a changes, may qualify for a
reduced rate of contributions for a period of three years.
(i) Such reduced rate of contributions shall be equal to the new
employer rate described in subsection (a)(1)(B)(i)(a), or a rate based on the
employer's demonstrated risk as reflected in the employer's reserve fund
ratio prior reserve history.
(ii) To be eligible for such reduced rate, the employer must , if such
employers:
(A) Maintain a positive reserve ratio; and
(B) increase such employer's own account balance throughout
annually during the reduced-rate reduced rate period and must have an
increase in account balance for each year.
(4) (A) Contribution schedules. For each rate year, the contribution
schedule in effect shall be determined by the applicable fund control table
and rate schedule table of subsection (a)(4)(C).
(B) Published calculated maximum annual tax amounts per
employee. The secretary shall publish corresponding contribution amount
tables showing the calculated maximum annual cost to contributing rated
employers per employee for each rate group. Such contribution amount
tables shall be published on a publicly accessible website maintained by
the secretary.
(C) Effective rates. (i) Employer contribution rates to be effective for
each calendar year shall be determined by the applicable rate schedule in
clause (ii) and the fund control table for the rate year as specified
contained in this clause. The average high cost multiple of the trust fund as
of the computation date shall determine the contribution schedule in effect
for the next rate year. For purposes of subsection (a)(4)(C)(i), the average
high cost multiple is the reserve fund ratio divided by the average high
benefit cost rate. The average high benefit cost rate shall be determined by
averaging the three highest benefit cost rates over the last 20 years from
the preceding fiscal year which ended June 30. The high benefit cost rate is
defined by dividing total benefits paid in the fiscal year by total payrolls
for covered employers in the fiscal year. The reserve fund ratio shall be
determined by dividing total assets in the employment security fund
provided for in K.S.A. 44-712(a), and amendments thereto, excluding all
moneys credited to the account of this state pursuant to section 903 of the
federal social security act, as amended, that have been appropriated by the
legislature, whether or not withdrawn from the trust fund, and excluding
contributions not yet paid on July 31, by total payrolls for contributing
employers for the preceding fiscal year that ended on June 30.
(e) Contribution schedules, fund solvency management, employer
rate group, groups and rate schedules. (1) For each calendar rate year,
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HB 2764 126
the applicable employer contribution schedule shall be determined by the
secretary based on the average high cost multiple of the employment
security fund. The average high cost multiple is calculated as the reserve
fund ratio divided by the average of the three highest annual benefit cost
rates over the preceding 20 years. The schedule in effect shall be
determined by referencing the fund control table.
(2) The fund control table sets the thresholds for applying either
solvency or credit adjustments to employer contribution rates, based on
the average high cost multiple value. For rate year 2025 and all ensuing
calendar years, the following thresholds and adjustments apply:
Fund Control Table A
For Rate Year 2025 and Ensuing Calendar Years
Proportional
KS SUTA Lower Upper Solvency/Credit Solvency/Credit
Tax Rate AHCM AHCM Adjustment Adjustment
Schedules Threshold Threshold
M -1,000.00000 -0.00001 2.00% 0.05128%
L 0.00000 0.24999 1.70% 0.04359%
Solvency K 0.25000 0.44999 1.40% 0.03590%
Schedules J 0.45000 0.59999 1.10% 0.02821%
(H-M) I 0.60000 0.69999 0.80% 0.02051%
H 0.70000 0.74999 0.50% 0.01282%
Standard
Schedule G 0.75000 1.24999 0.00% 0.00000%
(G)
F 1.25000 1.29999 -0.50% -0.01282%
Credit E 1.30000 1.39999 -0.80% -0.02051%
Schedules D 1.40000 1.54999 -1.10% -0.02821%
(A-F) C 1.55000 1.74999 -1.40% -0.03590%
B 1.75000 1.99999 -1.70% -0.04359%
A 2.00000 1,000.00000 -2.00% -0.05128%
(ii)(3) Eligible employers shall be classified by rate group according
to the standard rate schedule - standard rate schedule G in this clause, for
that for the rate year. For rate year 2025 and all ensuing calendar years, the
rate pursuant to standard rate schedule G, solvency schedules H through M
or credit schedules A through F shall apply to contributing employers.
STANDARD RATE SCHEDULE -
STANDARD RATE SCHEDULE G
RateLower ReserveUpper Reserve Standard
Group Ratio Limit Ratio Limit Rate
0 100.000 1,000,000.000 0.00%
1 18.590 99.999 0.05%
2 17.875 18.589 0.10%
3 17.160 17.874 0.15%
4 16.445 17.159 0.25%
5 15.730 16.444 0.35%
6 15.015 15.729 0.45%
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7 14.300 15.014 0.55%
8 13.585 14.299 0.70%
9 12.870 13.584 0.85%
10 12.155 12.869 1.00%
11 11.440 12.154 1.15%
12 10.725 11.439 1.35%
13 10.010 10.724 1.55%
14 9.295 10.009 1.75%
15 8.580 9.294 1.95%
16 7.865 8.579 2.20%
17 7.150 7.864 2.45%
18 6.435 7.149 2.70%
19 5.720 6.434 2.95%
20 5.005 5.719 3.25%
21 4.290 5.004 3.55%
22 3.575 4.289 3.85%
23 2.860 3.574 4.15%
24 2.145 2.859 4.50%
25 1.430 2.144 4.85%
26 0.715 1.429 5.20%
27 0.000 0.714 5.55%
N1 -0.714 -0.001 5.85%5.95%
N2 -1.429 -0.715 6.15%6.35%
N3 -2.144 -1.430 6.45%6.75%
N4 -2.859 -2.145 6.75%7.15%
N5 -3.574 -2.860 7.00%7.60%
N6 -4.289 -3.575 7.25%8.05%
N7 -5.004 -4.290 7.50%8.50%
N8 -5.719 -5.005 7.75%8.95%
N9 -6.434 -5.720 7.95%9.45%
N10 -7.149 -6.435 8.15%9.95%
N11 -1,000,000.000 -7.150 8.35%10.45%
SOLVENCY RATE SCHEDULES (H-M)
Rate
Group M L K J I H
0 0.05% 0.04% 0.04% 0.03% 0.02% 0.01%
1 0.15% 0.14% 0.12% 0.11% 0.09% 0.08%
2 0.25% 0.23% 0.21% 0.18% 0.16% 0.14%
3 0.36% 0.32% 0.29% 0.26% 0.23% 0.20%
4 0.51% 0.47% 0.43% 0.39% 0.35% 0.31%
5 0.66% 0.61% 0.57% 0.52% 0.47% 0.43%
6 0.81% 0.76% 0.70% 0.65% 0.59% 0.54%
7 0.96% 0.90% 0.84% 0.78% 0.71% 0.65%
8 1.16% 1.09% 1.02% 0.95% 0.88% 0.82%
9 1.36% 1.29% 1.21% 1.13% 1.06% 0.98%
10 1.56% 1.48% 1.39% 1.31% 1.23% 1.14%
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11 1.77% 1.67% 1.58% 1.49% 1.40% 1.30%
12 2.02% 1.92% 1.82% 1.72% 1.62% 1.52%
13 2.27% 2.16% 2.05% 1.94% 1.84% 1.73%
14 2.52% 2.40% 2.29% 2.17% 2.06% 1.94%
15 2.77% 2.65% 2.52% 2.40% 2.28% 2.16%
16 3.07% 2.94% 2.81% 2.68% 2.55% 2.42%
17 3.37% 3.23% 3.10% 2.96% 2.82% 2.68%
18 3.67% 3.53% 3.38% 3.24% 3.09% 2.94%
19 3.98% 3.82% 3.67% 3.51% 3.36% 3.21%
20 4.33% 4.17% 4.00% 3.84% 3.68% 3.52%
21 4.68% 4.51% 4.34% 4.17% 4.00% 3.83%
22 5.03% 4.85% 4.68% 4.50% 4.32% 4.14%
23 5.38% 5.20% 5.01% 4.83% 4.64% 4.46%
24 5.78% 5.59% 5.40% 5.21% 5.01% 4.82%
25 6.18% 5.98% 5.78% 5.58% 5.38% 5.18%
26 6.58% 6.38% 6.17% 5.96% 5.75% 5.55%
27 6.99% 6.77% 6.56% 6.34% 6.12% 5.91%
N17.34%7.44%7.11%7.21%6.89%6.99%6.67%6.77%6.44%6.54%
6.22%6.32%
N27.69%7.89%7.46%7.66%7.23%7.43%7.00%7.20%6.77%6.97%
6.53%6.73%
N38.04%8.34%7.80%8.10%7.56%7.86%7.32%7.62%7.09%7.39%
6.85%7.15%
N48.39%8.79%8.14%8.54%7.90%8.30%7.65%8.05%7.41%7.81%
7.16%7.56%
N58.69%9.29%8.44%9.04%8.18%8.78%7.93%8.53%7.68%8.28%
7.42%8.02%
N68.99%9.79%8.73%9.53%8.47%9.27%8.21%9.01%7.95%8.75%
7.69%8.49%
N79.29%10.29%9.03%10.03%8.76%9.76%8.49%9.49%8.22%9.22%
7.95%8.95%
N89.60%10.80%9.32%10.52%9.04%10.24% 8.77%9.97%
8.49%9.69%8.21%9.41%
N99.85%11.35%9.56%11.06%9.28%10.78%8.99%10.49% 8.71%10.21%
8.42%9.92%
N1010.10%11.90%9.81%11.61% 9.51%11.31%9.22%11.02%
8.93%10.73%8.64%10.44%
N1110.35%12.45%10.05%12.15% 9.75%11.85%9.45%11.55%
9.15%11.25%8.85%10.95%
CREDIT RATE SCHEDULES (A-F)
Rate
Group F E D C B A
0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
1 0.02% 0.01% 0.00% 0.00% 0.00% 0.00%
2 0.06% 0.04% 0.02% 0.00% 0.00% 0.00%
3 0.10% 0.07% 0.04% 0.01% 0.00% 0.00%
4 0.19% 0.15% 0.11% 0.07% 0.03% 0.00%
5 0.27% 0.23% 0.18% 0.13% 0.09% 0.04%
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6 0.36% 0.31% 0.25% 0.20% 0.14% 0.09%
7 0.45% 0.39% 0.32% 0.26% 0.20% 0.14%
8 0.58% 0.52% 0.45% 0.38% 0.31% 0.24%
9 0.72% 0.64% 0.57% 0.49% 0.41% 0.34%
10 0.86% 0.77% 0.69% 0.61% 0.52% 0.44%
11 1.00% 0.90% 0.81% 0.72% 0.63% 0.53%
12 1.18% 1.08% 0.98% 0.88% 0.78% 0.68%
13 1.37% 1.26% 1.16% 1.05% 0.94% 0.83%
14 1.56% 1.44% 1.33% 1.21% 1.10% 0.98%
15 1.74% 1.62% 1.50% 1.38% 1.25% 1.13%
16 1.98% 1.85% 1.72% 1.59% 1.46% 1.33%
17 2.22% 2.08% 1.94% 1.80% 1.67% 1.53%
18 2.46% 2.31% 2.16% 2.02% 1.87% 1.73%
19 2.69% 2.54% 2.39% 2.23% 2.08% 1.92%
20 2.98% 2.82% 2.66% 2.50% 2.33% 2.17%
21 3.27% 3.10% 2.93% 2.76% 2.59% 2.42%
22 3.56% 3.38% 3.20% 3.02% 2.85% 2.67%
23 3.84% 3.66% 3.47% 3.29% 3.10% 2.92%
24 4.18% 3.99% 3.79% 3.60% 3.41% 3.22%
25 4.52% 4.32% 4.12% 3.92% 3.72% 3.52%
26 4.85% 4.65% 4.44% 4.23% 4.02% 3.82%
27 5.19% 4.98% 4.76% 4.54% 4.33% 4.11%
N15.48%5.58%5.26%5.36%5.03%5.13%4.81%4.91%4.59%4.69%
4.36%4.46%
N25.77%5.97%5.53%5.73%5.30%5.50%5.07%5.27%4.84%5.04%
4.61%4.81%
N36.05%6.35%5.81%6.11%5.58%5.88%5.34%5.64%5.10%5.40%
4.86%5.16%
N46.34%6.74%6.09%6.49%5.85%6.25%5.60%6.00%5.36%5.76%
5.11%5.51%
N56.58%7.18%6.32%6.92%6.07%6.67%5.82%6.42%5.56%6.16%
5.31%5.91%
N66.81%7.61%6.55%7.35%6.29%7.09%6.03%6.83%5.77%6.57%
5.51%6.31%
N77.05%8.05%6.78%7.78%6.51%7.51%6.24%7.24%5.97%6.97%
5.71%6.71%
N87.29%8.49%7.01%8.21%6.73%7.93%6.46%7.66%6.18%7.38%
5.90%7.10%
N97.48%8.98%7.19%8.69%6.91%8.41%6.62%8.12%6.34%7.84%
6.05%7.55%
N107.66%9.46%7.37%9.17%7.08%8.88%6.79%8.59%6.49%8.29%
6.20%8.00%
N117.85%9.95%7.55%9.65%7.25%9.35%6.95%9.05%6.65%8.75%
6.35%8.45%
(iii)(4) Not less later than 30 days prior to before January 1 of each
calendar year, the secretary shall publish the effective contribution
schedules for the previous four rate years and ensuing rate year following
information in a clear, tabular format on a publicly accessible website
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maintained by the department. All data summaries shall be made
available for public download and review, including:
(A) A comprehensive summary of employer contribution rate
schedules for the four most recent rate years and the upcoming rate year.
For each year, the summary shall include the:
(i) Applicable rate year;
(ii) contribution schedule in effect;
(iii) taxable wage base;
(iv) standard new employer contribution rate;
(v) new employer contribution rate for the construction industry;
(vi) rate group classifications;
(vii) reserve ratio ranges applicable to each rate group; and
(viii) contribution rate assigned to each rate group under the
applicable schedule; and
(B) a comprehensive summary of employer tax liability per employee
for the four most recent rate years and the upcoming rate year. For each
year, the summary shall include the:
(i) Applicable rate year;
(ii) contribution schedule in effect;
(iii) taxable wage base;
(iv) standard new employer contribution rate;
(v) new employer contribution rate for the construction industry;
(vi) rate group classifications;
(vii) reserve ratio ranges applicable to each rate group; and
(viii) maximum annual unemployment insurance tax liability per
employee for each rate group, based on the applicable schedule and wage
base.
(5) Commencing in 2027, and each year thereafter, the secretary
shall make available downloadable rate calculators or secure online
planning tools to assist employers in estimating unemployment insurance
contribution rates and projected liabilities. Such tools shall be designed to
promote transparency, support financial planning and improve
compliance, especially for small and emerging businesses. The calculators
shall incorporate current reserve ratios, rate groups and wage bases, and
shall be updated annually in conjunction with the publication of
contribution schedules pursuant to subsection (a)(5).
(b)(f) Successor classification employer classification and experience
transfer. (1) (A) For the purposes of this subsection, whenever if an
employing unit, whether or not it is an "employing unit" within the
meaning of K.S.A. 44-703(g), and amendments thereto, becomes an
employer pursuant to as defined in K.S.A. 44-703 (h)(4), and amendments
thereto, or is already an employer at the time of acquisition and meets the
definition of a "successor employer" as defined by pursuant to K.S.A. 44-
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703(dd), and amendments thereto, and thereafter transfers all or part of its
trade or business , or any portion thereof, to another employer and, at the
time of the transfer, there is substantially with whom it shares substantial
common ownership, management or control of the two employers, then ,
the unemployment experience attributable to the transferred trade or
business shall be transferred to the aquiring employer to whom such
business is so . The transferred . These unemployment experience factors
consist of all contributions paid, benefit experience and annual payrolls of
the predecessor employer. The transfer of some or shall include all of an
employer's workforce to another employer shall be considered
contributions paid, benefit charges and annual payrolls related to the
transferred operations. A transfer of employees shall be deemed a transfer
of trade or business when, as the result of such transfer, if the transferring
employer no longer performs trade or business with respect to the
transferred workforce, and such trade or business is performed by the
employer to whom the workforce is transferred ceases operating that
trade or business and the receiving employer continues such trade or
business.
(B) If, following a transfer of experience under subparagraph (A), the
secretary determines that a primary or substantial purpose of the transfer
or business was to obtain a reduced liability for contributions, then
unemployment insurance contribution rate, the secretary may:
(i) Combine the experience rating accounts of the employers all
involved shall be combined employers into a single account and;
(ii) assign a single contribution rate assigned to such the combined
account.
(2) A successor employer as defined by K.S.A. 44-703(h)(4) or (dd),
and amendments thereto, may receive the experience rating factors of the
predecessor employer if an application is made to the secretary or the
secretary's designee in writing within 120 days of the date of the transfer.
(3) Whenever an employing unit, whether or not it is an "employing
unit" within the meaning of K.S.A. 44-703(g), and amendments thereto,
acquires or in any manner succeeds to a percentage of an employer's
annual payroll which is less than 100% and intends to continue the
acquired percentage as a going business, the employing unit may acquire
the same percentage of the predecessor's experience factors if: (A) The
predecessor employer and successor employing unit make an application
in writing on the form prescribed by the secretary; (B) the application is
submitted within 120 days of the date of the transfer; (C) the successor
employing unit is or becomes an employer subject to this act immediately
after the transfer; (D) the percentage of the experience rating factors
transferred shall not be thereafter used in computing the contribution rate
for the predecessor employer; and (E) the secretary finds that such transfer
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HB 2764 132
will not tend to defeat or obstruct the object and purposes of this act.
(4) (A) The rate of both employers in a full or partial successorship
under paragraph (1) shall be recalculated and made effective on the first
day of the next calendar year following the date of transfer of trade or
business.
(B) If a successor employer is determined to be qualified under
paragraph (2) or (3) to receive the experience rating factors of the
predecessor employer, the rate assigned to the successor employer for the
remainder of the contributions year shall be determined by the following:
(i) If the acquiring employing unit was an employer subject to this act
prior to the date of the transfer, the rate of contribution shall be the same as
the contribution rate of the acquiring employer on the date of the transfer.
(ii) If the acquiring employing unit was not an employer subject to
this act prior to the date of the transfer, the successor employer shall have a
newly computed rate for the remainder of the contribution year which shall
be based on the transferred experience rating factors as they existed on the
most recent computation date immediately preceding the date of
acquisition. These experience rating factors consist of all contributions
paid, benefit experience and annual payrolls.
(5) Whenever an employing unit is not an employer at the time it
acquires the trade or business of an employer, the unemployment
experience factors of the acquired business shall not be transferred to such
employing unit if the secretary finds that such employing unit acquired the
business solely or primarily for the purpose of obtaining a lower rate of
contributions. Instead, such employing unit shall be assigned the
applicable industry rate for a "new employer" as described in subsection
(a)(1). In determining whether the business was acquired solely or
primarily for the purpose of obtaining a lower rate of contributions, the
secretary shall use objective factors which may include the cost of
acquiring the business, whether the employer continued the business
enterprise of the acquired business, how long such business enterprise was
continued, or whether a substantial number of new employees were hired
for performance of duties unrelated to the business activity conducted
prior to acquisition.
(6) Whenever an employer's account has been terminated as provided
in K.S.A. 44- 711(d) and (e), and amendments thereto, and the employer
continues with employment to liquidate the business operations, that
employer shall continue to be an "employer" subject to the employment
security law as provided in K.S.A. 44-703(h)(8), and amendments thereto.
The rate of contribution from the date of transfer to the end of the then
current calendar year shall be the same as the contribution rate prior to the
date of the transfer. At the completion of the then current calendar year, the
rate of contribution shall be that of a "new employer" as described in
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subsection (a)(1).
(7) No rate computation will be permitted an employing unit
succeeding to the experience of another employing unit pursuant to this
section for any period subsequent to such succession except in accordance
with rules and regulations adopted by the secretary. Any such regulations
shall be consistent with federal requirements for additional credit
allowance in section 3303 of the federal internal revenue code of 1986,
and consistent with the provisions of this act.
(c) Voluntary contributions. Notwithstanding; and
(iii) deny the transfer of experience or impose corrective adjustments
as necessary to preserve the integrity of the unemployment insurance
system.
(C) In determining intent, the secretary shall consider objective
criteria, including, but not limited to:
(i) The cost of acquisition and financing terms;
(ii) whether and for how long business operations continued;
(iii) continuity of management, location or branding;
(iv) the hiring of new employees to perform unrelated duties; and
(v) any other provision factors indicating an intent to manipulate
contribution rates.
(2) A successor employer as defined in K.S.A. 44-703, and
amendments thereto, may apply in writing for the transfer of the
predecessor's experience rating factors. The application shall be
submitted to the secretary or the secretary's designee within 120 days of
the date of the transfer.
(3) When an employing unit acquires less than 100% of the
predecessor's annual taxable payroll and intends to operate the acquired
portion as an ongoing business, the employing unit may apply to acquire a
proportional share of the predecessor's experience rating factors, provided
that the:
(A) Predecessor and successor submit a joint application on the form
prescribed by the secretary;
(B) application is submitted within 120 days of the acquisition date;
(C) successor is or becomes an employer subject to the employment
security law immediately following the transfer;
(D) transferred experience shall be excluded from future rate
calculations for the predecessor employer; and
(E) secretary finds that the transfer is not structured to defeat or
circumvent the objectives and intent of the employment security law , any
employer may make voluntary payments for the purpose of reducing or
maintaining a reduced rate in addition to the contributions.
(4) Percentage of experience rating factors transferred under this
subsection shall match the percentage of annual taxable payroll acquired,
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HB 2764 134
as determined using payroll records for the most recently completed
calendar year. The secretary shall establish by rules and regulations a
standardized process, including required under this section. Such
voluntary payments may be made only during the 90-day period
documentation, to verify payroll percentages and to support approval of
partial transfers.
(5) (A) For any full or partial successorship pursuant to paragraph
(1), the contribution rates of both the predecessor and successor
employers shall be recalculated, effective on January 1 of the calendar
year immediately following the date of mailing the transfer.
(B) If a successor is approved under paragraph (2) or (3) for an
experience transfer, the contribution rate for the remainder of the
calendar year in which the transfer occurred shall be, for an acquiring
employer that is:
(i) Already subject to the employment security law, the existing
contribution rate; and
(ii) not previously subject to the employment security law, a new
contribution rate computed using the transferred experience rating notices
for a calendar year. All such factors as of the most recent computation date
preceding the acquisition.
(6) If an employer's account is terminated pursuant to K.S.A. 44-
711(d) or (e), and amendments thereto, but the employer continues
employment for the sole purpose of liquidating its operations, the
employer shall remain a subject employer pursuant to K.S.A. 44-703, and
amendments thereto. The contribution rate in effect prior to termination
shall apply through the end of the calendar year, after which the new
employer rate under subsection (b)(2) shall apply.
(7) No employing unit shall receive an experience-based contribution
rate for any period following a transfer except as permitted by this
subsection and in accordance with rules and regulations adopted by the
secretary. Such rules shall comply with section 3303 of the internal
revenue code and be consistent with the provisions and purposes of the
employment security law.
(g) Voluntary contributions. Any employer may make voluntary
contribution payments shall be paid prior to the expiration of
contributions, in addition to required contributions, for the purpose of
reducing or maintaining a reduced contribution rate, subject to the
following conditions:
(1) A voluntary contribution may be made within 90 days of the
employer’ s receipt of the annual rate notice issued by the secretary;
(2) all voluntary contributions shall be received not later than 120
days after the beginning of the calendar year for which such rates are
effective. The amount of the rate applies;
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(3) voluntary contributions shall be credited to the employer's account
as of the next preceding most recent computation date and preceding the
employer's rate shall be computed accordingly. Under no circumstances
shall year and used solely for the purpose of recalculating the employer's
contribution rate; and
(4) voluntary payments be refunded in whole or in part contributions
shall be irrevocable and nonrefundable.
(d) As used in this section, "negative account balance employer"
means an eligible employer whose total benefits charged to such
employer's account for all past years have exceeded all contributions paid
by such employer for all such years.
(e)(h) Regulatory authority. The secretary of labor shall annually
prepare adopt rules and submit a certification regulations as to the
necessary to administer this section, consistent with federal conformity
requirements and the goals of equity, solvency and adequacy of the amount
credited to the state of Kansas' account in the federal employment security
trust fund to the governor and the legislative coordinating council. The
certification shall be submitted on or before December 1 of each calendar
year and shall be for the 12-month period ending on June 30 of that
calendar year. In arriving at the certification contributions paid on or
before July 31 following the 12-month period ending date of June 30 shall
be considered transparency.
(f) On July 1, 2024, the director of accounts and reports shall transfer
all moneys in the employment security interest assessment fund to the
employment security trust fund. On July 1, 2024, all liabilities of the
employment security interest assessment fund are hereby transferred to
and imposed on the state general fund, and the employment security
interest assessment fund is hereby abolished.
Sec. 15. K.S.A. 2025 Supp. 44-710b is hereby amended to read as
follows: 44-710b. (a) By the secretary of labor Notice of rates and
employer rights . (1) The secretary of labor shall promptly notify each
contributing employer of its annual contribution rate of contributions,
each rated governmental employer of its benefit cost rate and each
reimbursing employer of its benefit liability as determined for any
calendar year pursuant to K.S.A. 44-710 and 44-710a, and amendments
thereto, on or before. Notices shall be issued by November 30 of the
calendar year immediately preceding the calendar year in which such the
rate takes effect becomes effective.
(2) Such notice shall be delivered electronically unless the employer
has elected in writing to receive notices by mail. The secretary's
determination of the applicable rate or liability shall become conclusive
and binding upon the employer unless, within 15 days after the mailing of
notice thereof to the employer's last known address or in the absence of
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HB 2764 136
mailing, within 15 days after the delivery of such notice, the employer
files final and binding unless the employer submits an application for
review and redetermination, setting forth the reasons therefor. If the
secretary of labor grants such review within 15 calendar days of the notice
being sent or delivered. The application shall state the basis for review.
(3) If a timely application for review and redetermination is made, the
employer shall be promptly notified thereof and shall be granted an
opportunity for afforded a fair hearing, but no employer shall have
standing, in any proceeding involving the employer's rate of contributions
or benefit liability, to contest the chargeability to the employer's account of
any benefits paid in accordance with a determination, redetermination or
decision pursuant to K.S.A. 44-710(c), and amendments thereto, except
upon the ground that the services on the basis of which such benefits were
found to be chargeable did not constitute services performed in
employment for the employer and only in the event that the employer was
not a party to such determination, redetermination or decision or to any
other proceedings under this act in which the character of such services
was determined. Any such hearing may be conducted pursuant to this
section shall be heard in the county where the contributing employer
maintains its principle place of business in person, by telephone or
virtually. The hearing officer shall render issue a written decision
concerning on all matters at issue in the hearing within 90 days of the
hearing. Employers may not contest the chargeability of benefits already
determined pursuant to K.S.A. 44-710(c), and amendments thereto, unless
the employer was not a party to the proceeding and the underlying
services did not constitute covered employment.
(b) (1) Employer relief for improper or fraudulent benefit charges.
(1) The secretary shall, without the necessity of a formal request by an
employer or a hearing, immediately and fully promptly credit the account
of any contributing employer's , rated , governmental rated employer's or
reimbursing employer's account employer for any benefits paid upon a
determination by the secretary that such benefits were an improper
payment or paid to any person who received such benefits: (A) By fraud;
or (B) in error where any conditions imposed by this act for the receipt of
benefits were not fulfilled or where the recipient was not qualified to or
disqualified from receiving such benefits.
(2) (A) Contributing employers, rated governmental employers and
reimbursing employers shall be held harmless for and shall not be required
to reimburse the state for any benefits paid that have been identified by the
employer and reported to and benefit payments determined by the
secretary as fraudulent or as an improper payment, unless the secretary
determines that such benefits were received properly and not: (i) By fraud;
or (ii) in error where any conditions imposed by this act for the receipt of
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benefits were not fulfilled or where the recipient was not qualified to or
disqualified from receiving such benefits. Any such determination by the
secretary shall be subject to appeal as provided by the employment
security law. to be improper payments, including, but not limited to:
(B) Reimbursing employers shall be refunded for reimbursements
made to the state for any claims or benefits paid on or after March 15,
2020, that are or have been reported to the secretary and determined by the
secretary as fraudulent. Amounts refunded shall become due, subject to
appeal as provided by the employment security law, upon a determination
by the secretary, as provided by subparagraph (A), that the benefits were
paid properly and not by fraud or in error.
(C) For the time period of March 15, 2020, through December 31,
2022, identifications of fraud reported to the secretary pursuant to
subparagraphs (A) and (B) shall not be subject to any time limitation for
disputing a claim or for appeal pursuant to K.S.A. 44-710, and
amendments thereto, or pursuant to any other provision of the employment
security law.
(3) The secretary shall review all reimbursing employer accounts and
shall apply credit for any benefits previously paid by fraud or in error, as
provided by paragraph (1), that have been charged against a reimbursing
employer's account and have not yet been recovered through normal
recovery efforts.
(c) Judicial review. Any action of the secretary upon an employer's
timely request for a review and redetermination of its rate of contributions
or benefit liability, in accordance with subsection (a), is subject to review
in accordance with
(A) Payments made as a result of fraud, including claimant
misrepresentation or concealment of material facts as defined in K.S.A.
44-703, and amendments thereto; or
(B) improper payments as defined in K.S.A. 44-703, and amendments
thereto, made in error due to the claimant’ s failure to meet eligibility
criteria, failure to fulfill conditions for continued benefits or
disqualification under this act.
(2) The secretary shall maintain a standardized reporting and dispute
resolution system that allows employers to:
(A) Electronically report suspected fraudulent or improper benefit
charges;
(B) submit supporting documentation; and
(C) receive updates on the status of investigations, findings and
resolutions.
(3) Upon completing a review of any reported improper charge, the
secretary shall issue a written determination explaining:
(A) Whether the claim was deemed improper or valid;
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(B) the basis for such finding, including relevant statutes, evidence
and claimant eligibility status; and
(C) any changes to the employer's chargeable account resulting from
the determination.
(4) Employers shall have the right to appeal any such determination
through the established administrative appeals process in accordance with
K.S.A. 44-709, and amendments thereto. The appeal shall include the right
to a full evidentiary hearing and final agency review.
(5) Employers shall be held harmless and not liable for the
reimbursement of any benefit payments that the secretary determines:
(A) Were made fraudulently or improperly; and
(B) were reported by the employer using the department's
standardized reporting process, unless it is later determined that the
payments were in fact valid.
(6) For benefit payments issued between March 15, 2020, and
December 31, 2022, there shall be no statutory time limit on the
employer's ability to report or dispute fraudulent or improper claims
pursuant to this subsection.
(7) The secretary shall periodically review the accounts of
reimbursing employers and apply credits for any improperly charged
benefits not yet recovered through the department’ s overpayment recovery
efforts.
(8) All records, communications and determinations related to
improper payment or fraud charge disputes shall be maintained in the
employer's secure online portal, with continuous access for authorized
employer representatives.
(c) Judicial review of secretary's determinations. (1) Any final
determination or redetermination issued by the secretary under this
section may be reviewed pursuant to the Kansas judicial review act.,
K.S.A. 77-601 et seq., and amendments thereto.
(2) Any such action for such judicial review shall:
(A) Be filed in the district court of the county in which the employer
maintains its principal place of business; and
(B) be heard in a summary manner and with the goal of final
disposition within 90 calendar days of filing, unless extended by the court
for good cause.
(3) Proceedings under this section shall be given take precedence
over all other civil cases matters on the court's docket, except cases arising
under for actions brought pursuant to K.S.A. 44-709(i), and amendments
thereto, and cases arising under the workmen's workers compensation act,
K.S.A. 44-501 et seq., and amendments thereto.
(d) PeriodicEmployer notification of benefits charged benefit charges
and account access . (1) The secretary of labor may shall, by rule and
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HB 2764 139
regulation, provide by rules and regulations for periodic notification to
employers of regarding benefits paid and chargeable charged to their
accounts or of the status of such accounts, and any such notification, in the
absence of an application for redetermination filed in such manner and
within such period as the secretary of labor may prescribe, shall become
conclusive, including regular benefit charge statements and status
summaries.
(2) Each benefit charge statement shall be deemed final and binding
upon the employer for all purposes. Such unless the employer files a
timely request for redetermination in the manner and within the time
period prescribed by the secretary.
(3) The secretary's findings of fact and redeterminations, made after
notice and opportunity for hearing, and the secretary's findings of facts in
connection therewith made pursuant to this subsection may be introduced
in any subsequent administrative or judicial proceedings involving
concerning the determination of the employer's contribution rate of
contributions of any employer for any calendar year and shall be entitled
to carry the same finality evidentiary weight as is provided in this
subsection with respect to the findings of fact made by in contribution
disputes.
(4) Employers shall be granted secure digital access to their
unemployment tax and benefit charge accounts at all times, including the
ability to:
(A) Review real-time benefit charges;
(B) monitor account activity and status; and
(C) submit timely disputes or redetermination requests regarding any
charges believed to be improper.
(5) The secretary shall develop and maintain an online system that
enables employers to monitor, report and respond to account activity
promptly and efficiently, ensuring transparency and administrative due
process.
(e) Review of improper payment data and corrective measures. (1)
The secretary of labor in proceedings to redetermine the contribution rate
of an employer. The review or any other proceedings relating thereto as
provided for in this section may be heard by any duly authorized employee
of the secretary of labor and such action shall have the same effect as if
heard by the secretary.
(e) The secretary shall review the information shall conduct a
comprehenive review and analysis of improper payment data reported by
the United States department of labor pursuant to the payment integrity
information act of 2019, public law 116-117, and any other relevant
information available from the United States department of labor and any
relevant information held by the department of labor available to the
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secretary regarding improper payment amounts for the state of Kansas
federal data sources for the period beginning on of March 15, 2020,
through December 31, 2022.
(f)(2) Any federalThis review shall be supplemented by internal
audits of the state's unemployment insurance benefit system and may
include third-party validation to assess the accuracy and causes of
improper payments, including, but not limited to, fraud, administrative
error or eligibility misclassification.
(3) Based on the findings of such review, the secretary shall:
(A) Identify the root causes and contributing factors of improper
payments;
(B) recommend and implement corrective administrative procedures
or system upgrades;
(C) report aggregate findings and proposed corrective actions to the
appropriate legislative oversight committees; and
(D) ensure public transparency by publishing a summary report of
findings and planned actions on the department's website, subject to the
protection of confidential claimant or employer information.
(4) Such review by the secretary and any resulting corrective actions
shall be completed within 180 days of the enactment of this subsection and
updated annually thereafter until the improper payment rate is within
acceptable federal thresholds.
