Murie. Bowser
Mayor
The Honorable Phil Mendelson
Chairman, Councilof the District of Columbia.
John A. Wilson Building
1350 Pennsylvania Avenue, NW
Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Council is the "Unemployment Compensation
Employer Classification Amendment Act of 2019."
This legislation is technical in nature and would bring the District law into compliance with state
law requirements set out in the Federal Unemployment Tax Act (68A Stat. 439; 26 U.S.C.
3301 er seq.) Specifically, the legislation amends the District of Columbia Unemployment
Compensation Act to expand the definition of employment to include service in the employ of
states (or any political subdivision therein), federally recognized Native American tribes, and
certain instrumentalities of one or more of those entities. This legislation would also permit
government entities and instrumentalities the ability to make payments into the District
Unemployment Fund, in lieuofcontributions otherwise required under the DC Unemployment
Compensation Act.
L urge the Council to take prompt and favorable action on the enclosed resolution. Please do not
hesitate to contact me or DOES Director Dr. Unique Morris-Hughes should you require
additional information.
Sincerely,
Secoudsnseene
at the request of the Mayor
ABILL
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
ul
12
13,
14 To amend the District of Columbia Unemployment Compensation Act to clarify and expand the
15 classification of employers required to participate in the Districts unemployment
16 compensation system to include States and federally-recognized Indian tribes or any
7 instrumentality of one or moreofthe aforementioned entities which is wholly-owned by
18 one or moreofthe aforementioned entities, and educational, charitable, or religious
19 organizations; and to allow and determine the rateofalternative unemployment
20 compensation contributions by a government entity or instrumentality.
21
22 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this,
23 act may be cited as the Unemployment Compensation Employer Classification Amendment Act
24 of 2019,
25 Sec. 2. The District of Columbia Unemployment Compensation Act, approved August
26 28, 1935 (49 Stat 946; D.C. Official Code 51-101 ef seq.), is amended as follows:
27 (a) Section 2(A) (D.C. Official Code 51-101(2)(A)) is amended as follows:
28 (1) Sub-subparagraph (ii) is amended to read as follows:
29 Gi) Service performed after December 31, 1977, in the employofthe
30 District, any State or political subdivision thereof, an Indian tribe, or any instrumentalityofone
31 or more of the foregoing which is wholly owned by the District, one or more States or political
32 subdivisions thereof, or an Indian tribe; and any service performed in the employ ofany
33 instrumentality of one or more States or political subdivisions thereof
to the extent that the
instrumentality is, with respect to such service, immune under the Constitutionof the United
35 States from the tax imposed by section 3301 of the Federal Unemployment Tax Act, approved
36 August 16, 1954 (68A Stat. 439; 26 U.S.C. 3301)); except as provided in paragraph (2)(A)(iv)
37 of this section and sections 3304(6)(A) and 3309(b) of the Federal Unemployment Tax Act (26
38 U.S.C. 3304(6)(A) and 3309(b))..
39 (2) Sub-subparagraph (iii) is amended to read as follows:
40 (ii) Service performed after March 30, 1962, in the employ ofan
41 educational organization, and service performed after December 31, 1971, in the employ ofa
2 religious, charitable, or other organization described in section 501(c)(3) of the Internal Revenue
4B Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. 501(c)(3)), which is
44 exempt from income tax under section 501(a) of that Act (26 U. 501(a)), except as
45 provided in paragraph (2)(A)(iv)ofthis section and sections 3304(6)(A) and 3309(b)ofthe
46 Federal Unemployment Tax Act (26 U.S.C. 3304(6)(A) and 3309(b)).
47 (b) Section 3() (D.C. Official Code 51-103(f)) is amended to read as follows:
48 (O(1)(i) Ifthe District elects to cover employees under this act under the provisions of
49 section 1(2)(H)(j), or if anyofits instrumentalities are required to be covered under this act, in
50 lieuof contributions required of employers under this act, the District shall pay into the Fund an
51 amount equivalent to the amount of benefits paid to individuals based on wages paid by the
52 District.
33 (ii) In lieu of contributions required of employers under this act, a
54 government entity or instrumentality that would otherwise be liable for contributions pursuant to
55 section 1(2)(A)(ii) may pay into the Fund an amount equivalent to the amount of benefits paid to
56 individuals based on wages paid by the government entity or instrumentality.
37 (iii) If benefits paid to an individual are based on wages paid by the
58 District of Columbia, or another government entity or instrumentality, and one or more other
39 employers, the amount payable by the District or other government entity or instrumentality to
60 the Fund shall bear the same ratio to total benefits paid to the individual as the base-period wages
61 paid to the individual by the District or other government entity or instrumentality bears to the
62 total amount of the base-period wages paid to the individual by all of his base-period employers.
