Gaming Act

Resources in any 12-month period, or who has received at least twenty-five
thousand dollars ($25,000) in any consecutive 12-month period within the 24-
month period immediately preceding application, shall be licensed by the
Gaming Commission prior to the sale, lease, or distribution, or further sale, lease,
or distribution, of any such Gaming Resources to or in connection with the
Tribe’s Gaming Operation or Gaming Facility. The Gaming Resource Supplier
license must be renewed at least every two (2) years. The Tribe shall not enter
into any contract or agreement that would require licensing if the Gaming
Resource Supplier has been denied a license or is deemed unsuitable, or the
license or suitability determination has expired without renewal.

7.12.7.4 Union License. Any labor union, including its management and
representatives, seeking to represent any Gaming Employees must first apply for
and be deemed suitable to obtain a license under standards and licensing
requirements established by the Gaming Commission.

7.12.7.5 Wendor License. Vendors providing other goods or services, and
those providing gaming related goods or services valued at less than $25,000 ina
12-month period, may also be required to obtain a license from the Gaming
Commission prior to doing business with the Tribe’s Gaming Operation. Vendors
who are deemed not to be Gaming Resource Suppliers or who provide only non-
gaming related goods or services to the Tribal Gaming Operation shall, at
minimum, complete a short form application and qualify for a vendor license
issued by the Gaming Commission. Such license must be renewed at least every
two (2) years and the Gaming Commission may require additional information or
licensing at any time.

7.12.76 Temporary or Provisional Licenses. Pending completion of
an investigation for a license, the Gaming Commission may issue a temporary or
provisional license of no more than ninety (90) days duration if, in its sole
discretion, it deems such issuance appropriate, and may grant an extension of
such a license if necessary to complete the investigation or to obtain the Criminal
History Record Information results from fingerprint submissions. Such licenses
shall permit the licensee to engage in such activities pursuant to such terms and
conditions as the Gaming Commission may specify. Temporary or provisional
licenses shall expire ninety (90) days from date of issuance, upon issuance of a
regular license, or until a specified expiration date.

7.12.7 State Gaming Agency. Class III Gaming Employees, Gaming
Resource Suppliers, gaming management and investors may further be subject to
State Gaming Agency investigation and suitability requirements, including
issuance of a license or certification of suitability, under the Compact.

7.12.8 Drug and/or Alcohol Testing. The Gaming Commission reserves

the right to require drug and/or alcohol testing for any license applicant or
licensees at any time.

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7.6.18.2 Contain standards for currency transaction reporting that comply
with 31 C.F.R. part 103; and

7.6.18.3 Establish internal control standards for Class II and Class IIT games
that are not addressed in the MICS, if any.

7.6.18.4 Verify the Gaming Operation is in compliance with the internal
control standards adopted pursuant to this section 7.6.18 by engaging an
independent certified public accountant to perform “Agreed-Upon Procedures”
as set forth in 25 C.F.R. § 542.3(f).

7.6.18.5 Authorize the Gaming Commission and the NIGC to monitor and
enforce compliance with the internal control standards adopted pursuant to this
section 7.6.18 in the manner provided for in 25 C.F.R. § 542.3(g). In addition, the
National Indian Gaming Commission shall, for the purpose of enforcing
compliance with the internal control standards, have the power to:

7-6.18.5.1 monitor all Class II and Class III gaming on a continuing basis;

7.6.18.5.2 inspect and examine all premises on which Class II and Class III
gaming is conducted; and

7.6.18.5.3 demand access to and inspect, examine, photocopy, and audit all
papers, books, and records respecting gross revenues of all Class II and Class II
gaming or any other matters necessary to ensure and enforce compliance with the
MICS.

7.6.18.6 Provide that any failure to adopt internal control standards pursuant
to this section 7.6.18, perform Agreed-Upon Procedures pursuant to 7.6.18.4,
prevent or obstruct the exercise of any of the Commission’s powers under Section
7.6.18.5, or comply with the internal control standards, once adopted, is a
violation of this Gaming Act. The Chairman of the National Indian Gaming
Commission shall have the authority to remedy violations of this Gaming Act
under 25 U.S.C. § 2713 and its implementing regulations, and the Tribe shall have
all rights and remedies available thereunder.

7.6.19 Carry out such other duties with respect to the regulation of Gaming
Activities on Tribal Lands as required under Applicable Law, including this
Gaming Act, IGRA, and the Compact, and as the General Council shall direct.

7.6.20 Carry out such other duties as assigned by the Business Committee of
the Tribe, regardless of whether such duties relate to the regulation of Gaming
Activities on Tribal Lands. Such assignment shall be made through appropriate
policy or procedure in order to capitalize upon certain expertise of the Gaming
Commission.

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(60) days after the employee begins work. The Gaming Operation 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:

7.12.17.2.1 Steps taken in conducting a background investigation;

7.12.17.2.2 Results obtained;
7.12.17.2.3 Conclusions reached; and
7.12.17.2.4 The basis for those conclusions.

7.12.17.3 The Gaming Commission shall provide to the NIGC or other
applicable 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.

7.12.17.4 If a license is not issued to an applicant, or the license is granted
and later revoked, 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.

7.12.18 Granting a Gaming License.

7.12.18.1 If, within a thirty (30) day period after the NIGC receives a report
as required above, the NIGC notifies the Gaming Commission that it has no
objection to the issuance of a license pursuant to the license application filed for a
Key Employee or Primary Management Official for whom the Gaming
Commission has provided an application and investigative report, the Gaming
Commission may issue the license.

