I
106TH CONGRESS
2D SESSION
H. R. 4556
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
MAY 25, 2000
Mr. CAMP (for himself, Mr. HAYWORTH, Mr. KILDEE, Mr. PETERSON of Min-
nesota, Mr. SHADEGG, Mr. KLECZKA, and Mr. FOLEY) 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 gov-
ernments the same as State or local units of government
or as nonprofit organizations.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Tax Fairness for Trib-
al Governments Act of 2000’’.
(c) STATE LAW COVERAGE.—Section 3309 of the In-
ternal Revenue Code of 1986 (relating to State law cov-
erage 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 make contributions
for employment as if the employment is within the mean-
ing of section 3306 or make payments in lieu of contribu-
tions under this section, and shall provide that an Indian
tribe may make separate elections for itself and each sub-
division, subsidiary, or business enterprise wholly owned
by such Indian tribe. State law may require a tribe to post
a payment bond or take other reasonable measures to as-
sure the making of payments in lieu of contributions under
this section. Notwithstanding the requirements of section
3306(a)(6), if, within 90 days of having received a notice
of delinquency, a tribe fails to made contributions, pay-
ments in lieu of contributions, or payment of penalties or
interest (at amounts or rates comparable to those applied
to all other employers covered under the State law) as-
sessed with respect to such failure, or if the tribe fails
to post a required payment bond, then service for the tribe
shall not be excepted from employment under section
3306(c)(7) until any such failure is corrected. This sub-
section shall apply to an Indian tribe within the meaning
of section 4(e) of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b(e)).’’.
(d) DEFINITIONS.—Section 3306 of the Internal Rev-
enue Code of 1986 (relating to definitions) is amended by
adding at the end the following new subsection:
‘‘(u) 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 Edu-
cation Assistance Act (25 U.S.C. 450b(e)), and includes
any subdivision, subsidiary, or business enterprise 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(u) 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 Unemploy-
ment Tax Act has not been paid: and
(2) such Indian tribe reimburses a State unem-
ployment fund for unemployment benefits paid for
service attributable to such tribe for such period.
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