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Minutes for SB177 - Committee on Commerce
Short Title
Changing provisions of the employment security law including creation of the unemployment compensation modernization and improvement council, development of a new unemployment insurance information technology system, provision of tax information to claimants, publication of trust fund data, the maximum benefit period, the charging of employer accounts for benefits paid, employer contribution rate determination and schedules, abolishment of the employment security interest assessment fund, crediting of employer accounts for fraudulent or erroneous payments, transfers from the state general fund to the unemployment insurance trust fund for improper benefit payments, changes to the shared work compensation program and other unemployment trust fund provisions.
Minutes Content for Tue, Feb 16, 2021
Chairman Olson opened the hearing on SB177 and called upon Jeff Oswald for primary proponent testimony on the bill. Mr. Oswald discussed the unpredictable and very burdensome issues that severely stressed the Unemployment Insurance Trust Fund. He opined that businesses want to know that their investments in the fund are protected and executed properly. Mr. Oswald strongly urged the committee to support the needed modernization proposed by the bill. He also addressed concerns regarding the increased costs to businesses to maintain the solvency of the Trust Fund going forward.
Chairman Olson called upon Phillip Hayes for supporting proponent testimony on the bill. Mr. Hayes expressed concerns about borrowing from the federal government and what he termed the "grim reality" of an extreme increase in unemployment taxes. He summarized and explained ten points of the bill's reform steps:
1.) Creation of the Unemployment Compensation Modernization and Improvement Council
2.) Modernization of the Kansas UI IT system
3.) Early notification to Kansas Unemployment Insurance Claimants of UI benefits of tax liability
4.) Transparency in Kansas UI fund computations and data reporting - health indicators of Kansas UI Trust Fund
5.) Realign duration of benefits to the Federal Reserve's definition of full employment threshold of 5.0%
6.) Provide employer relief for all fraud & improper payments between 3/15/20 and 12/32/22
7.) Provide immediate economic relief to employer chargeability & credits relating to future fraud determinations
8.) Calculate Kansas UI Trust Fund solvency charges proportionately, based upon an employer's earned experience rating
9.) Expand work share program to prevent future layoffs
10.) Require KDOL to acknowledge, process and respond to all reported job refusals
Mr. Hayes suggested that a different set of players and relationships should be at the table going forward (i.e. business and labor liaisons).
Slide presentation of the testimony provided by Mr. Hayes.
Points resulting from Committee questions and comments:
1.Technical system specifications in statute
2.) Participants who authored the bill.
3.) The need to remove the Kansas Department of Labor (KDOL) out from under partisan political appointment and governance
4.) What actions to be taken to recover fraud outlays
Due time restraints for the meeting time, Chairman Olson suspended the hearing on SB177 until the next meeting.
