OKLAHOMA CITY (KFOR) – Tribal leaders are speaking out after Governor Kevin Stitt vetoed two measure that impact tribal-state agreements.

Senate Bill 26X would extend the tobacco products excise tax compact until Dec. 31, 2024.

“As authorized by Section 346 of Title 68 of the Oklahoma Statutes, Oklahoma entered numerous compacts with Tribal nations relating to taxation of tobacco product sales, which agreements have benefited all parties by reducing intergovernmental disputes, increasing Oklahoma tax revenues, and providing a stable environment for Tribal and non-Tribal economic activity,” the bill states.

SB 26X passed the Oklahoma House of Representatives 88-8 and the Oklahoma Senate 39-6.

However, Gov. Stitt vetoed the measure on Wednesday.

“In clear violation of Oklahoma’s fundamental and statutory law, Enrolled Senate Bill 26x purports to extend existing and expired tobacco tax compacts. Both because this Bill amounts to a circumvention of the executive’s authority to negotiate compacts and is not in the State’s best interests, I must veto it.

As enacted, Senate Bill 26x would rubberstamp pre-McGirt compacts containing the very language five of the State’s 38 federally recognized tribes have relied upon to challenge, in Stroble v. Oklahoma Tax Commission, the State’s right to collect income tax within its territory. Although I believe the tribes’ arguments in Stroble are without merit, to legislate as though at least those few tribes are not prepared to lodge the same argument in the tobacco tax context (and likely elsewhere) is at best unwise.

Even if the Bill were otherwise fair for the State, this bill has other problems, too.

First, this Bill is a byproduct of a body purporting to sit simultaneously in special and regular session. While a special session may have run concurrently with a regular session before; it does not mean such an occurrence is constitutional.

Second, this Bill is unconstitutional pursuant to Article 5, Section 27A because tobacco compacts- or for that matter, compacts at all- are not specifically identified in the Call, which is limited “to the consideration of” matters involving the appropriation of funds; the implementation and administration of budget-related funds; and the expenditure of American Rescue Plan Act of 2021 funds.

This Bill may appear on its face to be innocuous. However, if this bill were to become law, irreparable harm will befall our Great State. For these reasons, I have vetoed Enrolled Senate Bill 26x.”

Stitt’s veto message for SB 26x

HB 1005X would extend the motor vehicle licensing/registration compact with tribal nations until Dec. 31, 2024.

“As an exercise of executive authority consistent with this codified policy, the Oklahoma Governor formed and entered certain Tribal-State agreements relating to motor vehicle licensing and registration matters, which agreements have benefited all parties by reducing intergovernmental disputes and increasing revenues available for roads, bridges, schools, and other valuable community infrastructure,” the bill read.

After passing both chambers, HB 1005X was also vetoed by Gov. Stitt.

“In clear violation of Oklahoma’s fundamental and statutory law, Enrolled House Bill 1005x purports to extend a single motor vehicle licensing compact without any regard for whether the decade old compact is a fair deal for the State moving forward. Both because this Bill amounts to a circumvention of the executive’s authority to negotiate compacts and because it is not in the State’s best interests, I must veto it.

Even if terms in the Bill were fair for the State, this Bill has other problems, too.

First, this Bill is a byproduct of a body purporting to sit simultaneously in special and regular session. While a special session may have run concurrently with a regular session before; it does not mean such an occurrence is constitutional.

Second, this Bill is unconstitutional pursuant to Article 5, Section 27A because motor vehicle registration and licensing compacts- or for that matter, compacts at all- are not specifically identified in the Call, which is limited “to the consideration of” matters involving the appropriation of funds; the implementation and administration of budget-related funds; and the expenditure of American Rescue Plan Act of 2021 funds.

For these reasons, among others, I have vetoed Enrolled House Bill 1005x.”

Stitt’s veto message for HB 1005x

Choctaw Nation of Oklahoma Chief Gary Batton spoke out after both measures were rejected by the governor.

“Significant majorities in both chambers of the Legislature voted to extend tobacco and vehicle compacts for one year because they provide important, ongoing benefits for the people of Oklahoma. By vetoing these bills, Gov. Stitt has once again put his personal hostility to tribal sovereignty ahead of what is good for the state and what is good for the tribes.

We hope the Legislature will return as expected in June and will override these vetoes to show their continuing support for positive, cooperative relations between the state and tribes.”  

Choctaw Nation of Oklahoma Chief Gary Batton

This isn’t the first time tribal leaders have spoken out regarding legislation rejected by Gov. Stitt.

Earlier this year, Stitt vetoed Senate Bill 429, which prevents schools from banning students from wearing Native American regalia during graduation and school functions.

The Oklahoma Legislature ultimately voted to override that veto, making SB 429 law.

The trouble between the governor’s office and tribal nations has been well documented over the years, beginning with disagreements over tribal gaming compacts and extending into disputes over the McGirt Supreme Court decision.