I 
110TH CONGRESS 
1ST SESSION H. R. 3164 
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 
JULY 24, 2007 
Mr. BECERRA (for himself and Mr. NUNES) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Financial Services, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
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 govern-
mental bonds, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act maybe cited as the ‘‘Tribal Government 
Tax-Exempt Bond Parity Act of 2007’’. 
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SEC. 2. MODIFICATIONS OF AUTHORITY OF INDIAN TRIBAL 
GOVERNMENTS 
TO 
ISSUE 
TAX-EXEMPT 
BONDS. 
Subsection (c) of section 7871 of the Internal Rev-
enue 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 In-
dian 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 govern-
mental 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 
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(25 U.S.C. 2702)) is conducted or housed or any 
other property actually used in the conduct of such 
gaming. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) INDIAN
TRIBE.—The term ‘Indian 
tribe’ means any Indian tribe, band, nation, or 
other organized group or community 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 a reservation, as de-
fined in section 4(10) of the Indian Child Wel-
fare Act of 1978 (25 U.S.C. 1903(10)).’’. 
SEC. 3. ESSENTIAL GOVERNMENTAL FUNCTION. 
Subsection (e) of section 7871 of the Internal Rev-
enue Code of 1986 (defining essential governmental func-
tion) is amended to read as follows: 
‘‘(e) ESSENTIAL GOVERNMENTAL FUNCTION.—The 
term ‘essential governmental function’ includes any func-
tion which is performed by a State or local government 
with general taxing powers.’’. 
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