[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7577-S7578]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1679. Mr. MORAN submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

              Subtitle _--Tribal Tax and Investment Reform

     SEC. _. FINDINGS.

       The Congress finds the following:
       (1) There is a unique Federal legal and political 
     relationship between the United States and Indian tribes.
       (2) Indian tribes have the responsibility and authority to 
     provide governmental programs and services to tribal 
     citizens, develop tribal economies, and build community 
     infrastructure to ensure that Indian reservation lands serve 
     as livable, permanent homes.
       (3) The United States Constitution, U.S. Federal Court 
     decisions, Executive orders, and numerous other Federal laws 
     and regulations recognize that Indian tribes are governments, 
     retaining the inherent authority to tax and operate as other 
     governments, including (inter alia) financing projects with 
     government bonds and maintaining eligibility for general tax 
     exemptions via their government status.
       (4) Codifying tax parity with respect to tribal governments 
     is consistent with Federal treaties recognizing the 
     sovereignty of tribal governments.
       (5) That Indian tribes face historic disadvantages in 
     accessing the underlying capital to build the necessary 
     infrastructure for job creation, and that certain statutory 
     restrictions on tribal governance further inhibit tribes' 
     ability to develop strong governance and economies.
       (6) Indian tribes are sometimes excluded from the Internal 
     Revenue Code of 1986 in key provisions which results in 
     unfair tax treatment for tribal citizens or unequal 
     enforcement authority for tribal enforcement agencies.
       (7) Congress is vested with the authority to regulate 
     commerce with Indian tribes, and hereby exercises that 
     authority in a manner which furthers tribal self-governance, 
     and in doing so, further affirms the United States 
     government-to-government relationship with Indian tribes.

     SEC. _. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO 
                   BOND ISSUANCE.

       (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) Special Rules for Tax-Exempt Bonds.--In applying 
     section 146 to bonds issued by Indian tribal governments (or 
     subdivisions thereof), the Secretary shall annually--
       ``(1) establish a national bond volume cap based on the 
     greater of--
       ``(A) the State population formula approach in section 
     146(d)(1)(A) (using national tribal population estimates 
     supplied annually by the Department of the Interior in 
     consultation with the Census Bureau), and
       ``(B) the minimum State ceiling amount in section 
     146(d)(1)(B) (as adjusted in accordance with the cost of 
     living provision in section 146(d)(2)), and
       ``(2) allocate such national bond volume cap among all 
     Indian tribal governments seeking such an allocation in a 
     particular year under regulations prescribed by the 
     Secretary.''.
       (b) Repeal of Essential Governmental Function 
     Requirements.--Section 7871 of such Code is further amended 
     by striking subsections (b) and (e).
       (c) Effective Date.--
       (1) Subsection (a).--The amendment made by subsection (a) 
     shall apply to obligations issued in calendar years beginning 
     after the date of the enactment of this Act.
       (2) Subsection (b).--The repeals made by subsection (b) 
     shall apply to transactions after, and obligations issued in 
     calendar years beginning after, the date of the enactment of 
     this Act.

     SEC. _. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS 
                   MAINTAINED BY TRIBAL GOVERNMENTS.

