Brief⁽¹⁾

H.B. 2534 amends current employment security law, specifically K.S.A. 1997 Supp. 44-705 and disqualifies inmates from receiving unemployment compensation benefits while incarcerated in the custody of the Secretary of the Department of Corrections. The bill prohibits inmates from receiving unemployment compensation while incarcerated irrespective of whether the offender had been employed prior to his or her incarceration, or whether the inmate would be entitled to receive unemployment compensation due to participation in correctional industries programs upon release from confinement. The bill also insures that private industry employment satisfies the federal requirements of the "Prison Made Goods Act."

Further, the bill makes additional changes to the Employment Security Law. Major provisions are as follows:

• conformity changes to K.S.A. 44-717 to update changes made in another bill in 1997 and to update language which is no longer applicable; and



• changes brought about as a result of the passage of two 1997 federal acts--the Balanced Budget Act and the Taxpayer Relief Act;

• election workers and those who perform services for nonprofit elementary or secondary schools operated primarily for religious purposes would be excluded;

• educational assistance to employees would be excluded from the definition of wages; and



• interest payments to employers can be paid out of the Special Employment Security Fund.

Background

The Department of Human Resources recommended the amendment to the benefit eligibility conditions, rather than a revision in the definition of "employment" the Department of Corrections had offered previously in H.B. 2151 during the 1997 Legislative Session. The Department of Corrections supports the bill.

The fiscal note indicates the bill would have no fiscal impact.

The additional changes to the Employment Security Law were made by the Senate Commerce Committee.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.