(f) Prohibition on use of state funds for expired federal programs. No
federal unemployment insurance program established as a result of in
response to COVID-19 or any other declared pandemic shall not be
extended, renewed or continued after the ending beyond its federally
authorized expiration date of the federal program through the use of using
contributions paid by Kansas employers into the state employment security
fund contributions made by Kansas employers. State unemployment
insurance trust fund monies shall not be used to supplement, backfill or
extend any federally funded unemployment compensation program unless
expressly authorized by statute enacted by the Kansas legislature.
(g) Coordination of federal and state benefits. (1) The secretary shall
review benefit claims at the time a claim is made and as necessary to
timely determine whether any claimant is claimants are eligible for
unemployment benefits pursuant to any federal unemployment program
programs. To the extent authorized under permitted by federal law , if an
individual:
(A) If a claimant is eligible for an equal or greater weekly benefit
amount under a federal unemployment program benefits in an amount
equal to or greater than the state weekly benefit amount for which such
individual is eligible under the employment security law, the secretary, the
state benefit shall suspend the payment of state unemployment benefits to
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HB 2764 141
such individual while such individual is receiving the federal
unemployment benefits. Such by suspended for that week;
(B) suspension of state benefits shall terminate upon the individual's
exhaustion of once federal benefits available under the are exhausted;
(C) nothing in the section prohibits concurrent receipt of federal
unemployment program. An individual shall not be eligible to receive the
federal unemployment weekly benefit and the state unemployment weekly
benefit during the same week. The provisions of this subsection shall not
apply to any federal unemployment benefit that is paid supplements in
addition to the state weekly benefit amount benefits, if permitted by law.
Sec. 16. K.S.A. 44-710d is hereby amended to read as follows: 44-
710d. (a) Election of financing method. Any governmental entities
described entity defined in subsection (h)(3) of K.S.A. 44-703, and
amendments thereto, may elect to finance unemployment benefit payments
as using the method of a:
(1) a Contributing employer,;
(2) a reimbursing employer pursuant to K.S.A. 44-710(e), and
amendments thereto; or
(3) a rated governmental employer in accordance with this section.
(b) AnyElection to become a rated governmental employer. (1) A
governmental entity identified in this section may elect to become a rated
governmental employer by filing a notice of such election with the
secretary. Such election shall be for a period encompassing not less than
minimum of four complete calendar years if and shall not be terminated
during such employer files with the secretary a written period, except as
provided by subsection (c).
(2) A governmental entity shall submit such notice of such election to
the secretary in writing or through a secure electronic portal provided by
the secretary.
(3) Such notice shall be filed within the thirty-day period immediately
30 calendar days following either January 1 of any calendar year or within
a like period immediately following the date on which that the secretary
issues a determination of subjectivity to this act that the governmental
entity is issued subject to the employment security law , whichever occurs
later.
(4) The effective date of the election shall be the beginning of the
calendar quarter following receipt and confirmation of the election by the
secretary.
(c) Any employer electingTermination of election. (1) A rated
governmental employer may terminate its election to finance
unemployment benefit payments using the method of a rated governmental
employer by filing a written or electronic notice with the secretary as
provided in subsection (b)(2).
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HB 2764 142
(2) The notice of termination shall be filed not later than 30 calendar
days prior to the beginning of the calendar year in which the termination
is to become effective.
(3) Once terminated, the employer shall not be eligible to re-elect
rated governmental status for a minimum of four calendar years.
(d) Reporting and payments. Rated governmental employers shall
report total wages paid and remit benefit cost rate payments on a
quarterly basis on such wages in accordance with this section and rules
and regulations adopted by the secretary.
(e) Eligibility for rate computation. A rated governmental employer
shall continue to be liable as a rated governmental employer not be
eligible for a computed benefit cost rate pursuant to subsection (b) until
such employer files with the secretary a written notice terminating its
election and not later than 30 days prior to the beginning of the calendar
year for which such termination shall first be effective.
(d) A rated governmental employer shall report and make benefit cost
payments based upon total wages paid during each calendar quarter.
(e) No rated governmental employer shall be eligible for a rate
computed under subsection (g) of this section until there have been has
maintained 24 consecutive calendar months immediately preceding the
computation date throughout which of employment as an employer subject
to the employment security law during which unemployment benefits could
have been charged against to such employer's account.
(f) Interim rate for ineligible employers. (1) Each rated governmental
employer who has not been subject to this act yet eligible for a sufficient
period of time to have a rate computed under this benefit cost rate
pursuant to subsection (e) shall make quarterly payments at a calendar
year uniform interim rate , expressed as a percentage of total wages and
shall be the same for all rated governmental employers not eligible for a
computed rate. The rate for rated governmental employers not eligible for
a computed rate will be based upon.
(2) The interim rate shall be based on the actual benefit cost
experience (, defined as total benefits paid divided by total wages ), of all
rated governmental employers during the prior for the preceding fiscal
year ending on March 31.
(g) Benefit cost rate computation for eligible employers. Each
eligible rated governmental employers eligible for a rate computation
employer shall make quarterly payments at a calendar year rate determined
by the experience of all rated governmental employers and the receive an
individually computed benefit cost rate for the upcoming calendar year
based on both individual employer's and group experience. The rate shall
be computed by the following method:.
(1) AnThe secretary shall annually compute an adjustment factor
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HB 2764 143
rounded to two decimal places shall be computed for all rated
governmental employers by dividing total benefits paid by total benefits
charged, reported by for all rated governmental employers for the
preceding most recent fiscal year ending on March 31;.
(2) The secretary shall annually compute an experience factor, stated
as a percent rounded to two decimal places, shall be computed for each
eligible for each rated governmental employer by dividing the benefits
charged to such employer's account for the preceding such fiscal year
ending March 31, by the average of such the employer's total wages
reported for during the two preceding fiscal years ending March 31;.
(3) Benefit cost rates to be effective for the ensuing calendar year The
secretary shall be computed annually compute the benefit cost rate for
each rated governmental employer by multiplying the employer's
experience factor determined in paragraph (2) of this subsection, by the
statewide adjustment factor determined in paragraph (1) of this subsection,
rounding rounded to the nearest .01%, except that 0.01% with standard
rounding applied.
(4) No rated governmental employer's benefit cost rate for any
calendar year will shall be less than .1% 0.1%.
(5) The secretary shall annually publish, in a clear tabular format on
the department's website, a summary of the average experience factor,
total wages, total benefits charged and the statewide adjustment factor
used in the calculation of each year's benefit cost rates.
(h) Whenever anySuccessor Employers. (1) When a governmental
entity which acquires or in any manner otherwise succeeds to all or part of
the employment of another governmental entity , and both the predecessor
and successor governmental entities have selected elected the same
payment option, the successor shall acquire method of financing
unemployment benefit payments, the experience rating account factors of
the predecessor employer. Contributing employer's shall transfer to the
successor.
(2) If the acquisition includes all employment, the successor shall
receive the full experience history of the predecessor.
(3) In the case of a partial acquisition, experience rating account
factors consist of shall transfer proportionally based on payroll or
employee headcount as determined by the actual contribution and benefit
experience and annual payrolls while the rated governmental employer's
experience rating account factors consist of the actual benefit experience
and annual payrolls secretary.
(4) If the successor employing unit was an employer previously
subject to this act the employment security law prior to the date of
acquisition, the contribution rate or benefit cost rate for the period from
such date to the end of the then successor shall retain its current calendar
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HB 2764 144
year shall be the same as the rate with respect to the period immediately
preceding the date of acquisition rate for the remainder of the calendar
year.
(5) If the successor was not an employer prior to the date of
acquisition, the rate shall be the rate applicable to the predecessor
employer or employers with respect previously subject to the period
immediately preceding the date of acquisition provided employment
security law, its rate for the remainder of the calendar year shall:
(A) Match the predecessor's rate, if there was only one predecessor or
there were only all predecessors with had identical rates. In the event that
the predecessors' rates are not identical, the successor's rate shall be a; or
(B) be newly computed rate by the secretary based upon on the
combined experience of the all predecessors as of the computation date
immediately preceding the date of acquisition , if such predecessors rates
differed.
(i) Benefit charges. Benefit payments shall be charged to the account
of each rated governmental employer employer's account in accordance
with subsection (c) of K.S.A. 44-710(c), and amendments thereto.
(j) Rage notification and appeals. (1) The secretary shall promptly
notify each rated governmental employer of such employer's rate for the
calendar year, which will become final unless an application for review
and redetermination is filed in accordance with subsection (b) of K.S.A.
44-710 and amendments thereto its benefit cost rate for the upcoming
calendar year.
(2) The rate shall be final unless the employer files a written or
electronic appeal within 30 calendar days of such notification.
(3) Appeals may be submitted through the department's secure online
system or by written notice in accordance with K.S.A. 44-710(f)(5), and
amendments thereto.
(k) Quarterly payment requirements. (1) Rated governmental
employers shall make permit benefit cost rate payments to the secretary
each calendar quarter. Such payments shall be computed calculated by
multiplying total wages by the assigned benefit cost rate. Payment of
(2) No payment shall be required for any quarter in which the total
calculated liability is less than $1.
(l) Planning and accessibility tools. The secretary shall make
available a secure online benefit cost payments for any calendar quarter
which amounts to less than $1 shall rate estimator tool to assist
governmental employers in forecasting their quarterly and annual
unemployment insurance costs under each financing model as described
in subsection (a).
(m) Sunset review and oversight. (1) The benefit cost rate
computation methodology established in subsection (g) shall be subject to
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HB 2764 145
a performance review by the secretary during calendar year 2028 and at
least once every eight years thereafter. Such review shall include an
actuarial evaluation and legislative oversight.
(2) The secretary shall complete and submit the review report, along
with any recommended adjustments, not be required later than December
1 of the applicable review year to the standing committees of the senate
and the house of representatives to which legislation pertaining to the
employment security law is customarily referred.
Sec. 17. K.S.A. 44-710e is hereby amended to read as follows: 44-
710e. Purpose. (a) The purpose of this section shall be to provide
governmental entities with flexible, transparent and sustainable
mechanisms for financing the costs associated with unemployment
insurance benefits for public employees.
(b) Authority to budget and pay unemployment insurance costs. Any
city, county, school district or other governmental entity subject to the
employment security law is hereby authorized to budget for and pay the
cost of providing unemployment insurance benefits for its employees as
provided by this act from the various same fund or funds from which
employee compensation is paid to its employees, and , in accordance with
the employment security law.
(c) Additional tax levy authority. (1) If otherwise authorized by law to
levy taxes, any such city, county or other governmental entity, except a
school district, may levy that is authorized by law to levy taxes may
annually levy an additional tax therefor, which for the purpose of funding
unemployment insurance benefit obligations.
(2) The amount levied, together with any other funds available funds,
shall be sufficient to provide:
(A) Cover the full cost thereof and, in the case of required
unemployment insurance benefit payments; and
(B) for cities and counties, to pay a portion of the principal and
interest on bonds issued under the authority of K.S.A. 12-1774, and
amendments thereto, by cities when such bonds are related to qualifying
economic development projects located in within the county jurisdiction.
(d) Alternative use of employee benefits contribution fund. Any taxing
subdivision authorized to levy a tax under this section may , in lieu of
levying such the tax , may authorized in subsection (b), pay such
unemployment insurance benefit costs from any an employee benefits
contribution fund established pursuant to K.S.A. 12-16,102, and
amendments thereto.
(e) Reporting and oversight. (1) All expenditures made pursuant to
this section for unemployment insurance benefits shall be:
(A) Identified as a separate line item in the governmental entity's
annual budget; and
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HB 2764 146
(B) subject to applicable accounting, reporting and audit procedures
established by the secretary of administration.
(2) The secretary may establish standardized forms and secure
electronic systems for the submission of unemployment insurance-related
data to promote consistency, transparency and compliance.
(f) Periodic review and coordination. (1) The secretary shall
periodically assess and publish guidance on funding adequacy and fiscal
practices related to unemployment insurance costs for governmental
entities operating under this section.
(2) During calendar year 2028, and every six years thereafter, the
legislative post audit committee and the secretary shall jointly review the
financial impact and utilization trends of unemployment insurance
pursuant to this section to ensure compliance with trust fund sustainability
goals and local government budget transparency.
(3) The secretary shall coordinate with the director of accounts and
reports and organizations representing local governments and promoting
local governmental interests to ensure consistent application, provide
technical assistance and share best practices regarding funding
approaches permitted under this section.
(g) Definitions. As used in this section:
(1) "Employee benefits contribution fund" means a fund established
by a governmental entity to finance employee benefits as defined in K.S.A.
12-16,102, and amendments thereto.
(2) "Unemployment insurance benefits" means payments required
under the employment security law.
(h) Construction. Nothing in this section shall be construed to limit
or otherwise affect the authority of a school district or other governmental
entity to budget for unemployment insurance obligations using available
general fund resources or employee benefits funds in accordance with
other applicable law.
Sec. 18. K.S.A. 44-710f is hereby amended to read as follows: 44-
710f. Any county plan pursuant to the employment security law shall
include coverage for district court officers and employees whose total
salary is payable by counties.(a) Coverage requirement. Each county
subject to the employment security law shall provide unemployment
insurance coverage for all officers and employees of the district court
whose total compensation is paid exclusively from county funds.
(b) Definition of coverage. For the purposes of this section,
"coverage" means inclusion under the county's elected financing method
in accordance with K.S.A. 44-710d, and amendments thereto, including all
applicable wage reporting and contribution or reimbursement obligations.
(c) Shared funding arrangements. In cases where the compensation
of a district court officer or employee is partially funded by a county and
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partially by the state or other noncounty sources, such individuals shall be
eligible for coverage under the county's unemployment insurance plan if
50% or more of such individuals' total compensation is paid from county
funds. The secretary may adopt rules and regulations to further define and
administer such thresholds.
(d) Exemptions. This section shall not apply to individuals serving as
district judges, magistrate judges or other judicial officers compensated
exclusively by the state or to independent contractors or individuals whose
employment does not meet the definition of "employment" pursuant to
K.S.A. 44-703, and amendments thereto.
(e) Reporting and compliance. Counties shall:
(1) Include all eligible district court personnel in quarterly wage
reports and unemployment insurance filings submitted to the department;
and
(2) annually certify to the department, in a form prescribed by the
secretary, that all officers and employees of the district court who are
eligible under this section are appropriately covered for unemployment
insurance purposes.
(f) Regulations. The secretary is authorized to adopt rules and
regulations necessary to implement this section, including, but not limited
to, clarifying eligibility standards, compliance requirements and reporting
procedures.
(g) Review and oversight. The provisions of this section shall be
subject to a sunset review in December 2028 and every eight years
thereafter. As part of the review process, the department shall evaluate the
fiscal, administrative and legal impacts of this section and submit a
written report with findings and recommendations to the standing
committees of the senate and the house of representatives to which
legislation pertaining to employment security law is customarily referred.
Such report shall be submitted on or before January 15, 2029, and
January 15 of every eight years thereafter.
Sec. 19. K.S.A. 44-710i is hereby amended to read as follows: 44-
710i. (a) For all purposes under pursuant to the employment security law,
whenever when two or more employers which that are related
corporations, which concurrently employ the same individual in
employment and which pay wages to such individual through a common
paymaster, and such common paymaster is one of such employers, each
such the employing entities:
(1) Each employer shall be considered to have paid wages to such the
individual only in the amount of wages actually disbursed by such
employer to such individual; and such
(2) no employer shall not be considered to have paid any amount
portion of the wages to such individual which was actually disbursed to
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such the individual by another of such employers which concurrently
employ such individual employer.
(b) For the purposes of this section, "related corporations," "common
paymaster" and "concurrent employment" shall be construed means the
same as part of the employment security law defined under federal law,
including 26 U.S.C. § 3121(s) and applicable United States treasury
regulations.
(c) Employers electing to utilize a common paymaster arrangement
shall notify the secretary in the manner prescribed by rules and
regulations adopted by the secretary and maintain documentation
substantiating the allocation and disbursement of wages under such
arrangement.
(d) The secretary may adopt rules and regulations to administer and
enforce the provisions of this section, including procedures for
registration, audit and correction of misreported wage information.
Sec. 20. K.S.A. 44-711 is hereby amended to read as follows: 44-711.
(a) Period of liability for contributions. Except as provided by subsection
(d), any employing unit which is or that becomes an employer subject to
this act the employment security law within any a calendar year shall be
subject liable for contributions on all wages paid during the whole of such
entire calendar year.
(b) Termination of liability. (1) Except as otherwise provided in
subsection (c) of this section, an employing unit shall cease to be an
employer subject to this act only the employment security law as of the
first day of January 1 of any calendar year, if it:
(A) Such employing unit files with the secretary of labor, prior to the
first day of May of such calendar year, a written or electronic application
for termination of coverage and with the secretary not later than May 1 of
such year; and
(B) the secretary of labor finds that within the preceding calendar
year determines that the employing unit would not have been subject to
this act the employment security law during the preceding calendar year,
except for paragraph (6) of subsection (h) of pursuant to K.S.A. 44-703(v)
(6), and amendments thereto, and has been covered by this act throughout
the most recently completed that the employing unit was subject to the
employment security law pursuant to K.S.A.44-703(v)(6), and amendments
thereto, for the entirety of the preceding calendar year.
(2) The secretary of labor may release, at any time on the secretary's
own initiative terminate the status of any, an employing unit as an
employer from being subject to this the employment security law when
satisfied that if such employer employing unit has had no individuals in
employment at any time during the and no wages reported for three
consecutive calendar years. The secretary shall issue written or electronic
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notice of such pending release to the employer. The secretary shall
conduct an annual review of all employer accounts with no reported
employment or wages for the three preceding calendar years and may
initiate termination proceedings in accordance with this paragraph.
(c) Voluntary election of coverage and termination. (1) An Any
employing unit, not otherwise subject to this act, which files the
employment security law may file a written or electronic election with the
secretary of labor its written election to become an employer subject
hereto for not less than two calendar years shall, with approval of to the
employment security law. Such election by the secretary of labor, become
an employer subject hereto to the same extent as all other employers, as of
the date stated shall continue in such approval, force and shall cease to not
be subject hereto to change by the employing unit for a period of two
complete calendar years.
(A) Upon approval by the secretary, the employing unit shall become
subject to the employment security law as of the effective date indicated by
the secretary. Unless otherwise specified, this date shall be the first day of
the calendar quarter following the date of approval by the secretary.
(B) An employing unit that has made such election pursuant to
paragraph (1) may terminate such employing unit's voluntary
participation in the employment security law as of January 1 of any
calendar year subsequent to such two calendar years only after fulfilling
the required two-year participation period, if prior to the first day of May
of such year it has filed with the secretary of labor employing unit files a
written or electronic application for termination with the secretary not
later than May 1 of such year.
(2) AnyAn employing unit , for which services that do not constitute
employment as otherwise defined in this act as employment under the
employment security law are performed , may file with the secretary of
labor a written election that all may elect to include such services
performed by individuals in its employ in one or more distinct
establishments or places of business shall be deemed to constitute
employment for all the purposes of this act as employment pursuant to the
employment security law for a period of not less than two calendar years.
Upon approval of such election by the secretary of labor , such services
shall be deemed to constitute covered employment subject to this act from
and after as of the effective date stated in such the secretary's approval.
Such
(3) Termination of voluntary coverage for such services shall cease to
be deemed employment subject hereto effective as of January 1 of any
calendar year subsequent to such two calendar years, only if prior to the
first day of after the required two-year period, provided that the employing
unit files a written or electronic application for termination not later than
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HB 2764 150
May of such year such employing unit has filed with the secretary of labor
a written application for termination 1 of that year.
(4) All notices, applications and elections under this subsection shall
be submitted in writing or through a secure electronic portal provided by
the department.
(d) Termination upon total transfer of experience rating.
Notwithstanding the provisions of subsection (a) of this section, upon
transfer of, when an experience rating account in accordance with
subsections (b)(1) or (b)(2) of is transferred pursuant to K.S.A. 44-
710a(b)(1) or (b)(2) , and amendments thereto, the predecessor employer
shall automatically cease to be an employer subject to this act the
employment security law as of the effective date of transfer to the
successor. The successor shall become liable for contributions on and
after the date of acquisition unless otherwise provided by law.
(e) Termination of account due to successorshipbusiness acquisition.
Notwithstanding the provisions of subsection (a) of this section, an
employer's account shall be terminated when the (1) When a business is
acquired by a successor employer or a nonemploying unit, as provided
described in subsection (h)(4) of K.S.A. 44-703, and amendments thereto,
or by a nonemploying unit. the predecessor's account will shall be
terminated as of the date of the acquisition.
(2) In cases of partial acquisition, the secretary may authorize a
proportional transfer of the predecessor’ s experience rating account based
on payroll, employee count or other relevant factors in accordance with
the provisions of K.S.A. 44-710a, and amendments thereto, or pursuant to
rules, regulations or internal guidance established by the secretary.
(3) If the successor elects not to assume the predecessor's account or
is not otherwise subject to the employment security law, the secretary shall
determine whether a new account shall be established and whether a new
liability determination shall be required.
(f) Filing and delivery of notices. (1) All notices, applications and
elections required under this section may be submitted by certified mail,
personal delivery or through a secure electronic portal established and
maintained by the secretary.
(2) The secretary shall adopt rules and regulations governing
submission procedures and shall issue written or electronic confirmations
of receipt.
Sec. 21. K.S.A. 44-712 is hereby amended to read as follows: 44-712.
(a) Establishment and control purpose. (1) There is hereby established , as
a special fund in the state treasury, separate and apart from all public
moneys or funds of this state, an the employment security fund , which .
Such fund shall be administered by the secretary and used solely for the
payment of unemployment insurance benefits and administrative expenses
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HB 2764 151
as provided in this act. This fund shall under the employment security law.
No funds credited to this state's account in the federal unemployment trust
fund shall be expended, except for the payment of unemployment
compensation in accordance with the federal social security act as
amended, section 303(a)(5), unless otherwise permitted by federal law.
The fund shall consist of: (1)
(A) All contributions collected under this act; (2) pursuant to the
employment security law, including mandatory and voluntary
contributions, interest and penalties, unless otherwise excluded or
provided by law;
(B) all interest earned upon any moneys in the fund; (3)
(C) all moneys credited to this state's account in the federal
unemployment trust fund, pursuant to section 903 of the social security act
as amended, 42 U.S.C.A. U.S.C. § 1103, as amended; (4);
(D) any property or securities acquired through the use of moneys
belonging to the such fund , and all other moneys received for the fund
from any other source; (5) for deposit into such fund; and
(E) all earnings of from such property or securities . acquired through
the use of such moneys belonging to such fund.
(2) All such moneys in this such fund pursuant to paragraph (1) shall
be mingled and undivided comingled for accounting purposes, including
for purposes of the accounts described in subsection (b), but shall be used
solely for the purposes described herein.
(b) Fund accounts and deposits. The state treasurer shall be serve as
the ex officio custodian of the fund. Payments from the fund, and for the
purposes of this act deposits with the secretary of the treasury of the
United States shall not be deemed to be payments from the fund, shall be
made by any commercially-accepted means approved by the secretary.
There shall be maintained within employment security fund.
(1) The fund shall include three separate distinct accounts: (1)
(A) A clearing account; (2) for temporary holding of remittances
prior to transfer pursuant to paragraph (4);
(B) an unemployment trust fund account , and (3) maintained at the
United States treasury for long-term trust management; and
(C) a benefit account for direct disbursement of unemployment
insurance benefits.
(2) All moneyemployer contibutions shall be remitted electronically
unless otherwise approved by the secretary.
(3) All moneys payable to the fund shall, upon receipt thereof by the
secretary, shall be remitted to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
each such remittance, The state treasurer shall deposit the entire amount in
the state treasury to the credit of all such remittances into the clearing
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HB 2764 152
account of the fund . Refunds payable pursuant to K.S.A. 44-717, and
amendments thereto, may be paid from the clearing account upon
warrants of the fund by director of accounts and report issued pursuant to
vouchers approved by the secretary or the secretary's designee. Such
warrants may be disbursed using any commercially-accepted
commercially accepted means approved by the secretary. After
(4) Following clearance thereof , all other moneys in the clearing
account of the fund funds shall be immediately deposited by the state
treasurer with the secretary of the treasury of the United States of America
to the credit of the this state's account of this state in the federal
unemployment trust fund established and maintained pursuant to, as
required under section 904 of the social security act, 42 U.S.C.A. U.S.C. §
1104, as amended, any provisions of law in this state relating to the
deposit, administration, release, or disbursement of moneys in the
possession or custody of this state to the contrary notwithstanding.
(5) The benefit account of the fund shall consist of all moneys
requisitioned from this state's account in by the secretary pursuant to law
from the federal unemployment trust fund. Moneys in the clearing and
benefit accounts may be deposited in accordance with law but shall not be
commingled with other state funds. No public deposit insurance charge or
premium shall be paid from the fund.
(c) Withdrawals for benefit payments. (1) Withdrawals from this
state's account in the federal unemployment trust fund shall be used solely
for the payment of unemployment insurance benefits and in accordance
with the employment security law and rules and regulations adopted by
the secretary. The secretary shall requisition amounts necessary for
anticipated benefit payments. Upon receipt, the state treasurer shall
deposit such moneys in the benefit account.
(2) Unclaimed or unused balances in the unemployment trust fund
shall be, at the secretary's discretion:
(A) Used to pay benefits during subsequent periods; or
(B) returned to the federal unemployment trust fund. Except as herein
Any such unclaimed funds shall be redeposited or returned within 90 days
of initial requisition unless otherwise provided, moneys in approved by
the secretary.
(3) Refunds from the clearing account and payments from the benefit
accounts of the account, including all benefit disbursements pursuant to
this subsection, shall be exempt from legislative appropriation in
accordance with federal conformity requirements. All unpaid or canceled
warrants shall remain in the benefit account.
(d) Administrative use of section 903 funds. (1) All administrative
expenditures made from the employment security administration fund shall
be consistent with the federal uniform administrative requirements, cost
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HB 2764 153
principles and audit requirements for federal awards, 2 C.F .R. part 200,
and applicable United States department of labor guidance, including ETA
handbook 401.
(2) Moneys credited to the state's account pursuant to section 903 of
the social security act may be used for administrative expenses if:
(A) Appropriated by the legislature;
(B) the appropriation specifies the purpose, amount and period of the
obligation, not to exceed two years from the enactment date; and
(C) the obligation does not exceed the credited balance after
subtraction of previously obligated or expended funds.
(3) Such funds shall not be withdrawn or obligated for any purpose
other than benefit payments and administration of the employment
security law and public employment offices.
(4) Such appropriated administrative funds shall be deposited by the
state treasurer in any bank or public depository as is now provided by law
for the deposit of general funds of the state, but no public deposit
insurance charge or premium shall be paid out of the into the employment
security administration fund. Moneys in the clearing and benefit accounts
of the fund shall not be commingled with other state funds and shall be
maintained in separate bank accounts and expenditures made in
accordance with this subsection. Any unexpended balances shall be
promptly returned to the federal unemployment trust fund.
(c) Withdrawals. Moneys shall be requisitioned from this state's
account in the federal unemployment trust fund solely for the payment of
benefits and in accordance with the provisions of this act and the rules and
regulations adopted by the secretary, except that moneys credited to this
state's account pursuant to section 903 of the social security act, 42
U.S.C.A. § 1103, as amended, shall be used exclusively as provided in
subsection (d) of this section. The secretary shall from time to time
requisition from the federal unemployment trust fund such amounts, not
exceeding the amounts standing to its account therein, as deemed
necessary for the payment of benefits for a reasonable future period. Upon
receipt thereof the state treasurer shall deposit such moneys in the benefit
account of the fund and payments of benefits shall be charged solely
against such benefit account of the fund. Expenditures of such moneys in
the benefit account and refunds from the clearing account of the fund shall
not be subject to any provisions of law requiring specific appropriations.
Any balance of moneys requisitioned from the federal unemployment trust
fund which remains unclaimed or unpaid in the benefit account of the fund
after the expiration of the period for which such sums were requisitioned
shall either be deducted from estimates for, and may be utilized for the
payment of benefits during succeeding periods, or, in the discretion of the
secretary shall be directed to be redeposited with the secretary of the
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HB 2764 154
treasury of the United States of America, to the credit of this state's
account in the federal unemployment trust fund, as provided in subsection
(b) of this section. All balances accrued from unpaid or canceled warrants
issued pursuant to this section, notwithstanding the provisions of K.S.A.
10-812, and amendments thereto, shall remain in the benefit account of the
fund, and be disbursed in accordance with the provisions of this act
relating to such account.
(d) Administrative use. (1) Money credited to the account of this state
in the federal unemployment trust fund by the secretary of the treasury of
the United States of America, pursuant to section 903 of the social security
act, 42 U.S.C.A. § 1103, as amended, may be requisitioned and used for
the payment of expenses incurred in the administration of this act pursuant
to a specific appropriation by the legislature, if expenses are incurred and
the money is requisitioned after the enactment of an appropriation law
which: (A) Specifies the purposes for which such money is appropriated
and the amounts appropriated therefor, (B) limits the period within which
such money may be obligated to a period ending not more than two years
after the date of the enactment of the appropriation law, and (C) limits the
amount which may be obligated during a twelve-month period beginning
on July 1 and ending on the next June 30 to an amount which does not
exceed the amount by which (i) the aggregate of the amounts credited to
the account of this state pursuant to section 903 of the social security act,
42 U.S.C.A. § 1103, as amended, (ii) the aggregate of the amounts
obligated pursuant to this subsection and amounts paid out for benefits and
charged against the amounts credited to the account of this state. For the
purposes of this subsection, amounts obligated during any such twelve-
month period shall be charged against equivalent amounts which were first
credited and which are not already so charged.
(2) Money credited to the account of this state pursuant to section 903
of the social security act, 42 U.S.C.A. § 1103, as amended, may not be
withdrawn or obligated except for the payment of benefits and for the
payment of expenses for the administration of this act and of public
employment offices pursuant to this subsection (d).
(3) Money appropriated as provided by this subsection (d) for the
payment of expenses of administration shall be requisitioned as needed for
the payment of obligations incurred under such appropriation and, upon
requisition shall be deposited in the state treasury to the credit of the
employment security administration fund from which such payments shall
be made. Money so deposited and credited shall, until expended, remain a
part of the federal unemployment trust fund, and, if it will not be
expended, shall be returned promptly to the account of this state in the
federal unemployment trust fund.
(4) Notwithstanding paragraph (1), money credited with respect to
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HB 2764 155
federal fiscal years 1999, 2000 and 2001, shall be used solely for the
administration of the UC program, and such money shall not otherwise be
subject to the requirements of paragraph (1) when appropriated by the
legislature.
(e) Management of funds upon discontinuance of federal
unemployment trust fund. The provisions of subsections (a), (b), (c) and (d)
of this section, to the extent that they relate to the federal unemployment
trust fund, shall be operative only so long as such unemployment trust
fund continues to exist and so long as the secretary of the treasury of the
United States of America continues to maintain for this state a separate
book account of all funds deposited therein by this state for benefit
purposes, together with this state's proportionate share of the earnings of
such unemployment trust fund, from which no other state is permitted to
make withdrawals. If and when such unemployment trust fund ceases to
exist, or such separate book account is no longer maintained, all moneys,
properties or securities therein, belonging to the employment security fund
of this state, shall be transferred to the state treasurer, to be administered
by the secretary as a trust fund for the purpose of paying benefits under
this act, and the director of investments upon the direction of the secretary
shall have authority to hold, invest, transfer, sell, deposit, and release such
moneys, and any properties, securities, or earnings acquired as an incident
to such administration.
(5) The secretary shall include a summary of section 903 fund
expenditures in the annual fund performance and solvency certification
required pursuant to subsection (g).
(e) Contingency management if federal trust fund is discontinued. (1)
Upon official notification from the United States department of labor or
federal legislative action discontinuing state trust fund accounts in the
federal unemployment trust fund or, as determined by the secretary, a
substantially similar successor fund, should the federal unemployment
trust fund or such a substantially similar successor fund cease to exist or
this state’ s separate account within a federal fund no longer be
maintained, all moneys, properties and securities credited to the Kansas
account of such federal fund shall be transferred by and to the state
treasurer and administered by the secretary as a trust fund, separate and
apart from all public moneys or funds of this state.
(2) The director of investments, upon direction from the secretary,
shall manage such funds, including investment, sale, deposit and
disbursement, consistent with the purposes of the employment security
law.
(3) The secretary may adopt temporary rules and regulations and
procedures to ensure continuity of benefit payments and fund operations
under such contingency. Such temporary rules and regulations and
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HB 2764 156
procedures shall remain in effect until permanent rules and regulations
are adopted by the secretary or the federal unemployment trust fund or
substantially similar fund is otherwise reestablished by federal or state
action.
(f) Loans from the pooled money investment board , when authorized.
(1) Pursuant to K.S.A. 75-4209(d), and amendments thereto, upon request
by the secretary, the pooled money investment board shall extend loans to
the state for the purpose of repaying debt obligations owed to the federal
government by the employment security fund.
(2) The interest rate of any such loans shall not exceed 2%;
(3) Such loans or line of credit shall remain available for three years
from the first loan date and may be reauthorized by mutual agreement of
the secretary and the pooled money investment board is hereby authorized
and directed to make loans as requested by the secretary of labor to fund
debt obligations to the federal government as may have been, or continue
to be, incurred by the employment security fund.
(A) The line of credit so.
(4) Repayment shall begin within 12 months of the initial
disbursement, unless extended shall be at an interest rate not to exceed 2%;
and
(B) shall remain in effect for a period of three years from the date of
the first loan requested. The pooled money investment board may
reauthorize this line of credit following the initial three year period if
deemed mutually beneficial by the board and the secretary of labor.
(2)(5) Such loans shall be disbursed to the secretary of labor is
hereby authorized to request and receive loans from the pooled money
investment fund for the purposes described herein.
(3) The. Upon initiating a loan, the secretary shall notify the
governor and all recipients listed in subsection (g)(1)(A) through (E)
within 30 days.
(6) Total outstanding balances of any such loans in shall not exceed
the aggregate limitations of K.S.A. 75-4209(d), and amendments thereto.
All such loan terms shall not exceed the limit imposed by be consistent
with K.S.A. 75-4209(d), and amendments thereto.
(4)(7) Any such loan Such loans shall not be deemed to be an
indebtedness or considered a debt of the state of Kansas within the
meaning of section 6 of, article 11 of the constitution of the state of Kansas
constitution.
