ORDINANCE NO. 96-51)0-1)

AN ORDINANCE OF THE SCOTTS VALLEY BAND OF POMO

INDIANS AUTHORIZING AND REGULATING GAMING ON

THE SCOTTS VALLEY INDIAN RESERVATION

The Scotts Valley Band of Porno Indians, a federally recognized

Indian Tribe (Tribe), as the beneficial owner of the Scotts

Valley Indian Reservation, and acting through its Tribal Council in

the exercise of its inherent sovereign power to enact ordinances

and otherwise safeguard and provide for the health, safety and

welfare of the Scotts Valley Indian Reservation (Reservation) and

the members of the Tribe, hereby enacts this ordinance which shall

hereinafter be cited as the Scotts Valley Gaming Ordinance of 1996

(Ordinance) .

This Ordinance and any regulations promulgated

thereunder shall constitute the entire gaming regulations for the

Tribe.

Section 1. Findings and Policy

This Ordinance is adopted by the Tribal Council, pursuant to

its authority granted under the Tribes Constitution, for the

purpose of establishing the terms for gaming on the Reservation for

tribal governmental and charitable purposes, and to develop,

operate, and regulate such gaming consistent with the findings

herein and in conformity with the federal Indian Gaming Regulatory

Act (25 U.S.C. § 2701 et seq (IGRA)) and the regulations

promulgated thereunder.

The Tribe finds that:

a. Gaming on its Reservation is a valuable means of

generating revenues that are needed for economic development, to

promote tribal self-sufficiency, economic development, employment,

job training, and a strong tribal government, and to fund and

ensure essential social programs and services;

b. The Tribe desires to conduct certain forms of gaming to

provide needed revenues to the Tribe, and to regulate and control

such gaming in a manner that will protect the environment, the

Reservation, the health, security and general welfare of the Tribe,

the players, and the community; and

c. The Tribe desires to own all gaming on tribal lands, and

to manage and regulate such gaming in a manner that will adequately

address such special interests and needs of the Tribe.

Section 2. Ownership of Gaming

The Tribe shall have the sole proprietary interest in and

responsibility for the conduct of any gaming operation facilities

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and/or enterprise(s) authorized by this Ordinance, except to the

extent the Tribe may contract with and license a person or entity

to, operate or manage the enterprise pursuant to the provisions of

IGRA and the regulations promulgated thereunder, or as otherwise

permitted by law.

Section 3. Definitions

Unless specified otherwise, the terms used herein shall have

the same meaning as in IGRA, including but not limited to referenc

es to Net Revenues, Class I, Class II, and Class III

gaming, and except for references to Commissioners, Commission,

or Gaming Commission which shall mean the Scotts Valley Gaming

Commission or its Commissioners, established and described herein.

a. Closely Associated Independent Contractor shall mean

any contractor that shares common ownership, officers or directors

with any management principal or person related thereto.

b. Gaming shall mean an activity in which a person stakes

or risks something of value on the outcome of a contest of chance

or a future contingent event, not under his or her control or

influence, upon an agreement or understanding that the person, or

someone else, will receive something of value in the event of a

certain outcome, but shall not include bona fide business transac

tions.

c. Gaming Activities shall mean any Class I, Class II, or

Class III gaming activity conducted by or under the jurisdiction

of the Tribe.

d. Gaming Commission shall mean the Scotts Valley Gaming

Commission, as established herein to monitor the Gaming Activities,

investigate wrongdoing, conduct background investigations, issue

licenses, and perform other duties as required for the regulation

of Gaming on the Reservation.

e. Gaming Contractor shall mean any person or entity that

supplies gaming devices or other gaming equipment, personnel, or

services (including gaming management or consulting services) to

any gaming activity or enterprise.

f. Gaming Enterprise shall mean any gaming business,

event, enterprise or activity conducted by or under the jurisdic

tion of the Tribe.

g. Key Employee shall mean a person who performs one or

more of the following functions: bingo caller, counting room

supervisor, chief of security, custodian of gaming supplies or

cash, floor manager, pit boss, dealer, croupier, approver of

credit, or custodian of gaming devices including those persons with

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July 12. 1996 2
access to cash and accounting records within such devices. If not.

otherwise included, any other person whose total cash compensation

is in excess of $50,000 per year, and the four (4) most highly

compensated persons in the Gaming Enterprise are included in the

definition of key employees. At the discretion of the Gaming

Commission, other positions or persons may be included under and

subject to the requirements for key employees.

h. National Indian Gaming Commission (NIGC) shall mean

the commission established under IGRA.

i. Net Revenues shall mean gross gaming revenues from all

Gaming Activities of a Gaming Enterprise, less amounts paid out as,

or paid for, prizes and less total gaming-related operating

expenses, excluding management fees.

j. Person shall mean any natural person or entity,

including but not limited to corporations, partnerships and trusts.

k. Primary Management Official shall mean the person who

has management responsibility for a management contract; any person

who has authority to hire and fire employees or to set up working

policy for the Gaming Enterprise; or the chief financial officer or

other person who has financial management responsibility. At the

discretion of the Gaming Commission, other positions or persons may

be included under and subject to the requirements for primary

management officials.

