2002 Legislation
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SENATE BILL NO. 1290 – Indian tribes, unemployment insurnc

SENATE BILL NO. 1290

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Daily Data Tracking History



S1290.......................................by COMMERCE AND HUMAN RESOURCES
INDIAN TRIBES - Adds to existing law to extend unemployment insurance
coverage to employees of Indian tribes and tribal units.
                                                                        
01/16    Senate intro - 1st rdg - to printing
01/17    Rpt prt - to Com/HuRes
01/25    Rpt out - rec d/p - to 2nd rdg
01/28    2nd rdg - to 3rd rdg
01/29    3rd rdg - PASSED - 32-0-3
      AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde, Hawkins,
      Hill, Ingram, Keough, King-Barrutia, Little, Lodge, Marley, Noh,
      Richardson, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett,
      Thorne(Thorne), Wheeler, Williams
      NAYS -- None
      Absent and excused -- Brandt, Ipsen, Sims
    Floor Sponsor - Goedde
    Title apvd - to House
01/30    House intro - 1st rdg - to Com/HuRes
02/12    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 61-0-9
      AYES -- Aikele, Barraclough, Barrett, Bell, Bieter, Black, Block,
      Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Clark, Collins,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Hadley, Hammond, Harwood, Henbest, Higgins,
      Hornbeck, Jaquet, Jones, Kellogg, Kunz, Langford, Loertscher, Mader,
      Martinez, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Shepherd, Smith(33), Smylie, Stevenson, Stone, Tilman,
      Trail, Wheeler, Young
      NAYS -- None
      Absent and excused -- Bedke, Crow, Gould, Kendell, Lake, Sellman,
      Smith(23), Wood, Mr. Speaker
    Floor Sponsor - Mortensen
    Title apvd - to Senate
02/18    To enrol
02/19    Rpt enrol - Pres signed
02/20    Sp signed
02/21    To Governor
02/26    Governor signed
         Session Law Chapter 45
         Effective: 02/26/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1290
                                                                        
                         BY COMMERCE AND HUMAN RESOURCES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE EMPLOYMENT SECURITY LAW; AMENDING CHAPTER 13, TITLE 72,  IDAHO
  3        CODE,  BY  THE  ADDITION  OF A NEW SECTION 72-1349C, IDAHO CODE, TO EXTEND
  4        UNEMPLOYMENT INSURANCE COVERAGE TO EMPLOYEES OF INDIAN TRIBES  AND  TRIBAL
  5        UNITS,  TO PROVIDE THAT INDIAN TRIBES SHALL HAVE THE SAME OPTIONS FOR PAY-
  6        ING UNEMPLOYMENT INSURANCE CONTRIBUTIONS AS  NONPROFIT  ORGANIZATIONS  AND
  7        GOVERNMENTAL  ENTITIES,  TO  WITHDRAW  OPTIONS FOR PAYMENT AND TO DISALLOW
  8        COVERAGE IF AN INDIAN TRIBE OR ANY TRIBAL UNIT FAILS TO PAY  AMOUNTS  DUE,
  9        TO  PROVIDE  FOR  NOTICE  OF PAYMENT AND REPORTING DELINQUENCY, TO PROVIDE
 10        THAT AN INDIAN TRIBE AND ITS TRIBAL UNITS SHALL BE JOINTLY  AND  SEVERALLY
 11        LIABLE  FOR  ALL PAYMENTS DUE, TO PROVIDE FOR PAYMENT OF EXTENDED BENEFITS
 12        AND TO PROVIDE FOR NOTIFICATION TO THE INTERNAL REVENUE  SERVICE  AND  THE
 13        FEDERAL  DEPARTMENT  OF LABOR IF AN INDIAN TRIBE FAILS TO MAKE PAYMENTS AS
 14        REQUIRED; AND DECLARING AN EMERGENCY.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION 1.  That Chapter 13, Title 72, Idaho Code, be,  and  the  same  is
 17    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 18    ignated as Section 72-1349C, Idaho Code, and to read as follows:
                                                                        
