9             AN  ACT concerning the employment security law; relating to employer
10             contributions and disqualification for benefits; amending K.S.A. 1998
11             Supp. 44-706 and 44-710a and repealing the existing sections.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1998 Supp. 44-706 is hereby amended to read as
15       follows: 44-706. An individual shall be disqualified for benefits:
16             (a) If the individual left work voluntarily without good cause attrib-
17       utable to the work or the employer, subject to the other provisions of this
18       subsection (a). After a temporary job assignment, failure of an individual
19       to affirmatively request an additional assignment on the next succeeding
20       workday, if required by the employment agreement, after completion of
21       a given work assignment, shall constitute leaving work voluntarily. The
22       disqualification shall begin the day following the separation and shall con-
23       tinue until after the individual has become reemployed and has had earn-
24       ings from insured work of at least three times the individual's weekly
25       benefit amount. An individual shall not be disqualified under this sub-
26       section (a) if:
27             (1) The individual was forced to leave work because of illness or
28       injury upon the advice of a licensed and practicing health care provider
29       and, upon learning of the necessity for absence, immediately notified the
30       employer thereof, or the employer consented to the absence, and after
31       recovery from the illness or injury, when recovery was certified by a prac-
32       ticing health care provider, the individual returned to the employer and
33       offered to perform services and the individual's regular work or compa-
34       rable and suitable work was not available; as used in this paragraph (1)
35       "health care provider" means any person licensed by the proper licensing
36       authority of any state to engage in the practice of medicine and surgery,
37       osteopathy, chiropractic, dentistry, optometry, podiatry or psychology;
38             (2) the individual left temporary work to return to the regular
39       employer;
40             (3) the individual left work to enlist in the armed forces of the United
41       States, but was rejected or delayed from entry;
42             (4) the individual left work because of the voluntary or involuntary
43       transfer of the individual's spouse from one job to another job, which is

Sub. SB 270

  1       for the same employer or for a different employer, at a geographic loca-
  2       tion which makes it unreasonable for the individual to continue work at
  3       the individual's job;
  4             (5) the individual left work because of hazardous working conditions;
  5       in determining whether or not working conditions are hazardous for an
  6       individual, the degree of risk involved to the individual's health, safety
  7       and morals, the individual's physical fitness and prior training and the
  8       working conditions of workers engaged in the same or similar work for
  9       the same and other employers in the locality shall be considered; as used
10       in this paragraph (5), "hazardous working conditions" means working con-
11       ditions that could result in a danger to the physical or mental well-being
12       of the individual; each determination as to whether hazardous working
13       conditions exist shall include, but shall not be limited to, a consideration
14       of (A) the safety measures used or the lack thereof, and (B) the condition
15       of equipment or lack of proper equipment; no work shall be considered
16       hazardous if the working conditions surrounding the individual's work are
17       the same or substantially the same as the working conditions generally
18       prevailing among individuals performing the same or similar work for
19       other employers engaged in the same or similar type of activity;
20             (6) the individual left work to enter training approved under section
21       236(a)(1) of the federal trade act of 1974, provided the work left is not
22       of a substantially equal or higher skill level than the individual's past
23       adversely affected employment (as defined for purposes of the federal
24       trade act of 1974), and wages for such work are not less than 80% of the
25       individual's average weekly wage as determined for the purposes of the
26       federal trade act of 1974;
27             (7) the individual left work because of unwelcome harassment of the
28       individual by the employer or another employee of which the employing
29       unit had knowledge;
30             (8) the individual left work to accept better work; each determination
31       as to whether or not the work accepted is better work shall include, but
32       shall not be limited to, consideration of (A) the rate of pay, the hours of
33       work and the probable permanency of the work left as compared to the
34       work accepted, (B) the cost to the individual of getting to the work left
35       in comparison to the cost of getting to the work accepted, and (C) the
36       distance from the individual's place of residence to the work accepted in
37       comparison to the distance from the individual's residence to the work
38       left;
39             (9) the individual left work as a result of being instructed or re-
40       quested by the employer, a supervisor or a fellow employee to perform
41       a service or commit an act in the scope of official job duties which is in
42       violation of an ordinance or statute;
43             (10) the individual left work because of a violation of the work agree-

Sub. SB 270

  1       ment by the employing unit and, before the individual left, the individual
  2       had exhausted all remedies provided in such agreement for the settlement
  3       of disputes before terminating; or
  4             (11) after making reasonable efforts to preserve the work, the indi-
  5       vidual left work due to a personal emergency of such nature and com-
  6       pelling urgency that it would be contrary to good conscience to impose a
  7       disqualification.
  8             (b) If the individual has been discharged for misconduct connected
  9       with the individual's work. The disqualification shall begin the day follow-
10       ing the separation and shall continue until after the individual becomes
11       reemployed and has had earnings from insured work of at least three
12       times the individual's determined weekly benefit amount, except that if
13       an individual is discharged for gross misconduct connected with the in-
14       dividual's work, such individual shall be disqualified for benefits until such
15       individual again becomes employed and has had earnings from insured
16       work of at least eight times such individual's determined weekly benefit
17       amount. In addition, all wage credits attributable to the employment from
18       which the individual was discharged for gross misconduct connected with
19       the individual's work shall be canceled. No such cancellation of wage
20       credits shall affect prior payments made as a result of a prior separation.
21             (1) For the purposes of this subsection (b), "misconduct" is defined
22       as a violation of a duty or obligation reasonably owed the employer as a
23       condition of employment. The term "gross misconduct" as used in this
24       subsection (b) shall be construed to mean conduct evincing extreme, will-
25       ful or wanton misconduct as defined by this subsection (b).
26             (2) For the purposes of this subsection (b), the use of or impairment
27       caused by an alcoholic beverage, a cereal malt beverage or a nonprescri-
28       bed controlled substance by an individual while working shall be conclu-
29       sive evidence of misconduct and the possession of an alcoholic beverage,
30       a cereal malt beverage or a nonprescribed controlled substance by an
31       individual while working shall be prima facie evidence of conduct which
32       is a violation of a duty or obligation reasonably owed to the employer as
33       a condition of employment. For purposes of this subsection (b), the dis-
34       qualification of an individual from employment which disqualification is
35       required by the provisions of the drug free workplace act, 41 U.S.C. 701
36       et seq. or is otherwise required by law because the individual refused to
37       submit to or failed a chemical test which was required by law, shall be
38       conclusive evidence of misconduct. Refusal to submit to a chemical test
39       administered pursuant to an employee assistance program or other drug
40       or alcohol treatment program in which the individual was participating
41       voluntarily or as a condition of further employment shall also be conclu-
42       sive evidence of misconduct. Alcoholic liquor shall be defined as provided
43       in K.S.A. 41-102 and amendments thereto. Cereal malt beverage shall be

