Session Law

Identifying Information:L. 2001 ch. 139
Other Identifying Information:2001 Senate Substitute for House Bill 2303
Tax Type:Other
Brief Description:An Act concerning the employment security law; relating to the classification of employers thereunder; amending K.S.A. 44-703, 44-706, 44-710, 44-710a and 44-717 and repealing the existing sections.
Keywords:


Body:


CHAPTER 139

Senate Substitute for HOUSE BILL No. 2303


An Act concerning the employment security law; relating to the classification of employers

thereunder; amending K.S.A. 44-703, 44-706, 44-710, 44-710a and 44-717 and repealing the existing sections.




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

Section 1. K.S.A. 44-703 is hereby amended to read as follows: 44-

703. As used in this act, unless the context clearly requires otherwise:

(a) (1) ``Annual payroll'' means the total amount of wages paid or

payable by an employer during the calendar year.

(2) ``Average annual payroll'' means the average of the annual payrolls

of any employer for the last three calendar years immediately preceding

the computation date as hereinafter defined if the employer has been

continuously subject to contributions during those three calendar years

and has paid some wages for employment during each of such years. In

determining contribution rates for the calendar year, if an employer has

not been continuously subject to contribution for the three calendar years

immediately preceding the computation date but has paid wages subject

to contributions during only the two calendar years immediately preced-

ing the computation date, such employer's ``average annual payroll'' shall

be the average of the payrolls for those two calendar years.

(3) ``Total wages'' means the total amount of wages paid or payable

by an employer during the calendar year, including that part of remu-

neration in excess of the limitation prescribed as provided in subsection

(o)(1) of this section.

(b) ``Base period'' means the first four of the last five completed cal-

endar quarters immediately preceding the first day of an individual's ben-

efit year, except that the base period in respect to combined wage claims

means the base period as defined in the law of the paying state.

(c) (1) ``Benefits'' means the money payments payable to an individ-

ual, as provided in this act, with respect to such individual's unemploy-

ment.

(2) ``Regular benefits'' means benefits payable to an individual under

this act or under any other state law, including benefits payable to federal

civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85,

other than extended benefits.

(d) ``Benefit year'' with respect to any individual, means the period

beginning with the first day of the first week for which such individual

files a valid claim for benefits, and such benefit year shall continue for

one full year. In the case of a combined wage claim, the benefit year shall

be the benefit year of the paying state. Following the termination of a

benefit year, a subsequent benefit year shall commence on the first day

of the first week with respect to which an individual next files a claim for

benefits. When such filing occurs with respect to a week which overlaps

the preceding benefit year, the subsequent benefit year shall commence

on the first day immediately following the expiration date of the preceding

benefit year. Any claim for benefits made in accordance with subsection

(a) of K.S.A. 44-709 and amendments thereto shall be deemed to be a

``valid claim'' for the purposes of this subsection if the individual has been

paid wages for insured work as required under subsection (e) of K.S.A.

44-705 and amendments thereto. Whenever a week of unemployment

overlaps two benefit years, such week shall, for the purpose of granting

waiting-period credit or benefit payment with respect thereto, be deemed

to be a week of unemployment within that benefit year in which the

greater part of such week occurs.

(e) ``Commissioner'' or ``secretary'' means the secretary of human re-

sources.

(f) (1) ``Contributions'' means the money payments to the state em-

ployment security fund which are required to be made by employers on

account of employment under K.S.A. 44-710 and amendments thereto,

and voluntary payments made by employers pursuant to such statute.

(2) ``Payments in lieu of contributions'' means the money payments

to the state employment security fund from employers which are required

to make or which elect to make such payments under subsection (e) of

K.S.A. 44-710 and amendments thereto.

(g) ``Employing unit'' means any individual or type of organization,

including any partnership, association, limited liability company, agency

or department of the state of Kansas and political subdivisions thereof,

trust, estate, joint-stock company, insurance company or corporation,

whether domestic or foreign including nonprofit corporations, or the re-

ceiver, trustee in bankruptcy, trustee or successor thereof, or the legal

representatives of a deceased person, which has in its employ one or more

individuals performing services for it within this state. All individuals per-

forming services within this state for any employing unit which maintains

two or more separate establishments within this state shall be deemed to

be employed by a single employing unit for all the purposes of this act.

Each individual employed to perform or to assist in performing the work

of any agent or employee of an employing unit shall be deemed to be

employed by such employing unit for all the purposes of this act, whether

such individual was hired or paid directly by such employing unit or by

such agent or employee, provided the employing unit had actual or con-

structive knowledge of the employment.

(h) ``Employer'' means:

(1) (A) Any employing unit for which agricultural labor as defined in

subsection (w) of this section is performed and which during any calendar

quarter in either the current or preceding calendar year paid remunera-

tion in cash of $20,000 or more to individuals employed in agricultural

labor or for some portion of a day in each of 20 different calendar weeks,

whether or not such weeks were consecutive, in either the current or the

preceding calendar year, employed in agricultural labor 10 or more in-

dividuals, regardless of whether they were employed at the same moment

of time.

(B) For the purpose of this subsection (h)(1), any individual who is a

member of a crew furnished by a crew leader to perform service in ag-

ricultural labor for any other person shall be treated as an employee of

such crew leader if:

(i) Such crew leader holds a valid certificate of registration under the

federal migrant and seasonal agricultural workers protection act or sub-

stantially all the members of such crew operate or maintain tractors,

mechanized harvesting or cropdusting equipment or any other mecha-

nized equipment, which is provided by such crew leader; and

(ii) such individual is not in the employment of such other person

within the meaning of subsection (i) of this section.

(C) For the purpose of this subsection (h)(1), in the case of any in-

dividual who is furnished by a crew leader to perform service in agricul-

tural labor for any other person and who is not treated as an employee

of such crew leader:

(i) Such other person and not the crew leader shall be treated as the

employer of such individual; and

(ii) such other person shall be treated as having paid cash remuner-

ation to such individual in an amount equal to the amount of cash re-

muneration paid to such individual by the crew leader, either on the crew

leader's own behalf or on behalf of such other person, for the service in

agricultural labor performed for such other person.

(D) For the purposes of this subsection (h)(1) ``crew leader'' means

an individual who:

(i) Furnishes individuals to perform service in agricultural labor for

any other person;

(ii) pays, either on such individual's own behalf or on behalf of such

other person, the individuals so furnished by such individual for the serv-

ice in agricultural labor performed by them; and

(iii) has not entered into a written agreement with such other person

under which such individual is designated as an employee of such other

person.

(2) (A) Any employing unit which: (i) In any calendar quarter in ei-

ther the current or preceding calendar year paid for service in employ-

ment wages of $1,500 or more, or (ii) for some portion of a day in each

of 20 different calendar weeks, whether or not such weeks were consec-

utive, in either the current or preceding calendar year, had in employment

at least one individual, whether or not the same individual was in em-

ployment in each such day.

(B) Employment of individuals to perform domestic service or agri-

cultural labor and wages paid for such service or labor shall not be con-

sidered in determining whether an employing unit meets the criteria of

this subsection (h)(2).

(3) Any employing unit for which service is employment as defined

in subsection (i)(3)(E) of this section.

(4) (A) Any employing unit, whether or not it is an employing unit

under subsection (g) of this section, which acquires or in any manner

succeeds to (i) substantially all of the employing enterprises, organization,

trade or business, or (ii) substantially all the assets, of another employing

unit which at the time of such acquisition was an employer subject to this

act;

(B) any employing unit which is controlled substantially, either di-

rectly or indirectly by legally enforceable means or otherwise, by the same

interest or interests, whether or not such interest or interests are an em-

ploying unit under subsection (g) of this section, which acquires or in any

manner succeeds to a portion of an employer's annual payroll, which is

less than 100% of such employer's annual payroll, and which intends to

continue the acquired portion as a going business.

(5) Any employing unit which paid cash remuneration of $1,000 or

more in any calendar quarter in the current or preceding calendar year

to individuals employed in domestic service as defined in subsection (aa)

of this section.

(6) Any employing unit which having become an employer under this

subsection (h) has not, under subsection (b) of K.S.A. 44-711 and amend-

ments thereto, ceased to be an employer subject to this act.

(7) Any employing unit which has elected to become fully subject to

this act in accordance with subsection (c) of K.S.A. 44-711 and amend-

ments thereto.

(8) Any employing unit not an employer by reason of any other par-

agraph of this subsection (h), for which within either the current or pre-

ceding calendar year services in employment are or were performed with

respect to which such employing unit is liable for any federal tax against

which credit may be taken for contributions required to be paid into a

state unemployment compensation fund; or which, as a condition for ap-

proval of this act for full tax credit against the tax imposed by the federal

unemployment tax act, is required, pursuant to such act, to be an ``em-

ployer'' under this act.

(9) Any employing unit 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 the code that had four or more individuals in employ-

ment for some portion of a day in each of 20 different weeks, whether or

not such weeks were consecutive, within either the current or preceding

calendar year, regardless of whether they were employed at the same

moment of time.

(i) ``Employment'' means:

(1) Subject to the other provisions of this subsection, service, includ-

ing service in interstate commerce, performed by

(A) Any active officer of a corporation; or

(B) any individual who, under the usual common law rules applicable

in determining the employer-employee relationship, has the status of an

employee; or

(C) any individual other than an individual who is an employee under

subsection (i)(1)(A) or subsection (i)(1)(B) above who performs services

for remuneration for any person:

(i) As an agent-driver or commission-driver engaged in distributing

meat products, vegetable products, fruit products, bakery products, bev-

erages (other than milk), or laundry or dry-cleaning services, for such

individual's principal; or

(ii) as a traveling or city salesman, other than as an agent-driver or

commission-driver, engaged upon a full-time basis in the solicitation on

behalf of, and the transmission to, a principal (except for side-line sales

activities on behalf of some other person) of orders from wholesalers,

retailers, contractors, or operators of hotels, restaurants, or other similar

establishments for merchandise for resale or supplies for use in their

business operations.

For purposes of subsection (i)(1)(D), the term ``employment'' shall in-

clude services described in paragraphs (i) and (ii) above only if:

(a) The contract of service contemplates that substantially all of the

services are to be performed personally by such individual;

(b) the individual does not have a substantial investment in facilities

used in connection with the performance of the services (other than in

facilities for transportation); and

(c) the services are not in the nature of a single transaction that is not

part of a continuing relationship with the person for whom the services

are performed.

(2) The term ``employment'' shall include an individual's entire serv-

ice within the United States, even though performed entirely outside this

state if,

(A) The service is not localized in any state, and

(B) the individual is one of a class of employees who are required to

travel outside this state in performance of their duties, and

(C) the individual's base of operations is in this state, or if there is no

base of operations, then the place from which service is directed or con-

trolled is in this state.

(3) The term ``employment'' shall also include:

(A) Services performed within this state but not covered by the pro-

visions of subsection (i)(1) or subsection (i)(2) shall be deemed to be

employment subject to this act if contributions are not required and paid

with respect to such services under an unemployment compensation law

of any other state or of the federal government.

(B) Services performed entirely without this state, with respect to no

part of which contributions are required and paid under an unemploy-

ment compensation law of any other state or of the federal government,

shall be deemed to be employment subject to this act only if the individual

performing such services is a resident of this state and the secretary ap-

proved the election of the employing unit for whom such services are

performed that the entire service of such individual shall be deemed to

be employment subject to this act.

(C) Services covered by an arrangement pursuant to subsection (l) of

K.S.A. 44-714 and amendments thereto between the secretary and the

agency charged with the administration of any other state or federal un-

employment compensation law, pursuant to which all services performed

by an individual for an employing unit are deemed to be performed en-

tirely within this state, shall be deemed to be employment if the secretary

has approved an election of the employing unit for whom such services

are performed, pursuant to which the entire service of such individual

during the period covered by such election is deemed to be insured work.

(D) Services performed by an individual for wages or under any con-

tract of hire shall be deemed to be employment subject to this act unless

and until it is shown to the satisfaction of the secretary that: (i) Such

individual has been and will continue to be free from control or direction

over the performance of such services, both under the individual's con-

tract of hire and in fact; and (ii) such service is either outside the usual

course of the business for which such service is performed or that such

service is performed outside of all the places of business of the enterprise

for which such service is performed.

(E) Service performed by an individual in the employ of this state or

any instrumentality thereof, any political subdivision of this state or any

instrumentality thereof, or in the employ of an Indian tribe, as defined

pursuant to section 3306(u) of the federal unemployment tax act, any

instrumentality of more than one of the foregoing or any instrumentality

which is jointly owned by this state or a political subdivision thereof or

Indian tribes and one or more other states or political subdivisions of this

or other states, provided that such service is excluded from ``employment''

as defined in the federal unemployment tax act by reason of section

3306(c)(7) of that act and is not excluded from ``employment'' under

subsection (i)(4)(A) of this section. For purposes of this section, the ex-

clusions from employment in subsections (i)(4)(A) and (i)(4)(L) shall also

be applicable to services performed in the employ of an Indian tribe.

(F) Service performed by an individual in the employ of a religious,

charitable, educational or other organization which is excluded from the

term ``employment'' as defined in the federal unemployment tax act solely

by reason of section 3306(c)(8) of that act, and is not excluded from

employment under paragraphs (I) through (M) of subsection (i)(4).

(G) The term ``employment'' shall include the service of an individual

who is a citizen of the United States, performed outside the United States

except in Canada, in the employ of an American employer (other than

service which is deemed ``employment'' under the provisions of subsec-

tion (i)(2) or subsection (i)(3) or the parallel provisions of another state's

law), if:

(i) The employer's principal place of business in the United States is

located in this state; or

(ii) the employer has no place of business in the United States, but

(A) The employer is an individual who is a resident of this state; or

(B) the employer is a corporation which is organized under the laws

of this state; or

(C) the employer is a partnership or a trust and the number of the

partners or trustees who are residents of this state is greater than the

number who are residents of any other state; or

(iii) none of the criteria of paragraphs (i) and (ii) above of this sub-

section (i)(3)(G) are met but the employer has elected coverage in this

state or, the employer having failed to elect coverage in any state, the

individual has filed a claim for benefits, based on such service, under the

law of this state.

