MAY 2 2 2001 

Kathryn L. Tierney, Attorney 

Bay Mills Indian Community 

12 140 West Lake Shore Drive 

Brimley, Michigan 497 1 5 

RE: Approval of Amendment to the Bay Mills Indian Community Gaming Ordinance 

Dear Ms. Tierney: 

This letter responds to your request to review and approve the amendment to the 

Bay Mills Indian Community's (Community) gaming ordinance submitted on April 13, 

2001. The Community by Resolution No. 01-4-9 adopted the amendment to the 

ordinance on April 9, 2001. The Chairman of the National Indian Gaming Commission 

(NIGC) approved the Community's original ordinance on August 3 1, 1993. This letter 

constitutes approval under the Indian Gaming Regulatory Act (IGRA). 

Thank you for submitting the amendment to the tribal gaming ordinance of the 

Bay Mills Indian Community for review and approval. If you have any questions 

or require further assistance, please contact Ms. Frances Fragua at 2021632-7003. 

Sincerely y urs, 

AM&?LB, 

Montie R. Deer 

Chairman 

NATIONAL HEADQUARTERS 1441 L Street NW, Suite 91 00, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.GOV 

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St. Paul, MN; Tulsa, OK 
Bay Mills Indian Community 

12140 West Lakeshore Drive 

$i,L~ / 3 , 

RESOLUTION I $21 

Resolution No. 01 -4-9 

Amendment to Gaming Ordinance 

WHEREAS: The Bay Mills Indian Community is a federally 

recognized Indian tribe with a Constitution 

enacted pursuant to the Indian Reorganization 

Act of 1934, 25 U.S.C. sec. 461, et seq., and 

WHEREAS: The Tribe regulates gaming on its Reservation 

under a compact with the State of Michigan and 

under its Gaming Ordinance, and 

WHEREAS: An amendment to the Gaming Ordinance is 

determined appropriate to conform the contents 

of the Tribe's application for gaming license 

with the background investigation provisions 

contained in 25 C.F.R. Part 556, as it may be 

from time to time amended, and with the 

specifications for eligible gaming employees 

contained in sec. 4 (D) (2) and (3) of the Gaming 

Compact with the State of Michigan. 

NOW, THEREFORE BE IT RESOLVED, that the Executive Council 

of the Bay Mills Indian Community hereby adopts 

the following amendments to the Gaming 

Ordinance, with deletions struck out and 

additions in italics: 

6.2 Application Procedure for Employment. 

(A) Any person seeking employment with a gaming 

enterprise licensed by the Commission shall submit an 

application to the Tribal Commission on such form or 

in such manner as the Tribal Commission may require. 

The a~plication form and any chanses thereto shall be 

reviewed and ap~roved by the Bay Mills Indian 

Community Executive Council ~rior to utilization. 

(B) At a minimum, the application shall contain the 

following information: 
Resolution No. 0'1 -4-9 

years: All information reauired under Part 556 of 

Title 25 of the Code of Federal Resulations, as 

that mav from time to time be amended. 

(2) The name, address and telephone number of the 

Primary ~anagement Official for whom the applicant 

is applying to work and the specific location at 

which s/he or she is applying to be employed. 

(3) The name and job description of the position 

the applicant is applying for. 

(4) The names and addresses of the applicant's 

living parents, grandparents, spouse, children, 

brothers, and sisters, including step-, half- and 

in-law. 
Resoiution No. 01 -4-9 

433)-A-sEaEemenE-as-Ee-whekher-Eke-appLieanE-has 

had-any-past-emp&symenE-wiEhT-035-ewnership 

inEeresE-ini-any-gaming-business7-IE-seT-Ehe 

appLieanE-shaL&-previde-a-wriEEen-sEaEemenE 

describing-his-or-her-pesiEio~~-Ehe-daEes-d~~~ng 

whieh-EhaE-pesiEien-was-he&dT-a-deseripEien-e~-Ehe 

app&ieanELs-ewnership-inEeresE-or-3eb 

respensibi&iEies-and-Eke-nameT-address-and-phene 

number-eE-Eke-businessT-and-a-pefsen-whe-ean 

aEEesE-Ee-Eke-aeeuraey-eE-Eke-inEemaEien 

provided: 

(5) 425) A sworn statement that neither the 

applicant nor any member of his immediate family 

has a past or current financial interest, other 

than a salary interest, in any gaming-related 

enterprise anywhere. If the applicant has any 

relative who has such a relationship, the 

applicant shall fully disclose his name and the 

nature of the relationship. 

(6) 436% Written permission giving the Tribal 

Commission or its designee the right to 

investigate the applicantls background, including 

his criminal record, civil and criminal judgments 

and credit history. 

(7) 438) A disclosure of any civil er-erimisa& 

judgments rendered against the applicant, which 

constitute a collection action for money owed by 

the applicant, including the case number, a 

description of the judgment and the name and 

address of the court involved. 
Resolution No. O'i -4-9 

(8) 429) Any other information which might bring 

into question his fitness to serve as a primary 

management official or key employee of a licensed 

gaming operation. 

(9) f28f Each application shall be accompanied by 

a sworn statement that the applicant will submit 

to the jurisdiction of the Tribe and the Tribal 

Court, if employed. 

42%)-Eaeh-app&ieaEie~-sha&1.-be-aeeempa~ied-by-a 

pheEegraph-eE-Ehe-app3iea~1E-Eaken-wiEhi~i-Ehe-&asE 

year: 

(10) 422% Each application shall be accompanied by 

a sworn statement that the applicant will abide by 

all applicable tribal and federal laws, 

regulations and policies. 

