A California Senate committee will hold a hearing on a bill to allow tribes in the state to issue tax-exempt bonds for development projects.

Sen. Dean Florez (D) says tribes are being denied the right to issue bonds just like any other municipality. His bill would allow bonds for any project.

The Internal Revenue Service is fighting two tribes, including one in California, that issued tax-exempt bonds. The IRS says the deals aren't allowed under federal law because casinos and hotels aren't "essential" government services.

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Reintroduced bill would let tribes issue tax-free bonds (AP 4/27)
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