(H) An ``American employer,'' for purposes of subsection (i)(3)(G),

means a person who is:

(i) An individual who is a resident of the United States; or

(ii) a partnership if 2/3 or more of the partners are residents of the

United States; or

(iii) a trust, if all of the trustees are residents of the United States; or

(iv) a corporation organized under the laws of the United States or

of any state.

(I) Notwithstanding subsection (i)(2) of this section, all service per-

formed by an officer or member of the crew of an American vessel or

American aircraft on or in connection with such vessel or aircraft, if the

operating office, from which the operations of such vessel or aircraft op-

erating within, or within and without, the United States are ordinarily and

regularly supervised, managed, directed and controlled is within this state.

(J) Notwithstanding any other provisions of this subsection (i), service

with respect to which a tax is required to be paid under any federal law

imposing a tax against which credit may be taken for contributions re-

quired to be paid into a state unemployment compensation fund or which

as a condition for full tax credit against the tax imposed by the federal

unemployment tax act is required to be covered under this act.

(K) Domestic service in a private home, local college club or local

chapter of a college fraternity or sorority performed for a person who

paid cash remuneration of $1,000 or more in any calendar quarter in the

current calendar year or the preceding calendar year to individuals em-

ployed in such domestic service.

(4) The term ``employment'' shall not include: (A) Service performed

in the employ of an employer specified in subsection (h)(3) of this section

if such service is performed by an individual in the exercise of duties:

(i) As an elected official;

(ii) as a member of a legislative body, or a member of the judiciary,

of a state or, political subdivision or of an Indian tribe;

(iii) as a member of the state national guard or air national guard;

(iv) as an employee serving on a temporary basis in case of fire, storm,

snow, earthquake, flood or similar emergency;

(v) in a position which, under or pursuant to the laws of this state or

tribal law, is designated as a major nontenured policymaking or advisory

position or as a policymaking or advisory position the performance of the

duties of which ordinarily does not require more than eight hours per

week;

(B) service with respect to which unemployment compensation is

payable under an unemployment compensation system established by an

act of congress;

(C) service performed by an individual in the employ of such indi-

vidual's son, daughter or spouse, and service performed by a child under

the age of 21 years in the employ of such individual's father or mother;

(D) service performed in the employ of the United States govern-

ment or an instrumentality of the United States exempt under the con-

stitution of the United States from the contributions imposed by this act,

except that to the extent that the congress of the United States shall

permit states to require any instrumentality of the United States to make

payments into an unemployment fund under a state unemployment com-

pensation law, all of the provisions of this act shall be applicable to such

instrumentalities, and to services performed for such instrumentalities, in

the same manner, to the same extent and on the same terms as to all

other employers, employing units, individuals and services. If this state

shall not be certified for any year by the federal security agency under

section 3304(c) of the federal internal revenue code of 1986, the payments

required of such instrumentalities with respect to such year shall be re-

funded by the secretary from the fund in the same manner and within

the same period as is provided in subsection (f) of K.S.A. 44-717 and

amendments thereto with respect to contributions erroneously collected;

(E) service covered by an arrangement between the secretary and

the agency charged with the administration of any other state or federal

unemployment compensation law pursuant to which all services per-

formed by an individual for an employing unit during the period covered

by such employing unit's duly approved election, are deemed to be per-

formed entirely within the jurisdiction of such other state or federal

agency;

(F) service performed by an individual under the age of 18 in the

delivery or distribution of newspapers or shopping news, not including

delivery or distribution to any point for subsequent delivery or distribu-

tion;

(G) service performed by an individual for an employing unit as an

insurance agent or as an insurance solicitor, if all such service performed

by such individual for such employing unit is performed for remuneration

solely by way of commission;

(H) service performed in any calendar quarter in the employ of any

organization exempt from income tax under section 501(a) of the federal

internal revenue code of 1986 (other than an organization described in

section 401(a) or under section 521 of such code) if the remuneration for

such service is less than $50. In construing the application of the term

``employment,'' if services performed during 1/2 or more of any pay period

by an individual for the person employing such individual constitute em-

ployment, all the services of such individual for such period shall be

deemed to be employment; but if the services performed during more

than 1/2 of any such pay period by an individual for the person employing

such individual do not constitute employment, then none of the services

of such individual for such period shall be deemed to be employment. As

used in this subsection (i)(4)(H) the term ``pay period'' means a period

(of not more than 31 consecutive days) for which a payment of remuner-

ation is ordinarily made to the individual by the person employing such

individual. This subsection (i)(4)(H) shall not be applicable with respect

to services with respect to which unemployment compensation is payable

under an unemployment compensation system established by an act of

congress;

(I) services performed in the employ of a church or convention or

association of churches, or an organization which is operated primarily

for religious purposes and which is operated, supervised, controlled, or

principally supported by a church or convention or association of

churches;

(J) service performed by a duly ordained, commissioned, or licensed

minister of a church in the exercise of such individual's ministry or by a

member of a religious order in the exercise of duties required by such

order;

(K) service performed in a facility conducted for the purpose of car-

rying out a program of:

(i) Rehabilitation for individuals whose earning capacity is impaired

by age or physical or mental deficiency or injury, or

(ii) providing remunerative work for individuals who because of their

impaired physical or mental capacity cannot be readily absorbed in the

competitive labor market, by an individual receiving such rehabilitation

or remunerative work;

(L) service performed as part of an employment work-relief or work-

training program assisted or financed in whole or in part by any federal

agency or an agency of a state or political subdivision thereof or of an

Indian tribe, by an individual receiving such work relief or work training;

(M) service performed by an inmate of a custodial or correctional

institution, unless such service is performed for a private, for-profit em-

ployer;

(N) service performed, in the employ of a school, college, or univer-

sity, if such service is performed by a student who is enrolled and is

regularly attending classes at such school, college or university;

(O) service performed by an individual who is enrolled at a nonprofit

or public educational institution which normally maintains a regular fac-

ulty and curriculum and normally has a regularly organized body of stu-

dents in attendance at the place where its educational activities are carried

on as a student in a full-time program, taken for credit at such institution,

which combines academic instruction with work experience, if such serv-

ice is an integral part of such program, and such institution has so certified

to the employer, except that this subsection (i)(4)(O) shall not apply to

service performed in a program established for or on behalf of an em-

ployer or group of employers;

(P) service performed in the employ of a hospital licensed, certified

or approved by the secretary of health and environment, if such service

is performed by a patient of the hospital;

(Q) services performed as a qualified real estate agent. As used in

this subsection (i)(4)(Q) the term ``qualified real estate agent'' means any

individual who is licensed by the Kansas real estate commission as a sa-

lesperson under the real estate brokers' and salespersons' license act and

for whom:

(i) Substantially all of the remuneration, whether or not paid in cash,

for the services performed by such individual as a real estate salesperson

is directly related to sales or other output, including the performance of

services, rather than to the number of hours worked; and

(ii) the services performed by the individual are performed pursuant

to a written contract between such individual and the person for whom

the services are performed and such contract provides that the individual

will not be treated as an employee with respect to such services for state

tax purposes;

(R) services performed for an employer by an extra in connection

with any phase of motion picture or television production or television

commercials for less than 14 days during any calendar year. As used in

this subsection, the term ``extra'' means an individual who pantomimes in

the background, adds atmosphere to the set and performs such actions

without speaking and ``employer'' shall not include any employer which

is a governmental entity or any employer described in section 501(c)(3)

of the federal internal revenue code of 1986 which is exempt from income

under section 501(a) of the code;

(S) services performed by an oil and gas contract pumper. As used in

this subsection (i)(4)(S), ``oil and gas contract pumper'' means a person

performing pumping and other services on one or more oil or gas leases,

or on both oil and gas leases, relating to the operation and maintenance

of such oil and gas leases, on a contractual basis for the operators of such

oil and gas leases and ``services'' shall not include services performed for

a governmental entity or any organization described in section 501(c)(3)

of the federal internal revenue code of 1986 which is exempt from income

taxation under section 501(a) of the code;

(T) service not in the course of the employer's trade or business per-

formed in any calendar quarter by an employee, unless the cash remu-

neration paid for such service is $200 or more and such service is per-

formed by an individual who is regularly employed by such employer to

perform such service. For purposes of this paragraph, an individual shall

be deemed to be regularly employed by an employer during a calendar

quarter only if:

(i) On each of some 24 days during such quarter such individual per-

forms for such employer for some portion of the day service not in the

course of the employer's trade or business, or

(ii) such individual was regularly employed, as determined under sub-

paragraph (i), by such employer in the performance of such service during

the preceding calendar quarter.

Such excluded service shall not include any services performed for an

employer which is a governmental entity or any employer described in

section 501(c)(3) of the federal internal revenue code of 1986 which is

exempt from income taxation under section 501(a) of the code;

(U) service which is performed by any person who is a member of a

limited liability company and which is performed as a member or manager

of that limited liability company; and

(V) services performed as a qualified direct seller. The term ``direct

seller'' means any person if:

(i) Such person:

(aa) (a) is engaged in the trade or business of selling or soliciting the

sale of consumer products to any buyer on a buy-sell basis or a deposit-

commission basis for resale, by the buyer or any other person, in the

home or otherwise rather than in a permanent retail establishment; or

(bb) (b) is engaged in the trade or business of selling or soliciting the

sale of consumer products in the home or otherwise than in a permanent

retail establishment;

(ii) substantially all the remuneration whether or not paid in cash for

the performance of the services described in subparagraph (i) is directly

related to sales or other output including the performance of services

rather than to the number of hours worked;

(iii) the services performed by the person are performed pursuant to

a written contract between such person and the person for whom the

services are performed and such contract provides that the person will

not be treated as an employee for federal and state tax purposes;

(iv) for purposes of this act, a sale or a sale resulting exclusively from

a solicitation made by telephone, mail, or other telecommunications

method, or other nonpersonal method does not satisfy the requirements

of this subsection; and

(W) service performed as an election official or election worker, if

the amount of remuneration received by the individual during the cal-

endar year for services as an election official or election worker is less

than $1,000.

(j) ``Employment office'' means any office operated by this state and

maintained by the secretary of human resources for the purpose of as-

sisting persons to become employed.

(k) ``Fund'' means the employment security fund established by this

act, to which all contributions and reimbursement payments required and

from which all benefits provided under this act shall be paid and including

all money received from the federal government as reimbursements pur-

suant to section 204 of the federal-state extended compensation act of

1970, and amendments thereto.

(l) ``State'' includes, in addition to the states of the United States of

America, any dependency of the United States, the Commonwealth of

Puerto Rico, the District of Columbia and the Virgin Islands.

(m) ``Unemployment.'' An individual shall be deemed ``unemployed''

with respect to any week during which such individual performs no serv-

ices and with respect to which no wages are payable to such individual,

or with respect to any week of less than full-time work if the wages payable

to such individual with respect to such week are less than such individual's

weekly benefit amount.

(n) ``Employment security administration fund'' means the fund es-

tablished by this act, from which administrative expenses under this act

shall be paid.

(o) ``Wages'' means all compensation for services, including commis-

sions, bonuses, back pay and the cash value of all remuneration, including

benefits, paid in any medium other than cash. The reasonable cash value

of remuneration in any medium other than cash, shall be estimated and

determined in accordance with rules and regulations prescribed by the

secretary. Compensation payable to an individual which has not been

actually received by that individual within 21 days after the end of the

pay period in which the compensation was earned shall be considered to

have been paid on the 21st day after the end of that pay period. Effective

January 1, 1986, gratuities, including tips received from persons other

than the employing unit, shall be considered wages when reported in

writing to the employer by the employee. Employees must furnish a writ-

ten statement to the employer, reporting all tips received if they total $20

or more for a calendar month whether the tips are received directly from

a person other than the employer or are paid over to the employee by

the employer. This includes amounts designated as tips by a customer

who uses a credit card to pay the bill. Notwithstanding the other provi-

sions of this subsection (o), wages paid in back pay awards or settlements

shall be allocated to the week or weeks and reported in the manner as

specified in the award or agreement, or, in the absence of such specificity

in the award or agreement, such wages shall be allocated to the week or

weeks in which such wages, in the judgment of the secretary, would have

been paid. The term ``wages'' shall not include:

(1) That part of the remuneration which has been paid in a calendar

year to an individual by an employer or such employer's predecessor in

excess of $3,000 for all calendar years prior to 1972, $4,200 for the cal-

endar years 1972 to 1977, inclusive, $6,000 for calendar years 1978 to

1982, inclusive, $7,000 for the calendar year 1983, and $8,000 with re-

spect to employment during any calendar year following 1983, except that

if the definition of the term ``wages'' as contained in the federal unem-

ployment tax act is amended to include remuneration in excess of $8,000

paid to an individual by an employer under the federal act during any

calendar year, wages shall include remuneration paid in a calendar year

to an individual by an employer subject to this act or such employer's

predecessor with respect to employment during any calendar year up to

an amount equal to the dollar limitation specified in the federal unem-

ployment tax act. For the purposes of this subsection (o)(1), the term

``employment'' shall include service constituting employment under any

employment security law of another state or of the federal government;

(2) the amount of any payment (including any amount paid by an

employing unit for insurance or annuities, or into a fund, to provide for

any such payment) made to, or on behalf of, an employee or any of such

employee's dependents under a plan or system established by an em-

ployer which makes provisions for employees generally, for a class or

classes of employees or for such employees or a class or classes of em-

ployees and their dependents, on account of (A) sickness or accident

disability, except in the case of any payment made to an employee or such

employee's dependents, this subparagraph shall exclude from the term

``wages'' only payments which are received under a workers compensation

law. Any third party which makes a payment included as wages by reason

of this subparagraph (2)(A) shall be treated as the employer with respect

to such wages, or (B) medical and hospitalization expenses in connection

with sickness or accident disability, or (C) death;

(3) any payment on account of sickness or accident disability, or med-

ical or hospitalization expenses in connection with sickness or accident

disability, made by an employer to, or on behalf of, an employee after the

expiration of six calendar months following the last calendar month in

which the employee worked for such employer;

(4) any payment made to, or on behalf of, an employee or such em-

ployee's beneficiary:

(A) From or to a trust described in section 401(a) of the federal in-

ternal revenue code of 1986 which is exempt from tax under section

501(a) of the federal internal revenue code of 1986 at the time of such

payment unless such payment is made to an employee of the trust as

remuneration for services rendered as such employee and not as a ben-

eficiary of the trust;

