SESSION OF 1999



SUPPLEMENTAL NOTE ON

SUBSTITUTE FOR SENATE BILL NO. 270



As Amended by House Committee of the Whole





Brief(1)



Sub. for S.B. 270 amends the Employment Security Law.



Disqualification from Benefits--Absenteeism--Change in Burden of Proof. The bill would require an employer to send a notice of an absenteeism policy and warning of the consequences of violation to an employee at the employee's last known address. If an employee disputes the claim of being absent without good cause, the employee would be charged with showing the majority of absences were for good cause.



Negative Balance Employers. The bill increases the surcharge for negative balance employers not eligible for experience ratings from the current 1 percent to 2 percent. Other negative balance employers show a doubled increase in surcharges.



End of Moratorium--Phase-In Provisions. Further, the bill would amend the Employment Security Law to phase in unemployment taxes that have been subject to a tax moratorium for most employers for the past five calendar years. The phase-in will cover the years 2000, 2001, and 2002. The Secretary of the Department of Human Resources (DHR) will report to the Legislature, in January and July, on the solvency of the Employment Security Trust Fund. These provisions are from H.B. 2494.



The House Committee of the Whole amended the bill by repealing K.S.A. 44-709a, the provisions of which will be found under K.S.A. 44-709.





Background



The original bill was more expansive than the substitute bill and dealt with additional topics such as seasonal employees and a change of the method of calculation of employer contributions to the Employment Security Trust Fund.



Support for various provisions of the bill, as drafted, included comments on behalf of the Manpower Temporary Services on the change of formula, the National Federation of Independent Business, an attorney from Syracuse, Kansas, and the Kansas Chamber of Commerce and Industry.



Concern was expressed by the Kansas AFL-CIO on the original bill regarding the change of the burden of proof for misconduct, the provision regarding seasonal employees, and the language regarding random drug testing.



The fiscal note was not available.



Conferees expressing support, either full or qualified, for H.B. 2494 included representatives of the Kansas Chamber of Commerce and Industry, the National Federation of Independent Business, and the Kansas AFL-CIO.



The fiscal note on H.B. 2494 indicates no impact on DHR expenditures. The impact on the revenues to the Employment Security Trust Fund is indeterminate at this time.



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/bill_search.html.