SESSION OF 2024
SUPPLEMENTAL NOTE ON SUBSTITUTE FOR HOUSE
BILL NO. 2570
As Amended by Senate Committee on
Commerce

Brief*
Sub. for HB 2570, as amended, would make various
amendments to law related to unemployment compensation.
The bill would:
● Include revisions to the unemployment
compensation taxable wage base and tax rates;
● Modify rate contributions for new employers;
● Provide for an annual write-off of a portion of
negative unemployment compensation account
balances for certain employers;
● Require a reporting and audit process for interview
non-participation;
● Provide for the suspension of state unemployment
benefits when individuals are receiving certain
federal unemployment benefits;
● Provide for minimum qualifications for members of
the Employment Security Board of Review;
● Provide for extensions to the unemployment
modernization process and the Unemployment

____________________
*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
 Compensation Modernization and Improvement
Council;
● Provide for temporary unemployment and
extensions thereto;
● Allow certain school bus drivers to participate in
work share agreements;
● Abolish the Employment Security Interest
Assessment Fund;
● Revise annual Department of Labor reporting
requirements; and
● Make other technical changes to the
unemployment compensation system.
The bill would also make various technical and
conforming changes to unemployment compensation law.

Taxable Wage Base, Tax Rates, and Negative Account
Balance Write-off
The taxable wage base for employer contributions to the
Employment Security Fund, currently set at $14,000, would
be set as a percentage of the statewide average annual wage
and progressively increase, as follows:
● 25.0 percent beginning in calendar year 2026;
● 30.0 percent beginning in calendar year 2028;
● 35.0 percent beginning in calendar year 2029; and
● 40.0 percent beginning in calendar year 2030.
Beginning in calendar year 2031, the wage base would
remain at 40.0 percent of the statewide average annual wage
unless any combination of employer contribution rate

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schedules G through M are in effect for any five preceding
consecutive calendar years occurring after 2031. Should that
occur, the bill would increase the taxable wage base to 45.0
percent of the statewide average annual wage regardless of
changes to the rate tables. [Note: Rate schedules G through
M include the standard rate table and the tables providing for
solvency adjustments.]
The employer contribution rates provided in the rate
schedules would be revised to provide for a 0.0 percent rate
group for the most positively rated employers, reduce rates
for all positively rated employers, and make changes to
solvency and credit rate adjustments in conformity with the
adjustments to the wage base described above.
The bill would also decrease rates for new employers
not eligible for rate-based contributions from 6.0 percent to
5.55 percent of calendar year wages paid for construction
industry employers, and from 2.7 percent to 1.75 percent of
calendar year wages paid for all other employers.
The bill would provide, beginning July 1, 2024, for an
annual calculated debt forgiveness option for active negative-
rated employers with a reserve ratio of -7.150 percent or less.
For such employers, a portion of benefit charges would be
conditionally forgiven in order to bring the employer to a
reserve ratio of -7.150 percent, and the employer would be
assigned to the lowest rate group for the next three calendar
years. The bill would provide that any such employer could
avoid such assignment by foregoing the debt forgiveness
option and submitting a voluntary contribution in an amount
sufficient to establish their reserve ratio equal to or greater
than -7.149 percent for the following calendar year.
The deadline for employers to make voluntary
contributions for the purpose of reducing the employer’s
contribution rate would be extended from 30 to 90 days
following the date of mailing of experiences rating notices for
the following calendar year.

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 The bill would require the Secretary of Labor (Secretary)
to prepare contribution rate tables showing the cost for rated
employers per employee for the previous, current, and
ensuing rate year and publish such tables no less than 30
days prior to the end of the calendar year.

Interview Non-participation Audit Process (“Interview
Ghosting”)
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 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.

Suspension of State Unemployment Benefits When
Receiving Federal Unemployment Benefits
The bill would require, to the extent authorized by
federal law, the suspension of state unemployment benefits
when an individual is eligible for an equal or greater weekly
benefit amount under a federal unemployment program. The
suspension of state benefits would terminate upon the
exhaustion of the federal benefits and would not apply to any
federal unemployment benefit that is paid in addition to the
state weekly benefit amount.


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Employment Security Board of Review Candidate
Qualifications
The bill would provide the minimum qualifications for
members of the Employment Security Board of Review, in
order of priority, to be:
● At least eight years of direct experience with
human resources processes, policies, guidelines,
or employee relations;
● At least three years of direct experience with
employment security laws and processes; and
● Knowledge of unemployment and labor laws.
The bill would require applications for the Board to be
submitted to the Director of Unemployment, who would
determine if the applicant meets the required qualifications
and submit qualified applicants to the Workers Compensation
and Employment Security Boards Nominating Committee.

Unemployment Modernization Project Extensions and
Unemployment Compensation Modernization and
Improvement Council Sunset Extension
The bill would provide the Legislative Coordinating
Council (LCC) the authority to extend the deadline for the full
implementation of a new unemployment compensation
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 Council chairperson or any member to provide a written
statement to the LCC regarding any extension.

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 The bill would specify that 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.
The bill would also extend the sunset for the Council,
currently scheduled for June 2024, to December 31, 2026.

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, an extension of eight
additional weeks would be permitted upon the Secretary’s
approval. The extension would be allowed only upon a
determination by the Secretary that the employer has filed all
required employment security reports, paid all required
contributions, and is primarily engaged in the production and
distribution of ready-mixed concrete or the construction of
streets, highways, elevated highways, roads, airport runways,
public sidewalks, or bridges.

