By Yarbrough H.B. No. 2029
77R5344 JMM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the application of the Texas Unemployment Compensation
1-3 Act to employment by an Indian tribe.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 201.011, Labor Code, is amended by adding
1-6 Subdivision (26) to read as follows:
1-7 (26) "Indian tribe" has the meaning assigned by
1-8 Section 3306(u), Federal Unemployment Tax Act (26 U.S.C. Section
1-9 3301 et seq.), as amended. A reference in this subtitle to an
1-10 Indian tribe includes a tribal unit, a subdivision or subsidiary of
1-11 an Indian tribe, and a business wholly owned by an Indian tribe.
1-12 SECTION 2. Subchapter D, Chapter 201, Labor Code, is amended
1-13 by adding Section 201.048 to read as follows:
1-14 Sec. 201.048. SERVICE FOR INDIAN TRIBE. Except as provided
1-15 by Sections 201.063 and 201.067, in this subtitle, "employment"
1-16 includes service performed in the employ of an Indian tribe.
1-17 SECTION 3. Section 201.063(a), Labor Code, is amended to read
1-18 as follows:
1-19 (a) In this subtitle, "employment" does not include:
1-20 (1) service in the employ of a political subdivision
1-21 or of an instrumentality of a political subdivision that is wholly
1-22 owned by one or more political subdivisions:
1-23 (A) as an elected official;
1-24 (B) as a member of a legislative body;
2-1 (C) as a member of the judiciary;
2-2 (D) as a temporary employee in case of fire,
2-3 storm, snow, earthquake, flood, or similar emergency; or
2-4 (E) in a position that is designated under law
2-5 as a major nontenured policy-making or advisory position or a
2-6 policy-making or advisory position that ordinarily does not require
2-7 more than eight hours of service each week;
2-8 (2) service in the employ of a foreign government,
2-9 including service as a consular or other officer or employee or as
2-10 a nondiplomatic representative;
2-11 (3) service in the employ of an instrumentality wholly
2-12 owned by a foreign government if:
2-13 (A) the service is similar to service performed
2-14 in a foreign country by an employee of the United States government
2-15 or an instrumentality of that government; and
2-16 (B) the United States secretary of state has
2-17 certified to the United States secretary of the treasury that the
2-18 foreign government grants an equivalent exemption for similar
2-19 services performed in the foreign country by an employee of the
2-20 United States government or an instrumentality of the United States
2-21 government; [or]
2-22 (4) service in the employ of the United States
2-23 government or an instrumentality of the United States exempt under
2-24 the United States Constitution from the contributions imposed by
2-25 this subtitle; or
2-26 (5) service described by Subdivisions (1)-(3)
2-27 performed in the employ of an Indian tribe.
3-1 SECTION 4. Section 201.067, Labor Code, is amended to read as
3-2 follows:
3-3 Sec. 201.067. REHABILITATIVE SERVICE; WORK RELIEF. In this
3-4 subtitle, "employment" does not include:
3-5 (1) service performed by an individual receiving
3-6 rehabilitative or paying work in the employ of a facility that is
3-7 conducted for the purpose of carrying out a program of
3-8 rehabilitation for individuals whose earning capacity is impaired
3-9 by age, physical or mental deficiency or injury or that provides
3-10 paying work for individuals who, because of their impaired physical
3-11 or mental capacity, cannot be readily absorbed in the competitive
3-12 labor market; or
3-13 (2) service performed as a part of an unemployment
3-14 work-relief or work-training program assisted or financed in whole
3-15 or in part by a federal agency, an agency of a state, [or] a
3-16 political subdivision of a state, or an Indian tribe by an
3-17 individual receiving the work relief or work training.
3-18 SECTION 5. Subchapter A, Chapter 204, Labor Code, is amended
3-19 by adding Section 204.010 to read as follows:
3-20 Sec. 204.010. PAYMENT OF CONTRIBUTIONS BY INDIAN TRIBES. An
3-21 Indian tribe that is subject to this subtitle shall pay
3-22 contributions under the same terms and conditions as any other
3-23 subject employer unless the Indian tribe elects under Chapter 205
3-24 to make reimbursements for benefits instead of contributions.
3-25 SECTION 6. Section 205.001(a), Labor Code, is amended to read
3-26 as follows:
3-27 (a) A state, a political subdivision of a state, an Indian
4-1 tribe, or an instrumentality of a state, [or a] political
4-2 subdivision of a state, or Indian tribe may elect to pay
4-3 reimbursements for benefits instead of contributions.
4-4 SECTION 7. Subchapter A, Chapter 205, Labor Code, is amended
4-5 by adding Section 205.004 to read as follows:
4-6 Sec. 205.004. ELECTION BY INDIAN TRIBE. (a) An Indian tribe
4-7 that elects to make reimbursements for benefits instead of
4-8 contributions shall make the election under this chapter in the
4-9 same manner and subject to the same conditions as the state or a
4-10 political subdivision of the state.
