,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dccc  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bh1     
#bjbj,ms4 ,murkowski 7for herself and   
,mr4 ,sullivan7 introduced the following
 bill2 which was read twice and referred
 to the ,committee on ,finance  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to modify the rules for 
tribal economic development bonds4  #a4 
,short title ,this ,act may be cited as 
the ,tribal ,economic ,development ,act 
of #bjbj4  #b4 ,modifications related to
 tribal economic development bonds  7a7 
,increase in national limitation        
,subparagraph 7,b7 of section           
#ghga7;f77#a7 of the ,internal ,revenue 
,code of #aihf is amended by striking   
#b1jjj1jjj1jjj and inserting            
#d1jjj1jjj1jjj4  7b7 ,other             
modifications  7#a7 ,in general         
,paragraph 7#b7 of section #ghga7;f7 of 
the ,internal ,revenue ,code of #aihf is
 amended to read as follows3  7#b7      
,bonds treated as exempt from tax       

,notwithstanding any other provision of 
this title1 gross income shall not      
include interest on any tribal economic 
development bond4  4  7#b7 ,modification
 of definition of tribal economic       
development bond ,section #ghga7;f77#c7 
of the ,internal ,revenue ,code of #aihf
 is amended to read as follows3  7#c7   
,tribal economic development bond  7,a7 
,in general ,for purposes of this       
section1 the term tribal economic       
development bond means any bond issued  
by an ,indian tribal government 7or a   
subdivision thereof7-- 7i7 which is part
 of an issue #ie percent or more of the 
proceeds of which are to be used-- 7,i7 
by a qualified ,native user1 and  7,,ii7
 to promote the economic development of 
any ,indian tribe or ,native            
,corporation 7including through loans by
 any ,indian tribal government or a     
subdivision thereof to a qualified      
,native user71  7ii7 except as provided 
in subparagraph 7,d71 which is not an   
arbitrage bond 7within the meaning of   

section #adh71  7iii7 which meets the   
applicable requirements of section #adi 
7other than subsections 7b71 7d71 and   
7g7 thereof71 and  7iv7 which is        
designated by the ,indian tribal        
government as a tribal economic         
development bond for purposes of this   
subsection4  7,b7 ,exception ,such term 
shall not include any bond issued as    
part of an issue if any portion of the  
proceeds of such issue are used to      
finance any portion of a building in    
which class ,,ii or class ,,iii gaming  
7as defined in section #d of the ,indian
 ,gaming ,regulatory ,act7 is conducted 
or housed or any other property actually
 used in the conduct of such gaming4    
7,c7 ,limitation on amount of bonds     
designated ,the maximum aggregate face  
amount of bonds which may be designated 
by any ,indian tribal government under  
subparagraph 7,a7 shall not exceed the  
amount of national tribal economic      
development bond limitation allocated to
 such government under paragraph 7#a74  

7,d7 ,loans to qualified ,native users  
permitted  7i7 ,in general ,for purposes
 of applying section #adh to this       
paragraph1 the term arbitrage bond shall
 not include a bond issued as part of an
 issue the proceeds of which are used to
 provide a loan described in clause 7ii7
 to a qualified ,native user            
notwithstanding whether the interest    
rate on such loan produces a yield which
 is higher than the yield on such issue4
  7ii7 ,loan described ,a loan is       
described in this clause if the terms of
 the loan prevent the borrower of such  
loan from making further loans with the 
proceeds of such loan4  7,e7 ,qualified 
,native user ,for purposes of this      
paragraph1 the term qualified ,native   
user means-- 7i7 an ,indian tribal      
government 7or a subdivision thereof71  
7ii7 a ,native ,corporation1 or  7iii7  
any other entity if-- 7,i7 in the case  
of a corporation1 not less than         
two-thirds of the outstanding stock are 
owned by one or more entities described 

in clauses 7i7 or 7ii71 and  7,,ii7 in  
the case of any entity other than a     
corporation1 not less than two-thirds of
 the capital and profits interests are  
owned by one or more entities described 
in clauses 7i7 or 7ii74  7,f7 ,other    
definitions ,for purposes of this       
paragraph-- 7i7 ,native ,corporation    
,the term ,native ,corporation has the  
meaning given such term under section   
#fdf7;h77#b74  7ii7 ,indian tribe ,the  
term ,indian tribe has the meaning given
 such term under subsection             
7c77#c77;,e77ii74  7,g7 ,coordination   
with third-party repayment1 etc ,a bond 
shall not fail to be treated as a tribal
 economic development bond solely       
because a person other than the ,indian 
tribal government 7or subdivision       
thereof7 issuing the bond has guaranteed
 the repayment of1 is otherwise         
obligated to repay1 or in fact repays1  
any portion of the principal or interest
 of such bond4  4  7c7 ,effective date  
,the amendments made by this section    

shall apply to obligations issued after 
the date of the enactment of this ,act4