       (a) Amendments to the Internal Revenue Code of 1986.--
       (1) Qualified public safety employee.--Section 72(t)(10)(B) 
     of the Internal Revenue Code of 1986 (defining qualified 
     public safety employee) is amended by--
       (A) striking ``or political subdivision of a State'' and 
     inserting ``, political subdivision of a State, or Indian 
     tribe''; and
       (B) striking ``such State or political subdivision'' and 
     inserting ``such State, political subdivision, or tribe''.
       (2) Governmental plan.--The last sentence of section 414(d) 
     of such Code (defining governmental plan) is amended to read 
     as follows: ``The term `governmental plan' includes a plan 
     established or maintained for its employees by an Indian 
     tribal government (as defined in section 7701(a)(40)), a 
     subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d)), an agency, instrumentality, 
     or subdivision of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law which is 
     wholly owned or controlled by any of the foregoing.''.
       (3) Domestic relations order.--Section 414(p)(1)(B)(ii) of 
     such Code (defining domestic relations order) is amended by 
     inserting ``or tribal'' after ``State''.
       (4) Exempt governmental deferred compensation plan.--
     Section 3121(v)(3) of such Code (defining governmental 
     deferred compensation plan) is amended by inserting ``by an 
     Indian tribal government or subdivision thereof,'' after 
     ``political subdivision thereof,''.
       (5) Grandfather of certain deferred compensation plans.--
     Section 457 of such Code is amended by adding at the end the 
     following new subsection:
       ``(h) Certain Tribal Government Plans Grandfathered.--Plans 
     established before the date of enactment of this subsection 
     and maintained by an Indian tribal government (as defined in 
     section 7701(a)(40)), a subdivision of an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency, instrumentality, or subdivision of an Indian 
     tribal government, or an entity established under Federal, 
     State, or tribal law which is wholly owned or controlled by 
     any of the foregoing, in compliance with subsection (b) or 
     (f) shall be treated as if established by an eligible 
     employer under subsection (e)(1)(A).''.
       (b) Amendments to the Employee Retirement Income Security 
     Act of 1974.--
       (1) In general.--The last sentence of section 3(32) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(32)) is amended to read as follows: ``The term 
     `governmental plan' includes a plan established or maintained 
     for its employees by an Indian tribal government (as defined 
     in section 7701(a)(40) of the Internal Revenue Code of 1986), 
     a subdivision of an Indian tribal government (determined in 
     accordance with section 7871(d) of such Code), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (2) Domestic relations order.--Section 206(d)(3)(B)(ii)(II) 
     of such Act (29 U.S.C. 1056(d)(3)(B)(ii)(II)) is amended by 
     inserting ``or tribal'' after ``State''.
       (3) Conforming amendments.--
       (A) Section 4021(b) of such Act (29 U.S.C. 1321(b)) is 
     amended by striking ``or'' at the end of paragraph (12), by 
     striking the period at the end of paragraph (13) and 
     inserting ``; or'', and by inserting after paragraph (13) the 
     following new paragraph:
       ``(14) established or maintained for its employees by an 
     Indian tribal government (as defined in section 7701(a)(40) 
     of the Internal Revenue Code of 1986), a subdivision of an 
     Indian tribal government (determined in accordance with 
     section 7871(d) of such Code), an agency, instrumentality, or 
     subdivision of an Indian tribal government, or an entity 
     established under Federal, State, or tribal law which is 
     wholly owned or controlled by any of the foregoing.''.

[[Page S7578]]

       (B) Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2)) 
     is amended by striking ``, or which is described in the last 
     sentence of section 3(32)'' and inserting a comma.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after the date of the 
     enactment of this Act.

     SEC. _. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE 
                   CHARITIES FUNDED AND CONTROLLED BY OTHER 
                   GOVERNMENTAL FUNDERS AND SPONSORS.

       (a) In General.--Section 170(b)(1)(A) of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following: ``For purposes of clause (vi), the term 
     `governmental unit' includes an Indian tribal government 
     (determined in accordance with section 7871(d)), an agency, 
     instrumentality, or subdivision of an Indian tribal 
     government, or an entity established under Federal, State, or 
     tribal law which is wholly owned or controlled by any of the 
     foregoing.''.
       (b) Certain Supporting Organizations.--Section 509(a) of 
     such Code is amended by adding at the end the following: 
     ``For purposes of paragraph (3), an organization described in 
     paragraph (2) shall be deemed to include an Indian tribal 
     government (determined in accordance with section 7871(d)), 
     an agency, instrumentality, or subdivision of an Indian 
     tribal government, or an entity established under Federal, 
     State, or tribal law which is wholly owned or controlled by 
     any of the foregoing.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. _. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF 
                   DETERMINING UNDER THE ADOPTION CREDIT WHETHER A 
                   CHILD HAS SPECIAL NEEDS.

       (a) In General.--Section 23(d)(3) of the Internal Revenue 
     Code of 1986 (defining child with special needs) is amended--
       (1) in subparagraph (A), by inserting ``or Indian tribal 
     government'' after ``a State''; and
       (2) in subparagraph (B), by inserting ``or Indian tribal 
     government'' after ``such State''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______