1-1 By: Yarbrough, et al. (Senate Sponsor - Shapleigh) H.B. No. 2029
1-2 (In the Senate - Received from the House May 2, 2001;
1-3 May 3, 2001, read first time and referred to Committee on Business
1-4 and Commerce; May 10, 2001, reported favorably by the following
1-5 vote: Yeas 6, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the application of the Texas Unemployment Compensation
1-9 Act to employment by an Indian tribe.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 201.011, Labor Code, is amended by adding
1-12 Subdivision (26) to read as follows:
1-13 (26) "Indian tribe" has the meaning assigned by
1-14 Section 3306(u), Federal Unemployment Tax Act (26 U.S.C. Section
1-15 3306), as amended. A reference in this subtitle to an Indian tribe
1-16 includes a tribal unit, a subdivision or subsidiary of an Indian
1-17 tribe, and a business wholly owned by an Indian tribe.
1-18 SECTION 2. Subchapter D, Chapter 201, Labor Code, is amended
1-19 by adding Section 201.048 to read as follows:
1-20 Sec. 201.048. SERVICE FOR INDIAN TRIBE. Except as provided
1-21 by Sections 201.063 and 201.067, in this subtitle, "employment"
1-22 includes service performed in the employ of an Indian tribe if the
1-23 services are excluded from the definition of employment under the
1-24 Federal Unemployment Tax Act (26 U.S.C. Section 3301 et seq.), as
1-25 amended, solely because of Section 3306(c)(7) of that Act.
1-26 SECTION 3. Section 201.063(a), Labor Code, is amended to read
1-27 as follows:
1-28 (a) In this subtitle, "employment" does not include:
1-29 (1) service in the employ of a political subdivision
1-30 or of an instrumentality of a political subdivision that is wholly
1-31 owned by one or more political subdivisions:
1-32 (A) as an elected official;
1-33 (B) as a member of a legislative body;
1-34 (C) as a member of the judiciary;
1-35 (D) as a temporary employee in case of fire,
1-36 storm, snow, earthquake, flood, or similar emergency; or
1-37 (E) in a position that is designated under law
1-38 as a major nontenured policy-making or advisory position or a
1-39 policy-making or advisory position that ordinarily does not require
1-40 more than eight hours of service each week;
1-41 (2) service in the employ of a foreign government,
1-42 including service as a consular or other officer or employee or as
1-43 a nondiplomatic representative;
1-44 (3) service in the employ of an instrumentality wholly
1-45 owned by a foreign government if:
1-46 (A) the service is similar to service performed
1-47 in a foreign country by an employee of the United States government
1-48 or an instrumentality of that government; and
1-49 (B) the United States secretary of state has
1-50 certified to the United States secretary of the treasury that the
1-51 foreign government grants an equivalent exemption for similar
1-52 services performed in the foreign country by an employee of the
1-53 United States government or an instrumentality of the United States
1-54 government; [or]
1-55 (4) service in the employ of the United States
1-56 government or an instrumentality of the United States exempt under
1-57 the United States Constitution from the contributions imposed by
1-58 this subtitle; or
1-59 (5) service described by Subdivisions (1)-(3)
1-60 performed in the employ of an Indian tribe.
1-61 SECTION 4. Section 201.067, Labor Code, is amended to read as
1-62 follows:
1-63 Sec. 201.067. REHABILITATIVE SERVICE; WORK RELIEF. In this
1-64 subtitle, "employment" does not include:
2-1 (1) service performed by an individual receiving
2-2 rehabilitative or paying work in the employ of a facility that is
2-3 conducted for the purpose of carrying out a program of
2-4 rehabilitation for individuals whose earning capacity is impaired
2-5 by age, physical or mental deficiency or injury or that provides
2-6 paying work for individuals who, because of their impaired physical
2-7 or mental capacity, cannot be readily absorbed in the competitive
2-8 labor market; or
2-9 (2) service performed as a part of an unemployment
2-10 work-relief or work-training program assisted or financed in whole
2-11 or in part by a federal agency, an agency of a state, [or] a
2-12 political subdivision of a state, or an Indian tribe by an
2-13 individual receiving the work relief or work training.
2-14 SECTION 5. Subchapter A, Chapter 204, Labor Code, is amended
2-15 by adding Section 204.010 to read as follows:
2-16 Sec. 204.010. PAYMENT OF CONTRIBUTIONS BY INDIAN TRIBES. An
2-17 Indian tribe that is subject to this subtitle shall pay
2-18 contributions under the same terms and conditions as any other
2-19 subject employer unless the Indian tribe elects under Chapter 205
2-20 to make reimbursements for benefits instead of contributions.
2-21 SECTION 6. Section 205.001(a), Labor Code, is amended to read
2-22 as follows:
2-23 (a) A state, a political subdivision of a state, an Indian
2-24 tribe, or an instrumentality of a state, [or a] political
2-25 subdivision of a state, or Indian tribe may elect to pay
2-26 reimbursements for benefits instead of contributions.
