TRIBAL ECONOMIC DEVELOPMENT BONDS.

SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.(a) In General.—Section 7871 is amended by adding at the end the following new subsection:“(f) Tribal Economic Development Bonds.—“(1) Allocation of limitation.—“(A) In general.—The Secretary shall allocate the national tribal economic development bond limitation among the Indian tribal governments in such manner as the Secretary, in consultation with the Secretary of the Interior, determines appropriate.“(B) National limitation.—There is a national tribal economic development bond limitation of $2,000,000,000.“(2) Bonds treated as exempt from tax.—In the case of a tribal economic development bond—“(A) notwithstanding subsection (c), such bond shall be treated for purposes of this title in the same manner as if such bond were issued by a State,“(B) the Indian tribal government issuing such bond and any instrumentality of such Indian tribal government shall be treated as a State for purposes of section 141, and“(C) section 146 shall not apply.“(3) Tribal economic development bond.—“(A) In general.—For purposes of this section, the term ‘tribal economic development bond’ means any bond issued by an Indian tribal government—“(i) the interest on which would be exempt from tax under section 103 if issued by a State or local government, and“(ii) which is designated by the Indian tribal government as a tribal economic development bond for purposes of this subsection.“(B) Exceptions.—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—“(i) any portion of a building in which class II or class III gaming (as defined in section 4 of the Indian Gaming Regulatory Act) is conducted or housed or any other property actually used in the conduct of such gaming, or“(ii) any facility located outside the Indian reservation (as defined in section 168(j)(6)).123 STAT. 352“(C) Limitation on amount of bonds designated.—The maximum aggregate face amount of bonds which may be designated by any Indian tribal government under subparagraph (A) shall not exceed the amount of national tribal economic development bond limitation allocated to such government under paragraph (1).”.(b) Study.—The Secretary of the Treasury, or the Secretary’s delegate, shall conduct a study of the effects of the amendment made by subsection (a). Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary’s delegate, shall report to Congress on the results of the study conducted under this paragraph, including the Secretary’s recommendations regarding such amendment.(c) Effective Date.—The amendment made by subsection (a) shall apply to obligations issued after the date of the enactment of this Act.