Removes the Poospatuck Indian Reservation from being recognized as an Indian Tribe in New York State; repealer

Summary of specific provisions

Section 1. Article 10 of the Indian Law is repealed. Subdivision 1 of section III of the state law, as added by chapter 86 of the laws of 2002, is amended to remove the first district of the Poospatuck Indian Tribe from New York. Subdivision 3 of section 121 of the state law, as added by chapter 35 of the laws of 2002 is amended to remove the second district of the Poospatuck Indian Tribe. Subdivision 1 of section 124 of the state law, as added by chapter 35 of the laws of 2002, is amended to remove the Poospatuck Indian Reservation in the First District. Subdivision 18 and paragraph ¸ of subdivision 20 of section 282 of the tax law, as added by section 3 of park K of chap- ter 61 of the laws of 2005, are amended to remove the Poospatuck Indian Tribe. Subdivision 14 and paragraph¸ of subdivision 16 of section 470 of the tax law, as added by section 1 of park K of chapter 61 of the laws of 2005, are amended to remove the Poospatuck Indian Reservation. Para- graph 6 of subdivision (a) of section 1116 of the tax law, as amended by chapter 530 of the laws of 1976, is amended to remove the Poospatuck Indian Nation. Subdivision 2 of section 11-0715 of the environmental conservation law, as amended by chapter 418 o f the laws of 2004, is amended to remove the Poospatuck Indian Tribe. Paragraph 6 of subdivi- sion (a) of section 11-2051 of the administrative code of the city of New York, as amended by chapter 330 of the laws of 1985, is amended to remove the Poospatuck Indian Nation.

Justification

This legislation is being introduced in response to a New York Times investigation of the Poospatuck Indian tribe, which seems to be nothing more than a criminal enterprise. New York State is cheated out of millions of dollars in tax revenues. The article, "Suits Claim Wide Reach of Cigarettes from Tribes" (10/2/2008), details how the Poos- patuck Indian reservation on eastern Long Island is largely responsible for supplying a substantial percentage of illegally sold cigarettes to the bootleg distribution network in New York City. The Poospatuck tribe, which has not received official recognition from the federal Bureau of Indian Affairs, has set up various locations on their reservation - - sometimes amounting to little more than signs on sheds or trees - - to support a bootlegging operation for tax-free cigarettes in NYC.

This criminal enterprise is situated on the 52-acre Poospatuck reserva- tion, near Mastic, N.Y., the closest Indian Reservation to NYC, which until recently had only 279 descendants living on the reservation. In 1996, 406,000 cartons of cigarettes were delivered to the Poospatucks. Last year, the Poospatucks had increased that figure to 11.3 million cartons, according to the state tax department. The reservation now has

approximately a dozen smoke shops, located on a narrow, congested street.

In response to the illegal operation centered on the Poospatuck Reserva- tion, New York City filled a civil suit against eight of the twelve smoke shops on the reservation accusing them of fostering illegal trade by "structuring and concealing bulk sales, assisting in the packing of vans destined for New York City and even making their own bulk deliv- eries off the reservation."

Since the Poospatuck Reservation seems to now amount to little more than a haven for an illegal cigarette bootlegging operation, their status as an officially recognized Native-American Tribe by New York State should be revoked.

Prior legislative history

New Bill

Fiscal implications

Undetermined

Effective date

This act shall take effect immediately.