(5)(8) The pooled money investment board, secretary of labor , and
state treasurer shall coordinate as needed to make the appropriate all
necessary transfers, repayments and reporting obligations.
(g) Annual fund performance and solvency certification . (1) Not later
than December 1 of each year, the secretary shall submit a certification
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HB 2764 157
evaluating the solvency and adequacy of the employment security fund.
The certification shall be delivered to the:
(A) Chairpersons, vice chairpersons and ranking minority members
of the standing committees of the senate and the house of representatives
to which legislation pertaining to the employment security law is
customarily referred;
(B) president of the senate;
(C) speaker of the house of representatives;
(D) governor; and
(E) legislative coordinating council.
(2) Such annual certification shall include, at a minimum:
(A) The fund balance as of the most recent computation date;
(B) a five-year summary of the contribution receipts and benefit
disbursements;
(C) loan activity, if any, including balance and repayment schedule;
(D) the current average high cost multiple for the trust fund as of the
most recent computation date;
(E) a five-year historical analysis of the average high cost multiple
and related solvency indicators, showing year-over-year changes and
trends;
(F) a statement of whether the trust fund meets the United States
department of labor's recommended solvency standard, defined as an
average high cost multiple of 1.0 or greater, and an explanation of any
shortfall. If the average high cost multiple is below 1.0, the certification
shall include recommended policy considerations and actions to restore
the fund to solvency within a reasonable timeframe based on projected
economic conditions and contribution levels;
(G) forecasted trust fund performance under the following three
economic scenarios to include assumptions regarding unemployment
rates, benefit payment of moneys levels and expected employer
contributions:
(i) Baseline, assuming steady employment and average benefit usage;
(ii) moderate recession, assuming temporary increases in
unemployment and claim volume; and
(iii) severe recession, assuming prolonged high unemployment and
elevated claim levels;
(H) an impact analysis estimating how anticipated hereunder shifts
projected in employer contribution rate schedules, reserve ratios and
taxable wage bases will affect various classes of employers by size,
industry or experience rating group;
(I) any material changes to federal unemployment insurance policies,
trust fund borrowing requirements or repayment obligations that may
affect trust fund sustainability or require state legislative action; and
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(J) a summary of social security act section 903 fund expenditures, as
required by subsection (d).
(3) The secretary shall make the certification and all supporting data
publicly accessible through the department's website, including
downloadable data sets or dashboards, if relevant, not later than
December 31 following the December 1 deadline for such certification
pursuant to paragraph (1).
(4) Not later than January 31 following such certification, the
secretary shall provide a summary briefing to the standing committees of
the senate and the house of representatives to which legislation pertaining
to the employment security law is customarily referred.
(5) The purpose of such certification shall be to provide state
policymakers and stakeholders with timely, data-driven insights to support
the evaluation of proposed legislation or reforms affecting the state's
unemployment insurance program and ensure that Kansas maintains a
solvent, responsive and economically sound trust fund.
(h) The secretary may adopt rules and regulations as necessary to
carry out the provisions of this section.
Sec. 22. K.S.A. 44-713 is hereby amended to read as follows: 44-713.
(a) Authorization. The secretary of labor, in recognition of is authorized to
recognize meritorious service by individual employees who serve are
engaged in the administration of the employment security law and who
receive a preponderant share if more than 50% of their such employee's
total compensation through is paid from the employment security
administration fund, is hereby authorized to make.
(b) Eligibility and recognition schedule. In recognition of meritorious
service awards, including , the secretary may authorize the presentation of
a service award pin and certificate to each of such employees when such
employee has served in such administration a minimum eligible employees
upon:
(1) Completion of 10 five years . The secretary may also present to
each of continuous or cumulative satisfactory service in the administration
of the employment security law;
(2) completion of such employees an additional pin and certificate for
each additional five year five-year period of satisfactory service thereafter;
and
(3) retirement or reaching major career milestones, including, but not
limited to, achieving 25, 30, 35 or 40 years of service.
(c) Additional nonmonetary awards. The secretary may authorize
additional forms of modest, noncash recognition for such meritorious
service, such as plaques, framed commendations or formal
acknowledgments at department events, if such awards:
(1) Are reasonable in cost;
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(2) conform to federal grant and conformity requirements, including
20 C.F .R. part 601 and related guidance issued by the United States
department of labor, including, but not limited to, ETA handbook 401; and
(3) are paid exclusively from the employment security administration
of the law. The cost of each such pin and certificate fund.
(d) Funding and limitations. All costs associated with awards issued
under this section shall:
(1) Be paid from the employment security administration fund;
(2) not exceed the allowable per-employee cost limits as set forth in
K.S.A. 44-703, and amendments thereto;
(3) not require legislative appropriation; and
(4) be processed in the same manner as other administrative expenses
of administering under the employment security law are paid.
(e) Procedures and reporting. The secretary may adopt internal
procedures for determining eligibility, verifying service milestones,
approving awards and maintaining appropriate documentation. A
summary of meritorious service recognition activities may be included in
the secretary’ s annual administrative reporting or workforce development
plan, at the discretion of the secretary.
(f) For the purposes of this section, "meritorious service award"
means the same as defined in K.S.A. 44-703, and amendments thereto.
Sec. 23. K.S.A. 44-713a is hereby amended to read as follows: 44-
713a. Pursuant to 42 U.S.C.A. § 1101 et seq., the secretary of labor may
accept assistance from the United States secretary of labor to conduct in-
service training either directly or through contracts with institutions of
higher education or other qualified agencies, organizations or institutions,
to conduct programs and courses designed to train individuals to prepare
them or improve their qualifications for service in the administration of
Kansas employment security programs. (a) Authority to accept assistance.
Pursuant to applicable federal workforce training and unemployment
insurance administration provisions, including, but not limited to, the
workforce innovation and opportunity act, 29 U.S.C. § 3101 et seq., and
any successor statutes, the secretary may accept and expend assistance
from the United States secretary of labor or other authorized federal
agency to conduct in-service training for individuals engaged in or
preparing for service in the administration of the employment security law.
(b) Delivery methods and contracting authority. Such training may be
provided directly by the secretary or through contracts, grants or
cooperative agreements with:
(1) Institutions of higher education;
(2) state or local workforce agencies;
(3) local workforce development boards;
(4) private sector entities with demonstrated expertise in
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unemployment insurance administration, information technology or
workforce development; or
(5) other qualified agencies, organizations or institutions.
(c) Scope of training. Programs and courses conducted under this
section may include, but are not limited to:
(1) Unemployment insurance program administration and
operations;
(2) fraud detection, prevention and investigation techniques;
(3) information technology, cybersecurity and system modernization;
(4) customer service, accessibility and claimant or employer support;
(5) compliance with applicable state and federal laws, regulations
and guidance; and
(6) program evaluation, performance metrics and process
improvement.
(d) Review and reporting. The secretary shall:
(1) Periodically review training programs to ensure alignment with
federal and state priorities, technological advancements and program
integrity requirements; and
(2) submit an annual report to the appropriate standing committees
of the legislature summarizing:
(A) The amount and source of federal assistance received;
(B) the number and types of training programs conducted;
(C) the number of individuals trained; and
(D) measurable program outcomes, including operational
improvements attributable to training.
Sec. 24. K.S.A. 44-714 is hereby amended to read as follows: 44-714.
(a) Duties and powers of secretary. It shall be the duty of the secretary to
administer this act and the secretary shall have power and authority to
adopt, amend or revoke such rules and regulations, to employ such
persons, make such expenditures, require such reports, make such
investigations, and take such other action as the secretary deems necessary
or suitable to that end. Such rules and regulations may be adopted,
amended, or revoked by the secretary only after public hearing or
opportunity to be heard thereon. The secretary shall determine the
organization and methods of procedure in accordance with the provisions
of this act, and shall have an official seal which shall be judicially noticed.
The secretary shall make and submit reports for the administration of the
employment security law in the manner prescribed by K.S.A. 75-3044
through 75-3046, and 75-3048, and amendments thereto. Whenever the
secretary believes that a change in contribution or benefit rates will
become necessary to protect the solvency of the fund, the secretary shall
promptly so inform the governor and the legislature, and make
recommendations with respect thereto.
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(b) Publication. The secretary shall cause to be printed for
distribution to the public the text of this act, the secretary's rules and
regulations and any other material the secretary deems relevant and
suitable and shall furnish the same to any person upon application therefor.
(c) Personnel. Subject to other provisions of this act, the secretary
Authority and duties of the secretary. (1) The secretary shall administer
the employment security law and is authorized to appoint, fix the
compensation,:
(A) Adopt, amend or revoke rules and prescribe regulations,
following a public hearing or opportunity to be heard;
(B) employ staff and agents, make expenditures, conduct
investigations, require reports and take other actions necessary to
administer the law;
(C) determine organizational structure and procedures consistent
with this act;
(D) use an official seal that shall be judicially noticed; and
(E) submit administrative reports in accordance with K.S.A. 75-3044
through 75-3048, and amendments thereto.
(2) If the secretary determines a change in contribution or benefit
rates is necessary to maintain fund solvency, the secretary shall promptly
notify the governor and legislature with recommendations for such
change.
(b) Publication of information. The secretary shall make available to
the public, including by electronic distribution on the department's
website, the text of this act, related rules and regulations and any other
materials deemed relevant and helpful to the public by the secretary.
(c) Personnel management. The secretary may appoint and assign
duties and powers of such to officers, accountants, deputies, attorneys,
experts and other persons as may be necessary in carrying out the
provisions of this act. The secretary personnel, and may delegate to any
such person so appointed such power and authority as the secretary deems
reasonable and proper for the effective administration of this act, and may
in appropriate authority to such persons. Staff who administer funds or
authorize payments may be bonded at the secretary's discretion bond any
person handling moneys or signing checks under the employment security
law.
(d) Employment stabilization and reemployment activities . In
collaboration with other workforce stakeholders, the secretary , with the
advice and aid of the appropriate divisions of the department of labor,
shall:
(1) Take all appropriate steps Promote efforts to reduce and prevent
unemployment, including engagement in statewide and regional economic
resilience planning;
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(2) encouragesupport workforce development initiatives and assist in
the adoption of practical methods of vocational partnerships in alignment
with the federal workforce innovation and opportunity act, including
programs for training, retraining and vocational guidance career
advancement;
(3) investigate, recommend, advise, and assist in the establishment
and operation, bycollaborate with local workforce boards, educational
institutions and employers to address evolving labor market needs;
(4) encourage municipalities, counties, school districts and the state,
of reserves for and public entities to maintain public works to be used in
time of business depression and unemployment; (4) promote the
reemployment of unemployed workers throughout the state in every other
way that may be feasible; and (5) to these ends carry on and publish the
results of investigations and research studies.
(e) Records and reports . Each employing unit shall keep true and
accurate work records, containing such information as the secretary may
prescribe. Such records shall be open to inspection and subject to being
copied by the secretary or the secretary's authorized representatives at any
reasonable time and shall be preserved for a period of five years from the
due date of the contributions or payments in lieu of contributions for the
period to which they relate. Only one audit shall be made of any
employer's records for any given period of time. Upon request the
employing unit shall be furnished a copy of all findings by the secretary or
the secretary's authorized representatives, resulting from such audit. A
special inquiry or special examination made for a specific and limited
purpose shall not be considered to be an audit for the purpose of this
subsection. The secretary may require from any employing unit any sworn
or unsworn reports, with respect to persons employed by it, which the
secretary deems necessary for the effective administration of this act.
Information thus obtained or obtained from any individual pursuant to the
administration of this act shall be held confidential, except to the extent
necessary for the proper presentation of a claim by an employer or
employee under the employment security law, and shall not be published
or be open to public inspection, other than to public officials or the agents
or contractors of a public official in the performance of their official
duties, in any manner revealing the individual's or employing unit's
identity. The secretary may publish or otherwise disclose appeals records
and decisions, and precedential determinations on coverage of employers,
employment and wages, provided all social security numbers have been
removed. Any claimant or employing unit or their representatives at a
hearing before an appeal tribunal or the secretary shall be supplied with
information from such records to the extent necessary for the proper
presentation of the claim. The transcript made at any such benefits hearing
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shall not be discoverable or admissible in evidence in any other
proceeding, hearing or determination of any kind or nature. In the event of
any appeal of a benefits matter, the transcript shall be sealed by the hearing
officer and shall be available only to any reviewing authority who shall
reseal the transcript after making a review of it. In no event shall such
transcript be deemed a public record. Nothing in this subsection shall be
construed to prohibit disclosure of any information obtained under the
employment security law, including hearing transcripts, upon request of
either of the parties, for the purpose of administering or adjudicating a
claim for benefits under the provisions of any other state program, except
that any party receiving such information shall be prohibited from further
disclosure and shall be subject to the same duty of confidentiality
otherwise imposed by this subsection and shall be subject to the penalties
imposed by this subsection for violations of such duty of confidentiality.
Nothing in this subsection shall be construed to prohibit disclosure of any
information obtained under the employment security law, including
hearing transcripts, for use as evidence in a criminal investigation or in
open court in a criminal prosecution or at an appeal hearing under the
employment security law. Nothing in this subsection shall be construed to
prohibit disclosure of any information obtained under the employment
security law, including hearing transcripts to an agent or contractor of a
public official to whom disclosure is permissible under the employment
security law, except that any party receiving such information shall be
prohibited from further disclosure, except for use in the performance of
such party's official duties, and shall be subject to the same duty of
confidentiality otherwise imposed by this subsection and shall be subject
to the penalties imposed by this subsection for violations of such duty of
confidentiality. Any individual who violates any provisions of this
subsection, shall be fined not less than $20 nor more than $200 or
imprisoned for not longer than 90 days, or both. Original records of the
agency and original paid benefit warrants of the state treasurer may be
made available to the employment security agency of any other state or the
federal government to be used as evidence in prosecution of violations of
the employment security law of such state or federal government.
Photostatic copies of such records shall be made and where possible shall
be substituted for original records introduced in evidence and the originals
returned to the agency. Nothing in this subsection shall be construed to
prohibit disclosure otherwise permissible under 20 C.F.R. part 603.5.
(f) Oaths and witnesses. In the discharge of the duties imposed by the
employment security law, the chairperson of an appeal tribunal, an appeals
referee, the secretary or any duly authorized representative of the secretary
shall have power to administer oaths and affirmations, take depositions,
issue interrogatories, certify to official acts, and issue subpoenas to compel
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the attendance of witnesses and the production of books, papers,
correspondence, memoranda and other records deemed necessary as
evidence in connection with a disputed claim or the administration of the
employment security law.
(g) Subpoenas, service. Upon request, service of subpoenas shall be
made by the sheriff of a county within that county, by the sheriff's deputy,
by any other person who is not a party and is not less than 18 years of age
or by some person specially appointed for that purpose by the secretary of
labor or the secretary's designee. A person not a party as described above
or a person specially appointed by the secretary or the secretary's designee
to serve subpoenas may make service any place in the state. The subpoena
shall be served as follows:
(1) Individual. Service upon an individual, other than a minor or
incapacitated person, shall be made: (A) By delivering a copy of the
subpoena to the individual personally; (B) by leaving a copy at such
individual's dwelling house or usual place of abode with some person of
suitable age and discretion then residing therein; (C) by leaving a copy at
the business establishment of the employer with an officer or employee of
the establishment; (D) by delivering a copy to an agent authorized by
appointment or by law to receive service of process, but if the agent is one
designated by a statute to receive service, such further notice as the statute
requires shall be given; or (E) if service as prescribed above in
subparagraphs (A), (B), (C) or (D) cannot be made with due diligence, by
leaving a copy of the subpoena at the individual's dwelling house, usual
place of abode or usual business establishment, and by mailing a notice by
first-class mail to the place that the copy has been left.
(2) Corporations and partnerships. Service upon a domestic or
foreign corporation or upon a partnership or other unincorporated
association, when by law it may be sued as such, shall be made by
delivering a copy of the subpoena to an officer, partner or resident
managing or general agent thereof, or by leaving the copy at any business
office of the employer with the person having charge thereof or by
delivering a copy to any other agent authorized by appointment or required
by law to receive service of process, if the agent is one authorized by law
to receive service and, if the law so requires, by also mailing a copy to the
employer.
(3) Refusal to accept service. In all cases when the person to be
served, or an agent authorized by such person to accept service of petitions
and summonses shall refuse to receive copies of the subpoena, the offer of
the duly authorized process server to deliver copies thereof and such
refusal shall be sufficient service of such subpoena.
(4) Proof of service . (A) Every officer to whom a subpoena or other
process shall be delivered for service within or without the state, shall
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make return thereof in writing stating the time, place and manner of
service of such writ and shall sign such officer's name to such return.
(B) If service of the subpoena is made by a person appointed by the
secretary or the secretary's designee to make service, or any other person
described in subsection (g), such person shall make an affidavit as to the
time, place and manner of service thereof in a form prescribed by the
secretary or the secretary's designee.
(5) Time for return. The officer or other person receiving a subpoena
shall make a return of service promptly and shall send such return to the
secretary or the secretary's designee in any event within 10 days after the
service is effected. If the subpoena cannot be served it shall be returned to
the secretary or the secretary's designee within 30 days after the date of
issue with a statement of the reason for the failure to serve the same.
(h) Subpoenas, enforcement . In case of contumacy by or refusal to
obey a subpoena issued to any person, any court of this state within the
jurisdiction of which the inquiry is carried on or within the jurisdiction of
which such person guilty of contumacy or refusal to obey is found, resides
or transacts business, upon application by the secretary or the secretary's
duly authorized representative, shall have jurisdiction to issue to such
person an order requiring such person to appear before the secretary, or the
secretary's duly authorized representative, to produce evidence, if so
ordered, or to give testimony relating to the matter under investigation or
in question. Failure to obey such order of the court may be punished by the
court as a contempt thereof. Any person who, without just cause, shall fail
or refuse to attend and testify or to answer any lawful inquiry or to
produce books, papers, correspondence, memoranda or other records in
obedience to the subpoena of the secretary or the secretary's duly
authorized representative shall be punished by a fine of not less than $200
or by imprisonment of not longer than 60 days, or both, and each day such
violation continued shall be deemed to be a separate offense.
(i) State-federal cooperation. In the administration of this act, the
secretary shall cooperate to the fullest extent consistent with the provisions
of this act, with the federal security agency, shall make such reports, in
such form and containing such information as the federal security
administrator may from time to time require, and shall comply with such
provisions as the federal security administrator may from time to time find
necessary to assure the correctness and verification of such reports; and
shall comply with the regulations prescribed by the federal security agency
governing the expenditures of such sums as may be allotted and paid to
this state under title III of the social security act for the purpose of
assisting in the administration of this act. Upon request therefor the
secretary shall furnish to any agency of the United States charged with the
administration of public works or assistance through public employment,
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the name, address, ordinary occupation, and employment status of each
recipient of benefits and such recipient's rights to further benefits under
this act.
(j) Reciprocal arrangements. The secretary shall participate in
making reciprocal arrangements with appropriate and duly authorized
agencies of other states or of the federal government, or both, whereby:
(1) Services performed by an individual for a single employing unit
for which services are customarily performed in more than one state shall
be deemed to be services performed entirely within any one of the states:
(A) In which any part of such individual's service is performed; (B) in
which such individual maintains residence; or (C) in which the employing
unit maintains a place of business, provided there is in effect as to such
services, an election, approved by the agency charged with the
administration of such state's unemployment compensation law, pursuant
to which all the services performed by such individual for such employing
units are deemed to be performed entirely within such state;
(2) service performed by not more than three individuals, on any
portion of a day but not necessarily simultaneously, for a single employing
unit which customarily operates in more than one state shall be deemed to
be service performed entirely within the state in which such employing
unit maintains the headquarters of its business; provided that there is in
effect, as to such service, an approved election by an employing unit with
the affirmative consent of each such individual, pursuant to which service
performed by such individual for such employing unit is deemed to be
performed entirely within such state;
(3) potential rights to benefits accumulated under the employment
compensation laws of one or more states or under one or more such laws
of the federal government, or both, may constitute the basis for the
payments of benefits through a single appropriate agency under terms
which the secretary finds will be fair and reasonable as to all affected
interests and will not result in any substantial loss to the fund;
(4) wages or services, upon the basis of which an individual may
become entitled to benefits under an unemployment compensation law of
another state or of the federal government, shall be deemed to be wages
for insured work for the purpose of determining such individual's rights to
benefits under this act, and wages for insured work, on the basis of which
an individual may become entitled to benefits under this act, shall be
deemed to be wages or services on the basis of which unemployment
compensation under such law of another state or of the federal government
is payable, but no such arrangement shall be entered into unless it contains
provisions for reimbursements to the fund for such of the benefits paid
under this act upon the basis of such wages or services, and provisions for
reimbursements from the fund for such of the compensation paid under
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such other law upon the basis of wages for insured work, as the secretary
finds will be fair and reasonable as to all affected interests; and
(5) (A) contributions due under this act with respect to wages for
insured work shall be deemed for the purposes of K.S.A. 44-717, and
amendments thereto, to have been paid to the fund as of the date payment
was made as contributions therefor under another state or federal
unemployment compensation law, but no such arrangement shall be
entered into unless it contains provisions for such reimbursements to the
fund of such contributions and the actual earnings thereon as the secretary
finds will be fair and reasonable as to all affected interests;
(B) reimbursements paid from the fund pursuant to subsection (j)(4)
shall be deemed to be benefits for the purpose of K.S.A. 44-704 and 44-
712, and amendments thereto; the secretary is authorized to make to other
state or federal agencies, and to receive from such other state or federal
agencies, reimbursements from or to the fund, in accordance with
arrangements entered into pursuant to the provisions of this section or any
other section of the employment security law;
(C) the administration of this act and of other state and federal
unemployment compensation and public employment service laws will be
promoted by cooperation between this state and such other states and the
appropriate federal agencies in exchanging services and in making
available facilities and information; the secretary is therefore authorized to
make such investigations, secure and transmit such information, make
available such services and facilities and exercise such of the other powers
provided herein with respect to the administration of this act as the
secretary deems necessary or appropriate to facilitate the administration of
any such unemployment compensation or public employment service law
and, in like manner, to accept and utilize information, service and facilities
made available to this state by the agency charged with the administration
of any such other unemployment compensation or public employment
service law; and
(D) to the extent permissible under the laws and constitution of the
United States, the secretary is authorized to enter into or cooperate in
arrangements whereby facilities and services provided under this act and
facilities and services provided under the unemployment compensation
law of any foreign government may be utilized for the taking of claims and
the payment of benefits under the employment security law of this state or
under a similar law of such government.
(k) Records available. or emergency employment reserves for
economic downturns; and
(5) publish research, forecasts and evaluations related to employment
trends, labor force development and future workforce needs.
(e) Records, audits and confidentiality. (1) Employers shall retain
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accurate work records for five years from the due date of contributions.
(2) Such records shall be open for inspection and copying by the
secretary or the secretary's authorized agents during business hours.
(3) The secretary shall limit audits by the secretary to one audit per
period per employer, except for targeted special inquiries.
(4) The secretary shall provide copies of audit reports or summaries
of an audit of an employer at the request of such employer.
(5) The secretary may require reports from employers with respect to
employment, including sworn or unsworn submissions. Such reports shall
be provided by an employer upon the secretary's request.
(6) All individual and employer information obtained pursuant to the
employment security law shall be confidential, except as otherwise
specified, and the confidentiality, disclosure and use of any information
obtained or maintained under this act shall comply with section 303(a)(1),
(7), and (11) of the federal social security act, and 20 C.F .R. part 603,
including the safeguarding of claimant and employer data, interagency
agreements and any requirements for use of information in the
performance of official duties. Confidential information may be subject to
disclosure to the extent necessary for:
(A) Proper claim determination;
(B) provision to public officials or their agents or contractors in the
performance of official duties as defined in K.S.A. 44-703, and
amendments thereto. Any disclosure of confidential information to a public
official's agent or contractor shall require a written agreement. Such
agreement shall specify the agent or contractor's obligation to maintain
confidentiality, restrict use of the information solely to the performance of
official duties and acknowledge the penalties applicable under subsection
(e)(8) and 20 C.F .R. part 603.9 for any unauthorized disclosure or misuse.
(C) inclusion as appropriately redacted in records of coverage
determinations and appeals;
(D) evidence in criminal cases or other authorized legal proceedings;
(E) other state or federal unemployment insurance programs for
benefit adjudication, provided that all disclosures comply with the
confidentiality provisions of any applicable federal law, including 20
C.F .R. part 603; and
(F) provision of original records, including confidential records, to
other states or the federal government for law enforcement purposes or
prosecution of unemployment insurance law violations. Copies of such
records shall be provided when feasible.
(7) Hearing transcripts of any proceedings pursuant to the
employment security law involving the discussion or disclosure of
confidential information shall not be deemed public records and shall be
sealed for purposes of any appeals.
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(8) Any person who violates the confidentiality provisions of this
section shall be guilty of a unclassified nonperson misdemeanor and
subject to a fine of not less than $20 nor more than $200, imprisonment
for up to 90 days or both such fine and imprisonment.
(9) This subsection shall be interpreted consistently with 20 C.F .R.
part 603 to maintain compliance with federal law.
(f) Oaths, subpoenas and witnesses. (1) The secretary, appeals
referees and designees of the secretary may administer oaths, issue
subpoenas and compel the production of evidence.
(2) Subpoenas may be served by sheriffs, qualified persons or
designees of the secretary who are 18 years of age or older.
(3) Subpoena service shall follow applicable Kansas civil procedure
rules and require proof of service within 10 days or explanation of failure
of service within 30 days.
(4) Refusal to comply with service may be enforced by district courts
and punished as contempt or a fine of at least $200 or up to 60 days
imprisonment. Each day such noncompliance continues shall constitute a
separate offense.
(g) Cooperation with federal agencies. (1) The secretary shall fully
cooperate with federal agencies administering employment programs,
submit required reports and comply with federal rules for title III of the
social security act.
(2) Such cooperation shall include the use of modern interstate data
systems, such as the interstate connection network, for secure exchange of
unemployment insurance data. The secretary shall ensure that all requests
for confidential information by federal entities are verified for authorized
purpose and that appropriate safeguards are in place to monitor
compliance in accordance with 20 C.F .R. part 603.
(h) Reciprocal arrangements. The secretary may furnish enter into
agreements with other states or federal agencies for:
(1) Coordinating unemployment insurance coverage across multiple
states based on residence, work location or employer location;
(2) recognizing benefit rights and contributions across jurisdictions;
(3) facilitating combined wage claims and transfers of benefits and
contributions;
(4) enabling benefit payments based on interstate or federal wages;
(5) ensuring fair reimbursement of benefits and contributions; and
(6) cooperating with foreign governments where permissible
pursuant to applicable federal and state law.
(i) Records for federal use. The secretary may furnish unemployment
insurance records to the railroad retirement board , at the such board's
expense of such board, such copies of the records as the railroad retirement
board deems necessary for its purposes.
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(l)(j) Destruction of records, reproduction and dispositionRecords
management. (1) The secretary may provide for authorize the destruction ,
reproduction, temporary or permanent or digital retention, and disposition
of records, reports and claims in the secretary's possession pursuant to the
administration of the employment security law provided that prior to any
destruction of such records, reports or claims the secretary shall comply
with of unemployment insurance records pursuant to K.S.A. 75-3501
through 75-3514, and amendments thereto , 2 C.F .R. § 200.334 and other
applicable federal grant retention requirements and relevant guidance
from the United States department of labor.
(m) Federal cooperation. The secretary may afford reasonable
cooperation with every agency of the United States charged with
administration of any unemployment insurance law.
(n) The secretary is hereby authorized to fix, charge and collect fees
for copies made
(2) All records retained or maintained by the secretary pursuant to
this subsection shall be stored securely in accordance with modern
information security standards, including access controls, encryption
where appropriate and safeguards against unauthorized disclosure or
alteration.
(k) Fees for public records. When fees are otherwise permitted by
law, the secretary may charge reasonable fees for copies of public
documents, as defined by K.S.A. 45-217(c), and amendments thereto, by
xerographic, thermographic or other photocopying or reproduction
process, in order to recover with all or part of the actual costs incurred,
including any costs incurred in certifying such copies. All moneys received
from fees charged for copies of such documents shall be remitted proceeds
credited to the state treasurer in accordance with the provisions of
employment security administration fund pursuant to K.S.A. 75-4215, and
amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury to the credit
of the employment security administration fund. No such fees shall be
charged or collected for copies of documents that are made pursuant to a
statute which requires such copies to be furnished without expense.
(o) "Performance of official duties" means the administration or
enforcement of law or the execution of the official responsibilities of a
federal, state or local official, collection of debts owed to the courts or the
enforcement of child support on behalf of a state or local official.
Administration of law includes research related to the law administered by
the public official. "Performance of official duties" does not include
solicitation of contributions or expenditures to or on behalf of a candidate
for public or political office or a political party.
(l) Transparency and public accessibility. (1) The secretary shall:
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(A) Publish a plain-language guide in paper format for public
distribution and on the department's website summarizing the
responsibilities and powers described in this section, including
confidentiality protections, audit practices and federal cooperation
activities; and
(B) provide digital access on the department's website to current
rules, guidance documents and intergovernmental agreements executed
pursuant to this section, to the extent such documents are not protected by
confidentiality law; and
(2) The secretary may include a summary of activities carried out
pursuant to this section in the department’ s annual workforce or
administrative report.
(m) Rulemaking authority. (1) The secretary may adopt such rules
and regulations as necessary to carry out the provisions of this section,
consistent with applicable state and federal law.
(2) The secretary shall adopt rules and regulations to administer and
oversee the registration, compliance and audit of employer-sponsored
supplemental unemployment benefit plans pursuant to section 2, and
amendments thereto. Such rules and regulations shall include procedures
for plan submission, approval, revocation and periodic reporting.
Sec. 25. K.S.A. 44-715 is hereby amended to read as follows: 44-715.
(a) State employment service. The secretary of labor shall establish and
maintain employment offices in such number and in such places as may be
necessary for the proper administration of this act and for the purposes of
performing such duties as are within the purview of the act of congress
entitled "An act to provide for the establishment of a national employment
system and for cooperation with the states in the promotion of such
system, and for other purposes," approved June 6, 1933 (48 Stat. 113;
U.S.C., title 29, sec. 49 (c) as amended). The secretary of labor shall be
charged with the duty of cooperating with any official or agency of the
United States having powers or duties under the provisions of such act of
congress, as amended, and to do and perform all things necessary to secure
to this state the benefits of such act of congress, as amended, in the
promotion and maintenance of a system of employment offices. The
provisions of such act of congress, as amended, are hereby accepted by
this state, in conformity with such act, and this state will observe and
comply with the requirements thereof. The secretary of labor is hereby
designated and constituted the agency of this state for the purpose of such
act. The secretary of labor shall appoint such officers and employees as
may be necessary for the administration of the act of which this section is
amendatory. Such appointments shall be made in accordance with
regulations prescribed by the director of the United States employment
service. The secretary of labor may cooperate with or enter into
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agreements with the railroad retirement board with respect to the
establishment, maintenance, and use of free employment service facilities.
(b) Financing. All moneys received by this state under such act of
congress, as amended, shall be paid into the employment security
administration fund, and such moneys are hereby made available to the
secretary of labor to be expended as provided by this section and by such
act of congress. For the purpose of establishing and maintaining free
public employment offices, the secretary is authorized to enter into
agreements with the railroad retirement board, or any other agency of the
United States charged with the administration of an unemployment
compensation law, with any political subdivision of this state or with any
private nonprofit organization, and as a part of any such agreement the
secretary of labor may accept moneys, services, or quarters as a
contribution to the employment service account, and the political
subdivisions of this state are hereby authorized to raise and expend
moneys, services, or quarters as contribution to the employment service
account.(a) Kansas state employment service. The secretary shall establish
and maintain a statewide system of free public employment offices in such
number and in such locations as may be necessary for the effective
administration of the employment security law and for purposes consistent
with the Wagner-Peyser act of 1933, as amended, 29 U.S.C. § 49 et seq.
Such offices shall function as part of a national employment system and
provide employment services to job seekers and employers.
(1) The department shall serve as the designated state agency for
purposes of carrying out the provisions of the Wagner-Peyser act and the
secretary shall cooperate with the United States department of labor and
any other federal agency authorized to administer employment or
workforce development programs under such act, including its
amendments and related federal guidance.
(2) This state accepts the provisions and requirements of the Wagner-
Peyser act, as amended. The secretary shall comply with all terms of such
act necessary to receive and retain federal funding and participate in the
national public employment service system.
(3) The secretary may appoint such officers and employees as are
necessary for the administration of the Kansas state employment service.
In making such appointments, the secretary shall comply with personnel
standards and procedures prescribed by the United States employment
service, as required by the applicable federal regulations, to maintain
federal funding and eligibility for participation in the national public
employment service system.
(4) (A) The secretary is authorized to collaborate or enter into
agreements with:
(i) The railroad retirement board;
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(ii) any agency of the federal government responsible for
unemployment compensation, reemployment services or workforce
development;
(iii) local workforce development boards as defined by the workforce
innovation and opportunity act, 29 U.S.C. § 3102;
(iv) political subdivisions of this state; or
(v) any nonprofit organization that supports workforce development.
(B) Such agreements may address the establishment, maintenance
and operation of employment offices or services, including colocation,
joint programming or resource sharing.
(b) Financing and contributions. (1) The secretary shall remit federal
moneys received by the state of Kansas pursuant to the Wagner-Peyser
act, as amended, to the state treasurer in accordance with the provisions
of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury to the credit of the employment security administration fund
pursuant to K.S.A. 44-712, and amendments thereto. Such fund shall be
available to the secretary for expenditures in accordance with the
purposes of this section and applicable federal law. All expenditures from
such fund shall be made upon warrants of the director of accounts and
reports issued pursuant to vouchers approved by the secretary or by a
person or persons designated by the secretary.
(2) To establish, operate and enhance the public employment service,
the secretary is authorized to:
(A) Accept federal funds, property or services;
(B) accept moneys, in-kind contributions or facilities from political
subdivisions of this state as contributions to the employment service
account;
(C) accept services, space or operational support from nonprofit
organizations or partners; and
(D) allocate or match funds, subject to federal or state grant
requirements, for the purpose of service expansion, modernization or
regional workforce planning.
(3) Political subdivisions of this state are hereby authorized to raise
and expend moneys or contribute facilities, equipment or personnel in
support of the Kansas state employment service and such service's
coordination with local economic and workforce development initiatives.