(11) 423) Each application for a gaming employee 

license shall be accompanied by an application fee 

of $10.00. 
Resolution No. 01 -4-9 

APPROVED : ATTEST : 

Executive Council 

CERTIFICATION 

I, the undersigned, as Secretary of the Bay Mills 

Indian Community Executive Council, do hereby certify that 

the above resolution was adopted and approved at a meeting 

of the Bay Mills Indian Community Executive Council held 

at Bay Mills, Miqhigan, on the 9th day of April, 2001, 

with a vote of J for, 2 opposed, absent, and J'- 

abstaining. As per provlslons of the Bay Mills 

Constitution, the Tribal President must abstain except in 

the event of a tie. 

Bay Mills Indian ~ommuni tyExecutive Council 
GAMING ORDINANCE 

BAY MILLS INDIAN COMMUNITY 

Table of Contents 

Section 1 . Findings. Intent and Policy .................. 1 

Section 2 . Definitions .................................. 3 

Section 3 . General Provisions ......................... 10 

3.1 Authority and Sovereign Powers and 

Responsibilities ........................... 10 

3.2 Title. Repeal of Prior Laws. and Effect of 

Repeal ..................................... 10 

3.3 Classes of Gaming .......................... 10 

3.4 Construction .............................. 10 

3.5 Savings Clause ............................. 11 

Section 4 . 4.1 

4.2 

4.3 

4.4 

4.5 

Tribal Gaming Commission ................... 11 

Establishment .............................. 11 

Location and Place of Business ............. 11 

Duration .................................... 11 

Attributes ................................. 11 

Recognition as a Political Subdivision of the 

Tribe ...................................... 12 

Sovereign Immunity of the Tribal Commission ............................................ 12 

Waiver of Sovereign Immunity of the Tribal 

Commission ................................. 12 

Sovereign Immunity of the Tribe ............ 12 

Credit of the Tribe ........................ 13 

Assets of the Tribal Commission ............ 13 

Membership ................................ 13 

Term of Office ............................. 14 

Ex-Officio Members ......................... 14 

Meetings ................................... 14 

Organization .............................. 15 

Removal of Members or Vacancies ........... 15 

Conflict of Interest ...................... 16 

Powers of the Tribal Commission ........... 16 

Annual Budget ............................. 20 

Tribal Commission Regulations ............. 20 

Right of Entrance; Monthly Inspection ..... 21 

Investigations ............................ 22 

Hearings; Examiner ........................ 22 

Appointment of Examiner; Power of Examiner 22 

Staff of Gaming Commission ................ 22 

Quarterly Reports ......................... 23 

Section 5 . Gaming Licenses ............................ 23 

5.1 Applicability .............................. 23 

5.2 License Required ........................... 23 

5.3 Types of Licenses .......................... 23 
Section 6 . 6.1 

Application Procedures ..................... 23 

Threshold Criteria Which a Potential Operator 

Must Meet .................................. 24 

License Application Fees ................... 25 

License Tax ................................ 26 

Terms of License ........................... 26 

Posting of Licenses ........................ 26 

Gaming License Renewals .................... 26 

Annual Reports ............................. 26 

Closure of a Tribal Licensed Gaming Activity . . 

Gaming Employee Requirements ............... 28 

Current and Valid Gaming Employee License 

Required ................................... 28 

Application Procedure for Employment ....... 28 

Review Procedure ........................... 29 

Scope of License ........................... 30 

Licensing Period ........................... 30 

Renewals ................................... 30 

Requirement to Produce License Upon Request.31 

Suspension or Termination of Employee Licenses ............................................ 31 

Temporary Suspension of Employee Gaming 

License .................................... 32 

Section 7 . Provisions of General Applicability to All 

Operators .................................. 33 

7.1 Gaming License Required .................... 33 

7.2 Site and Operator Specified ................ 33 

7.3 License Not Assignable ..................... 34 

7.4 Employee Licenses Required ................. 34 

7.5 Eligible Licensees ......................... 34 

7.6 Employee Drug Tests ........................ 34 

7.7 Regulations Posted or Available ............ 34 

7.8 Minimum Age to Play ........................ 34 

7.9 Minimum Age to Enter Facility .............. 34 

7.10 Posting of Rules of Play ................... 34 

7.11 Equipment Rental Restrictions .............. 34 

7.12 Restrictions on Gaming Apparatus Exchange .. 35 

7.13 Approval of Gaming Materials Required ....... 35 

7.14 Requisite Sale and Redemption Value ........ 35 

7.15 Record Maintenance Requirements ............ 35 

7.16 Liquor Sale Restrictions ................... 35 

7.17 Form of Payment for Chance to Play ......... 35 

7.18 Documentation of Winnings and Losses for 

Tax Purposes ............................... 35 

7.19 Taxes, Fees and Reports Timely Transmitted .. 35 

7.20 Response to Regulatory Inquiries ........... 35 

7.21 Display of Gaming License .................. 36 

7.22 Maintenance of Premises ................... 36 

7.23 Facility Security .......................... 36 

7.24 Cooperation with Law Enforcement ........... 36 

7.25 Record Inspection .......................... 36 
7.26 Gaming Occasion Restrictions ............... 36 

7.27 Discrimination Prohibited .................. 36 

7.28 Financial Record Review .................... 36 

7.29 Use of Net Proceeds ........................ 36 

7.30 Reporting Requirement Compliance ........... 36 

7.31 Tribal Law Violation ....................... 36 

7.32 Employee Misconduct ........................ 36 

Section 8 . 8.1 

8.2 

8.3 

Gross Proceeds Tax ........................ 37 

Rate ...................................... 37 

Separate Accounting Practices ............. 37 

Tax Due Date; Accrual. Return and 

Signature ................................. 37 

Annual Periodic Reconciliations ........... 38 

Tax Revenue Distribution .................. 38 

Internal Service Fund ..................... 38 

Excess of Receipts over Expenses .......... 38 

Annual Budget ............................. 38 

Section 9 . Operation of Tribally-Owned or TriballyOperated Games ............................ 38 