(B) under or to an annuity plan which, at the time of such payment,

is a plan described in section 403(a) of the federal internal revenue code

of 1986;

(C) under a simplified employee pension as defined in section

408(k)(1) of the federal internal revenue code of 1986, other than any

contribution described in section 408(k)(6) of the federal internal revenue

code of 1986;

(D) under or to an annuity contract described in section 403(b) of

the federal internal revenue code of 1986, other than a payment for the

purchase of such contract which was made by reason of a salary reduction

agreement whether evidenced by a written instrument or otherwise;

(E) under or to an exempt governmental deferred compensation plan

as defined in section 3121(v)(3) of the federal internal revenue code of

1986;

(F) to supplement pension benefits under a plan or trust described

in any of the foregoing provisions of this subparagraph to take into ac-

count some portion or all of the increase in the cost of living, as deter-

mined by the secretary of labor, since retirement but only if such sup-

plemental payments are under a plan which is treated as a welfare plan

under section 3(2)(B)(ii) of the federal employee retirement income se-

curity act of 1974; or

(G) under a cafeteria plan within the meaning of section 125 of the

federal internal revenue code of 1986;

(5) the payment by an employing unit (without deduction from the

remuneration of the employee) of the tax imposed upon an employee

under section 3101 of the federal internal revenue code of 1986 with

respect to remuneration paid to an employee for domestic service in a

private home of the employer or for agricultural labor;

(6) remuneration paid in any medium other than cash to an employee

for service not in the course of the employer's trade or business;

(7) remuneration paid to or on behalf of an employee if and to the

extent that at the time of the payment of such remuneration it is reason-

able to believe that a corresponding deduction is allowable under section

217 of the federal internal revenue code of 1986 relating to moving ex-

penses;

(8) any payment or series of payments by an employer to an employee

or any of such employee's dependents which is paid:

(A) Upon or after the termination of an employee's employment re-

lationship because of (i) death or (ii) retirement for disability; and

(B) under a plan established by the employer which makes provisions

for employees generally, a class or classes of employees or for such em-

ployees or a class or classes of employees and their dependents, other

than any such payment or series of payments which would have been paid

if the employee's employment relationship had not been so terminated;

(9) remuneration for agricultural labor paid in any medium other than

cash;

(10) any payment made, or benefit furnished, to or for the benefit of

an employee if at the time of such payment or such furnishing it is rea-

sonable to believe that the employee will be able to exclude such payment

or benefit from income under section 129 of the federal internal revenue

code of 1986 which relates to dependent care assistance programs;

(11) the value of any meals or lodging furnished by or on behalf of

the employer if at the time of such furnishing it is reasonable to believe

that the employee will be able to exclude such items from income under

section 119 of the federal internal revenue code of 1986;

(12) any payment made by an employer to a survivor or the estate of

a former employee after the calendar year in which such employee died;

(13) any benefit provided to or on behalf of an employee if at the

time such benefit is provided it is reasonable to believe that the employee

will be able to exclude such benefit from income under section 74(c), 117

or 132 of the federal internal revenue code of 1986; or

(14) any payment made, or benefit furnished, to or for the benefit of

an employee, if at the time of such payment or such furnishing it is rea-

sonable to believe that the employee will be able to exclude such payment

or benefit from income under section 127 of the federal internal revenue

code of 1986 relating to educational assistance to the employee.

Nothing in any paragraph of subsection (o), other than paragraph (1),

shall exclude from the term ``wages'': (1) Any employer contribution un-

der a qualified cash or deferred arrangement, as defined in section 401(k)

of the federal internal revenue code of 1986, to the extent that such

contribution is not included in gross income by reason of section 402(a)(8)

of the federal internal revenue code of 1986; or (2) any amount treated

as an employer contribution under section 414(h)(2) of the federal inter-

nal revenue code of 1986.

Any amount deferred under a nonqualified deferred compensation

plan shall be taken into account for purposes of this section as of the later

of when the services are performed or when there is no substantial risk

of forfeiture of the rights to such amount. Any amount taken into account

as wages by reason of this paragraph, and the income attributable thereto,

shall not thereafter be treated as wages for purposes of this section. For

purposes of this paragraph, the term ``nonqualified deferred compensa-

tion plan'' means any plan or other arrangement for deferral of compen-

sation other than a plan described in subsection (o)(4).

(p) ``Week'' means such period or periods of seven consecutive cal-

endar days, as the secretary may by rules and regulations prescribe.

(q) ``Calendar quarter'' means the period of three consecutive cal-

endar months ending March 31, June 30, September 30 or December

31, or the equivalent thereof as the secretary may by rules and regulations

prescribe.

(r) ``Insured work'' means employment for employers.

(s) ``Approved training'' means any vocational training course or

course in basic education skills approved by the secretary or a person or

persons designated by the secretary.

(t) ``American vessel'' or ``American aircraft'' means any vessel or air-

craft documented or numbered or otherwise registered under the laws

of the United States; and any vessel or aircraft which is neither docu-

mented or numbered or otherwise registered under the laws of the

United States nor documented under the laws of any foreign country, if

its crew performs service solely for one or more citizens or residents of

the United States or corporations organized under the laws of the United

States or of any state.

(u) ``Institution of higher education,'' for the purposes of this section,

means an educational institution which:

(1) Admits as regular students only individuals having a certificate of

graduation from a high school, or the recognized equivalent of such a

certificate;

(2) is legally authorized in this state to provide a program of education

beyond high school;

(3) provides an educational program for which it awards a bachelor's

or higher degree, or provides a program which is acceptable for full credit

toward such a degree, a program of postgraduate or postdoctoral studies,

or a program of training to prepare students for gainful employment in a

recognized occupation; and

(4) is a public or other nonprofit institution.

Notwithstanding any of the foregoing provisions of this subsection (u),

all colleges and universities in this state are institutions of higher educa-

tion for purposes of this section, except that no college, university, junior

college or other postsecondary school or institution which is operated by

the federal government or any agency thereof shall be an institution of

higher education for purposes of the employment security law.

(v) ``Educational institution'' means any institution of higher educa-

tion, as defined in subsection (u) of this section, or any institution, except

private for profit institutions, in which participants, trainees or students

are offered an organized course of study or training designed to transfer

to them knowledge, skills, information, doctrines, attitudes or abilities

from, by or under the guidance of an instructor or teacher and which is

approved, licensed or issued a permit to operate as a school by the state

department of education or other government agency that is authorized

within the state to approve, license or issue a permit for the operation of

a school or to an Indian tribe in the operation of an educational institu-

tion. The courses of study or training which an educational institution

offers may be academic, technical, trade or preparation for gainful em-

ployment in a recognized occupation.

(w) (1) ``Agricultural labor'' means any remunerated service:

(A) On a farm, in the employ of any person, in connection with cul-

tivating the soil, or in connection with raising or harvesting any agricul-

tural or horticultural commodity, including the raising, shearing, feeding,

caring for, training, and management of livestock, bees, poultry, and fur-

bearing animals and wildlife.

(B) In the employ of the owner or tenant or other operator of a farm,

in connection with the operating, management, conservation, improve-

ment, or maintenance of such farm and its tools and equipment, or in

salvaging timber or clearing land of brush and other debris left by a hur-

ricane, if the major part of such service is performed on a farm.

(C) In connection with the production or harvesting of any commod-

ity defined as an agricultural commodity in section (15)(g) of the agri-

cultural marketing act, as amended (46 Stat. 1500, sec. 3; 12 U.S.C. 1141j)

or in connection with the ginning of cotton, or in connection with the

operation or maintenance of ditches, canals, reservoirs or waterways, not

owned or operated for profit, used exclusively for supplying and storing

water for farming purposes.

(D) (i) In the employ of the operator of a farm in handling, planting,

drying, packing, packaging, processing, freezing, grading, storing, or de-

livering to storage or to market or to a carrier for transportation to market,

in its unmanufactured state, any agricultural or horticultural commodity;

but only if such operator produced more than 1/2 of the commodity with

respect to which such service is performed;

(ii) in the employ of a group of operators of farms (or a cooperative

organization of which such operators are members) in the performance

of service described in paragraph (i) above of this subsection (w)(1)(D),

but only if such operators produced more than 1/2 of the commodity with

respect to which such service is performed;

(iii) the provisions of paragraphs (i) and (ii) above of this subsection

(w)(1)(D) shall not be deemed to be applicable with respect to service

performed in connection with commercial canning or commercial freez-

ing or in connection with any agricultural or horticultural commodity after

its delivery to a terminal market for distribution for consumption.

(E) On a farm operated for profit if such service is not in the course

of the employer's trade or business.

(2) ``Agricultural labor'' does not include service performed prior to

January 1, 1980, by an individual who is an alien admitted to the United

States to perform service in agricultural labor pursuant to sections 214(c)

and 101(a)(15)(H) of the federal immigration and nationality act.

(3) As used in this subsection (w), the term ``farm'' includes stock,

dairy, poultry, fruit, fur-bearing animal, and truck farms, plantations,

ranches, nurseries, ranges, greenhouses, or other similar structures used

primarily for the raising of agricultural or horticultural commodities, and

orchards.

(4) For the purpose of this section, if an employing unit does not

maintain sufficient records to separate agricultural labor from other em-

ployment, all services performed during any pay period by an individual

for the person employing such individual shall be deemed to be agricul-

tural labor if services performed during 1/2 or more of such pay period

constitute agricultural labor; but if the services performed during more

than 1/2 of any such pay period by an individual for the person employing

such individual do not constitute agricultural labor, then none of the serv-

ices of such individual for such period shall be deemed to be agricultural

labor. As used in this subsection (w), the term ``pay period'' means a

period of not more than 31 consecutive days for which a payment of

remuneration is ordinarily made to the individual by the person employ-

ing such individual.

(x) ``Reimbursing employer'' means any employer who makes pay-

ments in lieu of contributions to the employment security fund as pro-

vided in subsection (e) of K.S.A. 44-710 and amendments thereto.

(y) ``Contributing employer'' means any employer other than a re-

imbursing employer or rated governmental employer.

(z) ``Wage combining plan'' means a uniform national arrangement

approved by the United States secretary of labor in consultation with the

state unemployment compensation agencies and in which this state shall

participate, whereby wages earned in one or more states are transferred

to another state, called the ``paying state,'' and combined with wages in

the paying state, if any, for the payment of benefits under the laws of the

paying state and as provided by an arrangement so approved by the

United States secretary of labor.

(aa) ``Domestic service'' means any service for a person in the oper-

ation and maintenance of a private household, local college club or local

chapter of a college fraternity or sorority, as distinguished from service

as an employee in the pursuit of an employer's trade, occupation, pro-

fession, enterprise or vocation.

(bb) ``Rated governmental employer'' means any governmental entity

which elects to make payments as provided by K.S.A. 44-710d and

amendments thereto.

(cc) ``Benefit cost payments'' means payments made to the employ-

ment security fund by a governmental entity electing to become a rated

governmental employer.

(dd) ``Successor employer'' means any employer, as described in sub-

section (h) of this section, which acquires or in any manner succeeds to

(1) substantially all of the employing enterprises, organization, trade or

business of another employer or (2) substantially all the assets of another

employer.

(ee) ``Predecessor employer'' means an employer, as described in

subsection (h) of this section, who has previously operated a business or

portion of a business with employment to which another employer has

succeeded.

(ff) ``Lessor employing unit'' means any independently established

business entity which engages in the business of providing leased em-

ployees to a client lessee.

(gg) ``Client lessee'' means any individual, organization, partnership,

corporation or other legal entity leasing employees from a lessor employ-

ing unit.

Sec. 2. K.S.A. 44-706 is hereby amended to read as follows: 44-706.

An individual shall be disqualified for benefits:

(a) If the individual left work voluntarily without good cause attrib-

utable to the work or the employer, subject to the other provisions of this

subsection (a). After a temporary job assignment, failure of an individual

to affirmatively request an additional assignment on the next succeeding

workday, if required by the employment agreement, after completion of

a given work assignment, shall constitute leaving work voluntarily. The

disqualification shall begin the day following the separation and shall con-

tinue until after the individual has become reemployed and has had earn-

ings from insured work of at least three times the individual's weekly

benefit amount. An individual shall not be disqualified under this sub-

section (a) if:

(1) The individual was forced to leave work because of illness or injury

upon the advice of a licensed and practicing health care provider and,

upon learning of the necessity for absence, immediately notified the em-

ployer thereof, or the employer consented to the absence, and after re-

covery from the illness or injury, when recovery was certified by a prac-

ticing health care provider, the individual returned to the employer and

offered to perform services and the individual's regular work or compa-

rable and suitable work was not available; as used in this paragraph (1)

``health care provider'' means any person licensed by the proper licensing

authority of any state to engage in the practice of medicine and surgery,

osteopathy, chiropractic, dentistry, optometry, podiatry or psychology;

(2) the individual left temporary work to return to the regular em-

ployer;

(3) the individual left work to enlist in the armed forces of the United

States, but was rejected or delayed from entry;

(4) the individual left work because of the voluntary or involuntary

transfer of the individual's spouse from one job to another job, which is

for the same employer or for a different employer, at a geographic loca-

tion which makes it unreasonable for the individual to continue work at

the individual's job;

(5) the individual left work because of hazardous working conditions;

in determining whether or not working conditions are hazardous for an

individual, the degree of risk involved to the individual's health, safety

and morals, the individual's physical fitness and prior training and the

working conditions of workers engaged in the same or similar work for

the same and other employers in the locality shall be considered; as used

in this paragraph (5), ``hazardous working conditions'' means working con-

ditions that could result in a danger to the physical or mental well-being

of the individual; each determination as to whether hazardous working

conditions exist shall include, but shall not be limited to, a consideration

of (A) the safety measures used or the lack thereof, and (B) the condition

of equipment or lack of proper equipment; no work shall be considered

hazardous if the working conditions surrounding the individual's work are

the same or substantially the same as the working conditions generally

prevailing among individuals performing the same or similar work for

other employers engaged in the same or similar type of activity;

(6) the individual left work to enter training approved under section

236(a)(1) of the federal trade act of 1974, provided the work left is not

of a substantially equal or higher skill level than the individual's past

adversely affected employment (as defined for purposes of the federal

trade act of 1974), and wages for such work are not less than 80% of the

individual's average weekly wage as determined for the purposes of the

federal trade act of 1974;

(7) the individual left work because of unwelcome harassment of the

individual by the employer or another employee of which the employing

unit had knowledge;

(8) the individual left work to accept better work; each determination

as to whether or not the work accepted is better work shall include, but

shall not be limited to, consideration of (A) the rate of pay, the hours of

work and the probable permanency of the work left as compared to the

work accepted, (B) the cost to the individual of getting to the work left

in comparison to the cost of getting to the work accepted, and (C) the

distance from the individual's place of residence to the work accepted in

comparison to the distance from the individual's residence to the work

left;

(9) the individual left work as a result of being instructed or requested

by the employer, a supervisor or a fellow employee to perform a service

or commit an act in the scope of official job duties which is in violation

of an ordinance or statute;

(10) the individual left work because of a violation of the work agree-

ment by the employing unit and, before the individual left, the individual

had exhausted all remedies provided in such agreement for the settlement

of disputes before terminating; or

(11) after making reasonable efforts to preserve the work, the indi-

vidual left work due to a personal emergency of such nature and com-

pelling urgency that it would be contrary to good conscience to impose a

disqualification.

