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 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 Fairness Act of 2003’’. 
SEC. 2. DECLARATIONS AND AFFIRMATIONS. 
Congress declares and affirms that—
(1) The United States Constitution, United 
States Federal court decisions, and United States 
statutes recognize that Indian tribes are govern-
ments, retaining sovereign authority over their 
lands. 
(2) Through treaties, statutes, and Executive 
orders, the United States set aside Indian reserva-
tions to be used as ‘‘permanent homes’’ for Indian 
tribes. 
(3) As governments, Indian tribes have the re-
sponsibility and authority to provide governmental 
services, develop tribal economies, and build commu-
nity infrastructure to ensure that Indian reservation 
lands serve as livable ‘‘permanent homes’’. 
(4) Congress is vested with the authority to 
regulate commerce with Indian tribes, and hereby 
exercises that authority and affirms the United 
States government-to-government relationship with 
Indian tribes. 
SEC. 3. 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 
(25 U.S.C. 2702)) is conducted or housed. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) INDIAN
TRIBE.—The term ‘Indian 
tribe’ means any Indian tribe, band, nation, 
pueblo, or other organized group or community, 
including any Alaska Native village, or regional 
or village corporation, as defined in or estab-
lished pursuant to the Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.), which 
is recognized as eligible for the special pro-
grams and services provided by the United 
States to Indians because of their status as In-
dians. 
‘‘(B) INDIAN
RESERVATION.—The term 
‘Indian reservation’ means—
‘‘(i) a reservation, as defined in sec-
tion 4(10) of the Indian Child Welfare Act 
of 1978 (25 U.S.C. 1903(10)), and 
‘‘(ii) lands held under the provisions 
of the Alaska Native Claims Settlement 
Act (43 U.S.C. 1601 et seq.) by a Native 
corporation as defined in section 3(m) of 
such Act (43 U.S.C. 1602(m)).’’. 
SEC. 4. EXEMPTION FROM REGISTRATION REQUIREMENTS. 
The first sentence of section 3(a)(2) of the Securities 
Act of 1933 (15 U.S.C. 77c(a)(2)) is amended by inserting 
‘‘or by any Indian tribal government or subdivision thereof
(within the meaning of section 7871 of the Internal Rev-
enue Code of 1986),’’ after ‘‘or Territories,’’. 
SEC. 5. EFFECTIVE DATE. 
The amendment made by this Act shall apply to obli-
gations issued after the date of the enactment of this Act.
Æ