July 29,2009 

VIA FACSIMILE: (760) 765-0320 

and FIRST CLASS MAIL 

.Johnny I-lernandez, Chairman 

lipay Nation of Santa Ysahel 

P.O. Box 130 

Santa Ysabel, CA 92070 

Re: Stipulated Notices of Violation and SeltIement Agreement # SA-09-32 

Ilcar Chairman Hernandez: 

I have enclosed a copy of thc fully-executed Stipulated Notices of Violation and 

Settlement Agreement # SA-09-32 ("Agreement'". signed by the Chairman of the National 

Indian Gaming Commission ("'NIGC") en July 29,2009. The Agreement rcsolvcs Notice of 

Violation # NOV-09-2 issued on June 8.2009, as well as the other stipulated-to violations, as 

recited on paragraph 8 of the Agreement. 

As a reminder, the first ;t5.000 payment of the civil fine must be received by thc NIGC 

by Friday, August 28,2009, and tI~e check must be payable to the "U.5. Treaswy". 

We appreciate the Tri he's efforts in reaching an amicable resolution of lhese matters. Tf 

you havc any questions, please do not hesitate to contact me. 

Sinccrcly, e 

hrmmdo J. Acosta 

Staff Attorney 

Enclosure 

cc: Cmlyn J. Abeita, Esq. 

VanArn berg, Rogers. Y epa, Abeita & Cromez LLP 

NATlOHAL n~~munlrm's 1441 L St NW, Su11c 91W, Llla~hlnpfon, DC 10005 Tp1 702.532.7003 Fax 702 637.7066 WWW.NI~C.CQV 

REGlaHALOFfICES Portl~nd. OR. Sacramento. CA: Phocnir. A?, 5t Paul. MN.Tulra. OK 
National Indian Gaming Commission 

STIPULATED NOTICES OF VIOLATION 

AND 

SETTLEMENT AGREEMENT # SA-09-32 

INTRODUCTION 

This Stipulated Notices of Violation and Settlement Agreement # SA-09-32 ("Agreement") is 

entered into by and between the IIPAY Nation of the Santa YsabeI Reservation ("Tribe"), a 

federally recognized Indian tribe, and the Chaiman of the NationaI Indian Gaming Cernrnission 

('WIGC'"), relating to thc matters contained in the NIGC Chairman's Notice of Violation # NOV 

09-32, and other violations of NIGC regulations, 25 C.F.R. 9 50 1.1 el scq. 

1. Whereas, JGRA authorizes the NTGC Chairman to issue civil fines for violations of TGRA, 

NIGC regulations, tribal regulations, ordinances, or resolutions approved by the NIGC 

Chairman under 25 U.S.C. 55 2710,2712, and 2713(a)(1$; 

2. Whereas, under 25 C.F.R. 5 573.3{a), the NTGC Chairman may issue a Notice of Violation 

("NOV") to any person for violations of my provision of ERA, NTGC regubtions, tribal 

gaming ordinance, or resolution approved by the Chairman; 

3- Whereas, on June 8, 2009, the NlGC Chairman issued NOV 09-32 to the Tribe for its 

untimely submission of quarterly statements and fees for the entire 2008 calendar year; 

4. Whereas, the Chairman and the Tribe desire to achieve an arnicabIe resolution of NOV 09- 

32; 

5. Whereas, the Tribe stipulates to other violations of NIGC regulations, as set forth below; 

6. Whereas, the Chairman and the Tribe desire to gchieve an amicable resoIution of the 

stipulated-to notices of violation described in paragraph 7, beIow. 

NOTICE 

7. Whereas, thc NtGC Chairman hereby gives notice that the Tribe has also committed othcr 

violations of NIGC regulations, separate from those contained in NOV 09-32; 
8. Whereas, the circumstances of those other violations are: 

A. I'ursuant to 25 G.F.R. 3 57 I. 13, a tribe shaI1 submit to the NIGC a copy of its annual 

Independent audit report within 520 days after the end of each fiscal year of the 

garn ing operation. 

B. 'The end of the 2007 fiscal year for the Santa Ysabel Casino and Resort was March 

3 I, 2008, and therefore, the Tribe was required to submit its annual independent audit 

report to the NIGC by July 29,2008. 

C. The Tribe did not submit its annual independent audit report Tor fiscal year 2007 ta 

the NIGC untiI June 10,2009, 3 17 days late. 