(b) If the individual has been discharged for misconduct connected

with the individual's work. The disqualification shall begin the day follow-

ing the separation and shall continue until after the individual becomes

reemployed and has had earnings from insured work of at least three

times the individual's determined weekly benefit amount, except that if

an individual is discharged for gross misconduct connected with the in-

dividual's work, such individual shall be disqualified for benefits until such

individual again becomes employed and has had earnings from insured

work of at least eight times such individual's determined weekly benefit

amount. In addition, all wage credits attributable to the employment from

which the individual was discharged for gross misconduct connected with

the individual's work shall be canceled. No such cancellation of wage

credits shall affect prior payments made as a result of a prior separation.

(1) For the purposes of this subsection (b), ``misconduct'' is defined

as a violation of a duty or obligation reasonably owed the employer as a

condition of employment. The term ``gross misconduct'' as used in this

subsection (b) shall be construed to mean conduct evincing extreme, will-

ful or wanton misconduct as defined by this subsection (b).

(2) For the purposes of this subsection (b), the use of or impairment

caused by an alcoholic beverage, a cereal malt beverage or a nonprescri-

bed controlled substance by an individual while working shall be conclu-

sive evidence of misconduct and the possession of an alcoholic beverage,

a cereal malt beverage or a nonprescribed controlled substance by an

individual while working shall be prima facie evidence of conduct which

is a violation of a duty or obligation reasonably owed to the employer as

a condition of employment. For purposes of this subsection (b), the dis-

qualification of an individual from employment which disqualification is

required by the provisions of the drug free workplace act, 41 U.S.C. 701

et seq. or is otherwise required by law because the individual refused to

submit to or failed a chemical test which was required by law, shall be

conclusive evidence of misconduct. Refusal to submit to a chemical test

administered pursuant to an employee assistance program or other drug

or alcohol treatment program in which the individual was participating

voluntarily or as a condition of further employment shall also be conclu-

sive evidence of misconduct. Alcoholic liquor shall be defined as provided

in K.S.A. 41-102 and amendments thereto. Cereal malt beverage shall be

defined as provided in K.S.A. 41-2701 and amendments thereto. Con-

trolled substance shall be defined as provided in K.S.A. 65-4101 and

amendments thereto of the uniform controlled substances act. As used

in this subsection (b)(2), ``required by law'' means required by a federal

or state law, a federal or state rule or regulation having the force and

effect of law, a county resolution or municipal ordinance, or a policy

relating to public safety adopted in open meeting by the governing body

of any special district or other local governmental entity. An individual's

refusal to submit to a chemical test shall not be admissible evidence to

prove misconduct unless the test is required by and meets the standards

of the drug free workplace act, 41 U.S.C. 701 et seq., the test was ad-

ministered as part of an employee assistance program or other drug or

alcohol treatment program in which the employee was participating vol-

untarily or as a condition of further employment, the test was otherwise

required by law and the test constituted a required condition of employ-

ment for the individual's job, or, there was probable cause to believe that

the individual used, possessed or was impaired by an alcoholic beverage,

a cereal malt beverage or a controlled substance while working. The re-

sults of a chemical test shall not be admissible evidence to prove miscon-

duct unless the following conditions were met:

(A) Either (i) the test was required by law, the test was administered

pursuant to the drug free workplace act, 41 U.S.C. 701 et seq., (ii) the

test was administered as part of an employee assistance program or other

drug or alcohol treatment program in which the employee was partici-

pating voluntarily or as a condition of further employment, (iii) the test

was required by law and the test constituted a required condition of em-

ployment for the individual's job, or (iv) there was probable cause to

believe that the individual used, had possession of, or was impaired by

the alcoholic beverage, the cereal malt beverage or the controlled sub-

stance while working;

(B) the test sample was collected either (i) as prescribed by the drug

free workplace act, 41 U.S.C. 701 et seq., (ii) as prescribed by an em-

ployee assistance program or other drug or alcohol treatment program in

which the employee was participating voluntarily or as a condition of

further employment, (iii) as prescribed by a test which was required by

law and which constituted a required condition of employment for the

individual's job, or (iv) at a time contemporaneous with the events estab-

lishing probable cause;

(C) the collecting and labeling of the test sample was performed by

a licensed health care professional or any other individual authorized to

collect or label test samples by federal or state law, or a federal or state

rule or regulation having the force and effect of law, including law en-

forcement personnel;

(D) the test was performed by a laboratory approved by the United

States department of health and human services or licensed by the de-

partment of health and environment, except that a blood sample may be

tested for alcohol content by a laboratory commonly used for that purpose

by state law enforcement agencies;

(E) the test was confirmed by gas chromatography, gas chromatog-

raphy-mass spectroscopy or other comparably reliable analytical method,

except that no such confirmation is required for a blood alcohol sample;

and

(F) the foundation evidence must establish, beyond a reasonable

doubt, that the test results were from the sample taken from the individ-

ual.

(3) For the purposes of this subsection (b), misconduct shall include,

but not be limited to repeated absence, including lateness, from sched-

uled work if the facts show:

(A) The individual was absent without good cause;

(B) the absence was in violation of the employer's written absentee-

ism policy;

(C) the employer gave or sent written notice to the individual, at the

individual's last known address, that future absence may or will result in

discharge;

(D) the employee had knowledge of the employer's written absen-

teeism policy; and

(E) if an employee disputes being absent without good cause, the

employee shall present evidence that a majority of the employee's ab-

sences were for good cause.

(4) An individual shall not be disqualified under this subsection (b)

if the individual is discharged under the following circumstances:

(A) The employer discharged the individual after learning the indi-

vidual was seeking other work or when the individual gave notice of future

intent to quit;

(B) the individual was making a good-faith effort to do the assigned

work but was discharged due to: (i) Inefficiency, (ii) unsatisfactory per-

formance due to inability, incapacity or lack of training or experience, (iii)

isolated instances of ordinary negligence or inadvertence, (iv) good-faith

errors in judgment or discretion, or (v) unsatisfactory work or conduct

due to circumstances beyond the individual's control; or

(C) the individual's refusal to perform work in excess of the contract

of hire.

(c) If the individual has failed, without good cause, to either apply

for suitable work when so directed by the employment office of the sec-

retary of human resources, or to accept suitable work when offered to

the individual by the employment office, the secretary of human re-

sources, or an employer, such disqualification shall begin with the week

in which such failure occurred and shall continue until the individual

becomes reemployed and has had earnings from insured work of at least

three times such individual's determined weekly benefit amount. In de-

termining whether or not any work is suitable for an individual, the sec-

retary of human resources, or a person or persons designated by the

secretary, shall consider the degree of risk involved to health, safety and

morals, physical fitness and prior training, experience and prior earnings,

length of unemployment and prospects for securing local work in the

individual's customary occupation or work for which the individual is rea-

sonably fitted by training or experience, and the distance of the available

work from the individual's residence. Notwithstanding any other provi-

sions of this act, an otherwise eligible individual shall not be disqualified

for refusing an offer of suitable employment, or failing to apply for suit-

able employment when notified by an employment office, or for leaving

the individual's most recent work accepted during approved training, in-

cluding training approved under section 236(a)(1) of the trade act of 1974,

if the acceptance of or applying for suitable employment or continuing

such work would require the individual to terminate approved training

and no work shall be deemed suitable and benefits shall not be denied

under this act to any otherwise eligible individual for refusing to accept

new work under any of the following conditions: (1) If the position offered

is vacant due directly to a strike, lockout or other labor dispute; (2) if the

remuneration, hours or other conditions of the work offered are substan-

tially less favorable to the individual than those prevailing for similar work

in the locality; (3) if as a condition of being employed, the individual would

be required to join or to resign from or refrain from joining any labor

organization.

(d) For any week with respect to which the secretary of human re-

sources, or a person or persons designated by the secretary, finds that the

individual's unemployment is due to a stoppage of work which exists be-

cause of a labor dispute or there would have been a work stoppage had

normal operations not been maintained with other personnel previously

and currently employed by the same employer at the factory, establish-

ment or other premises at which the individual is or was last employed,

except that this subsection (d) shall not apply if it is shown to the satis-

faction of the secretary of human resources, or a person or persons des-

ignated by the secretary, that: (1) The individual is not participating in or

financing or directly interested in the labor dispute which caused the

stoppage of work; and (2) the individual does not belong to a grade or

class of workers of which, immediately before the commencement of the

stoppage, there were members employed at the premises at which the

stoppage occurs any of whom are participating in or financing or directly

interested in the dispute. If in any case separate branches of work which

are commonly conducted as separate businesses in separate premises are

conducted in separate departments of the same premises, each such de-

partment shall, for the purpose of this subsection (d), be deemed to be

a separate factory, establishment or other premises. For the purposes of

this subsection (d), failure or refusal to cross a picket line or refusal for

any reason during the continuance of such labor dispute to accept the

individual's available and customary work at the factory, establishment or

other premises where the individual is or was last employed shall be

considered as participation and interest in the labor dispute.

(e) For any week with respect to which or a part of which the indi-

vidual has received or is seeking unemployment benefits under the un-

employment compensation law of any other state or of the United States,

except that if the appropriate agency of such other state or the United

States finally determines that the individual is not entitled to such un-

employment benefits, this disqualification shall not apply.

(f) For any week with respect to which the individual is entitled to

receive any unemployment allowance or compensation granted by the

United States under an act of congress to ex-service men and women in

recognition of former service with the military or naval services of the

United States.

(g) For the period of one year beginning with the first day following

the last week of unemployment for which the individual received benefits,

or for one year from the date the act was committed, whichever is the

later, if the individual, or another in such individual's behalf with the

knowledge of the individual, has knowingly made a false statement or

representation, or has knowingly failed to disclose a material fact to obtain

or increase benefits under this act or any other unemployment compen-

sation law administered by the secretary of human resources.

(h) For any week with respect to which the individual is receiving

compensation for temporary total disability or permanent total disability

under the workmen's compensation law of any state or under a similar

law of the United States.

(i) For any week of unemployment on the basis of service in an in-

structional, research or principal administrative capacity for an educa-

tional institution as defined in subsection (v) of K.S.A. 44-703 and amend-

ments thereto, if such week begins during the period between two

successive academic years or terms or, when an agreement provides in-

stead for a similar period between two regular but not successive terms

during such period or during a period of paid sabbatical leave provided

for in the individual's contract, if the individual performs such services in

the first of such academic years or terms and there is a contract or a

reasonable assurance that such individual will perform services in any

such capacity for any educational institution in the second of such aca-

demic years or terms.

(j) For any week of unemployment on the basis of service in any

capacity other than service in an instructional, research, or administrative

capacity in an educational institution, as defined in subsection (v) of

K.S.A. 44-703 and amendments thereto, if such week begins during the

period between two successive academic years or terms if the individual

performs such services in the first of such academic years or terms and

there is a reasonable assurance that the individual will perform such serv-

ices in the second of such academic years or terms, except that if benefits

are denied to the individual under this subsection (j) and the individual

was not offered an opportunity to perform such services for the educa-

tional institution for the second of such academic years or terms, such

individual shall be entitled to a retroactive payment of benefits for each

week for which the individual filed a timely claim for benefits and for

which benefits were denied solely by reason of this subsection (j).

(k) For any week of unemployment on the basis of service in any

capacity for an educational institution as defined in subsection (v) of

K.S.A. 44-703 and amendments thereto, if such week begins during an

established and customary vacation period or holiday recess, if the indi-

vidual performs services in the period immediately before such vacation

period or holiday recess and there is a reasonable assurance that such

individual will perform such services in the period immediately following

such vacation period or holiday recess.

(l) For any week of unemployment on the basis of any services, sub-

stantially all of which consist of participating in sports or athletic events

or training or preparing to so participate, if such week begins during the

period between two successive sport seasons or similar period if such

individual performed services in the first of such seasons or similar per-

iods and there is a reasonable assurance that such individual will perform

such services in the later of such seasons or similar periods.

(m) For any week on the basis of services performed by an alien

unless such alien is an individual who was lawfully admitted for perma-

nent residence at the time such services were performed, was lawfully

present for purposes of performing such services, or was permanently

residing in the United States under color of law at the time such services

were performed, including an alien who was lawfully present in the

United States as a result of the application of the provisions of section

212(d)(5) of the federal immigration and nationality act. Any data or in-

formation required of individuals applying for benefits to determine

whether benefits are not payable to them because of their alien status

shall be uniformly required from all applicants for benefits. In the case

of an individual whose application for benefits would otherwise be ap-

proved, no determination that benefits to such individual are not payable

because of such individual's alien status shall be made except upon a

preponderance of the evidence.

