Dispute over Oklahoma tribal compacts is heading to state courts. Here's why

The effort to block Oklahoma lawmakers from renewing state-tribal compacts will get its day in court, but it won’t be Gov. Kevin Stitt’s complaint at center stage.

Instead, a referee for the Oklahoma Supreme Court will hear arguments from the Oklahoma Council of Public Affairs, a conservative think tank that also wants to stop the extensions.

The Oklahoma City-based nonprofit petitioned the state’s highest civil court earlier this month to declare one of the two new compact laws void, because its attorney contends lawmakers violated the Oklahoma Constitution when they approved the bill.

The court gave notice this week that a referee will hear arguments in the case Oct. 4, and then submit a summary report for the Supreme Court to consider. Senate Leader Greg Treat and House Speaker Charles McCall have until Sept. 27 to file a response to the complaint. Their attorneys also will be allowed to present their side of the case at the court hearing, which is slated to begin one day after a special legislative session convened by Stitt.

The governor also has sued Treat and McCall over the compact extensions, but no hearing has been set in that case.

What to know about the tribal compacts at the center of the dispute

The compact dispute is centered on two laws approved by lawmakers during a special session that ended in July. The laws extend the expiration dates of state-tribal tobacco tax and vehicle registration compacts for one year, through 2024. Many tribal leaders had asked lawmakers to tack extra time on to the agreements, because they said renewal talks with Stitt were going nowhere.

The governor’s lawsuit alleges lawmakers could not approve the extensions without him, since he has the power to negotiate the deals with tribes on behalf of the state. Attorneys for Treat and McCall responded to that lawsuit by saying the Legislature does not need Stitt’s approval to write and pass laws.

The think tank’s legal complaint, which focuses on the cigarette tax compacts, is more technical. It alleges lawmakers did not follow certain constitutional requirements for revenue-raising bills. Those mandatory steps include launching the bill in the House, passing the bill by a supermajority margin and approving the bill with at least five days left in the session.

More: Stitt's call for special session on tax fairness raises criticism, crickets

OCPA contends the tobacco compact extension bill, Senate Bill 26x, was clearly meant to raise funding for the state but did not meet the constitutional requirements for such bills.

“It is ‘0 for 3,’” the group’s attorney, Ryan Haynie, wrote in the court petition. “Accordingly, it must be declared void as a matter of law.”

The group‘s president, Jonathan Small, did not return a message regarding the case. A spokesperson for McCall also could not be reached by press time. Treat did not address the specifics of the pending lawsuits, but said the legal proceedings would have no impact on the upcoming special session.

Why Gov. Kevin Stitt, Oklahoma tribes disagree on the compacts

Under the terms of the tobacco tax compacts, Oklahoma and tribes agree to split tax money generated from the sale of tobacco products on tribal lands. Treat and McCall said the state stood to lose out on more than $50 million if all of the compacts were allowed to expire.

Stitt has opposed renewing the deals without updating the terms to exclude the tribal reservations that have gained legal recognition since the 2020 McGirt v. Oklahoma ruling.

More: The story behind Gov. Stitt's new 'One Oklahoma' video on tribal reservations

Tribal leaders have countered that the governor has not been open to negotiations and had insisted until recently that Oklahoma should receive a much larger cut of the tax money.

OCPA published several articles throughout the summer criticizing the Legislature’s push to extend the compacts and warning that the renewals could also cost the state millions of dollars.

Stitt vetoed the extensions in May, but lawmakers kept the bills alive in a special session and voted to override the governor’s vetoes in July.

Since then, Oklahoma has received notice from at least two tribes accepting the renewal terms.

Read more:

• What to know about Oklahoma's newest tribal compact dispute

• Legislature can renew tribal compacts without Stitt, lawmakers tell Oklahoma Supreme Court

• Oklahoma Senate passes tribal compact extensions, voting to override governor

Molly Young covers Indigenous affairs. Reach her at mollyyoung@gannett.com or 405-347-3534.

This article originally appeared on Oklahoman: New Oklahoma law that extends tribal compacts gets 2nd legal challenge