D. Pursuant tn 25 C.F.R. $ 5 14.1, each gaming operation subject to NIGC jurisdiction, 

and not exempt from paying fees pursuant to the self-regulation provisions, are 

required to file with the NIGC a quarterly statement showing its assessable gross 

revenues for the previous calendar year. The quarterly statements are due March 31, 

June 30, September 30, and December 3 1 of each calendar year that the gaming 

operation is subject to NlGC jurisdiction, and sha!l arrive no later tflan the duc date. 

In addition, the same NIGC regulation requires each gaming operation to remit to the 

NICC the fees due each quarter with the quarterly statement. 

E. ?he Tribe" first quarterly statement and payment for calendar year 2009 was due no 

later than March 3 I, 2009. 

F. The Tribe did not submit its first quarterly statement and payment for 2009 to, the 

NIGC untiI June 1 9,2009, 81 days Iatc. 

9. Whereas, the NlGC Chairman acknowledges that, upon receiving NOV 09-32, and prior to 

the execution of this Agreement, the Tribe, in good faith, took affirmative steps to avoid 

future violations as follows: 

A. On June 19, 2009, the Tribe submitted the fee payments for the entire 2009 calendar 

year and the quarterly statement for the first quarter of 2009; and 

B. On June 25. 2009, the Tribe submitted the quarterly statements for the entire 2009 

calendar year. 

10. Therefore, the NIGC Chairman and the Tribe have agreed to execute this Agreement and 

perform in accordance with the following covenants and conditions: 

TERMS OF SETTLEMENT 

I I. This Agrecrncnt Is entered into pursuant to 25 C.F.R. 4 575.6Cb) and shall be effe~tive upn 

the date that it is signed by the last party to sign this Agreement ("'effective date"). 
12. The Tribc awes that, by law, it was required to submit timely quarterly statements and 

fees to the NIGC for the Santa Ysabel Resod and Casino during thc 2008 calendar year, 

and the Tribe agrees that it submitted said quarterly statements and fees in an un~imeIy 

fashion; 

13. The Tribe agrees that its failure to submit 2008 quarterly statements and fee payments for 

its gaming operation in a timely fasl~ion is a violation ofNlGC regulations: 

14. The Tribe agrees that, by law, it was required to submit a timely quarierIy statement and 

fee payment io the NIGC for the Santa YsabeI Resod and Casino on March 3 1,2009, and 

the Tribc agrees that it submitted said quarterly statement and fee payment in an untimely 

fashion; 

15. The Tribe agT,.reus that, by Jaw, it was required to file its FY 2007 muaI audit rcpott to the 

NIGC for the Snnta Ysabel Resort and Casino on July 29,2008, and thc Tribc agrees that it 

submitted said audit report in an untimely fashion; 

T 6. The Tribe agrees that its faiIure to file its FY 2007 audit report and to submit its March 3 1, 

2009 quartcrIy statement and fee payment in a timely fashion are vioIations of NIGC 

regutat ions; 

17. The Tribe agrees to pay a civil fine of twenty thousand dollars ($20,000) for the matters set 

forth in NOV 09-32. and those set forth in paragraph 7, above. 

18. The first five thousand ($5,000) of the civil fine is due to the NIGC within thirty (30) 

calendar days of the effective date of this Agreement. The check must be made payable to 

the "U.S. Treasury." 

1 9. The NIGC Chairman agrees to forgive fifteen thousand dollars ($1 5,000) of the civil fine in 

the following increments if the Tribe submits timely biannual fees and statements, and the 

2009 fiscal year audit report. by the requisite deadlines below: 

A. $5,000 will he forgiven if a biannual statement and fee payment for the Santa Ysabel 

Resort and Casino is received by the NIGC by the regulatory due date of March 1, 

2010; 

B. $5,000 will be forgiven if the 2009 fiscai year audit report for the Santa Ysabel Resort 

and Casino is received by the NIGC by the due date of July 29,20 10; and 

C. $5,000 will be forgivcn if a biannual statement and fee payment for the Sanb Ysabel 

Resort and Casino Is received by the NTGC by the regulatory due date of August I, 

201 0. 

