Indian Community Economic Enhancement Act of 2020

PUBLIC LAW 116–261—DEC. 30, 2020 INDIAN COMMUNITY ECONOMIC ENHANCEMENT ACT OF 2020 VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00001 Fmt 6579 Sfmt 6579 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3306 PUBLIC LAW 116–261—DEC. 30, 2020 Public Law 116–261 116th Congress An Act To amend the Native American Business Development, Trade Promotion, and Tour- ism Act of 2000, the Buy Indian Act, and the Native American Programs Act of 1974 to provide industry and economic development opportunities to Indian communities. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Indian Community Economic Enhancement Act of 2020’’. SEC. 2. FINDINGS. Congress finds that— (1)(A) to bring industry and economic development to Indian communities, Indian Tribes must overcome a number of barriers, including— (i) geographical location; (ii) lack of infrastructure or capacity; (iii) lack of sufficient collateral and capital; and (iv) regulatory bureaucracy relating to— (I) development; and (II) access to services provided by the Federal Government; and (B) the barriers described in subparagraph (A) often add to the cost of doing business in Indian communities; (2) Indian Tribes— (A) enact laws and exercise sovereign governmental powers; (B) determine policy for the benefit of Tribal members; and (C) produce goods and services for consumers; (3) the Federal Government has— (A) an important government-to-government relation- ship with Indian Tribes; and (B) a role in facilitating healthy and sustainable Tribal economies; (4) the input of Indian Tribes in developing Federal policy and programs leads to more meaningful and effective measures to assist Indian Tribes and Indian entrepreneurs in building Tribal economies; (5)(A) many components of Tribal infrastructure need significant repair or replacement; and (B) access to private capital for projects in Indian commu- nities— 25 USC 4301 note. 25 USC 4301 note. Indian Community Economic Enhancement Act of 2020. Dec. 30, 2020 [S. 212] VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3307 PUBLIC LAW 116–261—DEC. 30, 2020 (i) may not be available; or (ii) may come at a higher cost than such access for other projects; (6)(A) Federal capital improvement programs, such as those that facilitate tax-exempt bond financing and loan guarantees, are tools that help improve or replace crumbling infrastructure; (B) lack of parity in treatment of an Indian Tribe as a governmental entity under Federal tax and certain other regu- latory laws impedes, in part, the ability of Indian Tribes to raise capital through issuance of tax exempt debt, invest as an accredited investor, and benefit from other investment incen- tives accorded to State and local governmental entities; and (C) as a result of the disparity in treatment of Indian Tribes described in subparagraph (B), investors may avoid financing, or demand a premium to finance, projects in Indian communities, making the projects more costly or inaccessible; (7) there are a number of Federal loan guarantee programs available to facilitate financing of business, energy, economic, housing, and community development projects in Indian communities, and those programs may support public-private partnerships for infrastructure development, but improvements and support are needed for those programs specific to Indian communities to facilitate more effectively private financing for infrastructure and other urgent development needs; and (8)(A) most real property held by Indian Tribes is trust or restricted land that essentially cannot be held as collateral; and (B) while creative solutions, such as leasehold mortgages, have been developed in response to the problem identified in subparagraph (A), some solutions remain subject to review and approval by the Bureau of Indian Affairs, adding additional costs and delay to Tribal projects. SEC. 3. NATIVE AMERICAN BUSINESS DEVELOPMENT, TRADE PRO- MOTION, AND TOURISM ACT OF 2000. (a) FINDINGS; PURPOSES.—Section 2 of the Native American Business Development, Trade Promotion, and Tourism Act of 2000 (25 U.S.C. 4301) is amended by adding at the end the following: ‘‘(c) APPLICABILITY TO INDIAN-OWNED BUSINESSES.—The findings and purposes in subsections (a) and (b) shall apply to any Indian-owned business governed— ‘‘(1) by Tribal laws regulating trade or commerce on Indian lands; or ‘‘(2) pursuant to section 5 of the Act of August 15, 1876 (19 Stat. 200, chapter 289; 25 U.S.C. 261).’’. (b) DEFINITIONS.—Section 3 of the Native American Business Development, Trade Promotion, and Tourism Act of 2000 (25 U.S.C. 4302) is amended— (1) by redesignating paragraphs (1) through (6) and para- graphs (7) through (9), as paragraphs (2) through (7) and para- graphs (9) through (11), respectively; (2) by inserting before paragraph (2) (as redesignated by paragraph (1)) the following: ‘‘(1) DIRECTOR.