(c) Accountability and integration. The secretary shall:
(1) Promote coordination of the state employment service with other
labor exchange systems, including electronic labor market information
systems, unemployment insurance claimant services and reemployment
assistance programs;
(2) ensure that services delivered under this section are aligned with
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the Kansas state workforce development plan and the requirements of the
federal workforce innovation and opportunity act;
(3) monitor the performance of employment offices based on federal
and state outcome measures, including placement rates, customer
satisfaction and service equity; and
(4) annually report to the governor and legislature a summary of
employment service activities, partnerships, funding and performance
benchmarks. Such summary may be integrated into the department's
workforce or administrative report.
(d) Rulemaking authority. The secretary may adopt such rules and
regulations as necessary to carry out the provisions of this section and
remain in conformity with federal statutes, regulations and grant
conditions applicable to the public employment service.
Sec. 26. K.S.A. 44-716 is hereby amended to read as follows: 44-716.
(a) Special fund. There is hereby created in the state treasury a special fund
to be known as the employment security administration fund. All moneys
in this fund which are received from the federal government or any agency
thereof, except money received pursuant to subsection (d) of K.S.A. 44-
712, and amendments thereto, shall be expended solely for the purposes
and in the amounts found necessary by the United States secretary of labor
for the proper and efficient administration of this act. The fund shall
consist of all moneys appropriated by this state and all moneys received
from the United States of America, or any agency thereof, including the
federal security agency, the railroad retirement board, and any proceeds
realized from the sale or disposition of any equipment or supplies which
may no longer be necessary for the proper administration of this act, or
from any other source, for such purposes, except that moneys received
from the railroad retirement board or from any other state as compensation
for services or facilities supplied to the board shall be paid into this fund
on the same basis as expenditures are made for such service or facilities
from such fund. All moneys in this fund shall be deposited, administered,
and disbursed, in the same manner and under the same conditions and
requirements as is provided by law for other special funds in the state
treasury. All balances accrued from unpaid or canceled warrants issued
pursuant to this section, notwithstanding the provisions of K.S.A. 10-812,
and amendments thereto, shall remain in the employment security
administration fund, and be disbursed in accordance with the provisions of
this act relating to such account. Notwithstanding any provision of this
section, all money requisitioned and deposited in this fund pursuant to
subsection (d) of K.S.A. 44-712, and amendments thereto, shall remain
part of the employment security administration fund and shall be used only
in accordance with the conditions specified in subsection (d) of K.S.A. 44-
712, and amendments thereto.
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(b) Appropriations. There shall be appropriated to the employment
security administration fund, from any moneys in the state treasury not
otherwise appropriated, the sum necessary to match the amount as may be
provided and granted to this state under the provisions of the act of
congress entitled "an act to provide for the establishment of a national
employment system and for cooperation with states in the promotion of
such system, and for other purposes," approved June 6, 1933 (48 Stat. 113;
U.S.C., title 29, sec. 49 (cl) as amended). Pursuant to an estimate by the
secretary of labor of the amount of money required during the ensuing
calendar quarter from the sums appropriated, such amount shall be
credited to the administration fund at the beginning of each quarter, and
additional amounts may be credited by special request of the secretary of
labor. The director of accounts and reports is hereby authorized and
directed to draw warrants upon the treasurer of the state for the amounts
appropriated upon vouchers approved by the secretary of labor.
(c) Reimbursement of fund. This state recognizes its obligation to
replace, and hereby pledges the faith of this state that funds will be
provided in the future, and applied to the replacement of, any moneys
received after July 1, 1941, from the federal security agency under title III
of the social security act, pursuant to the provisions of section 303 (a) 8
and 9 of the social security act, as amended, which the federal security
administrator finds have, because of any action or contingency, been lost
or have been expended for purposes other than, or in amounts in excess of,
those found necessary by the federal security administrator to the proper
administration of this act. Such moneys shall be promptly replaced by
moneys appropriated for such purpose from the general funds of this state
to the employment security administration fund for expenditures as
provided in subsection (a) of this section. The secretary of labor shall
promptly report to the governor, to the legislature, the amount required for
such replacement. In the event that section 303 (a) 8 and 9 of the social
security act is repealed or held inoperative for any reason whatsoever then
this paragraph shall be null and void.(a) Establishment and purpose. There
is hereby established in the state treasury a special fund to be known as
the employment security administration fund. The fund shall be used
exclusively for the proper and efficient administration of the employment
security law and in conformity with title III of the federal social security
act, 42 U.S.C. § 501 et seq., the Wagner-Peyser act, 29 U.S.C. § 49 et seq.,
and any other applicable federal or state law.
(1) The fund shall consist of:
(A) Moneys appropriated by the state legislature;
(B) moneys received from the United States government or any
federal agency, including, but not limited to, the United States department
of labor and the railroad retirement board;
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(C) proceeds from the sale, lease or disposal of equipment, property
or supplies no longer necessary for administration;
(D) payments received as reimbursement from other states or federal
agencies for services, facilities or staff provided by the department for
unemployment insurance or workforce programs; and
(E) any other funds received from public or private sources for the
purpose of administering the employment security law.
(2) Except as provided in K.S.A. 44-712(d), and amendments thereto,
all moneys deposited into this fund shall be used solely for purposes and
in amounts determined necessary by the United States secretary of labor
and shall not be transferred, diverted or used for any other purpose.
(3) All moneys in this fund shall be deposited, administered and
disbursed in accordance with the provisions applicable to other special
funds in the state treasury, including the provisions of K.S.A. 75-4215, and
amendments thereto.
(4) Any balance from unpaid or canceled warrants issued under this
section shall remain in the employment security administration fund and
be used for purposes consistent with this section.
(5) Moneys requisitioned and deposited pursuant to K.S.A. 44-
712(d), and amendments thereto, shall remain within the employment
security administration fund and be used exclusively for the purposes
specified in that subsection.
(b) Appropriations and fund transfers. (1) Subject to appropriation
acts, moneys shall be appropriated to the employment security
administration fund in such amounts as necessary to match federal grants
received by the state for the administration of public employment services
and unemployment insurance under the social security act and the
Wagner-Peyser act.
(2) The secretary shall submit quarterly estimates of required funding
and additional estimates, as needed, to the director of accounts and
reports. Based on such estimates, the director shall draw warrants on the
state treasurer for transfer of moneys to the administration fund. All such
transfers shall be based on vouchers approved by the secretary of labor or
the secretary's designee.
(c) Loss or misuse of federal funds; reimbursement obligation. (1)
The state of Kansas pledges to replace any moneys received after July 1,
1941, from the United States government pursuant to title III of the social
security act that are lost or expended for purposes other than those
approved by the United States secretary of labor.
(2) In such event, the secretary shall report the amount necessary for
replacement to the governor and the legislature. Subject to appropriation
acts, replacement of such moneys shall be made from the state general
fund to the employment security administration fund.
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(3) The provisions of this subsection shall remain operative only
while required by federal law. If the federal requirement for
reimbursement is repealed or otherwise becomes inapplicable, the
secretary shall report such event to the governor and the legislature and
no replacement of moneys pursuant to this subsection shall be made.
(d) Oversight and transparency. (1) The secretary shall ensure that
all expenditures from the employment security administration fund comply
with federal cost principles and administrative requirements, including
those set forth in 2 C.F .R. part 200 and 20 C.F .R. part 601.
(2) The department shall maintain records and internal controls
sufficient to demonstrate that all disbursements support permissible
administrative activities, and shall comply with all audit and reporting
requirements imposed by state and federal authorities.
(3) The secretary shall include in the department's annual report to
the governor and the legislature a summary of:
(A) Fund balances and sources of revenue;
(B) expenditures by category;
(C) federal grant compliance status; and
(D) any corrective actions required by state or federal audits.
(4) The secretary may adopt rules and regulations necessary to carry
out the provisions of this section, ensure financial compliance and
facilitate reporting and oversight.
Sec. 27. K.S.A. 44-716a is hereby amended to read as follows: 44-
716a. (a) Establishment and purpose. There is hereby created established
in the state treasury a special fund to be known as the special employment
security fund. All interest and penalties collected under the provisions of
the Kansas employment security law shall be paid deposited into this fund.
No such moneys fund.
(1) Moneys in such fund shall not be expended or available for
expenditure used in any manner which that would permit their substitution
for, or a corresponding result in a reduction in, of federal funds which in
the absence of such moneys that would otherwise be available to finance
expenditures for the administration of the employment security law.
Nothing in this section shall prevent such moneys from being
(2) Such fund may be used as a temporary revolving fund , to cover
expenditures, necessary and proper under the law, for which
administrative costs that are properly chargeable to federal funds that
have been duly requested but not yet received, subject to the charging
provided that such expenditures are reconciled upon receipt of such
expenditures against such federal funds when received.
(3) Except as otherwise authorized by provided in this section or by
appropriations act, the acts, moneys in this fund may shall be used by the
secretary of labor only solely for the payment of:
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(A) Costs of administration which are found not to have been
properly and validly chargeable against to federal grants , or other funds,
received for or in the employment security administration fund. In addition
to the other purposes for which expenditures may be made from the
special employment security fund as authorized by this section or by
appropriations act, moneys from this fund may be used to finance
administrative funding sources;
(B) activities as deemed necessary by the secretary of labor for to
support the efficient administration of the employment security law;
(C) investments in digital modernization or cybersecurity
infrastructure related to the secure operation of activities under or the ,
maintenance or modernization of employment security benefit or tax
systems, including, but not limited to, system upgrades, threat mitigation
and digital access improvements; and
(D) establishment and use of a limited emergency reserve for
responding to emergent or federally unfunded mandates necessary to
ensure compliance, continuity or system integrity in the administration of
the employment security law, except that (1) no moneys.
(4) No expenditures shall be used for such purposes authorized under
paragraph (3)(A), (B), (C) or (D) unless:
(A) The secretary has determined that determines no other funds are
funding source is available or can be properly used to finance appropriate;
and
(B) total expenditures for such purposes, and (2) expenditures
activities during any fiscal year for purposes authorized under this section
shall do not exceed $110,000 except upon approval of , unless otherwise
approved by the state finance council acting on this matter which is hereby
characterized as a matter of legislative delegation and subject to the
guidelines prescribed by subsection (c) of pursuant to K.S.A. 75-3711c(c),
and amendments thereto. No
(5) All expenditures of pursuant to this fund subsection shall be made
except on require written authorization by the governor and the secretary
of labor.
(b) TheAdministration, oversight and reporting. (1) The director of
accounts and reports is hereby directed to shall draw warrants upon the
state treasurer against the money in the special employment security fund
for the use and purposes authorized under this section upon vouchers ,
approved by the secretary of labor, and accompanied by the written
authorization of the governor and the secretary of labor. The
authorizations required by subsection (a)(5).
(2) Moneys in this the special employment security fund are hereby
specifically made available shall also be used to replace, within a
reasonable time period , any moneys federal funds received by this the
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state pursuant to section 302 of the federal social security act, as amended,
which, because of any action or contingency, 42 U.S.C § 502, that have
been lost or have been expended for purposes other than, or in amounts in
excess of, those necessary for the proper administration of the employment
security not permitted under federal law.
(3) The moneys in this fund shall be continuously available to the
secretary of labor for expenditure in accordance with the provisions of
purposes authorized by this section and fund moneys shall not lapse at any
time or be transferred to any other fund , except as otherwise authorized
provided in subsection (c) or subsection, (d), (e) or (f).
(c)(4) In addition to expenditures authorized by this section,The
secretary shall annually report to the governor and the legislature a
summary of the fund's activity, including the:
(A) Total receipts by source and expenditure by category;
(B) timeliness of reimbursement for any revolving expenditures;
(C) status of any digital modernization, cybersecurity or emergency
reserve activities conducted during the reporting period; and
(D) findings or corrective actions from audits or reviews conducted
under state or federal oversight.
(c) Authorized transfers – accounting services recovery fund. The
director of accounts and reports may is authorized to transfer funds
moneys from the special employment security fund to the accounting
services recovery fund as provided in accordance with K.S.A. 75-3728b
and K.S.A. 75-6210, and amendments thereto.
(d) In addition to expenditures authorized by this section Authorized
transfers – federal indirect cost offset fund. On July 1 of each year , the
director of accounts and reports is directed and authorized to shall transfer
funds from the special employment security fund to the department of
labor federal indirect cost offset fund on July 1 of each year in the amount
contained in appropriation bills to be expended from the federal indirect
cost offset fund in the amount specified by appropriations for that fiscal
year.
(e) In addition to expenditures authorized by this section, Authorized
transfers – employer interest refunds. The director of accounts and reports
is directed and authorized to transfer funds moneys from the special
employment security fund to the clearing account of the employment
security fund to be expended in the payment of pay interest due owed to
employers from due to erroneously collected contributions or benefit cost
payments as provided in subsection (h) of pursuant to K.S.A. 44-717 (h),
and amendments thereto.
(f) In addition to expenditures authorized by this section, Authorized
transfers – electronic payment fees. the director of accounts and reports is
directed and authorized to transfer funds moneys from the special
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employment security fund to the clearing account of the employment
security fund to be expended in the payment of cover fees assessed for the
electronic payments or credit card payments of contributions, benefit cost
payments costs or reimbursing payments made by employers in lieu of
contributions from employers.
Sec. 28. K.S.A. 2025 Supp. 44-717 is hereby amended to read as
follows: 44-717. (a) (1) Penalties on past-due reports, interest on past-due
contributions, payments in lieu of contributions and benefit cost payments.
Any employer or any officer or agent of an employer, who fails to file any
wage report or contribution return by the last day of the month following
the close of each calendar quarter to which they are related shall pay a
penalty as provided by this subsection for each month or fraction of a
month until the report or return is received by the secretary of labor. The
penalty for each month or fraction of a month shall be an amount equal to .
05% of the total wages paid by the employer during the quarter, except
that no penalty shall be less than $25 nor more than $200 for each such
report or return not timely filed. Contributions and benefit cost payments
unpaid by the last day of the month following the last calendar quarter to
which they are related and payments in lieu of contributions unpaid 30
days after the mailing of the statement of benefit charges, shall bear
interest at the rate of 1% per month or fraction of a month until payment is
received by the secretary of labor. An employing unit that has not
previously been subject to this law and that becomes an employer and does
not refuse to make the reports, returns and contributions, payments in lieu
of contributions and benefit cost payments required under this law, shall
not be liable for such penalty or interest if the wage reports and
contribution returns required are filed and the contributions, payments in
lieu of contributions or benefit cost payments required are paid within 10
days following notification by the secretary of labor that a determination
has been made fixing its status as an employer subject to this law. Upon
written request and good cause shown, the secretary of labor may abate
any penalty or interest or portion thereof provided for by this subsection.
Interest amounting to less than $5 shall be waived by the secretary of labor
and shall not be collected. Penalties and interest collected pursuant to this
subsection shall be paid into the special employment security fund. For all
purposes under this section, amounts assessed as surcharges under
subsection (j) or under K.S.A. 44-710a, and amendments thereto, shall be
considered to be contributions and shall be subject to penalties and interest
imposed under this section and to collection in the manner provided by
this section. For purposes of this subsection, a wage report, a contribution
return, a contribution, a payment in lieu of contribution or a benefit cost
payment is deemed to be filed or paid as of the date it is placed in the
United States mail.
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(2) Notices of payment and reporting delinquency to Indian tribes or
their tribal units shall include information that failure to make full payment
within the prescribed time frame:
(i) Will cause the Indian tribe to be liable for taxes under FUTA;
(ii) will cause the Indian tribe to lose the option to make payments in
lieu of contributions;
(iii) could cause the Indian tribe to be excepted from the definition of
employer, as provided in K.S.A. 44-703(h)(3), and amendments thereto,
and services in the employ of the Indian tribe, as provided in K.S.A. 44-
703(i)(3)(E), and amendments thereto, to be excepted from employment.
(b) Collection. (1) If, after due notice, any employer defaults in
payment of any penalty, contributions, payments in lieu of contributions or
benefit cost payments or interest thereon the amount due may be collected
by civil action in the name of the secretary of labor and the employer
adjudged in default shall pay the cost of such action. Civil actions brought
under this section to collect such contributions, payments in lieu of
contributions or benefit cost payments, penalties or interest thereon from
an employer shall be heard by the district court at the earliest possible date
and shall be entitled to preference upon the calendar of the court over all
other civil actions except petitions for judicial review under this act and
cases arising under the workmen's compensation act. All liability
determinations of contributions due, payments in lieu of contributions or
benefit cost payments due shall be made within a period of five years from
the date such contributions, payments in lieu of contributions or benefit
cost payments were due except such determinations may be made for any
time when an employer has filed fraudulent reports with intent to evade
liability.
(2) Any employing unit that is not a resident of this state and
exercises the privilege of having one or more individuals perform service
for it within this state and any resident employing unit that exercises that
privilege and thereafter leaves this state, shall be deemed to have
appointed the secretary of state as its agent and attorney for the acceptance
of process in any civil action under this subsection. In instituting such an
action against any such employing unit the secretary of labor shall cause
such process or notice to be filed with the secretary of state and such
service shall be sufficient service upon such employing unit and shall be of
the same force and validity as if served upon the employing unit
personally within this state. The secretary of labor shall send notice
immediately of the service of such process or notice, together with a copy
thereof, by registered or certified mail, return receipt requested, to such
employing unit at its last-known address and such return receipt, the
affidavit of compliance of the secretary of labor with the provisions of this
section and a copy of the notice of service shall be appended to the
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HB 2764 182
original of the process filed in the court where such civil action is pending.
(3) The district courts of this state shall hear, in the manner provided
in subsections (b)(1) and (b)(2), actions to collect contributions, payments
in lieu of contributions, benefit cost payments and other amounts owed
including interest thereon for which liability has accrued under the
employment security law of any other state or of the federal government.
(c) Priorities under legal dissolutions or distributions. In the event of
any distribution of employer's assets pursuant to an order of any court
under the laws of this state, including but not limited to any probate
proceeding, interpleader, receivership, assignment for benefit of creditors,
adjudicated insolvency, composition or similar proceedings, contributions
payments in lieu of contributions or benefit cost payments, then or
thereafter due shall be paid in full from the moneys which shall first come
into the estate, prior to all other claims, except claims for wages of not
more than $250 to each claimant, earned within six months of the
commencement of the proceedings. In the event of an employer's
adjudication in bankruptcy, judicially confirmed extension proposal or
composition under federal bankruptcy law, contributions then or thereafter
due shall be entitled to such priority as is provided by federal bankruptcy
law for taxes due any state of the United States.
(d) Assessments. If any employer fails to file a report or return
required by the secretary of labor for the determination of contributions,
payments in lieu of contributions, or benefit cost payments, the secretary
of labor may make such reports or returns or cause the same to be made,
on the basis of such information as the secretary may be able to obtain and
shall collect the contributions, payments in lieu of contributions or benefit
cost payments as determined together with any interest due under this act.
The secretary of labor shall immediately forward to the employer a copy
of the assessment by registered or certified mail to the employer's address
as it appears on the records of the agency. Such assessment shall be final
unless the employer protests such assessment and files a corrected report
or return for the period covered by the assessment within 15 days after the
mailing of the copy of assessment. Failure to receive such notice shall not
invalidate the assessment. Notice in writing shall be presumed to have
been given when deposited as certified or registered mail in the United
States mail, addressed to the person to be charged with notice at such
person's address as it appears on the records of the agency.
(e) (1) Lien. If any employer or person who is liable to pay
contributions, payments in lieu of contributions or benefit cost payments
neglects or refuses to pay the same after demand, the amount, including
interest and penalty, shall be a lien in favor of the state of Kansas,
secretary of labor, upon all property and rights to property, whether real or
personal, belonging to such employer or person. Such lien shall not be
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HB 2764 183
valid as against any mortgagee, pledgee, purchaser or judgment creditor
until notice thereof has been filed by the secretary of labor in the office of
register of deeds in any county in the state of Kansas where such property
is located, and when so filed shall be notice to all persons claiming an
interest in the property of the employer or person against whom filed. The
register of deeds shall enter such notices in the financing statement record
and shall also record the same in full in miscellaneous record and index the
same against the name of the delinquent employer. The register of deeds
shall accept, file, and record such notice without prepayment of any fee,
but lawful fees shall be added to the amount of such lien and collected
when satisfaction is presented for entry. Such lien shall be satisfied of
record upon the presentation of a certificate of discharge by the state of
Kansas, secretary of labor. Nothing contained in this subsection shall be
construed as an invalidation of any lien or notice filed in the name of the
unemployment compensation division or the employment security division
and such liens shall be and remain in full force and effect until satisfied as
provided by this subsection.
(2) Authority of secretary or authorized representative. If any
employer or person who is liable to pay any contributions, payments in
lieu of contributions or benefit cost payments, including interest and
penalty, neglects or refuses to pay the same within 10 days after notice and
demand therefor, the secretary or the secretary's authorized representative
may collect such contributions, payments in lieu of contributions or benefit
cost payments, including interest and penalty, and such further amount as
is sufficient to cover the expenses of the levy, by levy upon all property
and rights to property that belong to the employer or person or that have a
lien created thereon by this subsection for the payment of such
contributions, payments in lieu of contributions or benefit cost payments,
including interest and penalty. As used in this subsection, "property"
includes all real property and personal property, whether tangible or
intangible, except such property that is exempt under K.S.A. 60-2301 et
seq., and amendments thereto. Levy may be made upon the accrued salary
or wages of any officer, employee or elected official of any state or local
governmental entity which is subject to K.S.A. 60-723, and amendments
thereto, by serving a notice of levy as provided in K.S.A. 60-304(d), and
amendments thereto. If the secretary or the secretary's authorized
representative makes a finding that the collection of the amount of such
contributions, payments in lieu of contributions or benefit cost payments,
including interest and penalty, is in jeopardy, notice and demand for
immediate payment of such amount may be made by the secretary or the
secretary's authorized representative. Upon the failure or refusal to pay
such amount, immediate collection of such amount by levy shall be lawful
without regard to the 10-day period provided in this subsection.
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HB 2764 184
(3) Seizure and sale of property. The authority to levy granted under
this subsection includes the power of seizure by any means. A levy shall
extend only to property possessed and obligations existing at the time
thereof. In any case in which the secretary or the secretary's authorized
representative may levy upon property or rights to property, the secretary
or the secretary's authorized representative may seize and sell such
property or rights to property.
(4) Successive seizures. Whenever any property or right to property
that has been levied upon under this subsection is not sufficient to satisfy
the claim of the secretary that the levy was made for, the secretary or the
secretary's authorized representative may proceed thereafter and as often
as may be necessary, to levy in the same manner upon any other property
or rights to property that belongs to the employer or person against whom
such claim exists or upon which a lien is created by this subsection until
the amount due from the employer or person, together with all expenses, is
fully paid.
(f) Warrant. In addition or as an alternative to any other remedy
provided by this section, if no appeal or other proceeding for review
permitted by this law is pending and the time for taking an appeal or other
proceeding for review has expired, the secretary of labor or an authorized
representative of the secretary may issue a warrant certifying the amount
of contributions, payments in lieu of contributions, benefit cost payments,
interest or penalty and the name of the employer liable for such amount
after giving 15 days prior notice. Upon request, service of final notices
shall be made by the sheriff within the sheriff's county, by the sheriff's
deputy or some person specially appointed by the secretary for that
purpose, or by the secretary's designee. A person specially appointed by
the secretary or the secretary's designee to serve final notices may make
service any place in the state. Final notices shall be served as follows:
(1) Individual. Service upon an individual, other than a minor or
incapacitated person, shall be made by delivering a copy of the final notice
to the individual personally or by leaving a copy at such individual's
dwelling house or usual place of abode with some person of suitable age
and discretion then residing therein, by leaving a copy at the business
establishment of the employer with an officer or employee of the
establishment or by delivering a copy to an agent authorized by
appointment or by law to receive service of process. If the agent is
designated by a statute to receive service, such further notice as the statute
requires shall also be given. If service as prescribed above cannot be made
with due diligence, the secretary or the secretary's designee may order
service to be made by leaving a copy of the final notice at the employer's
dwelling house, usual place of abode or business establishment.
(2) Corporations and partnerships. Service upon a domestic or
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HB 2764 185
foreign corporation or upon a partnership or other unincorporated
association, when by law it may be sued as such, shall be made by
delivering a copy of the final notice to an officer, partner or resident
managing or general agent thereof. Delivery shall be accomplished by
leaving a copy at any business office of the employer with the person
having charge thereof or by delivering a copy to any other agent
authorized by appointment or required by law to receive service of
process, if the agent is one authorized by law to receive service. If the law
so requires, a copy shall be mailed to the employer.
(3) Refusal to accept service. In all cases when the person to be
served, or an agent authorized by such person to accept service of petitions
and summonses, refuses to receive copies of the final notice, the offer of
the duly authorized process server to deliver copies thereof and such
refusal shall be sufficient service of such notice.
(4) Proof of service. (A) Every officer to whom a final notice or other
process shall be delivered for service within or without the state, shall
make return thereof in writing stating the time, place and manner of
service and sign such officer's name to such return.
(B) If service of the notice is made by a person appointed by the
secretary or the secretary's designee to make service, such person shall
make an affidavit as to the time, place and manner of service thereof in a
form prescribed by the secretary or the secretary's designee.
(5) Time for return. The officer or other person receiving a final
notice shall make a return of service promptly and shall send such return to
the secretary or the secretary's designee within 10 days after the service is
effected. If the final notice cannot be served it shall be returned to the
secretary or the secretary's designee within 30 days after the date of issue
with a statement of the reason for such failure. The original return shall be
attached to any warrant thereafter filed.
(6) Service by mail. (A) Upon direction of the secretary or the
secretary's designee, service by mail may be effected by forwarding a copy
of the notice to the employer by registered or certified mail to the
employer's address as it appears on the records of the agency. A copy of
the return receipt shall be attached to any warrant thereafter filed.
(B) The secretary of labor or an authorized representative of the
secretary may file the warrant for record in the office of the clerk of the
district court in the county in which the employer owing such
contributions, payments in lieu of contributions, benefit cost payments,
interest or penalty has business property. The warrant shall certify the
amount of contributions, payments in lieu of contributions, benefit cost
payments, interest and penalty due, and the name of the employer liable
for such amount. It shall be the duty of the clerk of the district court to file
such warrant of record and enter the warrant in the records of the district
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HB 2764 186
court for judgment and decrees under the procedure prescribed for filing
transcripts of judgment.
(C) On the day the warrant is filed, the clerk shall enter the case on
the appearance docket with the amount and the time of filing the warrant.
From the time of filing such warrant, the amount of the contributions,
payments in lieu of contributions, benefit cost payments, interest and
penalty, certified therein, shall have the force and effect of a judgment of
the district court until the same is satisfied by the secretary of labor or an
authorized representative or attorney for the secretary. Execution shall be
issuable at the request of the secretary of labor or an authorized
representative or attorney for the secretary as provided in the case of other
judgments.
(D) Postjudgment procedures shall be the same as for judgments
according to the code of civil procedure.
(E) Warrants shall be satisfied of record by payment to the clerk of
the district court of the contributions, payments in lieu of contributions,
benefit cost payments, penalty, interest to date and court costs. Warrants
may also be satisfied of record by payment to the clerk of the district court
of all court costs accrued in the case and by filing a certificate by the
secretary of labor, certifying that such contributions, payments in lieu of
contributions, benefit cost payments, interest and penalty have been paid.
(g) Remedies cumulative. The foregoing remedies shall be cumulative
and no action taken shall be construed as an election on the part of the
state or any of its officers to pursue any remedy or action under this
section to the exclusion of any other remedy or action.
(h) Refunds. If any individual, governmental entity or organization
makes application for refund or adjustment of any amount paid as
contributions, benefit cost payments or interest under this law and the
secretary of labor determines that such amount or any portion thereof was
erroneously collected, except for amounts less than $5, the secretary of
labor shall allow such individual or organization to make an adjustment
thereof, in connection with subsequent contribution payments. If such
adjustment cannot be made the secretary of labor shall refund the amount,
except for amounts less than $5, from the employment security fund,
except that all interest erroneously collected which has been paid into the
special employment security fund shall be refunded out of the special
employment security fund. No adjustment or refund shall be allowed with
respect to a payment as contributions, benefit cost payments or interest
unless an application therefor is made by the individual, governmental
entity or organization or the adjustment or refund is made on the initiative
of the secretary on or before whichever of the following dates is later: (1)
One year from the date on which such payment was made; or (2) three
years from the last day of the period with respect to which such payment
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HB 2764 187
was made. The secretary of labor shall not be required to refund any
contributions, payments in lieu of contributions or benefit cost payments
based upon wages paid which have been used as base- period wages in a
determination of a claimant's benefit rights when justifiable and correct
payments have been made to the claimant as the result of such
determination. Interest at the rate prescribed in K.S.A. 79-2968, and
amendments thereto, shall be allowed on a contribution or benefit cost
payment which the secretary has determined was erroneously collected
pursuant to this section.
(i) (1) Cash deposit or bond. If any contributing employer is
delinquent in making payments under the employment security law during
any two quarters of the most recent four-quarter period, the secretary or
the secretary's authorized representative may require such contributing
employer either to deposit cash or to file a bond with sufficient sureties to
guarantee the payment of contributions, penalty and interest owed by such
employer.
(2) The amount of such cash deposit or bond shall be not less than the
largest total amount of contributions, penalty and interest reported by the
employer in two of the four calendar quarters preceding any delinquency.
Such cash deposit or bond shall be required until the employer has shown
timely filing of such reports and payment of contributions for four
consecutive calendar quarters.
(3) Failure to file such cash deposit or bond shall subject the
employer to a surcharge of 2.0% which shall be in addition to the rate of
contributions assigned to the employer under K.S.A. 44-710a, and
amendments thereto. Contributions paid as a result of this surcharge shall
not be credited to the employer's experience rating account. This surcharge
shall be effective during the next full calendar year after its imposition and
during each full calendar year thereafter until the employer has filed the
required cash deposit or bond or has shown timely filing of reports and
payment of contributions for four consecutive calendar quarters.
(j) Any officer, major stockholder or other person who has charge of
the affairs of an employer that is an employing unit described in section
501(c)(3) of the federal internal revenue code of 1954 or of an employer
that is any other corporate organization or association, or any member or
manager of a limited liability company or any public official, who
willfully fails to pay the amount of contributions, payments in lieu of
contributions or benefit cost payments required to be paid under the
employment security law on the date on which such amount becomes
delinquent, shall be personally liable for the total amount of such
contributions, payments in lieu of contributions or benefit cost payments
and any penalties and interest due and unpaid by such employing unit. The
secretary or the secretary's authorized representative may assess such
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HB 2764 188
person for the total amount of such contributions, payments in lieu of
contributions or benefit cost payments and any penalties and interest
computed as due and owing. With respect to such persons and such
amounts assessed, the secretary may use any of the collection remedies
authorized or provided by this section.
(k) Electronic filing of wage report and contribution return and
electronic payment of contributions, benefit cost payments or reimbursing
payments. The following employers or third- party administrators shall file
all wage reports and contribution returns and make payment of
contributions, benefit cost payments or reimbursing payments
electronically as follows:
(1) Wage reports, contribution returns and payments due after June
30, 2008, for those employers with 250 or more employees or third-party
administrators with 250 or more client employees at the time such filing or
payment is first due;
(2) wage reports, contribution returns and payments due after June
30, 2009, for those employers with 100 or more employees or third-party
administrators with 100 or more client employees at the time such filing or
payment is first due;
(3) wage reports, contribution returns and payments due after June
30, 2010, for those employers with 50 or more employees and for those
third-party administrators with 50 or more client employees at the time
such filing or payment is first due; and
(4) wage reports, contribution returns and payments due after June
30, 2024, for those employers with 25 or more employees and for those
third-party administrators with 25 or more client employees at the time
such filing or payment is first due.
The requirements of this subsection may be waived by the secretary for
an employer if the employer demonstrates a hardship in complying with
this subsection.
(a) Penalties and interest on past-due reports and payments. (1) Any
employer or officer or agent of an employer who fails to file a required
wage report or contribution return by the last day of the month following
the close of each calendar quarter shall be subject to a penalty of 0.05%
of total wages paid by such employer during such quarter, with a minimum
of $25 and a maximum of $200 for each such report or return for each
such month or partial month of delinquency.
(2) Unpaid contributions, benefit cost payments or payments in lieu
of contributions shall accrue interest at a rate of 1% per month or fraction
thereof until paid.
(3) New employers and employers with no prior delinquencies shall
not be liable for penalties or interest if all required reports or payments
are submitted within 10 days of notice to such employers of such required
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HB 2764 189
reports or payments by the secretary.
(4) The secretary may abate penalties or interest upon written request
and a showing of good cause by the employer.
(5) The secretary shall waive amounts of interest less than $5. The
secretary may recommend periodic review by the legislature of such
waiver of interest threshold for the purpose of maintaining equity for small
employers and alignment with inflationary changes.
(6) The secretary shall remit all penalties and interest collected by
the secretary pursuant to this section to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments. Upon receipt of
each such remittance, the state treasurer shall deposit the entire amount in
the state treasury to the credit of the special employment security fund
created by K.S.A. 44-716a, and amendments thereto.
(7) For the purposes of this section, surcharges pursuant to
subsection (i) or K.S.A. 44-710a, and amendments thereto, shall be treated
as contributions.
(8) Wage reports, returns, contributions, payments in lieu of
contribution and benefit cost payments are deemed filed or paid on the
date postmarked or submitted electronically.
(b) Notices to Indian tribes. The secretary shall include with
delinquency notices to Indian tribes or tribal units a notification that
continued failure to pay may:
(1) Subject the tribe to federal unemployment tax act liability;
(2) disqualify the tribe from electing reimbursement status; or
(3) exclude the tribe from the definition of employer or employment
pursuant to K.S.A. 44-703, and amendments thereto.
(c) Collection authority. (1) If any employer defaults in whole or in
part in payment of any penalty, contribution, payment in lieu of
contributions, benefit cost payment or accrued interest following notice of
such payment due, the amount due may be collected by civil action in the
name of the secretary. An employer adjudged in default shall be
responsible for the costs of such action.
(A) Proceedings under this subsection shall take precedence over all
other civil matters on the court's docket, except for actions brought
pursuant to K.S.A. 44-709(i), and amendments thereto, and cases arising
under the workers compensation act, K.S.A. 44-501 et seq., and
amendments thereto.
(B) (i) Except as provided by clause (ii), the secretary shall only
commence an action against a defendant employer pursuant to this
subsection within five years from the due date of such employer's unpaid
or partially unpaid contribution, payment in lieu of contribution or benefit
cost payment.
(ii) the secretary may commence an action pursuant to this
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subsection at any time against a defendant employer that has filed a
fraudulent report with intent to evade liability for an unpaid or partially
unpaid contribution, payment in lieu of contribution, benefit cost payment
or penalties or interest thereon.
