Brief (1)
Senate Sub. for HB 2303 would amend the Employment Security Law to provide for a different classification of employers. The current classification uses the Standard Industrial Classification manual. The new method would use the North American Industry Classification System. Under the new method there will be classification that is more detailed in nature. The change is made necessary due to the North American Free Trade Agreement.
The bill also contains conforming legislation relative to treatment of Indian tribes under the Federal Unemployment Tax Act (FUTA) and the Federal-State Unemployment Compensation (UC) program. The bill would exclude Indian tribes from FUTA and allow them to act as reimbursing employers, similar to local governments.
Background
An official with the Labor Market Information Services with the Kansas Department of Human Resources appeared in favor of the measure.
The Senate Committee held a hearing on HB 2303, at which time representatives of the Department of Human Resources testified in favor of the bill and requested that the bill be amended to include the Indian tribe conforming legislation. According to the conferees, this amendment is necessary to keep Kansas law in conformance with the federal law and to maintain related federal and state tax credits. The Department of Human Resources reports that without the Indian tribe conforming legislation, Kansas employers would pay an additional $422.2 million in federal taxes and $44.7 million in state taxes annually.
The Division of the Budget reports that HB 2303, in its original form, would not result in a fiscal impact on the state.
1. *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.ink.org/public/legislative/fulltext.cgi