Ch. 19             1997 Session Laws of Kansas             43

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 44-709 is hereby amended to read as
follows: 44-709. (a) Filing. Claims for benefits shall be made in accor-
dance with rules and regulations adopted by the secretary. The secretary
shall furnish a copy of such rules and regulations to any individual re-
questing them. Each employer shall 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.

(b) Determination. (1) Except as otherwise provided in this subsec-
tion (b)(1), 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
mail 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 telefacsi-
mile machine or by electronic mail. If the required information is not
submitted or postmarked within a response time limit of 10 days after
the mailing date of 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

44             1997 Session Laws of Kansas             Ch. 19

decisions about the claim by the secretary, a referee, the 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 subsection
(d) of K.S.A. 44-706 and amendments thereto, the examiner shall
promptly transmit the claim to a special examiner designated by the sec-
retary 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 de-
cision and shall promptly notify the claimant and the most recent em-
ploying unit of the claimant, that the decision of the examiner is to be
reconsidered, except that no reconsideration shall be made after the ter-
mination 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 de-
cision as provided in subsection (c). The appeal must be filed within 16
calendar days after the mailing of notice to the last known 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 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.

(d) Referees. The secretary shall appoint, in accordance with subsec-
tion (c) of K.S.A. 44-714 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
which is not a Saturday, Sunday or legal holiday.

Ch. 19             1997 Session Laws of Kansas             45

(f) Board of review. (1) There is hereby created a board of review,
hereinafter referred to as the board, consisting of three members. Except
as provided by paragraph (2) of this subsection, each member of the board
shall be appointed for a term of four years as provided in this subsection.
Two members shall be appointed by the governor, subject to confirmation
by the senate as provided in K.S.A. 75-4315b and amendments thereto.
Except as provided by K.S.A. 1996 Supp. 46-2601, no person appointed
to the board, whose appointment is subject to confirmation by the senate,
shall exercise any power, duty or function as a member until confirmed
by the senate. One member shall be representative of employees, one
member shall be representative of employers, and one member shall be
representative of the public in general. The appointment of the employee
representative member of the board shall be made by the governor from
a list of three nominations submitted by the Kansas A.F.L.-C.I.O. The
appointment of the employer representative member of the board shall
be made by the governor from a list of three nominations submitted by
the Kansas chamber of commerce and industry. The appointment of the
public representative member of the board, who, because of vocation,
occupation or affiliation may be deemed not to be representative of either
management or labor, shall be made by the members appointed by the
governor as employee representative and employer representative. If the
two members do not agree and fail to make the appointment of the public
member within 30 days after the expiration of the public member's term
of office, the governor shall appoint the representative of the public. Not
more than two members of the board shall belong to the same political
party.

(2) The terms of members who are serving on the board on the ef-
fective date of this act shall expire on March 15, of the year in which such
member's term would have expired under the provisions of this section
prior to amendment by this act. Thereafter, members shall be appointed
for terms of four years and until their successors are appointed and con-
firmed.

(3) Each member of the 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 appoint-
ment of the member. Each member shall be appointed as representative
of the same special interest group represented by the predecessor of the
member.

(4) Each member of the board shall be entitled to receive as com-
pensation for the member's services at the rate of $15,000 per year, which
rate of compensation shall be effective retroactively to the beginning of
the first payroll period chargeable to the fiscal year ending June 30, 1994,
together with the member's travel and other necessary expenses actually
incurred in the performance of the member's official duties in accordance

46             1997 Session Laws of Kansas             Ch. 19

with rules and regulations adopted by the secretary. Members' compen-
sation and expenses shall be paid from the employment security admin-
istration fund.

(5) The board 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. The board 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
human resources shall appoint an executive secretary of the board and
the executive secretary shall attend the meetings of the board.

(6) The board, 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 shall permit
such further appeal by any of the parties interested in a decision of a
referee which overrules or modifies the decision of an examiner. The
board may remove to itself the proceedings on any claim pending before
a referee. Any proceedings so removed to the board shall be heard in
accordance with the requirements of subsection (c). The board shall
promptly notify the interested parties of its findings and decision.

(7) Two members of the board shall constitute a quorum and no
action of the board shall be valid unless it has the concurrence of at least
two 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 in which 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 board 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 com-
plete 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 duties, the board
shall have access to all of the records which pertain to the disputed claim
and are in the custody of the secretary of human resources 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 admin-
istering this act.

