[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 615 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 615

To encourage Indian economic development, to provide for a framework to 
  encourage and facilitate intergovernmental tax agreements, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 1999

 Mr. Campbell introduced the following bill; which was read twice and 
              referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
To encourage Indian economic development, to provide for a framework to 
  encourage and facilitate intergovernmental tax agreements, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Intergovernmental Tax Agreement Act 
of 1999''.

SEC. 2. FINDINGS; PURPOSES.

    (a) Findings.--Congress finds that--
            (1) Indian tribal governments exercise governmental 
        authority and powers over persons and activities that occur on 
        Indian lands;
            (2) a dual State-tribal tax burden on transactions by 
        Indian tribes and members of Indian tribes with non-Indian 
        persons and entities undermines the ability of Indian tribes to 
        finance governmental functions and programs of those Indian 
        tribes;
            (3) the apportionment of taxes from commercial activities 
        occurring on Indian lands should take into account the 
        government services provided by the State and the Indian tribe 
        involved to members of that Indian tribe and other individuals 
        residing on those lands;
            (4) the governments of Indian tribes and States have 
        negotiated and entered into more than 200 tax compacts, and 
        those compacts cover a variety of commodities and retail taxes;
            (5) in cases in which a tax compact between an Indian tribe 
        and a State is not in effect, conflicts between the State and 
        Indian tribe may require the active involvement of the United 
        States in the role of the United States as a trustee for the 
        Indian tribe;
            (6) alternative dispute resolution--
                    (A) has been used to resolve successfully disputes 
                in the public and private sectors;
                    (B) results in expedited decisionmaking; and
                    (C) is less costly and less contentious than 
                litigation; and
            (7) it is necessary to facilitate intergovernmental 
        agreements between Indian tribes and States and political 
        subdivisions thereof.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To strengthen the economies of Indian tribes.
            (2) To encourage and facilitate tax agreements between the 
        governments of Indian tribes and State governments.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Compact.--The term ``compact'' means a written 
        agreement between a State and an Indian tribe concerning the 
        collection and remittance of--
                    (A) applicable State taxes on retail commercial 
                transactions involving non-Indians on Indian lands of 
                that Indian tribe; or
                    (B) covered tribal equivalency taxes.
            (2) Covered tribal equivalency tax.--The term ``covered 
        tribal equivalency tax'' means a tribal equivalency tax--
                    (A) with a rate that is equal to or greater than 
                the rate of an applicable State sales or excise tax for 
                transactions for which the tax is imposed; and
                    (B)(i) that is used to--
                            (I) fund tribal government operations or 
                        programs;
                            (II) provide for the general welfare of the 
                        Indian tribe and the members of that Indian 
                        tribe;
                            (III) promote the economic development of 
                        that Indian tribe; or
                            (IV) assist in funding operations of local 
                        governmental agencies; or
                    (ii) that is a fuel or highway tax, with respect to 
                which the revenues derived from the tax are used only 
                for highway and transportation purposes.
            (3) Indian lands.--The term ``Indian lands'' means, with 
        respect to an Indian tribe--
                    (A) lands within the reservation of that Indian 
                tribe; and
                    (B) other lands over which the Indian tribe 
                exercises governmental jurisdiction.
            (4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (5) Non-indian.--The term ``non-Indian'' means a person who 
        is not--
                    (A) an Indian tribe;
                    (B) comprised of members of an Indian tribe; or
                    (C) a member of an Indian tribe.
            (6) Panel.--The term ``Panel'' means the Intergovernmental 
        Dispute Resolution Panel established under section 5.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) State.--The term ``State'' means each of the 50 States.
            (9) Tribal equivalency tax.--The term ``tribal equivalency 
        tax'' means a tax that--
                    (A) is imposed by the tribal government of an 
                Indian tribe on retail commercial transactions that 
                involve non-Indians on Indian lands within the 
                jurisdiction of that Indian tribe; and
                    (B) is in addition to any State tax that may be 
                imposed.

SEC. 4. INTERGOVERNMENTAL TAX AGREEMENTS.

