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Title 5 Coverage

Section 560
Terms of coverage
Section 561
Voluntary election
Section 562
Termination of coverage
Section 563
Non-profit organizations
Section 564
Agricultural labor
Section 565
Governmental entities
Section 566
Indian tribes

Sec. 560. Terms of coverage.

1. Liability. Any employer shall become liable for contributions under this article if he has paid remuneration of three hundred dollars or more in any calendar quarter, except that liability with respect to persons employed in personal or domestic service in private homes shall be considered separately and an employer shall become liable for contributions with respect to such persons only if he has paid to them remuneration in cash of five hundred dollars or more in any calendar quarter. Such liability for contributions shall commence on the first day of such calendar quarter. An employer who, by operation of law, purchase or otherwise becomes successor to an employer liable for contributions shall become liable for contributions on the day of his succession. This provision shall not affect such successor`s liability as otherwise prescribed by law for unpaid contributions due from his predecessor.

Subd. 1 as amended by L. 1965, Ch. 103 effective January 1, 1966.

2. Hirings by helpers and assistants. Whenever any helper, assistant, or employee of an employer engages any other person in the work which said helper, assistant, or employee is doing for the employer, such employer shall for all purposes hereof be deemed the employer of such other person, whether such person is paid by the said helper, assistant, or employee, or by the employer, provided the employment has been with the knowledge, actual, constructive, or implied, of the employer.

3. Tax exemption in other laws. No exemption from taxation granted under any other law of the state shall be so construed as to apply to the payment of contributions under this article.

Former Subd. 3 repealed and former Subd. 5 renumbered to Subd. 3 by L. 1977, Ch. 675, effective January 1, 1978.

4. Federal instrumentalities. (a) In conformity with subsection (b) of section thirty-three hundred five of the federal unemployment tax act, any instrumentality of the United States, except such as are wholly or partially owned by the United States, or exempt from tax imposed by section thirty-three hundred one of said act by virtue of any provision of law, which specifically refers to such section, or the corresponding section of prior law, in granting such exemption, shall be subject to all the provisions of this article, except as provided in section fifty-two hundred forty of the revised statutes of the United States, as amended and modified by subsection (c) of section thirty-three hundred five of said act. If in any year this state shall not be certified under section thirty-three hundred four of said act, any contributions required under this article from any such instrumentality of the United States with respect to such year, including penalty and interest collected with respect thereto, if any, shall be refunded without interest.

Paragraph (a) as amended by L. 1961, Ch. 212, effective January 1, 1962.

(b) In conformity with subsection (c) of section thirty-three hundred five of the federal unemployment tax act, the commissioner is authorized to transmit a copy of any return or report of a national banking association relative to the association`s employees, their remuneration and services, to the comptroller of the currency and to request the said comptroller of the currency to cause an examination of the correctness of such return or report to be made at the time of the next succeeding examination of such association, and thereupon to transmit to the commissioner a complete statement of his findings respecting the accuracy of such returns or reports.

(c) This subdivision applies to national banking associations and any other federal instrumentalities which would be immune from contributions required under this article without authorization by subsection (b) of section thirty-three hundred five of the federal unemployment tax act.

Subd. 6 as amended by L. 1957, Ch. 712 effective April 19, 1957. Former Subd. 4 repealed
and former Subd. 6 renumbered to Subd. 4 by L. 1977, Ch. 675 effective January 1, 1978.

5. Primary liability for contributions. Whenever one employer contracts with a second employer for any work which is part of the first employer`s usual trade, occupation, profession or enterprise, the first employer shall be liable for any contributions otherwise payable by the second employer, based upon wages paid in respect to such work, unless the second employer is free to do business with anyone who may wish to contract with him. Contributions so paid by the first employer on behalf of the second employer shall be deemed paid by the second employer. If the first employer fails to pay, on the date prescribed by the commissioner, contributions due on wages paid by the second employer, the commissioner may collect such deficiency from the second employer.