(i) Court review. Any action of the board is subject to review in ac-
cordance with the act for judicial review and civil enforcement of agency
actions. No bond shall be required for commencing an action for such
review. In the absence of an action for such review, the action of the

Ch. 19             1997 Session Laws of Kansas             47

board shall become final 16 calendar days after the date of the mailing
of the decision. 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 the board. 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 board of review or any examiner, special exam-
iner, 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.

Sec. 2. K.S.A. 1996 Supp. 44-710 is hereby amended to read as fol-
lows: 44-710. (a) Payment. Contributions shall accrue and become pay-
able by each contributing employer for each calendar year in which the
contributing employer is subject to the employment security law with
respect to wages paid for employment. Such contributions shall become
due and be paid by each contributing employer to the secretary for the
employment security fund in accordance with such rules and regulations
as the secretary may adopt and shall not be deducted, in whole or in part,
from the wages of individuals in such employer's employ. In the payment
of any contributions, a fractional part of $.01 shall be disregarded unless
it amounts to $.005 or more, in which case it shall be increased to $.01.
Should contributions for any calendar quarter be less than $1, no payment
shall be required.

(b) Rates and base of contributions. (1) Except as provided in para-
graph (2) of this subsection, each contributing employer shall pay contri-
butions on wages paid by the contributing employer during each calendar
year with respect to employment as provided in K.S.A. 44-710a and
amendments thereto.

(2) (A) If the 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, 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 held invalid with the effect that appropriations of funds
by congress and grants thereof to the state of Kansas for the payment of
costs of administration of the employment security law are no longer
available for such purposes, or (B) if employers in Kansas subject to the
payment of tax under the federal unemployment tax act are granted full
credit against such tax for contributions or taxes paid to the secretary of

48             1997 Session Laws of Kansas             Ch. 19

human resources, then, and in either such case, beginning with the year
in which the unavailability of federal appropriations and grants for such
purpose occurs or in which such change in liability for payment of such
federal tax occurs and for each year thereafter, the rate of contributions
of each contributing employer shall be equal to the total of .5% and the
rate of contributions as determined for such contributing employer under
K.S.A. 44-710a and amendments thereto. The amount of contributions
which each contributing employer becomes liable to pay under this par-
agraph (2) over the amount of contributions which such contributing em-
ployer would be otherwise liable to pay shall be credited to the employ-
ment security administration fund to be disbursed and paid out under the
same conditions and for the same purposes as other moneys are author-
ized to be paid from the employment security administration fund, except
that, if the secretary determines that as of the first day of January of any
year there is an excess in the employment security administration fund
over the amount required to be disbursed during such year, an amount
equal to such excess as determined by the secretary shall be transferred
to the employment security fund.

(c) Charging of benefit payments. (1) The secretary shall maintain a
separate account for each contributing employer, and shall credit the
contributing employer's 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 em-
ployer's service prior claims or rights to the amounts paid by such em-
ployer into the employment security fund either on such employer's own
behalf or on behalf of such individuals. Benefits paid shall be charged
against the accounts of each base period employer in the proportion that
the base period wages paid to an eligible individual by each such employer
bears to the total wages in the base period. Benefits shall be charged to
contributing employers' accounts and rated governmental employers' ac-
counts upon the basis of benefits paid during each twelve-month period
ending on the computation date.

(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 claimant was separated from the claimant's most recent em-
ployment with such employer under any of the following conditions: (i)
Discharged for misconduct or gross misconduct connected with the in-
dividual's work; or (ii) leaving work voluntarily without good cause attrib-
utable to the claimant's work or the employer.

(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 dur-
ing 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

Ch. 19             1997 Session Laws of Kansas             49

provides the secretary with information as required by rules and regula-
tions. For the purposes of this subsection (c)(2)(B), ``part-time employ-
ment'' means any employment when an individual works concurrently for
two or more employers and also works less than full-time for at least one
of those employers 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 ac-
count 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 em-
ployers and governmental rated employers shall be charged an amount
equal to all extended benefits paid.

(D) No contributing employer or rated governmental employer's ac-
count will be charged for benefits paid a claimant while pursuing an ap-
proved training course as defined in subsection (s) of K.S.A. 44-703 and
amendments thereto.

(E) No contributing employer or rated governmental employer's ac-
count 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 Decem-
ber 31, 1977, wages for insured work shall include wages paid for previ-
ously uncovered services. For the purposes of this subsection (c)(2)(F),
the term ``previously uncovered services'' means services which were not
covered employment, at any time during the one-year period ending De-
cember 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 which:

(i) Are agricultural labor as defined in subsection (w) of K.S.A. 44-
703 and amendments thereto or domestic service as defined in subsection
(aa) of K.S.A. 44-703 and amendments thereto, or

(ii) are services performed by an employee of this state or a political
subdivision thereof, as provided in subsection (i)(3)(E) of K.S.A. 44-703
and amendments thereto, or

(iii) are services performed by an employee of a nonprofit educational
institution which is not an institution of higher education.

