AN
ACT Relating to extending unemployment insurance coverage to employees of
Indian tribes; amending RCW 50.04.090; adding a new section to chapter 50.04
RCW; adding a new chapter to Title 50 RCW; creating new sections; and declaring
an emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
50.04.090 and 1983 1st ex.s. c 23 s 2 are each amended to read as follows:
"Employing
unit" means any individual or any type of organization, including any
partnership, association, trust, estate, joint stock company, insurance
company, or corporation, whether domestic or foreign, or the receiver, trustee
in bankruptcy, trustee or successor thereof, or the legal representative of a
deceased person, which has or subsequent to January 1, 1937, had in its employ
or in its "employment" one or more individuals performing services
within this state. The state and its political subdivisions shall be deemed
employing units as to any transactions occurring on or after September 21, 1977
which would render an employing unit liable for contributions, interest, or
penalties under RCW 50.24.130. "Employing unit" includes Indian
tribes as defined in section 3 of this act.
NEW
SECTION. Sec. 2. A
new section is added to chapter 50.04 RCW to read as follows:
The
term "employment" includes services performed in the employ of an
Indian tribe as provided in section 3 of this act.
NEW
SECTION. Sec. 3. The
term "employment" includes service performed in the employ of an
Indian tribe, as defined in section 3306(u) of the federal unemployment tax
act, provided such service is excluded from "employment" as defined
in the federal unemployment tax act solely by reason of section 3306(c)(7), the
federal unemployment tax act, and is not otherwise excluded from
"employment" under this title. For purposes of this section, the
exclusions from employment in RCW 50.44.040, except RCW 50.44.040(12)
addressing nongovernmental preschools, are applicable to services performed in
the employ of an Indian tribe.
NEW
SECTION. Sec. 4.
Benefits based on service in employment defined in this chapter are payable in
the same amount, on the same terms, and subject to the same conditions as
benefits payable on the basis of other service under this title.
NEW
SECTION. Sec. 5. (1)
Indian tribes or tribal units, including subdivisions, subsidiaries, or
business enterprises wholly owned by such Indian tribes, subject to this title
shall pay contributions under the same terms and conditions as all other
subject employers, unless they elect to pay into the unemployment compensation
fund amounts equal to the amount of benefits attributable to service in the
employ of the Indian tribe.
(2)
Indian tribes electing to make payments in lieu of contributions shall make
such election in the same manner and under the same conditions as provided in
RCW 50.44.030 pertaining to other units of government subject to this title.
Indian tribes shall determine if reimbursement for benefits paid are to be
elected by the tribe as a whole, by individual tribal units, or by combinations
of tribal units.
(3)
Indian tribes or tribal units shall be billed for the full amount of benefits
attributable to service in the employ of the Indian tribe or tribal unit on the
same schedule as other employing units that have elected to make payments in
lieu of contributions.
(4)
At the discretion of the commissioner and on the same basis as other employers
with the same election option, any Indian tribe or tribal unit that elects to
become liable for payments in lieu of contributions is required, within thirty
days after the effective date of its election, to: (a) Execute and file with
the commissioner a surety bond approved by the commissioner; or (b) deposit
with the commissioner money or securities in an amount determined by the
commissioner.
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 cutoff 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 cutoff 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
(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.
(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 ninety 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.
NEW
SECTION. Sec. 7.
Notices of payment and reporting delinquency to Indian tribes or their tribal
units must include information that failure to make full payment within the
prescribed time frames: (1) Causes the Indian tribe to be liable for taxes
under the federal unemployment tax act; (2) causes the Indian tribe to lose the
option to make payments in lieu of contributions; and (3) causes the Indian
tribe to be excepted from the definition of "employing unit," as
provided in RCW 50.04.090, and services in the employ of the Indian tribe, as
provided in sections 2 and 3 of this act, to be excepted from
"employment."
NEW
SECTION. Sec. 8.
Extended benefits paid that are attributable to service in the employ of an
Indian tribe and not reimbursed by the federal government must be financed in
their entirety by such Indian tribe.
NEW
SECTION. Sec. 9.
Unless specifically addressed in this chapter, Indian tribes or their tribal
units are subject to the same terms and conditions as are other employers
subject to contributions under RCW 50.29.020 or other units of government under
RCW 50.44.030 that make payments in lieu of contributions.
NEW
SECTION. Sec. 10. If
any part of this act is found to be in conflict with federal requirements that
are a prescribed condition to the allocation of federal funds to the state or
the eligibility of employers in this state for federal unemployment tax
credits, the conflicting part of this act is inoperative solely to the extent
of the conflict, and the finding or determination does not affect the operation
of the remainder of this act. Rules adopted under this act must meet federal
requirements that are a necessary condition to the receipt of federal funds by
the state or the granting of federal unemployment tax credits to employers in
this state.
NEW
SECTION. Sec. 11. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 12. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
NEW
SECTION. Sec. 13. This
act applies retroactively to services performed on or after December 21, 2000.
Indian tribes or tribal units may elect to make payments in lieu of
contributions effective December 21, 2000, or a subsequent date.
NEW SECTION. Sec. 14.
Sections 3 through 9 of this act constitute a new chapter in Title 50 RCW.
