BDR TEDB Comment Post
U.S. Department of Treasury Seeks Comments on Tribal Economic Development Bonds
On July 12, 2010, the Department of the Treasury (“Department”) published in the Federal Register a notice and request (“Notice”) for comments regarding tribal economic development bonds (“TEDBs”). The request was issued pursuant to a directive in the American Recovery and Reinvestment Act (“ARRA”) that the Department conduct a study and report to Congress with recommendations regarding the use of TEDBs.
The Notice requests comments from tribes regarding: (1) whether the state or local governmental standard for tax-exempt governmental bond status should replace the essential governmental function standard; (2) what types of projects and activities should be eligible for financing with private activity bonds; (3) whether and how to apply volume cap allocations to private activity bonds issued by tribes; (4) whether to modify the current restriction that projects funded by TEDBs must be located on reservations; and (5) whether to modify the current restriction against financing gaming facilities with TEDBs.
Other issues are raised in the Notice include a request for comments regarding the scope of tax exempt financing and the unique circumstances faced by tribes.
The deadline to submit comments is September 10, 2010.
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