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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
|||| 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
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