School Bus Driver Work Share
The bill would permit school bus drivers employed by
private companies to participate in work share programs
during the period between two successive academic years or
a similar period between two successive terms of school.


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Employment Security Interest Assessment Fund
The bill would abolish the Employment Security Interest
Assessment Fund on July 1, 2024. Any balance of the
Employment Security Interest Assessment Fund would be
transferred to the Employment Security Fund and any
liabilities of the Employment Security Interest Assessment
Fund would be transferred to the State General Fund.
[Note: The Employment Security Interest Assessment
Fund was created in 2011 to repay certain loans associated
with the Employment Security Fund during the Great
Recession.]

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.

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


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Employer Charge Notice Modifications
The bill would change the timing of benefit charges for
contributing employers and rated governmental employers
from annual to quarterly and would eliminate a provision that
prohibits the application of charges to such employers when
the amount of the charges is $100 or less.

Department of Labor Annual Reporting
The bill would require annual Department of Labor
reporting to include a differentiation of data for terminated and
inactive accounts; the statewide average annual and weekly
wage amounts; and, beginning in 2025, an annual memo
submitted to the chairpersons, vice-chairpersons, and ranking
minority members of the standing committees of the House
and Senate to which employment security legislation is
customarily referred, the President of the Senate, the
Speaker of the House of Representatives, the Governor, and
the LCC.
The memo would be required to include data for
contributing negative-rated employers for the current and
three most recent years, including:
● An identifying number assigned to each employer
other than the employer’s account ID;
● The NAICS code of the employer;
● The employer’s account balance by fiscal year;
● The employer’s taxable wages by fiscal year;
● The employer’s calculated reserve ratio by fiscal
year;
● The employer’s taxable wage base by fiscal year;

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 ● The benefits charged to the employer by fiscal
year;
● The total number of temporary weeks requested,
approved, and claimed by the employer, if any; and
● If work share was requested by and approved for
the employer.
Background
The bill was introduced by the House Committee on
Commerce, Labor and Economic Development at the request
of Representative Tarwater.

House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, the Department of
Labor provided detailed testimony specifying its support,
opposition, and neutrality to various provisions of the bill.
Proponent testimony was provided by representatives
of the Kansas Society for Human Resource Management,
Kansas Chamber, Kansas Contractors Association, and
National Federation of Independent Businesses. The
proponents generally stated the bill would better balance
employer contributions to the unemployment system with
their utilization of the system and ensure the integrity of
Kansas’ unemployment compensation system.
Written-only proponent testimony was provided by
representatives of Opportunity Solutions Project and
Overland Park Chamber of Commerce.
No other testimony was provided.
The House Committee amended the bill to:

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 ● Revise the temporary unemployment extension
provisions;
● Modify the changes to the taxable wage base and
employer contribution rates;
● Provide for the write-off of negative account
balances;
● Modify the qualifications for applicants to the
Employment Security Board of Review;
● Modify certain Department of Labor reporting
requirements;
● Increase the amount of time the Department of
Labor has to provide annual rate tables to
employers;
● Change the fund receiving the liabilities of the
Employment Security Interest Assessment Fund
from the Employment Security Fund to the State
General Fund;
● Modify the provisions suspending state
unemployment benefits when individuals receive
certain federal unemployment benefits; and
● Provide for certain school bus drivers to participate
in work share programs.
Senate Committee on Commerce
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Department of Labor,
the Kansas Society for Human Resource Management,
Kansas Chamber, Kansas Contractors Association, and
National Federation of Independent Businesses. Proponent
testimony was substantially similar to that provided in the
House Committee hearing.
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 Written-only proponent testimony was provided by
representatives of Opportunity Solutions Project and
Overland Park Chamber of Commerce.
No other testimony was provided.
The Senate Committee amended the bill to:
● Modify changes to the taxable wage base and
employer contribution rates;
● Modify rate contributions for new employers;
● Modify negative account balance write-off
provisions; and
● Make various technical changes.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, the Department of Labor
estimates enactment of the bill would require an additional
18.0 FTE (full-time equivalent) positions and additional State
General Fund expenditures of $3.5 million in FY 2025 and
$1.3 million in FY 2026. Some of these additional costs would
be ongoing into future years. The additional positions would
be necessary due to additional auditing, reporting, and
temporary unemployment review requirements that would be
required by the bill.
The agency also indicates that some provisions of the
bill could result in less required customization of the
modernized unemployment system, resulting in savings of
time and money.
Any fiscal effect associated with enactment of the bill is
not reflected in The FY 2025 Governor’s Budget Report.

Unemployment compensation; modernization; taxable wage base; tax rates;
temporary unemployment; interview ghosting; school bus drivers; extension of time

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Statutes affected:
As introduced: 44-703, 44-704, 44-705, 44-709, 44-710, 44-710a, 44-710b, 44-717, 44-771, 44-772, 44-774, 44-775, 4344-771
Version 2: 44-703, 44-704, 44-705, 44-706, 44-709, 44-710, 44-710a, 44-710b, 44-717, 44-757, 44-771, 44-772, 44-774, 44-775
As Amended by Senate Committee: 44-703, 44-704, 44-705, 44-706, 44-709, 44-710, 44-710a, 44-710b, 44-717, 44-757, 44-771, 44-772, 44-774, 44-775
Enrolled - Law effective July 1, 2024: 44-703, 44-704, 44-705, 44-706, 44-709, 44-710, 44-710a, 44-710b, 44-717, 44-757, 44-771, 44-772, 44-774, 44-775