TABLE MOUNTAIN RANCHERIA

TRIBAL GAMING COMMISSION

February 11, 2011

Chairwoman Tracie L. Stevens
National Indian Gaming Commission
1441 L St. N.W., Ste 9100
Washington D.C. 20005

Re: Commentary on Commission Regulations
Dear Chairwoman Stevens,

The Table Mountain Rancheria Gaming Commission would like to thank the
National Indian Gaming Commission (“NIGC”) for providing Tribal
Governments, Tribal Gaming Commissions and the public with the opportunity to
offer comments on issues identified in the NIGC’s Notice of Inquiry.

As Tribal Gaming regulators of our Tribal Government’s Gaming Operation, we
have a great interest in protecting the integrity of Indian Gaming and look forward
to this opportunity of sharing our comments and regulatory expertise in the spirit
of fostering a good government-to-government relationship with the NIGC.

With regards to Part 542 — Class III Minimum Internal Controls, the NIGC’s
Class III MICS have had a positive impact on the Tribal Gaming Industry. The
published MICS for Class III has created uniformity for Tribes whose State has
adopted NIGC’s Class III MICS as its base standard in its Tribal-State Compact.
The NIGC Class III MICS had facilitated effective and efficient audits of our
casino by the external auditors.

If the NIGC were to eliminate its Class III MICS, Tribes may find themselves in a
23736 protracted fight over a base standard for the Tribe’s gaming operation. It also has
the potential of causing most, if not all, California Tribes to be out of compliance

Sky Harbour Road ith their Tribal-State Compact.

Post Office
Box 410 We urge the NIGC to continue with a review and updating process of the Class III
MICS. Most of the proposed changes are extremely necessary for operations,
Friant control and efficiencies.
California
This review and updating process could be accomplished through a Tribal
93626 Advisory format, with updates disseminated via NIGC bulletins or advisory
(559) 822-2890 memorandums. The costs for the review and update process can be shared by

those Tribes who elect to participate in a Class III] MICS Tribal Advisory
Fax Committee.
(559) 822-6417


With respect to the other items that were indentified in the NIGC’s Notice of
Inquiry, we believe that the following areas should be given priority.

Priorities

e Part 502-Net Revenues & Management Contracts: Table Mountain
Rancheria believes that the NIGC does not have the authority to change the
definition of “Net Revenue” that Congress set forth in 25 U.S.C. § 2707(9) J

Notwithstanding the above, it is our belief that the NIGC may want to
consider implementing regulations or advisory bulletins that clarifies the “Net
Revenue” definition to ensure that it is consistent with GAAP principles. This,
however, should be a low priority for the Commission.

With respect to Management Contracts, it is our position that the definition of
Management Contract should not be expanded to include ancillary contracts
or any other type of contract, such as slot lease agreements.

Expanding the definition of Management Contract to include ancillary and
other types of contracts like slot lease agreements would not only infringe on
the Tribe’s sovereignty, but would also interfere with the Tribe’s ability to
make its own independent business decisions.

e Part 514-Fees: The Tribal Gaming Commission prefers to keep fees for
fingerprints separate and the responsibility of the Tribal Gaming Commission.

Changing the definition of gross gaming revenue to be consistent with GAAP
would be beneficial and would fulfill the goal of the NIGC in making the
annual fee easier to calculate.

e Part 518-Self Regulation: The Tribal Gaming Commission agrees that the
current process is burdensome and should be re-written to simplify the process
of obtaining a certificate of self regulation.

e Part 523-Gaming Ordinances: The Tribal Gaming Commission believes that
this is obsolete and should be removed.

e Part 537-NOV: The Tribal Gaming Commission agrees with establishing the
change to a Late Payment System in lieu of a Notice of Violation. We also
recommend that an appeal process be established that would allow for the
removal of an NOV once the violation is corrected or resolved.

* Congress adopted IGRA that defines net revenue as: ("net revenues" means gross
revenues of an Indian gaming activity less amounts paid out as, or paid for, prizes
and total operating expenses, excluding management fees.) 25 USC §2703(9)


Part 556-Backgrounds and Licensing: The Tribal Gaming Commission
agrees that the pilot project should become regulation. We agree that Tribal
Gaming Commissions should be able to fingerprint vendors, consultants and
other non-key employees but not have to submit to the notification process as
with key employees or primary management officials.

Part 559-Facility License: The Tribe and Tribal Gaming Commission have
adopted stringent provisions for its facility license that would ensure the
gaming operation’s compliance with our Tribal-State Compact and our Tribal
Laws. Any further requirements by NIGC would be duplicative, unnecessary
and burdensome. The Tribal Gaming Commission issues the Facility License
based, in part, on its stringent provisions.

Proposed New Regulations

Tribal Advisory Committees should consist of delegations that are divided by
region. There should also be two separate working groups that address and
work on regulations for Class II and Class III Gaming for each region.

Any proposed changes to regulation should go through the Tribal Advisory
Committee process. The process should include a review and comment period
in an easily accessible manner for all tribes.

Proposed changes to regulation should not create additional requirements or
burdens for the Tribes. However, in cases where a Tribe is in need of
“assistance” and “review” these services may be offered by the NIGC on a fee
basis. These services could include fingerprint services for vendors and
collateral contract agreements for review. These additional submissions by
the Tribe and reviewed by the NIGC would be in the form of a fee base
service provided by the NIGC and not as a matter of requirement.

In closing, we would like to congratulate the NIGC for taking on this long
overdue enormous task. We look forward to a continued strong government-to-
government working relationship with the NIGC. We appreciate the National
Indian Gaming Commission’s respect and deference to the Sovereignty of the
Nation’s Federally Recognized Tribes.

Thank you, 9 | Tec

Commission

Table Mountain Rancheria Tribal Gaming Commission