9.1 ~anagement by a Primary Management 

Official .................................. 38 

9.2 Use of Net Revenues of Triballv-Owned or 

Tribally- Operated Gaming ~nter~rises ..... 40 

9.3 Audit Requirements ........................ 40 

9.4 Management Contracts ...................... 40 

Section 10 . 10.1 

10.2 

10.3 

10.4 

10.5 

10.6 

10.7 

10.8 

10.9 

Enforcement ................................ 42 

Jurisdiction ............................... 42 

Prohibited Acts ............................ 42 

Criminal Violation ......................... 45 

Civil Violation ............................ 45 

Cumulative Fines ........................... 45 

Purpose of Civil Penalties ................. 45 

Civil Action for Penalties ................. 45 

Seizure of Property ........................ 46 

Reporting of Offenders ..................... 46 

Section 11 . Authorized Games .......................... 46 

11.1 Games Playable ............................. 46 

11.2 License Required ........................... 46 
(F) A sworn statement that the operator and all of its 

key employees and management contractors continue to 

consent to Tribal Court jurisdiction and service of 

process in all matters arising from the conduct of 

tribally-licensed gaming activity; 

(Q) If the operator is a corporation, a copy of any 

amendment to its articles of incorporation, properly 

certified by the incorporating government, unless a 

current copy has already been filed with the Tribal 

Commission. 

5.12 Closure of a Tribally Licensed Gamins Activity. If 

the Tribal Commission finds that any tribally owned gaming 

activity is operating in violation of this Ordinance, or 

otherwise presents a threat to the public, the Tribal 

Commission must immediately notify the Tribal Chairman and 

the Tribal Council. The Tribal Council may close down any 

tribally owned or operated gaming activity temporarily or 

permanently at any time with or without cause. 

Section 6. Gaming Employee Requirements. 

6.1 Current and Valid Gamins Emwlovee License Required. 

Each primary management official and key employee of a 

Class I1 or Class I11 gaming operation must possess a 

current, valid gaming employee license. 

6.2 Application Procedure for Employment. 

(A) Any person seeking employment with a gaming 

enterprise licensed by the Commission shall submit an 

application to the Tribal Commission on such form or 

in such manner as the Tribal Commission may require. 

The application form and any changes thereto shall be 

reviewed and approved by the Bay Mills Indian 

Community Executive Council prior to utilization. 

(B) At a minimum, the application shall contain the 

following information: 

(1) All information required under Part 556 of 

Title 25, Code of Federal Regulations, as that may 

from time to time be amended. 

(2) The name, address and telephone number of the 

Primary Management Official for whom the applicant 

is appl ing to work and the specific location at 

which srhe or she is applying to be employed. 

(3) The name and job description of the position 

the applicant is applying for. 

-28- 

Revised 4-9-01 
(4) The names and addresses of the applicant's 

living parents, grandparents, spouse, children, 

brothers, and sisters, including step-, half - and 

in-law. 

(5) A sworn statement that neither the applicant 

nor any member of his immediate family has a past 

or current financial interest, other than a salary 

interest, in any gaming-related enterprise 

anywhere. If the applicant has any relative who 

has such a relationship, the applicant shall fully 

disclose his name and the nature of the 

relationship. 

(6) Written permission giving the Tribal 

Commission or its designee the right to 

investigate the applicant's background, including 

his criminal record, civil and criminal judgments 

and credit history. 

(7) A disclosure of any civil judgments rendered 

against the applicant, which constitute a 

collection action for money owed by the applicant, 

including the case number, a description of the 

judgment and the name and address of the court 

involved. 

(8) Any other information which might bring into 

question his fitness to serve as a primary 

management official or key employee of a licensed 

gaming operation. 

(9) Each application shall be accompanied by a 

sworn statement that the applicant will submit to 

the iurisdiction of the Tribe and the Tribal 

court: if employed. 

(10) Each application shall be accompanied by a 

sworn statement that the applicant will abide by 

all applicable tribal and federal laws, 

regulations and policies. 

(11) Each application for a gaming employee 

license shall be accompanied by an application fee 

of $10.00. 

(C) Any application for a gaming employee license 

shall be accompanied by an application fee of $10.00. 

6.3 Review Procedure. 

(A) The Tribal Commission or its designee shall 

forward a copy of each application to a tribal or 

state law enforcement agency and arrange for that 

-29- 

Revised 4-9-01 
agency to verify in writing the accuracy of the 

applicant's criminal record. The Commission or its 

designee shall also contact each reference provided in 

the application and take other appropriate steps to 

verify the accuracy of the other information presented 

axd prepare a report of their findings for the 

Commission. Once these two reviews are completed, the 

Commission shall review the findings and either grant 

or deny the license, if one is required by this 

Ordinance, or advise the Primary Management Official 

that the applicant's information has been reviewed and 

there exists no barrier to employment. The applicant 

shall be notified in writing of the Commissionls 

decision. If the Commission votes to deny a license, 

it shall include within this notification the specific 

reasons for its decision. 

(B) A copy of the application, the results of the 

background checks performed and the Tribal 

Commissionls findings and decision shall be forwarded 

to the National Indian Gaming Regulatory Commission 

before a license is issued. 

(C) All applications, background checks and Commission 

decisions shall be retained in the Commission files 

for a period of at least five (5) years. 

6.4 Scope of License. 

(A) Any employee gaming licenses issued pursuant to 

this section shall be effective for only the location, 

job and employer contained in the application. 

(B) Any licensed employee shall apply to have his 

license transferred to a new location by requesting 

that transfer in writing to the Tribal Commission in a 

manner which details the new job and location and the 

operator for whom s/he proposes to work. 

6.5 Licensins Period. Any permanent employee gaming 

license issued pursuant to this section shall be effective 

for a period of one year from the date of issuance and 

shall contain the licensee's photograph and shall state on 

its face the name of the employee, the location at which 

s/he is licensed to work, the gaming operator who employs 

him, the date that the license became effective and the 

date that it expires. 

