[Congressional Record (Bound Edition), Volume 160 (2014), Part 10]
[House]
[Pages 14834-14838]
[From the U.S. Government Publishing Office, www.gpo.gov]




              TRIBAL GENERAL WELFARE EXCLUSION ACT OF 2013

  Mr. NUNES. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3043) to amend the Internal Revenue Code of 1986 to clarify the 
treatment of general welfare benefits provided by Indian tribes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3043

       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 ``Tribal General Welfare 
     Exclusion Act of 2013''.

     SEC. 2. INDIAN GENERAL WELFARE BENEFITS.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     before section 140 the following new section:

     ``SEC. 139E. INDIAN GENERAL WELFARE BENEFITS.

       ``(a) In General.--Gross income does not include the value 
     of any Indian general welfare benefit.
       ``(b) Indian General Welfare Benefit.--For purposes of this 
     section, the term `Indian general welfare benefit' includes 
     any payment made or services provided to or on behalf of a 
     member of an Indian tribe (or any spouse or dependent of such 
     a member) pursuant to an Indian tribal government program, 
     but only if--
       ``(1) the program is administered under specified 
     guidelines and does not discriminate in favor of members of 
     the governing body of the tribe, and
       ``(2) the benefits provided under such program--
       ``(A) are available to any tribal member who meets such 
     guidelines,
       ``(B) are for the promotion of general welfare,
       ``(C) are not lavish or extravagant, and
       ``(D) are not compensation for services.
       ``(c) Definitions and Special Rules.--For purposes of this 
     section--
       ``(1) Indian tribal government.--For purposes of this 
     section, the term `Indian tribal government' includes any 
     agencies or instrumentalities of an Indian tribal government 
     and any Alaska Native regional or village corporation, as 
     defined in, or established pursuant to, the Alaska Native 
     Claims Settlement Act (43 U.S.C. 1601, et seq.).
       ``(2) Dependent.--The term `dependent' has the meaning 
     given such term by section 152, determined without regard to 
     subsections (b)(1), (b)(2), and (d)(1)(B).
       ``(3) Lavish or extravagant.--The Secretary shall, in 
     consultation with the Tribal Advisory Committee (as 
     established under section 3(a) of the Tribal General Welfare 
     Exclusion Act of 2013), establish guidelines for what 
     constitutes lavish or extravagant benefits with respect to 
     Indian tribal government programs.
       ``(4) Establishment of tribal government program.--A 
     program shall not fail to be treated as an Indian tribal 
     government program solely by reason of the program being 
     established by tribal custom or government practice.
       ``(5) Ceremonial activities.--Any items of cultural 
     significance, reimbursement of costs, or cash honorarium for 
     participation in cultural or ceremonial activities for the 
     transmission of tribal culture shall not be treated as 
     compensation for services.''.

[[Page 14835]]

       (b) Conforming Amendment.--The table of sections for part 
     III of subchapter B of chapter 1 of such Code is amended by 
     inserting before the item relating to section 140 the 
     following new item:

``Sec. 139E. Indian general welfare benefits.''.
       (c) Statutory Construction.--Ambiguities in section 139E of 
     such Code, as added by this Act, shall be resolved in favor 
     of Indian tribal governments and deference shall be given to 
     Indian tribal governments for the programs administered and 
     authorized by the tribe to benefit the general welfare of the 
     tribal community.
       (d) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years for which the period of limitation on 
     refund or credit under section 6511 of the Internal Revenue 
     Code of 1986 has not expired.
       (2) One-year waiver of statute of limitations.--If the 
     period of limitation on a credit or refund resulting from the 
     amendments made by subsection (a) expires before the end of 
     the 1-year period beginning on the date of the enactment of 
     this Act, refund or credit of such overpayment (to the extent 
     attributable to such amendments) may, nevertheless, be made 
     or allowed if claim therefor is filed before the close of 
     such 1-year period.

     SEC. 3. TRIBAL ADVISORY COMMITTEE.