7.12.18.2 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 above until the NIGC receives the additional information.

7.12.18.3 If, within the thirty (30) day period established above, 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 to issue
the license to such applicant.

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confidential or proprietary information; (d) is a person whose routine
employment duties require or authorize access to areas of the Gaming Facility
that are not accessible to the public; or (e) is a person whose routine employment
duties require or authorize access to confidential or proprietary information
regarding the Gaming Facility where such person may have the ability to alter or
manipulate such information for illicit or unauthorized purposes.

7.310 “Gaming Enterprise” or “Gaming Operation” means any gaming
business, event, enterprise or activity conducted by or under the jurisdiction of
the Tribe.

7.311 “Gaming Facility” means any building in which Class II] gaming
activities or gaming operations occur, or in which the business records, receipts,
or other funds of the Class III gaming operation are maintained (but excluding
offsite facilities primarily dedicated to storage of those records, and financial
institutions), and all rooms, buildings, and areas, including parking lots and
walkways, a principal purpose of which is to serve the activities of the Tribe’s
Gaming Operation. Nothing in this Gaming Act prevents the conduct of Class II
gaming (as defined under IGRA) in the Gaming Facility.

7.3.12 “Gaming Resources” means any goods or services provided to or
used in connection with Gaming Activities, whether exclusively or otherwise,
including, but not limited to, equipment, furniture, gambling devices and
ancillary equipment, implements of Gaming Activities such as playing cards and
dice, furniture designed primarily for Gaming Activities, maintenance or security
equipment and services, gaming consulting services, and the like. The term shall
not include professional accounting or legal services.

7.3.13 “Gaming Resource Supplier” or “Gaming Contractor” means
any person or entity who, directly or indirectly, manufactures, distributes,
supplies, vends, leases, or otherwise purveys Gaming Resources to the Tribe’s
Gaming Operation, Gaming Enterprise, or Gaming Facility. The Gaming
Commission may exclude a purveyor of equipment or furniture that is not
specifically designed for, and is distributed generally for use other than in
connection with Gaming Activities, if the purveyor is not otherwise a Gaming
Resource Supplier under the Compact, and the compensation received by the
purveyor is not grossly disproportionate to the value of the goods or services
provided, and the purveyor is not otherwise a person who exercises a significant
influence over the Gaming Operation.

7.3.14 “General Council” means the governing body of the Tribe.

7.3.15 “Key Employee” means a person who performs one or more of the
following functions: bingo caller; counting room supervisor; chief of security;
custodian of gaming supplies or cash; floor manager; pit boss; dealer; croupier;
approver of credit; or custodian of gaming devices, including those persons with
access to cash and accounting records within such devices. If not otherwise
included, any other person whose total cash compensation is in excess of

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Gaming Act

7.12.9 License Investigations. The Gaming Commission may employ all
reasonable means, including engaging outside services and investigators and
holding hearings, to acquire the information necessary to determine whether or
not a license should be issued. Applicants shall agree to release all information
necessary in order for the Gaming Commission to achieve its goals under this
Gaming Act and to furnish such information to the NIGC, the State Gaming
Agency, or other agencies as may be required by Applicable Law.

7.12.10 License Renewal. All licenses shall be subject to renewal at least
every two (2) years, and more frequently if so required by the Gaming
Commission or other applicable law. Such licenses may be revoked or suspended
upon the occurrence of any act which, if known during the application process,
would have tended to disqualify such person or entity for such a license.

7.12.11 License Fees. Unless specifically waived by the Gaming Commission,
all persons applying for a license shall be required to pay all applicable license
fees and costs when due, including a reasonable deposit for costs that may be
incurred in connection with the license application. Estimates of licensing costs
will be provided to applicants upon reasonable request. All fees and costs must
be received by the Gaming Commission prior to issuance of the license, unless the
Tribe or the Gaming Operation has agreed to reimburse the Gaming Commission
directly for all or part of such fees and costs.

7.12.12 Standards. All persons engaged by or associated with any Gaming
Activity on Tribal Lands shall conduct themselves with honesty, integrity, and
with such decorum and manners as necessary to reflect positively on the Tribe, its
members and the Gaming Activities. Any failure to abide by such standards, or
any violation of a rule, regulation, law, custom or tradition of the Tribe, the
Gaming Commission, or the Gaming Operation, or with the terms or conditions
of the license, may be grounds for immediate suspension or revocation of any
license issued hereunder.

7.12.13 Background Investigations

7.12.13.1 The Gaming Commission shall request from each Primary
Management Official, Key Employee, and any other applicant for a Class A
license, unless provided otherwise by the Gaming Commission consistent with
Applicable Law, all of the information specified in subsections 7.12.13.1.1 through
7.12.13.1.14 below, as well as any other information required on the gaming
license application. The Gaming Commission reserves the right, at any time, to
request additional information during or subsequent to any background
investigation.

7.12.13.1.1 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);

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7.13.1.1 Privacy Act Notice.

In compliance with the Privacy Act of 1974, the following information is
provided: Solicitation of the information on this form [your application for a
gaming license and any renewal thereof] 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 granted a gaming license. The information will be used by the
Tribal Gaming Agency and by the 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 the 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 issuance, denial, 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 the Tribe’s being unable to
license you for a primary management official or key employee position, or other
position as determined by the Tribe.

The disclosure of your Social Security Number (SSN) is voluntary.
However, failure to supply a SSN may result in errors in processing your
application.