(2) (A) Any employing unit that is not a resident of Kansas and
employs individuals to perform services within this state and any resident
employing unit that leaves this state after employing individuals to
perform services within this state shall be deemed to have appointed the
secretary of state as such employing unit's agent for service of process in
any civil action pursuant to this subsection.
(B) Personal service may be made upon such an employing unit by
filing process or notice with the secretary of state. Such filing shall
constitute valid and binding service as though such employing unit was
personally served within the state.
(C) The secretary of labor shall immediately send a copy of the
service and notice filed with the secretary of state through certified or
registered mail, return receipt requested, to the employing unit's last
known address on record with the department.
(3) (A) Proof of service by the secretary to resident employers shall
include:
(i) For mail service, the return receipt, the secretary's affidavit of
compliance with this subsection and a copy of the notice of service
appended to the original process filed with the court; and
(ii) for electronic service, confirmation of receipt may include a
delivery confirmation, read receipt, recipient acknowledgment or secure
system transmission log, unless the employer provides evidence of failure
that materially impaired such employer's opportunity to respond.
(B) Service by certified or registered mail to the employing unit's last
known address of record with the secretary of labor shall be deemed
sufficient notice and valid service, regardless of actual receipt, unless the
employer demonstrates a material error in the address or delivery process
that prejudiced such employer's ability to respond.
(4) Kansas district courts shall have jurisdiction to enforce liabilities
accrued under the employment security law and may also enforce
contributions, payments in lieu of contributions, benefit cost payments,
penalties and interest due under comparable laws of other states or the
federal government pursuant to this subsection.
(d) Priority in dissolution or distribution proceedings. (1) In any
court-ordered distribution of an employer's assets under the laws of this
state, including probate, receivership, interpleader, assignment for the
benefit of creditors, adjudicated insolvency, composition or similar
proceedings, any unpaid contributions, payments in lieu of contributions
or benefit cost payments that are due or become due, shall be paid in full
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from the first available funds in the estate. Such obligations shall have
priority over all other claims, except for wage claims of not more than
$250 per individual for wages earned within six months prior to the
commencement of the proceeding.
(2) In the event of an employer's adjudication in bankruptcy or in a
judicially confirmed extension, proposal or composition proceeding under
federal bankruptcy law, contributions due under this act shall receive the
priority afforded to state taxes under applicable federal bankruptcy law.
(e) Assessments. (1) If an employer fails to file a report or return
required to determine contributions, payments in lieu of contributions or
benefit cost payments, the secretary may prepare the necessary reports
using available information and assess the resulting amounts due,
including applicable penalties or interest.
(2) The secretary shall send a copy of the assessment to the employer
by certified or registered mail to the address on record with the
department. The assessment shall become final unless the employer
protests and submits a corrected report or return for the period in question
within 15 days after the mailing date.
(3) The employer's failure to receive the notice shall not invalidate
the assessment. Written notice is presumed given by the secretary when
deposited in the United States mail, properly addressed to the employer
and sent by certified or registered mail.
(4) (A) When assessment notices or related communications are
delivered electronically, confirmation of receipt may include:
(i) An automated delivery confirmation or read receipt from the
recipient's email or secure account;
(ii) a direct response from the recipient acknowledging receipt; or
(iii) a system-generated log verifying successful transmission to the
employer's designated electronic address.
(B) If no confirmation is returned, proof of successful system delivery
shall constitute presumptive notice unless the employer demonstrates a
transmission failure that impaired such employer's ability to respond.
(f) Liens and levies. (1) If an employer or liable person neglects or
refuses to pay assessed amounts after demand, the total amount due,
including interest, penalties or expenses, may be imposed by the secretary
as a lien established in favor of the secretary on all real and personal
property and rights to property belonging to such employer or liable
person.
(A) Such lien shall become valid upon filing of such lien by the
secretary with the register of deeds in any county where such property is
located.
(B) The register of deeds shall record and index such lien without
requiring prepayment of fees by the secretary. Any such fees shall be
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HB 2764 192
added to the lien total and collected upon satisfaction of the lien.
(C) Such lien shall remain in full force and effect until released by the
secretary by a certificate of discharge.
(2) (A) If payment is not made to the secretary by the employer or
liable person within 10 days after notice and demand, the secretary or the
secretary's authorized representative may levy upon any property or rights
to property of the employer or liable person, including any accrued wages
and salaries, to satisfy the total amount due, including interest, penalties
or costs.
(B) The levy shall not include property exempt pursuant to K.S.A. 60-
2301 et seq., and amendments thereto.
(C) If the secretary determines that immediate collection is necessary
to prevent loss of funds, the 10-day waiting period to levy pursuant to
subparagraph (A) shall not apply.
(3) The authority to levy includes seizure and sale of property by any
lawful means. A levy shall only apply to property possessed or obligations
existing at the time of the levy.
(4) If the initial levy does not fully satisfy the liability of the total
amount due, the secretary or the secretary's authorized representative may
continue to levy on additional property until the total amount due,
including any interest, penalties or costs, is recovered.
(g) Warrants and service of notice. (1) If no appeal or review is
pending and the statutory period for appeal has expired, the secretary or
the secretary's authorized representative may issue a warrant certifying
the total liability amount due, including contributions, payments in lieu of
contributions, benefit cost payments, interest, penalties or costs. At least
15 days' notice shall be given before issuance of such warrant.
(2) (A) Notices may be served by:
(i) A county sheriff or deputy;
(ii) a person appointed by the secretary; or
(iii) a designee of the secretary.
(B) Such appointed person or designee of the secretary may serve
notices anywhere within this state.
(3) Service upon individuals shall be made by:
(A) Delivering a copy to the individual;
(B) leaving a copy at the individual's dwelling with an adult resident
of such dwelling;
(C) leaving a copy at the place of business of the individual or the
individual's employer with an officer or employee of such business or
employer; or
(D) delivering a copy to an authorized agent of the individual.
(4) Service on corporations, partnerships or unincorporated
associations may be made by:
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(A) Delivering a copy to an officer, partner or managing agent;
(B) leaving a copy at the business office with an office manager or an
employee whose duties include receiving hand-delivered mail or courier
deliveries; or
(C) delivering a copy to a legally authorized agent;
(5) If required by law, a copy shall also be mailed in addition to
hand-delivery as described in paragraphs (3) and (4).
(6) If the recipient or authorized agent refuses delivery, the attempt
and refusal shall constitute valid service.
(7) (A) Officers shall submit a written return with time, place and
manner of service.
(B) Appointees or designees of the secretary shall provide an
affidavit in a form prescribed by the secretary.
(8) (A) Returns or affidavits of service shall be submitted to the
secretary within 10 days after the service has been completed.
(B) If service is unsuccessful, the notice shall be returned within 30
days with a statement explaining the failure.
(C) The original return shall be attached to any subsequent warrant.
(9) When directed by the secretary, service may be completed by
registered or certified mail to the employer's address of record. A copy of
the return receipt must be attached to the filed warrant.
(10) Any electronic service or notification under this section shall be
consistent with the requirements of the Kansas administrative procedure
act, including, but not limited to, due process standards set forth in K.S.A.
77-621, and amendments thereto. Proof of service shall include
documentation of transmission and confirmation of receipt where
applicable.
(A) For the purposes of electronic service or notification,
“confirmation of receipt” may include, but is not limited to:
(i) An automated delivery confirmation or read receipt generated by
the recipient's email or secure portal system;
(ii) a response or reply from the recipient acknowledging receipt; or
(iii) a system-generated log or transmission record verifying
successful delivery to the recipient's designated electronic address.
(B) In the absence of actual confirmation, transmission logs or
secure system indicators of completed delivery shall constitute
presumptive evidence of receipt, unless the employer demonstrates a
material error or failure in transmission that prejudiced the opportunity to
respond.
(11) The secretary may file the warrant with the clerk of the district
court in any county where the employer has business property. The
warrant shall state the amount due and the employer's name.
(A) The clerk shall record the warrant as a judgment, entering the
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HB 2764 194
case on the appearance docket with the amount and time of filing.
(B) The liability shall become a judgment of the district court upon
such filing and remain enforceable until satisfied.
(12) (A) Execution shall be issued at the secretary's request pursuant
to law as applicable to other civil judgments.
(B) The Kansas code of civil procedure shall govern post judgment
procedures.
(13) Warrants may be satisfied by:
(A) Payment of all amounts due and court costs to the district court
clerk; or
(B) filing a certificate from the secretary confirming full payment.
(h) Refunds and adjustments. (1) If an individual, governmental
entity or organization applies for a refund or adjustment of contributions,
benefit cost payments or interest and the secretary determines the amount
was erroneously collected, the secretary shall authorize:
(A) An adjustment against future contribution payments; or
(B) a refund, except that, subject to subsection (a)(5), the secretary
shall not issue a refund for amounts less than $5.
(2) Contributions paid as a result of a surcharge under subsection (i)
or K.S.A. 44-710a, and amendments thereto, shall not be eligible for
refund or adjustment unless the surcharge was improperly assessed or the
employer demonstrates the overpayment resulted from administrative
error, rate miscalculation or other error not attributable to the employer.
(3) The secretary shall issue refunds from the:
(A) Employment security fund, if for contributions and benefit cost
payments; or
(B) special employment security fund, if for erroneously collected
interest deposited therein.
(4) The secretary shall not make an adjustment or issue a refund
unless:
(A) The application for such adjustment or refund is made by the
latest date that is:
(i) One year from the payment date; or
(ii) three years from the end of the period to which the payment
applies; or
(B) the secretary initiates such adjustment or refund within such
timeframe.
(5) The secretary shall not refund any amounts based on wages
already applied as base-period wages for a claimant who received
justifiable and accurate benefit payments.
(6) Interest shall be paid on any refunded contributions or benefit
cost payments at the rate set forth in K.S.A. 79-2968, and amendments
thereto.
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(i) Security for delinquent employers. (1) If a contributing employer
is delinquent in two of the most recent four quarters, the secretary of labor
may require the employer to submit a cash deposit or file a surety bond to
guarantee future compliance.
(2) The amount of such deposit or bond shall be equal to the
employer's two highest quarters of reported liability in the preceding four
quarters.
(3) Such requirement shall remain in effect until the employer
demonstrates timely report filing and payment for four consecutive
quarters.
(4) An employer that fails to comply shall be subject to a 2%
surcharge, in addition to the employer's assigned contribution rate. This
surcharge shall:
(A) Not be credited to such employer's experience rating account;
(B) take effect the next following calendar year; and
(C) remain in effect until such employer demonstrates compliance for
four consecutive quarters.
(j) Personal liability of responsible parties. (1) Any officer, major
stockholder, member, manager or responsible party of a corporate
employer, limited liability company, nonprofit organization under 501(c)
(3) or public entity who willfully fails to remit required contributions,
benefit cost payments or reimbursements when due may be held personally
liable for all unpaid amounts, including interest and penalties.
(2) The secretary may assess such liabilities and pursue collection
using any remedies authorized by this section.
(3) (A) No officer, member, manager or public official shall be held
personally liable under this section if the secretary determines that such
individual:
(i) Acted in good faith;
(ii) did not engage in gross negligence or willful misconduct;
(iii) did not directly control or approve the decision leading to the
delinquency; and
(iv) did not knowingly certify, authorize or submit any materially
false wage reports, contribution returns or related filings.
(B) The burden of establishing a safe harbor defense with the
secretary pursuant to paragraph (A) shall rest with the individual
asserting such defense.
(k) Electronic filing and payment requirements. (1) Employers and
third-party administrators with 25 or more employees or client employees
shall electronically file all wage reports and contribution returns and
electronically submit all required payments.
(2) The secretary may waive this requirement upon a showing of
undue hardship.
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(l) Cumulative remedies. All remedies available to the secretary
pursuant to this section shall be nonexclusive and may be cumulative.
Sec. 29. K.S.A. 44-718 is hereby amended to read as follows: 44-718.
(a) Waiver of rights void. No agreement by an individual to waive, release
or commute such individual's rights to benefits or any other rights under
this act shall be valid. No agreement by any individual in the employ of
any person or concern to pay all or any portion of an employer's
contribution or payments in lieu of contributions required under this act
from such employer, shall be valid. No employer shall directly or
indirectly make or require or accept any deduction from remuneration to
finance the employer's contributions required from such employer, or
require or accept any waiver of any right hereunder by any individual in
such employer's employ. Any employer or officer or agent of an employer
who violates any provision of this subsection shall, for each offense, be
fined not less than $100 nor more than $1,000 or be imprisoned for not
more than six months, or both.
(b) Limitation of fees. No individual claiming benefits shall be
charged fees of any kind in any proceeding under this act by the secretary
of labor or representatives of the secretary or by any court or any officer
thereof. Any individual claiming benefits in any proceeding before the
secretary of labor or a court may be represented by counsel or other duly
authorized agent, but no such counsel or agents shall either charge or
receive for such services more than an amount approved by the secretary
of labor. Any person who violates any provision of this subsection shall,
for each such offense, be fined not less than $50 nor more than $500, or
imprisoned for not more than six months, or both.
(c) No assignment of benefits; exemptions. No assignment, pledge or
encumbrance of any right to benefits which are or may become due or
payable under this act shall be valid; and such rights to benefits shall be
exempt from levy, except in accordance with section 6331 of the federal
internal revenue code of 1986, and shall be exempt from, execution,
attachment, or any other remedy whatsoever provided for the collection of
debt; and benefits received by an individual, so long as they are not
mingled with other funds of the recipient, shall be exempt from any
remedy whatsoever for the collection of all debts except debts incurred for
necessaries furnished to such individual or such individual's spouse or
dependents during the time when such individual was unemployed. No
waiver of any exemption provided for in this subsection shall be valid.
(d) Support exception. (1) An individual filing a new claim for
unemployment compensation shall, at the time of filing such claim,
disclose whether or not the individual owes support obligations as defined
under paragraph (7). If any such individual discloses that such individual
owes support obligations, and is determined to be eligible for
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HB 2764 197
unemployment compensation, the secretary shall notify the state or local
support enforcement agency enforcing such obligation that the individual
has been determined to be eligible for unemployment compensation.
(2) The secretary shall deduct and withhold from any unemployment
compensation payable to an individual that owes support obligations as
defined under paragraph (7):
(A) The amount specified by the individual to the secretary to be
deducted and withheld under this subsection, if neither (B) nor (C) is
applicable; or
(B) the amount, if any, determined pursuant to an agreement
submitted to the secretary under section 454(20)(B)(i) of the social
security act by the state or local support enforcement agency, unless
subparagraph (C) is applicable; or
(C) any amount otherwise required to be so deducted and withheld
from such unemployment compensation pursuant to legal process (as that
term is defined in section 459(i) (5) of the social security act) properly
served upon the secretary.
(3) Any amount deducted and withheld under paragraph (2) shall be
paid by the secretary to the appropriate state or local support enforcement
agency.
(4) Any amount deducted and withheld under paragraph (2) shall for
all purposes be treated as if it were paid to the individual as unemployment
compensation and paid by such individual to the state or local support
enforcement agency in satisfaction of the individual's support obligations.
(5) For purposes of paragraphs (1) through (4), "unemployment
compensation" means any compensation payable under the employment
security law after application of the recoupment provisions of subsection
(d) of K.S.A. 44-719, and amendments thereto, (including amounts
payable by the secretary pursuant to an agreement under any federal law
providing for compensation, assistance or allowances with respect to
unemployment).
(6) This subsection applies only if appropriate arrangements have
been made for imbursement by the state or local support enforcement
agency for the administrative costs incurred by the secretary under this
section which are attributable to support obligations being enforced by the
state or local support enforcement agency.
(7) For the purposes of this subsection, "support obligations" means
only those obligations which are being enforced pursuant to a plan
described in section 454 of the federal social security act which has been
approved by the secretary of health and human services under part D of
title IV of the federal social security act.
(8) For the purposes of this subsection, "state or local support
enforcement agency" means any agency of this state or a political
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HB 2764 198
subdivision thereof operating pursuant to a plan described in paragraph
(7).
(e) (1) An individual filing a new claim for unemployment
compensation shall, at the time of filing such claim, be advised that:
(A) Unemployment compensation is subject to federal, state and local
income tax;
(B) requirements exist pertaining to estimated tax payments;
(C) the individual may elect to have federal income tax deducted and
withheld from the individual's payment of unemployment compensation at
the amount specified in the federal internal revenue code;
(D) the individual may elect to have state income tax deducted and
withheld at the rate of 3.5% from the individual's payment of
unemployment compensation; and
(E) the individual shall be permitted to change a previously elected
withholding status.
(2) Amounts deducted and withheld from unemployment
compensation shall remain in the unemployment fund until transferred to
the federal or state taxing authority as a payment of income tax.
(3) The secretary shall follow all procedures specified by the United
States department of labor and the federal internal revenue service
pertaining to the deducting and withholding of income tax.
(4) Amounts shall be deducted and withheld under this section only
after amounts are deducted and withheld for any overpayments of
unemployment compensation, child support obligations, food stamp
overissuances or any other amounts required to be deducted and withheld
under this act.
(f) (1) An individual filing a new claim for unemployment
compensation at the time of filing such claim, shall disclose whether or not
such individual owes an uncollected overissuance (as defined in section
13(c)(1) of the Food Stamp Act of 1977) of food stamp coupons. The
secretary shall notify the state food stamp agency enforcing such
obligation of any individual who discloses that such individual owes an
uncollected overissuance of food stamps and who is determined to be
eligible for unemployment compensation.
(2) The secretary shall deduct and withhold from any unemployment
compensation payable to an individual who owes an uncollected
overissuance:
(A) The amount specified by the individual to the secretary to be
deducted and withheld under this clause;
(B) the amount (if any) determined pursuant to an agreement
submitted to the state food stamp agency under section 13(c)(3)(A) of the
Food Stamp Act of 1977; or
(C) any amount otherwise required to be deducted and withheld from
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HB 2764 199
unemployment compensation pursuant to section 13(c)(3)(B) of such act.
(3) Any amount deducted and withheld under this section shall be
paid by the secretary to the appropriate state food stamp agency.
(4) Any amount deducted and withheld under subsection (b) shall for
all purposes be treated as if it were paid to the individual as unemployment
compensation and paid by such individual to the state food stamp agency
as repayment of the individual's uncollected overissuance.
(5) For purposes of this section, the term "unemployment
compensation" means any compensation payable under this act including
amounts payable by the secretary pursuant to an agreement under any
federal law providing for compensation, assistance, or allowances with
respect to unemployment.
(6) This section applies only if arrangements have been made for
reimbursement by the state food stamp agency for the administrative costs
incurred by the secretary under this section which are attributable to the
repayment of uncollected overissuances to the state food stamp agency. (a)
Waiver of rights prohibited. (1) Any agreement by an individual to waive,
release or commute rights to unemployment compensation or any other
entitlement under the employment security law shall be null and void.
(2) Any agreement requiring an individual to pay all or any portion
of an employer's contributions or payments in lieu of contributions
pursuant to the employment security law shall be null and void.
(3) Employers shall not directly or indirectly take deductions from
employee wages with the intent of funding employer obligations pursuant
to the employment security law, or require or accept any waiver of rights
granted by the employment security law to an employee or claimant by
such employee or claimant.
(4) Any employer or officer or agent of an employer who violates this
subsection shall be guilty of an unclassified nonperson misdemeanor and:
(A) If a first offense, shall be subject to a fine of not less than $100
nor more than $1,000, imprisonment for up to six months or both such fine
and imprisonment; or
(B) if a second or subsequent offense, shall be subject to a fine of not
less than $500 nor more than $5000, imprisonment for up to one year or
both such fine and imprisonment.
(b) Limitation on fees. (1) No individual claiming benefits shall be
charged a fee in any proceeding pursuant to the employment security law
by the secretary, the secretary's representatives or a court.
(2) Claimants may be represented by legal counsel or an authorized
agent, but no such counsel or agent shall charge or accept compensation
for such services in an amount greater than that approved in writing by
the secretary. The secretary shall adopt rules and regulations for the
purpose of establishing a schedule of acceptable compensation for such
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representation and publish such schedule on the official website of the
department.
(3) Any person who violates any provision of this subsection shall be
guilty of an unclassified nonperson misdemeanor and subject to a fine of
not less than $50 nor more than $500, imprisonment for up to six months
or both such fine and imprisonment.
(4) Nothing in this section shall prohibit representation by a
nonprofit legal aid organization or pro bono counsel authorized under
applicable law.
(5) Legal counsel and authorized agents representing a claimant
shall adhere to rules and regulations governing such representation that
may be adopted by the secretary. With respect to legal counsel, any such
rules and regulations shall be in addition to and, in the event of any
conflict, subordinate to any rule of professional conduct or rule of the
Kansas supreme court governing the conduct of attorneys.
(c) Assignment and exemptions. (1) Rights to unemployment benefits
are not assignable and shall not be pledged or encumbered.
(2) Such rights are exempt from levy, execution, attachment or debt
collection remedies, except for federal taxes as authorized by 26 U.S.C. §
6331.
(3) Benefits that are not comingled with other funds shall be exempt
from collection, except for debts incurred for necessities provided to a
claimant or such claimant's dependents during periods of unemployment.
(4) No waiver of rights or exemptions pursuant to this subsection
shall be valid.
(5) For the purposes of this subsection, "necessities" shall include
essential medical, housing or subsistence expenses and be construed in
accordance with relevant Kansas law.
(d) Child support withholding. (1) At the time of filing a new claim,
claimants shall disclose whether they owe child support obligations as
defined in paragraph (7).
(2) If the secretary determines such claimant is eligible for
unemployment benefits, the secretary shall notify the appropriate state or
local child support enforcement agency.
(3) The secretary shall withhold from unemployment benefits the
amount:
(A) Required pursuant to legal process, as defined in 42 U.S.C. §
659(i)(5), that is properly served upon the secretary;
(B) if subparagraph (A) is not applicable, as specified in an
agreement submitted under 42 U.S.C. § 654(20)(B)(i) that is properly
served upon the secretary; or
(C) if subparagraphs (A) and (B) are not applicable, as specified by
the claimant.
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(4) The secretary shall pay the amounts withheld to the appropriate
agency administering or enforcing such child support obligations. Such
payments shall be treated as if paid directly by the claimant in satisfaction
of the claimant's obligations.
(5) The secretary shall adopt rules and regulations for the purpose of
establishing procedures to ensure timely notification to enforcement
agencies and consistent application of withholding obligations in
accordance with applicable federal and state law, including deadlines for
notice and remittance.
(6) The agency administering or enforcing child support obligations
shall reimburse the secretary for administrative costs incurred by the
secretary in implementing this subsection. The secretary and such agency
may enter into a memorandum of understanding for the purpose of
governing implementation of this section and reimbursement to the
secretary of such administrative costs.
(7) As used in this subsection:
(A) "Support obligations" means obligations enforced under a state
plan approved under title IV-D of the federal social security act; and
(B) "unemployment compensation" includes all payments under the
employment security law and federal unemployment programs, after
recoupment pursuant to K.S.A. 44-719(d), and amendments thereto.
(e) Income tax withholding. (1) The secretary shall advise claimants
that:
(A) Unemployment benefits are subject to federal, state and local
income taxes;
(B) estimated tax payment requirements may apply;
(C) claimants may elect federal withholding at the rate specified by
the internal revenue service;
(D) claimants may elect Kansas state income tax withholding at
3.5%; and
(E) claimants may change withholding elections at any time, in
accordance with procedures as established by the secretary.
(2) The secretary shall:
(A) Adopt rules and regulations for the purpose of establishing
procedures for withholding of federal, state and local income taxes as
requested by claimants;
(B) document withholding elections by claimants and the withholding
of unemployment benefits utilizing methods consistent with guidance by
the internal revenue service and the United States department of labor;
(C) retain withheld taxes in the employment security fund until
remitted to the appropriate taxing authority and ensure proper remittance
of such taxes; and
(D) comply with internal revenue service and United States
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department of labor procedures regarding tax withholding.
(3) As permitted by federal law, tax withholding by the secretary
pursuant to this section shall occur after any withholding of
unemployment benefits for child support, overpayments of unemployment
benefits, overissuances of supplemental nutrition assistance program
benefits or other required deductions.
(f) Supplemental nutrition assistance program overissuance recovery.
(1) Claimants shall disclose any uncollected overissuances of
supplemental nutrition assistance program benefits, as defined in 7 U.S.C.
§ 2022(c)(1), at the time of filing a new claim.
(2) If the secretary determines that such claimant is eligible for
unemployment compensation, the secretary shall notify the state food
assistance agency.
(3) The secretary shall deduct and withhold from unemployment
benefits the amount of supplemental nutrition assistance program
overissuance:
(A) Required by legal process pursuant to 7 U.S.C. § 2022(c)(3)(B)
that has been properly served upon the secretary;
(B) if subparagraph (A) is not applicable, as specified pursuant to a
written agreement submitted pursuant to 7 U.S.C. § 2022(c)(3)(A); or
(C) if subparagraph (A) and (B) are not applicable, as specified by
the claimant.
(4) The secretary shall submit benefits withheld pursuant to this
subsection to the state food assistance agency. Such payments shall be
considered as paid directly by the claimant.
(5) The state food assistance agency shall reimburse the secretary for
administrative costs incurred by the secretary in implementing this
subsection. The secretary and such agency may enter into a memorandum
of understanding for the purpose of governing implementation of this
section and reimbursement to the secretary of such administrative costs.
(6) The secretary shall administer withholding for overissuance
recovery pursuant to this subsection in a manner that avoids undue
financial hardship to claimants, including by, when permitted by law,
withholding amounts less than the maximum withholding limitations
established under federal law.
(7) As used in this subsection:
(A) "State food assistance agency" means the state agency
responsible for overissuance recovery of supplemental nutrition assistance
program benefits pursuant to 7 U.S.C. § 2022; and
(B) "unemployment compensation" includes all benefits under this
act and related federal programs.
Sec. 30. K.S.A. 44-719 is hereby amended to read as follows: 44-719.
(a) (1) Except as provided in subsection (a)(2), any person who makes a
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false statement or representation knowing it to be false or knowingly fails
to disclose a material fact, to obtain or increase any benefit or other
payment under this act, either for such person or for any other person, shall
be guilty of theft and shall be punished in accordance with the provisions
of K.S.A. 21-5801, and amendments thereto.
(2) Any violation of subsection (a)(1) shall be a severity level 5,
nonperson felony if such person:
(A) Had no basis to obtain or increase any benefit or other payment
under this act because the person failed to engage in employment as
defined in K.S.A. 44-703, and amendments thereto, and failed to perform
any services for wages within this state not within the meaning of
employment as defined in K.S.A. 44-703, and amendments thereto;
(B) knowingly made the false statement or representation in such a
manner that such statement or representation purports to have been made
by another person, either real or fictitious, and if a real person without the
authority of such person; and
(C) communicated or caused to be communicated a false statement or
representation on three or more occasions within a 30‐day period that
purported to be from different other persons, as provided by paragraph (2)
(B), to the department of labor.
(b) Any employing unit or any officer or agent for any employing
unit or any other person who makes a false statement or representation
knowing it to be false, or who knowingly fails to disclose a material fact,
to prevent or reduce the payment of benefits to any individual entitled
thereto, or to avoid becoming or remaining subject hereto or to avoid or
reduce any contribution or other payment required from an employing unit
under this act, or who willfully fails or refuses to make any such
contributions or other payment or to furnish any reports required
hereunder or to produce or permit the inspection or copying of records as
required hereunder, shall be punished by a fine of not less than $20 nor
more than $200, or by imprisonment for not longer than 60 days, or both
such fine and imprisonment. Each such false statement or representation or
failure to disclose a material fact and each day of such failure or refusal
shall constitute a separate offense.
(c) Any person who willfully violates any provision of this act or any
rule and regulation adopted by the secretary hereunder, the violation of
which is made unlawful or the observance of which is required under the
terms of this act, and for which a penalty is neither prescribed herein or
provided by any other applicable statute, shall be punished by a fine of not
less than $20 nor more than $200, or by imprisonment for not longer than
60 days, or by both such fine and imprisonment, and each day such
violation continues shall be deemed to be a separate offense.
(d) (1) Any person who has received any amount of money as
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benefits under this act while any conditions for the receipt of benefits
imposed by this act were not fulfilled in such person's case, or while such
person was disqualified from receiving benefits, shall in the discretion of
the secretary, either be liable to have such amount of money deducted from
any future benefits payable to such person under this act or shall be liable
to repay to the secretary for the employment security fund an amount of
money equal to the amount so received by such person. After a period of
five years, the secretary may waive the collection of any such amount of
money when the secretary has determined that the payment of such
amount of money was not due to fraud, misrepresentation, or willful
nondisclosure on the part of the person receiving such amount of money,
and the collection thereof would be against equity or would cause extreme
hardship with regard to such person. The collection of benefit
overpayments which were made in the absence of fraud, misrepresentation
or willful nondisclosure of required information on the part of the person
who received such overpayments, may be waived by the secretary at any
time if such person met all eligibility requirements of the employment
security law during the weeks in which the overpayments were made.
(2) Any benefit erroneously paid which is not repaid shall bear
interest at the rate of 1.5% per month or fraction of a month. If the benefit
was received as a result of fraud, misrepresentation or willful
nondisclosure of required information, interest shall accrue from the date
of the final determination of overpayment until repayment plus interest is
received by the secretary. If the overpayment was without fraud,
misrepresentation or willful nondisclosure of required information, interest
shall accrue upon any balance which remains unpaid two years after the
final determination of overpayment is made and shall continue until
payment plus accrued interest is received by the secretary. Interest
collected pursuant to this section shall be paid into the special employment
security fund, except that interest collected on federal administrative
programs shall be returned to the federal government. Upon written
request and for good cause shown, the secretary may abate any interest or
portion thereof provided for by this subsection (d)(2). Interest accrued may
not be paid by money deducted from any future benefits payable to such
persons liable for any overpayment.
(3) Unless collection is waived by the secretary, any such amount
shall be collectible in the manner provided in K.S.A. 44-717, and
amendments thereto, for the collection of past due contributions. The
courts of this state shall in like manner entertain actions to collect amounts
of money erroneously paid as benefits, or unlawfully obtained, for which
liability has accrued under the employment security law of any other state
or of the federal government.
(4) In cases involving the collection of debts arising from the
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HB 2764 205
employment security law, the actual amount received from the United
States department of treasury under the treasury offset program or its
successor shall be credited to the overpayment and any fee charged by the
department of treasury shall be borne by the debtor.
(e) Any employer or person who willfully fails or refuses to pay
contributions, payments in lieu of contributions or benefit cost payments
or attempts in any manner to evade or defeat any such contributions,
payments in lieu of contributions or benefit cost payments or the payment
thereof, shall be liable for the payment of such contributions, payments in
lieu of contributions or benefit cost payments and, in addition to any other
penalties provided by law, shall be liable to pay a penalty equal to the total
amount of the contributions, payments in lieu of contributions or benefit
cost payments evaded or not paid.
(f) (1) It shall be unlawful for an employing unit to knowingly obtain
or attempt to obtain a reduced liability for contributions under K.S.A. 44-
710a(b)(1), and amendments thereto, through manipulation of the
employer's workforce, or for an employing unit that is not an employing
unit at the time it acquires the trade or business, to knowingly obtain or
attempt to obtain a reduced liability for contributions under K.S.A. 44-
710a(b)(5), and amendments thereto, or any other provision of K.S.A. 44-
710a, and amendments thereto, related to determining the assignment of a
contribution rate, when the sole or primary purpose of the business
acquisition was for the purpose of obtaining a lower rate of contributions,
or for a person to knowingly advise an employing unit in such a way that
results in such a violation, such employing unit or person shall be subject
to the following penalties:
(A) If the person is an employer, then such employer shall be
assigned the highest rate assignable under K.S.A. 44-710a, and
amendments thereto, for the rate year during which such violation or
attempted violation occurred and the three rate years immediately
following this rate year. However, if the employer's business is already at
such highest rate for any year, or if the amount of increase in the
employer's rate would be less than 2% for such year, then a penalty rate of
contributions of 2% of taxable wages shall be imposed for such year. Any
moneys resulting from the difference of the computed rate and the penalty
rate shall be remitted to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of
each such remittance, the state treasurer shall deposit the entire amount in
the state treasury to the credit of the special employment security fund.
(B) If the person is not an employer, such person shall be subject to a
civil money penalty of not more than $5,000. All fines assessed and
collected under this section shall be remitted to the state treasurer in
accordance with the provisions of K.S.A. 75-4215, and amendments
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HB 2764 206
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the special
employment security fund.
(2) For purposes of this subsection, the term "knowingly" means
having actual knowledge of or acting with deliberate ignorance or reckless
disregard for the prohibition involved.
(3) For purposes of this subsection, the term "violates or attempts to
violate" includes, but is not limited to, any intent to evade,
misrepresentation or willful nondisclosure.
(4) (A) In addition to, or in lieu of, any civil penalty imposed by
paragraph (1) if, the director of employment security or a special assistant
attorney general assigned to the department of labor, has probable cause to
believe that a violation of this subsection (f) should be prosecuted as a
crime, a copy of any order, all investigative reports and any evidence in the
possession of the division of employment security which relates to such
violation, may be forwarded to the prosecuting attorney in the county in
which the act or any of the acts were performed which constitute a
violation of this subsection (f). Any case which a county or district
attorney fails to prosecute within 90 days shall be returned promptly to the
director of employment security. The special assistant attorney general
assigned to the Kansas department of labor shall then notify the attorney
general and if, in the opinion of the attorney general, the acts or practices
involved warrant prosecution, the attorney general shall prosecute the case.
(B) Violation of this subsection (f) shall be a level 9, nonperson
felony.
(5) The secretary shall establish procedures to identify the transfer or
acquisition of a business for purposes of this section.
(6) For purposes of subsection (f):
(A) "Person" has the meaning given such term by section 7701(a)(1)
of the internal revenue code of 1986;
(B) "trade or business" shall include the employer's workforce; and
(C) the provisions of K.S.A. 21-5211 and 21-5212, and amendments
thereto, shall apply.
(7) This subsection (f) shall be interpreted and applied in such a
manner as to meet the minimum requirements contained in any guidance
or regulation issued by the United States department of labor.(a)
Fraudulent claims for benefits. (1) Any individual who, with intent to
obtain or increase unemployment benefits pursuant to the employment
security law for themself or another, knowingly makes a false statement,
misrepresents a fact or fails to disclose a material fact shall be guilty of
theft and penalized in accordance with K.S.A. 21-5801, and amendments
thereto.
