S‑1912.1   _____________________________________________

SUBSTITUTE SENATE BILL 6007

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Labor, Commerce & Financial Institutions (originally sponsored by Senators Prentice, Winsley, Gardner, Franklin, Fairley, Kline and Costa; by request of Employment Security Department)

READ FIRST TIME 02/28/01. 

_1      AN ACT Relating to extending unemployment insurance coverage to

_2  employees of Indian tribes; amending RCW 50.04.090; adding a new

_3  section to chapter 50.04 RCW; adding a new chapter to Title 50

_4  RCW; creating new sections; and declaring an emergency.

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_6      Sec. 1.  RCW 50.04.090 and 1983 1st ex.s. c 23 s 2 are each amended

_7  to read as follows:

_8      "Employing unit" means any individual or any type of

_9  organization, including any partnership, association, trust,

10  estate, joint stock company, insurance company, or corporation,

11  whether domestic or foreign, or the receiver, trustee in

12  bankruptcy, trustee or successor thereof, or the legal

13  representative of a deceased person, which has or subsequent to

14  January 1, 1937, had in its employ or in its "employment" one or

15  more individuals performing services within this state.  The state

16  and its political subdivisions shall be deemed employing units as

17  to any transactions occurring on or after September 21, 1977 which

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_1  would render an employing unit liable for contributions, interest,

_2  or penalties under RCW 50.24.130.  "Employing unit" includes Indian

_3  tribes as defined in section 3 of this act.

_4      NEW SECTION. Sec. 2.  A new section is added to chapter 50.04

_5  RCW to read as follows:

_6      The term "employment" includes services performed in the employ

_7  of an Indian tribe as provided in section 3 of this act.

_8      NEW SECTION. Sec. 3.  The term "employment" includes service

_9  performed in the employ of an Indian tribe, as defined in section

10  3306(u) of the federal unemployment tax act, provided such service

11  is excluded from "employment" as defined in the federal

12  unemployment tax act solely by reason of section 3306(c)(7), the

13  federal unemployment tax act, and is not otherwise excluded from

14  "employment" under this title.  For purposes of this section, the

15  exclusions from employment in RCW 50.44.040, except RCW

16  50.44.040(12) addressing nongovernmental preschools, are

17  applicable to services performed in the employ of an Indian tribe.

18      NEW SECTION. Sec. 4.  Benefits based on service in employment

19  defined in this chapter are payable in the same amount, on the

20  same terms, and subject to the same conditions as benefits payable

21  on the basis of other service under this title.

22      NEW SECTION. Sec. 5.  (1) Indian tribes or tribal units,

23  including subdivisions, subsidiaries, or business enterprises

24  wholly owned by such Indian tribes, subject to this title shall

25  pay contributions under the same terms and conditions as all other

26  subject employers, unless they elect to pay into the unemployment

27  compensation fund amounts equal to the amount of benefits

28  attributable to service in the employ of the Indian tribe.

29      (2) Indian tribes electing to make payments in lieu of

30  contributions shall make such election in the same manner and

31  under the same conditions as provided in RCW 50.44.030 pertaining

32  to other units of government subject to this title.  Indian tribes

33  shall determine if reimbursement for benefits paid are to be

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_1  elected by the tribe as a whole, by individual tribal units, or by

_2  combinations of tribal units.

_3      (3) Indian tribes or tribal units shall be billed for the full

_4  amount of benefits attributable to service in the employ of the

_5  Indian tribe or tribal unit on the same schedule as other

_6  employing units that have elected to make payments in lieu of

_7  contributions.

_8      (4) At the discretion of the commissioner and on the same basis

_9  as other employers with the same election option, any Indian tribe

10  or tribal unit that elects to become liable for payments in lieu

11  of contributions is required, within thirty days after the

12  effective date of its election, to:  (a) Execute and file with the

13  commissioner a surety bond approved by the commissioner; or (b)

14  deposit with the commissioner money or securities in an amount

15  determined by the commissioner.

16      NEW SECTION. Sec. 6.  (1)(a) Failure of the Indian tribe or

17  tribal unit to make required payments, including assessments of

18  interest and penalty, within ninety days of receipt of the

19  statement will result in the department revoking the option for

20  the Indian tribe to make payments in lieu of contributions, as

21  described in section 5 of this act, for the following tax year

22  unless payment in full is received before contribution rates for

23  the next tax year are computed.