7.13.1.2 Notice Regarding False Statements.

A false statement or any part of your license application may be grounds
for denying a license or the suspension or revocation of a license. Also, you may
be punished by fine or imprisonment (18 U.S.C § 1001).

7.13.2 Existing Licensees. Any existing Key Employee or Primary
Management Official, or other Class A licensee, unless otherwise specifically
exempted by the Gaming Commission, shall be notified that they shall either:

7-13.2.1 Complete a new application form that contains the Privacy Act
Notice and the Notice Regarding False Statements; or

7.13.2.2 Sign a statement that contains the Privacy Act Notice and consent
to the routine uses described in that Notice and sign a statement that contains the
Notice Regarding False Statements.

SMTC 7.14 Class III Gaming: Compact

In addition to the provisions set forth above, Class III gaming shall be engaged
in on the reservation pursuant to a Compact or by an alternative as provided by
IGRA. All negotiations for such Compacts and amendments thereto shall be
conducted through the Tribal Chairman, with the advice and suggestion of the
Gaming Commission, and shall be finalized only upon majority vote of the
General Council after consideration of the terms. In the event the provisions of a

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deems relevant; and

7-12.13.1.14 Fingerprints consistent with procedures adopted by the
Gaming Commission according to 25 C.F.R. § 522.2(h) and, as applicable,
fingerprints to be processed through the State Gaming Agency. For the limited
purpose of obtaining fingerprints in compliance with 25 C.F.R. § 522.2 (h) the
Tribal Gaming Commission shall be the designated law enforcement agency.

7.12.14 Investigation Process. The Gaming Commission shall conduct or
cause to be conducted, an investigation sufficient to make a determination of
eligibility as required under this Gaming Act and other Applicable Law. This
shall include verification of information submitted by the applicant. The Gaming
Commission shall document all potential problem areas noted and any
disqualifying information. 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.

7.12.15 Fingerprints. The Gaming Commission shall cause fingerprints to be
taken and forwarded to the NIGC and to the State Gaming Agency, as applicable,
consistent with all applicable laws and the Compact. Fingerprints shall be
processed through the FBI and/or other available state sources as applicable to
determine the applicant’s criminal history, if any.

7.12.16 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 the Gaming Operation. If the
Gaming Commission, in applying the standards adopted herein, 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
Operation 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.

7.12.17 Forwarding Licensing Applications and Reports to NIGC.

7.12.17.1 Unless otherwise provided by the NIGC, on or before the date any
Key Employee or Primary Management Official is employed by a Gaming
Operation authorized under this, the Gaming Commission shall forward to the
NIGC the person’s completed application for employment containing the
information required under Section 7.12.13 of this Gaming Act.

7.12.17.2 Prior to issuing a license to a Primary Management Official or Key
Employee, the Gaming Commission shall forward to the NIGC, together with a
copy of the eligibility determination made under Section 7.12.16 above, an
investigative report on each background investigation. The investigative report
on each background investigation shall be forwarded to the NIGC within sixty

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in excess of $10,000 for filing and possible review. To the extent possible, the
Tribe will approve the lowest responsive and qualified bid.

7.11.3 Reporting Audit Results. The Tribe shall make available the results
of each annual audit to the Tribe’s General Council within thirty (30) days of
completion of the audit. The Gaming Commission shall provide audit results to
the NIGC to the extent required and as otherwise required under applicable law.

SMTC 7.12 Gaming Licenses

7.12.1 Licensing Procedure. The Tribe’s Gaming Licensing procedure
shall be administered through the Gaming Commission. The program shall be an
investigative licensing process under which all applicants for gaming licenses are
evaluated against the standards set forth in, and subject to, the following
applicable laws:

7.12.11 The Gaming Act and any gaming regulations promulgated
thereunder;

7.12.1.2 IGRAand NIGC regulations;
7.12.1.3 Compact requirements, to the extent applicable; and
7.12.1.4 Any other applicable tribal, federal, or state laws.

7.12.2 Licensing Policy and Requirements. It is the 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 Tribal Lands, 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 Tribal Lands without a valid license issued by the Gaming Commission.

7.12.3 Gaming License is a Privilege. Any gaming license or finding of
suitability issued by the Gaming Commission shall be deemed a privilege, and is
subject to suspension or revocation at any time. No license or license renewal
shall be issued that would place the Tribe in violation of Applicable Law. A
gaming license or finding of suitability is subject to renewal at least every two (2)
years.

7.12.4 Burden on Applicant. The burden of proving an applicant’s
qualifications to receive a license hereunder is at all times on the applicant.
Applicants must accept any risk of adverse public notice, embarrassment or other
action that may result from the application process and expressly waive any claim
for damages as a result thereof.

7.12.5 Applicant Claim of Privilege. An applicant may claim any privilege
afforded by law in connection with a gaming license application or investigation,

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true, shall refer the allegation to the General Council for action, which may
include removal of a Commissioner for cause.

7.5.12 Gaming Commission Funding. The Gaming Commission shall be
funded through an annual appropriation by the General Council and such
additional funding actions as the General Council shall deem necessary. Unjust
pressure shall not be placed upon the Gaming Commission through the
budgeting process. After meeting and conferring with the General Council about
such appropriation, the Gaming Commission shall prepare a budget. Such
budget shall be submitted to the Business Committee no later than sixty (60)
days before the end of each Tribal fiscal year. The Business Committee shall, in
good faith, act to approve the budget. The Business Committee may modify the
budget where such modification is needed to properly reflect the intent of the
General Council. Within five (5) days after approval of the budget, funds from
the Tribe’s treasury shall be appropriated for the Gaming Commission’s approved
budget, except that at any time the General Council may prescribe other
schedules for disbursing such funds.