1. Related to shall refer to persons who are related as a

father, mother, sister, brother, husband, wife, son, and daughter.

m. Reservation shall mean all lands under the jurisdiction

and control of the Tribe.

n. State shall mean the State of California.

o. Tribal Council shall mean the governing body of the

Tribe, as set forth in the Tribes Constitution.

p. Tribal Court shall mean any court established by the

Tribe to hear disputes or, if there is none that can exercise

jurisdiction, then the Tribal Council.

q. Tribal Member shall mean any duly enrolled member of

the Tribe.

Section 4. Gaming Commission

a. Establishment of Gaming Commission There is established

by the Tribe a Commission, acting under the authority of the Tribe,

to be known as the Scotts Valley Gaming Commission. The Gaming

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Commission shall be composed of five (5) persons who would

themselves qualify for licensing under this Ordinance, and shall be

appointed by the Scotts Valley Tribal Council. At least two

members of the Commission shall be enrolled members of the Tribe.

b. Disgualifications for Office The following persons may

not serve as Commissioners:

(1) Employees of any Gaming Enterprise on the

Reservation;

(2) Persons related to any Gaming Contractor

(including any principal thereof or Closely Associated

Independent Contractor) ; and

(3) Persons who would not be eligible to be

officers of the Tribe pursuant to the Tribes Constitu

tion.

c. Terms of Office The Tribal Council shall appoint three

members of the Tribal Gaming Commission for an initial term of

three (3) years. The remaining members of the Commission shall be

appointed by the Tribal Council for an initial term of four (4)

years. Thereafter all terms of the Commissioners shall be four (4)

years.

d. Removal from Office

(1) Commissioners may only be removed from office before

the expiration of their terms by the Tribal Council for

neglect of duty, misconduct, malfeasance, failure to pass the

drug test required by Section 4 (d) (2) below, or other acts

that would render such persons unqualified for such duties or

for licerisure hereunder. Commissioners may not be removed for

exercising their discretion or judgment or for how they voted

on a particular issue. An affirmative vote of at least four

(4) members of the Tribal Council, taken in an open meeting

after a duly noticed hearing at which the member charged with

misconduct shall have the right to hear and present evidence

concerning his/her removal, shall be required to remove a

member of the Commission. At the request of the member whose

removal is at issue, the hearing may be held in executive

session. The Tribal Council also may be elect to receive in

executive session any evidence public disclosure of which

might compromise any on-going law enforcement investigation,

land acquisition for the Tribe or negotiations by the Tribe

with a third party.

(2) Every Commissioner shall, as a condition of accept

ing the office, execute a written consent form, approved by

the Tribal Council for that purpose, agreeing to submit to

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random drug testing during the Commissioners term of office.

The Tribal Council may, at any time, request, by a majority

vote, that a Commissioner submit to a drug test, the nature of

the test, and the type of drugs tested for shall be determined

by the Tribal Council. If a Commissioner refuses to partici

pate in the drug test, notwithstanding Section 4(d) (1) above,

the Commissioners position on the Gaming Commission shall

automatically be deemed vacant, as if the Commissioner had

resigned, and the Tribal Council shall appoint a new person to

serve out the remaining term of the Commissioner whose

position was declared vacant. If a Commissioner tests

positive for an illegal drug during his or her term of office,

the Tribal Council may remove the Commissioner as provided for

in Section 4(d) (2) above.

e. Quorum Three (3) members of the Gaming Commission shall

constitute a quorum.

f. Officers and Duties The Gaming Commission shall select,

by majority vote, a Chairman, Vice-Chairman and Secretary. The

Chairman shall preside over meetings of the Gaming Commission and

the Vice-Chairman shall preside in absence of the Chairman. The

Secretary shall record in writing the minutes of all Gaming

Commission meetings and all official actions taken by the Gaming

Commission.

g. Voting All actions of the Gaming Commission shall be

taken by majority vote. The Commission Chairman may vote on any

issue.

h. Meetings Meetings shall be held at least once per

month, on the first Saturday of the month at the Tribes primary

meeting facility. Additional meetings shall be held as called by

the Chairman or by at least two (2) other Commissioners. Notice of

meetings shall be given in writing to each Commissioner, served by

first class mail or personal delivery at least five (5) business

days prior to such meeting. Meetings may be called at any time, by

any means, with unanimous consent of the Commissioners.