       (a) Establishment.--The Secretary of the Treasury shall 
     establish a Tribal Advisory Committee (hereinafter in this 
     subsection referred to as the ``Committee'').
       (b) Duties.--
       (1) Implementation.--The Committee shall advise the 
     Secretary on matters relating to the taxation of Indians.
       (2) Education and training.--The Secretary shall, in 
     consultation with the Committee, establish and require--
       (A) training and education for internal revenue field 
     agents who administer and enforce internal revenue laws with 
     respect to Indian tribes on Federal Indian law and the 
     Federal Government's unique legal treaty and trust 
     relationship with Indian tribal governments, and
       (B) training of such internal revenue field agents, and 
     provision of training and technical assistance to tribal 
     financial officers, about implementation of this Act and the 
     amendments made thereby.
       (c) Membership.--
       (1) In general.--The Committee shall be composed of 7 
     members appointed as follows:
       (A) Three members appointed by the Secretary of the 
     Treasury.
       (B) One member appointed by the Chairman, and one member 
     appointed by the Ranking Member, of the Committee on Ways and 
     Means of the House of Representatives.
       (C) One member appointed by the Chairman, and one member 
     appointed by the Ranking Member, of the Committee on Finance 
     of the Senate.
       (2) Term.--
       (A) In general.--Except as provided in subparagraph (B), 
     each member's term shall be 4 years.
       (B) Initial staggering.--The first appointments made by the 
     Secretary under paragraph (1)(A) shall be for a term of 2 
     years.

     SEC. 4. OTHER RELIEF FOR INDIAN TRIBES.

       (a) Temporary Suspension of Examinations.--The Secretary of 
     the Treasury shall suspend all audits and examinations of 
     Indian tribal governments and members of Indian tribes (or 
     any spouse or dependent of such a member), to the extent such 
     an audit or examination relates to the exclusion of a payment 
     or benefit from an Indian tribal government under the general 
     welfare exclusion, until the education and training 
     prescribed by section 3(b)(2) of this Act is completed. The 
     running of any period of limitations under section 6501 of 
     the Internal Revenue Code of 1986 with respect to Indian 
     tribal governments and members of Indian tribes shall be 
     suspended during the period during which audits and 
     examinations are suspended under the preceding sentence.
       (b) Waiver of Penalties and Interest.--The Secretary of the 
     Treasury may waive any interest and penalties imposed under 
     such Code on any Indian tribal government or member of an 
     Indian tribe (or any spouse or dependent of such a member) to 
     the extent such interest and penalties relate to excluding a 
     payment or benefit from gross income under the general 
     welfare exclusion.
       (c) Definitions.--For purposes of this subsection--
       (1) Indian tribal government.--The term ``Indian tribal 
     government'' shall have the meaning given such term by 
     section 139E of such Code, as added by this Act.
       (2) Indian tribe.--The term ``Indian tribe'' shall have the 
     meaning given such term by section 45A(c)(6) of such Code.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Nunes) and the gentleman from Michigan (Mr. Levin) each 
will control 20 minutes.
  The Chair recognizes the gentleman from California.