7.5:12.1 Financial Reports. The Gaming Commission shall maintain its
accounts, books and records, including records of all income and expenditures, in
accordance with generally accepted accounting principles and consistent with
Tribal governmental policies regarding management of funds and records. A
financial report shall be rendered by the Gaming Commission to the General
Council at least quarterly. All expenditures shall stay within ten percent (10%) of
the approved budget.

7.5.12.2 Annual Reports. On or before April 30th of each year, the
Gaming Commission shall provide to the Business Committee an Annual Report
summarizing its activities during the prior twelve (12) month period ending on
December 31, and accounting for all receipts and disbursements, a copy of which
shall be provided by the Business Committee to any Tribal member upon his or
her request.

SMTC 7.6 Powers and Duties

The Gaming Commission shall have the power, duty, and primary responsibility
to carry out the Tribe’s regulatory responsibilities under federal or tribal law and
any applicable Compact; to enforce those requirements; and to protect the
integrity of the Gaming Activities and the reputation of the Tribe and the Gaming
Operation under provisions to include the following:

7.6.1 Conduct on-site gaming regulation and control, and inspect, test
internal control systems, audit, examine, and monitor the Gaming Facility;
prepare reports and monitor compliance, including the authority to demand
access to and inspect, examine, photocopy and audit all papers, books and
records related to the Gaming Facility or Gaming Activities.


Gaming Act

SMTC 7.5 Gaming Commission

7-5-1. Establishment. The Tribe hereby establishes the San Manuel
Gaming Commission to be headed by at least one full time Commissioner
appointed by the General Council. The appointed term for the Commissioner
shall not be less than two years, as mutually agreed by the Commissioner and the
General Council. The Commissioner may be reappointed for subsequent terms at
the discretion of the General Council. A Commissioner may not be an elected
official of the Tribe, or employed in any Gaming Enterprise or by the Tribe in any
other capacity, while serving as a Gaming Commissioner. Other Commissioners
may be appointed by the General Council upon the request of the head
Commissioner or as the General Council deems necessary.

7.5.2 Standard of Professional Conduct. Each Commissioner shall
abide by the following standard of professional conduct: confidentiality,
impartiality, fairness, and commitment to upholding the reputation of the Tribe
for conducting Gaming Activities of the highest integrity and honesty.

7.5.3 Other Commission Positions

7.5.31 Secretary/Treasurer. At the discretion of the Gaming
Commission, a member of the Gaming Commission staff may be designated as
Secretary/Treasurer to the Gaming Commission. The Secretary/Treasurer to the
Commission shall be responsible for disbursement of Gaming Commission funds
in accordance with Tribal governmental agency policies and the Gaming
Commission budget. The Commissioner and Secretary/Treasurer shall approve
payment of all goods and services for the Gaming Commission. All funds shall be
paid out from Tribal accounts for the Gaming Commission expenditures and
charged against the Gaming Commission’s approved budget. The
Secretary/Treasurer to the Commission shall also ensure that all official actions
taken by the Gaming Commission are recorded, and that the written records
thereof are maintained in accordance with applicable document retention
policies.

7.5.3.2 Deputy Commissioner. The Gaming Commission may recruit
and employ a Deputy Commissioner, who shall serve at the pleasure of the
Gaming Commission and whose appointment shall be noticed to the Business
Committee. The Deputy Commissioner shall assume certain delegated duties and
responsibilities as determined by the Gaming Commission.

7.5.4 SuitabilityStandards. The Gaming Commissioner, Deputy
Commissioners and Gaming Commission employees must meet or exceed the
qualifications established under this Gaming Act and the Compact. For the
purpose of conducting background investigations of and issuing licenses to the
Commissioners, Deputy Commissioners and Gaming Commission employees,
such persons shall be deemed to be Key Employees under this Gaming Act and
shall be required to pass a background investigation and hold a valid gaming
license consistent therewith, including a review of financial, criminal, and

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$50,000 per year, and the four most highly compensated persons in the Gaming
Operation, are included in the definition of Key Employee. Key Employee shall
also include any employee considered a Key Employee under criteria established
by the State and the Tribe under the Compact, as well as any person whose
employment duties require or authorize access to confidential or proprietary
information regarding the Gaming Facility where such person may have the
ability to alter or manipulate such information for illicit or unauthorized
purposes. At the discretion of the Gaming Commission, other positions or
persons may be included under the definition of Key Employee and are subject to
the requirements thereof.

7-316 “National Indian Gaming Commission” or “NIGC” means the
federal gaming commission established under IGRA.

7.317 “Person” means any natural person or entity, including but not
limited to corporations, partnerships and trusts.

7-318 “Primary Management Official” means 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
Operation; 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 be subject to the requirements
for Primary Management Officials.

7.3.19 “Reservation” or “Tribal Lands” means all lands under the
jurisdiction and control of the Tribe, including those lands that satisfy the
definition of “Indian lands” as set forth in IGRA.

7.3.20 “State” means the State of California.

