[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1526 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1526

To amend the Internal Revenue Code of 1986 to provide for the treatment 
   of Indian tribal governments as State governments for purposes of 
     issuing tax-exempt governmental bonds, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 31 (legislative day, July 21), 2003

  Mr. Campbell (for himself and Mr. Inouye) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for the treatment 
   of Indian tribal governments as State governments for purposes of 
     issuing tax-exempt governmental bonds, 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 maybe cited as the ``Tribal Government Tax-Exempt Bond 
Fairness Act of 2003''.

SEC. 2. DECLARATIONS AND AFFIRMATIONS.

     Congress declares and affirms that--
            (1) The United States Constitution, United States Federal 
        court decisions, and United States statutes recognize that 
        Indian tribes are governments, retaining sovereign authority 
        over their lands.
            (2) Through treaties, statutes, and Executive orders, the 
        United States set aside Indian reservations to be used as 
        ``permanent homelands'' for Indian tribes.
            (3) As governments, Indian tribes have the responsibility 
        and authority to provide governmental services, develop tribal 
        economies, and build community infrastructure to ensure that 
        Indian reservation lands serve as livable ``permanent 
        homelands''.
            (4) Congress is vested with the authority to regulate 
        commerce with Indian tribes, and hereby exercises that 
        authority and affirms the United States government-to-
        government relationship with Indian tribes.

SEC. 3. MODIFICATIONS OF AUTHORITY OF INDIAN TRIBAL GOVERNMENTS TO 
              ISSUE TAX-EXEMPT BONDS.

    (a) In General.--Subsection (c) of section 7871 of the Internal 
Revenue Code of 1986 (relating to Indian tribal governments treated as 
States for certain purposes) is amended to read as follows:
    ``(c) Additional Requirements for Tax-Exempt Bonds.--
            ``(1) In general.--Subsection (a) of section 103 shall 
        apply to any obligation issued by an Indian tribal government 
        (or subdivision thereof) only if--
                    ``(A) such obligation is part of an issue 95 
                percent or more of the net proceeds of which are to be 
                used to finance any facility located on an Indian 
                reservation, or
                    ``(B) such obligation is part of an issue 
                substantially all of the proceeds of which are to be 
                used in the exercise of any essential governmental 
                function.
            ``(2) Exclusion of gaming.--An obligation described in 
        subparagraph (A) or (B) of paragraph (1) may not be used to 
        finance any portion of a building in which class II or III 
        gaming (as defined in section 4 of the Indian Gaming Regulatory 
        Act (25 U.S.C. 2702)) is conducted or housed.
            ``(3) Definitions.--For purposes of this subsection--
                    ``(A) Indian tribe.--The term `Indian tribe' means 
                any Indian tribe, band, nation, pueblo, or other 
                organized group or community, including any Alaska 
                Native village, or regional or village corporation, as 
                defined in or established pursuant to the Alaska Native 
                Claims Settlement Act (43 U.S.C. 1601 et seq.), which 
                is recognized as eligible for the special programs and 
                services provided by the United States to Indians 
                because of their status as Indians.
                    ``(B) Indian reservation.--The term `Indian 
                reservation' means--
                            ``(i) a reservation, as defined in section 
                        4(10) of the Indian Child Welfare Act of 1978 
                        (25 U.S.C. 1903(10)), and
                            ``(ii) lands held under the provisions of 
                        the Alaska Native Claims Settlement Act (43 
                        U.S.C. 1601 et seq.) by a Native corporation as 
                        defined in section 3(m) of such Act (43 U.S.C. 
                        1602(m)).''.

SEC. 4. EXEMPTION FROM REGISTRATION REQUIREMENTS.

    The first sentence of section 3(a)(2) of the Securities Act of 1933 
(15 U.S.C. 77c(a)(2)) is amended by inserting ``or by any Indian tribal 
government or subdivision thereof (within the meaning of section 7871 
of the Internal Revenue Code of 1986),'' after ``or Territories,''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act shall apply to obligations issued 
after the date of the enactment of this Act.
                                 <all>