                             General Leave

  Mr. NUNES. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
to include extraneous material on the subject of the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. NUNES. Mr. Speaker, I yield myself such time as I may consume.
  I rise today in support of the Tribal General Welfare Exclusion Act.
  This bill would clarify the Tax Code so that spending by Native 
American tribes on health care, housing, education, care for the 
elderly and disabled, and other programs for the good of the tribe will 
be excluded from taxes.
  These programs were traditionally tax-exempt, but in recent years the 
IRS has informally reinterpreted the rules in order to tax more and 
more of these programs. Simultaneously, the agency has subjected tribes 
to expensive and intrusive audits.
  With their unique history of tribal sovereignty, Native Americans 
should not be subjected to arbitrary tax enforcement. This bill would 
put tribes on par with State and local governments and would end 
unwarranted intrusions into tribal self-government. It is broadly 
supported across the country and was actually given a zero score by the 
Joint Tax Committee.
  Thus, I urge my colleagues to support the Tribal General Welfare 
Exclusion Act, and I will be submitting a more detailed statement for 
the Record that will provide clarity, context, and congressional intent 
for this legislation.
  Mr. Speaker, considering a committee report will not accompany H.R. 
3043, which is being considered by the House today, I take this 
opportunity as the author of the legislation to provide some context 
and congressional intent.
  Under current law, taxpayers must generally include all items of 
income in computing gross income. Internal Revenue Service (IRS) 
guidance has established a general welfare exclusion under which 
payments made to individuals by governmental entities pursuant to 
legislatively provided social benefit programs for the promotion of the 
general welfare are not included in the recipient's gross income. To 
qualify under the general welfare exclusion, payment (1) must be made 
under a government program; (2) must be made for the promotion of 
general welfare; and (3) must not be made as compensation for services.
  In evaluating Indian tribal government programs under the general 
welfare exclusion, including the second prong of this test (``for the 
promotion of general welfare''), the IRS has frequently insisted that 
tribal benefits be based on individualized determinations of financial 
need. This stipulation prevents the general welfare exclusion from 
covering programs designed to provide substantially equal benefits to 
all qualifying members of a tribe or to provide benefits based on 
determinations of needs that are not financial in nature. These needs 
would include health coverage programs, education and cultural 
programs, elder programs, and housing programs.
  Under IRS guidance released in June 2014, however, the IRS will 
conclusively presume that payments from Indian tribes to tribal members 
and their spouses and dependents will qualify under the general welfare 
exclusion without a determination of need if certain requirements are 
met. Under Revenue Procedure 2014-35, the payments (1) must be made 
pursuant to a specific Indian tribal government program with written 
guidelines; (2) must not discriminate in favor of the tribe's governing 
body and be made available to all qualifying members of the tribe; (3) 
must not be compensation for services; and (4) must not be lavish or 
extravagant. In addition, only certain types of programs that meet the 
procedural requirements will qualify for the conclusive presumption. 
The Revenue Procedure lists 23 such non-exclusive qualifying programs 
covering housing, education, elder care, health care, culture, and 
other welfare projects. Taxpayers may apply the rules retroactively to 
file for refunds for any open tax years.
  The provisions in H.R. 3043 would codify this IRS guidance, 
specifically applying the general welfare exclusion to Indian tribes 
and payments received by tribal members, their spouses and children. 
The bill mandates that tribal government benefits would qualify for 
exclusion under the general welfare doctrine so long as the benefits 
(1) are provided pursuant to a specific Indian tribal government 
program; (2) are available to all tribal members (including spouses and 
dependents) who meet the government program's guidelines; (3) are not 
lavish or extravagant; and (4) are not compensation for services.

[[Page 14836]]