(2) Such violation shall constitute a severity level 5, nonperson felony
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HB 2764 207
if the individual:
(A) Had no employment as defined in K.S.A. 44-703, and
amendments thereto, during the claim period, and performed no services
for wages;
(B) Knowingly impersonated or falsely represented another person,
real or fictitious, without authorization; and
(C) Transmitted three or more false claims within a 30-day period,
each purporting to originate from a different person as described in
subparagraph (B).
(b) Employer fraud or misrepresentation . (1) Any employer, officer,
agent or individual who knowingly makes a false statement, fails to
disclose a material fact or misrepresents a material fact to avoid benefit
charges, contributions or employer status pursuant to the employment
security law shall be guilty of a class B misdemeanor, subject to a fine of
up to $1,000 or imprisonment for not more than six months, or both.
(2) Each false statement, material omission or day of continued
violation shall constitute a separate offense. The secretary may adopt
rules and regulations to establish a graduated penalty schedule for repeat
or egregious violations.
(c) General violations without specific penalty. (1) Any person
willfully violating the provisions of the employment security law or the
rules and regulations adopted by the secretary, if no penalty is otherwise
specified, shall be guilty of a misdemeanor and subject to:
(A) A fine not less than $20 nor more than $200;
(B) imprisonment for up to 60 days; or
(C) both such fine and imprisonment.
(2) Each day of a continuing violation shall constitute a separate
offense.
(d) Recovery and repayment of improper benefits . (1) If a person
received benefits under the employment security law when disqualified for
such benefits or when eligibility requirements for such benefits were not
met, the secretary may:
(A) Deduct the overpaid amount from such person's future benefits;
or
(B) require repayment of the overpaid amount by such person to the
employment security fund.
(2) The secretary may waive such repayment or a portion of such
repayment if:
(A) Five years have passed since the final determination of such
overpayment;
(B) no fraud, misrepresentation or willful nondisclosure by such
person has occurred; and
(C) recovery would cause undue hardship or offend equity principles.
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HB 2764 208
(3) The secretary may authorize repayment through an installment
plan for overpayments not due to fraud if such an arrangement would
mitigate financial hardship and facilitate recovery. The secretary shall
adopt rules and regulations to establish the terms of such repayment
agreements.
(4) The secretary may waive overpayments not due to fraud at any
time if the claimant met all eligibility criteria during the affected weeks.
(5) (A) Interest on overpayments shall:
(i) Be 1.5% per month or portion thereof;
(ii) for overpayments due to fraud, begin to accrue on the date of the
final determination;
(iii) for overpayment due to fraud, begin to accrue two years after the
date of the final determination; and
(iv) for overpayments not due to fraud, total accrued interest shall
not exceed 50% of the original overpaid amount, unless an exception for
extraordinary circumstances is authorized pursuant to rules and
regulations adopted by the secretary; and
(B) accrued interest shall not be deducted from future benefits.
(6) The secretary may abate accrued interest upon written request for
good cause shown.
(7) The secretary may recover unpaid benefits pursuant to the
provisions of K.S.A. 44-717, and amendments thereto.
(8) The secretary may bring an action in any Kansas court of
competent jurisdiction to enforce recovery of benefits improperly obtained
pursuant to the employment security law or improperly obtained benefits
owed to other states or the federal government.
(9) Treasury offset program collections shall be applied to a
claimant's overpayment balance. Federal processing fees shall be the
responsibility of such claimant.
(10) (A) If a claimant or employer voluntarily self-reports an
overpayment, erroneous claim or misclassification prior to audit or
enforcement action, the secretary may reduce or waive applicable
penalties or interest, subject to the provisions of subparagraph (B).
(B) If the secretary subsequently establishes fraud or willful
misrepresentation has occurred with respect to such overpayment,
erroneous claim or misclassification, the secretary shall reimpose such
applicable penalties or interest.
(11) For the purposes of this subsection, "final determination" means
the date on which a written notice of overpayment is issued by the
secretary and becomes final, either through exhaustion or expiration of all
administrative appeals.
(e) Employer failure to pay or evade contributions . Any employer or
individual who willfully fails to pay or attempts to evade required
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HB 2764 209
contributions, payments in lieu of contributions or benefit cost payments
shall be:
(1) Liable for full payment of the amount owed; and
(2) assessed a penalty equal to such amount.
(f) Employer rate manipulation and fraudulent transfers . (1) It shall
be unlawful for any employing unit to knowingly manipulate its workforce,
acquire a business or fail to report the acquisition, transfer or merger of a
business, including the workforce of such business, with the intent or effect
of obtaining a reduced contribution rate pursuant to K.S.A. 44-710a, and
amendments thereto.
(2) It shall be unlawful for any person to knowingly advise, assist or
facilitate such conduct.
(g) Penalties. (1) An employing unit that violates the provisions of
subparagraph (1)(A) shall be assigned:
(A) The maximum contribution rate for the current and subsequent
three rate years; or
(B) a flat 2% penalty rate, if such employing unit is already at the
maximum contribution rate or an increase from such employer's
contribution rate to the maximum contribution rate would be less than 2%.
(2) A person who is not an employing unit who violates the provisions
of subparagraph (1)(B) shall be subject to a civil penalty of up to $5000.
(3) Penalty payments shall be credited to the special employment
security fund.
(h) Definitions. For the purposes of this subsection:
(1) "Employing unit" means the same as defined in K.S.A. 44-703,
and amendments thereto;
(2) "knowingly" means having actual knowledge or acting with
deliberate ignorance or reckless disregard;
(3) "person" means an individual, trust, estate, partnership,
association, company or corporation; and
(4) "business" includes the employing unit's workforce.
(i) Prosecution. (1) If the director of employment security or the
special assistant attorney general assigned to the department of labor
determines that there is probable cause that a violation of this subsection
has occurred, the director or special assistant attorney general may refer
the case to the county prosecutor with jurisdiction.
(2) If such county prosecutor does not initiate prosecution of such
case within 90 days, the case shall be returned to the director of
employment security or the special assistant attorney general and shall be
referred to the attorney general for prosecution. Upon such referral, the
attorney general or the attorney general's designee shall prosecute the
case.
(3) A violation of this subsection shall constitute a level 9, nonperson
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HB 2764 210
felony.
(4) The secretary shall adopt rules and regulations for the purpose of
establishing procedures to identify and investigate contribution rate
manipulation.
(5) K.S.A. 21-5211 and 21-5212, and amendments thereto, pertaining
to criminal liability of corporations and individuals, shall apply to
violations of this section.
(6) This section shall be interpreted in conformity with guidance and
regulations issued by the United States department of labor to ensure
federal compliance of the employment security law.
Sec. 31. K.S.A. 44-720 is hereby amended to read as follows: 44-720.
(a) In Civil actions. (1) In any civil action involving proceeding arising
pursuant to the provisions of this act the employment security law , the
secretary of labor and the state:
(A) May be represented by any qualified an attorney employed by the
secretary who is an employee of the secretary of labor and designated
authorized in writing by the secretary for this purpose to represent the
secretary and the state in accordance with K.S.A. 75-704, and at the
secretary's amendments thereto; or
(B) upon request by the secretary and as provided by law, shall be
represented by the attorney general; or the attorney general's designee.
(2) If the action is brought filed in another state, representation may
be by any attorney authorized to practice in the courts of any other state
by any attorney qualified to appear in the courts of that state such
jurisdiction.
(b) In Criminal actions. (1) The attorney general shall prosecute all
criminal actions for any criminal violation of any provision of this act, the
employment security law or of any rules or regulations issued pursuant
thereto, shall be prosecuted by the attorney general of the state; or, at the
secretary's adopted thereunder; or
(2) upon request and under the by the secretary and pursuant to the
secretary's direction, by the district attorney or county attorney of any in
the county in which the offense was committed in which such criminal
violation occurred shall prosecute such criminal action.
(c) Interstate and federal enforcement. The secretary may cooperate
with out-of-state and federal prosecutors in pursuing a violation of the
employment security law that involves fraud in multiple jurisdictions,
overpayments or employer misconduct, subject to applicable state and
federal law.
Sec. 32. K.S.A. 44-721 is hereby amended to read as follows: 44-721.
Benefits shall be deemed to be due and payable under this act only to the
extent provided in this act and to the extent that moneys are available
therefor to the credit of the employment security fund and neither the state
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nor the secretary of labor shall be liable for any amount in excess of such
sums.(a) Limitation on benefit obligations. Unemployment benefits shall
be considered due and payable under the employment security law only as
expressly authorized by such law and to the extent that funds are available
to the credit of the employment security fund established pursuant to
K.S.A. 44-712, and amendments thereto.
(b) No general fund liability. Neither the state of Kansas nor the
secretary shall be liable for the payment of any benefits in excess of the
moneys available in the employment security fund.
(c) No vested right beyond available funds. Claimants shall not have
a vested right or legal claim to any amount of benefits beyond the amounts
payable from available funds credited to the employment security fund at
the time such benefits become due.
(d) Federal and state law conformity. This section shall be
interpreted and applied in conformity with K.S.A. 44-712 and 44-714, and
amendments thereto, 42 U.S.C. § 503(a)(5) and any regulations
promulgated by the United States department of labor to ensure continued
federal certification of the state's unemployment insurance program.
Sec. 33. K.S.A. 44-722 is hereby amended to read as follows: 44-722.
The legislature reserves the right to amend or repeal all or any part of this
act at any time; and there shall be no vested private right of any kind
against such amendment or repeal. All the rights, privileges, or immunities
conferred by this act or by acts done pursuant thereto shall exist subject to
the power of the legislature to amend or repeal this act at any time. (a) No
individual, entity or organization shall acquire a vested private right,
entitlement or interest that limits or restricts the legislature's authority to
amend or repeal the employment security law, in whole or in part.
(b) All rights, benefits, privileges or immunities pursuant to the
employment security law or arising from actions taken pursuant to such
law shall remain subject to the legislature's continuing authority to amend
or repeal such law.
(c) This section shall be construed in accordance with the Kansas
constitution and applicable judicial precedent recognizing the legislature's
authority over statutory entitlements.
Sec. 34. K.S.A. 44-723 is hereby amended to read as follows: 44-723.
If the tax imposed by title IX of the federal social security act (Public No.
271, seventy-fourth congress, approved August 14, 1935)*, or by any
amendments thereto, or any other federal tax against which contributions
under this act may be credited has been repealed by congress or has been
held unconstitutional by the United States supreme court, the payment of
contributions and benefits under this act shall cease, and any unobligated
funds in the state employment security fund and in the United States
unemployment trust fund returned by the treasurer of the United States
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because title IX* of the social security act is inoperative, shall be refunded
to contributors in proportion to their contributions.(a) Federal tax
dependency. The operation of the employment security law shall be
contingent upon the existence of a federal unemployment tax, including,
but not limited to, the tax imposed under title IX of the federal social
security act, 42 U.S.C. § 1101 et seq., as amended, or any other federal
tax against which contributions made pursuant to the employment security
law may be credited.
(b) Termination of state program. If such federal tax is repealed by
the United States congress or declared unconstitutional by the United
States supreme court, the obligation to pay unemployment insurance
contributions and benefits pursuant to the employment security law shall
be suspended immediately.
(c) Disposition of unobligated funds. In the event of such federal
repeal or invalidation as described in subsection (b) and to the extent that
unobligated funds from the employment security fund or amounts returned
from the federal unemployment trust fund are made available to the state:
(1) Such funds shall be refunded to contributing employers in
proportion to such employers' prior contributions; and
(2) the secretary shall establish by rules and regulations the
procedures and timeline for issuing refunds, consistent with federal
guidance.
(d) Preservation of state authority. Nothing in this section shall be
construed to prohibit the Kansas legislature from establishing an
alternative unemployment benefit program or financing mechanism if the
federal-state system, including, but not limited to, the existence of a
federal unemployment tax, is modified or discontinued.
(e) Conformity and implementation. This section shall be interpreted
and applied by the secretary in conformity with federal law and
regulations issued by the United States department of labor, including any
applicable guidance under the social security act or the federal
unemployment tax act, to ensure proper administration of refunds and
continued eligibility for federal unemployment program certification.
Sec. 35. K.S.A. 44-724 is hereby amended to read as follows: 44-724.
(a) Severability. If any provision of this act, or the employment security
law or its application thereof to any person or circumstance , is held found
to be invalid , the remainder by a court of this act and competent
jurisdiction, such invalidity shall not affect the validity of the remaining
provisions or their application of such provision to other persons or
circumstances shall not be affected thereby. No caption of any section or
set of sections.
(b) Captions not controlling. Section headings and captions used in
the employment security law are for reference and organizational
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purposes only and shall in any way not be construed to affect the meaning,
interpretation of this act or any part thereof or application of any provision
of the employment security law.
Sec. 36. K.S.A. 44-725 is hereby amended to read as follows: 44-725.
(a) Any contributions and payments in lieu of contributions paid by the an
employer pursuant to the employment security law shall be deductible in
arriving at computing the employer's taxable income of such employer
under pursuant to the Kansas income tax laws of the state of Kansas, act.
(b) Such deductions shall apply to the same extent as taxes are
deductible during any taxable year by any such employer.
(c) This section shall be construed in accordance with the Kansas
income tax act.
Sec. 37. K.S.A. 44-727 is hereby amended to read as follows: 44-727.
(a) Authority to acquire title. The state of Kansas is hereby authorized to
receive may acquire and accept title to real property which may be
acquired under rental purchase obtained through rental-purchase
agreements executed or to be executed by the secretary in of labor for
purposes related to the administration of the employment security law.
(b) Funding source and appropriations. Such property shall may be
acquired without appropriation by the state of Kansas and legislature if the
purchase cost thereof shall be defrayed is fully funded by federal funds
made available allocated for the administration of the employment security
law. Sufficiency of title to any property acquired hereunder shall be
approved by the attorney general
(c) Title review and conveyance. Prior to such acquisition of such
property and conveyance to the state by general warranty deed to, the state
attorney general shall review and approve the sufficiency of Kansas. Any
title.
(d) Use and occupancy. Property acquired under authority hereof
pursuant to this section shall be utilized used primarily for the
administration of the employment security law by the secretary of labor.
After acquisition. Once acquired, such property may be occupied used for
administration of the employment security law at no such administrative
purposes without cost to the state other than routine maintenance.
(e) Federal and state compliance. All acquisitions, use and
disposition of property pursuant to this section shall comply with
applicable:
(1) Federal funding and property management requirements,
including requirements set forth in 2 C.F .R. part 200 or, upon review by
the secretary, any successor requirements;
(2) state procurement and real property management laws; and
(3) federal property disposition requirements in effect at the time of
any disposition, upon review of such requirements by the secretary.
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Sec. 38. K.S.A. 2025 Supp. 44-757 is hereby amended to read as
follows: 44-757. Shared work unemployment compensation program. (a)
Definitions. As used in this section:
(1) "Affected unit" means a specified department, shift or other unit
group of two or more employees that is designated by an employer to
participate in a shared work plan.
(2) "Fringe benefit" means includes employer-provided benefits, such
as health insurance, a retirement benefit received under a pension plan, a
contributions, paid vacation day, a paid holiday , holidays, sick leave , and
any other analogous employee benefit that is provided by an employer and
similar benefits.
(3) "Fund" has the meaning ascribed thereto by means the same as
defined in K.S.A. 44-703(k), and amendments thereto.
(4) "Normal weekly hours of work" means the lesser of 40 hours or
the average obtained by dividing the total number of hours worked per
week during the preceding twelve-week 12-week period by the number 12.
(5) "Participating employee" means an employee who works a
working reduced number of hours under a an employer-initiated shared
work plan initiated by their employer and approved by the secretary.
(6) "Participating employer" means an employer who has applied to
and been with an approved by the secretary for a shared work plan that is
in effect.
(7) "Secretary" means the secretary of labor or the secretary's
designee.
(8) "Shared work benefit" means an a prorated unemployment
compensation benefit that is payable paid to an individual employee in an
affected unit because the individual works with reduced hours under an
approved shared work plan.
(9) "Shared work plan" means a written proposal submitted by an
employer and approved by the secretary pursuant to this section outlining
a temporary reduction in work hours as part of the state's short-term
compensation program established in subsection (b).
(10) "Short-term compensation program" means a shared work plan
program designed to provide an alternative to avoid layoffs for employers
experiencing a reduction in available work. A "short-term compensation
program" preserves employees' jobs and an employer's trained workforce
during times of lowered economic activity by allowing an employer
employers to reduce employee hours of work for while employees rather
than laying off some employees while others continue to work full time.
Under a "short-term compensation program," employees experiencing a
reduction in hours are allowed to collect a pro-rata share of their
unemployment compensation benefits to replace a portion of the
employee's lost wages receive partial unemployment benefits.
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(b) Program establishment. The secretary shall establish administer a
voluntary short-term compensation program as provided by this section.
The secretary may adopt rules and regulations and establish procedures as
necessary to administer implement the short-term compensation program
provisions of this section.
(c) Program promotion. The secretary shall create and manage
implement an annual promotional outreach campaign for the short-term
compensation program to encourage and improve business increase
employer awareness and participation. The promotional At a minimum, the
campaign shall include the following elements:
(A)(1) Engagement in proactive educational
communicationsCollaboration with other state agencies and stakeholders,
including the governor's office, legislators such as state agencies ,
workforce investment boards, labor unions and local, regional business
associations;
(2) a designated liaison or state chambers of commerce support team
for employer inquiries;
(B) a dedicated department of labor employee or team to efficiently
and timely answer employer's questions about the short-term
compensation program;
(C)(3) presentationstandardized educational materials that provide
consistency of messaging about the benefits of using a short-term
compensation program to provide for stakeholders for distribution to
employer groups, workforce investment boards or other interested parties
and employers;
(D)(4) proactive engagement with employers experiencing facing
economic stress or layoffs to share the benefits of the short-term
compensation program and to ensure such employers are aware of the
program hardship; and
(E)(5) an automated processes for application, claims and weekly
certification process for participating employers designed to facilitate
participation, to reduce an employer's administrative burden and promote
the use of the short-term compensation program.
(d) An employer who wishes Employer application and
responsibilities. To participate in the short-term compensation program
must program, an employer shall meet the requirements of paragraphs (1)
through (5), as determined by the secretary, and submit a written shared
work plan to the secretary for the secretary's approval. As a condition for
approval, a participating employer must agree to furnish the secretary with
reports relating to the operation of the shared work plan as requested by
the secretary. The employer shall monitor and evaluate the operation of the
established shared work plan as requested by the secretary and shall report
the findings to the secretary. that meets the requirements of subsection (e).
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The secretary shall determine whether the employer:
(e) The secretary may approve a shared work plan if:
(1) The shared work plan applies to and identifies a specific affected
unit;
(2) the employees in the affected unit are identified by name and
social security number;
(3) the shared work plan reduces the normal weekly hours of work
for an employee, including regular part-time employees, in the affected
unit by not less than 10% and not more than 50%;
(4) the shared work plan applies to at least 10% of the employees in
the affected unit;
(5) the shared work plan describes the manner that the participating
employer treats the fringe benefits of each employee in the affected unit
and the employer certifies that if the employer provides health benefits and
retirement benefits under a defined benefit plan, as defined in 26 U.S.C. §
414(j), or contributions under a defined contribution plan, as defined in 26
U.S.C. § 414(i), to any employee whose workweek is reduced under the
program that such benefits will continue to be provided to employees
participating in the short-term compensation program under the same
terms and conditions as though the workweek of such employee had not
been reduced or to the same extent as other employees not participating in
the short-term compensation program;
(6) the employer certifies that the implementation of a shared work
plan and the resulting reduction in work hours is in lieu of layoffs that
would affect at least 10% of the employees in the affected unit and that
would result in an equivalent reduction in work hours;
(7)(1) the employer has filed Is current on all reports required reports
and payments pursuant to be filed under the employment security law for
all past and current periods and has paid all contributions, benefit cost
payments, or if a reimbursing employer has made all payments in lieu of
contributions due for all past and current periods;
(8) (A) (2) if a contributing employer must be , is eligible for a rate
computation under pursuant to K.S.A. 44-710a (a)(2)(c), and amendments
thereto, and the contributing employer, as determined by the secretary,
does not adversely impact the state's eligibility under. In addition, if
section 2108 of the federal coronavirus aid, relief and economic security
(CARES) act, public law 116-136, is in effect, the employer will not
adversely impact the state's conformity or eligibility for federal funds
under such act by participating in the program;
(B)(3) if a contributing employer with a negative account balance as
defined in K.S.A. 44-703, and amendments thereto, and section 2108 of the
federal CARES act, public law 116-136, is no longer in effect, a
contributing employer eligible for a rate computation under K.S.A. 44-
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710(a)(2), and amendments thereto, that is a negative account employer as
defined by K.S.A. 44-710a(d), and amendments thereto, may only be
approved for a shared work application if the negative account employer's
has improved the employer's most recent calculated reserve ratio has
improved from as compared to the previous reporting year's reserve ratio;
(C)(4) if a rated governmental employer must be subject to
experience rating, is eligible for a rate computation under pursuant to
K.S.A. 44-710d(g), and amendments thereto; and
(9)(5) has agreed to:
(A) Provide reports on plan operation as required by the secretary;
and
(B) monitor, evaluate and report on program effectiveness as directed
by the secretary.
(e) Plan approval requirements. A shared work plan submitted to the
secretary by an employer who meets the requirements of subsection (d)
may be approved by the secretary if the plan:
(1) Identifies a specific affected unit;
(2) lists participating employees by name and social security
number;
(3) reduces normal weekly hours by 10% to 50% for each employee,
including any part-time employee;
(4) covers at least 10% of the affected unit;
(5) maintains health and retirement benefits at prereduction levels or
provides benefits that are equal to those offered to similarly situated full-
time employees not participating in the shared work plan;
(6) is in lieu of layoffs that would affect at least 10% of such unit;
(7) complies with all applicable contribution, rating and federal
conformity provisions;
(8) provides that eligible employees may participate , as appropriate,
in training programs that enhance job skills , including without limitation ,
but not limited to , employer-sponsored training or worker training and
workforce development programs funded under the workforce investment
act of 1998, to enhance job skills if innovation and opportunity act, public
law 113-128, or any successor legislation upon review of such program
has been approved legislation by the state of Kansas;
(10) the employer includes a plan for giving advance notice, where
feasible, to an employee whose workweek is to be reduced together with
an estimate of the number of layoffs that would have occurred absent the
ability to participate in shared work compensation and such other
information as the secretary of labor determines is appropriate; and
(11) the terms of the employer's written plan and implementation are .
Participation in such training shall be consistent with employer
obligations under the requirments of this section and subsection (1) and
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approved by the secretary or the designated workforce development
authority of this state. Training may occur during periods of reduced
hours under the shared work plan without affecting the individual's
eligibility for shared work benefits;
(9) includes a plan to provide notice to affected employees and an
estimate of layoffs avoided; and
(10) complies with all applicable federal and Kansas state labor laws.
(f) Collective bargaining units. If any of the participating employees
who participate in a shared work plan under this section are covered by a
collective bargaining agreement, the shared work plan must shall be
approved in writing by the collective bargaining agent union
representative and such approval provided to the secretary by the union
representative.
(g) AProhibited use. Shared work plan may plans shall not be
implemented used to subsidize seasonal employers employment during the
off season off-season periods. This provision prohibition shall not be
construed to apply to a shared work plan implemented for school bus
drivers pursuant to K.S.A. 44-706(p), and amendments thereto.
(h) The secretary shall approve or deny a shared work plan not later
than the 30 th day after the day the shared work plan is received by the
secretary.Plan review timeline. The secretary shall approve or deny a
shared work plan in writing. If the secretary denies a shared work plan, the
secretary shall within 30 days of submission and notify the employer in
writing of the decision and any reasons for the denial.
(i) Effective and expiration dates. A shared work plan is shall become
effective on the date it such plan is approved by the secretary , except for
good cause a shared work plan may be . The secretary may designate a
retroactive effective at any time within a period date of not more than 14
days prior to the actual date such of completed review and approval of the
plan is approved by the secretary. The shared work A shared work plan
expires on the last day of the 12 th shall expire 12 full calendar month
months after the effective date of the shared work plan.
(j) Plan modifications. (1) An employer may modify a an approved
shared work plan created under this section to meet address changed
operational conditions if, provided the modification conforms to remains
consistent with the basic provisions fundamental terms of the shared work
original plan as approved by the secretary. The employer must shall report
the changes made to the shared work plan all modifications in writing to
the secretary before implementing the changes. If the original shared work
plan is prior to the implementation of such modifications.
(2) If the secretary determines that such modifications are
substantial, the shared work plan shall be subject to reevaluation and
approval by the secretary pusuant to the criteria of subsection (e). A
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substantially modified, the secretary shall reevaluate the shared work plan
and may approve the shared work plan may be approved by the secretary
if it continues to meet all applicable requirements for approval pursuant to
this section. Approval of a modified shared work plan if it meets the
requirements for approval under subsection (d). The approval of a
modified shared work plan does not affect the by the secretary shall not
extend or alter such plan's original expiration date originally set for. If the
secretary determines that shared work plan. If substantial the
modifications cause the shared work such plan to fail to no longer meet the
statutory requirements for approval, the secretary shall deny approval to of
the modifications as provided by in accordance with the procedures set
forth in subsection (g) (h).
(k) Eligibility for shared work benefits. (1) Notwithstanding any other
provisions of the employment security law, an individual is shall be
considered unemployed and is eligible for to receive shared work benefits
in for any week in which the individual, as an a participating employee in
an affected unit, works for less fewer hours than the individual's normal
weekly hours of work in accordance with an approved shared work plan
that is in effect for that such week.
(2) The secretary may shall not deny shared work benefits for any
week to an otherwise eligible individual by reason of the application of for
any provision such week based on provisions of the employment security
law that relates related to:
(A) Availability for work,;
(B) active search for work; or
(C) refusal to apply for or accept work with an employer other than
the participating employer.
(l) Eligibility criteria. An individual employee is eligible to receive
shared work benefits with respect to for any week in which the secretary
finds that employee:
(1) The employee is determined to be eligible Meets requirements of
eligibility for unemployment compensation, except that while receiving
shared work benefits, an employee shall not be required to meet work
availability or work excluding job search requirements but shall be
required to be available for the employee's normal work week;
(2) the individual is employed as a member of an affected unit subject
to a shared work plan that was approved before the week in question and is
in effect for that is covered by an approved shared work plan during the
week claimed;
(3) the individual is able to work and is available for additional hours
of work or full-time work with the participating employer;
(4) the individual's normal weekly has had hours of work have been
reduced by at least 10% but not more than to 50%, with a corresponding
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reduction in wages wage loss; and
(5) the individual's normal weekly hours of work and wages have
been reduced as described in subsection (k)(4) for a waiting period of one
week that occurs within the period the shared work plan is in effect, which
period includes the week for which the individual is claiming shared work
benefitshas served a one-week waiting period during the plan's active
period.
(m) Benefit amounts. (1) The secretary shall pay an individual who is
eligible for shared work benefits under this section a weekly shared work
benefit amount equal to the individual's shall be calculated by multiplying
the individual's regular weekly benefit amount for a period of total
unemployment multiplied by the nearest full by the percentage of
reduction of the individual's in hours as set forth in under the employer's
shared work plan. If the, rounded down to the nearest whole dollar.
(2) Weekly shared benefit amount is not a multiple of $1, the secretary
work benefits shall reduce the amount to the next lowest multiple of $1.
All shared work benefits under this section shall be payable be paid from
the employment security trust fund.
(n) An individual may not receiveCombined benefit limit. Shared
work benefits and regular unemployment compensation benefits in an
amount that exceeds combined shall not exceed the maximum total amount
of unemployment insurance benefits payable to that an individual allowed
in a benefit year as provided by pursuant to K.S.A. 44-704(g), and
amendments thereto.
(o) Extended benefits eligibility. An individual who has received all
of the exhausts both regular and shared work benefits and regular
unemployment compensation may qualify for extended benefits available
in a benefit year is an exhaustee under pursuant to K.S.A. 44-704a and 44-
704b, and amendments thereto, and is entitled to receive extended benefits
under such statutes if the individual is if otherwise eligible under such
statutes.
(p) Plan termination. (1) The secretary may terminate a shared work
plan for good cause if the secretary determines that the shared work plan is
not being executed according to the terms and intent of the short-term
compensation program, including, but not limited to:
(A) Failure to comply with the approved plan;
(B) failure to maintain required fringe benefits;
(C) misrepresentation of facts;
(D) fraud; or
(E) failure to submit reports required by the secretary.
(2) The secretary may adopt rules and regulations to further define
good cause for plan termination.
(q) Notwithstanding any other provisions of this section, an Weekly
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limit. No individual shall not be eligible to receive shared work benefits for
more than 52 calendar weeks during the 12-month period of the shared
work plan. No week shall be counted as a week for which an individual is
eligible for shared work benefits for the purposes of this section unless the
week occurs within the work plan's 12-month period of the shared work
plan.
(r) This section shall be a part of and supplemental to the employment
security law.
Sec. 39. K.S.A. 44-758 is hereby amended to read as follows: 44-758.
(a) Liability for contributions. (1) Any employer or any individual,
organization, partnership, corporation , organization or other legal entity
that is a lessor employing unit , as defined by in K.S.A. 44-703 (ff), and
amendments thereto, shall be liable for all unemployment insurance
contributions, interest and penalties on wages paid by the lessor
employing unit to individuals performing services for client lessees. Any
(2) Each client lessee shall be jointly and severally liable for any
unpaid contributions, interest and or penalties due owed under this the
employment security law from any lessor employing unit that are
attributable to wages for services performed for the client lessee by
employees leased to through the client lessee lessor employing unit.
(3) To ensure transparency and accountability, the lessor employing
unit shall keep:
(A) Maintain separate payroll and employment records and for each
client lessee; and
(B) submit separate quarterly contributions and wage and
contribution reports for each client lessee in accordance with reporting
requirements established pursuant to rules and regulations that may be
adopted by the secretary of labor. Such rules and regulations may include
mandatory electronic filing provisions.
(b) Any lessor employing unit that is currently engaged in the
business of leasing employees to client lessees shall comply with the
provisions of subsection (a) prior to October 1, 1990.
(c) The provisions ofTemporary staffing firms excluded. (1) This
section shall not be applicable apply to private employment agencies or
staffing firms that provide temporary workers to employers on a temporary
help basis, provided the private employment agencies if such entities are
liable as employers the employer of record for the payment of all
unemployment insurance contributions on wages paid to such temporary
employees,
(2) For the purposes of this subsection, a " temporary help basis"
means the assignment of workers so employed to a client to meet short-
term workload demands, seasonal needs or to fill in for absent regular
employees.
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(d) This section shall be construed as part of the employment security
law.
(c) Enforcement and dispute resolution. The secretary of labor may
adopt rules and regulations as necessary to enforce this section and
resolve disputes regarding liability between lessor employing units and
client lessees. Such rules may include procedures for determining liability,
allocating responsibility for unpaid contributions, establishing
documentation and audit standards and setting timelines and procedures
for notice, appeal and resolution of disputes in accordance with the
employment security law.
Sec. 40. K.S.A. 44-759 is hereby amended to read as follows: 44-759.
On and after January 1, 1998,(a) Definition. As used in this section,
"administrative ruling" means any written interpretation, guidance
document or determination issued by the secretary that explains or
clarifies the application of statutes, regulations or policies under the
employment security law. "Administrative ruling" does not include
decisions of labor the employment security board of review or district
court rulings in individual adjudicated cases.
(b) Availability. The secretary shall make available in , through a
medium readily publicly accessible to contributing employers electronic
archive maintained on the department's official website, all administrative
rulings of the department of labor which that affect the duties and ,
responsibilities of contributing employers. Such rulings or compliance
obligations of employers, claimants or other parties subject to the
employment security law.
(c) Confidentiality. Each administrative ruling shall be provided in
such a manner as to conceal published in a format that redacts or omits all
personally identifiable information, including the identity of the specific
employer for or individual to whom the ruling concerned administrative
ruling originally applied, in compliance with applicable confidentiality
law and data protection standards.
(d) Publication. Within 30 days of issuing an administrative ruling
subject to subsection (b), the secretary shall cause to be published in
publish a summary description of the administrative ruling in the Kansas
register a description of each such administrative ruling within 30 days of
such ruling, together with specific clear instructions as to how the
complete text of the administrative ruling may be obtained for accessing
the full text through the department's electronic archive on the
department's official website. The secretary may satisfy this requirement
through periodic bulletins, summaries or compilations pursuant to rules
and regulations that may be adopted by the secretary, provided that such
bulletins or compilations are published at regular intervals not to exceed
one calendar quarter.
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(e) Appeal and legal status . (1) An administrative ruling published
under this section shall not constitute a final agency order or the issuance
of such an order subject to judicial review under the Kansas
administrative procedure act, unless explicitly designated as such.
(2) Administrative rulings from adjudicative proceedings that are
intended to govern and be binding on the future conduct of private parties
shall comply with the requirements of K.S.A. 77-415, and amendments
thereto. The secretary may issue guidance identifying which rulings are
binding versus advisory and may establish procedures for requesting
clarification or review.
(f) Rules and regulations. The secretary may adopt rules and
regulations to implement this section, including, but not limited to:
(1) Criteria for determining which rulings are subject to publication;
(2) formatting and redaction requirements;
(3) retention and archival timelines for administrative rulings;
(4) summary publication procedures; or
(5) stakeholder input or feedback procedures, including, but not
limited to, opportunities for public comment, advisory committee
consultation or formal requests for clarification or review.
Sec. 41. K.S.A. 44-760 is hereby amended to read as follows: 44-760.
This act(a) Title and purpose. The provisions of this section shall be
known and may be cited as the employment security insurance act for
domestic violence survivors. The purpose of this section is to establish
definitions, procedures, training requirements and benefit protections for
individuals who voluntarily separate from employment or are otherwise
affected by circumstances related to domestic violence.
(b) Definitions. As used in this section:
(1) "Abuse" means:
(A) Causing or attempting to cause physical harm to another person;
(B) placing another person in fear of imminent physical harm;
(C) causing or attempting to cause another person to engage
involuntarily in sexual relations by force, threats or duress;
(D) engaging in mental abuse of another person, including threats,
intimidation or acts intended to induce terror;
(E) depriving or threatening to deprive another person of healthcare,
housing, food or other necessities of life; or
(F) unlawfully restraining or threatening to unlawfully restrain the
liberty of another person.
(2) "Domestic violence" means abuse committed against an employee
or the employee's spouse or dependent child by a:
(A) Current or former spouse of the employee;
(B) person with whom the employee shares a child in common;
(C) person who is cohabitating with or has cohabitated with the
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employee;
(D) person related to the employee by blood or marriage; or
(E) person with whom the employee has or had a dating or
engagement relationship, irrespective of the length of such relationship.