7.3.21 “State Gaming Agency” means the entity authorized to investigate,
approve, and regulate Class III gaming licenses pursuant to the Gambling Control
Act (Chapter 5, commencing with section 19800, of Division 8 of the Business
and Professions Code). If the State fails, under a Compact provision, to designate
an agency authorized to investigate, approve, and regulate gaming licenses, any
function otherwise assigned to the State Gaming Agency shall be assumed by the
Gaming Commission until such time as the State establishes and designates such
an agency.

7.3.22 “Tribal Court” means any court established by the Tribe under its
Judicial Code to hear disputes, or if there is none, an independent tribunal.

SMTC 7.4 Ownership of Gaming

The Tribe has the sole proprietary interest in and responsibility for the conduct
of any Gaming Operation authorized by this Gaming Act.


Gaming Act

but a claim of privilege with respect to any testimony or evidence pertaining
thereto may constitute sufficient grounds for denial, suspension or revocation.

7.12.6 Release of Information. Persons applying for a license shall agree
to release all information necessary in order for the Gaming Commission and any
applicable federal or state entity to complete their suitability determination.
Applicants must update all such information promptly on an on-going basis, and
to furnish such information as may be required by the State Gaming Agency, or
such other governmental agency as may be required by law.

7.12.7 Types of Licenses

7.12.7.1_ Class A License. Before permitting any person to become
associated with any Gaming Activity as an investor or other person owning or
controlling 10% or more interest in any management entity, or any Primary
Management Official, Key Employee, a gaming related position designated by the
Gaming Commission as requiring a Class A license, closely associated
independent contractor, or other individual or entity with influence over the
management or operation of the gaming, or a Gaming Employee, 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:

7.12.7.1.1 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; or

7.12.7.1.2 Anything else in his/her background that might create or
enhance the dangers of unsuitable, unfair, or illegal practices, methods and
activities in the conduct of gaming.

7.12.7.1.3 Those who at any time do not meet the above qualifications shall
be denied a Class A license, or in the case of an existing license, the license may
be revoked.

7.12.7.2 Class B License. Persons not identified as requiring a Class A
License, but whom are to be employed at a Gaming Facility on Tribal Lands in
another capacity, such as in non-gaming related activities, shall be required to
obtain no less than a Class B license from the Gaming Commission. Such persons
must establish that they have not been convicted of certain crimes or engaged in
any activity which the Gaming Commission in its sole discretion deems to render
such person a danger to the safety or integrity of the Gaming Activities, or to the
safety and security of the Tribe, property of the Tribe, any Tribal member, any
Gaming Employee or patron, or the public.

7.12.7.3 Gaming Resource Supplier. Gaming Resource Suppliers must
meet all tribal and state licensing and suitability requirements. Any Gaming
Resource Supplier who, directly or indirectly, provides, has provided, or is
deemed likely to provide at least twenty-five thousand ($25,000) in Gaming

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Gaming Act

cause from the Business Committee, the General Council may suspend, with or
without pay at its own discretion, a Gaming Commissioner from office for no
more than 60 days pending a full investigation of misconduct. At the expiration
of the suspension period, the suspension shall be lifted upon a determination that
no cause exists for removal under this Gaming Act, or, upon a finding of
misconduct, the General Council shall discipline the Commissioner as
appropriate, up to and including removal from office.

7.5.8 Post-Commission Restriction. Unless otherwise provided by the
Gaming Commission, Gaming Commissioners and Commission employees shall
be precluded from consulting or employment in any position with the Tribe’s
Gaming Activities for a period of no less than two (2) years from their date of
termination at the Gaming Commission.

7.5.9. Conflict of Interest. If any Commissioner has a conflict of interest
in investigating, hearing or deciding a matter to come before the Gaming
Commission, such as matters involving a member of the Commissioner's
household or immediate family (parent, sibling, child, or spouse), the
Commissioner shall recuse himself or herself from that matter, and the Deputy
Commissioner, or, in the absence of a Deputy Commissioner, other qualified
employee shall serve as the investigating or hearing official only for the purposes
of that matter.

7.5.10 Personnel and Administrative Policies. The Gaming
Commission shall be deemed to be an agency of the Tribal government and as
such shall be subject to the personnel and other governmental administrative
policies of the Tribal government, as the General Council shall determine from
time to time. In the absence of specific personnel policies, those affecting
management level employees of the Gaming Enterprise shall be applied to the
operation of the Gaming Commission. The Business Committee shall, in good
faith, consider and approve any exceptions necessary to tailor such policies to the
Gaming Commission. A Commissioner employed on a full-time basis shall agree
to be employed in accordance and consistent with policies set for other Tribal
government employees and to strictly abide by Gaming Commission oaths of
confidentiality and professionalism in the discharge of their duties.

7.5.11 Gaming Commission Independence. Notwithstanding the fact
that the Gaming Commission is a Tribal governmental agency and is accountable
to the Business Committee, on behalf of the General Council, for its
administration, in order to maintain independence and ensure the highest level
of integrity, the Business Committee shall not interfere with Gaming Commission
business or compromise the Gaming Commission’s ability to perform its duties
and responsibilities as provided for in this Act. The decisions of the Gaming
Commission regarding licensing, suitability and compliance with Applicable Law
shall be within the exclusive province of the Gaming Commission, except that the
Business Committee may review any allegation that the Gaming Commission has
exceeded its authority under this Gaming Act and if it deems the allegation to be

FT


Gaming Act

7.12.19 Denial of Gaming License Applicants. who are denied a license
must wait for at least two (2) years before they may reapply for a gaming license.

The applicant shall be entitled to appeal a license denial as set forth in this
Gaming Act.