6.6 Renewals. A holder of an employee gaming license 

shall petition to have his license renewed, by applying to 

the Tribal Commission for a renewal before his original 

license has expired and updating all information contained 

in the original application. 

-30- 

Revised 4-9-01 
6.7 Requirement to Produce License Upon Recruest. Any 

person receiving an employee gaming license must carry 

that license upon his person during all working hours and 

must produce that license upon the request of any person. 

6.8 Suspension or Termination of Emplovee License. 

(A) Grounds for Suspension or Termination. The Tribal 

Commission may suspend or terminate the license of any 

employee, after notice and an opportunity for a 

hearing, for any of the following reasons: 

(1) The employee has withheld pertinent information on his application; 

(2) The employee has made false statements on the 

application; 

(3) The employee has participated in gaming 

activity which was not authorized by any tribal 

gaming license; 

(4) The employee has attempted to bribe a tribal 

council member, Commissioner or other person in an 

attempt to avoid or circumvent tribal law; 

(5) The employee has offered something of value or 

accepted a loan, financing or other thing of value 

from a Tribal Commission member, a subordinate 

employee or any person participating in any gaming 

activity; 

(6) The employee has knowingly promoted, played or 

participated in any gaming activity operated in 

violation of tribal or federal law or the 

tribal/state gaming compact; 

(7) The employee has been knowingly involved in 

the falsification of books or records which relate 

to a transaction connected with the operation of 

gaming activity; 

(8) The employee has violated any provision of 

this Ordinance or the rules and regulations of the 

Tribal Commission; 

(9) The employee has been convicted of, or has 

entered a plea of nolo contendere to, any crime 

involving gaming, fraud, theft , embezzlement or 

other activity which, if perpetrated at his 

operator's place of employment, would injure or 

pose a threat to the public interest, or the 

integrity of the gaming activity, or the effective 

-31- 

Revised 4-9-01 
regulation of gaming or enhance the dangers of 

unfair, unsuitable or illegal gaming practices; 

(10) The employee has refused to comply with any 

lawful order, inquiry or directive of the Tribal 

Commission, the Tribal Council, the federal 

government or any court of competent jurisdiction; 

(11) The employee has been convicted of, or 

entered a plea of nolo contendere to, a crime 

involving the sale of illegal narcotics or 

controlled substances; or 

(12) The employee has been determined to have 

present or prior activities, criminal record, if 

any, or reputation, habits and associations which 

pose a threat to the public interest or to the 

effective regulation of gaming, or create or 

enhance the dangers of unsuitable, unfair, or 

illegal practices and methods and activities in 

the conduct of gaming. 

(B) Procedure for Sus~ension or Termination. Whenever 

it is brought to the attention of the Tribal 

Commission that a person has failed to comply with any 

of the conditions of subsection (A), above, the Tribal 

Commission or its designee may either undertake an 

investigation of the gaming enterprise, or serve upon 

such person or any agent of such person an order to 

show cause why the employee should not be subject to 

disciplinary action. Such notice shall state the 

reason for the order, the time and place for the show 

cause hearing before the Tribal Commission, and that 

the person shall have an opportunity to present 

testimony and cross examine opposing witnesses, and to 

present any other evidence as to why a disciplinary action should not be issued. The hearing shall be set 

for not less than ten (10) days nor more than 14 days 

from the date of the notice. The hearing shall be 

governed in all respects in accordance with tribal law 

and Tribal Commission regulations. 

9 Temporary Suspension of Employee Gamins License. 

(A) Any employee gaming license may be temporarily and 

immediately suspended by the Tribal Commission, the 

Tribal Court or the Council or its designee for not 

more than 30 days if any of the following have 

occurred : 

(1) The employee has been charged with a violation 

of any gaming law. 

-32- 

Revised 4-9-01 
(2) The employee's continued employment as a 

primary management official or key employee of a 

game or gaming enterprise poses a threat to the 

general public. 

(3) The employee has made a material false 

statement in his license application. 

(4) The employee has participated in gaming 

activity unauthorized by his tribal gaming license. 

(5) The employee has refused to comply with any 

lawful order of the Tribal Commission. the 

Council, the Tribal Court or the National 'Indian 

Gaming Commission. 

(B) In the event the Tribal Commission determines that 

any employee meets any of the criteria stated in 

subsections 6.9 (A) (1) through 6.9 (A) (5) above or that 

his non-compliance with this Ordinance is a direct and 

immediate threat to the peace, safety, morals or 

health or welfare of the community, the Tribal 

Commission or its designee shall issue a notice of 

temporary suspension of his employee gaming license 

which shall be served upon the employee or any agent 

of the employee. The order shall state the grounds 

upon which it is issued and the employee's right to a 

hearing. The employee shall cease and desist operating 

in his management position or in his capacity as a key 

employee immediately upon receipt of the order, but 

s/he may file a notice of appeal with the Tribal 

Commission which shall hold a hearing on the order 

within 14 calendar days of its receipt of the appeal. 

At the hearing the employee shall have an opportunity 

to present testimony and cross-examine opposing 

witnesses, and to present any other evidence as to why 

a temporary suspension order or an injunction should 

not be issued. The hearing shall be governed in all 

respects in accordance with tribal law and Tribal 

Commission regulations. 

Section 7. Provisions of General Applicability to All Operators. 

7.1 Gamins License Required. Each Class I1 or Class I11 

gaming activity within the jurisdiction of the Tribe shall 

be conducted only by an operator who possesses a current 

and valid tribal gaming license. 

7.2 Site and Owerator Specified. Each tribal gaming 

license shall be applicable only to one gaming site and 

the operator named on such license. 

-33- 

Revised 4-9-01 
7.3 License Not Assisnable. No tribal gaming license 

shall be sold, lent, assigned or otherwise transferred. 