(n) For any week in which an individual is receiving a governmental

or other pension, retirement or retired pay, annuity or other similar pe-

riodic payment under a plan maintained by a base period employer and

to which the entire contributions were provided by such employer, except

that: (1) If the entire contributions to such plan were provided by the

base period employer but such individual's weekly benefit amount ex-

ceeds such governmental or other pension, retirement or retired pay,

annuity or other similar periodic payment attributable to such week, the

weekly benefit amount payable to the individual shall be reduced (but

not below zero) by an amount equal to the amount of such pension,

retirement or retired pay, annuity or other similar periodic payment

which is attributable to such week; or (2) if only a portion of contributions

to such plan were provided by the base period employer, the weekly

benefit amount payable to such individual for such week shall be reduced

(but not below zero) by the prorated weekly amount of the pension, re-

tirement or retired pay, annuity or other similar periodic payment after

deduction of that portion of the pension, retirement or retired pay, an-

nuity or other similar periodic payment that is directly attributable to the

percentage of the contributions made to the plan by such individual; or

(3) if the entire contributions to the plan were provided by such individ-

ual, or by the individual and an employer (or any person or organization)

who is not a base period employer, no reduction in the weekly benefit

amount payable to the individual for such week shall be made under this

subsection (n); or (4) whatever portion of contributions to such plan were

provided by the base period employer, if the services performed for the

employer by such individual during the base period, or remuneration

received for the services, did not affect the individual's eligibility for, or

increased the amount of, such pension, retirement or retired pay, annuity

or other similar periodic payment, no reduction in the weekly benefit

amount payable to the individual for such week shall be made under this

subsection (n). The conditions specified in clause (4) of this subsection

(n) shall not apply to payments made under the social security act or the

railroad retirement act of 1974, or the corresponding provisions of prior

law. Payments made under these acts shall be treated as otherwise pro-

vided in this subsection (n). If the reduced weekly benefit amount is not

a multiple of $1, it shall be reduced to the next lower multiple of $1.

(o) For any week of unemployment on the basis of services per-

formed in any capacity and under any of the circumstances described in

subsection (i), (j) or (k) which an individual performed in an educational

institution while in the employ of an educational service agency. For the

purposes of this subsection (o), the term ``educational service agency''

means a governmental agency or entity which is established and operated

exclusively for the purpose of providing such services to one or more

educational institutions.

(p) For any week of unemployment on the basis of service as a school

bus or other motor vehicle driver employed by a private contractor to

transport pupils, students and school personnel to or from school-related

functions or activities for an educational institution, as defined in subsec-

tion (v) of K.S.A. 44-703 and amendments thereto, if such week begins

during the period between two successive academic years or during a

similar period between two regular terms, whether or not successive, if

the individual has a contract or contracts, or a reasonable assurance

thereof, to perform services in any such capacity with a private contractor

for any educational institution for both such academic years or both such

terms. An individual shall not be disqualified for benefits as provided in

this subsection (p) for any week of unemployment on the basis of service

as a bus or other motor vehicle driver employed by a private contractor

to transport persons to or from nonschool-related functions or activities.

(q) For any week of unemployment on the basis of services per-

formed by the individual in any capacity and under any of the circum-

stances described in subsection (i), (j), (k) or (o) which are provided to

or on behalf of an educational institution, as defined in subsection (v) of

K.S.A. 44-703 and amendments thereto, while the individual is in the

employ of an employer which is a governmental entity, Indian tribe or

any employer described in section 501(c)(3) of the federal internal rev-

enue code of 1986 which is exempt from income under section 501(a) of

the code.

(r) For any week in which an individual is registered at and attending

an established school, training facility or other educational institution, or

is on vacation during or between two successive academic years or terms.

An individual shall not be disqualified for benefits as provided in this

subsection (r) provided:

(1) The individual was engaged in full-time employment concurrent

with the individual's school attendance; or

(2) the individual is attending approved training as defined in sub-

section (s) of K.S.A. 44-703 and amendments thereto; or

(3) the individual is attending evening, weekend or limited day time

classes, which would not affect availability for work, and is otherwise

eligible under subsection (c) of K.S.A. 44-705 and amendments thereto.

(s) For any week with respect to which an individual is receiving or

has received remuneration in the form of a back pay award or settlement.

The remuneration shall be allocated to the week or weeks in the manner

as specified in the award or agreement, or in the absence of such speci-

ficity in the award or agreement, such remuneration shall be allocated to

the week or weeks in which such remuneration, in the judgment of the

secretary, would have been paid.

(1) For any such weeks that an individual receives remuneration in

the form of a back pay award or settlement, an overpayment will be

established in the amount of unemployment benefits paid and shall be

collected from the claimant.

(2) If an employer chooses to withhold from a back pay award or

settlement, amounts paid to a claimant while they claimed unemployment

benefits, such employer shall pay the department the amount withheld.

With respect to such amount, the secretary shall have available all of the

collection remedies authorized or provided in section K.S.A. 44-717, and

amendments thereto.

Sec. 3. K.S.A. 44-710 is hereby amended to read as follows: 44-710.

(a) Payment. Contributions shall accrue and become payable 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 se-

curity 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 contri-

butions, 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

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

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

period employer's account in accordance with the claim unless within 10

calendar days from the date the notice was sent, the base period employer

requests in writing that the examiner reconsider the determination and

furnishes any required information in accordance with the secretary's

rules and regulations. In a similar manner, a notice of an additional claim

followed by the first payment of benefits with respect to the benefit year,

filed by an individual during a benefit year after a period in such year

during which such individual was employed, shall be given to any base

period employer of the individual who has requested such a notice within

10 calendar days from the date the notice of the valid new claim was sent

to such base period employer. For purposes of this subsection (c)(3), if

the required information is not submitted or postmarked within a re-

sponse time limit of 10 days after the base period employer notice was

sent, the base period employer shall be deemed to have waived its stand-

ing as a party to the proceedings arising from the claim and shall be barred

from protesting any subsequent decisions about the claim by the secre-

tary, 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 ex-

cusable neglect. The examiner shall notify the employer of the reconsid-

ered determination which shall be subject to appeal, or further reconsid-

eration, in accordance with the provisions 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, Indian tribes or tribal units, (sub-

divisions, subsidiaries or business enterprises wholly owned by such In-

dian tribes), for which services are performed as described in subsection

(i)(3)(E) of K.S.A. 44-703 and amendments thereto or any nonprofit or-

ganization 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 em-

ployer under this subsection (e)(1) and agree to pay the secretary for the

employment security fund an amount equal to the amount of regular

benefits and 1/2 of the extended benefits paid that are attributable to

service in the employ of such reimbursing employer, except that each

reimbursing governmental employer, Indian tribes or tribal units shall

pay an amount equal to the amount of regular benefits and extended

benefits paid for weeks of unemployment beginning after December 31,

1978, for governmental employers and December 21, 2000, for Indian

tribes or tribal units to individuals 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 be filed by the last day of the month following the close

of each calendar quarter. Wage reports are deemed filed as of the date

they are placed in the United States mail.

(A) At the end of each calendar quarter, or at the end of any other

period as determined by the secretary, the secretary shall bill each 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 and December 21, 2000, for

Indian tribes or tribal units 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 attributable 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. (1) If any nonprofit

organization or group of nonprofit organizations described in section

501(c)(3) of the federal internal revenue code of 1986 or governmental

reimbursing employer is delinquent in making payments of amounts cer-

tified 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.

(2) Failure of the Indian tribe or tribal unit to make required payments,

including assessment of interest and penalty within 90 days of receipt of

the bill will cause the Indian tribe to lose the option to make payments in

lieu of contributions as described pursuant to paragraph (e)(1) for the

following tax year unless payment in full is received before contribution

rates for the next tax year are calculated. (3) Any Indian tribe that loses

the option to make payments in lieu of contributions due to late payment

or nonpayment, as described in paragraph (2), shall have such option

reinstated, if after a period of one year, all contributions have been made

on time and no contributions, payments in lieu of contributions for ben-

efits paid, penalties or interest remain outstanding.

(F) Failure of the Indian tribe or any tribal unit thereof to make

required payments, including assessments of interest and penalties, after

all collection activities deemed necessary by the secretary have been ex-

hausted, will cause services performed by such tribe to not be treated as

employment for purposes of subsection (i)(3)(E) of K.S.A. 44-703 and

amendments thereto. If an Indian tribe fails to make payments required

under this section, including assessments of interest and penalties, within

90 days of a final notice of delinquency, the secretary shall immediately

notify the United States internal revenue service and the United States

department of labor. The secretary may determine that any Indian tribe

that loses coverage pursuant to this paragraph may have services per-

formed on behalf of such tribe again deemed ``employment'' if all contri-

butions, payments in lieu of contributions, penalties and interest have

been paid.

(F) (G) In the discretion of the secretary, any employer who elects

to become liable for payments in lieu of contributions and any nonprofit

organization or group of nonprofit organizations described in section 501

(c)(3) of the federal internal revenue code of 1986 or governmental re-

imbursing employer or Indian tribe or tribal unit who is delinquent in

filing reports or in making payments of amounts certified by the secretary

under this section shall be required within 60 days after the effective date

of such election, in the case of an eligible employer so electing, or after

the date of notification to the delinquent employer under this subsection

(e)(2)(F) (e)(2)(G), in the case of a delinquent employer, to execute and

file with the secretary a surety bond, except that the employer may elect,

in lieu of a surety bond, to deposit with the secretary money or securities

as approved by the secretary or to purchase and deliver to an escrow

agent a certificate of deposit to guarantee payment. The amount of the

bond or, deposit or escrow agreement required by this subsection

(e)(2)(F) (e)(2)(G) 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)

(e)(2)(G) within the time limits imposed or to maintain the required bond

or deposit, the secretary may terminate the election of such eligible em-

ployer or delinquent employer, as the case may be, to make payments in

lieu of contributions, and such termination shall be effective for the cur-

rent and next calendar year.

(G) (H) The state of Kansas shall make reimbursement payments

quarterly 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) (H)

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 cer-

tified 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 de-

ducted from previous reimbursing payments made by the state. On Jan-

uary 1 of each year, if it is determined that benefit charges exceed the

amount of prior reimbursing payments, an upward adjustment shall be

made therefor in the fiscal year rate 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.

(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

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. 4. K.S.A. 44-710a is hereby amended to read as follows: 44-

710a. (a) Classification of employers by the secretary. The term ``em-

ployer'' as used in this section refers to contributing employers. The sec-

retary shall classify employers in accordance with their actual experience

in the payment of contributions on their own behalf and with respect to

benefits charged against their accounts with a view of fixing such contri-

bution rates as will reflect such experience. If, as of the date such clas-

sification of employers is made, the secretary finds that any employing

unit has failed to file any report required in connection therewith, or has

filed a report which the secretary finds incorrect or insufficient, the sec-

retary shall make an estimate of the information required from such em-

ploying unit on the basis of the best evidence reasonably available to the

secretary at the time, and notify the employing unit thereof by mail ad-

dressed to its last known address. Unless such employing unit shall file

the report or a corrected or sufficient report as the case may be, within

15 days after the mailing of such notice, the secretary shall compute such

employing unit's rate of contributions on the basis of such estimates, and

the rate as so determined shall be subject to increase but not to reduction

on the basis of subsequently ascertained information. The secretary shall

determine the contribution rate of each employer in accordance with the

requirements of this section.

(1) New employers. (A) No employer will be eligible for a rate com-

putation until there have been 24 consecutive calendar months immedi-

ately preceding the computation date throughout which benefits could

have been charged against such employer's account.

(B) (i) Employers who are not eligible for a rate computation shall

pay contributions at an assigned rate equal to the sum of 1% plus the

greater of the average rate assigned in the preceding calendar year to all

employers in such industry division sector or the average rate assigned to

all covered employers during the preceding calendar year, except that in

no instance shall any such assigned rate be less than 2%. Employers en-

gaged in more than one type of industrial activity shall be classified by

principal activity. All rates assigned will remain in effect for a complete

calendar year. If the sale or acquisition of a new establishment would

require reclassification of the employer to a different industry division

sector, the employer would be promptly notified, and the contribution

rate applicable to the new industry division sector would become effective

the following January 1. For rate years 1995, 1996, 1997, 1998 and 1999

all employers who are not eligible for rate computation shall pay contri-

butions at the rate of 1%. However, for rate year 1996, 1997, 1998 and

1999 the 1% contribution rate for all employers who are not eligible for

a rate computation shall not be effective if the reserve fund ratio in col-

umn A of schedule III as determined by this section is less than 1.75%.

(ii) For purposes of this subsection (a), employers shall be classified

by industrial activity in accordance with standard procedures as set forth

in rules and regulations adopted by the secretary.

(C) ``Computation date'' means June 30 of each calendar year with

respect to rates of contribution applicable to the calendar year beginning

with the following January 1. In arriving at contribution rates for each

calendar year, contributions paid on or before July 31 following the com-

putation date for employment occurring on or prior to the computation

date shall be considered for each contributing employer who has been

subject to this act for a sufficient period of time to have such employer's

rate computed under this subsection (a).

(2) Eligible employers. (A) A reserve ratio shall be computed for each

eligible employer by the following method: Total benefits charged to the

employer's account for all past years shall be deducted from all contri-

butions paid by such employer for all such years. The balance, positive

or negative, shall be divided by the employer's average annual payroll,

and the result shall constitute the employer reserve ratio.

(B) Negative account balance employers as defined in subsection (d)

shall pay contributions at the rate of 5.4% for each calendar year. How-

ever, for rate years 1996, 1997, 1998 and 1999 all negative account bal-

ance eligible employers will be assigned rates and pay contributions in

accordance with the following schedule.


