§ 52-04-23 — Financing benefits paid to employees of Indian tribes

1. Benefits based on service in employment with an Indian tribe are payable in the same
amount, on the same terms, and subject to the same conditions as benefits payable
on the basis of other service subject to the North Dakota unemployment compensation
law.
2. a. Indian tribes or tribal units, subdivisions, subsidiaries, or business enterprises
wholly owned by the Indian tribe, subject to the North Dakota unemployment
compensation law, shall pay contributions under the same terms and conditions
as all other subject employers, unless it elects to pay into the state
unemployment fund amounts equal to the amount of benefits attributable to
service in the employ of the Indian tribe.
b. Indian tribes electing to make payments in lieu of contributions must make such
election in the same manner and under the same conditions as provided in
sections 52-04-18 and 52-04-19.1. Indian tribes may determine if reimbursement
for benefits paid will be elected by the tribe as a whole, by individual tribal units,
or by combinations of individual tribal units.
c. Indian tribes or tribal units must be billed for the full amount of benefits
attributable to service in the employ of the Indian tribe or tribal unit on the same
schedule as other employing units that have elected to make payments in lieu of
contributions.
d. An Indian tribe or tribal unit that elects to become liable for payments in lieu of
contributions must, within thirty days after the effective date of its election,
execute and file with the bureau a surety bond approved by the bureau.
3. a. Failure of the Indian tribe or tribal unit to make required payments, including
assessments of interest and penalty, within ninety days of receipt of the bill
causes the Indian tribe to lose the option to make payments in lieu of
contributions, as described in subsection 2, for the following tax year unless
payment in full is received before contribution rates for the next tax year are
computed.
b. An Indian tribe that loses the option to make payments in lieu of contributions due
to late payment or nonpayment, as described in subdivision a, is entitled to have
the option reinstated if, after a period of one year, all contributions have been
made timely, provided no contributions, payments in lieu of contributions for
benefits paid, penalties, or interest remain outstanding.
c. Failure of the Indian tribe or any tribal unit thereof to make required payments,
including assessments of interest and penalty, after all collection activities
deemed necessary by the bureau have been exhausted, causes services
performed for the tribe to not be treated as employment for purposes of
subsection 17 of section 52-01-01.
d. The bureau may determine that an Indian tribe that loses coverage under
subdivision c may have services performed for the tribe again included as

employment, for purposes of subsection 17 of section 52-01-01 if all
contributions, payments in lieu of contributions, penalties, and interest have been
paid.
e. The bureau will notify the United States internal revenue service and the United
States department of labor of a termination or reinstatement of coverage made
under subdivisions c and d.
4. Notices of payment and reporting delinquency to Indian tribes or their tribal units must
include information that failure to make full payment within the prescribed time frame:
a. Will cause the Indian tribe to be liable for taxes under the Federal Unemployment
Tax Act;
b. Will cause the Indian tribe to lose the option to make payments in lieu of
contributions; and
c. May cause the Indian tribe to be excepted from the definition of employer, as
provided in subsection 15 of section 52-01-01, and services in the employ of the
Indian tribe, as provided in subsection 17 of section 52-01-01, to be excepted
from employment.
5. Benefits paid that are attributable to service in the employ of an Indian tribe must be
financed as provided in section 52-04-19.1.