63 (2) The amountofpayment required under this subsection shall be ascertained
64 by the Director quarterly, and with respect to the District, shall be paid from the general funds of
65 the District at such time and in such manner as the Mayor may prescribe except that to the extent
66 that benefits are paid on wages paid by the District from special administrative funds, the
67 payment by the District into the Unemployment Fund shall be made from such special funds.
68 The District shall be liable only for 50%ofany extended benefits paid.
69 (3) After December 31, 1977, the District or any government entity or
70 instrumentality liable for contributions pursuant to section 1(2)(A)(ii) shall be provided the
a optionoffinancing the costs of benefits paid to its employees by electing to pay contributions
2 under the provisions of subsection (c)ofthis section or by electing to become liable for
B payments in lieu of contributions under the same terms and conditions provided for nonprofit
4 organizations in subsection (h) of this section, except as provided in the following sentence. For
5 weeks of unemployment beginning January 1, 1979, and thereafter, the District or any
16 government entity or instrumentality liable for contributions pursuant to section 1(2)(A)(ii) shall
1 be chargeableif it elects to pay contributions, or shall be liable if it elects to make payments in
B lieu of contributions, for the cost of regular benefits plus 100%ofany extended benefits paid that
19 are attributable to service in the employ of the District or respective governmental entity or
80 instrumentality..
81 Sec. 4. Fiscal impact statement.
82 The Council adopts the fiscal impact statement of the ChiefFinancial Officer as the
83 fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975,
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code 1-301.47a).
85 Sec. 5. Effective date.
86 This act shall take effect following approval by the Mayor (or in the event of veto by
87 the Mayor, action by the Council to override the veto), a 30-day period of congressional review
88 as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
89 24, 1973 (87 Stat. 813; D.C. Official Code 1-206.02(c)(1)), and publication in the District of
90 Columbia Register.
 Government of the District of Columbia
Office of the Chief Financial Officer
x koe
Sea
En
Jeffrey S, Dewitt
Chief Financial Officer
MEMORANDUM
TO: The Honorable Phil Mendelson
Chairman, Council of the District of Columbia
FROM: Jeffrey S. Dewitt
Chief Financial Officer
DATE: September 19, 2019
SUBJECT: Fiscal Impact Statement - Unemployment Compensation Employer
Classification Amendment Act of 2019
REFERENCE: Draft Bill as shared with the Office of Revenue Analysis on September
11,2019
Conclusion
Funds are sufficient in the fiscal year 2020 through fiscal year 2023 budget and financial plan to
implement the bill.
Background
The bill makes amendments to the District of Columbia Unemployment Compensation Act to bring
the District law into compliance with requirements set out in the Federal Unemployment Tax Act.
Specifically, the bill expands the definition of employment to include service of individuals working
for states, their instrumentalities, and Native American tribes. The amendments cover provisions of
the unemployment insurance program concerning the District government, instrumentalities of the
District, and nonprofit organizations that allow such employers to reimburse the unemployment
insurance program for benefits paid to former employees.
Financial Plan Impact
Funds are sufficient in the fiscal year 2020 through fiscal year 2023 budget and financial plan to
implement the bill. The District Government already participates in the unemployment insurance
+ Approved August 28, 1935 (49 Stat 946; D.C. Official Code 51-101 et seq.)
1350 Pennsylvania Avenue, NW, Suite 203, Washington, DC 20004 (202)727-2476
www.cfo.de-gov
The Honorable Phil Mendelson
Fis: "Unemployment insurance Employer Classification Amendment
Act of2019, Draft Bll as shared with
the Office of Revenue Analysis on September 11, 2019
program as a reimbursable employerand the bill will not change current practice or the finances of
the Unemployment Insurance Trust Fund.
 GOVERNMENT OF THE DISTRICT OF COLUMBIA.
Office of the Attorney General
wk
ATTORNEY GENERAL Pees aS]
Kari A. RACINE aa
Legal Counsel Di
MEMORANDUM
TO: Alana Intrieri
Executive Director
Office of Policy & Legislative Affairs
FROM: Brian K. Flowers
DeputyAttorney General
Legal Counsel Division
DATE: September 20, 2019
SUBJECT: Legal Sufficiency Review of Proposed Legislation, Unemployment
Compensation Employer Classification Amendment Actof 2019
(AE-19-588)
This is to Certify that this omtice nas reviewed the above-
referenced proposed bill and found it to be legally sufficient. If you have any questions in
this regard, please do not hesitate to call me at 724-5565.
BE A
Brian K. Flowers.