20. 7%~ Tribe agrees to piacc five thousand dollars ($5,000) in a training fund for the purposes 

of training its tribal gaming commission and gaming employees, and to comply with 

paragraphs 23 through 28 of this agreement to that end. 
The Tribe agrees that if it fails to comply with this Agreement, a civil fine of thirty 

thousand dollars ($30,000) will become fuIly due and payabIc on the date of the breach. 

offset by any civil fine that the Tribc may have paid pursuant to this Agreement. Jn such a 

circumstance. thc NIGC will issue a written notice to Tribe pursuant to NIGC: debt 

collection regulations at 25 C.F.R. part 513. ?he Tribc further agrees that the NIGC and/or 

the U.S. Treasuy may proceed against the Tribe to collect the debt of the thirty thousand 

dollar ($30,000) civil fine, less any amounts already paid, and may assess interest, 

penalties, and/or administrative costs frarn the date of the breach of this Agreement as 

provided in 25 C.F.R. 5 51 3.5. In such circumstance, the Tribe agrecs to waive any rights 

to an oral hearing under 25 C.F.R. 3 513.6, but the NIGC shall provide the Tribe with a 

reasonable opportunity ta submit written material to support a request to reconsider the 

determination that the Tribe is in breach of this Agreement or to challenge the method by 

which the NlGC calculated the debt. 

22. The Tribe apes upon execution of this Agreement to waive the right to further review of 

matters addressed in this Agrecmcnt, incIuding a11 rights to appeal to the full Commission 

as set forth in 25 C.F.R. part 577, and judicial review pursuant to 25 U.S.C. 9 2714. 

USE OF TRAINING FUND 

23. As set forth in paragraph 20 of this Agreement, the Trihc agrecs to pIace five thousand 

dollars ($5,000) in a fund for training. The five thousand dollars ($5,000) must be paid to 

the fund in two instaIlments. each for two thousand five hundred dollars ($2,500). The first 

installment is due August 15, 2009. Thc scwnd installment is due September 15, 2009. 

Thc Tribe agrees to submit documentation to the NIGC within thirty (30) calendar days of 

each due date that it has fulfilled its payment obligations to the fund. 

24. The Tribe agrees that the fund created through this Apeement will be restricted to use only 

for training regulators or employees of'the Santa Ysabel Resort and Casino. 

25. The Tribe agrecs that it wi31 develop a training pIan to use all, the monies in she fund and 

that it will submit the plan to NIGC by August 15,2009. 

26. The Tribe agrees to submit documentation for each dollar spent on training. up to five 

thousand dollars ($5,000) as set forth of paragraph 20 of this Agreement, to ,the NTGC 

within fourteen (14) days of incurring the expense, and that if it does not submit proper 

documentation to NIGC, it may not use monies from the training fund to pay the expense. 

27. The Tribe agrees that a11 training paid for with monies from this fund must be completed no 

latcr than December 3 1, 2009. 

28. The Tribe further agrees that it will properly spend and submit appropriate documentation 

to NIGC for a11 training fund dolIars by January 15, 201 0, as sct forth in paragraplls 23-27 

of this Agreement. 
hDDlTIONA I, COVENANTS 

29. This Agreement constitutes the entire aycemcnt herween the X\;IGC and the Tribe relating 

to the cnforcernent matter scE fonh at tho hcginning of this Agmcment. Any modification 

or waiver of any term of his Agreerncnt must be in \t.riting and signed by both parties. 

30. l71e Tribe agrees that the stipulated notices of violation shall bc deemed a final order of the 

Cozumission, and final agency actions pursuant to 25 C.F.R. $577.9(d). 

31. The Trik stipulates that this Ayecmcnt shall be deemed to bc zhe subject of a find ordcr 

of the hTGC under 25 C.F.R. 9 575.4(~)(1). and a final agency action pursuant to 25 C.F. R. 

577.9(d). 

32. The NIGC Chaiman and the Tribe expressly agree and ackno~vtedgc that time is of the 

essence in this hpement. The recitals herein shall be bindin2 upon the pxtlcs. their 

agents. heirs. pcrsanal represenratives. successors and assigns. 

3. The padm agree that aRer the rFective date. this Agmmcnl shall be a public document 

and may hc pub1 ished or disclosed by either prty. 

34. This A,mernent may be cxccutcd on one or morc counterparts and each shall constitute an 

original. A signature produced by facsimile shall be deemed to be an original signature and 

shat 1 he effective and bindin2 for purpose of thc Agreement. 

-- _IIIPAY Nation of thc San ta YsakI Rescntation Yatidnal Indian aming Cowmission 

: 1 / 

/' + Cr,o: p I :\, 

P: 

Joirnny 3 iernandez. Chairman 

Date: 7h$/01