Subd. 7 added by Ch. 645 effective June 4, 1951. Former Subd. 7 renumbered to Subd. 5 by L. 1977, Ch. 675 effective January 1, 1978.

Sec. 561. Voluntary election.

1. Employer. Any employer not otherwise liable for contributions under this article as an employer may become liable therefor

(a) as of the first day of any calendar quarter, provided

(1) he files an application with the commissioner to elect coverage for at least the unexpired portion of the calendar year in which such coverage is to commence and the following calendar year;
(2) such application is filed on or before the last day of the calendar quarter in which coverage is to commence; and
(3) the commissioner approve such application in writing;

(b) as of the date on which he acquired the organization, trade or business, in whole or in part, of another employer who is liable for contributions, provided

(1) he files an application with the commissioner to elect coverage for at least the unexpired portion of the calendar year in which such acquisition occurs and the following calendar year;
(2) such application is filed within thirty days following the end of the calendar quarter in which such acquisition occurred; and
(3) the commissioner approve such application in writing.

2. Employees.(a) Services without the state. The services of a person who resides within this state but performs such services entirely without the state shall be deemed employment within the meaning of this article whenever

(1) contributions are not required with respect to such services under an unemployment compensation law of any other state or of the United States; and
(2) his employer makes application to this effect; and
(3) the commissioner approves such application in writing.

(b) Agricultural labor. All services performed in agricultural labor for an employer who is not liable for contributions pursuant to section five hundred sixty-four of this article shall be deemed employment within the meaning of this article as of the first day of any calendar quarter provided:

(1) the employer makes an election to this effect for at least the unexpired portion of the calendar year in which such election is to commence and the following calendar year,
(2) such election is filed on or before the last day of the calendar quarter in which it is to become effective, and
(3) the commissioner approves such election in writing.

(c) Services performed at a place of religious worship. The services of a person performed at a place of religious worship as a caretaker or for the performance of duties of a religious nature, or both, shall be deemed employment within the meaning of this article, if his employer makes application to this effect and the commissioner approves such application in writing.

Subd. 2 as amended by L. 1969, Ch. 554 effective May 10, 1969; further amended by
L. 1977, Ch. 675 effective January 1, 1978.

Paragraph (c) added by L. 1986, Ch. 330 effective July 17, 1986.

3. Coverage. Liability for contributions or for payments in lieu of contributions, as the case may be, shall commence as of the first day of coverage. No remuneration paid prior to the first day of coverage shall be used for the purpose of determining entitlement to benefits.

Subd. 3 (formerly Subd. 6 and Subd. 5) as renumbered by L. 1971, Ch. 1027, effective
January 1, 1971 and L. 1977, Ch. 675 effective January 1, 1978, and amended by
L. 1998, Ch. 589, effective April 1, 1999.

§561 as amended by L. 1952, ch. 728, effective April 15, 1952; further amended and
with repeal of Subd. 2(b)(2)(3), Subd. 2(c), Subd. 3, and Subd. 4 repealed by L. 1977,
Ch. 675, effective January 1, 1978.

Sec. 562. Termination of coverage.

1. Required coverage.

(a) Any employer who has once become liable for contributions under this article with respect to persons other than persons employed in personal or domestic service in private homes shall cease to be liable as of the first day of the calendar quarter next following the filing of his written application provided the commissioner finds that the employer has not with respect to such persons paid remuneration of three hundred dollars or more in any of the four calendar quarters preceding such day.

(b) Any employer who has once become liable for contributions under this article with respect to persons employed in personal or domestic service in a private home shall cease to be liable as of the first day of the calendar quarter next following the filing of his written application, provided the commissioner finds that the employer has not with respect to such persons paid remuneration in cash of five hundred dollars or more in any of the four calendar quarters preceding such day.

Subd. 1 as amended by L. 1965, Ch. 103 effective January 1, 1966.