24      (b) Any Indian tribe that loses the option to make payments in

25  lieu of contributions due to late payment or nonpayment, as

26  described in (a) of this subsection, shall have such option

27  reinstated if, after a period of one year, all contributions have

28  been made timely, provided no contributions, payments in lieu of

29  contributions for benefits paid, penalties, or interest remain

30  outstanding.

31      (2)(a) Failure of the Indian tribe or any tribal unit thereof

32  to make required payments, including assessments of interest and

33  penalty, after all collection activities deemed necessary by the

34  commissioner have been exhausted, causes services performed for

35  such tribe not to be treated as "employment" for the purposes of

36  sections 2 and 3 of this act.

37      (b) Any Indian tribe that loses coverage under (a) of this

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_1  subsection may have services performed for such tribe again

_2  included as "employment" for purposes of sections 2 and 3 of this

_3  act if all contributions, payments in lieu of contributions,

_4  penalties, and interest have been paid.

_5      (3)(a) The commissioner shall notify the United States internal

_6  revenue service and the United States department of labor of any

_7  failure of an Indian tribe to make payments required under this

_8  chapter, including assessments of interest and penalty, within

_9  ninety days of the final notice of delinquency.

10      (b) The commissioner shall notify the United States internal

11  revenue service and the United States department of labor of any

12  termination or reinstatement of the option to make payments in

13  lieu of contributions made under subsection (1) of this section or

14  any termination or reinstatement of coverage made under subsection

15  (2) of this section.

16      NEW SECTION. Sec. 7.  Notices of payment and reporting

17  delinquency to Indian tribes or their tribal units must include

18  information that failure to make full payment within the

19  prescribed time frames:  (1) Causes the Indian tribe to be liable

20  for taxes under the federal unemployment tax act; (2) causes the

21  Indian tribe to lose the option to make payments in lieu of

22  contributions; and (3) causes the Indian tribe to be excepted from

23  the definition of "employing unit," as provided in RCW 50.04.090,

24  and services in the employ of the Indian tribe, as provided in

25  sections 2 and 3 of this act, to be excepted from "employment."

26      NEW SECTION. Sec. 8.  Extended benefits paid that are

27  attributable to service in the employ of an Indian tribe and not

28  reimbursed by the federal government must be financed in their

29  entirety by such Indian tribe.

30      NEW SECTION. Sec. 9.  Unless specifically addressed in this

31  chapter, Indian tribes or their tribal units are subject to the

32  same terms and conditions as are other employers subject to

33  contributions under RCW 50.29.020 or other units of government

34  under RCW 50.44.030 that make payments in lieu of contributions.

35 

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_1      NEW SECTION. Sec. 10.  If any part of this act is found to be in

_2  conflict with federal requirements that are a prescribed condition

_3  to the allocation of federal funds to the state or the eligibility

_4  of employers in this state for federal unemployment tax credits,

_5  the conflicting part of this act is inoperative solely to the

_6  extent of the conflict, and the finding or determination does not

_7  affect the operation of the remainder of this act.  Rules adopted

_8  under this act must meet federal requirements that are a necessary

_9  condition to the receipt of federal funds by the state or the

10  granting of federal unemployment tax credits to employers in this

11  state.

12      NEW SECTION. Sec. 11.  If any provision of this act or its

13  application to any person or circumstance is held invalid, the

14  remainder of the act or the application of the provision to other

15  persons or circumstances is not affected.

16      NEW SECTION. Sec. 12.  This act is necessary for the immediate

17  preservation of the public peace, health, or safety, or support of

18  the state government and its existing public institutions, and

19  takes effect immediately.

20      NEW SECTION. Sec. 13.  This act applies retroactively to services

21  performed on or after December 21, 2000.  Indian tribes or tribal

22  units may elect to make payments in lieu of contributions

23  effective December 21, 2000, or a subsequent date.

24      NEW SECTION. Sec. 14.  Sections 3 through 9 of this act

25  constitute a new chapter in Title 50 RCW.

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