i. Compensation for Serving The Tribal Council shall

determine and authorize the compensation to be paid to Commission

ers by adoption from time to time of a resolution based on a

determination of time required to be expended upon Commission

duties and the qualifications of the appointed Commissioners.

j. Powers and Duties

The Gaming Commission shall have the power and duty to:

(1) Inspect, examine and monitor Gaming Activities,

including the power to demand access to and inspect, examine,

photocopy and audit all papers, books and records respecting

such Gaming Activities;

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July 12. 1996 5
(2) Investigate any suspicion of wrongdoing in connec

tion with any Gaming Activities;

(3) Conduct, or cause to be conducted, such investiga

tions as may be necessary to determine in connection with any

Gaming Activities, compliance with law or this Ordinance or

any contracts, agreements, goods, services, events, incidents,

or other matters related to Gaming Activities;

(4) Conduct, or cause to be conducted, background

investigations regarding any person in any way connected with

any Gaming Activities and issue licenses to, at minimum, all

Key Employees and Primary Management Officials according to

requirements at least as stringent as those in 25 C.F.R. parts

556 and 558;

(4) Hold such hearings, sit and act at such times and

places, summon persons on the Reservation to attend and

testify at such hearings, take such testimony, and receive

such evidence as the Gaming Commission deems relevant in

fulfilling its duties;

(5) Administer oaths or affirmations to witnesses

appearing before the Gaming Commission;

(6) Implement and administer a system for investigating,

licensing and monitoring employees and others connected with

Gaming Activities, as described below, including the issuance

of licenses to gaming facilities, individuals and entities as

required under this Ordinance and IGRA;

(8) Hear patron complaints against the gaming establish

ment, in accordance with the procedures established in this

Ordinance;

(9) Subject to the appropriation of funds by the Tribal

Council, adopt a budget to finance the operations of the

Gaming Commission including but not limited to the employment

of such staff and support services as reasonably required to

fulfill its responsibilities under this Ordinance; compensa

tion of such employees shall be limited to that which is

comparable to compensation paid to persons performing similar

duties in other governmental gaming regulatory agencies;

(10) To the extent required, comply with any reporting

requirements established under a tribal-state compact to which

the Tribe is a party and other applicable law, including the

IGRA;

(11) Promulgate and issue such regulations as it deems

appropriate, in order to implement and enforce the provisions

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July 12. 1996
of this Ordinance including, but not limited to, adopting

rules of procedure governing how its meetings will be con

ducted;

(12) Promulgate regulations establishing minimum stan

dards for the operation of any Gaming Activities conducted on

the Reservation including but not limited to auditing,

internal fiscal controls, technical standards for electronic

gaming and describing and establishing rules for each Class II

or Class III game authorized to be conducted on the Reserva

tion, and no form of such gaming may be conducted on the

Reservation without the prior approval of the Gaming Commis

sion;

(13) Carry out such other duties with respect to Gaming

Activities on the Reservation as the Tribal Council shall

direct from time to time by amendment to this Ordinance or

adoption of a written policy resolution;

(14) Levy a tax or fee on Gaming Activities and appli

cants for gaming licenses to cover the cost of conducting

background investigations, issuing gaming licenses to persons

engaged or wishing to engage in Gaming Activities on the

Reservation, and funding the operation of the Commission; and

(15) Levy fines for violations of this Ordinance or the

Gaming Commissions regulations.

k. Annual Reports On or before April 30th of each year,

the Gaming Commission shall provide to the Tribal Council an Annual

Report summarizing its activities during the prior twelve (12)

month period ending on December 31st, and accounting for all

receipts and disbursements. The Tribal Council shall cause copies

of the Annual Report to be made available to Tribal Members within

thirty (30) days after receipt.

1. Other Reporting Requirements As required, the Gaming

Commission shall comply with any reporting requirements established

under a tribal-state compact to which the Tribe is a party, and

other applicable law, including the IGRA and regulations promulgat

ed thereunder.

Section 5. Permitted Gaming Activities

a. Unauthorized Gaming Prohibited All Gaming Activities on

the Reservation (whether Class I, II or III) are prohibited except

as expressly authorized under this Ordinance.

(1) Class I Gaming Class I Gaming Activities are

hereby permitted to the extent consistent with tribal custom

and practice. The Gaming Commission may prohibit and prevent

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any conduct which is claimed to be Class I gaming if the

Tribal Council finds that such conduct is not in accordance

with tribal customs or practices or violates IGRA or any other

law.

(2) Class II and Class III Gaming Class II and Class

III gaming on the Reservation is hereby authorized, provided

the Tribe has the sole proprietary interest in and responsi

bility for the conduct of any gaming enterprise, or to the

extent the Tribe may contract with and licensed a person or

entity to own, operate or manage the enterprise pursuant to

the provisions of IGRA or as otherwise permitted by law.

