I 

108TH CONGRESS 

1ST SESSION H. R. 1421

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 HOUSE OF REPRESENTATIVES 

MARCH 25, 2003

Mr. CAMP (for himself, Mr. FOLEY, and Mr. WELLER) introduced the 

following bill; which was referred to the Committee on Ways and Means 

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act maybe cited as the ‘‘Tribal Government 

5 Tax-Exempt Bond Fairness Act of 2003’’. 

6 SEC. 2. DECLARATIONS AND AFFIRMATIONS. 

7 Congress declares and affirms that—
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1 (1) The United States Constitution, United 

2 States Federal court decisions, and United States 

3 statutes recognize that Indian tribes are govern4 ments, retaining sovereign authority over their 

5 lands. 

6 (2) Through treaties, statutes, and Executive 

7 orders, the United States set aside Indian reserva8 tions to be used as ‘‘permanent homes’’ for Indian 

9 tribes. 

10 (3) As governments, Indian tribes have the re11 sponsibility and authority to provide governmental 

12 services, develop tribal economies, and build commu13 nity infrastructure to ensure that Indian reservation 

14 lands serve as livable ‘‘permanent homes’’. 

15 (4) Congress is vested with the authority to 

16 regulate commerce with Indian tribes, and hereby 

17 exercises that authority and affirms the United 

18 States government-to-government relationship with 

19 Indian tribes. 

20 SEC. 3. MODIFICATIONS OF AUTHORITY OF INDIAN TRIBAL 

21 GOVERNMENTS TO ISSUE TAX-EXEMPT 

22 BONDS. 

23 Subsection (c) of section 7871 of the Internal Rev24 enue Code of 1986 (relating to Indian tribal governments 
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1 treated as States for certain purposes) is amended to read 

2 as follows: 

3 ‘‘(c) ADDITIONAL REQUIREMENTS FOR TAX-EXEMPT

4 BONDS.—

5 ‘‘(1) IN GENERAL.—Subsection (a) of section 

6 103 shall apply to any obligation issued by an In7 dian tribal government (or subdivision thereof) only 

8 if—

9 ‘‘(A) such obligation is part of an issue 95 

10 percent or more of the net proceeds of which 

11 are to be used to finance any facility located on 

12 an Indian reservation, or 

13 ‘‘(B) such obligation is part of an issue 

14 substantially all of the proceeds of which are to 

15 be used in the exercise of any essential govern16 mental function. 

17 ‘‘(2) EXCLUSION OF GAMING.—An obligation 

18 described in subparagraph (A) or (B) of paragraph 

19 (1) may not be used to finance any portion of a 

20 building in which class II or III gaming (as defined 

21 in section 4 of the Indian Gaming Regulatory Act 

22 (25 U.S.C. 2702)) is conducted or housed. 

23 ‘‘(3) DEFINITIONS.—For purposes of this sub24 section—
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1 ‘‘(A) INDIAN TRIBE.—The term ‘Indian 

2 tribe’ means any Indian tribe, band, nation, 

3 pueblo, or other organized group or community, 

4 including any Alaska Native village, or regional 

5 or village corporation, as defined in or estab6 lished pursuant to the Alaska Native Claims 

7 Settlement Act (43 U.S.C. 1601 et seq.), which 

8 is recognized as eligible for the special pro9 grams and services provided by the United 

10 States to Indians because of their status as In11 dians. 

12 ‘‘(B) INDIAN RESERVATION.—The term 

13 ‘Indian reservation’ means—

14 ‘‘(i) a reservation, as defined in sec15 tion 4(10) of the Indian Child Welfare Act 

16 of 1978 (25 U.S.C. 1903(10)), and 

17 ‘‘(ii) lands held under the provisions 

18 of the Alaska Native Claims Settlement 

19 Act (43 U.S.C. 1601 et seq.) by a Native 

20 corporation as defined in section 3(m) of 

21 such Act (43 U.S.C. 1602(m)).’’. 

22 SEC. 4. EXEMPTION FROM REGISTRATION REQUIREMENTS. 

23 The first sentence of section 3(a)(2) of the Securities 

24 Act of 1933 (15 U.S.C. 77c(a)(2)) is amended by inserting 

25 ‘‘or by any Indian tribal government or subdivision thereof 
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1 (within the meaning of section 7871 of the Internal Rev2 enue Code of 1986),’’ after ‘‘or Territories,’’. 

3 SEC. 5. EFFECTIVE DATE. 

4 The amendment made by this Act shall apply to obli5 gations issued after the date of the enactment of this Act.

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