7.12.20 License Suspension. If, after issuing a gaming license, the Gaming
Commission receives reliable information from the NIGC or other reliable source
indicating that a Key Employee, Primary Management Official, or any other
holder of a gaming license is not eligible for employment or to continue to hold
the license under the eligibility criteria established above, the Gaming
Commission shall suspend the license and notify the licensee in writing of the
license suspension and proposed revocation. The Gaming Commission shall
conduct a hearing on the proposed revocation of a license in accordance with the
procedures set forth in this Gaming Act.

For actions taken in response to information provided by the NIGC, the Gaming
Commission shall notify the NIGC of the final decision.

7.12.21 Hearings. The Gaming Commission may conduct hearings as needed
to make regulatory compliance determinations within the scope of this Gaming
Act, and shall conduct hearings for licensing determinations, the imposition of
fines and applicable Patron Gaming Claims; provided, however, hearings on
Patron Tort Claims against the Gaming Facility shall be conducted in accordance
with the Gaming Facility Tort Liability Ordinance.

7.12.21.1 All Gaming Commission hearings shall:

7.12.21.1.1 Be properly noticed in writing to the party that is the subject
of the Gaming Commission’s decision or order. Such notice shall be delivered at
least ten (10) business days prior to the hearing;

7.12.21.1.2 Allow the party that is the subject of the Gaming
Commission’s decision or order to present written or oral statements or other
evidence to support his or her position;

7.12.21.1.3 Be documented or recorded and maintained on file in
accordance with the governing records retention policy;

7.12.21.2 Advocates may participate in the hearing on behalf of either party at
the party’s own expense, and the Gaming Commission may seek the advice of the
Tribe’s legal counsel as needed.

7.12.21.3 The Gaming Commission shall weigh the evidence, testimony, and
exhibits and make its decision, based on the credibility of the evidence and
witnesses, by a preponderance of the evidence. Gaming Commission decisions
shall be issued in writing within 30 days of the hearing. All decisions shall
include a statement of facts and a statement of legal authority on which the

7-23


onal No,

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S é
"NG comm”
AUG 30 2010

Norman H. DesRosiers, Executive Director
San Manuel Band of Mission Indians
Tribal Gaming Commission

27995 Highland Ave., Suite 301

Highland, CA 92346

Dear Mr. DesRosiers:

This is in response to your request for the approval of the amended San Manuel
Tribal Gaming Act adopted by Resolution # 2010-007 on July 13, 2010, making several
amendments, including revising the operational structure of the Tribal Gaming
Commission and granting the National Indian Gaming Commission (NIGC) oversight
and enforcement authority over Class III minimum internal controls.

This letter constitutes approval of the amendment. Nothing therein conflicts with
Indian Gaming Regulatory Act requirements or the NIGC’s regulations.

If you have any questions, please feel free to contact Senior Attorney John Hay at
(202) 632-7003.

Sincerely,

Tracie Stevens
Chairwoman

202.632.7066 WWW.NIGC.cov

10005 Tel: 202.632.7003 Fax

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington

CA; Phoenix, AZ; St. Paul, MN; Tulsa, OK

1, OR; Sacramen

REGIONAL OFFICES Port!


Gaming Act

7.6.9 Provide a copy of each Gaming Facility license and renewals thereof to
the NIGC, including, at minimum: the Tribe’s name; name and address of the
Gaming Facility; type of gaming allowed; effective date of license; the signature of
the tribal official responsible for issuing the license; and the name and phone
number of the Gaming Commission.

7.6.10 Hear and resolve disputes against the Gaming Facility or Gaming
Operation, in accordance with procedures established in this Gaming Act and the
Tort Liability Ordinance, consistent with the Compact.

7.6.11 Hire staff and support services as deemed necessary, subject to the
Gaming Commission budget approved by the Business Committee.

7.6.12 To the extent required, comply with any reporting requirements
established under this Gaming Act, the Compact, IGRA and regulations
promulgated thereunder, and other applicable law.

7.6.13 Develop necessary documentation and protocols, and establish joint
cooperative working relationships with federal, state, and local jurisdictions as
necessary to assist in ensuring the effective regulation of the Tribe’s Gaming
Activities.

7.6.14 Implement appropriate rules, regulations, and procedures to ensure
the effective enforcement of the provisions of this Gaming Act, including but not
limited to:

7.6.14.1 Protect the physical safety of gaming patrons, employees, and
others in the Gaming Facility;

7.6.14.2 Ensure the physical safeguarding of assets transported to, within,
and from the Gaming Facility;

7.6.14.3 Prevent illegal activity in the Gaming Facility or Gaming Operation
through:

7.6.14.3.1 Maintenance of employee procedures and a surveillance system
in accordance with industry standards;

7.6.14.3.2 Maintenance of detailed and permanent records of all
occurrences and incidents in the Gaming Facility that deviate from normal
operating policies and procedures;

7.6.14.3.3 Establishment of employee procedures to detect theft, cheating
and fraud;

7.6.14.3.4 Development of an exclusion policy that includes a right toa
hearing and requires maintenance of a list of persons barred from the Gaming
Facility;


Gaming Act

7.6.2 Investigate any suspicion of wrongdoing in connection with the
Gaming Facility or Gaming Operation, or related to any Gaming Activity or
licensee, including potential licensing or internal control violations, or
interference with Gaming Commission operations, and require correction of
violations as the Gaming Commission deems necessary, including establishing
and imposing fines or other sanctions against licensees or other persons who
interfere with or violate the Tribe’s gaming regulatory requirements under
applicable federal or tribal law or the Compact, and by notification to applicable
regulatory authorities as deemed necessary for violations not corrected in a
timely manner.