Nothing herein shall prohibit the Tribe from engaging the

services of non-tribal persons as employees thereof or

engaging any person or entity to provide consulting or other

technical assistance or to assist the Tribe in the management

of Gaming Activities pursuant to a management agreement

entered into under the provisions of IGRA. Class III gaming

shall be conducted in accordance with any tribal-state compact

between the Tribe and the State, or any alternative thereto as

provided by IGRA.

Section 6. Gaming Revenues

a. Tribal Property Except as provided for under the terms

of an agreement pursuant to the provisions of IGRA or as otherwise

permitted by law~ all revenues generated from any Class II or Class

III Gaming Activities are the property of the Tribe. Any profits or

net revenues from Gaming Activities shall be deposited into the

Tribes general treasury or such other tribal account as the Tribe

shall determine. Once becoming part of the treasury such funds

shall lose any identity as gaming revenues except to the extent

necessary to identify them as such in order to comply with

applicable law. No Tribal Member shall be deemed to have any

interest in such profits or net revenues, provided that the Tribal

Council may adopt rules for distributing gaming proceeds to Tribal

Members on a per capita basis provided such plan meets the

requirements of IGRA, 25 U.S.C. § 2710 (b) (3). Payments from the

general treasury funds to Tribal Members under other tribal

programs, including those related to health, welfare, education,

elderly care, and housing, shall not be deemed to be per capita

payments.

b. Use of Net Revenues Net Revenues from Gaming

Activities shall not be used for purposes other than:

(1) To fund tribal government operations or programs;

(2) To provide for the general welfare of the Tribe and

its members;

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(3) To promote economic development for the Tribe;

(4) Todonate to charitable organizations;

(5) To help fund operations of local government agen

cies; or

(6) To make per capita distributions to Tribal Members

in accordance with Section 6(a) above.

Section 7. Operation of Gaming Establishments

a. Gaming Permitted as Licensed Except to the extent

authorized by an agreement pursuant to the provisions of IGRA or as

otherwise permitted by law, Gaming Activities shall only be

conducted in tribally owned, operated and licensed facilities

pursuant to the provisions of this Ordinance. Such activities

shall be conducted in accordance with the terms and conditions of

any license issued by the Tribe for such purposes as to each

facility before any Gaming Activities may occur therein. Such

licenses shall specify the hours of operation, type and scope of

Gaming Activities allowed therein, permitted uses of the facility

for other activities, rules of conduct for employees and patrons,

regulation of alcoholic beverages, food handling and entertainment,

and such other matters as the Gaming Commission or the Tribal

Council may deem necessary to the conduct of Gaming Activities

therein.

b. Protection of Environment and Public Any construction

or maintenance of any gaming facility, and the operation of gaming

therein, shall be conducted in a manner which adequately protects

the environment and the public health and safety.

c. Dispute Resolution Patrons who have complaints against

the gaming establishment shall have as their sole remedy the right

to file a petition for relief with the Gaming Commission. For such

purposes, disputes with any management contractor or its employees

shall be made to the Gaming Commission, and such shall be the

exclusive remedy for patron complaints. Complaints shall be

submitted in writing and, at the discretion of the Gaming Commis

sion, the petitioner may be allowed to present evidence. The

Gaming Commission will render a decision in a timely fashion and

all such decisions will be final when issued. Any patron having a

claim against the gaming establishment or a management contractor

or its employees must submit such claim to the Gaming Commission

within thirty (30) days of its occurrence or within such time

periods as the Commission shall establish by regulation. All

claims by patrons shall be limited to a maximum recovery of $10,000

per occurrence, and a cumulative limit of $20,000 per patron in any

twelve (12) month period.

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July 12, 1996
Section 8. Audits.

Annual Audits Annual outside auditing by a recognized

independent accounting firm shall be conducted of each gaming

activity and the results thereof reported to the Tribal Council,

and, to the extent required by law, the Bureau of Indian Affairs

and the NIGC.

Section 9. Contracts

a. Bidding Contracts relating to gaming or any gaming

facility over $25,000 or for more than five (5) years (except

contracts for professional legal or accounting services) shall be

subject to a formal, sealed bidding process prior to submission to

the Tribal Council for approval. All bids received shall be opened

at the same time and the contractors who submitted bids shall be

advised of the day, time, and place of the opening and be allowed

to be present during the opening of the bids. All reasonable

attempts shall be made to obtain and consider at least three (3)

responsible bids; provided, the Gaming Commission may waive the

requirement for three bids upon good cause shown. The Tribal

Council shall award the contract to the lowest responsible bidder.

b. Audit Requirements All contracts for supplies, services,

or concessions for a contract amount in excess of $25,000 annually

(except contracts for professional legal or accounting services)

relating to Class II or Class III gaming on the Reservation shall

be subject to independent audits, and such contracts shall so

specify.

