Okla. Stat. tit. 68, § 68-500.63

A. The Legislature hereby finds:

1. Some Indian tribes within the State of Oklahoma are engaged

in the retail sales of motor fuels at locations within their

sovereign territories;

2. Both Indian tribes and the government of the State of

Oklahoma impose motor fuel taxes;

3. By reason of the ruling of the United States Supreme Court

in "Oklahoma Tax Commission v. Chickasaw Nation", 115 S.Ct. 2214

(1995), the State of Oklahoma does not now collect state motor fuel

taxes on sales made by Indian tribes. The Legislature hereby

acknowledges that, as a matter of federal law, the existing law of

the state may not be used to levy or enforce taxes on certain sales

of motor fuel made by Indian tribes;

4. It is mutually beneficial to the State of Oklahoma and the

federally recognized Indian tribes of this state, exercising their

sovereign powers, to enter into contracts as set forth in subsection

B of this section, for the purpose of limiting litigation on the

issue of state government taxation of motor fuel sales made by

Indian tribes. It is in the interest of this state to resolve

disputes between the state and federally recognized Indian tribes on

this issue by entering into contracts under which the Indian tribes

are in part compensated for any tribal motor fuel tax revenues the

Indian tribes might lose by reason of the adoption and enforcement

of this act. Such mutually beneficial agreements allow both the

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State of Oklahoma and the Indian tribes to benefit from tax revenues

from sales of motor fuel on Indian country.

B. In lieu of the refund procedure provided in subsection E of

Section 14 of this act for the exemption provided for sales of motor

fuels by an Indian tribe to its tribal members as provided in

paragraph 10 of Section 10 of this act, an Indian tribe, on its

behalf and on behalf of its members, may elect to enter into a

contract with the State of Oklahoma as provided in subsection C of

this section.

C. The State of Oklahoma hereby makes the following offer to

all federally recognized Indian tribes within this state which, if

accepted, will constitute a contract between this state and the

accepting tribe or tribes:

1. The accepting tribe shall agree that it will not challenge

the constitutionality of this act or the application of this act to

motor fuel sales on Indian country in any court or tribunal and

shall include all state motor fuel taxes and assessments in the

price of its motor fuel sales, including but not limited to sales to

tribal members on tribal land. The accepting tribe shall agree as a

material term of its agreement to abide with all parts of this act

in its entirety and shall agree not to procure, or attempt to

procure, motor fuel for sale in Indian country on which the tax

imposed by this act has not been precollected as provided for

herein;

2. In consideration of this agreement by the tribe or tribes,

the State of Oklahoma, through the Oklahoma Tax Commission, shall

withhold a percentage of its motor fuel tax revenues, as specified

in paragraph 3 of this subsection, which shall be apportioned

quarterly to the accepting Indian tribes. The funds apportioned as

provided herein are deemed to be in lieu of tribal tax revenues that

the tribes would otherwise have collected on sales of motor fuels.

The first such apportionment shall be made not later than February

1, 1997, which shall be for motor fuels taxes received by the Tax

Commission during the last calendar quarter of 1996, and subsequent

apportionments shall be made no later than thirty (30) days after

the end of each calendar quarter thereafter. The first such

apportionment shall be made to all tribes which have elected and

accepted the terms of the contract specified in this subsection

before October 1, 1996. Any tribe electing and accepting the terms

of the contract specified in this subsection on or after October 1,
uent

apportionments shall be made no later than thirty (30) days after

the end of each calendar quarter thereafter. The first such

apportionment shall be made to all tribes which have elected and

accepted the terms of the contract specified in this subsection

before October 1, 1996. Any tribe electing and accepting the terms

of the contract specified in this subsection on or after October 1,

1996, shall be eligible to receive quarterly apportionments

beginning with the calendar quarter following such election;

3. The percentage of state motor fuel tax and assessment

revenues collected pursuant to the provisions of this act which

shall be withheld monthly and apportioned quarterly to accepting

Indian tribes shall be as follows:

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a. for the portion of the fiscal year beginning July 1,

1996, for which this act is effective, three percent

(3%),

b. for the fiscal year beginning July 1, 1997, four

percent (4%), and

c. for the fiscal year beginning July 1, 1998, and for

each fiscal year thereafter, four and one-half percent

(4 1/2%);

4. The funds withheld by the Oklahoma Tax Commission pursuant

to paragraph 3 of this subsection shall be apportioned quarterly to

each accepting Indian tribe as follows:

a. each accepting Indian tribe shall receive a base

quarterly sum of Six Thousand Two Hundred Fifty

Dollars ($6,250.00). If the gross state motor fuel

tax revenues collected do not exceed One Hundred

Million Dollars ($100,000,000.00) in any fiscal year,

the provisions of this subparagraph shall not be

applicable,

b. to those tribes who were engaged in the sales of motor

fuels during the fourth calendar quarter of the

calendar year 1996:

(1) for the fiscal year beginning July 1, 1996, an

amount equal to ten cents ($0.10) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(2) for the fiscal year beginning July 1, 1997, an

amount equal to eight cents ($0.08) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(3) for the fiscal year beginning July 1, 1998, an

amount equal to six cents ($0.06) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(4) for the fiscal year beginning July 1, 1999, an

amount equal to four cents ($0.04) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996, and

(5) for the fiscal year beginning July 1, 2000, and

thereafter for the duration of the contract, an

amount equal to two cents ($0.02) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996, and

c. after determination of amounts to be apportioned

pursuant to subparagraphs a and b of this paragraph,

the remainder shall be apportioned according to the

proportion the accepting Indian tribe's total Oklahoma

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resident membership bears to the total Oklahoma tribal

resident membership of all accepting Indian tribes;

5. The funds withheld by the Oklahoma Tax Commission and

apportioned quarterly pursuant to the provisions of this section

shall be used by the accepting tribe exclusively for tribal

government programs limited to highway and bridge construction,

health, education, corrections, and law enforcement;

6. In the event, at any time during a calendar quarter, an

accepting tribe selling motor fuel fails to procure, for whatever

reason, motor fuel for sale in Indian country on which the tax

imposed by this act has been precollected as provided in this act,

or fails, for whatever reason, to include all state motor fuel taxes

and assessments in the price of its motor fuels sales including, but

not limited to, sales to tribal members on Indian country, the tribe

shall not be eligible to receive an apportionment under this section

for that calendar quarter. In such instances, the Tax Commission
his act has been precollected as provided in this act,

or fails, for whatever reason, to include all state motor fuel taxes

and assessments in the price of its motor fuels sales including, but

not limited to, sales to tribal members on Indian country, the tribe

shall not be eligible to receive an apportionment under this section

for that calendar quarter. In such instances, the Tax Commission

shall notify the tribe that its apportionment shall be withheld and

the reasons therefor. The tribe shall have six (6) months from the

date of issuance of the notice under this paragraph to file a legal

action contesting the decision of the state to withhold its

apportionment. The amount withheld from the tribe pursuant to the

provisions of this paragraph shall not be apportioned and shall be

withheld from all tribes until the expiration of the six-month

limitation period and during the pendency of any legal action filed

pursuant to this paragraph.

7. Each tribe shall provide to the Oklahoma Tax Commission an

audit of its tribal membership or citizenship rolls certified by a

certified public accountant showing the correct number of its

respective tribal members by blood, excluding members of bands,

tribal towns and other tribes or affiliates which may be included on

its rolls but who are ineligible for tribal services and benefits.