 19        72-1349C.  TREATMENT OF INDIAN TRIBES. (1)  In addition to the  definition
 20    provided  in  section  72-1315,  Idaho Code, the term "covered employer" shall
 21    also include any Indian tribe for which service in covered employment is  per-
 22    formed.
 23        (2)  In  addition  to  the  definition  provided in section 72-1316, Idaho
 24    Code, the term "covered employment" shall also include  service  performed  in
 25    the  employ  of  an  Indian tribe as defined in section 3306(u) of the federal
 26    unemployment  tax  act  (FUTA),  provided  such  service  is   excluded   from
 27    "employment"  as defined in FUTA solely by reason of section 3306(c)(7), FUTA,
 28    and is not otherwise excluded from covered employment under this chapter.  For
 29    purposes  of  this section, the exemptions from covered employment in sections
 30    72-1316A(5) and (9), Idaho Code, shall be applicable to services performed  in
 31    the employ of an Indian tribe.
 32        (3)  Benefits  based  on  service  in  covered  employment as that term is
 33    defined in this section, shall be payable in the  same  amount,  on  the  same
 34    terms  and  subject to the same conditions as benefits payable on the basis of
 35    other service under this chapter.
 36        (4)  Indian tribes, or tribal units meaning subdivisions, subsidiaries  or
 37    business  enterprises wholly owned by such Indian tribe, subject to this chap-
 38    ter shall pay contributions under the same terms and conditions as  all  other
 39    covered  employers  unless the tribe elects to pay into the state unemployment
 40    fund amounts equal to the amount of benefits attributable to  service  in  the
 41    employ of the Indian tribe.
 42        (a)  Indian  tribes  electing  to  make  payments in lieu of contributions
 43        shall make such election in the same manner and under the same  conditions
                                                                        
                                           2
                                                                        
  1        as provided in section 72-1349A, Idaho Code, pertaining to nonprofit orga-
  2        nizations and governmental entities subject to this chapter. Indian tribes
  3        shall  determine if reimbursement for benefits paid will be elected by the
  4        tribe as a whole, by individual tribal units, or by combinations of  indi-
  5        vidual tribal units.
  6        (b)  Indian tribes or tribal units shall be billed for the full amount of
  7        benefits  attributable  to  service  in  the employ of the Indian tribe or
  8        tribal unit on the same basis as other employing units that  have  elected
  9        to make payments in lieu of contributions.
 10        (c)  At  the  discretion  of the director, any Indian tribe or tribal unit
 11        that elects to become liable for payments in lieu of contributions may  be
 12        required to obtain and deposit with the director a surety bond approved by
 13        the  director.  The amount of the bond shall be determined by the director
 14        based on the employing entity's potential  liability  for  benefit  costs.
 15        Such  bond  shall be in force for a period of not less than two (2) years,
 16        and shall be renewed not less frequently than two (2) year  intervals  for
 17        as long as the Indian tribe or tribal unit continues to be liable for pay-
 18        ments in lieu of contributions. The director may require adjustments to be
 19        made in the bond filed. When upward adjustments are required, the adjusted
 20        bond  shall  be  filed  within  thirty (30) days of the date notice of the
 21        required adjustment was mailed. Failure by an Indian tribe or tribal  unit
 22        covered by such bond to pay the full amount of payments due, together with
 23        interest  and  penalties as provided in section 72-1354, Idaho Code, shall
 24        render the surety liable on said bond to the extent of the bond, as though
 25        the surety was a liable organization.
 26        (5)  Failure of the Indian tribe or tribal unit to make required payments,
 27    including assessments of interest and penalty,  within  ninety  (90)  days  of
 28    receipt  of  the  bill shall cause the Indian tribe to lose the option to make
 29    payments in lieu of contributions as described in subsection (4) of this  sec-
 30    tion,  for  the  following  tax year unless payment in full is received before
 31    contribution rates for the next tax year are computed.
 32        (a)  Any Indian tribe that loses the option to make payments  in  lieu  of
 33        contributions  due to late payment or nonpayment as described in this sub-
 34        section (5) of this section, shall have such option reinstated if, after a
 35        period of one (1) year, all contributions have been made timely,  provided
 36        no  contributions,  payments  in  lieu of contributions for benefits paid,
 37        penalties or interest remain outstanding.
 38        (b)  Failure of the Indian tribe  or  any  tribal  unit  thereof  to  make
 39        required  payments,  including  assessments of interest and penalty, after
 40        all collection activities deemed  necessary  by  the  director  have  been
 41        exhausted, shall cause services performed for such tribe to not be treated
 42        as "covered employment" for purposes of subsection (2) of this section.
 43        (c)  The  director may determine that any Indian tribe that loses coverage
 44        under paragraph (b) of this subsection, may have  services  performed  for
 45        such  tribe again included as "covered employment" for purposes of subsec-
 46        tion (2) of this section, if all contributions, payments in lieu  of  con-
 47        tributions, penalties and interest have been paid.
 48        (6)  Notices  of  payment  and  reporting delinquency to Indian tribes and
 49    their tribal units shall include information that failure to make full payment
 50    within the prescribed time frame:
 51        (a)  Shall cause the Indian tribe to be liable for taxes under the federal
 52        unemployment tax act;
 53        (b)  Shall cause the Indian tribe to lose the option to make  payments  in
 54        lieu of contributions; and
 55        (c)  Could  cause  the  Indian tribe to be excepted from the definition of
                                                                        
