6007 AAS 05/22/01 001

SSB 6007 - S AMD 409

By Senator Prentice

ADOPTED 05/22/02

On page 3, beginning on line 16, strike all of section 6 and insert the following:

"NEW SECTION. Sec. 6. (1)(a) The commissioner shall revoke the option for an Indian tribe or tribal unit to make payments in lieu of contributions as described in section 5 of this act if the Indian tribe or tribal unit: (i) Did not make payments, including assessments of interest and penalties, required under this chapter within ninety days of receipt of statement; or (ii) entered into an approved agency deferred payment contract, and was not in compliance with the contract on the cut-off date, as authorized in chapter 50.29 RCW. The revocation shall begin on January 1 of the first calendar year after the Indian tribe or tribal unit meets these conditions, and shall continue until the option is reinstated as described in (b) of this subsection.

(b) The commissioner shall reinstate the option if, as of the cut-off date, an Indian tribe or tribal unit whose option was revoked as described in (a) of this subsection: (i) Paid contributions owed in the current calendar year when due; and (ii) made required payments, including assessments of interest and penalties, for any preceding calendar years. The reinstatement shall begin on January 1 of the first calendar year after the Indian tribe or tribal unit satisfies these conditions.

(2)(a) Services performed for an Indian tribe or tribal unit are not services in "employment" for purposes of sections 2 and 3 of this act if:

(i) The Indian tribe or tribal unit elected to make payments in lieu of contributions, had the option revoked, and has not met the conditions for reinstatement of the option; and

(ii) The Indian tribe or tribal unit either: (A) did not make required payments, including assessments of interest and penalties, within one hundred eighty days of receipt of statement; or (B) entered into an approved agency deferred payment contract, and was not in compliance with the contract on the last day of the current calendar quarter.

This revocation of coverage shall begin on the first day of the first calendar quarter after the Indian tribe or tribal unit meets these conditions, and shall continue until coverage is reinstated as described in (c) of this subsection.

(b) Services performed for an Indian tribe or tribal unit are not services in "employment" for purposes of sections 2 and 3 of this act if:

(i) The Indian tribe or tribal unit is a contribution-paying employer; and

(c) The commissioner may reinstate coverage if the Indian tribe or tribal unit has made required payments, including assessments of interest and penalties. This reinstatement of coverage may begin on the first day of the first calendar quarter after these payments are made.

(3)(a) The commissioner shall immediately notify the United States internal revenue service and the United States department of labor if an Indian tribe or tribal unit does not make required payments, including assessments of interest and penalties, within 90 days of receipt of statement.

(b) The commissioner shall immediately notify the United States internal revenue service and the United States department of labor of any revocation or reinstatement of the option to make payments in lieu of contributions under subsection (1) of this section or any revocation or reinstatement of coverage under subsection (2) of this section."

EFFECT: Requires the commissioner to revoke the option to make payments in lieu of contributions beginning with the next calendar year if an Indian tribe or tribal unit does not make required payments within 90 days of receipt of its statement, or was not in compliance with an approved agency deferred payment contract on the cut-off date.

Services performed in the employ of an Indian tribe or tribal unit are not covered employment beginning with the next calendar quarter if the tribe or tribal unit does not make payments in lieu of contributions within 180 days of receipt of its statement, or was not in compliance with an approved agency deferred payment contract on the last day of the current calendar quarter.

Permits the option to make payments in lieu of contributions and the coverage for services performed for the Indian tribe or tribal unit to be reinstated in specified circumstances.