SCHEDULE IIA
Rate Group
Reserve Ratio
Effective Rates
Negative Eligible Accounts
1 Less than
0.00 but greater than -0.40
1.1
2
-0.40 but greater than -0.80
1.2
3
-0.80 but greater than -1.20
1.3
4
-1.20 but greater than -1.60
1.4
5
-1.60 but greater than -2.00
1.5
6
-2.00 but greater than -2.40
1.6
7
-2.40 but greater than -2.80
1.7
8
-2.80 but greater than -3.20
1.8
9
-3.20 but greater than -3.60
1.9
10
-3.60 but greater than -4.00
2.0
11
-4.00 but greater than -4.40
2.1
12
-4.40 but greater than -4.80
2.2
13
-4.80 but greater than -5.20
2.3
14
-5.20 but greater than -5.60
2.4
15
-5.60 but greater than -6.00
2.5
16
-6.00 but greater than -6.40
2.6
17
-6.40 but greater than -6.80
2.7
18
-6.80 but greater than -7.20
2.8
19
-7.20 but greater than -7.60
2.9
20
-7.60 but greater than -8.00
3.0
21
-8.00 but greater than -8.40
3.1
22
-8.40 but greater than -8.80
3.2
23
-8.80 but greater than -9.20
3.3
24
-9.20 but greater than -9.60
3.4
25
-9.60 but greater than -10.00
3.5
26
-10.00 but greater than -10.40
3.6
27
-10.40 but greater than -10.80
3.7
28
-10.80 but greater than -11.20
3.8
29
-11.20 but greater than -11.60
3.9
30
-11.60 but greater than -12.00
4.0
31
-12.00 but greater than -12.40
4.1
32
-12.40 but greater than -12.80
4.2
33
-12.80 but greater than -13.20
4.3
34
-13.20 but greater than -13.60
4.4
35
-13.60 but greater than -14.00
4.5
36
-14.00 but greater than -14.40
4.6
37
-14.40 but greater than -14.80
4.7
38
-14.80 but greater than -15.20
4.8
39
-15.20 but greater than -15.60
4.9
40
-15.60 but greater than -16.00
5.0
41
-16.00 but greater than -16.40
5.1
42
-16.40 but greater than -16.80
5.2
43
-16.80 but greater than -17.20
5.3
44
-17.20 but greater than -17.60
5.4
45
-17.60 but greater than -18.00
5.5
46
-18.00 but greater than -18.40
5.6
47
-18.40 but greater than -18.80
5.7
48
-18.80 but greater than -19.20
5.8
49
-19.20 but greater than -19.60
5.9
50 -19.60 and less6.0

(C) Eligible employers, other than negative account balance employ-

ers, who do not meet the average annual payroll requirements as stated

in subsection (a)(2) of K.S.A. 44-703 and amendments thereto, will be

issued the maximum rate indicated in subsection (a)(3)(C) of this section

until such employer establishes a new period of 24 consecutive calendar

months immediately preceding the computation date throughout which

benefits could have been charged against such employer's account by

resuming the payment of wages. Contribution rates effective for each

calendar year thereafter shall be determined as prescribed below.

(D) As of each computation date, the total of the taxable wages paid

during the twelve-month period prior to the computation date by all em-

ployers eligible for rate computation, except negative account balance

employers, shall be divided into 51 approximately equal parts designated

in column A of schedule I as ``rate groups,'' except, with regard to a year

in which the taxable wage base changes. The taxable wages used in the

calculation for such a year and the following year shall be an estimate of

what the taxable wages would have been if the new taxable wage base

had been in effect during the entire twelve-month period prior to the

computation date. The lowest numbered of such rate groups shall consist

of the employers with the most favorable reserve ratios, as defined in this

section, whose combined taxable wages paid are less than 1.96% of all

taxable wages paid by all eligible employers. Each succeeding higher

numbered rate group shall consist of employers with reserve ratios that

are less favorable than those of employers in the preceding lower num-

bered rate groups and whose taxable wages when combined with the

taxable wages of employers in all lower numbered rate groups equal the

appropriate percentage of total taxable wages designated in column B of

schedule I. Each eligible employer, other than a negative account balance

employer, shall be assigned an experience factor designated under col-

umn C of schedule I in accordance with the rate group to which the

employer is assigned on the basis of the employer's reserve ratio and

taxable payroll. If an employer's taxable payroll falls into more than one

rate group the employer shall be assigned the experience factor of the

lower numbered rate group. If one or more employers have reserve ratios

identical to that of the last employer included in the next lower numbered

rate group, all such employers shall be assigned the experience factor

designated to such last employer, notwithstanding the position of their

taxable payroll in column B of schedule I.


SCHEDULE I--Eligible Employers
Column A
Column B
Column C
Rate
Cumulative
Experience factor
group
taxable payroll
(Ratio to total wages)
1Less than 1.96%.025%
21.96% but less than 3.92.04
33.92 but less than 5.88.08
45.88 but less than 7.84.12
57.84 but less than 9.80.16
69.80 but less than 11.76.20
711.76 but less than 13.72.24
813.72 but less than 15.68.28
915.68 but less than 17.64.32
1017.64 but less than 19.60.36
1119.60 but less than 21.56.40
1221.56 but less than 23.52.44
1323.52 but less than 25.48.48
1425.48 but less than 27.44.52
1527.44 but less than 29.40.56
1629.40 but less than 31.36.60
1731.36 but less than 33.32.64
18 33.32 but less than 35.28.68
1935.28 but less than 37.24.72
2037.24 but less than 39.20.76
2139.20 but less than 41.16.80
2241.16 but less than 43.12.84
2343.12 but less than 45.08.88
2445.08 but less than 47.04.92
2547.04 but less than 49.00.96
2649.00 but less than 50.961.00
2750.96 but less than 52.921.04
2852.92 but less than 54.881.08
2954.88 but less than 56.841.12
3056.84 but less than 58.801.16
3158.80 but less than 60.761.20
3260.76 but less than 62.721.24
3362.72 but less than 64.681.28
3464.68 but less than 66.641.32
3566.64 but less than 68.601.36
3668.60 but less than 70.561.40
3770.56 but less than 72.521.44
3872.52 but less than 74.481.48
3974.48 but less than 76.441.52
4076.44 but less than 78.401.56
4178.40 but less than 80.361.60
4280.36 but less than 82.321.64
4382.32 but less than 84.281.68
4484.28 but less than 86.241.72
4586.24 but less than 88.201.76
4688.20 but less than 90.161.80
4790.16 but less than 92.121.84
4892.12 but less than 94.081.88
4994.08 but less than 96.041.92
5096.04 but less than 98.001.96
5198.00 and over2.00

(E) Negative account balance employers shall, in addition to paying

the rate provided for in subsection (a)(2)(B) of this section, except for

rate years 1996, 1997, 1998 and 1999, pay a surcharge based on the size

of the employer's negative reserve ratio, the calculation which is provided

for in subsection (a)(2) of this section. The amount of the surcharge shall

be determined from column B of schedule II of this section. Each neg-

ative account balance employer who does not satisfy the requirements to

have an average annual payroll, as defined by subsection (a)(2) of K.S.A.

44-703 and amendments thereto, shall be assigned a surcharge of 2%.

Contribution payments made pursuant to this subsection (a)(2)(E) shall

be credited to the appropriate account of such negative account balance

employer.


SCHEDULE II--Surcharge on Negative Accounts

Column A Column B

Negative Reserve Ratio Surcharge as a percent

of taxable wages
Less than 2.0%0.20%
2.0% but less than 4.0 .40
4.0 but less than 6.0.60
6.0 but less than 8.0.80
8.0 but less than 10.01.00
10.0 but less than 12.01.20
12.0 but less than 14.01.40
14.0 but less than 16.01.60
16.0 but less than 18.01.80
18.0 and over2.00

(3) Planned yield. (A) For rate year 1995, and all years thereafter, the

average required yield shall be determined from schedule III of this sec-

tion, and the planned yield on total wages in column B of schedule III

shall be determined by the reserve fund ratio in column A of schedule

III. The reserve fund ratio shall be determined by dividing total assets in

the employment security fund provided for in subsection (a) of K.S.A.

44-712 and amendments thereto, excluding all moneys credited to the

account of this state pursuant to section 903 of the federal social security

act, as amended, which have been appropriated by the state legislature,

whether or not withdrawn from the trust fund, and excluding contribu-

tions not yet paid on July 31 by total payrolls for contributing employers

for the preceding fiscal year which ended June 30. For rate years 2000,

2001 and 2002, schedule IIIA shall apply.


SCHEDULE IIIA--Fund Control

Ratios to Total Wages


Column A Column B

Reserve Fund Ratio Planned Yield

4.250 and over0.00
4.225 but less than 4.2500.01
4.200 but less than 4.2250.02
4.175 but less than 4.2000.03
4.150 but less than 4.1750.04
4.125 but less than 4.1500.05
4.100 but less than 4.1250.06
4.075 but less than 4.1000.07
4.050 but less than 4.0750.08
4.025 but less than 4.0500.09
4.000 but less than 4.0250.10
3.950 but less than 4.0000.11
3.900 but less than 3.9500.12
3.850 but less than 3.9000.13
3.800 but less than 3.8500.14
3.750 but less than 3.8000.15
3.700 but less than 3.7500.16
3.650 but less than 3.7000.17
3.600 but less than 3.6500.18
3.550 but less than 3.6000.19
3.500 but less than 3.5500.20
3.450 but less than 3.5000.21
3.400 but less than 3.4500.22
3.350 but less than 3.4000.23
3.300 but less than 3.3500.24
3.250 but less than 3.3000.25
3.200 but less than 3.2500.26
3.150 but less than 3.2000.27
3.100 but less than 3.1500.28
3.050 but less than 3.1000.29
3.000 but less than 3.0500.30
2.950 but less than 3.0000.31
2.900 but less than 2.9500.32
2.850 but less than 2.9000.33
2.800 but less than 2.8500.34
2.750 but less than 2.8000.35
2.700 but less than 2.7500.36
2.650 but less than 2.7000.37
2.600 but less than 2.6500.38
2.550 but less than 2.6000.39
2.500 but less than 2.5500.40
2.450 but less than 2.5000.41
2.400 but less than 2.4500.42
2.350 but less than 2.4000.43
2.300 but less than 2.3500.44
2.250 but less than 2.3000.45
2.200 but less than 2.2500.46
2.150 but less than 2.2000.47
2.100 but less than 2.1500.48
2.050 but less than 2.1000.49
2.000 but less than 2.0500.50
1.975 but less than 2.0000.51
1.950 but less than 1.9750.52
1.925 but less than 1.9500.53
1.900 but less than 1.9250.54
1.875 but less than 1.9000.55
1.850 but less than 1.8750.56
1.825 but less than 1.8500.57
1.800 but less than 1.8250.58
1.775 but less than 1.8000.59
1.750 but less than 1.7750.60
1.725 but less than 1.7500.61
1.700 but less than 1.7250.62
1.675 but less than 1.7000.63
1.650 but less than 1.6750.64
1.625 but less than 1.6500.65
1.600 but less than 1.6250.66
1.575 but less than 1.6000.67
1.550 but less than 1.5750.68
1.525 but less than 1.5500.69
1.500 but less than 1.5250.70
1.475 but less than 1.5000.71
1.450 but less than 1.4750.72
1.425 but less than 1.4500.73
1.400 but less than 1.4250.74
1.375 but less than 1.4000.75
1.350 but less than 1.3750.76
1.325 but less than 1.3500.77
1.300 but less than 1.3250.78
1.275 but less than 1.3000.79
1.250 but less than 1.2750.80
1.225 but less than 1.2500.81
1.200 but less than 1.2250.82
1.175 but less than 1.2000.83
1.150 but less than 1.1750.84
1.125 but less than 1.1500.85
1.100 but less than 1.1250.86
1.075 but less than 1.1000.87
1.050 but less than 1.0750.88
1.025 but less than 1.0500.89
1.000 but less than 1.0250.90
0.900 but less than 1.0000.91
0.800 but less than 0.9000.92
0.700 but less than 0.8000.93
0.600 but less than 0.7000.94
0.500 but less than 0.6000.95
0.400 but less than 0.5000.96
0.300 but less than 0.4000.97
0.200 but less than 0.3000.98
0.100 but less than 0.2000.99
Less than 0.100%1.00

SCHEDULE III--Fund Control

Ratios to Total Wages


Column A Column B

Reserve Fund Ratio Planned Yield

4.500 and over0.00
4.475 but less than 4.5000.01
4.450 but less than 4.4750.02
4.425 but less than 4.4500.03
4.400 but less than 4.4250.04
4.375 but less than 4.4000.05
4.350 but less than 4.3750.06
4.325 but less than 4.3500.07
4.300 but less than 4.3250.08
4.275 but less than 4.3000.09
4.250 but less than 4.2750.10
4.225 but less than 4.2500.11
4.200 but less than 4.2250.12
4.175 but less than 4.2000.13
4.150 but less than 4.1750.14
4.125 but less than 4.1500.15
4.100 but less than 4.1250.16
4.075 but less than 4.1000.17
4.050 but less than 4.0750.18
4.025 but less than 4.0500.19
4.000 but less than 4.0250.20
3.950 but less than 4.0000.21
3.900 but less than 3.9500.22
3.850 but less than 3.9000.23
3.800 but less than 3.8500.24
3.750 but less than 3.8000.25
3.700 but less than 3.7500.26
3.650 but less than 3.7000.27
3.600 but less than 3.6500.28
3.550 but less than 3.6000.29
3.500 but less than 3.5500.30
3.450 but less than 3.5000.31
3.400 but less than 3.4500.32
3.350 but less than 3.4000.33
3.300 but less than 3.3500.34
3.250 but less than 3.3000.35
3.200 but less than 3.2500.36
3.150 but less than 3.2000.37
3.100 but less than 3.1500.38
3.050 but less than 3.1000.39
3.000 but less than 3.0500.40
2.950 but less than 3.0000.41
2.900 but less than 2.9500.42
2.850 but less than 2.9000.43
2.800 but less than 2.8500.44
2.750 but less than 2.8000.45
2.700 but less than 2.7500.46
2.650 but less than 2.7000.47
2.600 but less than 2.6500.48
2.550 but less than 2.6000.49
2.500 but less than 2.5500.50
2.450 but less than 2.5000.51
2.400 but less than 2.4500.52
2.350 but less than 2.4000.53
2.300 but less than 2.3500.54
2.250 but less than 2.3000.55
2.200 but less than 2.2500.56
2.150 but less than 2.2000.57
2.100 but less than 2.1500.58
2.050 but less than 2.1000.59
2.000 but less than 2.0500.60
1.975 but less than 2.0000.61
1.950 but less than 1.9750.62
1.925 but less than 1.9500.63
1.900 but less than 1.9250.64
1.875 but less than 1.9000.65
1.850 but less than 1.8750.66
1.825 but less than 1.8500.67
1.800 but less than 1.8250.68
1.775 but less than 1.8000.69
1.750 but less than 1.7750.70
1.725 but less than 1.7500.71
1.700 but less than 1.7250.72
1.675 but less than 1.7000.73
1.650 but less than 1.6750.74
1.625 but less than 1.6500.75
1.600 but less than 1.6250.76
1.575 but less than 1.6000.77
1.550 but less than 1.5750.78
1.525 but less than 1.5500.79
1.500 but less than 1.5250.80
1.475 but less than 1.5000.81
1.450 but less than 1.4750.82
1.425 but less than 1.4500.83
1.400 but less than 1.4250.84
1.375 but less than 1.4000.85
1.350 but less than 1.3750.86
1.325 but less than 1.3500.87
1.300 but less than 1.3250.88
1.275 but less than 1.3000.89
1.250 but less than 1.2750.90
1.225 but less than 1.2500.91
1.200 but less than 1.2250.92
1.175 but less than 1.2000.93
1.150 but less than 1.1750.94
1.125 but less than 1.1500.95
1.100 but less than 1.1250.96
1.075 but less than 1.1000.97
1.050 but less than 1.0750.98
1.025 but less than 1.0500.99
1.000 but less than 1.0251.00
0.900 but less than 1.0001.01
0.800 but less than 0.9001.02
0.700 but less than 0.8001.03
0.600 but less than 0.7001.04
0.500 but less than 0.6001.05
0.400 but less than 0.5001.06
0.300 but less than 0.4001.07
0.200 but less than 0.3001.08
0.100 but less than 0.2001.09
Less than 0.100%1.10

(B) Adjustment to taxable wages. The planned yield as a percent of

total wages, as determined in this subsection (a)(3), shall be adjusted to

taxable wages by multiplying by the ratio of total wages to taxable wages

for all contributing employers for the preceding fiscal year ending June

30, except, with regard to a year in which the taxable wage base changes.