Sub. SB 270

  1       defined as provided in K.S.A. 41-2701 and amendments thereto. Con-
  2       trolled substance shall be defined as provided in K.S.A. 65-4101 and
  3       amendments thereto of the uniform controlled substances act. As used
  4       in this subsection (b)(2), "required by law" means required by a federal
  5       or state law, a federal or state rule or regulation having the force and
  6       effect of law, a county resolution or municipal ordinance, or a policy
  7       relating to public safety adopted in open meeting by the governing body
  8       of any special district or other local governmental entity. An individual's
  9       refusal to submit to a chemical test shall not be admissible evidence to
10       prove misconduct unless the test is required by and meets the standards
11       of the drug free workplace act, 41 U.S.C. 701 et seq., the test was ad-
12       ministered as part of an employee assistance program or other drug or
13       alcohol treatment program in which the employee was participating vol-
14       untarily or as a condition of further employment, the test was otherwise
15       required by law and the test constituted a required condition of employ-
16       ment for the individual's job, or, there was probable cause to believe that
17       the individual used, possessed or was impaired by an alcoholic beverage,
18       a cereal malt beverage or a controlled substance while working. The re-
19       sults of a chemical test shall not be admissible evidence to prove miscon-
20       duct unless the following conditions were met:
21             (A) Either (i) the test was required by law, the test was administered
22       pursuant to the drug free workplace act, 41 U.S.C. 701 et seq., (ii) the
23       test was administered as part of an employee assistance program or other
24       drug or alcohol treatment program in which the employee was partici-
25       pating voluntarily or as a condition of further employment, (iii) the test
26       was required by law and the test constituted a required condition of em-
27       ployment for the individual's job, or (iv) there was probable cause to
28       believe that the individual used, had possession of, or was impaired by
29       the alcoholic beverage, the cereal malt beverage or the controlled sub-
30       stance while working;
31             (B) the test sample was collected either (i) as prescribed by the drug
32       free workplace act, 41 U.S.C. 701 et seq., (ii) as prescribed by an em-
33       ployee assistance program or other drug or alcohol treatment program in
34       which the employee was participating voluntarily or as a condition of
35       further employment, (iii) as prescribed by a test which was required by
36       law and which constituted a required condition of employment for the
37       individual's job, or (iv) at a time contemporaneous with the events estab-
38       lishing probable cause;
39             (C) the collecting and labeling of the test sample was performed by
40       a licensed health care professional or any other individual authorized to
41       collect or label test samples by federal or state law, or a federal or state
42       rule or regulation having the force and effect of law, including law en-
43       forcement personnel;

Sub. SB 270

  1             (D) the test was performed by a laboratory approved by the United
  2       States department of health and human services or licensed by the de-
  3       partment of health and environment, except that a blood sample may be
  4       tested for alcohol content by a laboratory commonly used for that purpose
  5       by state law enforcement agencies;
  6             (E) the test was confirmed by gas chromatography, gas chromatog-
  7       raphy-mass spectroscopy or other comparably reliable analytical method,
  8       except that no such confirmation is required for a blood alcohol sample;
  9       and
10             (F) the foundation evidence must establish, beyond a reasonable
11       doubt, that the test results were from the sample taken from the
12       individual.
13             (3) For the purposes of this subsection (b), misconduct shall include,
14       but not be limited to repeated absence, including lateness, from sched-
15       uled work if the facts show:
16             (A) The individual was absent without good cause;
17             (B) the absence was in violation of the employer's written absentee-
18       ism policy;
19             (C) the employer gave or sent written notice to the individual, at the
20       individual's last known address, that future absence may or will result in
21       discharge; and
22             (D) the employee had knowledge of the employer's written absen-
23       teeism policy; and
24             (E) if an employee disputes being absent without good cause, the
25       employee shall present evidence that a majority of the employee's absences
26       were for good cause.
27             (4) An individual shall not be disqualified under this subsection (b)
28       if the individual is discharged under the following circumstances:
29             (A) The employer discharged the individual after learning the indi-
30       vidual was seeking other work or when the individual gave notice of future
31       intent to quit;
32             (B) the individual was making a good-faith effort to do the assigned
33       work but was discharged due to: (i) Inefficiency, (ii) unsatisfactory per-
34       formance due to inability, incapacity or lack of training or experience, (iii)
35       isolated instances of ordinary negligence or inadvertence, (iv) good-faith
36       errors in judgment or discretion, or (v) unsatisfactory work or conduct
37       due to circumstances beyond the individual's control; or
38             (C) the individual's refusal to perform work in excess of the contract
39       of hire.
40             (c) If the individual has failed, without good cause, to either apply
41       for suitable work when so directed by the employment office of the sec-
42       retary of human resources, or to accept suitable work when offered to
43       the individual by the employment office, the secretary of human re-

