S.Amdt. 1679

SA 1679. Mr. MORAN submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

Subtitle _--Tribal Tax and Investment Reform

SEC. _. FINDINGS.

The Congress finds the following:
(1) There is a unique Federal legal and political
relationship between the United States and Indian tribes.
(2) Indian tribes have the responsibility and authority to
provide governmental programs and services to tribal
citizens, develop tribal economies, and build community
infrastructure to ensure that Indian reservation lands serve
as livable, permanent homes.
(3) The United States Constitution, U.S. Federal Court
decisions, Executive orders, and numerous other Federal laws
and regulations recognize that Indian tribes are governments,
retaining the inherent authority to tax and operate as other
governments, including (inter alia) financing projects with
government bonds and maintaining eligibility for general tax
exemptions via their government status.
(4) Codifying tax parity with respect to tribal governments
is consistent with Federal treaties recognizing the
sovereignty of tribal governments.
(5) That Indian tribes face historic disadvantages in
accessing the underlying capital to build the necessary
infrastructure for job creation, and that certain statutory
restrictions on tribal governance further inhibit tribes'
ability to develop strong governance and economies.
(6) Indian tribes are sometimes excluded from the Internal
Revenue Code of 1986 in key provisions which results in
unfair tax treatment for tribal citizens or unequal
enforcement authority for tribal enforcement agencies.
(7) Congress is vested with the authority to regulate
commerce with Indian tribes, and hereby exercises that
authority in a manner which furthers tribal self-governance,
and in doing so, further affirms the United States
government-to-government relationship with Indian tribes.

SEC. _. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO
BOND ISSUANCE.

(a) In General.--Subsection (c) of section 7871 of the
Internal Revenue Code of 1986 (relating to Indian tribal
governments treated as States for certain purposes) is
amended to read as follows:
``(c) Special Rules for Tax-Exempt Bonds.--In applying
section 146 to bonds issued by Indian tribal governments (or
subdivisions thereof), the Secretary shall annually--
``(1) establish a national bond volume cap based on the
greater of--
``(A) the State population formula approach in section
146(d)(1)(A) (using national tribal population estimates
supplied annually by the Department of the Interior in
consultation with the Census Bureau), and
``(B) the minimum State ceiling amount in section
146(d)(1)(B) (as adjusted in accordance with the cost of
living provision in section 146(d)(2)), and
``(2) allocate such national bond volume cap among all
Indian tribal governments seeking such an allocation in a
particular year under regulations prescribed by the
Secretary.''.
(b) Repeal of Essential Governmental Function
Requirements.--Section 7871 of such Code is further amended
by striking subsections (b) and (e).
(c) Effective Date.--
(1) Subsection (a).--The amendment made by subsection (a)
shall apply to obligations issued in calendar years beginning
after the date of the enactment of this Act.
(2) Subsection (b).--The repeals made by subsection (b)
shall apply to transactions after, and obligations issued in
calendar years beginning after, the date of the enactment of
this Act.

SEC. _. TREATMENT OF PENSION AND EMPLOYEE BENEFIT PLANS
MAINTAINED BY TRIBAL GOVERNMENTS.