2. Voluntary coverage. Any employer who has elected to become liable for contributions under this article may terminate such liability hereunder after the expiration of the second calendar year of his liability, as of the first day of any calendar quarter, provided he files with the commissioner a written notice of his intent to terminate liability hereunder before the first day of the calendar quarter beginning with which this liability is to terminate.

3. Non-payment of wages. Any employer who has paid no wages for employment in this state during a period of four consecutive payroll years shall cease to be an employer liable for contributions as of the end of the last of such payroll years.

Subd. 3 as amended by L. 1967, Ch. 250 effective April 10, 1967.

Subd. 4 as amended by L. 1962, Ch. 901 effective October 1, 1962. Repealed by L. 1977, Ch. 675 effective January 1, 1978.

Sec. 563. Non-profit organizations.

1. Definition. A "non-profit organization" shall mean any corporation, unincorporated association, community chest, fund, or foundation organized and operated exclusively for religious, charitable, scientific, literary or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual.

Subd. 1 as amended by L. 1971, ch. 1027, effective January 1, 1972.

(2) Exclusions. In addition to services not included pursuant to the provisions of section five hundred eleven, the term "employment" does not include services rendered for a non-profit organization by

(a) a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry, or by a member of a religious order in the exercise of duties required by such order,
(b) a lay member elected or appointed to an office within the discipline of a bona fide church and engaged in religious functions;
(c) a person employed at a place of religious worship as a caretaker or for the performance of duties of a religious nature, or both, unless voluntary election has been made pursuant to the provisions of section five hundred sixty-one of this article;
(d) a person who

(1) receives rehabilitative services in a facility conducted for the purpose of carrying out a program of rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or
(2) is given remunerative work in a facility conducted for the purpose of providing such work for persons who cannot be readily absorbed in the competitive labor market because of their impaired physical or mental capacity;

(e) an inmate of a custodial or penal institution;
(f) a person who participates in a youth service program designed to foster a commitment to community service and occupational and educational development and who, while participating in that program, performs services in the community or attends school and receives a stipend designed to cover expenses incurred in performing services or attending school, and is eligible for an award or scholarship upon leaving the program.

Subd. 2 as amended by L. 1971, Ch. 1027 effective January 1, 1972; L. 1977, Ch. 675 effective January 1, 1978; L. 1986, Ch. 330, effective July 17, 1986.

Paragraph (e) further amended and Paragraph (f) added by L. 1991, Ch. 413 effective July 17, 1991.

3. Coverage. Notwithstanding the provisions of sections five hundred sixty and five hundred sixty-two, a non-profit organization

(a) shall become liable for contributions under this article

(1) if it has paid cash remuneration of one thousand dollars or more in any calendar quarter and such liability shall commence on the first day of such quarter or
(2) if it has employed four or more persons on each of twenty days during a calendar year or the preceding calendar year, each day being in a different calendar week, and the liability shall in this event commence on the first day of the calendar year, and

(b) shall cease to be liable for contributions as of the first day of a calendar quarter next following the filing of a written application to this effect provided the commissioner finds that

(1) it has not paid cash remuneration of one thousand dollars or more in any of the four calendar quarters preceding such day and
(2) has not employed four or more persons on each of twenty days during the current or the preceding calendar year, each day being in a different week.

Subd. 3 as amended by L. 1971, Ch. 1027 effective January 1, 1972.

4. Election of payments in lieu of contributions. A non-profit organization, or a group of such organizations, liable for contributions under this article, but not subject to taxation under the federal unemployment tax act pursuant to the provisions of paragraph (8) of subsection (c) of section thirty-three hundred six of that act, may elect to become liable for payments in lieu of contributions as of the first day of any calendar year by filing with the commissioner a written notice to this effect before the beginning of such year or, if the organization was not liable in the preceding calendar year, by filing the notice not later than thirty days after the end of that calendar quarter in which the event rendering it liable occurred. The commissioner may for good cause shown extend the time for the filing of such notice.