Sub. SB 270

  1       sources, or an employer, such disqualification shall begin with the week
  2       in which such failure occurred and shall continue until the individual
  3       becomes reemployed and has had earnings from insured work of at least
  4       three times such individual's determined weekly benefit amount. In de-
  5       termining whether or not any work is suitable for an individual, the sec-
  6       retary of human resources, or a person or persons designated by the
  7       secretary, shall consider the degree of risk involved to health, safety and
  8       morals, physical fitness and prior training, experience and prior earnings,
  9       length of unemployment and prospects for securing local work in the
10       individual's customary occupation or work for which the individual is rea-
11       sonably fitted by training or experience, and the distance of the available
12       work from the individual's residence. Notwithstanding any other provi-
13       sions of this act, an otherwise eligible individual shall not be disqualified
14       for refusing an offer of suitable employment, or failing to apply for suit-
15       able employment when notified by an employment office, or for leaving
16       the individual's most recent work accepted during approved training, in-
17       cluding training approved under section 236(a)(1) of the trade act of 1974,
18       if the acceptance of or applying for suitable employment or continuing
19       such work would require the individual to terminate approved training
20       and no work shall be deemed suitable and benefits shall not be denied
21       under this act to any otherwise eligible individual for refusing to accept
22       new work under any of the following conditions: (1) If the position offered
23       is vacant due directly to a strike, lockout or other labor dispute; (2) if the
24       remuneration, hours or other conditions of the work offered are substan-
25       tially less favorable to the individual than those prevailing for similar work
26       in the locality; (3) if as a condition of being employed, the individual would
27       be required to join or to resign from or refrain from joining any labor
28       organization.
29             (d) For any week with respect to which the secretary of human re-
30       sources, or a person or persons designated by the secretary, finds that the
31       individual's unemployment is due to a stoppage of work which exists be-
32       cause of a labor dispute or there would have been a work stoppage had
33       normal operations not been maintained with other personnel previously
34       and currently employed by the same employer at the factory, establish-
35       ment or other premises at which the individual is or was last employed,
36       except that this subsection (d) shall not apply if it is shown to the satis-
37       faction of the secretary of human resources, or a person or persons des-
38       ignated by the secretary, that: (1) The individual is not participating in or
39       financing or directly interested in the labor dispute which caused the
40       stoppage of work; and (2) the individual does not belong to a grade or
41       class of workers of which, immediately before the commencement of the
42       stoppage, there were members employed at the premises at which the
43       stoppage occurs any of whom are participating in or financing or directly

Sub. SB 270

  1       interested in the dispute. If in any case separate branches of work which
  2       are commonly conducted as separate businesses in separate premises are
  3       conducted in separate departments of the same premises, each such de-
  4       partment shall, for the purpose of this subsection (d), be deemed to be
  5       a separate factory, establishment or other premises. For the purposes of
  6       this subsection (d), failure or refusal to cross a picket line or refusal for
  7       any reason during the continuance of such labor dispute to accept the
  8       individual's available and customary work at the factory, establishment or
  9       other premises where the individual is or was last employed shall be
10       considered as participation and interest in the labor dispute.
11             (e) For any week with respect to which or a part of which the indi-
12       vidual has received or is seeking unemployment benefits under the un-
13       employment compensation law of any other state or of the United States,
14       except that if the appropriate agency of such other state or the United
15       States finally determines that the individual is not entitled to such un-
16       employment benefits, this disqualification shall not apply.
17             (f) For any week with respect to which the individual is entitled to
18       receive any unemployment allowance or compensation granted by the
19       United States under an act of congress to ex-service men and women in
20       recognition of former service with the military or naval services of the
21       United States.
22             (g) For the period of one year beginning with the first day following
23       the last week of unemployment for which the individual received benefits,
24       or for one year from the date the act was committed, whichever is the
25       later, if the individual, or another in such individual's behalf with the
26       knowledge of the individual, has knowingly made a false statement or
27       representation, or has knowingly failed to disclose a material fact to obtain
28       or increase benefits under this act or any other unemployment compen-
29       sation law administered by the secretary of human resources.
30             (h) For any week with respect to which the individual is receiving
31       compensation for temporary total disability or permanent total disability
32       under the workmen's compensation law of any state or under a similar
33       law of the United States.
34             (i) For any week of unemployment on the basis of service in an
35       instructional, research or principal administrative capacity for an educa-
36       tional institution as defined in subsection (v) of K.S.A. 44-703 and amend-
37       ments thereto, if such week begins during the period between two suc-
38       cessive academic years or terms or, when an agreement provides instead
39       for a similar period between two regular but not successive terms during
40       such period or during a period of paid sabbatical leave provided for in
41       the individual's contract, if the individual performs such services in the
42       first of such academic years or terms and there is a contract or a reason-
43       able assurance that such individual will perform services in any such ca-

Sub. SB 270

  1       pacity for any educational institution in the second of such academic years
  2       or terms.
  3             (j) For any week of unemployment on the basis of service in any
  4       capacity other than service in an instructional, research, or administrative
  5       capacity in an educational institution, as defined in subsection (v) of
  6       K.S.A. 44-703 and amendments thereto, if such week begins during the
  7       period between two successive academic years or terms if the individual
  8       performs such services in the first of such academic years or terms and
  9       there is a reasonable assurance that the individual will perform such serv-
10       ices in the second of such academic years or terms, except that if benefits
11       are denied to the individual under this subsection (j) and the individual
12       was not offered an opportunity to perform such services for the educa-
13       tional institution for the second of such academic years or terms, such
14       individual shall be entitled to a retroactive payment of benefits for each
15       week for which the individual filed a timely claim for benefits and for
16       which benefits were denied solely by reason of this subsection (j).
17             (k) For any week of unemployment on the basis of service in any
18       capacity for an educational institution as defined in subsection (v) of
19       K.S.A. 44-703 and amendments thereto, if such week begins during an
20       established and customary vacation period or holiday recess, if the indi-
21       vidual performs services in the period immediately before such vacation
22       period or holiday recess and there is a reasonable assurance that such
23       individual will perform such services in the period immediately following
24       such vacation period or holiday recess.
25             (l) For any week of unemployment on the basis of any services, sub-
26       stantially all of which consist of participating in sports or athletic events
27       or training or preparing to so participate, if such week begins during the
28       period between two successive sport seasons or similar period if such
29       individual performed services in the first of such seasons or similar per-
30       iods and there is a reasonable assurance that such individual will perform
31       such services in the later of such seasons or similar periods.
32             (m) For any week on the basis of services performed by an alien
33       unless such alien is an individual who was lawfully admitted for perma-
34       nent residence at the time such services were performed, was lawfully
35       present for purposes of performing such services, or was permanently
36       residing in the United States under color of law at the time such services
37       were performed, including an alien who was lawfully present in the
38       United States as a result of the application of the provisions of section
39       212(d)(5) of the federal immigration and nationality act. Any data or in-
40       formation required of individuals applying for benefits to determine
41       whether benefits are not payable to them because of their alien status
42       shall be uniformly required from all applicants for benefits. In the case
43       of an individual whose application for benefits would otherwise be ap-