4-11 (b) An Indian tribe that makes an election under this
4-12 chapter shall determine whether the election is for the tribe as a
4-13 whole, individual tribal units, or a combination of individual
4-14 tribal units.
4-15 (c) An Indian tribe that makes an election under this
4-16 chapter shall pay the full amount of benefits attributable to
4-17 service performed in the employ of the Indian tribe on the same
4-18 schedule as other employing units that have elected to make
4-19 reimbursements for benefits instead of contributions.
4-20 (d) An Indian tribe that fails to make a required payment,
4-21 including payment of a penalty and interest, before the 91st day
4-22 after receiving notice of the payment loses the option to pay
4-23 reimbursements instead of contributions for the following tax year
4-24 unless the commission receives payment in full before the date
4-25 contribution rates for that tax year are computed.
4-26 (e) An Indian tribe that loses the option to pay
4-27 reimbursements instead of contributions under Subsection (d) may
5-1 resume the payment of reimbursements after the expiration of the
5-2 tax year following the date of losing the option if the Indian
5-3 tribe has timely paid all contributions during that tax year and
5-4 there are no contributions, payments instead of contributions for
5-5 benefits paid, penalties, or interest payments owed by the Indian
5-6 tribe.
5-7 SECTION 8. Subchapter A, Chapter 207, Labor Code, is amended
5-8 by adding Section 207.009 to read as follows:
5-9 Sec. 207.009. PAYMENT OF BENEFITS BY INDIAN TRIBE. Benefits
5-10 based on service in the employ of an Indian tribe, as described by
5-11 Section 201.048, are payable in the same amount, on the same terms,
5-12 and subject to the same conditions as benefits paid on the basis of
5-13 other service under this subtitle.
5-14 SECTION 9. Subchapter E, Chapter 209, Labor Code, is amended
5-15 by adding Section 209.0845 to read as follows:
5-16 Sec. 209.0845. CHARGES TO INDIAN TRIBE. The total amount of
5-17 extended benefit payments that are attributable to service in the
5-18 employ of an Indian tribe and not reimbursed by the federal
5-19 government shall be charged to the Indian tribe.
5-20 SECTION 10. Subchapter A, Chapter 213, Labor Code, is amended
5-21 by adding Section 213.010 to read as follows:
5-22 Sec. 213.010. NOTICE TO INDIAN TRIBES. A notice of payment
5-23 or notice of delinquency provided to an Indian tribe under this
5-24 chapter must inform the Indian tribe that failure to make full
5-25 payment within the required time:
5-26 (1) will cause the Indian tribe to be liable for taxes
5-27 under the Federal Unemployment Tax Act (26 U.S.C. Section 3301 et
6-1 seq.), as amended;
6-2 (2) will cause the Indian tribe to lose the option to
6-3 pay reimbursements for benefits instead of contributions; and
6-4 (3) may cause the Indian tribe to no longer be
6-5 considered an employer and services for the Indian tribe to no
6-6 longer be considered employment for purposes of Section 201.048.
6-7 SECTION 11. Subchapter D, Chapter 213, Labor Code, is amended
6-8 by adding Section 213.060 to read as follows:
6-9 Sec. 213.060. ENFORCEMENT AGAINST INDIAN TRIBE. (a)
6-10 Services performed for an Indian tribe that fails to make a
6-11 required payment, including payment of a penalty and interest, are
6-12 not considered, after the exhaustion of all necessary collection
6-13 activities by the commission, to be employment for purposes of
6-14 Section 201.048.
6-15 (b) Services for an Indian tribe that loses coverage under
6-16 Subsection (a) may be considered to be employment for purposes of
6-17 Section 201.048 if the Indian tribe has paid all contributions,
6-18 payments instead of contributions for benefits paid, penalties, and
6-19 interest owed by the Indian tribe.
6-20 (c) The commission shall notify the Internal Revenue Service
6-21 and the United States Department of Labor of an Indian tribe for
6-22 which coverage under this subtitle is terminated or reinstated
6-23 under this section.
6-24 SECTION 12. An Indian tribe that was an employer for purposes
6-25 of Subtitle B, Title 4, Labor Code, immediately before the
6-26 effective date of this Act may make the initial election permitted
6-27 under Section 205.004, Labor Code, as added by this Act, to be
7-1 effective for the 2002 calendar year.
7-2 SECTION 13. This Act takes effect immediately if it receives
7-3 a vote of two-thirds of all the members elected to each house, as
7-4 provided by Section 39, Article III, Texas Constitution. If this
7-5 Act does not receive the vote necessary for immediate effect, this
7-6 Act takes effect September 1, 2001.