Only tribal members who reside within the State of Oklahoma shall be

included in the audit. Citizens of tribal towns, bands of Indians

and tribes who are also counted in the audits as members of another

tribe participating in the contract provided for in this section and

eligible to receive services from the tribe shall not be eligible to

also participate under this section. Any tribal member who is also

a member of another tribe may only be counted once for purposes of

determining tribal membership. Those tribes who were engaged in the

sales of motor fuels during the fourth calendar quarter of calendar

year 1996 shall also provide certified audited reports on or before

January 10, 1997, showing the quantity of motor fuels sold by them

during that period. For all tribes electing to accept the terms of

the contract specified in this subsection before October 1, 1996,

the membership audit report shall be submitted on or before October

1, 1996, and not later than July 1 of each year thereafter. The

information provided shall be the basis from which the Oklahoma Tax

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Commission shall calculate the distribution of the funds withheld

pursuant to the provisions of this section. The State of Oklahoma

shall be absolved of any liability if the information submitted

pursuant to the provisions of this section is not correct. If such

information is not submitted by an accepting or participating tribe

by October 1, 1996, or in subsequent years by July 1, the Tax

Commission shall calculate the distribution of the funds on the

basis of the information previously submitted by that tribe.

Notwithstanding the provisions of Section 205 of Title 68 of the

Oklahoma Statutes, copies of the audits and reports shall be made

available to any requesting participating tribes;

8. Acceptance of the offer contained in this section shall be

made in writing to the Oklahoma Tax Commission, signed by the chief

executive officer of the tribal government, stating that the tribe

accepts, without condition, the terms of this section, and for the

sole purpose of resolving disputes arising out of a contract entered

into pursuant to the provisions of this section, the tribe waives

its immunity from suit and liability in state and federal court. In

addition, proof of adoption of an ordinance or resolution by the

governing body of the tribe accepting without condition the terms of

this section, and an effective waiver of its immunity, as specified

herein, shall be required. Notwithstanding the enactment of any
pursuant to the provisions of this section, the tribe waives

its immunity from suit and liability in state and federal court. In

addition, proof of adoption of an ordinance or resolution by the

governing body of the tribe accepting without condition the terms of

this section, and an effective waiver of its immunity, as specified

herein, shall be required. Notwithstanding the enactment of any

future legislation on this topic, the term of the contract created

by the acceptance of this offer shall extend through and include

fiscal year 2016 and shall be renewed for successive ten-year terms

unless a tribe notifies the State of Oklahoma of its intention not

to participate further or the State of Oklahoma notifies the tribe

of its intent not to participate further. Notification by the tribe

shall be made in the same manner as required by this paragraph for

acceptance of the offer to participate in the contract.

Notification by the state shall be made by the Governor in writing

to the tribe, and such notification shall be filed with the

Secretary of State;

9. The State of Oklahoma hereby waives its immunities from suit

granted by the Eleventh Amendment to the Constitution of the United

States for the sole purpose of resolving disputes arising out of a

contract entered into pursuant to the provisions of this section;

10. Both the State of Oklahoma and the accepting Indian tribe

recognize, respect and accept the fact that under applicable laws

each is a sovereign with dominion over their respective territories

and governments. By entering into this proposed intergovernmental

contractual relationship, neither the state nor the tribe has, in

any way, caused the other's sovereignty to be diminished;

11. Members of accepting tribes shall not be individually

eligible for the exemption provided in paragraph 10 of Section 10 of

this act. Apportionment of funds to accepting tribes pursuant to

the provisions of paragraph 4 of this subsection are in part in lieu

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of the refunds to individual tribal members as provided in paragraph

10 of Section 10 of this act. Indian tribes shall continue to be

eligible for the tribal government exemption provided in paragraph 7

of Section 10 of this act;

12. A tribe accepting the offer contained in this section

agrees to hold the state harmless from suit by its individual tribal

members and further agrees that, if a final judgment is rendered

against the state pursuant to such a suit, that the tribe will

reimburse the state for the amount of any such judgment paid and any

costs incurred by the state pursuant to such suit. If a tribe fails

to make such reimbursement within ninety (90) days of demand by the

Oklahoma Tax Commission, the state shall withhold such amount from

the apportionment of funds to the tribe pursuant to the provisions

of paragraph 4 of this subsection; and

13. A tribe accepting the offer contained in this section

agrees not to license or otherwise authorize an individual tribal

member or other person or entity to make sales of motor fuel in

violation of the terms of the contract.