(3) The examiner shall notify any base period employer whose ac-
count will be charged with benefits paid 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 employ-
ment. Such notice shall become final and benefits charged to the base

50             1997 Session Laws of Kansas             Ch. 19

period employer's account in accordance with the claim unless within 10
calendar days from the date the notice was mailed sent, the base period
employer requests in writing that the examiner reconsider the determi-
nation and furnishes any required information in accordance with the
secretary's rules and regulations. In a similar manner, a notice of an ad-
ditional 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 mailed sent to such base period employer. For purposes of this
subsection (c)(3), if the required information is not submitted or post-
marked within a response time limit of 10 days after the mailing date of
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 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 pro-
visions of K.S.A. 44-709 and amendments thereto.

(4) Time, computation and extension. In computing the period of
time for a base period employer response or 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
which is not a Saturday, Sunday or legal holiday.

(d) Pooled fund. All contributions and payments in lieu of contribu-
tions and benefit cost payments to the employment security fund shall
be pooled and available to pay benefits to any individual entitled thereto
under the employment security law, regardless of the source of such con-
tributions or payments in lieu of contributions or benefit cost payments.

(e) Election to become reimbursing employer; payment in lieu of con-
tributions. (1) Any governmental entity for which services are performed
as described in subsection (i)(3)(E) of K.S.A. 44-703 and amendments
thereto or any nonprofit organization or group of nonprofit organizations
described in section 501(c)(3) of the federal internal revenue code of 1986
which 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 subsection (e)(1) and agree to pay the
secretary for the employment security fund an amount equal to the

Ch. 19             1997 Session Laws of Kansas             51

amount of regular benefits and 1/2 of the extended benefits paid that are
attributable to service in the employ of such reimbursing employer, ex-
cept that each reimbursing governmental employer shall pay an amount
equal to the amount of regular benefits and extended benefits paid for
weeks of unemployment beginning after December 31, 1978, to individ-
uals for weeks of unemployment which begin during the effective period
of such election.

(A) Any employer identified in this subsection (e)(1) may elect to
become a reimbursing employer for a period encompassing not less than
four complete calendar years if such employer files with the secretary a
written notice of such election within the thirty-day period immediately
following January 1 of any calendar year or within the thirty-day period
immediately following the date on which a determination of subjectivity
to the employment security law is issued, whichever occurs later.

(B) Any employer which makes an election to become a reimbursing
employer in accordance with subparagraph (A) of this subsection (e)(1)
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 subsection (e)(1) which has re-
mained 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 subsec-
tion (e)(1) of any determination which the secretary may make of its status
as an employer and of the effective date of any election which it makes
to become a reimbursing employer and of any termination of such elec-
tion. Such determinations shall be subject to reconsideration, appeal and
review in accordance with the provisions of K.S.A. 44-710b and amend-
ments thereto.

(2) Reimbursement reports and payments. Payments in lieu of con-
tributions shall be made in accordance with the provisions of paragraph
(A) of this subsection (e)(2) by all reimbursing employers except the state
of Kansas. Each reimbursing employer shall report total wages paid dur-
ing each calendar quarter by filing quarterly wage reports with the sec-
retary which shall become due on or before the 25th day of the first month

52             1997 Session Laws of Kansas             Ch. 19

following the last month of the calendar quarter or in accordance with
such rules and regulations as the secretary may adopt.

(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 re-
imbursing employer, except the state of Kansas, (i) an amount to be paid
which is equal to the full amount of regular benefits plus 1/2 of the amount
of extended benefits paid during such quarter or other prescribed period
that 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 shall be certified an amount to
be paid which is equal to the full amount of regular benefits and extended
benefits paid during such quarter or other prescribed period that is at-
tributable to service in the employ of such reimbursing governmental
employer.

(B) Payment of any bill rendered under paragraph (A) of this sub-
section (e)(2) shall be made not later than 30 days after such bill was
mailed to the last known address of the reimbursing employer, or oth-
erwise was delivered to such reimbursing employer, unless there has been
an application for review and redetermination in accordance with para-
graph (D) of this subsection (e)(2).

(C) Payments made by any reimbursing employer under the provi-
sions of this subsection (e)(2) 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) 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. If any 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.