Sub. SB 270

  1       proved, no determination that benefits to such individual are not payable
  2       because of such individual's alien status shall be made except upon a
  3       preponderance of the evidence.
  4             (n) For any week in which an individual is receiving a governmental
  5       or other pension, retirement or retired pay, annuity or other similar pe-
  6       riodic payment under a plan maintained by a base period employer and
  7       to which the entire contributions were provided by such employer, except
  8       that: (1) If the entire contributions to such plan were provided by the
  9       base period employer but such individual's weekly benefit amount ex-
10       ceeds such governmental or other pension, retirement or retired pay,
11       annuity or other similar periodic payment attributable to such week, the
12       weekly benefit amount payable to the individual shall be reduced (but
13       not below zero) by an amount equal to the amount of such pension,
14       retirement or retired pay, annuity or other similar periodic payment
15       which is attributable to such week; or (2) if only a portion of contributions
16       to such plan were provided by the base period employer, the weekly
17       benefit amount payable to such individual for such week shall be reduced
18       (but not below zero) by the prorated weekly amount of the pension, re-
19       tirement or retired pay, annuity or other similar periodic payment after
20       deduction of that portion of the pension, retirement or retired pay, an-
21       nuity or other similar periodic payment that is directly attributable to the
22       percentage of the contributions made to the plan by such individual; or
23       (3) if the entire contributions to the plan were provided by such individ-
24       ual, or by the individual and an employer (or any person or organization)
25       who is not a base period employer, no reduction in the weekly benefit
26       amount payable to the individual for such week shall be made under this
27       subsection (n); or (4) whatever portion of contributions to such plan were
28       provided by the base period employer, if the services performed for the
29       employer by such individual during the base period, or remuneration
30       received for the services, did not affect the individual's eligibility for, or
31       increased the amount of, such pension, retirement or retired pay, annuity
32       or other similar periodic payment, no reduction in the weekly benefit
33       amount payable to the individual for such week shall be made under this
34       subsection (n). The conditions specified in clause (4) of this subsection
35       (n) shall not apply to payments made under the social security act or the
36       railroad retirement act of 1974, or the corresponding provisions of prior
37       law. Payments made under these acts shall be treated as otherwise pro-
38       vided in this subsection (n). If the reduced weekly benefit amount is not
39       a multiple of $1, it shall be reduced to the next lower multiple of $1.
40             (o) For any week of unemployment on the basis of services per-
41       formed in any capacity and under any of the circumstances described in
42       subsection (i), (j) or (k) which an individual performed in an educational
43       institution while in the employ of an educational service agency. For the

Sub. SB 270

  1       purposes of this subsection (o), the term "educational service agency"
  2       means a governmental agency or entity which is established and operated
  3       exclusively for the purpose of providing such services to one or more
  4       educational institutions.
  5             (p) For any week of unemployment on the basis of service as a school
  6       bus or other motor vehicle driver employed by a private contractor to
  7       transport pupils, students and school personnel to or from school-related
  8       functions or activities for an educational institution, as defined in subsec-
  9       tion (v) of K.S.A. 44-703 and amendments thereto, if such week begins
10       during the period between two successive academic years or during a
11       similar period between two regular terms, whether or not successive, if
12       the individual has a contract or contracts, or a reasonable assurance
13       thereof, to perform services in any such capacity with a private contractor
14       for any educational institution for both such academic years or both such
15       terms. An individual shall not be disqualified for benefits as provided in
16       this subsection (p) for any week of unemployment on the basis of service
17       as a bus or other motor vehicle driver employed by a private contractor
18       to transport persons to or from nonschool-related functions or activities.
19             (q) For any week of unemployment on the basis of services per-
20       formed by the individual in any capacity and under any of the circum-
21       stances described in subsection (i), (j), (k) or (o) which are provided to
22       or on behalf of an educational institution, as defined in subsection (v) of
23       K.S.A. 44-703 and amendments thereto, while the individual is in the
24       employ of an employer which is a governmental entity or any employer
25       described in section 501(c)(3) of the federal internal revenue code of 1986
26       which is exempt from income under section 501(a) of the code.
27             (r) For any week in which an individual is registered at and attending
28       an established school, training facility or other educational institution, or
29       is on vacation during or between two successive academic years or terms.
30       An individual shall not be disqualified for benefits as provided in this
31       subsection (r) provided:
32             (1) The individual was engaged in full-time employment concurrent
33       with the individual's school attendance; or
34             (2) the individual is attending approved training as defined in sub-
35       section (s) of K.S.A. 44-703 and amendments thereto; or
36             (3) the individual is attending evening, weekend or limited day time
37       classes, which would not affect availability for work, and is otherwise
38       eligible under subsection (c) of K.S.A. 44-705 and amendments thereto.
39             (s) For any week with respect to which an individual is receiving or
40       has received remuneration in the form of a back pay award or settlement.
41       The remuneration shall be allocated to the week or weeks in the manner
42       as specified in the award or agreement, or in the absence of such speci-
43       ficity in the award or agreement, such remuneration shall be allocated to