Section 10. Licenses

a. Licensing Requirements It is the declared policy of the

Tribe that all Gaming Activities be licensed and controlled so as

to protect the morals, good order and welfare of Tribal Members and

other persons on the Reservation and to preserve the honesty,

fairness and integrity of such Gaming Activities. Accordingly, no

person shall engage in any Class II or Class III Gaming Activities

on the Reservation without an appropriate and valid independent

Class II or Class III license issued by the Gaming Commission. Any

gaming license which is issued, or finding of suitability or

approval by the Gaming Commission, shall be deemed a privilege

subject to suspension or revocation. No license shall be issued

that would place the Tribe in violation the IGRA and regulations

promulgated thereunder and, as applicable, provisions of a tribal

state compact, or of any applicable law.

b. Applicant Claim of Privilege An applicant may claim any

privilege afforded by law in connection with a gaming license

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July 12, 1996 10
application or investigation, but a claim of privilege with respect

to any testimony or evidence pertaining thereto may constitute

sufficient grounds tor denial, suspension or revocation.

c. Release of Information All persons applying for a

license shall agree to release the information necessary in order

for the Gaming Commission to achieve its goals under this Ordi

nance, and to furnish such information to the Bureau of Indian

Affairs, the NIGC, or such other governmental agency as may be

required by law.

d. Types of Licenses Three classes of licenses (Class A,

Class B, and Class C) shall be issued to persons and entities

associated with Gaming Activities.

(1) Class A Licenses Before permitting any person to

become permanently associated with the Gaming Activities as an

investor, management entity, or other person owning or

controlling ten percent (10%) or more of any interest in any

management entity, or any Primary Management Official, Key

Employee, Closely Associated Independent Contractor, or other

individual or entity with influence over the management or

operation of the gaming, or a Class II or III gaming employee,

supplier, manufacturer or distributor, such person shall

obtain a Class A license. The Gaming Commission shall conduct

or cause to be conducted a background investigation to

determine if such person has:

(a) Any criminal record or any reputa

tion, prior activities, habits or associations

which might pose a threat to the public inter

est or to the effective regulation of gaming.

(b) Anything else in their background

which might create or enhance the dangers of

unsuitable, unfair, or illegal practices and

methods and activities in the conduct of

gaming.

(2) Class B Licenses Persons who are not among those

identified in subsection (1) above, but are to be employed at

a gaming facility on the Reservation in some other capacity,

such as in non-gaming related activities, shall be required to

obtain a Class B license from the Gaming Commission. Such

persons must establish that they have not been convicted of a

crime, or engaged in any activity, which the Gaming Commission

in its sole discretion deems would render such person a danger

to the safety or integrity of the Gaming Activities or the

safety or property of the Tribe, any Tribal Member, any gaming

employee or patron, or the public.

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(3) Class C Licenses Minors (persons under 18 years of

age) employed at a gaming facility on the Reservation may be

issued a Class C license, which will entitle them to work in

any position for which a Class B license is required for

adults and not otherwise prohibited by law, provided such

minors are not deemed by the Gaming Commission to pose any

threat to the safety or integrity of the Gaming Activities or

the safety or property of the Tribe, any Tribal Member, any

gaming employee or patron, or the public. The Class C license

shall be valid for no more than six (6) months before renewal,

and shall be revoked upon the minors reaching the age of 18,

at which time a Class A or B license, as may be appropriate,

will be required. Minors shall not be employed as dealers or

otherwise to operate or supervise the operations of games, or

to serve liquor.

e. License Renewal Class A and Class B licenses shall be

subject to renewal at least every two (2) years, and may be revoked

or suspended upon the occurrence of any act which, if known during

the application process, would have tended to disqualify such

person for such a license.

f. Temporary Licenses Pending completion of an investiga

tion for a license, temporary licenses of no more than ninety (90)

days duration may be issued by the Gaming Commission if in its sole

discretion it deems it appropriate to do so. Such licenses shall

permit the licensee to engage in such activities and pursuant to

such terms and conditions as may be specified by the Gaming

Commission. Such temporary licenses shall expire ninety (90) days

from date of issuance, upon issuance of a regular license, or until

an earlier specified expiration date, whichever occurs first.

g. License Investigations The Gaming Commission may employ

all reasonable means, including the engagement of outside services

and investigators and the holding of hearings, to acquire the

information necessary to determine whether or not a license should

be issued. Applicants shall also agree to release the information

necessary in order for the Gaming Commission to achieve its goals

under this section and to furnish such information to the Bureau of

Indian Affairs, the NIGC, or such other agency as may be required

by law.

h. License Fees Unless specifically waived by the Gaming

Commission, all license applicants shall be required to pay all

applicable license fees and costs when due, including a reasonable

deposit for costs incurred in obtaining information in connection

with the license application. Estimates of licensing costs shall

be provided to applicants upon reasonable request. Payment for all

reasonable fees and costs must be received by the Gaming Commission

prior to issuance of the license.

