§ 566 — Indian tribes

§ 566. Indian tribes. 1. Definitions. (a) Indian tribe shall mean any\nIndian tribe, subdivision, subsidiary or business enterprise wholly\nowned by such Indian tribe, as defined in section 3306(u) of the federal\nunemployment tax act (FUTA).\n (b) The term "employer" as defined under section five hundred twelve\nof this article shall include any Indian tribe for which service in\nemployment as defined under this article is performed.\n (c) The term "employment" as defined under section five hundred eleven\nof this article shall include service performed in the employ of an\nIndian tribe provided such service is excluded from "employment" as\ndefined in FUTA solely by reason of section 3306(c)(7), FUTA, and is not\notherwise excluded from "employment" under this article. For purposes of\nthis section, the exclusions from employment in subdivision two of\nsection five hundred sixty-five of this article shall be applicable to\nservices performed in the employ of an Indian tribe.\n 2. Benefits based on service in employment defined in this section\nshall be payable in the same amount, on the same terms and subject to\nthe same conditions as benefits payable on the basis of other service\nsubject to this article.\n 3. Coverage. An Indian tribe shall be liable for contributions under\nthis article unless it becomes liable for payments in lieu of\ncontributions.\n 4. Election of payments in lieu of contributions. (a) Indian tribes\nliable for contributions under this article may elect to become liable\nfor payments in lieu of contributions in the same manner and under the\nsame conditions as provided in section five hundred sixty-five of this\narticle except as otherwise provided in this section. Indian tribes may\nmake separate elections for itself and each subdivision, subsidiary, or\nbusiness enterprise wholly owned by such Indian tribe.\n (b) An Indian tribe which has elected to become liable for payments in\nlieu of contributions shall pay into the fund an amount equal to the\namount of benefits paid to claimants and charged to its employer's\naccount in accordance with the provisions of paragraph (e) of\nsubdivision one of section five hundred eighty-one of this article on\nthe basis of remuneration paid on or after the date on which such\nliability became effective. The amount of payments so required shall be\ndetermined by the commissioner as soon as practicable after the end of\neach calendar quarter or any other period. Such amount shall be payable\nquarterly or at such times and in such manner as the commissioner shall\nprescribe and, when paid, the employer's account of the Indian tribes\nshall be discharged accordingly.\n (c) If an Indian tribe elects payments in lieu of contributions as a\ngroup, the members of the group shall be severally and jointly liable\nfor payments of amounts equal to the amounts of benefits paid to\nclaimants and charged to the employer's accounts of all members of the\ngroup. The commissioner may prescribe conditions and methods for such\ngroup elections and for the discharge of the obligations and\nresponsibilities of the group and its members. Such request shall be\nmade in accordance with the provisions of paragraph (a) of this\nsubdivision.\n (d) Any Indian tribe that elects to become liable for payments in lieu\nof contributions shall, within ninety days of the approval date of its\nelection, execute and file with the commissioner a surety bond approved\nby the commissioner as to amount and form. Such surety bond shall\ncontinue in effect during periods covering such election, but may be\nrevised annually as to amount and form at the discretion of the\ncommissioner.\n 5. Termination of election. (a) An Indian tribe may terminate its\nelection to become liable for payments in lieu of contributions as of\nthe first day of any calendar year by filing a written notice to this\neffect with the commissioner before the beginning of such year.\n (b) If such election is terminated by an Indian tribe or cancelled by\nthe commissioner, the Indian tribe shall remain liable for payments in\nlieu of contributions with respect to all benefits charged to its\naccount on the basis of remuneration paid before the date on which such\ntermination or cancellation took effect.\n (c) Failure of an Indian tribe to make required payments, including\nassessments of interest and penalty, within ninety days of receipt of\nthe notice of delinquency, will cause the Indian tribe to lose the\noption to make payments in lieu of contributions, as described in\nsubdivision four of this section, for the following calendar year unless\npayment in full is received before the computation date preceding the\nfollowing calendar year.\n (d) Any Indian tribe that loses the option to make payments in lieu of\ncontributions due to late payment or nonpayment, as described in\nparagraph (c) of this subdivision, may request such option be reinstated\nprospectively by the commissioner, if all contributions have been made\ntimely, provided no contributions, payments in lieu of contributions for\nbenefits paid, penalties or interest are outstanding. Such request shall\nbe made in accordance with the provisions of paragraph (a) of\nsubdivision four of this section.\n 6. Termination of coverage. (a) If, within ninety days of receipt of a\nnotice of delinquency, an Indian tribe fails to make required\ncontributions, payments in lieu of contributions, payments of penalties\nor interest under this article or fails to post a payment bond, and\nafter all collection activities deemed necessary by the commissioner\nhave been exhausted, the commissioner may cause services performed for\nsuch tribe to not be treated as "employment" for purposes of subdivision\none of this section. Such termination of coverage shall be effective on\nthe first day of the quarter following the quarter in which notice of\ntermination was mailed.\n (b) The commissioner may determine that an Indian tribe that loses\ncoverage under paragraph (a) of this subdivision, may have services\nperformed for such tribe again included as "employment" for purposes of\nsubdivision one of this section if all contributions, payments in lieu\nof contributions, penalties and interest have been paid. Such coverage\nshall begin as of the quarter following the calendar quarter in which\nall contributions, payments in lieu of contributions and interest have\nbeen paid.\n 7. Notices of payment and reporting delinquency to Indian tribes or\ntheir tribal units shall include information that failure to make full\npayment within the prescribed time frame:\n (a) will cause the Indian tribe to be liable for taxes under FUTA;\n (b) will cause the Indian tribe to lose the option to make payments in\nlieu of contributions;\n (c) could cause the Indian tribe to be exempted from the definition of\n"employer", as provided in subdivision one of this section, and services\nin the employ of the Indian tribe, as provided in subdivision two of\nthis section, to be exempted from "employment".\n 8. Joint accounts. Any two or more Indian tribes may form a joint\naccount by complying with rules and regulations prescribed by the\ncommissioner for the establishment, maintenance and dissolution of such\naccounts.\n 9. Assessment and collection of payments in lieu of contributions. The\namount of payments in lieu of contributions due hereunder from Indian\ntribes but not paid upon notice shall be assessed and collected by the\ncommissioner, together with interest and penalties, if any, in the same\nmanner and subject to the same conditions under which contributions due\nfrom other employers may be assessed and collected under provisions of\nthis article.\n 10. Extended benefits paid that are attributable to service in the\nemploy of an Indian tribe and not reimbursed by the federal government\nshall be financed in their entirety by such Indian tribe.\n 11. If an Indian tribe fails to make payments required under this\nsection (including assessments of interest and penalty) within ninety\ndays of a final notice of delinquency, the commissioner will immediately\nnotify the United States internal revenue service and the United States\ndepartment of labor.\n