7.6.3 Conduct, or cause to be conducted, such investigations as may be
necessary to determine compliance with applicable laws, including this Gaming
Act, or any contracts, agreements, goods, services, events, incidents, or other
matters related to Gaming Activities.

7.6.4 Conduct, or cause to be conducted, background investigations
regarding any person or entity in any way connected with any Gaming Activity
and/or the Gaming Operation, and issue licenses and identification badges to, at
minimum, all Key Employees, Primary Management Officials, and Gaming
Resource Suppliers according to requirements at least as stringent as those
established in 25 C.F.R. Parts 556 and 558; provided no Commissioner shall
provide any personal endorsement, recommendation or other support for an
applicant, in accordance with this Gaming Act and the Compact.

7.6.5 Administer oaths or affirmations to witnesses appearing before the
Gaming Commission; hold hearings, sit and act at such times and places,
summon persons on Tribal Lands to attend and testify at such hearings, take
testimony, and receive such evidence as the Gaming Commission deems relevant
to fulfill its duties.

7.6.6 Execute agreements necessary to receive comprehensive criminal
history and other background investigation information from other jurisdictions
and sources.

7.6.7. Implement and administer a system for investigating, licensing
(including license issuance, renewal, denial, and revocation), and monitoring for
the Gaming Facility, employees, Gaming Contractors, vendors, suppliers,
investors, and others connected with Gaming Activities, as described below,
including the licensing of Gaming Facilities, individuals and entities as required
under this Gaming Act, IGRA, or any applicable Compact.

7.6.8 Ensure, monitor, and direct inspections of Gaming Facilities by
qualified building and safety experts in order to comply with the Tribe's building
and safety codes; provide reports as requested to the State if applicable under the
Compact; review reports; and issue a certificate of occupancy to the Gaming
Facility.

79:


Gaming Act

employment history, contact with references, and all other suitability

requirements for certification or licensing by the State or the Tribal Gaming
Commission.

7.5.5 Background Investigation. Background investigations of Gaming
Commissioners, Deputy Commissioners, and Gaming Commission employees, as
designated by the Gaming Commission, shall be conducted by an independent
investigator or an investigator appointed by the Gaming Commission under the
direction of the Gaming Commission, and if deemed necessary, the Tribe’s
attorney. The investigator shall conduct an investigation sufficient to make a
determination of eligibility as required under this Act and other applicable law.
This shall include verification of information submitted by the applicant. In
conducting the background investigation, the investigator and the Gaming
Commission shall maintain as confidential the identity of each person
interviewed in the course of the investigation. The investigator shall document
all potential problem areas noted and any disqualifying information. The
attorney and/or Gaming Commission shall keep the details of the investigation
confidential, but the attorney may confer with the investigator or any other
person experienced in conducting or evaluating background investigations
provided such other person agrees to maintain the confidentiality of the
information obtained about the applicant.

7.5.5.1 The attorney and/or Gaming Commission shall make a
determination as to whether the suitability standards contained within this
Gaming Act have been met, and if so, shall certify that finding in writing to the
Business Committee.

7.5.5.2 Background investigations of all Gaming Commission employees
that are not conducted by an independent or appointed investigator as provided
for above shall be conducted by the appropriate Gaming Commission staff as
directed by the Gaming Commission, unless otherwise provided for by the
Gaming Commission.

7.5.6 Compensation. The salaries for Commissioners shall be approved by
the Business Committee as part of the annual budget, in conjunction with a
recommendation of Human Resources. Subject to a budget to be approved on an
annual basis by the General Council, Commissioners shall be reimbursed for
expenses incurred in connection with the performance of their duties as
Commissioners and in accordance with the budget. Policies with respect to
reimbursement of expenses shall be the same as those applicable to other Tribal
government employees. Any Commissioner employed on a full-time basis shall
be eligible for the same fringe benefits as such other full-time Tribal government
employees.

7.5.7 Removal for Good Cause. Commissioners may only be removed
from office before the expiration of their term by the General Council for neglect
of duty, malfeasance or other good cause shown (collectively referred to as “good
cause”). Upon receipt of an allegation of an act or omission that constitutes good

7-6


Gaming Act

7-12.13.1.2 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);

7-12.13.1.3 Names and current addresses of at least three (3) personal
references (who are not related to or living in the same household with
applicant), including one personal reference who was acquainted with the
applicant during each period of residence as listed under subsection 7.12.13.1.2
above;

7.12.13.1.4 Current business and residence telephone numbers;

7.12.13.1.5 A description of any existing and previous business
relationships with the gaming industry generally, including ownership interests
in those businesses;

7-12.13.1.6 A description of any existing and previous business
relationships with Indian tribes, including ownership interests in those
businesses;

7-12.13.1.7 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;

7.12.13.1.8 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;

7.12.13.1.9 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;

7.12.13.1.10 For each criminal charge (excluding minor traffic charges) that
you have ever received, 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 7.12.13.1.8 or 7.12.13.1.9 above:
the criminal charge, the name and address of the court involved and the date and
disposition, if any, of the case;

7.12.13.1.11_ 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;

7.12.13.1.12 Current photograph;

7.12.13.1.13 Any other information the Tribe or Gaming Commission

7-20


Gaming Act

Compact, as approved under IGRA, may be inconsistent with provisions herein,

the approved Compact provisions shall govern, but only to the extent inconsistent
with this Gaming Act.