7.4 Em~lovee Licenses Rewired. Each management and key 

employee of a licensed gaming operation shall possess 

a current and valid tribal gaming employee license. 

7.5 Eliqible Licensees. A tribal gaming license shall be 

issued only to a person who qualifies therefor under the 

Ordinance, or to the Tribe or a tribal subdivision. 

7.6 Emplovee Drus Tests. Any person employed in a 

Commission-licensed gaming enterprise may be randomly 

selected for testing for utilization of marijuana, 

cocaine, amphetamines, opiates and phencyclidine (PCP) . Random drug testing of employees is a mandatory operating 

procedure for all operators. 

7.7 Requlations Posted or Available. Each operator shall 

have a copy of this Ordinance and regulations readily 

available for inspection by any person at each authorized 

gaming site. 

7.8 Minimum Ase to Play. In any gaming facility which 

has a retail alcoholic beverage license, the minimum age 

to play any Class I11 game is 21 years of age. In any 

gaming facility which does not have a retail alcoholic 

beverage license, the minimum age to play is 19 years of 

age. 

7.9 Minimum Aqe to Enter Facility. No person, other 

than a Class I11 enterprise employee, shall be permitted 

to: 

(A) Enter the area of any building which has a retail 

alcoholic beverage license and in which Class I11 

gaming is conducted, if under 21 years of age; 

(B) Enter the area of any building which does not 

have a retail alcoholic beverage license and in which 

Class I11 gaming is conducted, if under 19 years of 

age. 

7.10 Postinq of Rules of Play. Each operator shall post 

in a conspicuous location near where any gaming activity 

is being played, or shall otherwise provide the public 

with an explanation of the rules of play of every specific 

game s/he operates. 

7.11 Eauipment Rental Restrictions. Each operator of a 

gaming activity is prohibited from renting or lending 

gaming equipment to any person. 

-34- 

Revised 4-9-01 
7.12 Restrictions on Gamins A~paratus Exchanqe. Each 

operator is prohibited from exchanging pull-tabs, punchboards, sports pools, and twenty-one boxes (shoes). All 

other gaming equipment may be exchanged without prior 

approval. Any request for approval shall be made to the 

Tribal Commission at least 5 days prior to the exchange. 

7.13 Avvroval of Gamins Materials Required. Any 

operator who anticipates the printing, manufacture, or 

construction of any equipment for gaming activity shall 

first notify the Tribal Commission of his intention and . ---. 

shall have -the finished product approved by the Tribal 

Commission before it is placed in service. 

7.14 Requisite Sale and Redemption Value. Gaming chips 

and other tokens of value shall only be sold and redeemed 

by the operator and only for full value. 

7.15 Record Maintenance Reuuirements. Each licensed 

gaming operation shall maintain and keep for not less than 

five (5) years permanent books of accounts and records, 

including inventory records of gaming supplies, sufficient 

to establish the gross and net income, deductions, 

expenses, receipts and disbursements of the enterprise. 

7.16 Liquor Sale Restrictions. There shall be no sale 

of liquor at any gaming site without the requisite license 

for such sale issued under the Tribe's liquor control 

ordinance. 

7.17 Form of Payment for Chance to Play. Consideration 

for the chance to play in any gaming activity shall only 

be cash, house token or chip, and shall be presented at 

the time the game is played. No other form of 

consideration shall be allowed unless the Tribal 

Commission gives prior written approval. 

7.18 Documentation of Winninss and Losses for Tax 

Pumoses. Evidence of any win or loss incurred by a 

player must, upon request, be provided to such player in 

such form as will be acceptable to the IRS. 

7.19 Taxes. Fees and Reports Timely Transmitted. Each 

operator shall pay all applicable taxes and fees, 

including those assessed by the National Indian Gaming 

Commission, and file all applicable reports on time. 

7.20 Response to Resulatorv Incruiries. Each operator 

shall respond immediately to and obey all inquiries, 

subpoenas or orders of the Tribal Commission, the Tribal 

Council, the Tribal Court, or the National Indian Gaming 

Commission. 

-35- 

Revised 4-9-03 
7.21 Display of Gaminq License. Each operator shall 

prominently display at each gaming site a current, valid 

tribal gaming licence. 

7.22 Maintenance of Premises. Each operator shall, at 

all times, maintain an orderly, clean, and neat gaming 

establishment, both inside and out. 

7.23 Facility Security. Each operator shall provide 

adequate security to protect the public before, during and 

after any gaming activity. 

7.24 Cooperation with Law Enforcement. Each operator 

shall cooperate at all times with law enforcement 

personnel. 

7.25 Record Inspection. Each operator shall make its 

premises and books and records available for inspection 

during normal business hours by the Tribal Commission or 

their designee, and by authorized representatives of the 

National Indian Gaming Commission. 

7 -26 Gaminq Occasion Restrictions. No gaming shall be 

conducted on special days of observance designated by the 

Tribal Council. 

7.27 Discrimination Prohibited. No operator may 

discriminate on the basis of sex, race, color, or creed In 

the conduct of any licensed gaming activity. Employment 

preference for tribal members and other Native Americans 

shall not constitute discrimination by the operator. 

7.28 Financial Record Review. Each operator shall keep 

accurate books and records of all moneys received and paid 

out and provide authorized representatives of the National 

Indian Gaming Commission and the Tribal Commission or its 

designee with copies of or access to the same upon 

request. 

7.29 Use of Net Proceeds. All net proceeds of any 

gaming activity shall be used only in a manner prescribed 

by this Ordinance. 

7.30 Reportinq Requirement Compliance. Every operator 

shall comply with all applicable tribal and federal 

revenue reporting laws. 

7.31 Tribal Law Violation. It shall be a violation of 

the Tribe's Criminal Code to violate any provision of this 

Ordinance, any regulation of the Tribal Commission, or any 

order of the Tribal Court. 