Subd. 4 as amended by L. 1971, Ch. 1027, effective January 1, 1971.

Note: Not withstanding the provisions of subdivision 4 of section five hundred sixty three of the labor law, a non-profit organization which was liable for contribution under such law before 1969 may elect to become liable for contributions for 1971 by filing the required notice within 60 days after this act becomes law. (Signed into law on July 2, 1971.)

5. Obligations upon election.(a) A non-profit organization which is 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 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 at such times and in such manner as the commissioner may prescribe and, when paid, the employer`s account of the non-profit organization shall be discharged accordingly.

(b) If non-profit organizations elect 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.

(c) If a non-profit organization was liable for contributions under this article before nineteen hundred sixty-nine and elected payments in lieu of contributions when such election first became available under this section, the payments it is required to make shall include benefits charged on the basis of weeks of employment which began before the date on which such election took effect but shall not be greater than the sum by which a balance in its employer`s account as of such date is exceeded by the amount of benefits charged on and after that date. The balance in the employer`s account as of such date shall for the purposes of the foregoing provisions be deemed to include contributions paid on or before January thirty-first, nineteen hundred seventy-one on the basis of wages paid in the last calendar quarter of nineteen hundred seventy.

Subd. 5 as amended by L. 1971, Ch. 1027, effective January 1, 1971. Paragraph (a) as
amended by L. 1998, Ch. 589, effective April 1, 1999.

6. Termination of election.(a) A non-profit organization 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) The commissioner may cancel at any time such election of a non-profit organization which has failed to make any of the payments required hereunder within thirty days after the commissioner has notified it of the liability for and the amount of such payment. Such cancellation shall remain in force and effect until the non-profit organization files a new notice of election in accordance with the provisions of subdivision four after having satisfied conditions and requirements prescribed by the commissioner for this purpose.

(c) If such election is terminated by a non-profit organization or cancelled by the commissioner, the non-profit organization 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.

Subd. 6 as amended by L. 1971, Ch. 1027, effective January 1, 1972. Paragraph (c) as
amended by L. 1998, Ch 589, effective April 1, 1999.

7. Assessment and collection of payments in lieu of contributions. The amount of payments in lieu of contributions due hereunder 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 in which contributions due from other employers may be assessed and collected under the provisions of this article.

§563 as added by L. 1965, Ch. 740, effective July 2, 1965.

Subd. 7 as amended by L. 1971, Ch. 1027, effective July 1, 1972.

Sec. 564. Agricultural labor.

1. Coverage. (a) Notwithstanding the provisions of section five hundred sixty of this article, an employer of persons engaged in agricultural labor shall become liable for contributions under this article if the employer:

(1) has paid cash remuneration of twenty thousand dollars or more in any calendar quarter to persons employed in agricultural labor, and such liability shall commence on the first day of such quarter, or
(2) has employed in agricultural labor ten or more persons on each of twenty days during a calendar year or the preceding calendar year, each day being in a different calendar week, and the liability shall in such event commence on the first day of the calendar year, or
(3) is liable for the tax imposed under the federal unemployment tax act as an employer of agricultural labor and the liability shall in such event commence on the first day of the calendar quarter in such calendar year when he first paid remuneration for agricultural labor in this state.

(b) An employer who becomes liable for contributions under paragraph (a) of this subdivision shall cease to be liable as of the first day of a calendar quarter next following the filing of a written application provided the commissioner finds that the employer:

(1) has not paid to persons employed in agricultural labor cash remuneration of twenty thousand dollars or more in any of the eight calendar quarters preceding such day, and
(2) has not employed in agricultural labor ten or more persons on each of twenty days during the current or the preceding calendar year, each day being in a different week, and
(3) is not liable for the tax imposed under the federal unemployment tax act as an employer of agricultural labor.

