The foregoing Ordinance was adopted at a Special meeting of the
Tribal Council held on the 9th day of January, 1996, by a vote of 4 for, 0
against, 0 abstaining.

Mike “Knight, Chairpe:

s:\1jm\ords96\sherwd\ganing. act
January 14. 1997


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 written);

(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;

(e) Description of any existing and previous business
relationships with the gaming industry generally. including
ownership interests in those businesses;

(£) <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 application 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 disposition, if any, of
the case;

(i) For each misdemeanor conviction or on-going
misdemeanor prosecution (excluding minor traffic violations)
within ten (10) years of the date of the application: 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:

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January 14, 1997


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.

z. ‘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 tao
the requirements for primary management officials.

1. "Related to" shall refer to persons who are related as a
father, mother, sister or brother.

m. "Reservation" shall mean all lands under the jurisdiction and
control of the Tribe.

n. "State" shall mean the State of California.

a. "Tribal Council" shall mean the governing body of the Tribe, as
set forth in the Tribe's 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 hy
the Tribe a Commission, acting under the authority of the Tribe, to be
known as the Sherwood Valley Gaming Commission. The Gaming Commission
shall be composed of three (3) persons who would themselves qualify for
licensing under this Ordinance, and may be appointed by the Sherwood Valley
Tribal Council. The Chairman of the Sherwood Valley Gaming Commission
shall not hold the office of Chairperson of the Tribal Council.

hb. Disqualifications for Office. The following persons may not

serve as Commissioners:

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January 14, 1997


(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 et seq. The purpose of the
requested information is to determine the eligibility of individuals
to be employed in a gaming operation. 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 Tribe's being unable toa
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 Official, 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 11.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 Regarding 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 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

3:\Ljm\ords96\shervd\ganing act
January 14, 1997


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

(3) To promote economic development for the Tribe:
(4) To donate to charitable organizations:
(5) To help fund operations of local government agencies; 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 ta
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 Commission, 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. 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.

Section 8. Audits.

Annual Audits. Annual outside auditing by a recognized independent
accounting firm shall be conducted of each gaming activity and the results

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Janyary 14. 1997


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 Commissioners 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;

(2) Investigate any suspicion of wrongdoing in connection
with any Gaming Activities:

(3) Conduct, or cause to be conducted, such investigations 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 ta 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 ta requirements
at least as stringent as those in 25 C.F.R. parts 556 and 558;

(5S) 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:

(6) Administer oaths or affirmations to witnesses appearing
hefore the Gaming Commission;

(7) Implement and administer a system for investigating,
licensing and monitoring employees and others connected with Gaming
Activities, as described helow, including the issuance of licenses to
gaming facilities, individuals and entities as required under this
Ordinance and IGRA;

(8) Hear disputes against the gaming establishment, in
accordance with the procedures established in this Ordinance:

(9) Subject to the approval of the Tribal Council and the
appropriation of funds therefor, adopt a budget to finance the

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January 14, 1997


(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) ;

(3) Persons who would not be eligible to be officers of
the Tribe pursuant to the Tribe's Constitution; and

(4) The Chairperson of the Tribal Council.

c. Terms of Office. There shall be a Chairperson, Vice-
Chairperson and Secretary of the Tribal Gaming Commission, who shall he
appointed for an initial term of four (4) years. The remaining members of
the Commission shall be appointed for an initial term of three (3) years.

d. Removal from Office. Commissioners may only be removed from
office before the expiration of their terms by the Tribal Council for
neglect of duty, misconduct, malfeasance, or other acts that would render
such persons unqualified for such duties or for licensure 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 (2) 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 he
held in executive session. The Tribal Council also may he 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.

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- Yoting. 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
@ second Tuesday of the month at the Tribe's primary meeting facility.
itional meetings shall be held as called by the Chairman or by at least
(2) other Commissioners. Notice of meetings shall be given in writing
qj pach Commissioner, served by first class mail or personal delivery at

8:\Ljm\ords96\shered\gaming.act
Janugry 14, 1997


with tribal law. To the extent any provision of a tribal-state compact is
inconsistent 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 ta 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 responsibility 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 determined by
review tobe invalid, such determination shall not be held ta render such
provision inapplicable to other persons or circumstances, nor shall such
determination render invalid any other provision of this Ordinance.

