SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2401
As Amended by House Committee on
Commerce, Labor and Economic Development

Brief*
HB 2401, as amended, would make various
amendments to law related to unemployment compensation.
The bill would make changes to the temporary expansion of
the Employment Security Board of Review, change the time
for new unemployment accounts and reports after business
acquisitions, make certain electronic filing and payment
provisions mandatory for certain employers, provide for an
audit process related to interview non-participation, provide
for additional extensions of the unemployment modernization
project, make changes to temporary unemployment, and
define benefit year to always begin on a Sunday.
The bill would also make various technical and
conforming changes to unemployment compensation law.

Temporarily Expanded Employment Security Board of
Review Changes
The bill would permit the Employment Security Board of
Review to be composed of up to six members through June
30, 2024.
[Note: Current law requires the board to be composed of
exactly six members to that date, at which time it will revert to
three members.]

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Business Acquisition Changes
The bill would provide that upon the completion of a
business acquisition involving two employers, a new account
would be established and contribution rate determined as of
the first day of the next calendar year, rather than the first day
of the calendar quarter as in current law, following the
completion of the business acquisition.

Electronic Filing and Payment Requirements
The bill would require all employers with 25 or more
employees and all third-party administrators with 25 or more
client employees to file all wage reports, contribution returns,
payments, and interest assessments electronically.

Interview Non-participation Audit Process
The bill would require the modernized unemployment
compensation system to include an audit process permitting
employers to submit reports regarding the work search
requirement or My Reemployment Plan and related to
applicants accepting interview appointments, but not
participating or notifying the employer of their inability to
participate in the scheduled interview.
The Secretary of Labor (Secretary) would be required to
notify employers of the reporting options in annual summaries
of benefit changes and rate notices. The bill would not require
the audit system to be implemented until a new
unemployment compensation information technology system
is completed.

Unemployment Modernization Project Extensions
The bill would provide the Legislative Coordinating
Council (LCC) the authority to extend the deadline for the full
implementation of a new unemployment compensation
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information technology system as often as the LCC deems
appropriate. The Secretary would be required to provide
written notice to the LCC and the Unemployment
Compensation Modernization and Improvement Council
(Council) at least 30 days prior to the expiration of the
deadline indicating if an extension of the deadline is being
sought and the basis for the extension. The bill would permit
the chairperson or any member of the Council to provide a
written statement to the LCC regarding any extension.
The bill would specify that the failure to provide written
notice or meet any deadline would not affect the LCC’s ability
to extend the deadline and would permit retroactive
extensions of the deadline.

Temporary Unemployment
The bill would define “temporary unemployment” to
mean an individual has been laid off due to lack of work by an
employing unit for which the individual has worked full time
and reasonably expects to resume full-time work at a future
date and the individual’s employment with the employing unit
has been temporarily suspended and not terminated.
Temporary unemployment would generally be limited to
eight consecutive weeks. However, extensions of up to four
additional weeks would be permitted upon approval of the
Secretary. Extensions would be allowed only upon a
determination by the Secretary that the employer has filed all
required employment security reports and paid all required
contributions and is either a positive account employer or a
negative account employer with a calculated reserve ratio
that has improved since the employer’s most recent reporting
year.


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Benefit Year Definition
The bill would modify the definition of “benefit year” to
specify that unemployment benefit years always begin on a
Sunday.

Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of a representative of the Department of Labor.

House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by representatives of the Department of Labor
and the Kansas State Council of the Society for Human
Resource Management. Proponents generally stated the bill
contained a number of provisions that would assist with the
modernization of the state unemployment compensation
system.
No other testimony was provided.
The House Committee amended the bill to insert the
provisions providing for an audit process for interview non-
participation, allowing for further extensions of the
unemployment modernization project, and allowing for
extensions of temporary unemployment for up to 12 weeks.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of Labor
indicates enactment of the bill would result in annual savings
of up to $30,000 and one-time savings of an indeterminate
amount. The Department of Revenue indicates enactment of
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the bill would require an additional expenditure of $600. Any
fiscal effect associated with the bill is not reflected in The FY
2024 Governor’s Budget Report.


Unemployment compensation; modernization; temporary unemployment; interview
ghosting; extension of time


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Statutes affected:
As introduced: 44-703, 44-710a, 44-709, 44-717
As Amended by House Committee: 44-703, 44-710a, 44-775, 44-705, 44-709, 44-717, 44-772