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July 12, 1996 1
1. Appeals All decisions of the Gaming Commission

regarding the issuance or revocation of licenses shall be effective

when issued. An applicant or licensee whose license is denied,

revoked or suspended may, within thirty (30) days after the date of

receipt of a written decision of the Gaming Commission, file a

petition with the Gaming Commission requesting a hearing to

reconsider the decision, and shall have the right to appeal such

decision to the Tribal Court in accordance with such rules and

regulations as may be promulgated by the Tribal Court for that

purpose . Any Tribal Member who is denied a license by the Gaming

Commission may, within sixty (60) days of written notice of such

denial, appeal the denial to the Gaming Commission, which shall

have the power to reverse its prior decision and order that such

license be issued, and shall have the right to appeal such decision

to the Tribal Court, provided that no such license shall be issued

for more than one (1) year, subject to the renewal procedures set

forth herein, and provided further that no order of the Gaming

Commission or Tribal Court that a license be issued shall be valid

if such issuance would place the Tribe in violation of any tribalstate compact to which the Tribe is a party, or of any applicable

law.

j. Background Investigations

(1) The Gaming Commission shall request from each

Primary Management Official and each Key Employee all of the

information specified in subsections (a) through (n) below.

Further, each other applicant for a Class A license, except as

provided otherwise by the Gaming Commission, shall also submit

the information specified in (a) through (n) below. The

Gaming Commission reserves the right, at any time, to request

additional information either prior to, during, or subsequent

to any background investigation.

(a) Full name, other names used (oral or written)

social security number(s) , date of birth, place of birth,

citizenship, gender, all languages (spoken or writ

ten) ;

(b) Currently and for at least the previous ten

(10) years: business and employment positions held,

ownership interests in those businesses, business and

residence addresses and drivers license number(s)

(c) Names and current addresses of at least three

(3) personal references, including one personal reference

who was acquainted with the applicant during each period

of residence as listed under subsection (b) above;

(d) Current business and residence telephone

numbers;

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(e) Description of any existing and previous

business relationships with the gaming industry general

ly, including ownership interests in those businesses;

(f) A description of any existing and previous

business relationships with Indian tribes, including

ownership interests in those businesses;

(g) Name and address of any licensing or regulatory

agency with which the person has ever filed an applica

tion for a license or permit related to gaming, whether

or not such license or permit was granted;

(h) For each felony for which there is an on-going

prosecution or a conviction: the charge, the name and

address of the court involved, and the date and disposi

tion, if any, of the case;

(i) For each misdemeanor conviction or on-going

misdemeanor prosecution (excluding minor traffic viola

tions) within ten (10) years of the date of the applica

tion: the name and address of the court involved, and

the date and disposition, if any, of the case;

(j) For each criminal charge (excluding minor

traffic charges) , whether or not there is or was a

conviction, if such criminal charge is within ten (10)

years of the date of the application and is not otherwise

listed above pursuant to subsections (h) or (i) above:

the criminal charge, the name and address of the court

involved and the date and disposition, if any, of the

case;

(k) Name and address of any licensing or regulatory

agency (federal, tribal, state, local or foreign) with

which the person has filed an application for an occupa

tional license or permit, whether or not such license or

permit was granted;

(1) Current photographs;

(m) Any other information the Tribe or Gaming

Commission deems relevant; and

(n) Fingerprints consistent with procedures adopted

by the Gaming Commission according to 25 C.F.R. §

522.2(h).

(2) The Tribe shall conduct or cause to be conducted an

investigation, through the Gaming Commission, sufficient to

make a determination of eligibility as required under this

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July 12. 1996 14
Ordinance. In conducting the background investigation, the

Gaming Commission and its agents shall promise to keep

confidential the identity of each person interviewed in the

course of the investigation.