Sub. SB 270

  1       the week or weeks in which such remuneration, in the judgment of the
  2       secretary, would have been paid.
  3             (1) For any such weeks that an individual receives renumeration in
  4       the form of a back pay award or settlement, an overpayment will be
  5       established in the amount of unemployment benefits paid and shall be
  6       collected from the claimant.
  7             (2) If an employer chooses to withhold from a back pay award or
  8       settlement, amounts paid to a claimant while they claimed unemployment
  9       benefits, such employer shall pay the department the amount withheld.
10       With respect to such amount, the secretary shall have available all of the
11       collection remedies authorized or provided in section K.S.A. 44-717, and
12       amendments thereto.
13             Sec.  2. K.S.A. 1998 Supp. 44-710a is hereby amended to read as
14       follows: 44-710a. (a) Classification of employers by the secretary. The
15       term "employer" as used in this section refers to contributing employers.
16       The secretary shall classify employers in accordance with their actual ex-
17       perience in the payment of contributions on their own behalf and with
18       respect to benefits charged against their accounts with a view of fixing
19       such contribution rates as will reflect such experience. If, as of the date
20       such classification of employers is made, the secretary finds that any em-
21       ploying unit has failed to file any report required in connection therewith,
22       or has filed a report which the secretary finds incorrect or insufficient,
23       the secretary shall make an estimate of the information required from
24       such employing unit on the basis of the best evidence reasonably available
25       to the secretary at the time, and notify the employing unit thereof by mail
26       addressed to its last known address. Unless such employing unit shall file
27       the report or a corrected or sufficient report as the case may be, within
28       15 days after the mailing of such notice, the secretary shall compute such
29       employing unit's rate of contributions on the basis of such estimates, and
30       the rate as so determined shall be subject to increase but not to reduction
31       on the basis of subsequently ascertained information. The secretary shall
32       determine the contribution rate of each employer in accordance with the
33       requirements of this section.
34             (1) New employers. (A) No employer will be eligible for a rate com-
35       putation until there have been 24 consecutive calendar months immedi-
36       ately preceding the computation date throughout which benefits could
37       have been charged against such employer's account.
38             (B)  (i) Employers who are not eligible for a rate computation shall
39       pay contributions at an assigned rate equal to the sum of 1% plus the
40       greater of the average rate assigned in the preceding calendar year to all
41       employers in such industry division or the average rate assigned to all
42       covered employers during the preceding calendar year, except that in no
43       instance shall any such assigned rate be less than 2%. Employers engaged

Sub. SB 270

  1       in more than one type of industrial activity shall be classified by principal
  2       activity. All rates assigned will remain in effect for a complete calendar
  3       year. If the sale or acquisition of a new establishment would require re-
  4       classification of the employer to a different industry division, the em-
  5       ployer would be promptly notified, and the contribution rate applicable
  6       to the new industry division would become effective the following January
  7       1. For rate years 1995, 1996, 1997, 1998 and 1999 all employers who are
  8       not eligible for rate computation shall pay contributions at the rate of 1%.
  9       However, for rate year 1996, 1997, 1998 and 1999 the 1% contribution
10       rate for all employers who are not eligible for a rate computation shall
11       not be effective if the reserve fund ratio in column A of schedule III as
12       determined by this section is less than 1.75%.
13             (ii) For purposes of this subsection (a), employers shall be classified
14       by industrial activity in accordance with standard procedures as set forth
15       in rules and regulations adopted by the secretary.
16             (C) "Computation date" means June 30 of each calendar year with
17       respect to rates of contribution applicable to the calendar year beginning
18       with the following January 1. In arriving at contribution rates for each
19       calendar year, contributions paid on or before July 31 following the com-
20       putation date for employment occurring on or prior to the computation
21       date shall be considered for each contributing employer who has been
22       subject to this act for a sufficient period of time to have such employer's
23       rate computed under this subsection (a).
24             (2) Eligible employers. (A) A reserve ratio shall be computed for each
25       eligible employer by the following method: Total benefits charged to the
26       employer's account for all past years shall be deducted from all contri-
27       butions paid by such employer for all such years. The balance, positive
28       or negative, shall be divided by the employer's average annual payroll,
29       and the result shall constitute the employer reserve ratio.
30             (B) Negative account balance employers as defined in subsection (d)
31       shall pay contributions at the rate of 5.4% for each calendar year. How-
32       ever, for rate years 1996, 1997, 1998 and 1999 all negative account bal-
33       ance eligible employers will be assigned rates and pay contributions in
34       accordance with the following schedule.
35                                                 SCHEDULE IIA

36	Rate Group	Reserve Ratio		Effective Rates
37		Negative Eligible Accounts
38	1      Less than	0.00 but greater than   -0.40		1.1
39	2	-0.40 but greater than   -0.80		1.2
40	3	-0.80 but greater than   -1.20		1.3
41	4	-1.20 but greater than   -1.60		1.4
42	5	-1.60 but greater than   -2.00		1.5
43	6	-2.00 but greater than   -2.40		1.6

Sub. SB 270
                                                                  13

1	7	-2.40 but greater than   -2.80	1.7
2	8	-2.80 but greater than   -3.20	1.8
3	9	-3.20 but greater than   -3.60	1.9
4	10	-3.60 but greater than   -4.00	2.0
5	11	-4.00 but greater than   -4.40	2.1
6	12	-4.40 but greater than   -4.80	2.2
7	13	-4.80 but greater than   -5.20	2.3
8	14	-5.20 but greater than   -5.60	2.4
9	15	-5.60 but greater than   -6.00	2.5
10	16	-6.00 but greater than   -6.40	2.6
11	17	-6.40 but greater than   -6.80	2.7
12	18	-6.80 but greater than   -7.20	2.8
13	19	-7.20 but greater than   -7.60	2.9
14	20	-7.60 but greater than   -8.00	3.0
15	21	-8.00 but greater than   -8.40	3.1
16	22	-8.40 but greater than   -8.80	3.2
17	23	-8.80 but greater than   -9.20	3.3
18	24	-9.20 but greater than   -9.60	3.4
19	25	-9.60 but greater than -10.00	3.5
20	26	-10.00 but greater than -10.40	3.6
21	27	-10.40 but greater than -10.80	3.7
22	28	-10.80 but greater than -11.20	3.8
23	29	-11.20 but greater than -11.60	3.9
24	30	-11.60 but greater than -12.00	4.0
25	31	-12.00 but greater than -12.40	4.1
26	32	-12.40 but greater than -12.80	4.2
27	33	-12.80 but greater than -13.20	4.3
28	34	-13.20 but greater than -13.60	4.4
29	35	-13.60 but greater than -14.00	4.5
30	36	-14.00 but greater than -14.40	4.6
31	37	-14.40 but greater than -14.80	4.7
32	38	-14.80 but greater than -15.20	4.8
33	39	-15.20 but greater than -15.60	4.9
34	40	-15.60 but greater than -16.00	5.0
35	41	-16.00 but greater than -16.40	5.1
36	42	-16.40 but greater than -16.80	5.2
37	43	-16.80 but greater than -17.20	5.3
38	44	-17.20 but greater than -17.60	5.4
39	45	-17.60 but greater than -18.00	5.5
40	46	-18.00 but greater than -18.40	5.6
41	47	-18.40 but greater than -18.80	5.7
42	48	-18.80 but greater than -19.20	5.8
43	49	-19.20 but greater than -19.60	5.9