The taxable wages used in the calculation for such a year and the following

year shall be an estimate of what the taxable wages would have been if

the new taxable wage base had been in effect during all of the preceding

fiscal year ending June 30.

(C) Effective rates. Except with regard to rates for negative account

balance employers, employer contribution rates to be effective for the

ensuing calendar year shall be computed by adjusting proportionately the

experience factors from schedule I of this section to the required yield

on taxable wages. For the purposes of this subsection (a)(3), all rates

computed shall be rounded to the nearest .01% and for calendar year

1983 and ensuing calendar years, the maximum effective contribution rate

shall not exceed 5.4%. For rate years 1995, 1996, 1997, 1998 and 1999,

employers, who are current in filing of all reports and in payment of all

contributions due, shall be issued a contributions rate of 0%. To be eli-

gible for the 0% rate for rate year 1995, an employer must file all delin-

quent reports and pay all contributions due within a 30-day period fol-

lowing the date of mailing of the amended rating notice. For rate year

1996, 1997, 1998 and 1999 in order to be eligible for the 0% rate, em-

ployers must file all reports due and pay all contributions due on or before

January 31, 1996, January 31, 1997, January 31, 1998 and January 31,

1999, respectively. However, for rate year 1996, 1997, 1998 and 1999 the

0% contribution rate for such eligible employers shall not be effective if

the reserve fund ratio in column A of schedule III as determined by this

section is less than 1.75%. For rate years 1996, 1997, 1998 and 1999 the

rates in schedule IIA shall apply unless the reserve fund ratio in column

A of schedule III as determined by this section is less than 1.75%. On

January 15 of 2000, 2001 and 2002, the secretary shall report to the leg-

islature concerning the adequacy of the fund. On July 15 of 2000, 2001

and 2002, the secretary shall make the same report to the legislative co-

ordinating council. As a part of such report, the secretary shall include

any recommendations for adjustment of schedule IIIA.

(b) Successor classification. (1) For the purposes of this subsection

(b), whenever an employing unit, whether or not it is an ``employing unit''

within the meaning of subsection (g) of K.S.A. 44-703 and amendments

thereto, becomes an employer pursuant to subsection (h)(4) of K.S.A. 44-

703 and amendments thereto or is an employer at the time of acquisition

and meets the definition of a ``successor employer'' as defined by sub-

section (dd) of K.S.A. 44-703 and amendments thereto and is controlled

substantially either directly or indirectly by legally enforceable means or

otherwise by the same interest or interests, shall acquire the experience

rating factors of the predecessor employer. These factors consist of all

contributions paid, benefit experience and annual payrolls of the prede-

cessor employer.

(2) A successor employer as defined by subsection (h)(4) or subsec-

tion (dd) of K.S.A. 44-703 and amendments thereto may receive the ex-

perience rating factors of the predecessor employer if an application is

made to the secretary or the secretary's designee in writing within 120

days of the date of the transfer.

(3) Whenever an employing unit, whether or not it is an ``employing

unit'' within the meaning of subsection (g) of K.S.A. 44-703 and amend-

ments thereto, acquires or in any manner succeeds to a percentage of an

employer's annual payroll which is less than 100% and intends to continue

the acquired percentage as a going business, (A) shall acquire the same

percentage of the predecessor's experience factors if the employer is con-

trolled substantially, either directly or indirectly or by legally enforceable

means or otherwise, by the same interest or interests or (B) may acquire

the same percentage of the predecessor's experience factors if: (i) The

predecessor employer and successor employing unit make an application

in writing on the form prescribed by the secretary, (ii) the application is

submitted within 120 days of the date of the transfer, (iii) the successor

employing unit is or becomes an employer subject to this act immediately

after the transfer, (iv) the percentage of the experience rating factors

transferred shall not be thereafter used in computing the contribution

rate for the predecessor employer, and (v) the secretary finds that such

transfer will not tend to defeat or obstruct the object and purposes of this

act.

(4) If the acquiring employing unit was an employer subject to this

act prior to the date of the transfer, the rate of contribution for the period

from such date to the end of the then current contribution year shall be

the same as the contribution rate prior to the date of the transfer. An

employing unit which was not subject to this act prior to the date of the

transfer shall have a newly computed rate based on the transferred ex-

perience rating factors as of the computation date immediately preceding

the date of acquisition. These experience rating factors consist of all con-

tributions paid, benefit experience and annual payrolls.

(5) Whenever an employer's account has been terminated as pro-

vided in subsections (d) and (e) of K.S.A. 44-711 and amendments thereto

and the employer continues with employment to liquidate the business

operations, that employer shall continue to be an ``employer'' subject to

the employment security law as provided in subsection (h)(8) of K.S.A.

44-703 and amendments thereto. The rate of contribution from the date

of transfer to the end of the then current calendar year shall be the same

as the contribution rate prior to the date of the transfer. At the completion

of the then current calendar year, the rate of contribution shall be that

of a ``new employer'' as described in subsection (a)(1) of this section.

(6) No rate computation will be permitted an employing unit suc-

ceeding to the experience of another employing unit pursuant to this

section for any period subsequent to such succession except in accordance

with rules and regulations adopted by the secretary. Any such regulations

shall be consistent with federal requirements for additional credit allow-

ance in section 3303 of the federal internal revenue code of 1986, and

consistent with the provisions of this act.

(c) Voluntary contributions. Notwithstanding any other provision of

the employment security law, any employer may make voluntary pay-

ments for the purpose of reducing or maintaining a reduced rate in ad-

dition to the contributions required under this section. Such voluntary

payments may be made only during the thirty-day period immediately

following the date of mailing of experience rating notices for a calendar

year. All such voluntary contribution payments shall be paid prior to the

expiration of 120 days after the beginning of the year for which such rates

are effective. The amount of voluntary contributions shall be credited to

the employer's account as of the next preceding computation date and

the employer's rate shall be computed accordingly, except that no em-

ployer's rate shall be reduced more than five rate groups as provided in

schedule I of this section as the result of a voluntary payment. An em-

ployer not having a negative account balance may have such employer's

rate reduced not more than five rate groups as provided in schedule I of

this section as a result of a voluntary payment. An employer having a

negative account balance may have such employer's rate reduced to that

prescribed for rate group 51 of schedule I of this section by making a

voluntary payment in the amount of such negative account balance or to

that rate prescribed for rate groups 50 through 47 of schedule I of this

section by making an additional voluntary payment that would increase

such employer's reserve ratio to the lower limit required for such rate

groups 50 through 47. Under no circumstances shall voluntary payments

be refunded in whole or in part.

(d) As used in this section, ``negative account balance employer''

means an eligible employer whose total benefits charged to such em-

ployer's account for all past years have exceeded all contributions paid by

such employer for all such years.

(e) The secretary of human resources shall annually prepare and sub-

mit a certification as to the solvency and adequacy of the amount credited

to the state of Kansas' account in the federal employment security trust

fund to the governor and the employment security advisory council. Com-

mencing in calendar year 1994, the certification shall be submitted on or

before December 1 of each calendar year and shall be for the twelve-

month period ending on June 30 of that calendar year. In arriving at the

certification contributions paid on or before July 31 following the twelve-

month period ending date of June 30 shall be considered. Each certifi-

cation shall be used to determine the need for any adjustment to schedule

III in subsection (a)(3)(A) and to assist in preparing legislation to accom-

plish any such adjustment.

Sec. 5. K.S.A. 44-717 is hereby amended to read as follows: 44-717.

(a) (1) Penalties on past-due reports, interest on past-due contributions,

payments in lieu of contributions and benefit cost payments. Any em-

ployer or any officer or agent of an employer, who fails to file any wage

report or contribution return by the last day of the month following the

close of each calendar quarter to which they are related shall pay a penalty

as provided by this subsection (a) for each month or fraction of a month

until the report or return is received by the secretary of human resources.

The penalty for each month or fraction of a month shall be an amount

equal to .05% of the total wages paid by the employer during the quarter,

except that no penalty shall be less than $25 nor more than $200 for each

such report or return not timely filed. Contributions and benefit cost

payments unpaid by the last day of the month following the last calendar

quarter to which they are related and payments in lieu of contributions

unpaid 30 days after the mailing of the statement of benefit charges, shall

bear interest at the rate of 1% per month or fraction of a month until

payment is received by the secretary of human resources except that an

employing unit, which is not theretofore subject to this law and which

becomes an employer and does not refuse to make the reports, returns

and contributions, payments in lieu of contributions and benefit cost pay-

ments required under this law, shall not be liable for such penalty or

interest if the wage reports and contribution returns required are filed

and the contributions, payments in lieu of contributions or benefit cost

payments required are paid within 10 days following notification by the

secretary of human resources that a determination has been made fixing

its status as an employer subject to this law. Upon written request and

good cause shown, the secretary of human resources may abate any pen-

alty or interest or portion thereof provided for by this subsection (a).

Interest amounting to less than $1 shall be waived by the secretary of

human resources and shall not be collected. Penalties and interest col-

lected pursuant to this subsection shall be paid into the special employ-

ment security fund. For all purposes under this section, amounts assessed

as surcharges under subsection (j) or under K.S.A. 44-710a and amend-

ments thereto shall be considered to be contributions and shall be subject

to penalties and interest imposed under this section and to collection in

the manner provided by this section. For purposes of this subsection, a

wage report, a contribution return, a contribution, a payment in lieu of

contribution or a benefit cost payment is deemed to be filed or paid as

of the date it is placed in the United States mail.

(2) Notices of payment and reporting delinquency to Indian tribes or

their tribal units shall include information that failure to make full pay-

ment within the prescribed time frame:

(i) will cause the Indian tribe to be liable for taxes under FUTA;

(ii) will cause the Indian tribe to lose the option to make payments in

lieu of contributions;

(iii) could cause the Indian tribe to be excepted from the definition of

``employer,'' as provided in paragraph (h)(3) of K.S.A. 44-703, and

amendments thereto, and services in the employ of the Indian tribe, as

provided in paragraph (i)(3)(E) of K.S.A. 44-703, and amendments

thereto, to be excepted from ``employment.''

(b) Collection. (1) If, after due notice, any employer defaults in pay-

ment of any penalty, contributions, payments in lieu of contributions,

benefit cost payments, or interest thereon the amount due may be col-

lected by civil action in the name of the secretary of human resources

and the employer adjudged in default shall pay the cost of such action.

Civil actions brought under this section to collect contributions, payments

in lieu of contributions, benefit cost payments, penalties, or interest

thereon from an employer shall be heard by the district court at the

earliest possible date and shall be entitled to preference upon the cal-

endar of the court over all other civil actions except petitions for judicial

review under this act and cases arising under the workmen's compensa-

tion act. All liability determinations of contributions due, payments in lieu

of contributions or benefit cost payments due shall be made within a

period of five years from the date such contributions, payments in lieu of

contributions or benefit cost payments were due except such determi-

nations may be made for any time when an employer has filed fraudulent

reports with intent to evade liability.

(2) Any employing unit which is not a resident of this state and which

exercises the privilege of having one or more individuals perform service

for it within this state and any resident employing unit which exercises

that privilege and thereafter removes from this state, shall be deemed

thereby to appoint the secretary of state as its agent and attorney for the

acceptance of process in any civil action under this subsection. In insti-

tuting such an action against any such employing unit the secretary of

human resources shall cause such process or notice to be filed with the

secretary of state and such service shall be sufficient service upon such

employing unit and shall be of the same force and validity as if served

upon it personally within this state. The secretary of human resources

shall send notice immediately of the service of such process or notice,

together with a copy thereof, by registered or certified mail, return receipt

requested, to such employing unit at its last-known address and such

return receipt, the affidavit of compliance of the secretary of human re-

sources with the provisions of this section, and a copy of the notice of

service, shall be appended to the original of the process filed in the court

in which such civil action is pending.

(3) Any contractor, who is or becomes an employer under the pro-

visions of this act, who contracts with any subcontractor, who also is or

becomes an employer under the provisions of this act, shall be directly

liable for such contributions, penalties and interest due from the subcon-

tractor and the secretary of human resources shall have all of the remedies

of collection against the contractor under the provisions of this act as

though the services in question were performed directly for the contrac-

tor, unless the contractor requires the subcontractor to provide a good

and sufficient bond guaranteeing payment of all contributions, penalties

and interest due or to become due with respect to wages paid for em-

ployment on the contract. For the purpose of this subsection (b)(3), the

words, ``contractor'' and ``subcontractor'' mean and include individuals,

partnerships, firms or corporations, or other associations of persons en-

gaged in the business of the construction, alteration, repairing, disman-

tling or demolition of buildings, roads, bridges, viaducts, sewers, water

and gas mains, streets, disposal plants, water filters, tanks and towers,

airports, dams, levees and canals, oil and gas wells, water wells, pipelines,

and every other type of structure, project, development or improvement

coming within the definition of real property.