(c) Training and implementation. The secretary of labor shall
develop and implement a domestic violence training curriculum for all
employees who interact with claimants pursuant to K.S.A. 44-706, and
amendments thereto, this section or other provisions of the employment
security law. The training program shall be approved by the state domestic
violence and sexual assault coalition designated by the centers for disease
control and prevention or the United States department of health and
human services. The curriculum shall ensure that claimants affected by
domestic violence are treated with sensitivity and confidentiality and
informed about available protections. The secretary shall update the
curriculum periodically.
(d) Employer account protections. Notwithstanding any other
provisions of the employment security law, the secretary shall not charge
the employment security insurance account of any contributing employer
or rated governmental employer for benefits paid to a claimant who is
determined to be eligible for benefits pursuant to K.S.A. 44-706, and
amendments thereto, due to circumstances related to domestic violence.
(e) Rules and regulations. The secretary may adopt rules and
regulations for the purpose of implementing the provisions of this section.
Sec. 42. K.S.A. 44-765 is hereby amended to read as follows: 44-765.
(a) As used in Definitions. For the purposes of this section:
(1) "Driver" means an individual who operates a motor vehicle which
that is leased to a licensed motor carrier pursuant to a lease agreement.
(2) "Lease agreement" means a written contract by which an owner
grants the use of one or more motor vehicles to a licensed motor carrier
and agrees to furnish a driver for or operate each such motor vehicle with
a driver, which may include the owner.
(3) "Licensed motor carrier" means any person that:
(A) Holds a certificate of convenience and necessity, a certificate of
public service, private carrier permit or an interstate license as an interstate
exempt carrier from the state corporation commission,; or
(B) is required to register motor carrier equipment pursuant to 49
U.S.C. § 14504a.
(4) "Motor vehicle" means any automobile, truck-trailer, semitrailer,
tractor or any other self-propelled or motor driven motor-driven vehicle
used upon any of the operated on public highways of Kansas for the
purpose of transporting property.
(5) "Owner" means a person to whom legal title to a motor vehicle
has been issued.
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(6) "Owner-operator" means any owner which who leases one or
more motor vehicles to a licensed motor carrier pursuant to a lease
agreement and may operate or provide a driver for such vehicle.
(7) "Person" means any an individual, trust, estate, partnership,
association, company or corporation , limited liability company or any
other business entity.
(b) Determination of employment relationship. (1) For the purposes
of the employment security law, it is hereby declared to be the policy of
this state that, consistent with requirements of 49 C.F.R. § 376.12(c)(1), an
independent contractor relationship may exist between an owner-operator
and a licensed motor carrier may exist when and an owner-operator,
provided that the licensed motor carrier complies with the all applicable
federal and state statutory and regulatory requirements governing a
licensed motor carrier's the use of leased motor vehicles in the
transportation of property. To that end, in determining , including, but not
limited to, 49 C.F .R. § 376.12(c)(1).
(2) In evaluating whether an employment relationship exists between
a licensed motor carrier and a driver, the fact requirement that the licensed
motor carrier, pursuant to a lease agreement, requires the a driver to
comply with applicable provisions of the safety, equipment or operational
regulations of established by the state corporation commission, the federal
motor carrier safety administration or any other federal or state agency
having with jurisdiction of over motor carriers shall not, by itself, be
considered construed as the licensed motor carrier's exercise evidence of
control over the driver sufficient to establish an employment relationship.
(3) Nothing in this section shall be construed to preclude the
secretary of labor from considering the totality of circumstances and
applying the definition of employment at K.S.A. 44-703, and amendments
thereto, in a manner consistent with the provisions of paragraphs (1) and
(2) in determining employment status for the purposes of this section.
Sec. 43. K.S.A. 44-766 is hereby amended to read as follows: 44-766.
(a) (1) Prohibited conduct. No person shall knowingly and intentionally
misclassify an employee as an independent contractor for the sole or
primary purpose of avoiding either evading state income tax withholding
and, reporting requirements obligations or state unemployment insurance
contributions reporting contribution requirements under the employment
security law.
(2) For the purposes of this section, "misclassify" means to
knowingly report or treat a worker as an independent contractor when the
worker meets the statutory definition of an employee pursuant to K.S.A.
44-703, and amendments thereto.
(b) (1) Penalties. (1) (A) Any person violating subsection (a) shall
who, having previously violated the provisions of subsection (a) and been
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HB 2764 226
subject to a civil penalty pursuant to paragraph (2), violates such
provisions for a second time shall be guilty of a class C nonperson
misdemeanor.
(B) Any person who violates the provisions of subsection (a) for a
third or subsequent time shall be guilty of a class A nonperson
misdemeanor.
(2) In addition to or in lieu of any other civil or criminal penalty as
provided by law, the secretary, upon first violation be subject to a finding
that a person has violated the provisions of subsection (a), shall impose on
such person a civil penalty in an amount computed calculated in
accordance with the manner prescribed methodology set forth in K.S.A.
79-3228, and amendments thereto.
(2) Any person violating subsection (a) upon a second violation shall
be subject to a civil penalty computed as prescribed in paragraph (1) and in
addition, upon conviction, shall be guilty of a class C nonperson
misdemeanor.
(3) Any person violating subsection (a) upon a third or subsequent
violation shall be subject to a civil penalty computed as prescribed in
paragraph (1) and in addition, upon conviction, shall be guilty of a class A
nonperson misdemeanor.
(c) Enforcement authority. Criminal violations of subsection (a)
prosecutions under this section may be prosecuted brought by the attorney
general or the district or county attorney for of the county in which the
violation occurred alleged violation occurred. The secretary of labor may
refer suspected violations for prosecution. Criminal prosecutions and
enforcement of civil penalties shall be subject to the provisions of
subsection (f)(2)(B).
(d) Any civil penalty assessed hereunder shall be remitted to the
secretary and deposited in the state treasury Civil penalty disposition. Civil
penalties assessed pursuant to this section shall be remitted by the
secretary of labor to the state treasurer in accordance with the provisions
of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such
remittance, the state treasurer shall deposit the entire amount in the state
treasury to the credit of the employment misclassification enforcement,
education and claimant support fund, which is hereby created in the state
treasury and shall be administered by the secretary of labor. All
expenditures from the employment misclassification enforcement,
education and claimant support fund shall be made for the purpose of
employment misclassification enforcement, education or claimant support
in accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
secretary of labor or the secretary's designee.
(e) Any penalty provided inAdditional remedies. The penalties
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imposed under this section shall be in addition to and not exclusive of any
other penalty and remedy that may otherwise be imposed remedies or
penalties available under the employment security act and such law or
other applicable laws. All remedies shall be construed as cumulative.
(f) This section shall be part of and supplemental to the employment
security lawEmployer outreach, voluntary compliance and safe harbor. (1)
The secretary of labor is authorized to develop and disseminate
educational materials, conduct outreach and provide technical assistance
to employers regarding proper worker classification under the
employment security law. The secretary may issue interpretive guidance,
advisory opinions or rules and regulations to clarify factors relevant to
employment status determinations by the secretary as provided by law.
Such guidance shall not limit the secretary's authority to make case-by-
case determinations based on the totality of circumstances.
(2) (A) The secretary may adopt rules and regulations to establish a
voluntary compliance and safe harbor program for employers that, prior
to audit or investigation, voluntarily:
(i) Disclose potential worker misclassification;
(ii) submit supporting documentation and a proposed corrective
action plan; and
(iii) pay all required back unemployment insurance contributions and
applicable taxes.
(B) Employers who comply in good faith with the requirements of the
program may be eligible for partial or full waiver of civil penalties and
protection from criminal prosecution under this section, subject to
conditions and timelines pursuant to rules and regulations that shall be
adopted by the secretary.
Sec. 44. K.S.A. 44-767 is hereby amended to read as follows: 44-767.
(a) The secretary or the secretary's designee shall make all determinations
regarding the proper classification of any worker pursuant to K.S.A. 44-
703(i)(3), and amendments thereto.
(b) If the department of revenue has reason to believe that a business
has not properly classified a worker pursuant to K.S.A. 44-703(i)(3), and
amendments thereto, the department of revenue shall request a
determination of such worker's classification pursuant to K.S.A. 44- 703(i)
(3), and amendments thereto, from the secretary. The department of
revenue shall submit to the secretary all relevant information, including
withholding tax and payroll information, in the possession of the
department of revenue necessary to make such determination.
(1) If the secretary deems it necessary to obtain additional
information from the department of revenue in order to make such
determination or to calculate any assessment of unemployment insurance
contributions due, the secretary shall notify the department of revenue. The
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department of revenue shall obtain and remit the requested information to
the secretary.
(2) The department of revenue shall accept the secretary's
determination made pursuant to subsection (a) and shall rely on such
determination in the department of revenue's examination and assessment
of the business with regard to such worker.
(3) Relying upon the information provided by the department of
revenue pursuant to this section, and amendments thereto, and upon
making the determination required by subsection (a), the secretary shall
notify the business of any unemployment insurance contributions due
pursuant to this act. The secretary shall not engage a separate investigation
into the same matter once a determination has been made pursuant to
subsection (a) based upon information so obtained through the department
of revenue.
(4) Information shared with the secretary by the department of
revenue pursuant to this section, shall be held by the secretary to the same
confidentiality standards as may be required by statutes governing the
department of revenue.
(c) Upon investigation and determination by the secretary that a
business has misclassified a worker, the secretary shall notify the
department of revenue that a determination has been made, referring the
matter for collection of applicable income withholding taxes.
(1) Upon request of the department of revenue, the secretary shall
make available for its review any information relied upon by the secretary
in making the determination.
(2) Information shared with the department of revenue by the
secretary pursuant to this section shall be held by the department of
revenue to the same confidentiality standards as may be required by
statutes governing the department of labor.
(d) Each of the secretary of labor and the secretary of revenue may
adopt rules and regulations necessary to effect the purposes of this section.
(e) This section shall be a part of and supplemental to the
employment security law. (a) It is the intent of the legislature to improve
the accuracy, efficiency and coordination of worker classification
enforcement under the employment security law by establishing a
framework for interagency cooperation, shared data access and
streamlined determination procedures between the department of labor
and the department of revenue.
(b) Classification authority. The secretary of labor or the secretary's
designee shall be the sole authority for determining the proper
classification of a worker as an employee or independent contractor for
purposes of the employment security law. In making such determination,
the secretary shall apply the relevant definition of employment set forth in
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K.S.A. 44-703, and amendments thereto. The secretary may consider
relevant facts, information from other agencies and applicable federal and
state law when making such determination.
(c) Referrals by department of revenue. (1) If the secretary of revenue
or the secretary's designee has reason to believe that a business has
misclassified a worker as an employee or independent contractor for the
purposes of the employment security law, the secretary of revenue shall
submit a written request for classification review to the secretary of labor.
The secretary of revenue shall include with the request all relevant
information in the possession of the secretary, including withholding tax
data, payroll records and supporting documentation necessary to facilitate
the classification determination by the secretary of labor.
(2) If the secretary of labor requires additional information to
complete the classification determination or to calculate unemployment
insurance contributions due from such business, the secretary shall notify
the secretary of revenue. The secretary of revenue shall provide such
information within 30 days or within such reasonable time as determined
by the secretary of revenue. If the secretary of revenue fails to provide
such information within such time period, the secretary of labor may close
the request for classification review or extend the time for the receipt of
such information from the secretary of revenue. Extensions of time shall be
based upon rules and regulations to be adopted by the secretary of labor
and may include, but not be limited to, such circumstances as
administrative constraints experienced by the secretary of revenue,
unresolved taxpayer correspondence or the necessity to validate complex
payroll data.
(3) Upon receiving necessary information from the secretary of
revenue and making the required determination under subsection (b), the
secretary of labor shall notify the referring business of any unemployment
insurance contributions due pursuant to the employment security law.
(4) The secretary of labor shall not initiate a separate investigation
of the same matter referred by the secretary of revenue once a
determination has been issued by the secretary of labor, unless the
secretary of labor determines that new and material information has
become available.
(5) The secretary of revenue shall accept and rely upon the secretary
of labor's classification determination when conducting the secretary of
revenue's own examination or assessment regarding income withholding
or payroll tax obligations related to the same worker.
(6) Any information shared with the secretary of labor by the
secretary of revenue pursuant to this section shall be maintained by the
secretary of labor, subject to the same confidentiality requirements
mandated by law governing the secretary of revenue.
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(d) Reciprocal notification and enforcement. (1) Upon determining
that a worker has been misclassified, the secretary of labor shall notify the
secretary of revenue of the finding for the purposes of enforcing applicable
income tax withholding obligations.
(2) Upon request of the secretary of revenue, the secretary of labor
shall make available any documentation relied upon by the secretary of
labor in making the classification determination. In making such
documentation available, the secretary of labor shall comply with all
applicable laws pertaining to confidentiality.
(3) The secretary of revenue shall safeguard any information received
from the secretary of labor pursuant to this section according to the
confidentiality requirements of law applicable to the secretary of labor.
(e) Rulemaking authority. The secretary of labor and the secretary of
revenue may each adopt rules and regulations necessary to implement and
administer the provisions of this section, including interagency
cooperation procedures, data-sharing protocols, joint audit coordination
and confidentiality standards.
(f) Interagency collaboration and outreach. The secretary of labor
and the secretary of revenue are authorized to adopt joint rules and
regulations or enter into a memorandum of understanding to:
(1) Establish coordinated audit procedures and data-sharing
protocols, including the use of joint audit triggers based on shared tax and
wage reporting data;
(2) develop and maintain secure, interoperable digital systems or
platforms for the transmission, verification and analysis of payroll, tax
and classification information; and
(3) conduct coordinated outreach and educational efforts to promote
compliance with worker classification laws, including public guidance
materials, online resources and industry-specific advisories.
Sec. 45. K.S.A. 44-768 is hereby amended to read as follows: 44-768.
The secretary shall make the determination of employment required by
K.S.A. 44-703(i)(3)(D), and amendments thereto, by examining the
totality of the circumstances in which the individual renders service and
shall exercise strict impartiality in the conduct of any such determination.
(a) The secretary shall first seek to determine whether the business in
question has a reasonable basis upon which it relied when it determined
the classification of a worker as an employee or independent contractor. If
a reasonable basis is found, the classification shall be deemed valid subject
to the provisions of K.S.A. 44-703(i)(3)(D), and amendments thereto. A
business has a reasonable basis for its classification of workers if:
(1) Any of the following circumstances are present:
(A) The business reasonably relied upon a judicial decision regarding
employment classification matters rendered by a federal or state court of
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competent jurisdiction in the state of Kansas;
(B) the business previously received a ruling from the internal
revenue service, the department of revenue, or the department of labor
validating the business' classification of workers;
(C) the business has been previously audited by the internal revenue
service, the department of revenue, or the department of labor at a time
when the business classified workers similarly situated in the same manner
to those workers currently in question, and such audit did not result in
reclassification of those workers so similarly situated; or
(D) the business reasonably relied on the application of worker
classifications customary among a significant segment of its industry; and
(2) The business showed consistency in its practices by:
(A) The business classified the worker in question and any similarly
situated worker in the same manner; and
(B) the business has consistently and properly reported to the
appropriate taxing authorities wages or payments to the workers in
question and those similarly situated.
(b) If a reasonable basis as articulated herein cannot be ascertained,
then when making a determination the secretary shall then consider the
following factors:
(1) Must the individual comply with specific instructions from the
business regarding when, where, and how to perform services so
provided?
(2) Are the activities of the individual integrated into the ongoing
operations of the business?
(3) If needed to accomplish the desired end result, does the individual
have the responsibility to hire, supervise and pay assistants?
(4) Must the individual work exclusively for the business in question?
(5) Is payment by the business to the individual for services
contingent on completion of established benchmarks or tasks?
(6) Does the individual provide significant tools, materials or other
equipment used in the accomplishment of the desired end result?
(7) Is the individual responsible for any expenses incurred in the
performance of services?
(8) Can the individual suffer a loss in the course of performing
services?
(c) The secretary shall seek to educate the business by assisting the
business in identifying facts which may establish either classification.
(d) If imposition of a penalty or interest could otherwise be imposed
by this act due to a misclassification of a worker, before imposition of such
assessment, the secretary shall consider the appropriateness of the penalty
or interest to the business charged with the violation of misclassifying a
worker given the circumstances in which the misclassification occurred,
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including whether or not a reasonable basis for the classification exists. If
a reasonable basis for the classification exists, then the secretary shall not
impose penalties or interest or seek recovery of back taxes for the time
period prior to the secretary's determination that a reasonable basis exists.
(e) This section shall be a part of and supplemental to the
employment security law. (a) Legislative intent. It is the intent of the
legislature to promote compliance with worker standards under the
employment security law by providing a fair, transparent framework for
determining employee status, allowing for good-faith reliance protections
and encouraging voluntary education and corrective action by employers.
(b) Classification determination. (1) Pursuant to K.S.A. 44-703, and
amendments thereto, the term employment includes services for
remuneration under a contract of hire where the employer retains control
over both the result and the manner of performance.
(2) Subject to such standard and the requirements below, the
secretary of labor or the secretary's designee shall determine whether an
individual is properly classified as an employee or an independent
contractor.
(3) Such determination shall be made by examining the totality of the
circumstances in which the individual performs services and conducted
with strict impartiality and consideration of relevant facts and law.
(c) Safe harbor: reasonable basis determination. (1) The secretary
shall first determine whether the business had a reasonable basis for
classifying the worker as an independent contractor. If a reasonable basis
is found, the classification shall be deemed valid for the purposes of
unemployment insurance liability.
(2) A business shall be deemed to have a reasonable basis if:
(A) One or more of the following conditions apply:
(i) The business reasonably relied on a judicial decision addressing
employment classification rendered by a federal or Kansas state court of
competent jurisdiction;
(ii) the business received a written classification ruling from the
internal revenue service, department of revenue or department of labor
supporting the business's classification;
(iii) the business was previously audited by the internal revenue
service, department of revenue or department of labor, during which
similarly situated workers were found to be classified in the same manner
and not reclassified pursuant to such audit; or
(iv) the business reasonably relied on classification practices
customary among a significant segment of the business's industry,
supported by published industry data, guidance or documented standards;
and
(B) the business demonstrated consistency by:
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(i) Classifying the worker in question and all similarly situated
workers in the same manner; and
(ii) accurately and consistently reporting payments or wages for such
workers to the appropriate state or federal taxing authorities.
(d) Totality of circumstances factors. (1) If the secretary determines
that no reasonable basis exists, the classification shall then be evaluated
based on the totality of the circumstances, including, but not limited to, the
following factors. Whether:
(A) The business controls when, where or how the individual
performs the work;
(B) the individual's services are integrated into the core operations of
the business;
(C) the individual is responsible for hiring, supervising or paying
assistants;
(D) the individual is required to work exclusively for the business;
(E) compensation is tied to completion of defined tasks or
benchmarks;
(F) the individual supplies significant tools, equipment or materials;
(G) the individual bears unreimbursed business expenses; and
(H) the individual has the opportunity for financial loss in
performing services.
(2) The list provided by paragraph (1) shall not be construed as
exhaustive and no single factor shall be dispositive. The secretary shall
weigh all relevant facts and circumstances in making a final
determination.
(e) Business education and classification assistance. The secretary
shall provide educational guidance and may assist businesses in
identifying facts or factors relevant to proper worker classification,
including by providing interpretive materials, model scenarios or advisory
opinions under conditions established by rules and regulations of the
secretary. Guidance issued under this subsection shall not bind the
secretary in future classification determinations based on different facts.
(f) Penalty and interest considerations. If the secretary determines
that a business has misclassified a worker and such misclassification
would otherwise give rise to penalties, interest or back unemployment
insurance contributions, the secretary shall consider the totality of the
circumstances before imposing any such amounts.
(1) If the secretary finds that the business acted with a reasonable
basis as set forth in subsection (b), the secretary shall not assess penalties,
interest or recover back taxes for the period prior to such determination.
(2) If the secretary finds that no reasonable basis exists, the secretary
shall determine whether the misclassification was due to negligence,
willful disregard or fraud, and may impose penalties or interest
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proportionate to the degree of culpability in accordance with rules and
regulations adopted under this act.
(g) The secretary may adopt rules and regulations to:
(1) Define penalty waiver criteria, mitigating factors and procedures
for voluntary correction; and
(2) clarify documentation or evidentiary requirements for
establishing a reasonable basis under subsection (c).
(h) This section shall not be construed to limit the secretary's
classification authority pursuant to the definition of employment in K.S.A.
44-703, and amendments thereto.
Sec. 46. K.S.A. 44-769 is hereby amended to read as follows: 44-769.
(a) Annual reporting requirement. (1) On or before January 31 of each
calendar year, the secretary of labor shall transmit annually to the standing
submit a report committee on commerce of the senate and the standing
committee on commerce and economic development of the house of
representatives or any successor committee, a report, based on information
received or developed by the department of labor concerning committees.
(2) The report shall summarize worker misclassification of
employees and any investigations and related thereto. Such report shall
contain the following information for enforcement activities conducted
during the preceding calendar year : pursuant to the employment security
law.
(3) The secretary shall publish each such annual report on the
official website of the department of labor within 30 days of the
transmittal of the report to the legislature.
(a)(b) Report contents. The report shall include, at a minimum, the
following information for the preceding calendar year:
(1) The number of worker misclassification investigations initiated by
the department of labor;
(b)(2) the number of investigations which were closed during the
reporting period, disaggregated as follows:
(1)(A) The number of investigations closed with no assessment being
made; issued; and
(2)(B) the number of investigations closed with assessment being
made which includes assessments issued, including the following
information for each such assessment:
(A)(i) An estimate of the amount of unreported payroll;
(B)(ii) an estimate of the unpaid state payroll taxes or withholding
taxes which have not been withheld on such associated with the
unreported payroll amount;
(C)(iii) the amount of unpaid unemployment insurance contributions
or other amounts required to be paid due under the employment security
act related to such unreported payroll amount law;
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(D)(iv) the total amount of interest assessed;
(E)(v) the total amount of penalties assessed; and
(F)(vi) the number of employers found to be employing
undocumented workers; determined, through the course of investigation,
to have employed individuals not legally authorized to work in the United
States; and
(c)(C) the total amounts collected for each of the categories listed in
subsection (b) category listed in paragraph (2)(B).
(c) Optional contextual and supplemental information. The secretary
may include narrative explanations, data limitations, enforcement trends,
recommendations for policy or statutory changes and any relevant cross-
agency activities conducted in coordination with the department of
revenue or other state or federal entities.
(d) Industry and employer characteristics. To the extent feasible
without compromising confidentiality, the report may categorize
investigations by:
(1) Industry sector description;
(2) size of the business investigated; and
(3) whether the employer was a repeat offender under prior worker
classification determinations.
Sec. 47. K.S.A. 44-770 is hereby amended to read as follows: 44-770.
(a) Employer reporting requirement. Each employer shall submit a report
to the secretary containing: of labor any refusal to hire a job applicant
based on qualifying misconduct as described in K.S.A. 44-706, and
amendments thereto. The report shall include:
(1) The name and last known address of each job applicant the
individual who has been was refused employment by reason of;
(2) the basis for the refusal, including a concise descripion of the
conduct or circumstances that constituted misconduct as such term is
defined in K.S.A. 44-706(b)(2), and amendments thereto; and
(2)(3) such otherany additional information which as may be
required by the secretary by rule or regulation.
(b) Definition of job applicant. For the purposes of this section, "job
applicant" means an individual who:
(1) Has applied for employment with an employer subject to this act;
and
(2) was referred to the employer by the department of labor, a local
workforce center or another recognized public employment service.
(c) Reporting format and timeline. The report required by under
subsection (a) shall be submitted:
(1) On a form prescribed by the secretary. Such report shall be
submitted in a manner prescribed by the secretary;
(2) in a manner approved by the secretary, including through secure
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electronic submission platforms; and
(3) within seven business days, excluding weekends and legal
holidays, of the date the refusal of employment occurred.
(d) Notification and right to respond. (1) Within five business days of
receiving a report, the secretary shall notify the reported individual in
writing that such a report has been filed and may be considered in
evaluating such individual's eligibility for unemployment insurance
benefits.
(2) The individual shall be afforded an opportunity to provide a
written response or explanation within 10 business days of receiving
notice.
(3) The secretary shall consider the individual's response, if timely
submitted, in determining benefit eligibility.
(4) Reports and responses shall be treated as confidential and subject
to disclosure only as authorized under applicable law.
(c)(e) Rules and regulations. The secretary may adopt rules and
regulations as are necessary to carry out implement and administer the
provisions of this section.
(d) The secretary may use any report received pursuant to this section
to determine eligibility for unemployment benefits.
(e) This section shall be a part of and supplemental to the
employment security law. Such rules and regulations may include:
(1) Requirements to ensure the accuracy and confidentiality or
feported information;
(2) documentation standards for employer attestations regarding
misconduct;
(3) procedures for handling disputes and evaluating credibility of
reports and responses; and
(4) guidelines for batch reporting by employers, where applicable.
(f) Use of reported information. Reports received under this section
may be used by the secretary to:
(1) Determine the eligibility of individuals for the unemployment
benefits;
(2) investigate potential fraud or abuse of the unemployment
insurance system; and
(3) coordinate with workforce development or other state agencies,
consistent with applicable confidentiality laws.
(g) Publication and outreach. The secretary shall make the reporting
form and submission procedures publicly available on the department's
official website and may publish explanatory materials to assist employers
with compliance.
Sec. 48. K.S.A. 2025 Supp. 44-772 is hereby amended to read as
follows: 44-772. (a) (1) It is the intent of the legislature that, in order to
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HB 2764 237
accomplish the mission of collecting state employment security taxes,
processing unemployment insurance benefit claims and paying benefits,
the department of labor's information technology system shall be
continually developed, customized, enhanced and upgraded. The purpose
of this section is to ensure the state's unemployment insurance:
(A) Program is utilizing current technology and features to protect the
sensitive data required in the unemployment insurance benefit and tax
systems relating to program integrity, system efficiency and customer
service experience.
(b) The legislature finds that, as a result of the vulnerabilities exposed
in the legacy unemployment insurance system by the COVID-19 pandemic
unemployment insurance crisis, a new system shall be fully designed,
implemented and administered by the department of labor not later than
December 31, 2022. The legislative coordinating council, upon
consultation with the unemployment compensation modernization and
improvement council established by K.S.A. 44-771, and amendments
thereto, may extend the deadline as often as the legislative coordinating
council deems appropriate. The secretary of labor shall provide written
notice to the legislative coordinating council and the unemployment
compensation modernization and improvement council at least 30 days
prior to the expiration of a deadline advising whether the secretary seeks
an extension of the deadline and, if so, the basis therefor. The failure of the
secretary to provide such notice shall not affect the authority of the
legislative coordinating council to act as provided by this subsection. For
purposes of this subsection, "consultation" means an appearance before or
written statement provided to the legislative coordinating council by the
chairperson of the unemployment compensation modernization and
improvement council or the chairperson's designee. Any member of the
unemployment compensation modernization and improvement council
may also provide a written statement. A report to the legislative
coordinating council by the unemployment compensation modernization
and improvement council may be provided but shall not be required. If any
deadline expires before the legislative coordinating council extends that
deadline, the council may subsequently meet as soon as reasonably
possible and may retroactively extend any deadline as otherwise provided
by this subsection; and
(B) system infrastructure remains modern, secure and capable of
withstanding both increased demand and evolving threats, while
maintaining transparency, program integrity and responsiveness to
stakeholders.
(2) In furtherance of such purpose, the secretary shall cause and
maintain the unemployment insurance information technology system to
be:
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(A) Scalable to accommodate significant fluctuations in claims
volume, including during declared emergencies, disasters or economic
downturns; and
(B) equipped with system redundancy, continuity of operations and
disaster recovery features designed to ensure operational resilience.
(3) The secretary of labor shall review and assess the unemployment
insurance information technology system for necessary upgrades, security
enhancements and system improvements at least every 18 months as
required pursuant to this section. Each such review shall assess system
capacity, security posture, service performance and compliance with
federal and state guidance.
(c))(b) The information technology system, technology and platform
shall include, but not be limited to, any components as specified and
defined by the unemployment compensation modernization and
improvement council established by K.S.A. 44-771, and amendments
thereto, in consultation with the secretary.
(d)(c) The new system shall include, but not be limited to, any
features and benefits as specified and defined by the unemployment
compensation modernization and improvement council established by
K.S.A. 44-771, and amendments thereto, in consultation with the secretary.
(e)(d) The secretary shall implement and utilize all program integrity
elements, as specified and defined by the unemployment compensation
modernization and improvement council established by K.S.A. 44-771,
and amendments thereto, in consultation with the secretary, including, but
not limited to:
(1) Social security administration cross-matching for the purpose of
validating social security numbers supplied by a claimant;
(2) checking of new hire records against the national directorate of
new hires to verify eligibility;
(3) verification of immigration status or citizenship and confirmation
of benefit applicant information through the systematic alien verification
for entitlement program;
(4) comparison of applicant information to local, state and federal
prison databases through incarceration cross-matches;
(5) detection of duplicate claims by applicants filed in other states or
other unemployment insurance programs through utilization of the
interstate connection network, interstate benefits cross-match, the state
identification inquiry state claims and overpayment file and the interstate
benefits 8606 application for overpayment recoveries for Kansas claims
filed from a state other than Kansas;
(6) identification of internet protocol addresses linked to multiple
claims or to claims filed outside of the United States; and
(7) use of data mining and data analytics to detect and prevent fraud
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HB 2764 239
when a claim is filed, and on an ongoing basis throughout the lifecycle of a
claim, by using current and future functionalities to include suspicious
actor repository, suspicious email domains, foreign internet protocol
addresses, multi-state cross-match, identity verification, fraud alert
systems and other assets provided by the unemployment insurance
integrity center.
(e) (1) The secretary of labor shall conduct an audit at least every 24
months of the fraud prevention, identity verification and cross-matching
tools listed under subsection (d). Such audit shall evaluate such tools':
(A) Effectiveness in detecting and preventing fraud;
(B) accuracy in eligibility determinations; and
(C) effectiveness in maintaining system integrity and eliminating or
minimizing vulnerabilities.
(2) The department shall annually publish anonymized, aggregate
metrics for the:
(A) Number and types of fraudulent or ineligible claims identified;
(B) methods used to detect such claims; and
(C) denial rates associated with each specific program integrity
element.
(f) If the unemployment compensation modernization and
improvement council becomes inactive or is dissolved and the new
information technology system modernization project has been completed,
The secretary shall:
(1) Review any program integrity guidance issued by the United
States department of labor or the national association of state workforce
agencies, including the data integrity hub, within 15 business days of
issuance;
(2) publish on the department of labor's website a summary within 45
calendar days of such issuance of such guidance indicating whether the
secretary will adopt, partially adopt or decline such guidance. If declined,
the summary shall include an explanation of such decision. Such summary
shall also promptly be submitted to the chairpersons, vice chairpersons
and ranking minority members of the standing committees of the senate
and the house of representatives to which legislation pertaining to the
employment security law is customarily referred, the president of the
senate, the speaker of the house of representatives, the governor and the
legislative coordinating council; and
(3) if such guidance is adopted or partially adopted, implement and
utilize all such new program integrity elements and guidance issued by the
United States department of labor and the national association of state
workforce agencies, including the integrity data hub, within 60 days of the
issuance of any such guidance.
(g) (1) The secretary, on a scheduled basis as provided by paragraph
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HB 2764 240
(2), shall cross check new and active unemployment insurance claims
against the cross-check programs described in subsection (e) (d) . If the
secretary receives information concerning an individual approved for
benefits that indicates a change in circumstances that may affect eligibility,
the secretary shall review the individual's case and act in accordance with
the law.
(2) The cross-checks described under paragraph (1) shall be
performed at least:
(A) Weekly for incarceration and out-of-state claims databases;
(B) biweekly for social security administration and new hire
directories; and
(C) monthly for systematic alien verification and suspicious actor
repositories.
(h) The secretary shall establish a written protocol for resolving
discrepancies identified through cross-checks, including:
(1) Employer-reported discrepancies;
(2) multiple state claims; and
(3) conflicting identity or employment status information.
(i) (1) The department of labor shall have the authority to execute a
memorandum of understanding with any department, agency or agency
division for information required to be shared between agencies pursuant
to the provisions of this section.
(2) Any memorandum of understanding executed under paragraph
(1) shall:
(A) Be reviewed by the secretary at least once every two years for
accuracy, security and necessity; and
(B) include specific provisions addressing data sharing limits,
confidentiality, secure transmission and breach notification requirements.
(i)(j) (1) The secretary of labor shall adopt rules and regulations
necessary for the purposes of carrying out this section. Such rules and
regulations shall be adopted by May 13, 2022.
(2) The secretary shall annually review and update such rules and
regulations to reflect operational changes and program enhancements and
submit any such necessary changes to the secretary of administration for
the purpose of initiating the rules and regulations filing process pursuant
to K.S.A. 77-415 et seq., and amendments thereto, not later than July 1,
2027, and July 1 of each year thereafter.
(3) The secretary shall consult with stakeholders prior to adopting or
revising such rules and regulations, including:
(A) Employers and employer associations;
(B) worker advocacy groups;
(C) claimants and user representatives; and
(D) information technology and cybersecurity professionals.
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(4) In addition to any public hearing required pursuant to K.S.A. 77-
415 et seq., and amendments thereto, the department shall conduct at least
one public hearing on any proposed regulations and provide a public
comment period of not less than 30 calendar days prior to the submission
of proposed rules and regulations to the secretary of administration.
(j)(k) The secretary of labor shall provide an annual status update and
progress report regarding the requirements of this section . Such report
shall:
(1) Be provided to the unemployment compensation modernization
and improvement council, if such council is active and has not been
dissolved, and the legislative coordinating council;
(2) be published in a publicly accessible format on the department's
website;
(3) include metrics for claim processing times, system downtime or
outages, user support response times and claimant and employer
satisfaction survey results; and
(4) prominently present any substantial system upgrades, detected
vulnerabilities and steps taken to address audit findings or integrity
concerns.
(k) This section shall be a part of and supplemental to the
employment security law.
(l) Beginning on January 1, 2027, if the secretary fails to meet a
statutory deadline relating to system implementation, administrative
rulemaking or required reporting pursuant to this section, the secretary
shall, within 30 days of such missed deadline, submit to the legislative
coordinating council and the chairpersons of the standing committees of
the senate and the house of representatives to which legislation pertaining
to the employment security law is customarily referred:
(1) A written explanation regarding why such deadline was missed;
and
(2) a revised implementation plan and estimated completion date.
Sec. 49. K.S.A. 44-773 is hereby amended to read as follows: 44-773.
