House Substitute for Senate Bill No. 229 amends the classification and contribution rates for employers concerning unemployment benefits. It establishes that the Secretary of Labor will classify employers based on their actual experience with contributions and benefits charged against their accounts. New employers will not be eligible for a rate computation until they have 24 consecutive months of experience, and those not previously doing business in Kansas may choose between a standard new employer rate or a rate based on their previous experience in another state, provided they meet certain criteria. The bill also outlines conditions under which employers with negative account balances may receive a conditional write-off of benefit charges to improve their reserve ratios.

The bill introduces provisions for successor employers, allowing them to transfer unemployment experience from a predecessor employer under specific conditions. If a transfer is primarily for reducing contribution liability, the Secretary may combine the experience accounts of both employers. It also amends existing employment security law regarding the transfer of experience rating factors when an acquiring employer is not previously subject to the act, stating that if a new employer acquires a business primarily to obtain a lower contribution rate, the unemployment experience factors of the acquired business will not be transferred. Additionally, the bill allows for voluntary contributions by employers to maintain or reduce their contribution rates, mandates annual certification regarding the solvency of the state's account in the federal employment security trust fund, and includes provisions for the transfer of funds from the employment security interest assessment fund to the employment security trust fund, effectively abolishing the former fund.

Statutes affected:
H Sub for: 44-701, 44-777, 44-702, 44-703, 44-704, 44-704a, 44-704b, 44-705, 44-706, 44-710, 44-710a, 44-710b, 44-710d, 44-710e, 44-710f, 44-710i, 44-711, 44-712, 44-713, 44-713a, 44-714, 44-715, 44-716, 44-716a, 44-717, 44-718, 44-719, 44-720, 44-721, 44-722, 44-723, 44-724, 44-725, 44-727, 44-758, 44-760, 44-765, 44-766, 44-767, 44-768, 44-769, 44-770, 44-772, 44-773, 44-774, 44-775, 79-3234
{As Amended by House Committee of the Whole}: 44-701, 44-777, 44-702, 44-703, 44-704, 44-704a, 44-704b, 44-705, 44-706, 44-710, 44-710a, 44-710b, 44-710d, 44-710e, 44-710f, 44-710i, 44-711, 44-712, 44-713, 44-713a, 44-714, 44-715, 44-716, 44-716a, 44-717, 44-718, 44-719, 44-720, 44-721, 44-722, 44-723, 44-724, 44-725, 44-727, 44-758, 44-760, 44-765, 44-766, 44-767, 44-768, 44-769, 44-770, 44-772, 44-773, 44-774, 44-775, 79-3234
Conference Committee Report - Fri, Mar 27, 2026 - Amd to SB229: 44-710a