  The provisions in H.R. 3043 also require that the tribal program be 
``for the promotion of general welfare,'' but would not limit its 
application through conclusive presumption to specific types or 
examples of tribal programs. I expect that the IRS will apply this 
requirement in a manner that is no less favorable than the safe harbor 
approach in Revenue Procedure 2014-35, and that the IRS will not 
interpret the statute as requiring individualized determinations of 
financial need where a tribal government has established a program 
consistent with the statute. In construing the individual statutory 
requirements, including a determination of whether a program is ``for 
the promotion of general welfare'', it is expected that the IRS will 
develop regulations that are no less favorable to tribes than Revenue 
Procedure 2014-35, including no limitation of a tribe's ability to 
address community needs and to make benefits available to all eligible 
tribal members. This is based on the legislative purpose of the bill as 
well as the specific statutory construction provision in Section 2 (c) 
of the bill, which states that ``deference shall be given to Indian 
tribal governments for the programs administered and authorized by the 
tribe to benefit the general welfare of the tribal community.''
  Provisions in H.R. 3043 also would require the Treasury Department to 
(1) establish a Tribal Advisory Committee to advise the IRS and 
Treasury on matters relating to taxation of Indians; (2) establish and 
provide training and education for IRS agents and tribal financial 
officers about the new provisions; and (3) suspend audits and 
examinations of Indian tribal governments and tribal members related to 
the general welfare exclusion until this education has been provided.
  Concerns linger that the IRS may not fully understand the role that 
general welfare programs play in maintaining tribal culture and 
tradition, and that these issues should be addressed through 
government-to-government consultation rather than through tribal or 
member audits that may deter tribes from preserving culture and 
tradition or pursuing self-determination. It is intended that the 
Tribal Advisory Committee address these concerns and work with tribes 
on a government-to-government basis. This would be accomplished by 
appointing qualified tribal leaders and in the alternative, qualified 
tribal financial officers to the Tribal Advisory Committee. Such 
qualified individuals would have intimate knowledge of federal Indian 
law and policy, as well as the financial and community needs of Indian 
tribes. These qualifications would enhance the Department's 
administration of federal tax policies affecting tribal governments 
while ensuring that treaty rights and principles of tribal self-
governance are properly balanced with federal tax policy.
  The provisions in H.R. 3043 codifying the IRS guidance concerning the 
general welfare exclusion would be effective for tax years for which 
the period of limitations is open as of the date of enactment. 
Taxpayers would have one additional year from the date of enactment to 
file for a refund with respect to any such open tax year. And, the bill 
would provide the IRS with discretion to waive any interest and 
penalties under the Code for any tribe or tribal member in connection 
with the general welfare exclusion.
  Mr. Speaker, I appreciate the opportunity to provide clarity, 
context, and congressional intent for this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LEVIN. Mr. Speaker, I ask unanimous consent that my time be 
controlled by the gentleman from Wisconsin (Mr. Kind).
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 3043.
  I was an original cosponsor of this legislation.
  I commend my friend and colleague from California, a member of the 
Ways and Means Committee, for his leadership on this issue.
  We are trying to correct a wrong interpretation with the IRS that 
will treat Native Americans like we do other sovereign entities in this 
country. That is why this legislation would codify existing IRS 
practice and bring crucial permanence and clarity to tribes across the 
country. It levels the playing field for tribal governments, treating 
them more like State governments, and it also respects tribal culture, 
traditions, and practices.
  The bill excludes from taxation income received on tribal general 
welfare programs, many of which are identical to the tax-exempt Federal 
and State programs in the areas of health care, education, housing, 
eldercare, emergency assistance, cultural programs, burial assistance, 
and legal aid, and provides necessary deference and flexibility to 
these tribal governments so that they can develop programs and 
determine priorities that promote the general welfare in their own 
communities.
  According to the Joint Committee on Taxation, this legislation 
doesn't cost taxpayers a cent--it has no budgetary impact--so we are 
not adding to the deficit.
  This bill is supported by numerous national organizations, including 
business and tribal organizations, regional tribal and intertribal 
organizations, and a multitude of State-based tribal governments.
  I want to just take a moment to thank the Ho-Chunk Nation of 
Wisconsin, the Oneida Tribe of Wisconsin, and the National Congress of 
American Indians for working tirelessly on this issue. My staff and I 
greatly appreciate their assistance in getting this in order for 
tonight.
  I encourage my colleagues to support this legislation.
  I, again, thank my friend for his leadership, and I reserve the 
balance of my time.
  Mr. NUNES. Mr. Speaker, I too would like to thank the gentleman for 
making this truly one of the few bipartisan bills that has no 
opposition, where we come together for the right reasons to get 
something done for the benefit of all of our communities, especially 
our tribal communities.
  Mr. Speaker, I yield 2 minutes to the gentleman from New York (Mr. 
Reed).
  Mr. REED. Mr. Speaker, I would like to thank the gentleman for 
yielding.
  Mr. Speaker, I rise tonight in support of H.R. 3043, the Tribal 
General Welfare Exclusion Act of 2013.
  First, I would like to thank Congressman Nunes for his hard work on 
this legislation. Without his leadership, this bill would not have made 
it as far as it has today.
  I would also like to thank the Ways and Means chairman, Dave Camp, 
for his support throughout this process, and all my colleagues on the 
other side of the aisle that have joined in the effort to get this 
legislation passed and considered this evening.
  This legislation codifies, Mr. Speaker, the proper tax treatment of 
certain services provided by the tribe for education, public safety, to 
promote its culture, and to provide for the general welfare of the 
tribe. This is an issue of fair treatment of taxpayers--in this case, 
Native American taxpayers, such as those who live in the sovereign 
Seneca Nation in western New York, in my home district, the 23rd 
Congressional District of New York.
  This legislation will ensure that the unique legal relationship and 
tax issues with regard to members of the Indian Nations and tribal 
governments are recognized and respected by the IRS going forward.
  I urge my colleagues to join us and pass this legislation tonight. It 
is only fair that we do the right thing by these Native American 
taxpayers.
  Mr. KIND. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I don't have any further requests for time on this, but 
I would like, at this time, to have the following documents inserted 
into the Record: a letter of support for H.R. 3043 from the Ho-Chunk 
Nation, which is in my congressional district in western Wisconsin; a 
letter of support from the Oneida Tribe of Indians of Wisconsin in 
Oneida, Wisconsin; and a letter of support from the Midwest Alliance of 
Sovereign Tribes, which is headquartered in Gresham, Wisconsin.