Sub. SB 270
                                                                 14

1

50

-19.60

and less 6.0

  2        (C) Eligible employers, other than negative account balance employ-
  3       ers, who do not meet the average annual payroll requirements as stated
  4       in subsection (a)(2) of K.S.A. 44-703 and amendments thereto, will be
  5       issued the maximum rate indicated in subsection (a)(3)(C) of this section
  6       until such employer establishes a new period of 24 consecutive calendar
  7       months immediately preceding the computation date throughout which
  8       benefits could have been charged against such employer's account by
  9       resuming the payment of wages. Contribution rates effective for each
10       calendar year thereafter shall be determined as prescribed below.
11             (D) As of each computation date, the total of the taxable wages paid
12       during the twelve-month period prior to the computation date by all em-
13       ployers eligible for rate computation, except negative account balance
14       employers, shall be divided into 51 approximately equal parts designated
15       in column A of schedule I as "rate groups," except, with regard to a year
16       in which the taxable wage base changes. The taxable wages used in the
17       calculation for such a year and the following year shall be an estimate of
18       what the taxable wages would have been if the new taxable wage base
19       had been in effect during the entire twelve-month period prior to the
20       computation date. The lowest numbered of such rate groups shall consist
21       of the employers with the most favorable reserve ratios, as defined in this
22       section, whose combined taxable wages paid are less than 1.96% of all
23       taxable wages paid by all eligible employers. Each succeeding higher
24       numbered rate group shall consist of employers with reserve ratios that
25       are less favorable than those of employers in the preceding lower num-
26       bered rate groups and whose taxable wages when combined with the
27       taxable wages of employers in all lower numbered rate groups equal the
28       appropriate percentage of total taxable wages designated in column B of
29       schedule I. Each eligible employer, other than a negative account balance
30       employer, shall be assigned an experience factor designated under col-
31       umn C of schedule I in accordance with the rate group to which the
32       employer is assigned on the basis of the employer's reserve ratio and
33       taxable payroll. If an employer's taxable payroll falls into more than one
34       rate group the employer shall be assigned the experience factor of the
35       lower numbered rate group. If one or more employers have reserve ratios
36       identical to that of the last employer included in the next lower numbered
37       rate group, all such employers shall be assigned the experience factor
38       designated to such last employer, notwithstanding the position of their
39       taxable payroll in column B of schedule I.

Sub. SB 270
                                                              15

  1                              SCHEDULE I -- Eligible Employers

2	Column A	Column B	Column C
3	Rate	Cumulative	Experience factor
4	group	taxable payroll	(Ratio to total wages)

5	1	Less than 1.96%	.025%
6	2	1.96% but less than 3.92	.04
7	3	3.92 but less than 5.88	.08
8	4	5.88 but less than 7.84	.12
9	5	7.84 but less than 9.80	.16
10	6	9.80 but less than 11.76	.20
11	7	11.76 but less than 13.72	.24
12	8	13.72 but less than 15.68	.28
13	9	15.68 but less than 17.64	.32
14	10	17.64 but less than 19.60	.36
15	11	19.60 but less than 21.56	.40
16	12	21.56 but less than 23.52	.44
17	13	23.52 but less than 25.48	.48
18	14	25.48 but less than 27.44	.52
19	15	27.44 but less than 29.40	.56
20	16	29.40 but less than 31.36	.60
21	17	31.36 but less than 33.32	.64
22	18	33.32 but less than 35.28	.68
23	19	35.28 but less than 37.24	.72
24	20	37.24 but less than 39.20	.76
25	21	39.20 but less than 41.16	.80
26	22	41.16 but less than 43.12	.84
27	23	43.12 but less than 45.08	.88
28	24	45.08 but less than 47.04	.92
29	25	47.04 but less than 49.00	.96
30	26	49.00 but less than 50.96	1.00
31	27	50.96 but less than 52.92	1.04
32	28	52.92 but less than 54.88	1.08
33	29	54.88 but less than 56.84	1.12
34	30	56.84 but less than 58.80	1.16
35	31	58.80 but less than 60.76	1.20
36	32	60.76 but less than 62.72	1.24
37	33	62.72 but less than 64.68	1.28
38	34	64.68 but less than 66.64	1.32
39	35	66.64 but less than 68.60	1.36
40	36	68.60 but less than 70.56	1.40
41	37	70.56 but less than 72.52	1.44
42	38	72.52 but less than 74.48	1.48
43	39	74.48 but less than 76.44	1.52

Sub. SB 270

                                                                 16

1	40	76.44 but less than 78.40	1.56
2	41	78.40 but less than 80.36	1.60
3	42	80.36 but less than 82.32	1.64
4	43	82.32 but less than 84.28	1.68
5	44	84.28 but less than 86.24	1.72
6	45	86.24 but less than 88.20	1.76
7	46	88.20 but less than 90.16	1.80
8	47	90.16 but less than 92.12	1.84
9	48	92.12 but less than 94.08	1.88
10	49	94.08 but less than 96.04	1.92
11	50	96.04 but less than 98.00	1.96
12	51	98.00 and over	2.00