    (a) In General.--The consent of the United States is granted to 
States and Indian tribes to enter into compacts and agreements in 
accordance with this Act.
    (b) Compact Negotiations.--An Indian tribe may request the 
Secretary to initiate negotiations on the part of that Indian tribe 
with a State for the purpose of entering into a tax compact under this 
section. A State may request the Secretary to initiate negotiations 
between an Indian tribe and the State to enter into such a tax compact.
    (c) Notification.--The Secretary shall notify each affected Indian 
tribe or State of any request made under subsection (b).
    (d) Requirements for Request for Initiation of Negotiations.--
            (1) Written request.--A request by an Indian tribe or State 
        under subsection (a) shall be in writing.
            (2) Response.--Not later than 30 days after receiving a 
        request referred to in paragraph (1), the Secretary shall issue 
        a written response to the Indian tribe or State that submitted 
        the request.
    (e) Commencement of Negotiations; Completion of Negotiations.--
            (1) Commencement of negotiations.--Not later than 30 days 
        after the date specified in subsection (d), the Secretary shall 
        commence negotiations with respect to the tax compact that is 
        the subject of the request submitted by the Indian tribe or 
        State.
            (2) Completion of negotiations.--Not later than 120 days 
        after the commencement of the negotiations under paragraph (1), 
        the parties shall complete the negotiations, unless the parties 
        agree to an extension of the period of time for completion of 
        the negotiations.
    (f) Mediation.--The Secretary shall initiate a mediation process, 
with the goal of achieving a tax compact, if--
            (1) by the date specified in subsection (e)(1), the party 
        that was requested to enter into negotiations, failed to 
        respond to that request; or
            (2) upon the completion of an applicable period for 
        negotiations, as determined under subsection (e)(2), the 
        parties have failed to execute a compact.

SEC. 5. INTERGOVERNMENTAL DISPUTE RESOLUTION PANEL.

    (a) Establishment.--There is established the Intergovernmental 
Dispute Resolution Panel.
    (b) Membership of the Panel.--
            (1) In general.--The Panel shall consist of--
                    (A) 1 representative from the Department of the 
                Interior;
                    (B) 1 representative from the Department of 
                Justice;
                    (C) 1 representative from the Department of the 
                Treasury;
                    (D) 1 representative of State governments; and
                    (E) 1 representative of tribal governments of 
                Indian tribes.
            (2) Chairperson.--The members of the Panel shall select a 
        Chairperson from among the members of the Panel.
    (c) Duties of Panel.--To the extent allowable by law, the Panel may 
consider and render a decision on the following:
            (1) If negotiations and mediation conducted under section 4 
        do not result in the execution of a compact, a dispute between 
        the State and Indian tribe that is referred to the Panel at the 
        discretion of the Secretary.
            (2) Any claim involving the legitimacy of a claim for the 
        collection or payment of retail taxes claimed by a State with 
        respect to transactions conducted on Indian lands (including 
        counterclaims, setoffs, or related claims submitted or filed by 
        an Indian tribe in question regarding an original claim 
        involving that Indian tribe).
    (d) Federal Mediation Conciliation Service.--
            (1) In general.--In a manner consistent with this Act, the 
        Panel shall consult with the Federal Mediation Conciliation 
        Service (referred to in this subsection as the ``Service'') 
        established under section 202 of the National Labor Relations 
        Act (29 U.S.C. 172).
            (2) Duties of service.--The Service shall, upon request of 
        the Panel and in a manner consistent with applicable law, 
        provide services to the Panel to aid in resolving disputes 
        brought before the Panel.

SEC. 6. JUDICIAL ENFORCEMENT.

    (a) In General.--Except as provided in subsections (b) and (c), the 
district courts of the United States shall have original jurisdiction 
with respect to--
            (1) the enforcement of any compact entered into under this 
        Act; and
            (2) any civil action, claim, counterclaim, or setoff, 
        brought by any party with respect to a compact entered into 
        under this Act to secure equitable relief, including injunctive 
        and declaratory relief.
    (b) Damages.--No action to recover damages arising out of or in 
connection with an agreement or compact entered into under this Act may 
be brought, except as specifically provided for in that agreement or 
compact.
    (c) Consent to Suit.--Each compact entered into under this Act 
shall specify that each party to the compact--
            (1) consents to litigation to enforce the compact; and
            (2) to the extent necessary to enforce that compact, waives 
        any defense of sovereign immunity.
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