                                  Ho-Chunk Nation Legislature,

                                                September 9, 2014.
     Re Tribal Welfare General Exclusion Act (H.R. 3043).

     Hon. Ron Kind,
     House of Representatives,
     Washington, DC.
       Dear Representative Kind: I am writing on behalf of the Ho 
     Chunk Nation (Nation) to thank you for your co-sponsorship of 
     the Tribal Welfare General Exclusion Act (H.R. 3043), a bi-
     partisan bill introduced by Representative Nunes and 54 other 
     Members of the House. The Nation is reliably informed

[[Page 14837]]

     that House leadership is interested in bringing this bill to 
     the floor during the very short September 2014 session.
       As you know, tribal members across the country have been 
     harassed by the IRS seeking to force them to include in 
     calculations of gross income the value of tribally-provided 
     programs and services. This legislation is necessary to 
     clarify that various programs and services provided by Indian 
     tribal governments to their tribal members are not 
     characterized as income for purposes of computing taxable 
     income by the federal Internal Revenue Service (IRS).
       To be excluded under H.R. 3043, tribally-provided welfare 
     benefits must be available to any tribal member under 
     established guidelines, are for the promotion of general 
     welfare, are not lavish or extravagant, and are not 
     compensation for services. The bill would also establish a 
     Tribal Advisory Committee to provide education and training 
     to IRS officials and staff and to help enforce internal 
     revenue laws in Indian country.
       H.R. 3043 is strongly supported by the National Congress of 
     American Indians, the Native American Finance Officers 
     Association, Indian tribes across the country, and the U.S. 
     Chamber of Commerce. The Joint Committee on Taxation has 
     determined that, if enacted, H.R. 3043 ``would have a 
     negligible effect on Federal fiscal revenues.''
       For all of these reasons, we respectfully urge you to 
     communicate your support for H.R. 3043 to Chairman Camp and 
     Ranking Member Levin as well as with Republican and Democrat 
     leadership. Thank you for your longstanding support for the 
     Nation and, indeed, for tribal communities across the 
     country, and your kind consideration of this request.
           Sincerely,
     Jon Greendeer,
       President.
     Heather Cloud,
       Vice President.
                                  ____

                                        Oneida Tribe of Indians of


                                Wisconsin, Business Committee,

                                                September 4, 2014.
     Hon. Ron Kind,
     House of Representatives,
     Washington, DC.
       Dear Congressman Kind: I hope this letter finds you doing 
     well. First, I commend you for your support and thank you for 
     your co-sponsorship of H.R. 3043 (the Tribal General Welfare 
     Exclusion Act), a bill to address certain inequities in the 
     tax code relative to the delivery of basic general welfare 
     programs to our members. Second, we have been made aware of 
     an effort by the bill's primary sponsor, Congressman Devin 
     Nunes, that he is working with the Majority's leadership and 
     Chairman Camp to consider H.R. 3043 on the Suspension 
     Calendar sometime this month. Your support of such an effort 
     would be critical to securing the votes necessary for the 
     passage of this bill. I am asking that you do what you can to 
     help in this effort.
       While the Obama Administration has done an outstanding job 
     in addressing many of the concerns of Indian Country by 
     releasing Revenue Procedure 2014-35 earlier this year, that 
     determination is not a permanent solution to our GWE 
     concerns. Additionally, the Procedure provides no reforms to 
     the way the IRS does business on Indian lands, does not 
     require IRS agents to receive training or education in 
     federal Indian law or the U.S. trust obligations to Tribes 
     and individual Indians, and does not give Tribal leaders a 
     voice in the Administrative process at the Department of 
     Treasury. Only with the adoption of statutory changes will 
     Indian Country find a full level of assurance that the 
     benefits we extend to our Tribal members will not be met with 
     invasive audits and potential financial ruin. The bill you 
     have co-sponsored brings us that level of assurance.
       Again, thank you for all of your efforts to help Indian 
     Country achieve basic fairness under our nation's tax code. 
     Your continued support on this issue is greatly appreciated.
           Sincerely,
                                              Melinda J. Danforth,
     Vice Chairwoman.
                                  ____