(3) The Gaming Commission shall arrange for a city or

county law enforcement agency, located in Lake County, for the

State of California, to take the applicants fingerprints and

forward those fingerprints directly to the NIGC, to be

forwarded to the Federal Bureau of Investigation, National

Criminal Information Center, for review of the applicants

criminal history, and perform or arrange to have performed the

necessary background investigation of the applicant required

by this Ordinance. Such investigation shall include contact

ing each reference provided in the application and taking all

appropriate steps necessary to verify the accuracy of the

information contained in the application. There shall be a

written investigation report of the findings and conclusions

of each investigation. The investigative report shall include

(1) the steps taken in conducting a background investigation;

(2) the results obtained; (3) the conclusions reached; and (4)

the basis for the conclusions. The Gaming Commission shall

review the findings and conclusions of the report for the

purpose of determining whether to grant or deny the license

applied for.

k. Eligibility Determination The Gaming Commission shall

review a persons prior activities, criminal record, if any, and

reputation, habits and associations to make a finding concerning

the eligibility of a Key Employee or Primary Management Official

for employment in a gaming operation. It the Gaming Commission

determines that employment of the person poses a threat to the

public interest or to the effective regulation of gaming, or

creates or enhances dangers of unsuitable, unfair, or illegal

practices and methods and activities in the conduct of gaming, the

Gaming Enterprise shall not employ that person in a Key Employee or

Primary Management Official position or in any other position for

which a Class A license is required, except as specifically

established by the Gaming Commission.

1. Forwarding Licensing Applications and Reports to NIGC

(1) On or before the date a Key Employee or Primary

Management Official is employed by a Gaming Enterprise

authorized under this Ordinance, the Gaming Commission, acting

on behalf of the Tribe, shall forward to the NIGC the persons

completed application for employment containing the informa

tion required above under Section 10. of this Ordinance.

(2) Prior to issuing a license to a Primary Management

Official or Key Employee, the Gaming Commission, acting on

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July 12, 1996 15
behalf of the Tribe, shall forward to the NIGC, together with

a copy of the eligibility determination made under subsection

10.1. above, an investigative report on each background

investigation. The investigative report on each background

investigation shall be forwarded to the NIGC within sixty (60)

days after the employee begins work, or within sixty (60) days

of the approval of this Ordinance by the NIGC. The Gam

ing Enterprise shall not employ or continue to employ any

person as a Key Employee or Primary Management Official

who does not have a license within ninety (90) days of

beginning work.

The investigative report shall include the following informa

tion:

(a) Steps taken in conducting a background investi

gation;

(b) Results obtained;

(c) Conclusions reached; and

(d) The bases for those conclusions.

(3) The Gaming Commission, acting on behalf of the

Tribe, shall provide to the NIGC or other agency, any other

reports and information required by IGR1~ and regulations

promulgated thereunder. Further, with respect to Key Employ

ees and Primary Management Officials, the Gaming Commission

shall retain applications for employment and reports (if any)

of background investigations for inspection by the NIGC for no

less than three (3) years from the date of termination of

employment.

(4) If a license is not issued to an applicant, the

Gaming Commission shall notify the NIGC and may forward copies

of its eligibility determination and investigative report (if

any) to the NIGC for inclusion in the Indian Gaming Individu

als Records System.

m. Granting a Gaming License

(1) If, within a thirty (30) day period after the NIGC

receives a report as required under subsection 10.1. above,

the NIGC notifies the Tribe that it has no objection to the

issuance of a license pursuant to the license application

filed for a Key Employee or Primary Management Official for

whom the Gaming Commission has provided an application and

investigative report, the Gaming Commission may issue the

license.

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July 12. 1996 16
(2) The Gaming Commission shall provide any additional

information requested by the NIGC concerning a Key Employee or

Primary Management Official who is the subject of a report as

required under this subsection. An NIGC request for addition

al information shall suspend the thirty (30) day period

established under this subsection until the NIGC receives the

additional information.

(3) If, within the thirty (30) day period established

under this subsection, the NIGC provides a statement itemizing

objections to issuance of a license to a Key Employee or

Primary Management Official, the Gaming Commission shall

reconsider the application, taking into account such objec

tions. The Gaming Commission retains the right to make the

final determination whether to issue the license to such

applicant.

n. License Suspension

(1) If, after issuance of a gaming license, the Tribe

receives reliable information from the NIGC or other reliable

source indicating that a Key Employee or a Primary Management

Official is not eligible for employment under the eligibility

criteria established in section 10. above, the Gaming Commis

sion shall suspend the license and shall notify the licensee

in writing of the license suspension and proposed revocation.

(2) The Gaming Commission shall notify the licensee of

a time and place for a hearing on the proposed revocation of

a license.

(3) After the revocation hearing, the Gaming Commission

shall determine whether to revoke or to reinstate the gaming

license. For actions taken in response to information

provided by the NIGC, the Gaming Commission shall notify the

NIGC of its decision.

o. Facilities Licenses A separate license shall be

required for each place, facility, or location on any land where

Class II and/or Class III gaming is to be conducted on the

Reservation. Before Class II or Class III Gaming Activities can be

conducted therein, the Gaming Commission shall inspect and license

each such facility in accordance with this Ordinance and any

requirements of IGRA.