13        (E) Negative account balance employers shall, in addition to paying
14       the rate provided for in subsection (a)(2)(B) of this section, except for
15       rate years 1996, 1997, 1998 and 1999, pay a surcharge based on the size
16       of the employer's negative reserve ratio, the calculation which is provided
17       for in subsection (a)(2) of this section. The amount of the surcharge shall
18       be determined from column B of schedule II of this section. Each neg-
19       ative account balance employer who does not satisfy the requirements to
20       have an average annual payroll, as defined by subsection (a)(2) of K.S.A.
21       44-703 and amendments thereto, shall be assigned a surcharge of 1% 2%.
22       Contribution payments made pursuant to this subsection (a)(2)(E) shall
23       be credited to the appropriate account of such negative account balance
24       employer.
25                          SCHEDULE II -- Surcharge on Negative Accounts

26      Column A	Column B
27      Negative Reserve Ratio	Surcharge as a percent
28	of taxable wages

29	Less than 2.0%	0.10% 0.20%
30	2.0% but less than 4.0	.20% .40
31	4.0 but less than 6.0	.30 .60
32	6.0 but less than 8.0	.40 .80
33	8.0 but less than 10.0	.50 1.00
34	10.0 but less than 12.0	.60 1.20
35	12.0 but less than 14.0	.70 1.40
36	14.0 but less than 16.0	.80 1.60
37	16.0 but less than 18.0	.90 1.80
38	18.0 and over	1.00 2.00

39             (3) Planned yield. (A) For rate year 1995, and all years thereafter,
40       the average required yield shall be determined from schedule III of this
41       section, and the planned yield on total wages in column B of schedule III
42       shall be determined by the reserve fund ratio in column A of schedule
43       III. The reserve fund ratio shall be determined by dividing total assets in

Sub. SB 270

  1       the employment security fund provided for in subsection (a) of K.S.A.
  2       44-712 and amendments thereto, excluding all moneys credited to the
  3       account of this state pursuant to section 903 of the federal social security
  4       act, as amended, which have been appropriated by the state legislature,
  5       whether or not withdrawn from the trust fund, and excluding contribu-
  6       tions not yet paid on July 31 by total payrolls for contributing employers
  7       for the preceding fiscal year which ended June 30.
  8                                       SCHEDULE III -- Fund Control
  9                                               Ratios to Total Wages

10	Column A	Column B
11	Reserve Fund Ratio	Planned Yield
12	4.500 and over	0.00
13	4.475 but less than 4.500	0.01
14	4.450 but less than 4.475	0.02
15	4.425 but less than 4.450	0.03
16	4.400 but less than 4.425	0.04
17	4.375 but less than 4.400	0.05
18	4.350 but less than 4.375	0.06
19	4.325 but less than 4.350	0.07
20	4.300 but less than 4.325	0.08
21	4.275 but less than 4.300	0.09
22	4.250 but less than 4.275	0.10
23	4.225 but less than 4.250	0.11
24	4.200 but less than 4.225	0.12
25	4.175 but less than 4.200	0.13
26	4.150 but less than 4.175	0.14
27	4.125 but less than 4.150	0.15
28	4.100 but less than 4.125	0.16
29	4.075 but less than 4.100	0.17
30	4.050 but less than 4.075	0.18
31	4.025 but less than 4.050	0.19
32	4.000 but less than 4.025	0.20
33	3.950 but less than 4.000	0.21
34	3.900 but less than 3.950	0.22
35	3.850 but less than 3.900	0.23
36	3.800 but less than 3.850	0.24
37	3.750 but less than 3.800	0.25
38	3.700 but less than 3.750	0.26
39	3.650 but less than 3.700	0.27
40	3.600 but less than 3.650	0.28
41	3.550 but less than 3.600	0.29
42	3.500 but less than 3.550	0.30
43	3.450 but less than 3.500	0.31

Sub. SB 270

Sub. SB 270

Sub. SB 270

  1       the new taxable wage base had been in effect during all of the preceding
  2       fiscal year ending June 30.
  3             (C) Effective rates. Except with regard to rates for negative account
  4       balance employers, employer contribution rates to be effective for the
  5       ensuing calendar year shall be computed by adjusting proportionately the
  6       experience factors from schedule I of this section to the required yield
  7       on taxable wages. For the purposes of this subsection (a)(3), all rates
  8       computed shall be rounded to the nearest .01% and for calendar year
  9       1983 and ensuing calendar years, the maximum effective contribution rate
10       shall not exceed 5.4%. For rate years 1995, 1996, 1997, 1998 and 1999,
11       employers, who are current in filing of all reports and in payment of all
12       contributions due, shall be issued a contributions rate of 0%. To be eli-
13       gible for the 0% rate for rate year 1995, an employer must file all delin-
14       quent reports and pay all contributions due within a 30-day period fol-
15       lowing the date of mailing of the amended rating notice. For rate year
16       1996, 1997, 1998 and 1999 in order to be eligible for the 0% rate, em-
17       ployers must file all reports due and pay all contributions due on or before
18       January 31, 1996, January 31, 1997, January 31, 1998 and January 31,
19       1999, respectively. However, for rate year 1996, 1997, 1998 and 1999 the
20       0% contribution rate for such eligible employers shall not be effective if
21       the reserve fund ratio in column A of schedule III as determined by this
22       section is less than 1.75%. For rate years 1996, 1997, 1998 and 1999 the
23       rates in schedule IIA shall apply unless the reserve fund ratio in column
24       A of schedule III as determined by this section is less than 1.75%.
25             (b) Successor classification. (1) For the purposes of this subsection
26       (b), whenever an employing unit, whether or not it is an "employing unit"
27       within the meaning of subsection (g) of K.S.A. 44-703 and amendments
28       thereto, becomes an employer pursuant to subsection (h)(4) of K.S.A. 44-
29       703 and amendments thereto or is an employer at the time of acquisition
30       and meets the definition of a "successor employer" as defined by sub-
31       section (dd) of K.S.A. 44-703 and amendments thereto and is controlled
32       substantially either directly or indirectly by legally enforceable means or
33       otherwise by the same interest or interests, shall acquire the experience
34       rating factors of the predecessor employer. These factors consist of all
35       contributions paid, benefit experience and annual payrolls of the prede-
36       cessor employer.
37             (2) A successor employer as defined by subsection (h)(4) or subsec-
38       tion (dd) of K.S.A. 44-703 and amendments thereto may receive the ex-
39       perience rating factors of the predecessor employer if an application is
40       made to the secretary or the secretary's designee in writing within 120
41       days of the date of the transfer.
42             (3) Whenever an employing unit, whether or not it is an "employing
43       unit" within the meaning of subsection (g) of K.S.A. 44-703 and amend-

