Governor’s state-tribal compacts at a glance
Oklahoma Gov. Kevin Stitt has become known for rarely working with tribal nations during his five years in office. But in recent weeks, he’s reached a series of agreements with tribal officials that other state leaders view as progress.
Stitt signed off on five compacts with four tribal nations in January. Four of the agreements spell out how the state and each tribe will split tax money generated from tobacco sold on tribal lands. The fifth compact renews Oklahoma’s car tag deal with the Chickasaw Nation.
The governor’s office has said more state-tribal agreements are in the works.
You can read all of the new compacts below, as well as a breakdown of the dispute that led up to the deals.
What are compacts?
Compacts are agreements between governments. They are often negotiated to resolve disagreements or clear up questions over power. That could mean the power to collect taxes or the power to regulate, as two common examples in Oklahoma.
What is the controversy surrounding compacts in Oklahoma?
The governor has called many of the compacts unfair. He believes Oklahoma should be making more money under some of the deals — especially the main state-tribal gaming compact approved by voters in 2004. Under that agreement, tribes pay the state monthly fees in exchange for the exclusive right to operate Las Vegas-style gaming in Oklahoma. The payments now add up to $200 million a year.
Stitt wanted Oklahoma to receive a bigger cut of gaming revenues in 2019, but his bid failed. He also tried to arrange an exponential revenue bump for the state when two hunting and fishing license compacts came up for renewal in 2021. Instead, the Cherokee and Choctaw nations cut out Oklahoma al
together and started licensing their citizens on their own.
What about tobacco compacts?
Tobacco compacts came out of 1990s-era legal fights between the state and tribes. Oklahoma officials argued the state should receive the tax money paid by non-tribal citizens buying cigarettes on tribal land.
Compacts resolved the legal disputes. The terms evolved over time to where they are today. The state and tribal nations equally divide the tax dollars collected from tobacco sales on tribal lands.
Why did the tobacco compacts face pushback from Gov. Stitt?
Many tobacco compacts were set to expire by this year. Stitt again pushed for Oklahoma to make more money before renewing them, offering a take it or leave it split of 75-25, according to some tribal leaders. The governor relaxed his proposed split to 50-50 after top lawmakers decided to pass the renewals into law, without Stitt’s approval. That set off a power struggle that continues today.
The governor has insisted on one constant demand. He contends the compacts need to be tweaked to make clear they do not apply throughout entire tribal reservations in eastern Oklahoma.
What’s different in the new tobacco compacts signed by the governor?
The four compacts recently signed by Stitt have a new phrase: “compact jurisdiction.” It’s defined as tribal trust and restricted land, not tribal reservations.
The governor has offered to sign compacts with other tribal nations that agree to that phrasing, he said during a virtual press conference in late January, a recording of which was later viewed by The Oklahoman. He said his general counsel, Trevor Pemberton, was leading the negotiations.
What about the car tag compacts?
The state issues license plates directly to Chickasaw citizens under the terms of a 2014 agreement. The new compact signed by Stitt and Chickasaw Gov. Bill Anoatubby keeps all aspects of the prior arrangement in place.
Only two other tribes, the Cherokee and Choctaw nations, have compacts with the state. Those still need to be renewed.
The governor has said Oklahoma needs more plate compacts because state police and the Oklahoma Turnpike Authority have no idea who is at the wheel of cars with tribal plates. However, The Oklahoman found in November that at least 26 of the 33 tribal nations that issue plates share that information with state police.