(F) In the discretion of the secretary, any employer who elects to
become liable for payments in lieu of contributions and any reimbursing
employer 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 de-

Ch. 19             1997 Session Laws of Kansas             53

linquent employer under this subsection (e)(2)(F), in the case of a delin-
quent 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. The
amount of the bond or deposit required by this subsection (e)(2)(F) 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 this subsection (e)(2)(F) 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.

(G) The state of Kansas shall make reimbursement payments quar-
terly at a fiscal year rate which shall be based upon: (i) The available
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 au-
diting fees charged to state agencies shall be deducted from the amounts
collected for the reimbursement payments under this paragraph (G) 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 there-
for in the fiscal year rate which will 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 which may be required for the next fiscal
year.

54             1997 Session Laws of Kansas             Ch. 19

(3) Allocation of benefit costs. The reimbursing account of each re-
imbursing employer shall be charged the full amount of regular benefits
and 1/2 of the amount of extended benefits paid except that each reim-
bursing governmental employer's account shall be charged the full
amount of regular benefits and extended benefits paid for weeks of un-
employment 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 gov-
ernmental employer's account shall be charged for payments of extended
benefits which are wholly reimbursed to the state by the federal govern-
ment.

(A) Proportionate allocation (when fewer than all reimbursing base
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 which 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 re-
imbursing employers). If benefits paid to an individual are based on wages
paid by two or more reimbursing employers, the amount of benefits pay-
able by each such employer shall be an amount which 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 subsection (e)(4). Upon ap-
proval 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

Ch. 19             1997 Session Laws of Kansas             55

or upon application by the group. Upon establishment of the account,
each member of the group shall be liable for payments in lieu of contri-
butions with respect to each calendar quarter in the amount that bears
the same ratio to the total benefits paid in such quarter that are attrib-
utable 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 subsection (e)(4), for ad-
dition of new members to, and withdrawal of active members from such
accounts, and for the determination of the amounts that are payable un-
der this subsection (e)(4) by members of the group and the time and
manner of such payments.

Sec. 3. K.S.A. 1996 Supp. 44-718 is hereby amended to read as fol-
lows: 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 re-
muneration 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 human resources or representatives of the secretary or by any court or
any officer thereof. Any individual claiming benefits in any proceeding
before the secretary of human resources 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 human resources. 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, execution, attachment, or any other remedy whatsoever

56             1997 Session Laws of Kansas             Ch. 19

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 sub-
section shall be valid.

(d) Support exception. (1) An individual filing a new claim for un-
employment 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 unemployment
compensation, the secretary shall notify the state or local support enforce-
ment agency enforcing such obligation that the individual has been de-
termined 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 sub-
mitted 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 462(e) 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 unemploy-
ment compensation and paid by such individual to the state or local sup-
port enforcement agency in satisfaction of the individual's support obli-
gations.

(5) For purposes of paragraphs (1) through (4), ``unemployment com-
pensation'' means any compensation payable under the employment se-
curity law after application of the recoupment provisions of subsection
(d) of K.S.A. 44-719 and amendments thereto, (including amounts pay-
able by the secretary pursuant to an agreement under any federal law
providing for compensation, assistance or allowances with respect to un-
employment).

(6) This subsection applies only if appropriate arrangements have

Ch. 19             1997 Session Laws of Kansas             57

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 de-
scribed 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 en-
forcement agency'' means any agency of this state or a political subdivision
thereof operating pursuant to a plan described in paragraph (7).

(e) (1) An individual filing a new claim for unemployment compen-
sation 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; and

(D) the individual shall be permitted to change a previously elected
withholding status.

(2) Amounts deducted and withheld from unemployment compen-
sation shall remain in the unemployment fund until transferred to the
federal 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 per-
taining 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 un-
employment compensation, child support obligations, food stamp over-
issuances or any other amounts required to be deducted and withheld
under this act.

(f) (1) An individual filing a new claim for unemployment compen-
sation 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 over-
issuance of food stamps and who is determined to be eligible for unem-
ployment compensation.

(2) The secretary shall deduct and withhold from any unemployment
compensation payable to an individual who owes an uncollected overis-
suance:

58             1997 Session Laws of Kansas             Ch. 19

(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 sub-
mitted 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
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 unemploy-
ment 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 compen-
sation'' 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 re-
imbursement 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.

Sec. 4. K.S.A. 1996 Supp. 44-709, 44-710 and 44-718 are hereby re-
pealed.

Sec. 5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved March 26, 1997.