FILE h1881.ih
104th CONGRESS
1st Session
To amend the Internal Revenue Code of 1986 to treat for
unemployment compensation purposes Indian tribal governments the
same as State or local units of government or as nonprofit
organizations.
IN THE HOUSE OF REPRESENTATIVES
June 16, 1995
Mr. Peterson of Minnesota introduced the following bill; which was
referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to treat for
unemployment compensation purposes Indian tribal governments the
same as State or local units of government or as nonprofit
organizations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Indian Tribal Government
Unemployment Compensation Act Amendments of 1995'.
SEC. 2. TREATMENT OF INDIAN TRIBAL GOVERNMENTS UNDER FEDERAL
UNEMPLOYMENT TAX ACT.
(a) In General: Section 3306(c)(7) of the Internal Revenue Code
of 1986 (defining employment) is amended--
(1) by inserting `or in the employ of an Indian tribe,' after
`service performed in the employ of a State, or any political
subdivision thereof,'; and
(2) by inserting `or Indian tribes' after `wholly owned by
one or more States or political subdivisions'.
(b) Payments in Lieu of Contributions: Section 3309 of the
Internal Revenue Code of 1986 (relating to State law coverage of
services performed for nonprofit organizations or governmental
entities) is amended--
(1) in subsection (a)(2) by inserting `, including an Indian
tribe,' after `the State law shall provide that a governmental
entity';
(2) in subsection (b)(3)(B) by inserting `, or of an Indian
tribe' after `of a State or political subdivision thereof';
(3) in subsection (b)(3)(E) by inserting `or the tribe's'
after `the State'; and
(4) in subsection (b)(5) by inserting `or of an Indian tribe'
after `an agency of a State or political subdivision thereof'.
(c) State Law Coverage: Section 3309 of the Internal Revenue Code
of 1986 (relating to State law coverage of services performed for
nonprofit organizations or governmental entities) is amended by
adding at the end the following new subsection:
`(d) Election by Indian Tribe: The State law shall provide that
an Indian tribe may elect to make contributions for employment as
if the employment is within the meaning of section 3306 of the
Internal Revenue Code of 1986 or to make payments in lieu of
contributions under this section, and shall provide that an Indian
tribe may make separate elections for itself and each subdivision,
subsidiary, or business enterprise chartered and wholly owned by
such Indian tribe.'
(d) Definitions: Section 3306 of the Internal Revenue Code of
1986 (relating to definitions) is amended by adding at the end the
following new subsection:
`(t) Indian Tribe: For purposes of this chapter, the term `Indian
tribe' has the meaning given to such term by section 4(e) of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
450b(e)), and includes any subdivision, subsidiary, or business
enterprise chartered and wholly owned by such an Indian tribe.'
(e) Transition Rule: For purposes of the Federal Unemployment Tax
Act, service performed in the employ of an Indian tribe (as defined
in section 3306(t) of the Internal Revenue Code of 1986 (as added
by this Act)) shall not be treated as employment (within the
meaning of section 3306 of such Code) if--
(1) it is service which is performed before the date of
enactment of this Act and with respect to which the tax imposed
under the Federal Unemployment Tax Act has not been paid, and
(2) such Indian tribe reimburses a State unemployment fund
for unemployment benefits paid for service attributable to such
tribe for such period.
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