(4) The district courts of this state shall entertain, in the manner

provided in subsections (b)(1), (b)(2) and (b)(3), actions to collect con-

tributions, payments in lieu of contributions, benefit cost payments and

other amounts owed including interest thereon for which liability has

accrued under the employment security law of any other state or of the

federal government.

(c) Priorities under legal dissolutions or distributions. In the event of

any distribution of employer's assets pursuant to an order of any court

under the laws of this state, including but not limited to any probate

proceeding, interpleader, receivership, assignment for benefit of credi-

tors, adjudicated insolvency, composition or similar proceedings, contri-

butions or payments in lieu of contributions then or thereafter due shall

be paid in full from the moneys which shall first come into the estate,

prior to all other claims, except claims for wages of not more than $250

to each claimant, earned within six months of the commencement of the

proceedings. In the event of an employer's adjudication in bankruptcy,

judicially confirmed extension proposal, or composition, under the federal

bankruptcy act of 1898, as amended, contributions then or thereafter due

shall be entitled to such priority as is provided in that act for taxes due

any state of the United States.

(d) Assessments. If any employer fails to file a report or return re-

quired by the secretary of human resources for the determination of con-

tributions, or payments in lieu of contributions, or benefit cost payments,

the secretary of human resources may make such reports or returns or

cause the same to be made, on the basis of such information as the sec-

retary may be able to obtain and shall collect the contributions, payments

in lieu of contributions or benefit cost payments as determined together

with any interest due under this act. The secretary of human resources

shall immediately forward to the employer a copy of the assessment by

registered or certified mail to the employer's address as it appears on the

records of the agency, and such assessment shall be final unless the em-

ployer protests such assessment and files a corrected report or return for

the period covered by the assessment within 15 days after the mailing of

the copy of assessment. Failure to receive such notice shall not invalidate

the assessment. Notice in writing shall be presumed to have been given

when deposited as certified or registered matter in the United States mail,

addressed to the person to be charged with notice at such person's address

as it appears on the records of the agency.

(e) (1) Lien. If any employer or person who is liable to pay contri-

butions, payments in lieu of contributions or benefit cost payments ne-

glects or refuses to pay the same after demand, the amount, including

interest and penalty, shall be a lien in favor of the state of Kansas, sec-

retary of human resources, upon all property and rights to property,

whether real or personal, belonging to such employer or person. Such

lien shall not be valid as against any mortgagee, pledgee, purchaser or

judgment creditor until notice thereof has been filed by the secretary of

human resources in the office of register of deeds in any county in the

state of Kansas, in which such property is located, and when so filed shall

be notice to all persons claiming an interest in the property of the em-

ployer or person against whom filed. The register of deeds shall enter

such notices in the financing statement record and shall also record the

same in full in miscellaneous record and index the same against the name

of the delinquent employer. The register of deeds shall accept, file, and

record such notice without prepayment of any fee, but lawful fees shall

be added to the amount of such lien and collected when satisfaction is

presented for entry. Such lien shall be satisfied of record upon the pres-

entation of a certificate of discharge by the state of Kansas, secretary of

human resources. Nothing contained in this subsection (e) shall be con-

strued as an invalidation of any lien or notice filed in the name of the

unemployment compensation division or the employment security divi-

sion and such liens shall be and remain in full force and effect until

satisfied as provided by this subsection (e).

(2) Authority of secretary or authorized representative. If any em-

ployer or person who is liable to pay any contributions, payments in lieu

of contributions or benefit cost payments, including interest and penalty,

neglects or refuses to pay the same within 10 days after notice and de-

mand therefor, the secretary or the secretary's authorized representative

may collect such contributions, payments in lieu of contributions or ben-

efit cost payments, including interest and penalty, and such further

amount as is sufficient to cover the expenses of the levy, by levy upon all

property and rights to property which belong to the employer or person

or which have a lien created thereon by this subsection (e) for the pay-

ment of such contributions, payments in lieu of contributions or benefit

cost payments, including interest and penalty. As used in this subsection

(e), ``property'' includes all real property and personal property, whether

tangible or intangible, except such property which is exempt under K.S.A.

60-2301 et seq., and amendments thereto. Levy may be made upon the

accrued salary or wages of any officer, employee or elected official of any

state or local governmental entity which is subject to K.S.A. 60-723 and

amendments thereto, by serving a notice of levy as provided in subsection

(d) of K.S.A. 60-304 and amendments thereto. If the secretary or the

secretary's authorized representative makes a finding that the collection

of the amount of such contributions, payments in lieu of contributions or

benefit cost payments, including interest and penalty, is in jeopardy, no-

tice and demand for immediate payment of such amount may be made

by the secretary or the secretary's authorized representative and, upon

failure or refusal to pay such amount, immediate collection of such

amount by levy shall be lawful without regard to the ten-day period pro-

vided in this subsection (e).

(3) Seizure and sale of property. The authority to levy granted under

this subsection (e) includes the power of seizure by any means. A levy

shall extend only to property possessed and obligations existing at the

time thereof. In any case in which the secretary or the secretary's au-

thorized representative may levy upon property or rights to property, the

secretary or the secretary's authorized representative may seize and sell

such property or rights to property.

(4) Successive seizures. Whenever any property or right to property

upon which levy has been made under this subsection (e) is not sufficient

to satisfy the claim of the secretary for which levy is made, the secretary

or the secretary's authorized representative may proceed thereafter and

as often as may be necessary, to levy in like manner upon any other

property or rights to property which belongs to the employer or person

against whom such claim exists or upon which a lien is created by this

subsection (e) until the amount due from the employer or person, to-

gether with all expenses, is fully paid.

(f) Warrant. In addition or as an alternative to any other remedy

provided by this section and provided that no appeal or other proceeding

for review permitted by this law shall then be pending and the time for

taking thereof shall have expired, the secretary of human resources or an

authorized representative of the secretary may issue a warrant certifying

the amount of contributions, payments in lieu of contributions, benefit

cost payments, interest or penalty, and the name of the employer liable

for same after giving 15 days prior notice. Upon request, service of final

notices shall be made by the sheriff within the sheriff's county, by the

sheriff's deputy or some person specially appointed by the secretary for

that purpose, or by the secretary's designee. A person specially appointed

by the secretary or the secretary's designee to serve final notices may

make service any place in the state. Final notices shall be served as fol-

lows:

(1) Individual. Service upon an individual, other than a minor or in-

capacitated person, shall be made by delivering a copy of the final notice

to the individual personally or by leaving a copy at such individual's dwell-

ing house or usual place of abode with some person of suitable age and

discretion then residing therein, by leaving a copy at the business estab-

lishment of the employer with an officer or employee of the establish-

ment, or by delivering a copy to an agent authorized by appointment or

by law to receive service of process, but if the agent is one designated by

a statute to receive service, such further notice as the statute requires

shall be given. If service as prescribed above cannot be made with due

diligence, the secretary or the secretary's designee may order service to

be made by leaving a copy of the final notice at the employer's dwelling

house, usual place of abode or business establishment.

(2) Corporations and partnerships. Service upon a domestic or for-

eign corporation or upon a partnership or other unincorporated associa-

tion, when by law it may be sued as such, shall be made by delivering a

copy of the final notice to an officer, partner or resident managing or

general agent thereof by leaving a copy at any business office of the em-

ployer with the person having charge thereof or by delivering a copy to

any other agent authorized by appointment or required by law to receive

service of process, if the agent is one authorized by law to receive service

and, if the law so requires, by also mailing a copy to the employer.

(3) Refusal to accept service. In all cases when the person to be

served, or an agent authorized by such person to accept service of peti-

tions and summonses, shall refuse to receive copies of the final notice,

the offer of the duly authorized process server to deliver copies thereof

and such refusal shall be sufficient service of such notice.

(4) Proof of service. (A) Every officer to whom a final notice or other

process shall be delivered for service within or without the state, shall

make return thereof in writing stating the time, place and manner of

service of such writ, and shall sign such officer's name to such return.

(B) If service of the notice is made by a person appointed by the

secretary or the secretary's designee to make service, such person shall

make an affidavit as to the time, place and manner of service thereof in

a form prescribed by the secretary or the secretary's designee.

(5) Time for return. The officer or other person receiving a final no-

tice shall make a return of service promptly and shall send such return

to the secretary or the secretary's designee in any event within 10 days

after the service is effected. If the final notice cannot be served it shall

be returned to the secretary or the secretary's designee within 30 days

after the date of issue with a statement of the reason for the failure to

serve the same. The original return shall be attached to and filed with

any warrant thereafter filed.

(6) Service by mail. (A) Upon direction of the secretary or the sec-

retary's designee, service by mail may be effected by forwarding a copy

of the notice to the employer by registered or certified mail to the em-

ployer's address as it appears on the records of the agency. A copy of the

return receipt shall be attached to and filed with any warrant thereafter

filed.

(B) The secretary of human resources or an authorized representative

of the secretary may file the warrant for record in the office of the clerk

of the district court in the county in which the employer owing such

contributions, payments in lieu of contributions, benefit cost payments,

interest, or penalty has business property. The warrant shall certify the

amount of contributions, payments in lieu of contributions, benefit cost

payments, interest and penalty due, and the name of the employer liable

for such amount. It shall be the duty of the clerk of the district court to

file such warrant of record and enter the warrant in the records of the

district court for judgment and decrees under the procedure prescribed

for filing transcripts of judgment.

(C) The clerk shall enter, on the day the warrant is filed, the case on

the appearance docket, together with the amount and the time of filing

the warrant. From the time of filing such warrant, the amount of the

contributions, payments in lieu of contributions, benefit cost payments,

interest, and penalty, certified therein, shall have the force and effect of

a judgment of the district court until the same is satisfied by the secretary

of human resources or an authorized representative or attorney for the

secretary. Execution shall be issuable at the request of the secretary of

human resources, an authorized representative or attorney for the sec-

retary, as is provided in the case of other judgments.

(D) Postjudgment procedures shall be the same as for judgments

according to the code of civil procedure.

(E) Warrants shall be satisfied of record by payment to the clerk of

the district court of the contributions, payments in lieu of contributions,

benefit cost payments, penalty, interest to date, and court costs. Warrants

may also be satisfied of record by payment to the clerk of the district

court of all court costs accrued in the case and by filing a certificate by

the secretary of human resources, certifying that the contributions, pay-

ments in lieu of contributions, benefit cost payments, interest and penalty

have been paid.

(g) Remedies cumulative. The foregoing remedies shall be cumulative

and no action taken shall be construed as an election on the part of the

state or any of its officers to pursue any remedy or action under this

section to the exclusion of any other remedy or action for which provision

is made.

(h) Refunds. If any individual, governmental entity or organization

makes application for refund or adjustment of any amount paid as con-

tributions, benefit cost payments or interest under this law and the sec-

retary of human resources determines that such amount or any portion

thereof was erroneously collected, except for amounts less than $1, the

secretary of human resources shall allow such individual or organization

to make an adjustment thereof, in connection with subsequent contri-

bution payments, or if such adjustment cannot be made the secretary of

human resources shall refund the amount, except for amounts less than

$1, from the employment security fund, except that all interest errone-

ously collected which has been paid into the special employment security

fund shall be refunded out of the special employment security fund. No

adjustment or refund shall be allowed with respect to a payment as con-

tributions, benefit cost payments or interest unless an application therefor

is made on or before whichever of the following dates is later: (1) One

year from the date on which such payment was made; or (2) three years

from the last day of the period with respect to which such payment was

made. For like cause and within the same period adjustment or refund

may be so made on the secretary's own initiative. The secretary of human

resources shall not be required to refund any contributions, payments in

lieu of contributions or benefit cost payments based upon wages paid

which have been used as base-period wages in a determination of a claim-

ant's benefit rights when justifiable and correct payments have been made

to the claimant as the result of such determination. For all taxable years

commencing after December 31, 1997, interest at the rate prescribed in

K.S.A. 79-2968 and amendments thereto shall be allowed on a contri-

bution or benefit cost payment which the secretary has determined was

erroneously collected pursuant to this section.

(i) (1) Cash deposit or bond. If any contributing employer is delin-

quent in making payments under the employment security law during any

two quarters of the most recent four-quarter period, the secretary or the

secretary's authorized representative shall have the discretionary power

to require such contributing employer either to deposit cash or to file a

bond with sufficient sureties to guarantee the payment of contributions,

penalty and interest owed by such employer.

(2) The amount of such cash deposit or bond shall be not less than

the largest total amount of contributions, penalty and interest reported

by the employer in two of the four calendar quarters preceding any de-

linquency. Such cash deposit or bond shall be required until the employer

has shown timely filing of reports and payment of contributions for four

consecutive calendar quarters.

(3) Failure to file such cash deposit or bond shall subject the em-

ployer to a surcharge of 2.0% which shall be in addition to the rate of

contributions assigned to the employer under K.S.A. 44-710a and amend-

ments thereto. Contributions paid as a result of this surcharge shall not

be credited to the employer's experience rating account. This surcharge

shall be effective during the next full calendar year after its imposition

and during each full calendar year thereafter until the employer has filed

the required cash deposit or bond or has shown timely filing of reports

and payment of contributions for four consecutive calendar quarters.

(j) Any officer, major stockholder or other person who has charge of

the affairs of an employer, which is an employing unit described in section

501(c)(3) of the federal internal revenue code of 1954 or which is any

other corporate organization or association, or any member or manager

of a limited liability company, or any public official, who willfully fails to

pay the amount of contributions, payments in lieu of contributions or

benefit cost payments required to be paid under the employment security

law on the date on which such amount becomes delinquent, shall be

personally liable for the total amount of the contributions, payments in

lieu of contributions or benefit cost payments and any penalties and in-

terest due and unpaid by such employing unit. The secretary or the sec-

retary's authorized representative may assess such person for the total

amount of contributions, payments in lieu of contributions or benefit cost

payments and any penalties, and interest computed as due and owing.

With respect to such persons and such amounts assessed, the secretary

shall have available all of the collection remedies authorized or provided

by this section.

Sec. 6. K.S.A. 44-703, 44-706, 44-710, 44-710a and 44-717 are

hereby repealed.

Sec. 7. This act shall take effect and be in force from and after its

publication in the statute book.

Approved April 19, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001