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“Approved program” means any program(s) to provide general welfare assistance that is intended to qualify as tax-exempt general welfare assistance, which is adopted as a policy by resolution of the Tribal Council.

“Assistance” means any program benefits or payments that qualify for tax-free treatment under the general welfare exclusion.

“Benefits” means any approved program assistance, including payments, which is provided pursuant to this chapter.

“Compensation” for services should reflect that qualifying programs are not disguised employment. However, this shall not prevent the Tribe from structuring programs with community service ties so long as such ties are consistent with the general welfare exclusion.

“Constitution” means the Constitution of the Karuk Tribe.

“Enrolled descendant” means any person who is registered as an enrolled descendant of the Karuk Tribe.

“Enrolled Tribal member” means any person who is a duly enrolled member of the Karuk Tribe.

“General test” means any assistance will be treated as meeting the general test under the general welfare exclusion if the benefit is:

(1) Paid by or on behalf of the Karuk Tribe;

(2) Under a Tribal government approved program;

(3) Based on either needs of the Indian community itself or upon individual needs of the recipient (which need not be financial in nature);

(4) Not compensation for services;

(5) Not lavish or extravagant; and

(6) Not per capita payments within the meaning of the Indian Gaming Regulatory Act of 1988 (IGRA), Pub. Law 100-697.

“General welfare exclusion” means any benefits shall be treated as nontaxable under federal law so long as it satisfies the requirements for exclusion under Internal Revenue Code Section 139E, it is provided under a safe harbor program, or it meets the general test.

“General welfare need” means a need, in the sole discretion of the Tribal Council, which must be met to ensure the Tribe’s longevity as a self-governing Indian tribe, and includes, but is not limited to, needs in the areas of health, education, self-sufficiency, self-determination, the maintenance of culture and tradition, entrepreneurship, and employment.

“Lavish” or “extravagant” means except as otherwise required for compliance with final guidance issued under Internal Revenue Code Section 139E. Following consultation, lavish and extravagant shall be determined by the Tribal Council in its sole discretion based on all facts and circumstances, taking into account needs unique to the Tribe as well as the social purpose being served by the particular assistance at hand.

“Recipient” means any enrolled Tribal member, identified group of enrolled Tribal members, enrolled descendant, identified group of enrolled descendants, or qualified nonmember who satisfy the program policies entitled to receive assistance in accordance with specific approved program requirements.

“Tribal Council” means the Karuk Tribal Council. [Res. 20-R-080 Art. I § 6, 6/18/2020.]