7.32 Employee Misconduct. Each operator shall 

immediately suspend without pay any employee who is 

-36- 

Revised 4-9-01 
charged with an offense described in subsection 10.2(BB) 

or any offense related to the sale, possession, 

manufacture and/or transport of illegal drugs. The 

operator shall also immediately notify the Tribal 

Commission in writing of the name of the person and the 

pending charge and advise the Tribal Commission of the 

outcome of the case. If the employee is convicted or 

pleads nolo contendere to the charge, his or her 

employment shall be terminated. An employee terminated 

under this section for a drug-related conviction may be 

rehired, provided that such person is eligible for a 

gaming license, and provided further that such person 

passes a pre-employment drug screen test, and furnishes a 

substance abuse assessment by a licensed substance abuse 

program, and demonstrates compliance with that program's 

rehabilitation/ counseling plan. 

Section 8. Cross Proceeds Tax. 

8.1 Rate. There is hereby levied upon and there shall 

be collected from all enterprises an annual tax for the 

purpose of funding the Tribal Gaming Commission equal to 

one (1) per cent of the adjusted gross proceeds thereof, 

as that term is defined in subsection 2.1 of this 

Ordinance. The tax levied by this section shall be a 

personal obligation of the taxpayer. 

8.2 Separate Accountins Practices. Any enterprise which 

obtains revenue from sources other than activities 

directly related to gaming, such as the sale of food and 

beverages, shall keep books to show separately the 

transactions used to determine the tax levied in this 

section. 

8.3 Tax Due Date; Accrual. Return and Siunature. 

(A) Dutv of Enter~rise. The enterprise shall, on or 

before the fifteenth (15th) day of each month, make 

out a return for the preceding month on a form 

prescribed by the Tribe, showing the entire amount of 

adjusted gross proceeds of his gaming activities, and 

the amount of tax for which it is liable, and shall 

transmit the return signed by the Primary Management 

Official, together with payment of the amount of tax 

owed, on or before the fifteenth day of the month. If 

the return is prepared by other than said Manager, the 

return shall so state, and shall give the name and 

address of the person preparing the return, together 

with his signature and the name of his employer, if 

any. 

-37- 

Revised 4-9-01 
(2) Accrual of Tax. The tax imposed by this section 

shall accrue to the Tribe on the last day of the month 

in which the gaming activity occurred. 

8.4 Annual Periodic Reconciliations. In the event that 

the annual financial report provided by each enterprise 

indicates that the amount of adjusted gross proceeds for 

the year differs from the total of the adjusted gross 

proceeds reported monthly under sec. 8.3, the enterprise 

shall file with the Commission a reconciliation return, 

which indicates the proper amount of the adjusted gross 

proceeds, and if, additional tax is due, provide the 

correct amount together with one per cent (1%) penalty 

interest, compounded monthly, on the amount unreported or 

underreported, commencing with the month in which the 

report required by sec. 8.3 was due. 

8.5 Tax Revenue Distribution. All sums of money 

received and collected under this section shall be 

deposited by the Tribe to the credit of an Internal 

Service Fund to be used solely for the purpose of funding 

the operations of the Tribal Gaming Commission, in 

carrying out its responsibilities pursuant to this 

ordinance, the Indian Gaming Regulatory Act, and the 

Tribe's Compact with the State of Michigan, published at 

58 Fed. Reg. 63262 (Nov. 29, 1993). 

8.6 Internal Service Fund. The Fund is used to account 

for the financing of goods and services provided by one 

department or agency to other departments or agencies of 

the governmental unit, or to other governmental units, on 

a cost reimbursement basis. 

8.7 Excess of Receipts over Expenses. In the event that 

receipts exceed expenses, as determined by the annual 

audit, the Internal Service Fund will rebate such excess 

to enterprises proportionately. 

8.8 Annual Budset. The Tribal Gaming Commission will 

prepare and submit for approval by the Executive Council 

an annual budget. 

Section 9. Operation of Tribally-Owned or Tribally- Operated Games. 

9.1 Manaqement by a Primary Management Official. 

(A) The Tribal Council shall appoint one person who 

shall serve as Primary Management Official at each of 

its tribally-operated gaming establishments. The 

person appointed shall undergo a background check by 

the Tribal Commission and shall obtain an employee 

gaming license before commencing work. The Tribal 

-38- 

Revised 4-9-01 
Council shall be the direct supervisor of the Primary 

Management Official. 

(B) The Primary Management Official shall be 

responsible for managing and overseeing the day-to-day 

operations of the gaming operation. S/he shall have 

such authority as the Tribal Council may delegate. 

(C) The Primary Management Official shall present a 

written monthly report to the Tribal Commission and 

the Tribal Council which details the number of patrons 

served, the amount of income generated, the numbers of 

employees working at the establishment, a detailed 

description of any patron complaints and other 

problems experienced at the establishment, also a 

written statement of any changes in key employees or 

primary management officials and all bills which are 

30 days or more past due. 

(D) Any patron's cash winnings shall be paid in cash 

or check and shall be paid within 72 hours after it is 

won. 

(E) The Primary Management Official shall propose and 

the Tribal Commission shall approve a patron's 

complaint process. Each tribally-owned and 

tribally-managed gaming establishment shall post at 

least one sign in each gaming room informing patrons 

that they may file any complaints that they have 

directly with the Tribal Commission, and advising them 

of the Tribal Commission's address and phone number. 

(F) Each tribally-owned or tribally-operated gaming 

establishment shall carry sufficient liability 

insurance to protect the public in the event of an 

accident. The Tribal Council shall determine the 

amount of liability insurance required for each gaming 

establishment. 

(G) Each tribally-owned or tribally-operated gaming 

establishment shall post the rules of play of each 

game in a conspicuous place in the establishment, and 

shall make written copies of them available to any 

member of the general public upon request. 