Section 18. Amendments. _

All provisions of this Ordinance are subject to revision, repeal, or
amendment by the Tribal Council at any time. Regulations promulgated by
the Gaming Commission under this Ordinance are subject to revision, repeal
or amendment by the Gaming Commission at any time.

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January 14, 1997


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.

(4) 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 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 I] 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 responsibility for the |
conduct of any gaming enterprise, or ta 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 Tribe's 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;

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January 14, 1997


& NATIONAL

# INDIAN

j Sewn
Commission

APR 24 997

Mike Knight

Chairperson

Sherwood Valley Rancheria
190 Sherwood Hill Drive
Willits, CA 95490

Dear Chairperson Knight:

This letter responds to your request to review and approve the tribal gaming
ordinance, Resolution No. 96-01-09-97, adopted on January 9, 1997, by the Sherwood
Valley Rancheria (Tribe). This letter constitutes such approval under the Indian Gaming
Regulatory Act (IGRA).

Under the IGRA and the regulations of the National Indian Gaming Commission
(NIGC), the Chairman is directed to review ordinances with respect to the requirements of
the IGRA and the implementing regulations. Thus, the scope of the Chairman’s review and
approval is limited to the requirements of the IGRA and the NIGC regulations. Provisions
other than those required under the IGRA or the NIGC regulations that may be included in a
tribal ordinance are not subject to review and approval. Also, such approval does not
constitute approval of specific games. It is important to note that the gaming ordinance is
approved for gaming only on Indian lands as defined in the IGRA.

With the Chairman’s approval of the Tribe’s gaming ordinance, the Tribe is now
required to conduct background investigations on its key employees and primary management
officials. The NIGC expects to receive a completed application for each key employee and
primary management official pursuant to 25 C.F.R. § 556.5(a) and an investigative report on
each background investigation before issuing a license to a key employee or primary
management official pursuant to 25 C.F.R. § 556.5(b).

Thank you for submitting the ordinance of the Sherwood Valley Rancheria for review

and approval. The NIGC staff and I look forward to working with you and the Tribe in
implementing the IGRA.

Sincerely yours,

Tom Foley
Vice Chairman

1441 L_ STREET, N.W. Q9THFLOOR WASHINGTON, D.C. 20005, TEL.: 202-632-7003 FAX: 202-632-7066



(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 reputation,
prior activities, habits or associations which
might pose a threat to the public interest 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 he employed at a
gaming facility on the Reservation in some other capacity, such as in
hon-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.

(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 minor's 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 ta disqualify such person for such a license.

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January 14, 1997


thereof reported to the Tribal Council, and, to the extent required by law,
the Bureau of Indian Affairs and the NIGC.

Section 9. Contracts.

. 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 ta a formal,
sealed bidding process prior to submission ta the Tribal Council for
approval. 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.

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 application
or investigation, but a claim of privilege with respect to any testimony or
evidence pertaining thereto may constitute sufficient grounds for 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 Ordinance, 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.

$:\bja\ords96xshered\ganing.act
January 14,


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: compensation 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, subject to review and approval by the Tribal Council,
in order to implement and enforce the provisions of this Ordinance
including, but not limited to, adopting rules of procedure governing
how its meetings will be conducted;

(12) Promulgate regulations establishing minimum standards 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 ta
be conducted on the Reservation, and no form of such gaming may he
conducted on the Reservation without the prior approval of the Gaming
Commission;

(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 applicants for
gaming licenses to cover the cost of conducting background
investigations and issuing gaming licenses to persons engaged or
wishing to engage in Gaming Activities on the Reservation; and

(15) Levy fines for violations of this Ordinance or the Gaming
Commissions regulations.

k. Annual Reports. On or hefore April 30th of each year, the
Gaming Commission shall provide ta 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
toa 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 promulgated thereunder.

Section 5. Permitted Gaming Activities.

s:\Lja\ords96\shered\ganing.act
January 14, 1997


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 references 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 Sherwood 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 transactions.

