                                 CODE OF VIRGINIA

FINANCING OF BENEFITS TO EMPLOYEES OF INDIAN TRIBES (§ 60.2-507.1)

A. As used in this section, unless the context requires a different meaning:
			&#8220;Employer&#8221; includes any Indian tribe for which service in
employment as defined under this title is performed.
			&#8220;Employment&#8221; includes service performed in the employ of an
Indian tribe, as defined in &#xA7; 3306(u) of the Federal Unemployment Tax Act
(FUTA), provided such service is excluded from &#8220;employment&#8221; as
defined in FUTA solely by reason of &#xA7; 3306(c)(7) of FUTA, and is not
otherwise excluded from &#8220;employment&#8221; under this title. For purposes
of this section, any exclusions from employment in &#xA7; 60.2-219 that relate
to services performed in the employ of state or local government shall be
applicable to services performed in the employ of an Indian tribe.
			&#8220;Tribal units&#8221; means subdivisions, subsidiaries, or business
enterprises wholly owned by an Indian tribe.

B. Benefits based on service included in the definition of employment as
provided in subsection A 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 under this title.

C. Indian tribes or tribal units subject to this title shall pay taxes as set
forth in &#xA7;&#xA7; 60.2-526 through 60.2-533 under the same terms and
conditions as all other subject employers, unless they elect to pay into the
fund amounts equal to the amount of benefits attributable to service in the
employ of the Indian tribe.

D. Indian tribes that elect to make payments to reimburse the fund for benefits
paid shall make such election in the same manner and under the same conditions
as provided in subsection C of &#xA7; 60.2-507 pertaining to governmental
entities that elect to make payments in lieu of taxes. Indian tribes shall
determine if reimbursement for benefits paid will be elected by the tribe as a
whole, by individual tribal units, or by combinations of individual tribal
units.

E. Indian tribes or tribal units that elect to make payments in lieu of taxes
shall be billed for the full amount of benefits attributable to service in the
employ of the Indian tribe or tribal unit on the same schedule as nonprofit
organizations that have elected to make payments in lieu of taxes as provided in
&#xA7; 60.2-501.

F. At the discretion of the Commission, any Indian tribe or tribal unit that
elects to become liable for payments in lieu of taxes shall be required within
30 days after the effective date of its election (i) to execute and file with
the Commission a surety bond approved by the Commission or (ii) to deposit with
the Commission money or securities on the same basis as nonprofit organizations
that are required to post a bond or deposit pursuant to &#xA7; 60.2-502.

G. Failure of the Indian tribe or tribal unit to make any required payment,
including any assessment of interest and penalty, within 90 days of its due date
shall cause the Indian tribe to lose the option to make payments in lieu of
taxes, as provided in subsection C, for the following tax year unless payment in
full is received before tax rates for next tax year are computed.

H. Any Indian tribe that loses the option to make payments in lieu of taxes due
to late payment or nonpayment, as described in subsection G, shall have such
option reinstated if, after a period of one year, all taxes have been made
timely, provided that no taxes, payments in lieu of taxes for benefits paid,
penalties or interest remain outstanding.

I. Failure of the Indian tribe or any tribal unit thereof to make required
payments, including assessments of interest and penalty, after all collection
activities deemed necessary by the Commission have been exhausted, shall cause
services performed for such tribe to not be treated as &#8220;employment&#8221;
as provided in subsection A.

J. The Commission may determine that any Indian tribe that loses coverage under
subsection I may have services performed for such tribe again included as
&#8220;employment&#8221; as provided in subsection A if all taxes, payments in
lieu of taxes, penalties, and interest have been paid.

K. The Commission shall notify the United States Internal Revenue Service and
the United States Department of Labor of any termination or reinstatement of
coverage made under subsection I or subsection J.

L. 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:

   1. Shall cause the Indian tribe to be liable for taxes under FUTA;

   2. Shall cause the Indian tribe to lose the option to make payments in lieu of
   taxes; and

   3. May cause the Indian tribe to be excepted from the definition of
   &#8220;employer,&#8221; as provided in subsection A, and services in the
   employ of the Indian tribe, as provided in subsection A, to be excepted from
   &#8220;employment.&#8221;

M. 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.

HISTORY: 2008, cc. 100, 247.