(H) The Primary Management Official shall be 

personally responsible for seeing that gaming activity 

is managed in accordance with tribal and federal law 

and that such gaming activity complies with all IRS 

reporting requirements. 

-39- 

Revised 4-9-01 
9.2 Use of Net Revenues of Tribally-Owned or TriballyOperated Gamins Enterprises. 

(A) All net proceeds of a tribally-owned or triballyoperated gaming enterprise shall be held in the name 

of the Tribe. Such net proceeds may only be expended 

by the Tribal Council by resolution and only for the 

following purposes: 

(1) To fund tribal government operations or 

programs. 

(2) To provide for the general welfare of the 

Tribe and its members. 

(3) To promote tribal economic development. 

(4) To donate to charitable organizations. 

(5) To help to fund operations of local government 

agencies. 

9.3 Audit Requirements. 

(A) The Tribal Commission and the Primary Management 

Official of each tribally-owned or tribally-operated 

gaming establishment shall obtain an annual outside 

audit of such gaming establishment. A copy of such 

audit shall be provided to the Tribal Commission, the 

Tribal Council and the National Indian Gaming 

Commission. 

(B) Each contract for supplies, services (other than 

legal and accounting services) or concessions for a 

contract amount in excess of $25,000.00 annually shall 

be subject to an independent audit. A copy of such 

audit will be provided to the Tribal Commission, the 

Tribal Council and the National Indian Gaming 

Commission. 

9 .4 Manaqement Contracts. 

(A) Each management contract is subject to the prior 

approval of the National Indian Gaming Commission. 

(B) Each management contract shall be approved by the 

Council with the advice and comment of the Tribal 

Commission. Before giving final consideration to any 

proposed management contract, the Council shall direct 

the Tribal Commission to obtain the following 

information and submit it to the Council for review: 

(1) Background information on the proposed 

management contractor including its name, its 

-40- 

Revised 4-9-01 
address, the names and addresses of each person or 

entity having a direct financial interest or 

management responsibility for the proposed 

management contractor, and in the case of a 

corporation, the names and addresses of each 

member of its board of directors and all 

stockholders who hold directly or indirectly 10 

percent or more of its issued or outstanding 

stock. 

(2) A description of any previous experience that 

each person listed in subsection 9.1 above has had 

with other gaming contracts with Indian tribes or 

with the gaming industry generally, including the 

name and address of any tribal government or 

licensing agency with whlch such person has had a 

contract relating to gaming. 

(3) A complete financial statement of each person 

listed in subsection 9.4 (B) (1) above. 

(4) The Tribal Commission shall contact each of 

the tribal governments and licensing agencies in 

Subsection 9.4 (B) (2) above to determine the 

performance history of the proposed management 

contractor. 

(5) The Tribal Commission shall arrange to have 

each proposed management contractor investigated 

to learn of his personal attributes and to 

determine whether s/he has a prior criminal record 

or any pending criminal charges. 

(6) The Tribal Commission shall obtain an 

independent verification of the completed 

financial statements of each proposed management 

contractor. 

(7) The Commission shall undertake any additional 

steps it can to determine the character and 

reputation of each proposed management contractor. 

(8) If the Tribal Council, after reviewing the 

above described information still desires to enter 

into a management contract with the proposed 

management contractor, such management contract 

shall be placed in writing and submitted to legal 

counsel for review before the Council approves it. 

(C) Any management contract approved by the Council 

must contain at a minimum the following with respect 

to the gaming enterprise to which the contract is 

applicable: 

-41- 

Revised 4-9-01 
(1) A provision requiring a monthly financial 

accounting of the gaming enterprise's income and 

expenses, with an annual financial accounting to 

be prepared by an independent auditor who is 

acceptable to the Tribe. 

(2) A provision providing the Tribe absolute 

access to the daily operation of the gaming 

enterprise and to its books, and the Tribe's 

absolute right to verify the daily gross revenues 

of the gaming enterprise at any time. 

(3) A provision guaranteeing the Tribe a minimum 

guaranteed payment which shall always take 

precedence over the management contractor's right 

to recoup development and construction costs. 

(4) An agreed upon ceiling for the management 

contractor's development and construction costs. 

(5) A provision that the contract shall not exceed 

the term limit established by federal law. 

(6) A provision for termination of the contract 

and the grounds for termination. 

(D) If the Council is satisfied with the information 

it receives it shall submit its proposed contract 

along with all of the above described information to 

the Chairman of the National Indian Gamins Commission 4 

for approval. 

Section 10. Enforcement. 

10.1 Jurisdiction. Except as provided in this Ordinance 

and in any IGRA compact, the Tribal Court shall have 

jurisdiction over all violations of this Ordinance. 

10.2 Prohibited Acts. In addition to other civil and 

criminal offenses provided for in this Ordinance, the 

following acts are prohibited and subject any violator to 

the civil or criminal penalties specified herein: 

(A) Participating in any on-reservation gaming 

activity which is not authorized by this Ordinance. 

(B) Knowingly making a false statement in an 

application for employment with any operator or with 

the Tribal Commission. 

(C) Knowingly making a false statement in connection 

with any contract to participate in any gaming 

activity. 

-42- 

Revised 4-9-01 
(D) Attempting to bribe any person participating in 

any gaming activity. 

(E) Offering or accepting a loan, financing or other 

thing of value between a Tribal Commission member or 

employee and any person participating in any gaming 

activity. 

(F) Promoting or participating in any illegal gaming 

activity. 

(G) Failing to keep sufficient books and records to 

substantiate receipts, disbursements and expenses 

incurred or paid from any gaming activity authorized 

pursuant to this Ordinance. 

(H) Falsifying any books or records which relate to 

any transaction connected with any gaming activity 

pursuant to this Ordinance. 