—The term ‘Director’ means the Director of Native American Business Development appointed pursuant to section 4(a)(2).’’; and VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00003 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3308 PUBLIC LAW 116–261—DEC. 30, 2020 (3) by inserting after paragraph (7) (as redesignated by paragraph (1)) the following: ‘‘(8) OFFICE.—The term ‘Office’ means the Office of Native American Business Development established by section 4(a)(1).’’. (c) OFFICE OF NATIVE AMERICAN BUSINESS DEVELOPMENT.— Section 4 of the Native American Business Development, Trade Promotion, and Tourism Act of 2000 (25 U.S.C. 4303) is amended— (1) in subsection (a)— (A) in paragraph (1)— (i) by striking ‘‘Department of Commerce’’ and inserting ‘‘Office of the Secretary’’; and (ii) by striking ‘‘(referred to in this Act as the ‘Office’)’’; and (B) in paragraph (2), in the first sentence, by striking ‘‘(referred to in this Act as the ‘Director’)’’; and (2) by adding at the end the following: ‘‘(c) DUTIES OF DIRECTOR.— ‘‘(1) IN GENERAL.—The Director shall serve as— ‘‘(A) the program and policy advisor to the Secretary with respect to the trust and governmental relationship between the United States and Indian Tribes; and ‘‘(B) the point of contact for Indian Tribes, Tribal organizations, and Indians regarding— ‘‘(i) policies and programs of the Department of Commerce; and ‘‘(ii) other matters relating to economic develop- ment and doing business in Indian lands. ‘‘(2) DEPARTMENTAL COORDINATION.—The Director shall coordinate with all offices and agencies within the Department of Commerce to ensure that each office and agency has an accountable process to ensure— ‘‘(A) meaningful and timely coordination and assist- ance, as required by this Act; and ‘‘(B) consultation with Indian Tribes regarding the poli- cies, programs, assistance, and activities of the offices and agencies. ‘‘(3) OFFICE OPERATIONS.—There are authorized to be appropriated to carry out this section not more than $2,000,000 for each fiscal year.’’. (d) INDIAN COMMUNITY DEVELOPMENT INITIATIVES.—The Native American Business Development, Trade Promotion, and Tourism Act of 2000 is amended— (1) by redesignating section 8 (25 U.S.C. 4307) as section 10; and (2) by inserting after section 7 (25 U.S.C. 4306) the fol- lowing: ‘‘SEC. 8. INDIAN COMMUNITY DEVELOPMENT INITIATIVES. ‘‘(a) INTERAGENCY COORDINATION.—Not later than 1 year after the enactment of this section, the Secretary, the Secretary of the Interior, and the Secretary of the Treasury shall coordinate— ‘‘(1) to develop initiatives that— ‘‘(A) encourage, promote, and provide education regarding investments in Indian communities through— Deadline. 25 USC 4306a. Consultation. VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00004 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3309 PUBLIC LAW 116–261—DEC. 30, 2020 ‘‘(i) the loan guarantee program of Bureau of Indian Affairs under section 201 of the Indian Financing Act of 1974 (25 U.S.C. 1481); ‘‘(ii) programs carried out using amounts in the Community Development Financial Institutions Fund established under section 104(a) of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4703(a)); and ‘‘(iii) other capital development programs; ‘‘(B) examine and develop alternatives that would qualify as collateral for financing in Indian communities; and ‘‘(C) provide entrepreneur and other training relating to economic development through tribally controlled col- leges and universities and other Indian organizations with experience in providing such training; ‘‘(2) to consult with Indian Tribes and with the Securities and Exchange Commission to study, and collaborate to estab- lish, regulatory changes necessary to qualify an Indian Tribe as an accredited investor for the purposes of sections 230.500 through 230.508 of title 17, Code of Federal Regulations (or successor regulations), consistent with the goals of promoting capital formation and ensuring qualifying Indian Tribes have the ability to withstand investment loss, on a basis comparable to other legal entities that qualify as accredited investors who are not natural persons; ‘‘(3) to identify regulatory, legal, or other barriers to increasing investment, business, and economic development, including qualifying or approving collateral structures, measurements of economic strength, and contributions of Indian economies in Indian communities through the Authority estab- lished under section 4 of the Indian Tribal Regulatory Reform and Business Development Act of 2000 (25 U.S.C. 4301 note); ‘‘(4) to ensure consultation with Indian Tribes regarding increasing investment in Indian communities and the develop- ment of the report required in paragraph (5); and ‘‘(5) not less than once every 2 years, to provide a report to Congress regarding— ‘‘(A) improvements to Indian communities resulting from such initiatives and recommendations for promoting sustained growth of the Tribal economies; ‘‘(B) results of the study and collaboration regarding the necessary changes referenced in paragraph (2) and the impact of allowing Indian Tribes to qualify as an accred- ited investor; and ‘‘(C) the identified regulatory, legal, and other barriers referenced in paragraph (3). ‘‘(b) WAIVER.