§ 28-42-14.1 - Treatment of Indian tribes.
SECTION 28-42-14.1
§ 28-42-14.1 Treatment of Indian tribes.– (a) "Employer" includes any Indian tribe for which service in employment asdefined under chapters 42 – 44 of this title is performed.
(b) "Employment" includes service performed in the employ ofan Indian tribe, as defined in section 3306(u) of the Federal Unemployment TaxAct (FUTA), 26 U.S.C. § 3306(u), provided the service is excluded from"employment" as defined in FUTA solely by reason of section 3306(c)(7), FUTA,26 U.S.C. § 3306(c)(7), and is not otherwise excluded from "employment"under chapters 42 – 44 of this title. For the purposes of this section,the exclusions from employment in § 28-42-14 shall be applicable toservice performed in the employ of an Indian tribe.
(c) Benefits based on service in employment defined in thissection shall be payable in the same amount, on the same terms and subject tothe same conditions as benefits payable on the basis of other service requiredto be covered under chapters 42 – 44 of this title.
(d) Indian tribes or tribal units (subdivisions, subsidiariesor business enterprises wholly owned by such Indian tribes) subject to theprovisions of chapters 42 – 44 of this title shall pay contributions underthe same terms and conditions as all other subject employers, unless they electto pay into the employment security fund amounts equal to the amount ofbenefits attributable to service in the employ of the Indian tribe.
(2) Indian tribes electing to make payments in lieu ofcontributions must make that election in the same manner and under the sameconditions as provided in §§ 28-43-24 – 28-43-31 pertaining tostate and local governments and nonprofit organizations subject to theprovisions of chapters 42 – 44 of this title. Indian tribes will determineif reimbursement for benefits paid will be elected by the tribe as a whole, byindividual tribal units, or by combinations of individual tribal units.
(3) Indian tribes or tribal units will be billed for the fullamount of benefits attributable to service in the employ of the Indian tribe ortribal unit on the same schedule as other employing units that have elected tomake payments in lieu of contributions.
(4) At the discretion of the director, any Indian tribe ortribal unit that elects to become liable for payments in lieu of contributionsshall be required within thirty (30) days after the effective date of itselection, to:
(A) execute and file with the director a surety bond approvedby the director; or
(B) deposit with the director money or securities on the samebasis as other employers with the same election option.
(e) Failure of the Indian tribe or tribal unit to makerequired payments, including assessments of interest and penalty, within ninety(90) days of receipt of the bill will cause the Indian tribe to lose the optionto make payments in lieu of contributions, as described in subsection (d), forthe following tax year unless payment in full is received before contributionrates for next tax year are computed.
(ii) Indian tribe that loses the option to make payments inlieu of contributions due to late payment or nonpayment, as described inparagraph (i) of this subdivision, shall have that option reinstated if, aftera period of one year, all contributions have been made timely, provided nocontributions, payments in lieu of contributions for benefits paid, penaltiesor interest remain outstanding.
(2) Failure of the Indian tribe or any of its tribal units tomake required payments, including assessments of interest and penalty, afterall collection activities deemed necessary by the director have been exhausted,will cause services performed for that tribe to not be treated as "employment"for purposes of subsection (b) of this section.
(ii) The director may determine that any Indian tribe thatloses coverage under paragraph (i) of this subdivision may have servicesperformed for that tribe again included as "employment" for purposes ofsubsection (b) of this section if all contributions, payments in lieu ofcontributions, penalties and interest have been paid.
(iii) The director will notify the United States InternalRevenue Service and the United States Department of Labor of any termination orreinstatement of coverage made under paragraphs (i) and (ii) of thissubdivision.
(f) Notices of payment and reporting delinquency to Indiantribes or their tribal units shall include information that failure to makefull payment within the prescribed time frame:
(1) Will cause the Indian tribe to be liable for taxes underFUTA;
(2) Will cause the Indian tribe to lose the option to makepayments in lieu of contributions;
(3) Could cause the Indian tribe to be excepted from thedefinition of "employer," as provided in subsection (a) of this section, andservices in the employ of the Indian tribe, as provided in subsection (b) ofthis section, to be excepted from "employment."
(g) Extended benefits paid under the provisions of §28-44-62 that are attributable to service in the employ of an Indian tribe andnot reimbursed by the federal government shall be financed in their entirety bythe Indian tribe.