(I) Conducting or participating in any gaming activity which in any manner results in cheatins d or 

misrepresentation, and which allows any other 

disreputable tactics which detract from the fair 

nature and equal chance of participation between 

gaming players, or which otherwise creates an 

advantage over and above the chance of such gaming 

activity which affects its outcome. 

(J) To conduct gaming activity with or to allow 

participation in gaming activity by or with an 

intoxicated or disorderly player. 

(K) To allow or participate in the sale of liquor at 

gaming sites when such sale is prohibited by tribal 

law. 

(L) To accept consideration other than money, personal 

checks or other approved consideration for the chance 

to play or participate in any gaming activity. 

(M) To use bogus or counterfeit chips or charitable 

gaming tickets, or to substitute or use any cards, 

charitable gaming tickets or gaming equipment that has 

been marked or tampered with. 

(N) To employ or possess any cheating device or to 

facilitate cheating in any gaming activity. 

(0) To willfully use any fraudulent scheme or 

technique to change the odds of any game of chance. 

-43- 

Revised 4-9-01 
(P) To solicit, directly or indirectly, or use inside 

information on the nature or status of any gaming 

activity for the benefit of an individual. 

(Q) To tamper with a gaming device, attempt to 

conspire to manipulate the outcome or the payoff of a 

gaming device, or otherwise unlawfully tamper with or 

interfere with the proper functioning of the machine. 

(R) To alter or counterfeit a gaming license. 

(S) To aid, abet, or conspire with another person 

knowingly or knowingly to cause any person to violate 

any provision of this Ordinance or any rules and 

regulations adopted thereunder. 

(T) To operate, use or make available to the public 

any illegal gaming device, apparatus, material, or 

equipment. 

(U) To sell, hold out for sale or transport into or 

out of the jurisdiction of the Tribe any illegal 

gaming device, apparatus, material, or equipment. 

(V) To assist or allow a person who is under age to 

participate in a game of chance. 

(W) To possess any illegal narcotics or controlled 

substances on any licensed gaming site. 

(X) To steal or attempt to steal funds or other items 

of value from any gaming establishment or from the 

Tribal Commission. 

(Y) To employ any person at a licensed gaming 

establishment whom the operator knows has been 

convicted of a gaming crime or a crime of fraud. 

(Z) To conspire with or induce any person to violate 

any of the provisions of this Ordinance or any tribal 

or federal law. 

(AA) No operator or any of his employees or agents 

shall engage in any act, practice, or course of 

operation which could result in a fraud or deceit upon 

any person. 

(BB) No operator shall employ any person who has been 

convicted of or entered a plea of nolo contendere to a 

criminal offense committed in Michigan or any other 

jurisdiction, involving theft, fraud, or 

misrepresentation, which would be a felony if 

committed in Michigan, and which was committed as an 

adult or prosecuted as an adult offense, and which has 

-44- 

Revised 4-9-01 
not been effectively removed from the person's 

criminal record by executive pardon, state court 

order, or operation of law; or to a gaming crime. 

10.3 Criminal Violation. Any Indian who violates or 

fails to comply with any provlslon of this Ordinance, or 

who fails or neglects to comply with any order or decision 

of the Tribal Commission, shall be guilty of a crime and 

may be required to pay a fine not to exceed $5,000 or be 

incarcerated for a period not to exceed 2 years. Each day 

during which any such violation or failure to comply 

continues shall constitute a separate violation of this 

Ordinance. 

10.4 Civil Violation. Any non-tribal member who violates 

or fails to comply with any provision of this Ordinance, 

or who fails or neglects to comply with any order of 

the Tribal Commission, shall be liable for a civil fine 

not to exceed $5,000 for each violation thereof. Each day 

during which any such violation or failure to comply 

continues shall constitute a separate violation of this 

Ordinance. The amount of any such civil fine may be 

recovered in a civil action in the Tribal Court. 

10.5 Cumulative Fines. All civil fines accruing under 

this Ordinance shall be cumulative and a suit for the 

recovery of one fine shall not bar or affect the 

recovery of any other fine, or judgment, penalty, 

forfeiture or damages, nor bar the power of the Tribal 

Court to punish for contempt, nor bar any criminal 

prosecution against any officer, director, agent, or 

employee of any operator, or any other person. 

10.6 Pumose of Civil Penalties. The civil fines imposed 

under this Ordinance are intended to be remedial and not 

punitive and are designed to compensate the Tribe for the 

damage done to the peace, security, economy and general 

welfare of the Tribe and the Reservation and to compensate 

the Tribe for costs incurred by the Tribe in enforcing 

this Ordinance. The civil fines under this Ordinance are 

also intended to coerce all people into complying with 

this Ordinance and Tribal Commission regulations and not 

to punish such people for violation of such laws and 

regulations. 

10.7 Civil Action for Penalties. In enforcing the civil 

infraction provisions of this Ordinance, the Tribal 

Commission shall proceed, in the name of the Tribe, 

against a person for violation of such provision by civil 

complaint pursuant to the provisions of this Ordinance. 

The Tribal Commission in such action shall have the 

burden of showing, by the preponderance of the evidence, 

that such person violated the applicable provision of this 

Ordinance. 

-45- 

Revised 4-9-01 
10.8 Seizure of Property. All property utilized in 

violation of this Ordinance shall be subject to seizure by 

order of the Tribal Court. 

10.9 Reportins of Offenders. The Clerk of the Tribal 

Court shall, upon final conviction of any person under 

this subsection, report the name of the person convicted 

to the Tribal Commission. 

Section 1 1. Authorized Games. 

11.1 Games Playable. All games of chance which are valid 

under the law of the State of Michigan are authorized for 

licensing. 

11.2 License Required. A separate tribal gaming license 

shall be obtained for the operation of each of the gaming 

establishments authorized by this Section. 

-46- 

Revised 4-9-01