—For assistance provided pursuant to section 108 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4707) to benefit Native Community Develop- ment Financial Institutions, as defined by the Secretary of the Treasury, section 108(e) of such Act shall not apply. ‘‘(c) INDIAN ECONOMIC DEVELOPMENT FEASIBILITY STUDY.— ‘‘(1) IN GENERAL.—The Government Accountability Office shall conduct a study and, not later than 18 months after the date of enactment of this subsection, submit to the Com- mittee on Indian Affairs of the Senate and the Committee Deadline. Recommenda- tions. Recommenda- tions. Time period. Reports. Consultation. Consultation. Study. VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00005 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3310 PUBLIC LAW 116–261—DEC. 30, 2020 on Natural Resources of the House of Representatives a report on the findings of the study and recommendations. ‘‘(2) CONTENTS.—The study shall include an assessment of each of the following: ‘‘(A) IN GENERAL.—The study shall assess current Fed- eral capitalization and related programs and services that are available to assist Indian communities with business and economic development, including manufacturing, phys- ical infrastructure (such as telecommunications and broadband), community development, and facilities construction for such purposes. For each of the Federal programs and services identified, the study shall assess the current use and demand by Indian Tribes, individuals, businesses, and communities of the programs, the capital needs of Indian Tribes, businesses, and communities related to economic development, the extent to which the programs and services overlap or are duplicative, and the extent that similar programs have been used to assist non-Indian communities compared to the extent used for Indian communities. ‘‘(B) FINANCING ASSISTANCE.—The study shall assess and quantify the extent of assistance provided to non- Indian borrowers and to Indian (both Tribal and individual) borrowers (including information about such assistance as a percentage of need for Indian borrowers and for non- Indian borrowers, assistance to Indian borrowers and to non-Indian borrowers as a percentage of total applicants, and such assistance to Indian borrowers as individuals as compared to such assistance to Indian Tribes) through the loan programs, the loan guarantee programs, or bond guarantee programs of the— ‘‘(i) Department of the Interior; ‘‘(ii) Department of Agriculture; ‘‘(iii) Department of Housing and Urban Develop- ment; ‘‘(iv) Department of Energy; ‘‘(v) Small Business Administration; and ‘‘(vi) Community Development Financial Institu- tions Fund of the Department of the Treasury. ‘‘(C) TAX INCENTIVES.—The study shall assess and quantify the extent of the assistance and allocations afforded for non-Indian projects and for Indian projects pursuant to each of the following tax incentive programs: ‘‘(i) New market tax credit. ‘‘(ii) Low income housing tax credit. ‘‘(iii) Investment tax credit. ‘‘(iv) Renewable energy tax incentives. ‘‘(v) Accelerated depreciation. ‘‘(D) TRIBAL INVESTMENT INCENTIVE.—The study shall assess various alternative incentives that could be provided to enable and encourage Tribal governments to invest in an Indian community development investment fund or bank.’’. (e) CONFORMING AND TECHNICAL AMENDMENTS.—The Native American Business Development, Trade Promotion, and Tourism Act of 2000 (25 U.S.C. 4301 et seq.) is amended— (1) in section 3— 25 USC 4302. Assessments. VerDate Sep 11 2014 15:27 Feb 08, 2021 Jkt 019139 PO 00261 Frm 00006 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL261.116 PUBL261 whamilton on LAPJF8D0R2PROD with PUBLAW 134 STAT. 3311 PUBLIC LAW 116–261—DEC. 30, 2020 (A) in each of paragraphs (1), (4), and (8), by striking ‘‘tribe’’ and inserting ‘‘Tribe’’; and (B) in paragraph (6), by striking ‘‘The term ‘Indian tribe’ has the meaning given that term’’ and inserting ‘‘The term ‘Indian Tribe’ has the meaning given the term ‘In [Text truncated for display. Full text available on Congress.gov.]