2. Crew leader. Whenever a person renders services as a member of a crew which is paid and furnished by the crew leader to perform services in agricultural labor for another employer, such other employer shall, for the purpose of this article, be deemed to be the employer of such person, unless:

(a) the crew leader holds a valid certificate of registration under the federal farm labor contractor registration act of nineteen hundred sixty-three or substantially all the members of the crew operate or maintain tractors, mechanized harvesting or cropdusting machinery or any other mechanized equipment which is provided by the crew leader, and

(b) the crew leader is not an employee of such other employer and has not entered into a written agreement with such employer under which he is designated as an employee.

§564 as added by L. 1977, Ch. 675 effective January 1, 1978.

Sec. 565. Governmental entities.

1. Definition. A governmental entity shall mean the state of New York, municipal corporations and other governmental subdivision and any instrumentality of one or more of the foregoing.

2. Exclusions. In addition to services not included pursuant to the provisions of section five hundred eleven of this article, the term "employment" does not include services rendered for a governmental entity by:

(a) an elected official;
(b) a member of a legislative body or of the judiciary;
(c) a member of the state national guard or air national guard, except a person who renders such services as a regular state employee;
(d) a person serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency;
(e) a person in a major nontenured policymaking or advisory position;
(f) a person in a policymaking or advisory position, the duties of which ordinarily do not require more than eight hours per week to perform; and
(g) an inmate of a custodial or penal institution.

3. Coverage. A governmental entity 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 governmental entity or a group of such entities liable for contribution under this article may elect to become liable for payments in lieu of contributions as of the first day of any calendar year by filing with the commissioner a written notice to this effect before the beginning of such year or, if the governmental entity was not liable in the preceding calendar year, by filing the notice not later than thirty days after the end of the calendar quarter in which it first became liable. The commissioner may for good cause shown extend the time for the filing of such notice.

5. Obligation upon election.(a) A governmental entity 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 governmental entity shall be discharged accordingly.

Paragraph (a) as amended by L. 1998, Ch. 589, effective April 1, 1999.

(b) If governmental entities elect 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.

6. Termination of election. (a) A governmental entity 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) The commissioner may cancel at any time the election of a governmental entity which has failed to make any of the payments required hereunder within thirty days after the commissioner has notified it of the liability for and the amount of such payment. Such cancellation shall remain in force and effect until the governmental entity files a new notice of election in accordance with the provisions of subdivision four of this section after having satisfied conditions and requirements prescribed by the commissioner for this purpose.

(c) If such election is terminated by a governmental entity or cancelled by the commissioner, the governmental entity 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.

Paragraph (c) as amended by L. 1998, Ch. 589, effective April 1, 1999.

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

8. Assessment and collection of payments in lieu of contributions. The amount of payments in lieu of contributions due hereunder from governmental entities 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.

9. Special provisions applicable to the state. (a) In lieu of contributions, the state of New York shall pay into the fund an amount equivalent to the amount of benefits paid to claimants and charged to the account of the state of New York in accordance with the provisions of paragraph (e) of subdivision one of section five hundred eighty-one of this article.

(b) The amount of payments into the fund required shall be ascertained by the commissioner as soon as practicable after the end of each calendar year or any other shorter period and shall be payable from the general funds of the state, except if a claimant to whom benefits were paid remuneration by the state of New York during his base period from a special or administrative fund provided for by law, other than an income fund of the state university or the mental hygiene services fund, the payment into the fund shall be made from such special or administrative fund with the approval of the director of the budget. Such payments by the state shall be made at such times and in such manner as the commissioner, with the approval of the director of the budget, may determine and prescribe.

§565 as added by L. 1977, Ch. 675, effective January 1, 1978.

Sec. 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 or 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.

§566 as added by L. 2002, Ch. 102, effective June 28, 2002, and in full force and effect on and after December 21, 2000.

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