II 

109TH CONGRESS 

2D SESSION S. 3567 

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 

JUNE 26, 2006 

Mr. SMITH (for himself and Mr. BAUCUS) 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. 

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 Parity Act of 2006’’. 


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•S 3567 IS

1 SEC. 2. MODIFICATIONS OF AUTHORITY OF INDIAN TRIBAL 

2 GOVERNMENTS TO ISSUE TAX-EXEMPT 

3 BONDS. 

4 (a) IN GENERAL.—Subsection (c) of section 7871 of 

5 the Internal Revenue Code of 1986 (relating to Indian 

6 tribal governments treated as States for certain purposes) 

7 is amended to read as follows: 

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

9 BONDS.— 

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

11 103 shall apply to any obligation issued by an In12 dian tribal government (or subdivision thereof) only 

13 if— 

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

15 percent or more of the net proceeds of which 

16 are to be used to finance any facility located on 

17 an Indian reservation, or 

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

19 substantially all of the proceeds of which are to 

20 be used in the exercise of any essential govern21 mental function. 

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

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

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

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


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•S 3567 IS

1 in section 4 of the Indian Gaming Regulatory Act 

2 (25 U.S.C. 2702)) is conducted or housed. 

3 ‘‘(3) DEFINITIONS.—For purposes of this sub4 section— 

5 ‘‘(A) INDIAN TRIBE.—The term ‘Indian 

6 tribe’ means any tribe, band, nation, pueblo, 

7 rancheria, or other organized group or commu8 nity of Indians, including any Native village, 

9 Regional Corporation, or Village Corporation as 

10 defined in or established pursuant to the Alaska 

11 Native Claims Settlement Act (43 U.S.C. 1601 

12 et seq.), which is recognized as eligible for the 

13 special programs and services provided by the 

14 United States to Indians because of their status 

15 as Indians. 

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

17 ‘Indian reservation’ means— 

18 ‘‘(i) a reservation, as defined in sec19 tion 4(10) of the Indian Child Welfare Act 

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

21 ‘‘(ii) lands held under the provisions 

22 of the Alaska Native Claims Settlement 

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

24 corporation as defined in section 3(m) of 

25 such Act (43 U.S.C. 1602(m)).’’. 


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1 SEC. 3. EXEMPTION FROM REGISTRATION REQUIREMENTS. 

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

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

4 ‘‘or by any Indian tribal government or subdivision thereof 

5 (within the meaning of section 7871 of the Internal Rev6 enue Code of 1986),’’ after ‘‘or Territories,’’. 

7 SEC. 4. EFFECTIVE DATE. 

8 The amendments made by this Act shall apply to obli9 gations issued after the date of the enactment of this Act. 

Æ 


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