                                               Midwest Alliance of


                                             Sovereign Tribes,

                                               September 16, 2014.
     Re Reform the IRS in Indian Country--Vote YES on H.R. 3043.

     Hon. Ron Kind,
     House of Representatives,
     Washington, DC.
       Dear Representative Kind: We write on behalf of the Midwest 
     Alliance of Sovereign Tribes to thank you and ask that you 
     please educate others on why they should vote ``YES'' on H.R. 
     3043, the Tribal General Welfare Exclusion Act, when the bill 
     comes to the House floor for a vote. And we thank you in 
     advance for co-sponsoring this bill!
       Federal Indian affairs policy is grounded in the history 
     and course of dealings between the U.S. and Indian tribes. 
     Tribes ceded or had taken hundreds of millions of acres of 
     our homelands to help build this Nation. In return, the U.S. 
     made solemn promises to provide for the health, education, 
     and general welfare of Indian people. Sadly, federal programs 
     and services designed to meet these promises have been 
     unfunded or under-funded for decades. As a result, tribal 
     governments are stepping in to meet these shortfalls by 
     directly providing programs and services to our tribal 
     citizens. Instead of fostering these acts of Indian self-
     determination, the IRS has targeted Indian tribes for audits, 
     seeking to impose federal income taxes on tribal government 
     programs and services.
       Tribal leaders nationwide raised concerns with these 
     targeted IRS intrusions of Indian self-determination. H.R. 
     3043 will implement long-needed reforms of the work of the 
     Internal Revenue Service (IRS) in Indian Country and clarify 
     that federally recognized tribal government programs and 
     services provided to our citizens are not subject to federal 
     income taxation. Passage of this bill will help align federal 
     tax laws with federal Indian law and policy, strengthen 
     Indian self-determination, and respect the local decisions of 
     tribal governments to improve our communities. On September 
     17, 2013, the Joint Committee on Taxation (JCT) ruled that 
     H.R. 3043 ``would have a negligible effect on federal fiscal 
     revenues.''
       For these reasons, we again urge you to ask others to vote 
     ``YES'' on H.R. 3043 as introduced when the bill comes to the 
     House floor for a vote. We appreciate your consideration of 
     this important request.
           Sincerely,
                                                    Scott R. Vele,
                                               Executive Director.

  Mr. KIND. Mr. Speaker, since I have no further speakers, I ask my 
colleagues to support this bipartisan piece of legislation tonight, and 
I yield back the balance of my time.
  Mr. NUNES. Mr. Speaker, I would like to thank the gentleman from 
Wisconsin.
  At this time, Mr. Speaker, we have one final speaker left. I yield 2 
minutes to the gentleman from Arizona (Mr. Schweikert).
  Mr. SCHWEIKERT. Mr. Speaker, I thank Mr. Nunes for doing this. Thank 
you for the bipartisan support from everyone, and particularly in the 
Ways and Means Committee.
  This is one of those sort of semijoyous moments where we actually get 
to do something that is good legislation and good policy, and sometimes 
you desperately wish around here we had more of this.
  Being from Arizona, I have 22 tribes in my State. As a much younger 
man in the legislature, I actually chaired the Indian Affairs Committee 
in my State legislature, and we spent years working with our 
communities to become self-sufficient, to maximum their sovereignty and 
respect it. So many of my tribes in Arizona now are actually engaging 
in activities to bolster their population, to provide them the basic 
benefits that you and I would receive from our city council, from our 
county, from our State. The clarification this provides just puts them 
on equal footings with what happens in our other communities and for 
those who live off reservation. That is why this is such good 
legislation. It is rational, it makes sense, and continues to 
incentivize the right direction, the right sovereignty, the right 
approach for our Native American people in this country.
  With that, Mr. Nunes, thank you for doing this.
  Mr. NUNES. Mr. Speaker, I yield myself such time as I may consume.
  I would like to thank the gentleman from Arizona for his kind words.
  Mr. Speaker, in closing, I want to say a special thanks to Chairman 
Dave Camp, Ranking Member Levin, all the Ways and Means staff that 
worked on this legislation. This is legislation that has been around 
for several years. And especially I would like to thank Damon Nelson 
from my staff, who has been on this doggedly since he found out the 
injustice that was being done to tribes across America. So I would like 
to thank him for his special support for doing the important work that 
our staff does to get something like this across the finish line.
  With that, Mr. Speaker, I yield back the balance of my time.
  Mr. COLE. Mr. Speaker, I rise to support H.R. 3043, the Tribal 
General Welfare Exclusion Act. H.R. 3043 would align federal Indian 
affairs policy with federal tax policy. H.R. 3043 would require field 
agents to receive training and education on federal Indian law and the 
government's treaty and trust obligations to Native Americans to ensure 
that their actions in the field follow the law and IRS policy. It would 
do so by clarifying that tribal government programs and services that 
aid the general welfare of the tribe are not subject to federal income 
taxation. It also establishes a Tribal Advisory Committee within the 
Treasury Department. Additionally, the Joint Committee on