2-27 SECTION 7. Subchapter A, Chapter 205, Labor Code, is amended
2-28 by adding Section 205.004 to read as follows:
2-29 Sec. 205.004. ELECTION BY INDIAN TRIBE. (a) An Indian tribe
2-30 that elects to make reimbursements for benefits instead of
2-31 contributions shall make the election under this chapter in the
2-32 same manner and subject to the same conditions as the state or a
2-33 political subdivision of the state.
2-34 (b) An Indian tribe that makes an election under this
2-35 chapter shall determine whether the election is for the tribe as a
2-36 whole, individual tribal units, or a combination of individual
2-37 tribal units.
2-38 (c) An Indian tribe that makes an election under this
2-39 chapter shall pay the full amount of benefits attributable to
2-40 service performed in the employ of the Indian tribe on the same
2-41 schedule as other employing units that have elected to make
2-42 reimbursements for benefits instead of contributions.
2-43 (d) An Indian tribe that fails to make a required payment,
2-44 including payment of a penalty and interest, before the 91st day
2-45 after receiving notice of the payment loses the option to pay
2-46 reimbursements instead of contributions for the following tax year
2-47 unless the commission receives payment in full before the date
2-48 contribution rates for that tax year are computed.
2-49 (e) An Indian tribe that loses the option to pay
2-50 reimbursements instead of contributions due to late payments under
2-51 Subsection (d) may resume that option if, after the expiration of
2-52 one year following the date of losing the option, the Indian tribe
2-53 has timely paid all contributions and no contributions, payments
2-54 instead of contributions for benefits paid, penalties, or interest
2-55 remain outstanding.
2-56 SECTION 8. Subchapter A, Chapter 207, Labor Code, is amended
2-57 by adding Section 207.009 to read as follows:
2-58 Sec. 207.009. PAYMENT OF BENEFITS BY INDIAN TRIBE. Benefits
2-59 based on service in the employ of an Indian tribe, as described by
2-60 Section 201.048, are payable in the same amount, on the same terms,
2-61 and subject to the same conditions as benefits paid on the basis of
2-62 other service under this subtitle.
2-63 SECTION 9. Subchapter E, Chapter 209, Labor Code, is amended
2-64 by adding Section 209.0845 to read as follows:
2-65 Sec. 209.0845. CHARGES TO INDIAN TRIBE. The total amount of
2-66 extended benefit payments that are attributable to service in the
2-67 employ of an Indian tribe and not reimbursed by the federal
2-68 government shall be charged to the Indian tribe.
2-69 SECTION 10. Subchapter A, Chapter 213, Labor Code, is amended
3-1 by adding Section 213.010 to read as follows:
3-2 Sec. 213.010. NOTICE TO INDIAN TRIBES. A notice of payment
3-3 or notice of delinquency provided to an Indian tribe under this
3-4 chapter must inform the Indian tribe that failure to make full
3-5 payment within the required time:
3-6 (1) will cause the Indian tribe to be liable for taxes
3-7 under the Federal Unemployment Tax Act (26 U.S.C. Section 3301 et
3-8 seq.), as amended;
3-9 (2) will cause the Indian tribe to lose the option to
3-10 pay reimbursements for benefits instead of contributions; and
3-11 (3) may cause the Indian tribe to no longer be
3-12 considered an employer and services for the Indian tribe to no
3-13 longer be considered employment for purposes of Section 201.048.
3-14 SECTION 11. Subchapter D, Chapter 213, Labor Code, is amended
3-15 by adding Section 213.060 to read as follows:
3-16 Sec. 213.060. ENFORCEMENT AGAINST INDIAN TRIBE. (a)
3-17 Services performed for an Indian tribe that fails to make a
3-18 required payment, including payment of a penalty and interest, are
3-19 not considered, after the exhaustion of all necessary collection
3-20 activities by the commission, to be employment for purposes of
3-21 Section 201.048.
3-22 (b) Services for an Indian tribe that loses coverage under
3-23 Subsection (a) may be considered to be employment for purposes of
3-24 Section 201.048 if the Indian tribe has paid all contributions,
3-25 payments instead of contributions for benefits paid, penalties, and
3-26 interest owed by the Indian tribe.
3-27 (c) The commission shall notify the Internal Revenue Service
3-28 and the United States Department of Labor of an Indian tribe that
3-29 fails to make required payments.
3-30 SECTION 12. An Indian tribe that was an employer for purposes
3-31 of Subtitle B, Title 4, Labor Code, immediately before the
3-32 effective date of this Act may make the initial election permitted
3-33 under Section 205.004, Labor Code, as added by this Act, to be
3-34 effective for the 2002 calendar year.
3-35 SECTION 13. This Act takes effect immediately if it receives
3-36 a vote of two-thirds of all the members elected to each house, as
3-37 provided by Section 39, Article III, Texas Constitution. If this
3-38 Act does not receive the vote necessary for immediate effect, this
3-39 Act takes effect September 1, 2001.
3-40 * * * * *