                                           3
                                                                        
  1        "covered employer" as provided in subsection (1) of this section, and ser-
  2        vices in the employ of the Indian tribe as provided in subsection  (2)  of
  3        this section, to be excepted from "covered employment."
  4        (7)  An  Indian  tribe and its tribal units shall be jointly and severally
  5    liable for all payments due  under  this  chapter,  including  assessments  of
  6    interest and penalties.
  7        (8)  Extended benefits paid that are attributable to service in the employ
  8    of  an  Indian  tribe  and  not  reimbursed by the federal government shall be
  9    financed in their entirety by such Indian tribe or tribal unit.
 10        (9)  If an Indian tribe fails to make payments required  under  this  sec-
 11    tion,  including  assessments of interest and penalty, within ninety (90) days
 12    of a final notice of delinquency, or fails to timely file a required bond, the
 13    director shall immediately notify the United States internal  revenue  service
 14    and the United States department of labor.
                                                                        
 15        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 16    declared to exist, this act shall be in full force and effect on and after its
 17    passage and approval.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE

                      RS#: 11417 C#: 1

In December 2000, Congress passed the Consolidated Appropriations 
Act which amended the Federal Unemployment Tax Act (FUTA).  These 
amendments required Indian tribes to participate in state 
unemployment insurance programs and provided that all state 
employment security agencies were to allow Indian tribes the same 
employer tax status and payment options for unemployment insurance 
contributions as state and local government entities.  This bill 
implements these amendments and makes Idaho's two taxing options, 
experience rated and cost reimbursement, available to Indian tribes.  
All of the Indian tribes in Idaho are already participating in the 
unemployment insurance program, having voluntarily elected to do so. 
Consequently, this bill is not expected to change current practices. 
         
This legislation is necessary because of the "conformity" requirement 
in federal law.  "Conformity" means that each state's unemployment 
insurance law must conform to certain federal law provisions in the 
Federal Unemployment Tax Act and the Social Security Act in order for 
the state law to be certified.  The provisions covered by these 
amendments are federal conformity requirements. If a state's law is 
not certified, the state may lose its federal grants for the 
administration of its unemployment insurance program and the 
employers in the state could lose their federal tax offset credit. 

                         FISCAL IMPACT

There is no impact on the State General fund.  Also, there should be 
no impact on Idaho's Unemployment Insurance Trust Fund because all of 
the Indian tribes in the state have voluntarily elected unemployment 
insurance coverage for several years. 
   
If this bill is not enacted and Idaho's unemployment insurance law is 
not certified, Idaho could lose approximately $17 million dollars in 
federal unemployment insurance administrative grants.  In addition, 
if Idaho's covered employers lose their federal tax offset credit, 
their federal unemployment insurance taxes would increase 5.4%. 

CONTACT
         Name:     Dwight Johnson
         Agency:   Labor, Dept. of
         Phone:    332-3570 ext. 3209


Statement of Purpose/Fiscal Impact       S 1290