Minutes for HB2196 - Committee on Commerce

Short Title

Substitute for HB 2196 by Commerce, Labor and Economic Development - 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, appropriation of federal COVID-19 moneys to the unemployment insurance trust fund, transfers from the state general fund to the unemployment insurance trust fund for improper benefit payments, emergency expansion of the employment security board of review, providing for the my reemployment plan program and workforce training program availability to claimants, changes to the shared work compensation program and other unemployment trust fund provisions.

Minutes Content for Wed, Mar 17, 2021

Chairman Olson resumed the hearing on HB2196 Substitute for HB2196.

Chairman Olson called upon Amber Shultz for neutral testimony on the bill. Ms. Shultz provided a brief introduction and called upon Brett Flachsbarth for comments relating to common issues. Mr. Flachsbarth explained to the committee that the fraud penalty is comprised of a 5 year penalty and a 25% penalty. He also pointed out that in order for a case to be considered fraud, the action would need to be a knowing and intentional action. Mr. Flachsbarth clarified the amount of funding on hand earmarked to the modernization project and clarified an issue regarding work search.

Peter Brady addressed the following topics:

Agency strongly supports adding tax withholding information to initial determinations.
Agency supports temporary expansion of the Kansas Employment Security Board of Review.
Agency in complete agreement with improvements to shared work program.
Agency strongly favors changes for professional employer organizations.
Agency is concerned the creation of the Unemployment Compensation and Improvement Council.
Agency supports the establishment of My-Reemployment Plan.
Agency is concerned that proposed modification to Unemployment Insurance Fraud Penalty (providing no pathway back to eligibility) may be rejected at the federal level.
Agency defers to legislators to determine to modification to Weeks Available in Regular Unemployment.
Mr. Brady outlined bill provisions that the agency opposes.

Mr. Flachsbarth addressed three issues regarding: benefit year earnings, the federal offset benefit and what defines felonious theft.

(Attachment 1)

Mr. Flachsbarth referenced two graphic hand-outs that graphically explained the elements and processes of the Shared Work Program.

(Attachment 2) (Attachment 3)

Chairman Olson closed the hearing on HB2196 Substitute for HB2196.