Section 11. Application Forms

a. Each application fo~m for a Key Employee or a Primary

Management Official, as well as for all other Class A license

applicants, unless otherwise specifically exempted by the Gaming

Commission, shall contain the notices set forth in subsections (1)

and (2) below:

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July 12. 1996 1
(1) Privacy Ordinance Notice

In compliance with the Privacy Act of 1974, the following

information is provided: Solicitation of the information on

this form is authorized by 25 U.S.C. §2701 ~ ~g. The

purpose of the requested information is to determine the

eligibility of individuals to be employed in a gaming opera

tion. The information will be used by National Indian Gaming

commission members and staff who have need for the information

in the performance of their official duties. The information

may be disclosed to appropriate federal, tribal, state, local,

or foreign law enforcement and regulatory agencies when

relevant to civil, criminal or regulatory investigations or

prosecutions or when pursuant to a requirement by a Tribe or

the National Indian Gaming Commission in connection with the

hiring or firing of an employee, the issuance or revocation of

a gaming license, or investigations of activities while

associated with a Tribe or a gaming operation. Failure to

consent to the disclosures indicated in this notice will

result in a Tribes being unable to hire you in a Primary

Management Official or Key Employee position.

The disclosure of your Social Security Number (SSN) is

voluntary. However, failure to supply a SSN may result in

errors in processing your application.

(2) Notice Regarding False Statements

A false statement on any part of your application may be

grounds for not hiring you, or for firing you after you begin

work. Also, you may be punished by fine or imprisonment.

(U.S. Code, title 18, § 1001)

b. Any existing Key Employee or Primary Management Off icial,

or any other Class A licensee unless otherwise specifically

exempted by the Gaming Commission, that has not completed an

application form containing the language set forth in Section

ll.a. (1) and (2) above, shall be notified that they must either:

(1) Complete a new application form that contains the

Privacy Ordinance Notice and the Notice Regarding False

Statements; or

(2) Sign a statement that contains the Privacy Ordinance

Notice and consent to the routine uses described in that

notice, and sign a statement that contains the Notice Regard

ing False Statements.

Section 12. Class III Gaming; Tribal-State Compacts

In addition to the provisions set forth above, no Class III

gaming shall be engaged in on the Reservation unless a tribal-state

compact has first been obtained in accordance with the IGRA. All

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~Yu1y 12. 1996
negotiations for such compacts shall be conducted through the

Tribal Council, with the advice and suggestion of the Gaming

Commission, and shall be finalized in accordance with tribal law.

To the extent any provision of a tribal-state compact is inconsis

tent with the provisions of this Ordinance, such compact shall

prevail and shall be deemed incorporated by reference herein.

Section 13. Interest in Management Contracts by Tribal Officials

No elected official of the Tribe, including the Gaming

Commission or any other Committee or agency of the Tribe, shall

have a financial interest in or management responsibility for, any

management agreement entered into pursuant to IGRA, nor shall such

elected official serve on the board of directors or hold (directly

or indirectly) ten percent (10%) or more of the issued and

outstanding stock of any corporation, or ten percent (10%) or more

of the beneficial interest in any partnership, trust, or other

entity, in any such corporation, partnership, trust or other

entity, having a financial interest in, or management responsibili

ty for, such contract.

Section 14. Service of Process

The Tribe designates as its agent for the service of any

official determination, order, or notice of violation, the

Chairperson of the Tribe.

Section 15. Tribal Gaming Corporation

Nothing in this Ordinance shall prevent the Tribe, through its

Tribal Council, from delegating the authority to conduct Gaming to

one or more tribal corporations, so long as the tribal Gaming

Enterprises to which such authority is delegated agree to meet all

criteria and requirements established under this Ordinance.

Section 16. Repeal of Prior Gaming Ordinance; Effective Date

This Ordinance and the regulations promulgated thereunder

shall constitute the entire gaming regulations of the Tribe. All

prior gaming acts and ordinances of the Tribe are repealed, and

this Ordinance shall become effective upon its approval by the

NIGC.

Section 17. Severability

If any provision or application of this Ordinance is deter

mined by review to be invalid, such determination shall not be held

to render such provision inapplicable to other persons or circum

stances, nor shall such determination render invalid any other

provision of this Ordinance.

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July 12, 1996 19
Section 18. Amendments

All provisions of this Ordinance are subject to revision,

repeal, or amendment by the Tribal Council at any time. Regula

tions promulgated by the Gaming Commission under this Ordinance are

subject to revision, repeal or amendment by the Gaming Commission

at any time.

The foregoing Ordinance was adopted at a ______________________

meeting

1996, by

of

the

the

following

Tribal Council

vote:

held on the 3 day of ~

AYES: c

A~Ø

Ch~irman of the Tribal Council

ATTESTED:

Sec~etary of the Tribal Cofticil

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