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 Sherwood Valley Gaming
Commission, as established herein toa 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 jurisdiction of the Tribe.

g. Employee" shall mean a person wha performs one or more of
the followi 1g functions: bingo caller, counting room supervisor, chief of
security. ci{stodian of gaming supplies or cash, floor manager, pit boss,
dealer, croupier, approver of credit, or custodian of gaming devices
including those persons with 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

3:\1jm\ords96\shervd\gaming.act
January 14, 1997


(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 occupational 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 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
daw enforcement agency, located in Mendocino County, for the State of
California, to take the applicant's fingerprints and forward those
fingerprints directly to the NIGC. ta be forwarded to the Federal
fureau of Investigation, National Criminal Information Center, for
review of the applicant's criminal history, and perform or arrange to
fave performed the necessary background investigation of the
applicant required by this Ordinance. Such investigation shall
taclude contacting each reference provided in the application and
taking all appropriate steps necessary to verify the accuracy of the
4taformation 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 person's 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. If 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.

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January 14, 1997


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.

(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 additional
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 objections. The Gaming Commission retains
the right to make the final determination whether ta 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 Commission 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 ta 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.

a. Facilities Licenses. 4 separate license shall be required for
each place, facility, or location on any land where Class II and/or Class
IL gaming 1s 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 form 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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k& /
ORDINANCE NO. 96-01-09-97 8

AN ORDINANCE OF THE SHERWOOD VALLEY BAND OF POMO
INDIANS AUTHORIZING AND REGULATING GAMING ON THE
SHERWOOD VALLEY INDIAN RESERVATION

The Sherwood Valley Band of Pomo Indians, a federally recognized
Indian Tribe ("Tribe"), as the beneficial owner of the Sherwood 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 Sherwood Valley
Indian Reservation ("Reservation") and the members of the Tribe, hereby
enacts this ordinance which shall hereinafter be cited as the Sherwood
Valley Gaming Ordinance of 1996 ("Ordinance"). This Ordinance and any
regulations promulgated thereunder shall constitute the entire gaming
regulations for the Tribe.

1. Eindings and Policy.

This Ordinance is adopted by the Tribal Council, pursuant to its
authority granted under the Tribe's 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 seg. ("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 ta 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 ina
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 and/or
enterprise(s) authorized by this Ordinance, except to the extent the Tribe

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SHERWOOD VALLEY RANCHERIA

Q

y
ma

DIAN GAMING REGULATORY ACT
RESOLUTION AUTHORIZING THE SUBMISSION OF THE TRIBE’S
AMENDED GAMING ORDINANCE

RESOLUTION # 96-01-09-97 FB ig Nor

WHEREAS: the Sherwood Valley Rancheria Indians is a federally
recognized Indian Tribe by the Secretary of the Interior as a
Sovereign Indian Nation with inherent powers of self-
government; and

WHEREAS: the Sherwood Valley Rancheria Indians has a great need for
economic development on the Sherwood Valley Rancheria and
views gaming as a legitimate means for generating revenue;
and

WHEREAS: the Sherwood Valley Rancheria is desirous of compliance with
the Indian Gaming Regulatory Act; and

WHEREAS: the Sherwood Valley Rancheria is amending their gaming
ordinance # 95-5-31 by this resolution; and

NOW, THEREFORE BE IT RESOLVED, that the Sherwood Valley
Rancheria does hereby submit for review and authorization of it’s amended
gaming ordinance.

CERTIFICATION

The Tribal Council of the Sherwood Valley Rancheria does hereby certify
that at a meeting duly called, noticed, and convened on the 9th day of
January, 1997, where a quorum was present, this action was duly adopted by
a vote 4 for, 0 against, and 0 abstaining.

/-G-G7 J-G-IT7

DATE DATE

190 Sherwood Hill Drive ¢ Willits, California 95490
(707) 459-9690 © Fax (707) 459-6936


f. Temporary Licenses. Pending completion of an investigation 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.

i. 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
ta 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 tribal-state
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)

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January 14, 1997

i


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 person's completed application
for employment containing the information 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 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 Gaming 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 information:

(a) Steps taken in conducting a background
investigation;

(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 IGRA and regulations promulgated thereunder.

Further, with respect to Key Employees 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 Individuals 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 na objection to the issuance of a

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