Sub. SB 270

  1       ments thereto, acquires or in any manner succeeds to a percentage of an
  2       employer's annual payroll which is less than 100% and intends to continue
  3       the acquired percentage as a going business, (A) shall acquire the same
  4       percentage of the predecessor's experience factors if the employer is con-
  5       trolled substantially, either directly or indirectly or by legally enforceable
  6       means or otherwise, by the same interest or interests or (B) may acquire
  7       the same percentage of the predecessor's experience factors if: (i) The
  8       predecessor employer and successor employing unit make an application
  9       in writing on the form prescribed by the secretary, (ii) the application is
10       submitted within 120 days of the date of the transfer, (iii) the successor
11       employing unit is or becomes an employer subject to this act immediately
12       after the transfer, (iv) the percentage of the experience rating factors
13       transferred shall not be thereafter used in computing the contribution
14       rate for the predecessor employer, and (v) the secretary finds that such
15       transfer will not tend to defeat or obstruct the object and purposes of this
16       act.
17             (4) If the acquiring employing unit was an employer subject to this
18       act prior to the date of the transfer, the rate of contribution for the period
19       from such date to the end of the then current contribution year shall be
20       the same as the contribution rate prior to the date of the transfer. An
21       employing unit which was not subject to this act prior to the date of the
22       transfer shall have a newly computed rate based on the transferred ex-
23       perience rating factors as of the computation date immediately preceding
24       the date of acquisition. These experience rating factors consist of all con-
25       tributions paid, benefit experience and annual payrolls.
26             (5) Whenever an employer's account has been terminated as pro-
27       vided in subsections (d) and (e) of K.S.A. 44-711 and amendments thereto
28       and the employer continues with employment to liquidate the business
29       operations, that employer shall continue to be an "employer" subject to
30       the employment security law as provided in subsection (h)(8) of K.S.A.
31       44-703 and amendments thereto. The rate of contribution from the date
32       of transfer to the end of the then current calendar year shall be the same
33       as the contribution rate prior to the date of the transfer. At the completion
34       of the then current calendar year, the rate of contribution shall be that
35       of a "new employer" as described in subsection (a)(1) of this section.
36             (6) No rate computation will be permitted an employing unit suc-
37       ceeding to the experience of another employing unit pursuant to this
38       section for any period subsequent to such succession except in accordance
39       with rules and regulations adopted by the secretary. Any such regulations
40       shall be consistent with federal requirements for additional credit allow-
41       ance in section 3303 of the federal internal revenue code of 1986, and
42       consistent with the provisions of this act.
43             (c) Voluntary contributions. Notwithstanding any other provision of

Sub. SB 270

  1       the employment security law, any employer may make voluntary pay-
  2       ments for the purpose of reducing or maintaining a reduced rate in ad-
  3       dition to the contributions required under this section. Such voluntary
  4       payments may be made only during the thirty-day period immediately
  5       following the date of mailing of experience rating notices for a calendar
  6       year. All such voluntary contribution payments shall be paid prior to the
  7       expiration of 120 days after the beginning of the year for which such rates
  8       are effective. The amount of voluntary contributions shall be credited to
  9       the employer's account as of the next preceding computation date and
10       the employer's rate shall be computed accordingly, except that no em-
11       ployer's rate shall be reduced more than five rate groups as provided in
12       schedule I of this section as the result of a voluntary payment. An em-
13       ployer not having a negative account balance may have such employer's
14       rate reduced not more than five rate groups as provided in schedule I of
15       this section as a result of a voluntary payment. An employer having a
16       negative account balance may have such employer's rate reduced to that
17       prescribed for rate group 51 of schedule I of this section by making a
18       voluntary payment in the amount of such negative account balance or to
19       that rate prescribed for rate groups 50 through 47 of schedule I of this
20       section by making an additional voluntary payment that would increase
21       such employer's reserve ratio to the lower limit required for such rate
22       groups 50 through 47. Under no circumstances shall voluntary payments
23       be refunded in whole or in part.
24             (d) As used in this section, "negative account balance employer"
25       means an eligible employer whose total benefits charged to such em-
26       ployer's account for all past years have exceeded all contributions paid by
27       such employer for all such years.
28             (e) The secretary of human resources shall annually prepare and
29       submit a certification as to the solvency and adequacy of the amount
30       credited to the state of Kansas' account in the federal employment se-
31       curity trust fund to the governor and the employment security advisory
32       council. Commencing in calendar year 1994, the certification shall be
33       submitted on or before December 1 of each calendar year and shall be
34       for the twelve-month period ending on June 30 of that calendar year. In
35       arriving at the certification contributions paid on or before July 31 fol-
36       lowing the twelve-month period ending date of June 30 shall be consid-
37       ered. Each certification shall be used to determine the need for any ad-
38       justment to schedule III in subsection (a)(3)(A) and to assist in preparing
39       legislation to accomplish any such adjustment. 
40       Sec.  3. K.S.A. 1998 Supp. 44-706 and 44-710a are hereby repealed.
41         Sec.  4. This act shall take effect and be in force from and after its
42       publication in the statute book.