Reference: Labor Code, TUCA Section 213.010 & 213.060

House Bill 2029, passed in the 77th Session of the Legislature, amended the Labor Code, TUCA, Section 201.011 to cover employment in the service of an Indian Tribe. The bill requires payment of contributions or reimbursements by the Indian Tribe under the same terms as any other subject employer, allows an Indian Tribe to elect reimbursing status rather than taxed status, and requires a notice to Indian Tribes who default in the payment of accrued reimbursements. The amendment also requires the agency to notify the U.S. Department of Labor and the Internal Revenue Service.

"Indian Tribe" has the meaning assigned by Section 3306 (u), Federal Unemployment Tax Act. A reference to an Indian Tribe includes a tribal unit, a subdivision or subsidiary of an Indian Tribe, and a business wholly owned by an Indian Tribe.

Payment of Contributions: An Indian Tribe that is subject to this section shall pay UI taxes under the same terms and conditions as any other subject employer unless the Indian Tribe elects to pay reimbursements.

Election by Indian Tribe To Pay Reimbursements: An Indian Tribe that elects to pay reimbursements shall make the election in the same manner and subject to the same conditions as the state or a political subdivision. An Indian Tribe that elects reimbursing status shall pay the full amount of benefits charged to it on the same schedule and under the same terms as other reimbursing employers.

Collections Monetary Criteria: The same monetary criteria for inclusion in ACAP, Freeze/Levy, or other collections procedure will apply to Indian Tribes as to any other employing unit. An Indian Tribe that fails to pay accrued reimbursements, including penalty and interest, before the 91st day after receiving notice of the amount due loses the option to pay reimbursements instead of taxes.

1. Collection Section Accounts Examiners in Administrative Actions Unit will identify accounts in ACAP at Day 42 that are classified as Indian Tribes during the routine examination of the account prior to the filing of a tax lien. After filing of the tax lien, the account, along with the status folder or any other hardcopy documents, will be delivered to the Collection Section Manager, or in the manager's absence, to the Assistant Collection Section Manager. Appropriate comments will be added to the Employer Master File on each account.
   
   
2. The Collection Section Manager or delegate will review the account to determine if it is appropriate to file a Freeze/Levy to secure collection of the delinquency. If it is determined that Freeze/Levy action should be initiated, the manager or delegate will mark the file accordingly and transfer it to the AAU Freeze/Levy desk with instructions to return the file to the manager or delegate.
   
   
3. When the Indian Tribe account is returned to the Collection Section Manager or delegate, it will be reviewed for the propriety of proceeding under TUCA Section 205.004 (d) and Section 213.010, Notice to Indian Tribes. If it is determined that the account meets the statutory criteria and the delinquency remains unpaid, a letter "Default Notice To Indian Tribe" will be mailed via Certified Mail to the account address of record. The text of this letter will comply with the stated requirements in Section 213.010. The account will be marked for return to the manager or delegate for compliance review 98 days from the date of the "Default Notice to Indian Tribe". If the account meets the monetary criteria for Notice of Assessment, the file will be forwarded to Collection Section, Civil Actions Unit.
   
   
4. If the delinquent amount due stated in the "Default Notice To Indian Tribe" is unpaid when the account is returned for review to the Collection Section Manager or delegate, the manager or delegate will certify the delinquency status of the account by memorandum to the Director of the Tax Department. The memorandum will contain the Collection Section Manager's statement that due notice of delinquency as required in Section 213.010 has been given to the Indian Tribe, that payment has not been received, and that the account remains delinquent.
   
   
5. The account will be released by Collection Section Manager for further state office action or to field operations for appropriate non-ACAP collection actions.

NOTE: The Tax Director or delegate will issue the appropriate instructions regarding revocation of the Indian Tribes's election to pay reimbursements and other enforcement actions detailed in Section 205.004 and Section 213.060, including notification to the Internal Revenue Service and the US Department of Labor.