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AN ACT concerning the employment security law; relating to hearing
  procedures thereunder; amending K.S.A. 1996 Supp. 44-709 and re-
  pealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 44-709 is hereby amended to read as
follows: 44-709. (a) Filing. Claims for benefits shall be made in accor-
dance with rules and regulations adopted by the secretary. The secretary
shall furnish a copy of such rules and regulations to any individual re-
questing them. Each employer shall post and maintain printed statements
furnished by the secretary without cost to the employer in places readily
accessible to individuals in the service of the employer.
  (b)  Determination. (1) Except as otherwise provided in this subsec-
tion (b)(1), a representative designated by the secretary, and hereinafter
referred to as an examiner, shall promptly examine the claim and, on the
basis of the facts found by the examiner, shall determine whether or not
the claim is valid. If the examiner determines that the claim is valid, the
examiner shall determine the first day of the benefit year, the weekly
benefit amount and the total amount of benefits payable with respect to
the benefit year. If the claim is determined to be valid, the examiner shall
mail a notice to the last employing unit who shall respond within 10 days
by providing the examiner all requested information including all infor-
mation required for a decision under K.S.A. 44-706 and amendments
thereto. The information may be submitted by the employing unit in
person at an employment office of the secretary or by mail. If the required
information is not submitted or postmarked within a response time limit
of 10 days after the mailing date of the examiner's notice, the employing
unit shall be deemed to have waived its standing as a party to the pro-
ceedings arising from the claim and shall be barred from protesting any
subsequent decisions about the claim by the secretary, a referee, the
board of review or any court, except that the employing unit's response
time limit may be waived or extended by the examiner or upon appeal,
if timely response was impossible due to excusable neglect. In any case
in which the payment or denial of benefits will be determined by the
provisions of subsection (d) of K.S.A. 44-706 and amendments thereto,
the examiner shall promptly transmit the claim to a special examiner des-
ignated by the secretary to make a determination on the claim after the
investigation as the special examiner deems necessary. The parties shall
be promptly notified of the special examiner's decision and any party
aggrieved by the decision may appeal to the referee as provided in sub-
section (c). The claimant and the claimant's most recent employing unit
shall be promptly notified of the examiner's or special examiner's decision.
  (2)  The examiner may for good cause reconsider the examiner's de-
cision and shall promptly notify the claimant and the most recent em-
ploying unit of the claimant, that the decision of the examiner is to be
reconsidered, except that no reconsideration shall be made after the ter-
mination of the benefit year.
  (3)  Notwithstanding the provisions of any other statute, a decision of
an examiner or special examiner shall be final unless the claimant or the
most recent employing unit of the claimant files an appeal from the de-
cision as provided in subsection (c). The appeal must be filed within 16
calendar days after the mailing of notice to the last known addresses of
the claimant and employing unit or, if notice is not by mail, within 16
calendar days after the delivery of the notice to the parties.
  (c)  Appeals. Unless the appeal is withdrawn, a referee, after affording
the parties reasonable opportunity for fair hearing, shall affirm or modify
the findings of fact and decision of the examiner or special examiner. The
parties shall be duly notified of the referee's decision, together with the
reasons for the decision. The decision shall be final, notwithstanding the
provisions of any other statute, unless a further appeal to the board of
review is filed within 16 calendar days after the mailing of the decision
to the parties' last known addresses or, if notice is not by mail, within 16
calendar days after the delivery of the decision.
  (d)  Referees. The secretary shall appoint, in accordance with subsec-
tion (c) of K.S.A. 44-714 and amendments thereto, one or more referees
to hear and decide disputed claims.
  (e)  Time, computation and extension. In computing the period of
time for an employing unit response or for 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.
  (f)  Board of review. (1) There is hereby created a board of review,
hereinafter referred to as the board, consisting of three members. Except
as provided by paragraph (2) of this subsection, each member of the board
shall be appointed for a term of four years as provided in this subsection.
Two members shall be appointed by the governor, subject to confirmation
by the senate as provided in K.S.A. 75-4315b and amendments thereto.
Except as provided by K.S.A. 1996 Supp. 46-2601, no person appointed
to the board, whose appointment is subject to confirmation by the senate,
shall exercise any power, duty or function as a member until confirmed
by the senate.  One member shall be representative of employees, one
member shall be representative of employers, and one member shall be
representative of the public in general. The appointment of the employee
representative member of the board shall be made by the governor from
a list of three nominations submitted by the Kansas A.F.L.-C.I.O. The
appointment of the employer representative member of the board shall
be made by the governor from a list of three nominations submitted by
the Kansas chamber of commerce and industry. The appointment of the
public representative member of the board, who, because of vocation,
occupation or affiliation may be deemed not to be representative of either
management or labor, shall be made by the members appointed by the
governor as employee representative and employer representative. If the
two members do not agree and fail to make the appointment of the public
member within 30 days after the expiration of the public member's term
of office, the governor shall appoint the representative of the public. Not
more than two members of the board shall belong to the same political
party.