(a) Amendments to the Internal Revenue Code of 1986.--
(1) Qualified public safety employee.--Section 72(t)(10)(B)
of the Internal Revenue Code of 1986 (defining qualified
public safety employee) is amended by--
(A) striking ``or political subdivision of a State'' and
inserting ``, political subdivision of a State, or Indian
tribe''; and
(B) striking ``such State or political subdivision'' and
inserting ``such State, political subdivision, or tribe''.
(2) Governmental plan.--The last sentence of section 414(d)
of such Code (defining governmental plan) is amended to read
as follows: ``The term `governmental plan' includes a plan
established or maintained for its employees by an Indian
tribal government (as defined in section 7701(a)(40)), a
subdivision of an Indian tribal government (determined in
accordance with section 7871(d)), an agency, instrumentality,
or subdivision of an Indian tribal government, or an entity
established under Federal, State, or tribal law which is
wholly owned or controlled by any of the foregoing.''.
(3) Domestic relations order.--Section 414(p)(1)(B)(ii) of
such Code (defining domestic relations order) is amended by
inserting ``or tribal'' after ``State''.
(4) Exempt governmental deferred compensation plan.--
Section 3121(v)(3) of such Code (defining governmental
deferred compensation plan) is amended by inserting ``by an
Indian tribal government or subdivision thereof,'' after
``political subdivision thereof,''.
(5) Grandfather of certain deferred compensation plans.--
Section 457 of such Code is amended by adding at the end the
following new subsection:
``(h) Certain Tribal Government Plans Grandfathered.--Plans
established before the date of enactment of this subsection
and maintained by an Indian tribal government (as defined in
section 7701(a)(40)), a subdivision of an Indian tribal
government (determined in accordance with section 7871(d)),
an agency, instrumentality, or subdivision of an Indian
tribal government, or an entity established under Federal,
State, or tribal law which is wholly owned or controlled by
any of the foregoing, in compliance with subsection (b) or
(f) shall be treated as if established by an eligible
employer under subsection (e)(1)(A).''.
(b) Amendments to the Employee Retirement Income Security
Act of 1974.--
(1) In general.--The last sentence of section 3(32) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(32)) is amended to read as follows: ``The term
`governmental plan' includes a plan established or maintained
for its employees by an Indian tribal government (as defined
in section 7701(a)(40) of the Internal Revenue Code of 1986),
a subdivision of an Indian tribal government (determined in
accordance with section 7871(d) of such Code), an agency,
instrumentality, or subdivision of an Indian tribal
government, or an entity established under Federal, State, or
tribal law which is wholly owned or controlled by any of the
foregoing.''.
(2) Domestic relations order.--Section 206(d)(3)(B)(ii)(II)
of such Act (29 U.S.C. 1056(d)(3)(B)(ii)(II)) is amended by
inserting ``or tribal'' after ``State''.
(3) Conforming amendments.--
(A) Section 4021(b) of such Act (29 U.S.C. 1321(b)) is
amended by striking ``or'' at the end of paragraph (12), by
striking the period at the end of paragraph (13) and
inserting ``; or'', and by inserting after paragraph (13) the
following new paragraph:
``(14) established or maintained for its employees by an
Indian tribal government (as defined in section 7701(a)(40)
of the Internal Revenue Code of 1986), a subdivision of an
Indian tribal government (determined in accordance with
section 7871(d) of such Code), an agency, instrumentality, or
subdivision of an Indian tribal government, or an entity
established under Federal, State, or tribal law which is
wholly owned or controlled by any of the foregoing.''.

[[Page S7578]]

(B) Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2))
is amended by striking ``, or which is described in the last
sentence of section 3(32)'' and inserting a comma.
(c) Effective Date.--The amendments made by this section
shall apply to years beginning after the date of the
enactment of this Act.

SEC. _. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE
CHARITIES FUNDED AND CONTROLLED BY OTHER
GOVERNMENTAL FUNDERS AND SPONSORS.

(a) In General.--Section 170(b)(1)(A) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following: ``For purposes of clause (vi), the term
`governmental unit' includes an Indian tribal government
(determined in accordance with section 7871(d)), an agency,
instrumentality, or subdivision of an Indian tribal
government, or an entity established under Federal, State, or
tribal law which is wholly owned or controlled by any of the
foregoing.''.
(b) Certain Supporting Organizations.--Section 509(a) of
such Code is amended by adding at the end the following:
``For purposes of paragraph (3), an organization described in
paragraph (2) shall be deemed to include an Indian tribal
government (determined in accordance with section 7871(d)),
an agency, instrumentality, or subdivision of an Indian
tribal government, or an entity established under Federal,
State, or tribal law which is wholly owned or controlled by
any of the foregoing.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. _. RECOGNIZING INDIAN TRIBAL GOVERNMENTS FOR PURPOSES OF
DETERMINING UNDER THE ADOPTION CREDIT WHETHER A
CHILD HAS SPECIAL NEEDS.

(a) In General.--Section 23(d)(3) of the Internal Revenue
Code of 1986 (defining child with special needs) is amended--
(1) in subparagraph (A), by inserting ``or Indian tribal
government'' after ``a State''; and
(2) in subparagraph (B), by inserting ``or Indian tribal
government'' after ``such State''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
______