(a) Required tax information disclosure. The secretary of labor shall
include information on an unemployment insurance benefit , as part of a
claimant's initial notice of monetary determination that informs the
claimant of the of unemployment insurance eligibility, information
regarding the federal and state income tax consequences of any
unemployment compensation benefits that the claimant may receive. This
Such information shall include an, but not be limited to:
(1) A clear explanation regarding the department of labor of the
claimant's right to elect or decline income tax withholding from
unemployment compensation payments;
(2) the process for making such an election, including access to the
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HB 2764 242
department's tax withholding agreement form, designated as form K-BEN
233 or a its successor form,;
(3) clear instructions for initiating or modifying a tax withholding
elections and election at any time during the tax withholding process and
estimated benefit year;
(4) an estimate of the weekly and maximum claim year withholding
amounts for federal and state tax withholding amounts income taxes,
based on current rates and typical benefit levels; and
(5) contact information or links to federal and state tax authorities
for additional claimant guidance.
(b) This section shall be a part of and supplemental to the
employment security law Accessibility and delivery requirements. The tax
information described in subsection (a) shall:
(1) Be presented in plain language and provide in printed and
electronic formats;
(2) be made available in the primary languages most commonly
spoken by Kansas claimants as determined by the department of labor;
(3) be published on the department's official website alongside other
benefit eligibility resources; and
(4) include access to an online tax withholding estimator tool or
illustrative exmples based on common benefit scenarios.
(c) Annual review and update. The secretary shall annually review
and update the information and materials required under this section
reflect changes in applicable federal or state income tax laws, withholding
rates or benefit structures. Updated withholding amount estimates shall be
published by January 15 of each calendar year.
Sec. 50. K.S.A. 2025 Supp. 44-774 is hereby amended to read as
follows: 44-774. (a) The secretary of labor shall post trust fund
computations and data as required by subsection (b) on a publicly
accessible website maintained by the secretary as follows:
(1) The secretary shall post and maintain certified computations and
data for each of the most recent 20 fiscal years; and
(2) for the fiscal year beginning on July 1, 2024, and each fiscal year
thereafter, the secretary shall certify and post the trust fund computations
and data for the fiscal year to the website on or before December 1
following the end of such fiscal year.
(b) The computations and data to be posted shall include:
(1) Distributions of taxable wages by experience factor for each state
fiscal year including the following information:
(A) The rate group;
(B) the reserve ratio lower limit;
(C) the number of accounts;
(D) the taxable wages by fiscal year;
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HB 2764 243
(E) a summary of active positive eligible accounts with the number of
accounts and fiscal year taxable wages;
(F) a summary of active ineligible accounts with the number of
accounts and fiscal year taxable wages;
(G) a summary of active negative accounts with the number of
accounts and fiscal year taxable wages; and
(H) a summary of terminated and inactive accounts with the number
of accounts and fiscal year taxable wages including all:
(i) Terminated accounts with the number of accounts and fiscal year
taxable wages; and
(ii) inactive accounts with the number of accounts and fiscal year
taxable wages organized by regular rated, industry rated and negative rated
accounts;
(2) an average high cost benefit rate summary, including:
(A) The average high cost benefit rate currently in effect; and
(B) the benefit cost rate for the fiscal years used to calculate the
average high benefit cost rate;
(3) the statewide wage data, including:
(A) Statewide average annual wage (SAAW) for the fiscal year; and
(B) statewide average weekly wage (SAWW) for the fiscal year.
(c) (1) The secretary of labor shall prepare and submit an annual
certification memorandum regarding computations and data for
contributing negative rated employers assigned to rate groups N1 through
N11.
(2) Commencing in 2025 and each year thereafter, the secretary shall
submit the certification memorandum on or before January 15 of each
calendar year. The certification memorandum shall be for the 12-month
period ending on June 30 of the preceding calendar year. In preparing the
certification memorandum, the secretary shall consider contributions paid
after such 12-month period ending on June 30 that are paid on or before
the immediately following July 31.
(3) The secretary shall submit the certification memorandum to the
chairpersons, vice chairpersons and ranking minority members of the
standing committees of the senate and the house of representatives to
which legislation pertaining to the employment security law is customarily
referred, the president of the senate, the speaker of the house of
representatives, the governor and the legislative coordinating council.
(4) The certification memorandum shall include for the current and
most recent calculated three years:
(A) An employer identification number assigned to the employer by
the secretary;
(B) NAICS code;
(C) the employer's account balance by fiscal year;
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(D) the employer's taxable wages by fiscal year;
(E) the employer's calculated reserve ratio by fiscal year;
(F) the employer's taxable wage base by fiscal year;
(G) the benefits charged to the employer by fiscal year;
(H) if workshare was requested by the employer; and
(I) if workshare was approved for the employer.
(5) Commencing in 2028 and each year thereafter, the annual
certification memorandum shall also include the total number, if any, of:
(A) Temporary unemployment weeks requested by the employer;
(B) temporary unemployment weeks approved for the employer;
(C) the claimants who requested temporary unemployment against
the employer's account independently from any request for temporary
unemployment by the employer; and
(D) the temporary unemployment weeks charged against the
employer's account that were claimed independently from any request for
temporary unemployment by the employer.
(d) This section shall be a part of and supplemental to the
employment security law. (a) Public posting of trust fund data. (1) The
secretary of labor shall post and maintain certified trust fund
computations and employer experience data on a publicly accessible
website maintained by the department of labor. Such data shall be made
available in both human-readable and machine-readable formats and
include visual summaries or dashboards where practicable.
(2) The secretary shall:
(A) Maintain the data specified in subsection (b) for the 20 preceding
state fiscal years; and
(B) beginning with the fiscal year ending on June 30, 2025, certify
and post such data not later than December 1 following the close of each
fiscal year.
(b) Required content of trust fund and employer experience data. The
data posted pursuant to subsection (a) shall include the following:
(1) Taxable wage distributions by experience factor, including:
(A) Rate group designation;
(B) reserve ratio lower limit;
(C) number of employer accounts;
(D) taxable wages by fiscal year;
(E) summary of active positive eligible accounts, with account counts
and taxable wages;
(F) summary of active ineligible accounts, with account counts and
taxable wages;
(G) summary of active negative-rated accounts, with account counts
and taxable wages; and
(H) summary of terminated and inactive accounts, with:
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(i) Terminated accounts with account counts and taxable wages; and
(ii) inactive accounts, categorized by regular-rated, industry-rated
and negative-rated, with account counts and taxable wages;
(2) average high-cost benefit rate summary, including:
(A) The average high-cost benefit rate in effect for the current year;
and
(B) the benefit cost rates for each year used in the three-year
calculation of the average high benefit cost rate; and
(3) statewide wage data, including:
(A) The statewide average annual wage; and
(B) the statewide average weekly wage, for the applicable fiscal year.
(c) Annual certification report for contributing negative-rated
employers. (1) The secretary shall prepare and submit an annual
certification report providing data for contributing employers assigned to
negative rate groups N1 through NE11.
(2) Beginning in 2025 and annually thereafter, the secretary shall
submit such report not later than January 15. Such report shall cover the
12-month period ending on June 30 of the preceding year. The secretary
shall consider in such report any contributions received by July 31 that
apply to the covered period.
(3) The secretary shall submit such report to the:
(A) Chairpersons, vice chairpersons and ranking minority members
of the senate and the house of representatives standing committees to
which employment security law matters are customarily referred;
(B) president of the senate and the speaker of the house of
representatives;
(C) governor; and
(D) legislative coordinating council.
(4) The report shall include, for the current and preceding three
calculated years, the following employer-specific data:
(A) An employer identification number assigned by the secretary,
which shall not be the same as the federal employer identification number
or the Kansas unemployment insurance account number, also known as
the SUTA account number;
(B) north American industry classification system code;
(C) fiscal year account balances;
(D) fiscal year taxable wages;
(E) calculated reserve ratios by fiscal year;
(F) taxable wage bases by fiscal year;
(G) benefits charged to the account by fiscal year;
(H) whether the employer requested workshare; and
(I) whether workshare was approved.
(5) Beginning in 2028 and annually thereafter, the report shall also
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include the following, if applicable, for each employer:
(A) Total temporary unemployment weeks requested by the employer;
(B) total temporary unemployment weeks approved;
(C) the number of claimants independently filing temporary
unemployment claims against the employer's account; and
(D) the number of weeks charged to the employer's account from
such independently filed claims.
(d) Data access and publication requirements. The department shall
ensure that all data posted or submitted pursuant to this section:
(1) Is available in downloadable, commonly used open-data formats;
(2) includes visual summaries or dashboards where feasible;
(3) respects data privacy standards and anonymization practices
where employer-level data may present confidentiality concerns; and
(4) is accompanied by explanatory context, trends analysis and a
glossary of key terms and definitions used in posted data and reporting
methodologies.
Sec. 51. K.S.A. 2025 Supp. 44-775 is hereby amended to read as
follows: 44-775. (a) (1) The secretary of labor and the secretary of
commerce shall jointly establish and implement the my reemployment
plan as provided in this section. For purposes of this section, "my
reemployment plan" means a program jointly established and implemented
by the Kansas department of labor and the Kansas department of
commerce that provides enhanced reemployment services, including
workforce services provided by the department of commerce, to Kansans
receiving unemployment insurance benefits.
(2) The program shall be required for all claimants except claimants
that are:
(A) In the shared work program;
(B) in the trade adjustment assistance and trade readjustment
assistance program;
(C) on temporary unemployment as defined in K.S.A. 44-703(ii), and
amendments thereto;
(D) currently employed;
(E) current reemployment services and eligibility assessment
participants;
(F) active members in good standing of a placement union; or
(G) claimants that are engaged in a training program.
(3) (A) The following shall apply to any request to the secretary for
an extension of additional weeks of temporary unemployment, as defined
by K.S.A. 44-703(ii), and amendments thereto, if permitted by
subparagraph (C):
(i) The request shall be made in writing by a rated contributing
employer on behalf of an identified individual or individuals;
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(ii) the request shall be submitted, with respect to each individual, for
an increment of eight weeks of additional temporary unemployment
allowed for the individual, if permitted by subparagraph (C); and
(iii) the rated contributing employer shall agree to provide the
secretary with reports relating to the temporary unemployment extension
request as the secretary may require.
(B) The secretary may approve one temporary unemployment
extension request for an individual of eight weeks up to the maximum total
number of weeks permitted, if permitted by subparagraph (C), if the
secretary determines that the requesting employer has:
(i) Agreed to provide the secretary with all reports required as
provided by subparagraph (A)(iii);
(ii) filed all reports required to be filed under the employment
security law for all past and current periods; and
(iii) paid all contributions required to be paid under the employment
security law.
(C) (i) Additional temporary unemployment benefits of eight weeks
for an individual in a benefit year may be granted by the secretary if the
requests for additional temporary unemployment are made by a requesting
employer determined by the secretary to be primarily engaged in:
(a) Ready-mixed concrete production and distribution; or
(b) the construction of highways or elevated highways, streets, roads,
airport runways, public sidewalks or bridges.
(ii) The total maximum amount of temporary unemployment for an
individual in a benefit year, including any extension of additional
temporary unemployment granted by the secretary, shall be limited to 16
weeks.
(4) The secretary of labor shall provide the secretary of commerce
with the names and contact information of claimants that have claimed a
third week of benefits in the current benefit year. The secretary of labor
shall request the claimant to upload or create a complete resume in the
Kansasworks workforce system, and complete a job search plan that
includes a skills assessment component. The secretary of commerce shall
offer and provide, when requested, assistance to the claimants in
developing the documents or plan through collaboration by the secretary
with the Kansasworks workforce system. The secretary of commerce may
require claimants to participate in reemployment services. The claimant
shall have 14 calendar days to respond to the secretary of commerce. The
secretary of commerce shall report any failure to respond by the claimant
to the secretary of labor.
(5) The secretary of labor shall share labor market information and
current available job positions with the secretary of commerce. The
secretary of labor may collaborate with Kansasworks or other state or
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federal agencies with job availability information in obtaining or sharing
such information.
(6) The secretary of commerce shall match open job positions with
claimants based on skills, work history and job location that is a
reasonable commute from the claimant's residence and communicate the
match information to the claimant and to the employer. The secretary of
labor and the secretary of commerce shall consider whether the claimant or
a Kansas employer would benefit from the claimant's participation in a
work skills training or retraining program as provided by subsection (b)
and, if so, provide such information to the employer, if applicable, and the
claimant. Claimants who fail to respond within 14 calendar days after
contact by Kansasworks or the department of commerce shall be reported
by the secretary of commerce to the secretary of labor.
(7) The secretary of commerce and the secretary of labor shall
monitor the result of job matches and share information regarding any
claimant who did not attend an interview or did not accept a position that
was a reasonable match for the claimant's work history and skills and was
within a reasonable commute from the claimant's residence. The secretary
of commerce shall contact the claimant and report the contact to the
secretary of labor. The secretary of labor shall consider whether the
claimant has failed to meet work search requirements and if the claimant
should continue to receive benefits.
(b) The secretary of commerce shall refer claimants to a work skills
training or retraining program as appropriate. The secretary of commerce
shall seek to obtain or utilize any available federal funds for the program,
and to the extent feasible, may make current work skills training and
retraining programs available to claimants. The secretary of labor may
allow claimants to participate in such a program offered by the secretary of
commerce or by another state or federal agency in lieu of requiring the
claimant to meet job search requirements and the requirements of the my
reemployment plan until the number of allowed benefit weeks has expired.
A claimant shall participate in such a program for not less than 25 hours
per week. The secretary of commerce shall monitor those my
reemployment plan claimants participating in training managed by the
workforce centers to ensure compliance.
(c) Claimants who participate in the my reemployment plan or the
work skills training or retraining program shall meet attendance or
progress requirements established by the secretary of commerce to
continue eligibility for unemployment insurance benefits. Non‐compliant
claimants shall be reported by the secretary of commerce to the secretary
of labor. The secretary of labor shall disqualify such claimants from further
benefits within five business days of receiving the report, unless or until
the claimant demonstrates compliance to the secretary of commerce, and
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shall communicate the disqualification and the reason for the
disqualification to the claimant. The secretary of commerce shall report to
the secretary of labor when the claimant has reestablished compliance. The
secretary of labor may continue benefits or reinstate a claimant's eligibility
for benefits upon a showing of good cause by the claimant for the failure
to meet attendance or progress requirements or my reemployment plan
participation requirements.
(d) The secretary of labor and the secretary of commerce shall
provide an annual status update and progress report for the my
reemployment plan to the standing committee on commerce, labor and
economic development of the house of representatives and the standing
committee on commerce of the senate during the first month of each
regular legislative session.
(e) This section shall be a part of and supplemental to the
employment security law.(a) Establishment and applicability. (1) The
secretary of labor and the secretary of commerce shall jointly establish
and implement a program designed to provide enhanced reemployment
services to unemployment insurance claimants, including access to
Kansasworks and other workforce services offered by the department of
commerce. Such program shall be known as the my reemployment plan.
(2) Participation in the my reemployment plan shall be required for
all claimants except those who are:
(A) Participating in the shared work program;
(B) receiving trade adjustment assistance or trade readjustment
assistance;
(C) on temporary unemployment as defined in K.S.A. 44-703, and
amendments thereto;
(D) currently employed;
(E) enrolled in the reemployment services and eligibility assessment
program;
(F) active members in good standing of a placement union; or
(G) actively engaged in a qualified training program.
(3) Temporary unemployment extensions. (A) The following
conditions shall apply to any request to the secretary for an extension of
additional weeks of temporary unemployment, as defined by K.S.A. 44-
703, and amendments thereto, if permitted by subparagraph (C):
(i) The request shall be made in writing by a rated contributing
employer on behalf of an identified individual or individuals;
(ii) the request shall be submitted, with respect to each individual, for
an increment of eight weeks of additional temporary unemployment
allowed for the individual, if permitted by subparagraph (C); and
(iii) the rated contributing employer shall agree to provide the
secretary with reports relating to the temporary unemployment extension
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HB 2764 250
request as the secretary may require.
(B) The secretary may approve one temporary unemployment
extension request for an individual of eight weeks up to the maximum total
number of weeks permitted, if permitted by subparagraph (C), if the
secretary determines that the requesting employer has:
(i) Agreed to provide the secretary with all reports required as
provided by subparagraph (A)(iii);
(ii) filed all reports required to be filed under the employment
security law for all past and current periods; and
(iii) paid all contributions required to be paid under the employment
security law.
(C) (i) Additional temporary unemployment benefits of eight weeks
for an individual in a benefit year may be granted by the secretary if the
requests for additional temporary unemployment are made by a requesting
employer determined by the secretary to be primarily engaged in:
(a) Ready-mixed concrete production and distribution; or
(b) the construction of highways or elevated highways, streets, roads,
airport runways, public sidewalks or bridges.
(ii) The total maximum amount of temporary unemployment for an
individual in a benefit year, including any extension of additional
temporary unemployment granted by the secretary, shall be limited to 16
weeks.
(b) Claimant engagement and interagency coordination. (1) Upon a
claimant filing for a third week of benefits, the secretary of labor shall:
(A) Notify the claimant of my reemployment plan requirements;
(B) direct the claimant to complete a resume in the Kansasworks
system and submit a job search plan that includes a skills assessment; and
(C) provide the claimant's name and contact information to the
secretary of commerce.
(2) The secretary of commerce shall offer assistance to claimants in
completing the my reemployment plan documentation. The secretary may
require participation by claimants in available reemployment services.
(3) Claimants shall respond to my reemployment plan
communications from the secretary of commerce within 14 calendar days.
If a claimant fails to respond within 14 calendar days, the secretary of
commerce shall report the nonresponse to the secretary of labor.
(4) The secretary of labor shall share labor market data, job
openings and employment trends with the secretary of commerce. The
secretary of labor may also collaborate with Kansasworks or other
agencies in gathering or sharing such information.
(c) Job matching, referrals, and training. (1) The secretary of
commerce shall:
(A) Match claimants with open positions based on skills, work history
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and commuting distances that are reasonable based on location and labor
market factors;
(B) notify both claimant and employer of suitable matches; and
(C) monitor available skills training or retraining programs,
periodically review eligibility of claimants for such programs and refer
eligible claimants to such programs when deemed beneficial for a
claimant.
(2) Claimants who fail to respond within 14 calendar days of contact
regarding job matches or referrals shall be reported to the secretary of
labor for benefit eligibility review.
(3) The secretary of labor and secretary of commerce shall jointly
monitor job match results and determine whether claimants failed to
accept or attend interviews for reasonable matches of employment.
(d) Participation in training programs. (1) The secretary of
commerce may refer claimants to work skills training or retraining
programs and shall obtain and use federal funds to support such programs
to the extent possible.
(2) Claimants referred to training by the secretary of commerce shall
be reported to the secretary of labor. The secretary of labor may
temporarily exempt such claimants from job search and my reemployment
plan participation requirements.
(3) Training program participants shall:
(A) Participate for no fewer than 25 hours per week; and
(B) be monitored for compliance and progress by the secretary of
commerce.
(e) Compliance and disqualification procedures. (1) Claimants shall
meet all my reemployment plan and training program attendance and
progress requirements to remain eligible for benefits.
(2) The secretary of commerce shall report noncompliant claimants
to the secretary of labor, who shall disqualify such claimants for benefits
within five business days unless the claimant demonstrates compliance or
provides good cause for the noncompliance to the secretary of labor.
(3) The secretary of commerce shall notify the secretary of labor of
claimants who resume compliance. Upon such notification of restored
compliance by the secretary of commerce, the secretary of labor may
resume or reinstate benefits for such claimants.
(f) Supplemental unemployment benefit plan recipients. Claimants
receiving benefits under an approved supplemental unemployment benefit
plan in accordance with section 1, and amendments thereto, shall remain
subject to participation in reemployment services, unless otherwise
exempted by the secretary of labor pursuant to this section.
(g) Legislative reporting. The secretary of labor and the secretary of
commerce shall provide a joint annual report on the implementation and
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outcomes of the my reemployment plan to the house of representatives
committee on commerce, labor and economic development and the senate
committee on commerce during the first month of each regular legislative
session. The report shall include performance indicators, such as claimant
participation rates, resume submissions, job match results, reemployment
outcomes and other metrics as jointly determined by the secretary of labor
and secretary of commerce.
Sec. 52. K.S.A. 44-777 is hereby amended to read as follows: 44-777.
(a) Identity verification form. The secretary of labor shall develop a
standardized form for use by to assist claimants to establish in
establishing their identity before a law enforcement officer of a Kansas
law enforcement agency officer for the purpose of facilitating the receipt
of unemployment insurance benefits. The form may be in electronic
situations involving potential identity theft, administrative holds or paper
format and may be transmitted or processed in electronic format if
safeguards are made other instances where additional verification is
necessary to protect any confidential information of the claimant. program
integrity. Use of the form by a claimant shall be optional and not be a
requirement to receive condition of eligibility for unemployment insurance
benefits.
(1) The form shall be distributed to participating law enforcement
agencies upon request and shall be provided to claimants at the time a
claim for benefits is submitted. The form shall also be made readily
available on the department of labor's website. The form shall be no more
than:
(A) Not exceed one page in length,;
(B) include space fields for the claimant's full name, residential
address, phone number , if any available, email address , if any available,
date of birth and social security number and include;
(C) provide instructions for the use of the form for the claimant and
the law enforcement agency. The form shall specify permitted identity
verification documentation that may be submitted to the law enforcement
officer by the claimant to establish the claimant's identity. The permitted
forms of identity verification documentation shall be documents to
establish identity or documents to establish both the claimant and law
enforcement officer, including a list of acceptable identity verification
documents; and
(D) specify the acceptable documents sufficient to establish identity,
or identity and employment authorization acceptable for as recognized by
federal form I-9, employment eligibility verification, pursuant to 8 C.F.R.
§ 274a.2, as in effect on the effective date of this act. The form shall be
developed and made available within seven days of the effective date of
this act. Law enforcement agencies shall not be required to participate in
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the provisions of this section July 1, 2025. The form shall state that
acceptable documents include documents listed under List A or a
combination of List B and List C of the federal from I-9.
(2) The form may be issued in either paper or electronic format and
may be submitted electronically provided that the department implements
safeguards to protect all claimant information in accordance with K.S.A.
44-714(e), and amendments thereto, and all other applicable state and
federal privacy laws.
(3) The form shall be made available on the department of labor's
official website in a human-readable, commonly used and readily
available format that may be downloaded, saved to a local computer and
printed. If possible and in a reasonably secure manner, the secretary shall
make the format capable of being completed and submitted online. The
form shall be provided, in electronic format or paper copy, to any:
(A) Claimant upon submission of an unemployment insurance claim;
and
(B) law enforcement agency that agrees to participate.
(4) The secretary shall develop and publish the form not later than
July 10, 2026, and maintain a publicly accessible list of participating law
enforcement agencies, updated at least quarterly.
(b) Presentation to law enforcement. Upon receipt of the form, a
claimant may present the form and required documentation to a
participating Kansas law enforcement agency with that has jurisdiction
over the location of the claimant's residence or last known place of
employment in Kansas and submit documentation as required by the form
for verification by the law enforcement state. If no such agency. agrees to
participate, the secretary may authorize the claimant may to present the
form to a participating law enforcement agency that does not have outside
of the defined jurisdiction over the location of the claimant's residence or
last known place of employment if no law enforcement agency with such
jurisdiction has agreed to participate and the secretary has approved such
submission. If a law enforcement officer of the law enforcement agency
examines and finds the documentation submitted by the claimant valid and
sufficient to establish the claimant's.
(1) Upon validating the claimant's documentation and confirming its
sufficiency to establish identity, the law enforcement officer shall complete
or verify the form as instructed and transmit the law enforcement agency
shall submit the verified form to the department of labor as provided in the
manner prescribed by the instructions secretary.
(c) The secretary shall presume a claimant's identity has been
confirmed for purposes of the employment security law upon
submissionPresumption of identity. Upon receipt of a properly completed
verification form to the secretary by the from a law enforcement agency on
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behalf, the secretary shall presume that the claimant's identity has been
established for purposes of administering the claimant. The employment
security law. This presumption may be overcome rebutted by direct and
credible information evidence to the contrary.
(d) TheConfidentiality and legal immunity. All information collected
or transmitted under this section shall be confidential and subject to the
protections of K.S.A. 44-714(e), and amendments thereto.
(1) Any law enforcement officer, law enforcement agency, the state or
any political subdivision of the state that employs a law enforcement
officer providing thereof that participates in the identity verification as
provided by process in accordance with this section for the department of
labor, shall have immunity shall be immune from any civil or criminal
liability for such verification action if activities, provided the law
enforcement officer or agency acts in good faith and exercises due care.
(2) Participation and by law enforcement in the verification of a
claimant's identity as provided process established by this section by a law
enforcement agency or law enforcement officer shall constitute a
discretionary function or duty for purposes of the Kansas tort claims act ,
K.S.A. 75-6101 et seq., and amendments thereto.
(e) This section shall be a part of and supplemental to the
employment security lawRulemaking authority. The secretary of labor
may adopt rules and regulations as necessary to implement, administer
and ensure compliance with the provisions of this section, including
procedures for electronic submission, data security and interagency
coordination.
Sec. 53. K.S.A. 2025 Supp. 79-3234 is hereby amended to read as
follows: 79-3234. (a) All reports and returns required by this act shall be
preserved for three years and thereafter until the director orders them to be
destroyed.
(b) Except in accordance with proper judicial order , or as provided in
subsection (c) or K.S.A. 46-1106(e), 46-1114 or 79-32,153a, and
amendments thereto, it shall be unlawful for the secretary, the director, any
deputy, agent, clerk or other officer, employee or former employee of the
department of revenue or any other state officer or employee or former
state officer or employee to divulge , or to make known in any way , the
amount of income or any particulars set forth or disclosed in any report,
return, federal return or federal return information required under this act ;,
and it shall be unlawful for the secretary, the director, any deputy, agent,
clerk or other officer or employee engaged in the administration of this act
to engage in the business or profession of tax accounting or to accept
employment, with or without consideration, from any person, firm or
corporation for the purpose, directly or indirectly, of preparing tax returns
or reports required by the laws of the state of Kansas, by any other state or
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by the United States government , or to accept any employment for the
purpose of advising, preparing material or data, or the auditing of books or
records to be used in an effort to defeat or cancel any tax or part thereof
that has been assessed by the state of Kansas, any other state or by the
United States government.
(c) The secretary or the secretary's designee may:
(1) Publish statistics, so classified as to prevent the identification of
particular reports or returns and the items thereof;
(2) allow the inspection of returns by the attorney general or other
legal representatives of the state;
(3) provide the post auditor access to all income tax reports or returns
in accordance with and subject to the provisions of K.S.A. 46-1106(e) or
46-1114, and amendments thereto;
(4) disclose taxpayer information from income tax returns to persons
or entities contracting with the secretary of revenue where the secretary
has determined disclosure of such information is essential for completion
of the contract and has taken appropriate steps to preserve confidentiality;
(5) disclose to the secretary of commerce the following:
(A) Specific taxpayer information related to financial information
previously submitted by the taxpayer to the secretary of commerce
concerning or relevant to any income tax credits, for the purposes of
verification of such information or evaluating the effectiveness of any tax
credit or economic incentive program administered by the secretary of
commerce;
(B) the amount of payroll withholding taxes an employer is retaining
pursuant to K.S.A. 74-50,212, and amendments thereto;
(C) information received from businesses completing the form
required by K.S.A. 74-50,217, and amendments thereto; and
(D) findings related to a compliance audit conducted by the
department of revenue upon the request of the secretary of commerce
pursuant to K.S.A. 74-50,215, and amendments thereto;
(6) disclose income tax returns to the state gaming agency to be used
solely for the purpose of determining qualifications of licensees of and
applicants for licensure in tribal gaming. Any information received by the
state gaming agency shall be confidential and shall not be disclosed except
to the executive director, employees of the state gaming agency and
members and employees of the tribal gaming commission;
(7) disclose the taxpayer's name, last known address and residency
status to the Kansas department of wildlife and parks to be used solely in
its license fraud investigations;
(8) disclose the name, residence residential address, employer or
Kansas adjusted gross income of a taxpayer who may have a duty of
support in a title IV-D case to the secretary of the Kansas department for
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HB 2764 256
children and families for use solely in administrative or judicial
proceedings to establish, modify or enforce such support obligation in a
title IV-D case. In addition to any other limits on use, such use shall be
allowed only where when subject to a protective order which that prohibits
disclosure outside of the title IV-D proceeding. As used in this section,
"title IV-D case" means a case being administered pursuant to part D of
title IV of the federal social security act, 42 U.S.C. § 651 et seq., and
amendments thereto. Any person receiving any information under the
provisions of this subsection shall be subject to the confidentiality
provisions of subsection (b) and to the penalty provisions of subsection
(e);
(9) permit the commissioner of internal revenue of the United States,
or the proper official of any state imposing an income tax, or the
authorized representative of either , to inspect the income tax returns made
under this act and. The secretary of revenue may make available or furnish
to the taxing officials of any other state or, the commissioner of internal
revenue of the United States or other taxing officials of the federal
government, or their authorized representatives , information contained in
income tax reports or returns or any audit thereof or the report of any
investigation made with respect thereto, filed pursuant to the income tax
laws, as the secretary may consider proper, but such information shall not
be used for any other purpose than that of the administration of tax laws of
such state, the state of Kansas or of the United States;
(10) communicate to the executive director of the Kansas lottery
information as to whether a person, partnership or corporation is current in
the filing of all applicable tax returns and in the payment of all taxes,
interest and penalties to the state of Kansas, excluding items under formal
appeal, for the purpose of determining whether such person, partnership or
corporation is eligible to be selected as a lottery retailer;
(11) communicate to the executive director of the Kansas racing
commission as to whether a person, partnership or corporation has failed
to meet any tax obligation to the state of Kansas for the purpose of
determining whether such person, partnership or corporation is eligible for
a facility owner license or facility manager license pursuant to the Kansas
parimutuel racing act;
(12) provide such information to the executive director of the Kansas
public employees retirement system for the purpose of determining that
certain individuals' reported compensation is in compliance with the
Kansas public employees retirement act, K.S.A. 74-4901 et seq., and
amendments thereto;
(13) (A) provide taxpayer information of persons suspected of
violating K.S.A. 44-766, and amendments thereto, to the secretary of labor
or such secretary's designee for the purpose of determining compliance by
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any person with the provisions of K.S.A. 44-703(i)(3)(D) and 44-766 and
44-768, and amendments thereto. The information to be provided shall
include all relevant information in the possession of the department of
revenue necessary for the secretary of labor to make a proper
determination of compliance with the provisions of K.S.A. 44-703(i)(3)(D)
and 44-766 and 44-768 , and amendments thereto, and to calculate any
unemployment contribution taxes due. Such information to be provided by
the department of revenue shall include, but not be limited to, withholding
tax and payroll information, the identity of any person that has been or is
currently being audited or investigated in connection with the
administration and enforcement of the withholding and declaration of
estimated tax act, K.S.A. 79-3294 et seq., and amendments thereto, and the
results or status of such audit or investigation;
(B) any person receiving tax information under the provisions of this
paragraph shall be subject to the same duty of confidentiality imposed by
law upon the personnel of the department of revenue and shall be subject
to any civil or criminal penalties imposed by law for violations of such
duty of confidentiality; and
(C) each of the secretary of labor and the secretary of revenue may
adopt rules and regulations necessary to effect the provisions of this
paragraph;
(14) provide such information to the state treasurer for the sole
purpose of carrying out the provisions of K.S.A. 58-3934, and
amendments thereto. Such information shall be limited to current and prior
addresses of taxpayers or associated persons who may have knowledge as
to the location of an owner of unclaimed property. For the purposes of this
paragraph, "associated persons" includes spouses or dependents listed on
income tax returns;
(15) after receipt of information pursuant to subsection (f), forward
such information and provide the following reported Kansas individual
income tax information for each listed defendant, if available, to the state
board of indigents' defense services in an electronic format and in the
manner determined by the secretary: (A) The defendant's name; (B) social
security number; (C) Kansas adjusted gross income; (D) number of
exemptions claimed; and (E) the relevant tax year of such records. Any
social security number provided to the secretary and the state board of
indigents' defense services pursuant to this section shall remain
confidential; and
(16) disclose taxpayer information that is received from income tax
returns to the department of commerce that may be disclosed pursuant to
the provisions of K.S.A. 2025 Supp. 74-50,227, and amendments thereto,
for the purpose of including such information in the database required by
K.S.A. 2025 Supp. 74-50,227, and amendments thereto.
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HB 2764 258
(d) Any person receiving information under the provisions of
subsection (c) shall be subject to the confidentiality provisions of
subsection (b) and to the penalty provisions of subsection (e).
(e) Any violation of subsection (b) or (c) is a class A nonperson
misdemeanor and, if the offender is an officer or employee of the state,
such officer or employee shall be dismissed from office.
(f) For the purpose of determining whether a defendant is financially
able to employ legal counsel under the provisions of K.S.A. 22-4504, and
amendments thereto, in all felony cases with appointed counsel where the
defendant's social security number is accessible from the records of the
district court, the court shall electronically provide the defendant's name,
social security number, district court case number and county to the
secretary of revenue in the manner and format agreed to by the office of
judicial administration and the secretary.
(g) Nothing in this section shall be construed to allow disclosure of
the amount of income or any particulars set forth or disclosed in any
report, return, federal return or federal return information, where such
disclosure is prohibited by the federal internal revenue code as in effect on
September 1, 1996, and amendments thereto, related federal internal
revenue rules or regulations, or other federal law.
New Sec. 54. The provisions of this act shall be known and may be
cited as the Kansas unemployment insurance modernization and
conformity act.
Sec. 55. K.S.A. 44-701, 44-702, 44-704a, 44-704b, 44-706a, 44-
710d, 44-710e, 44-710f, 44-710i, 44-711, 44-712, 44-713, 44-713a, 44-
714, 44-715, 44-716, 44-716a, 44-718, 44-719, 44-720, 44-721, 44-722,
44-723, 44-724, 44-725, 44-727, 44-758, 44-759, 44-760, 44-761, 44-762,
44-763, 44-764, 44-765, 44-766, 44-767, 44-768, 44-769, 44-770, 44-773
and 44-777 and K.S.A. 2025 Supp. 44-703, 44-704, 44-705, 44-706, 44-
709, 44-709b, 44-710, 44-710a, 44-710b, 44-717, 44-757, 44-772, 44-774,
44-775 and 79-3234 are hereby repealed.
Sec. 56. This act shall take effect and be in force from and after its
publication in the statute book.
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