[[Page 14838]]

Taxation has determined the bill would do this at little to no cost to 
the federal government.
  The Constitution clearly states that the federal government shall 
provide for the general welfare of the people. The IRS excludes a broad 
array of government services including, but not limited to, education, 
public safety, court system, social services, public works, health 
services, housing authority, parks and recreation, cultural resources, 
and museums. Through treaties and executive order, Indian tribes ceded 
hundreds of million of acres of their homelands to the United States. 
In return, the U.S. made promises to provide for the health, education 
and general welfare of Native communities. Sadly, we have fallen short 
in meeting these solemn obligations. In recent years, Indian tribal 
governments have stepped in to cover these shortfalls in federal 
obligations by offering tribal government programs and services to meet 
the needs of their communities. To be clear, these are governments 
providing government services for their citizens.
  Instead of fostering these acts of tribal government self-
determination, over the past decade, some IRS field agents have 
targeted tribes for audits and investigations seeking to tax tribal 
citizens for benefits derived from these programs and services. Field 
agent decision-making has been at best inconsistent and arbitrary. 
Activities allowed in one audit have been challenged in another. Field 
agents have conversely given wide deference to federal and state 
government programs that provide for the general welfare of their 
citizens. In doing so, they have exempted general welfare programs from 
taxation, an exception known as a ``general welfare exclusion.''
  H.R. 3043 will codify and better align federal tax policy with Indian 
affairs policy and ensure that IRS policies that recognize appropriate 
tribal government actions are actually being implemented in the field.
  Mr. Speaker, with that, I urge passage of H.R. 3043, the Tribal 
General Welfare Exclusion Act.
  Mr. REED. Mr. Speaker, I take this opportunity to clarify a number of 
interpretive issues with regard to H.R. 3043 and the IRS guidance, Rev. 
Proc. 2014-35, that it generally codifies.
  In passing this legislation, Congress expects IRS to apply its 
current guidance and any future guidance that it might issue to 
implement H.R. 3043 in a manner that does not impose significant 
administrative burdens on either a Nation or its members in 
administering the safe harbor programs. Thus, for example, we expect 
that a Nation may establish a program meeting the safe harbor program 
standards for the benefit of all of its members relying on 
certification and recoupment procedures.
  Further, in applying the current guidance for prior periods, Congress 
expects that the IRS will not challenge arrangements that are 
consistent with the spirit of the guidance in terms of what payments 
are eligible and without regard to specific documentation and similar 
requirements imposed by the guidance.
  Finally, with respect to the provision in H.R. 3043 suspending 
current audits and examinations, Congress intends that it apply to all 
payments and benefits from a tribal government to its members for their 
general welfare and further, that a tribal government may, at its 
option, waive suspension of its examination.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Nunes) that the House suspend the rules 
and pass the bill, H.R. 3043.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________