  (2)  The terms of members who are serving on the board on the ef-
fective date of this act shall expire on March 15, of the year in which such
member's term would have expired under the provisions of this section
prior to amendment by this act. Thereafter, members shall be appointed
for terms of four years and until their successors are appointed and con-
firmed.
  (3)  Each member of the board shall serve until a successor has been
appointed and confirmed. Any vacancy in the membership of the board
occurring prior to expiration of a term shall be filled by appointment for
the unexpired term in the same manner as provided for original appoint-
ment of the member. Each member shall be appointed as representative
of the same special interest group represented by the predecessor of the
member.
  (4)  Each member of the board shall be entitled to receive as com-
pensation for the member's services at the rate of $15,000 per year, which
rate of compensation shall be effective retroactively to the beginning of
the first payroll period chargeable to the fiscal year ending June 30, 1994,
together with the member's travel and other necessary expenses actually
incurred in the performance of the member's official duties in accordance
with rules and regulations adopted by the secretary. Members' compen-
sation and expenses shall be paid from the employment security admin-
istration fund.
  (5)  The board shall organize annually by the election of a chairperson
from among its members. The chairperson shall serve in that capacity for
a term of one year and until a successor is elected. The board shall meet
on the first Monday of each month or on the call of the chairperson or
any two members of the board at the place designated. The secretary of
human resources shall appoint an executive secretary of the board and
the executive secretary shall attend the meetings of the board.
  (6)  The board, on its own motion, may affirm, modify or set aside any
decision of a referee on the basis of the evidence previously submitted in
the case; may direct the taking of additional evidence; or may permit any
of the parties to initiate further appeal before it. The board shall permit
such further appeal by any of the parties interested in a decision of a
referee which overrules or modifies the decision of an examiner. The
board may remove to itself the proceedings on any claim pending before
a referee. Any proceedings so removed to the board shall be heard in
accordance with the requirements of subsection (c). The board shall
promptly notify the interested parties of its findings and decision.
  (7)  Two members of the board shall constitute a quorum and no
action of the board shall be valid unless it has the concurrence of at least
two members. A vacancy on the board shall not impair the right of a
quorum to exercise all the rights and perform all the duties of the board.
  (g)  Procedure. The manner in which disputed claims are presented,
the reports on claims required from the claimant and from employers
and the conduct of hearings and appeals shall be in accordance with rules
of procedure prescribed by the board for determining the rights of the
parties, whether or not such rules conform to common law or statutory
rules of evidence and other technical rules of procedure. A full and com-
plete record shall be kept of all proceedings and decisions in connection
with a disputed claim. All testimony at any hearing upon a disputed claim
shall be recorded, but need not be transcribed unless the disputed claim
is further appealed. In the performance of its official duties, the board
shall have access to all of the records which pertain to the disputed claim
and are in the custody of the secretary of human resources and shall
receive the assistance of the secretary upon request. When reasonably
possible, all parties and witnesses shall appear in person before the referee
except as provided below:
  (1)  The referee may allow a party or witness to appear by telephone
if:
  (A)  Due to geographic distance, incarceration, hospitalization, or in-
clement weather, it is not reasonable for the party or witness to appear
in person before the hearing officer;
  (B)  to do so permits confrontation and cross-examination of the party
or witness not otherwise possible; and
  (C)  the telephone equipment permits simultaneous participation of all
parties.
  (2)  The chief of appeals may determine that participation by tele-
phone is necessary for the fair disposition of the appeal.
  (3)  A duly authorized representative shall not appear by telephone at
a geographic location different than the party represented, except when
appearing as a witness only.
  (4)  Documentary evidence shall be submitted in advance of the hear-
ing whenever possible by mailing copies to the referee and opposing party.
However, the referee shall allow the submission of documentary evidence
at the hearing or after the hearing if to do so is necessary for the fair
disposition of the appeal.
  (h)  Witness fees. Witnesses subpoenaed pursuant to this section shall
be allowed fees and necessary travel expenses at rates fixed by the board.
Such fees and expenses shall be deemed a part of the expense of admin-
istering this act.
  (i)  Court review. Any action of the board is subject to review in ac-
cordance with the act for judicial review and civil enforcement of agency
actions. No bond shall be required for commencing an action for such
review. In the absence of an action for such review, the action of the
board shall become final 16 calendar days after the date of the mailing
of the decision. In addition to those persons having standing pursuant to
K.S.A. 77-611 and amendments thereto, the examiner shall have standing
to obtain judicial review of an action of the board. The review proceeding,
and the questions of law certified, shall be heard in a summary manner
and shall be given precedence over all other civil cases except cases arising
under the workers compensation act.
  (j)  Any finding of fact or law, judgment, determination, conclusion or
final order made by the board of review or any examiner, special exam-
iner, referee or other person with authority to make findings of fact or
law pursuant to the employment security law is not admissible or binding
in any separate or subsequent action or proceeding, between a person
and a present or previous employer brought before an arbitrator, court
or judge of the state or the United States, regardless of whether the prior
action was between the same or related parties or involved the same facts.
  Sec. 2.  K.S.A. 1996 Supp. 44-709 is hereby repealed.
  Sec. 3.  This act shall take effect and be in force from and after its
publication in the statute book.