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SECTION 566
Indian tribes
Labor (LAB) CHAPTER 31, ARTICLE 18, TITLE 5
§ 566. Indian tribes. 1. Definitions. (a) Indian tribe shall mean any
Indian tribe, subdivision, subsidiary or business enterprise wholly
owned by such Indian tribe, as defined in section 3306(u) of the federal
unemployment tax act (FUTA).

(b) The term "employer" as defined under section five hundred twelve
of this article shall include any Indian tribe for which service in
employment as defined under this article is performed.

(c) The term "employment" as defined under section five hundred eleven
of this article shall include service performed in the employ of an
Indian tribe provided such service is excluded from "employment" as
defined in FUTA solely by reason of section 3306(c)(7), FUTA, and is not
otherwise excluded from "employment" under this article. For purposes of
this section, the exclusions from employment in subdivision two of
section five hundred sixty-five of this article shall be applicable to
services performed in the employ of an Indian tribe.

2. Benefits based on service in employment defined in this section
shall be 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 this article.

3. Coverage. An Indian tribe shall be liable for contributions under
this article unless it becomes liable for payments in lieu of
contributions.

4. Election of payments in lieu of contributions. (a) Indian tribes
liable for contributions under this article may elect to become liable
for payments in lieu of contributions in the same manner and under the
same conditions as provided in section five hundred sixty-five of this
article except as otherwise provided in this section. Indian tribes may
make separate elections for itself and each subdivision, subsidiary, or
business enterprise wholly owned by such Indian tribe.

(b) An Indian tribe which has elected to become liable for payments in
lieu of contributions shall pay into the fund an amount equal to the
amount of benefits paid to claimants and charged to its employer's
account in accordance with the provisions of paragraph (e) of
subdivision one of section five hundred eighty-one of this article on
the basis of remuneration paid on or after the date on which such
liability became effective. The amount of payments so required shall be
determined by the commissioner as soon as practicable after the end of
each calendar quarter or any other period. Such amount shall be payable
quarterly or at such times and in such manner as the commissioner shall
prescribe and, when paid, the employer's account of the Indian tribes
shall be discharged accordingly.

(c) If an Indian tribe elects payments in lieu of contributions as a
group, the members of the group shall be severally and jointly liable
for payments of amounts equal to the amounts of benefits paid to
claimants and charged to the employer's accounts of all members of the
group. The commissioner may prescribe conditions and methods for such
group elections and for the discharge of the obligations and
responsibilities of the group and its members. Such request shall be
made in accordance with the provisions of paragraph (a) of this
subdivision.

(d) Any Indian tribe that elects to become liable for payments in lieu
of contributions shall, within ninety days of the approval date of its
election, execute and file with the commissioner a surety bond approved
by the commissioner as to amount and form. Such surety bond shall
continue in effect during periods covering such election, but may be
revised annually as to amount and form at the discretion of the
commissioner.

5. Termination of election. (a) An Indian tribe may terminate its
election to become liable for payments in lieu of contributions as of
the first day of any calendar year by filing a written notice to this
effect with the commissioner before the beginning of such year.

(b) If such election is terminated by an Indian tribe or cancelled by
the commissioner, the Indian tribe shall remain liable for payments in
lieu of contributions with respect to all benefits charged to its
account on the basis of remuneration paid before the date on which such
termination or cancellation took effect.

(c) Failure of an Indian tribe to make required payments, including
assessments of interest and penalty, within ninety days of receipt of
the notice of delinquency, will cause the Indian tribe to lose the
option to make payments in lieu of contributions, as described in
subdivision four of this section, for the following calendar year unless
payment in full is received before the computation date preceding the
following calendar year.

(d) Any Indian tribe that loses the option to make payments in lieu of
contributions due to late payment or nonpayment, as described in
paragraph (c) of this subdivision, may request such option be reinstated
prospectively by the commissioner, if all contributions have been made
timely, provided no contributions, payments in lieu of contributions for
benefits paid, penalties or interest are outstanding. Such request shall
be made in accordance with the provisions of paragraph (a) of
subdivision four of this section.

6. Termination of coverage. (a) If, within ninety days of receipt of a
notice of delinquency, an Indian tribe fails to make required
contributions, payments in lieu of contributions, payments of penalties
or interest under this article or fails to post a payment bond, and
after all collection activities deemed necessary by the commissioner
have been exhausted, the commissioner may cause services performed for
such tribe to not be treated as "employment" for purposes of subdivision
one of this section. Such termination of coverage shall be effective on
the first day of the quarter following the quarter in which notice of
termination was mailed.

(b) The commissioner may determine that an Indian tribe that loses
coverage under paragraph (a) of this subdivision, may have services
performed for such tribe again included as "employment" for purposes of
subdivision one of this section if all contributions, payments in lieu
of contributions, penalties and interest have been paid. Such coverage
shall begin as of the quarter following the calendar quarter in which
all contributions, payments in lieu of contributions and interest have
been paid.

7. Notices of payment and reporting delinquency to Indian tribes or
their tribal units shall 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 FUTA;

(b) will cause the Indian tribe to lose the option to make payments in
lieu of contributions;

(c) could cause the Indian tribe to be exempted from the definition of
"employer", as provided in subdivision one of this section, and services
in the employ of the Indian tribe, as provided in subdivision two of
this section, to be exempted from "employment".

8. Joint accounts. Any two or more Indian tribes may form a joint
account by complying with rules and regulations prescribed by the
commissioner for the establishment, maintenance and dissolution of such
accounts.

9. Assessment and collection of payments in lieu of contributions. The
amount of payments in lieu of contributions due hereunder from Indian
tribes but not paid upon notice shall be assessed and collected by the
commissioner, together with interest and penalties, if any, in the same
manner and subject to the same conditions under which contributions due
from other employers may be assessed and collected under provisions of
this article.

10. Extended benefits paid that are attributable to service in the
employ of an Indian tribe and not reimbursed by the federal government
shall be financed in their entirety by such Indian tribe.

11. If an Indian tribe fails to make payments required under this
section (including assessments of interest and penalty) within ninety
days of a final notice of delinquency, the commissioner will immediately
notify the United States internal revenue service and the United States
department of labor.