Two American Indian tribes sued the state Friday, claiming Gov. Brad Henry's office improperly terminated tobacco compacts in an effort to obtain a higher cut from the tribes' cigarette sales.
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The Kaw Nation and the Otoe-Missouria Tribe want a federal judge to invalidate the state's actions.
A spokesman for Henry said the governor's staff would have no comment until the lawsuits can be reviewed.
The lawsuits, filed in Oklahoma City federal court, allege tribes received notice of the compact termination a few days later than required. The 10-year compacts, signed in 1998, required either side to give at least six months' notice of termination, the lawsuits state.
Each tribe's compacts gave the state 25 percent of all applicable taxes. Henry's chief of staff, Gerald Adams, terminated the contracts in order to renegotiate a higher percentage, both lawsuits state.
The lawsuits claim only the governor can terminate the compacts, and Adams lacked that authority.
On Thursday, the Oklahoma Tax Commission contacted the tribes' tobacco suppliers and informed them that the compacts had expired, said attorney Ken Bellmard, who represents both tribes.
That action was an effort to "choke off” the tribe's supply of tobacco "in a brazen attempt to cut off a vital revenue stream and force the tribe to agree to pay the state an unreasonable amount in a new tobacco compact,” the lawsuits allege.
The Otoe-Missouri Tribe has smoke shops in Noble County. The Kaw Nation operates smoke shops in Kay County.
Contributing: Michael McNutt, Capitol Bureau.
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I would really question a vital revenue source so closely tied to death. Why not kill two birds with one stone and build a casino. They are so filled with cigar and cigarette smoke that you can fleece the people and kill them with heart disease and cancer in one fell swoop. Indians=death. Nuff said.
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Leave a comment. Log in below or sign up (it's free).Editor's note: It is not our intent to offer comments on crime or fatality stories.