SMTC 7.15 Interest in Management Contracts by Tribal Official:

No elected official of the Tribe, any Commissioner, or any member of any other
committee or agency of the Tribe, shall have a financial interest in or
management responsibility for any management agreement entered into
pursuant to IGRA, nor shall such elected official serve on the board of directors
or hold (directly or indirectly) ten percent (10%) or more of the issued and
outstanding stock of any corporation, or 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.

SMTC 7.16 Limitations on Gaming

No elected or appointed official of the Tribe or licensed employee shall engage
in or be permitted to engage in either directly or indirectly through another
person, any Class II or Class III Gaming Activities authorized hereunder. Such
limitation shall not apply in instances where, as pre-approved by the Gaming
Commission, the individual engages in such activities as a part of an event
designed specifically for such individuals or for training purposes.

SMTC 7.17 Service of Process

The Tribe designates the Chairperson of the Tribe as its agent for the service of
official determinations, orders, or notices of violation from any federal or state
agency. The Gaming Commissioner shall also receive any notice related to
gaming from any state, local or federal agency, including the NIGC and the State
Gaming Agency.

SMTC 7.18 Tribal ing Corporation

Nothing in this Gaming Act shall prevent the Tribe, through its General
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
Gaming Act.

SMTC 7.19 Prior Gaming Ordinances; Effective Date

To the extent inconsistent with this Ordinance all prior gaming ordinances are
hereby repealed on the effective date of this Ordinance. After adoption by the

7-26


Gaming Act

MTC 7.3 Definitions

: Unless specified otherwise, terms used herein shall have the same meaning as
in IGRA, including but not limited to references to “Class I,” “Class II,” and “Class
III” gaming. Terms shall have the following meanings:

7.3.1 “Applicable Law” means IGRA and regulations promulgated
thereunder, the Compact, this Gaming Act, and all other applicable laws and
regulations promulgated under State, Federal, and Tribal law.

7.3.2 “Applicant” means an individual or entity that applies for a tribal
gaming license.

7.3.3 “Association” means the association of tribal and state gaming
regulators as established under the Compact, the membership of which
comprises up to two representatives from each tribal gaming agency of those
tribes with whom the State has a Compact under IGRA, and up to two delegates
each from the State Division of Gambling Control and the State Gambling Control
Commission.

7.3.4 “Commissioner” means a member of the San Manuel Gaming
Commission.

7.3.5 “Compact” means any Tribal-State Gaming Compact, including
amendments thereto, entered into by the Tribe pursuant to IGRA to govern the
conduct of certain Class III gaming activities on Tribal Lands.

7.3-6 “Gaming Act” means the San Manuel Gaming Act of 1989, as
amended.

7.3.7. “Gaming Activities” means any Class I, Class II, or Class III gaming
activity authorized under this Gaming Act or under the jurisdiction of the Tribe.

7.3.8 “Gaming Commission” means the tribal governmental agency
established by the Tribe under this Gaming Act to monitor Gaming Activities,
investigate wrongdoing, conduct background investigations, issue licenses, and
perform other duties as required for the regulation of gaming on the Reservation.
For the purpose of conducting background investigations of and issuing licenses
to the Commissioners and Gaming Commission employees, such persons shall be
deemed to be Key Employees under this Gaming Act and shall be required to pass
a background investigation and hold a valid gaming license consistent therewith.

7.3.9 “Gaming Employee” means any person who: (a) operates,
maintains, repairs, assists in any Gaming Activity, or is in any way responsible for
supervising such Gaming Activities, including persons who conduct, operate,
account for, or supervise any such Gaming Activity; (b) is in a category under
federal law, the Compact, or tribal gaming law requiring licensing; (c) is an
employee of the Gaming Commission or of the Gaming Operation with access to


Gaming Act

MTC 7.7 Enforcement

In the event it is determined that a licensee or the Gaming Enterprise has
violated Applicable Law, including any internal control procedures or policy of
the Gaming Enterprise, a written report of such incident shall immediately be
made to the Gaming Commission. The Commission shall then investigate and
determine what action should be taken, if any. If action is required, the
Commission shall issue a citation to the Gaming Enterprise, notifying it of the
specific violation(s) or issues, measures which must be taken for correction, and a
reasonable time limit in view of all the circumstances in which such action must
be taken. Copies of any such citation shall simultaneously be served on the
Business Committee of the Tribe. The Commission may enforce such citations
by: (a) suspending or revoking the licenses of any persons found to have violated
Applicable Law; or (b) such lesser penalty or other remedy as the Commission
shall determine, including the imposition of fines or sanctions. Nothing herein
shall prevent or prohibit the Gaming Commission from seeking compliance
assistance from local, federal, or state gaming or law enforcement agencies, the
Bureau of Indian Affairs, or the National Indian Gaming Commission,
particularly but not limited to any instance in which the Gaming Enterprise and
the General Council have failed to correct a violation of Applicable Law.

SMTC 7.8 Permitted Gaming Activities: Regulation of Gaming
Activities

7.8.1 Unauthorized Gaming Prohibited. All Gaming Activities on
Tribal Lands are prohibited except as expressly permitted under this Gaming Act.

7.8.1.1 Class I Gaming. Class I Gaming Activities are hereby permitted
to the extent consistent with Tribal custom and practice and provided the General
Council is given at least seven (7) days prior notice in writing of any intention to
engage in such gaming. The General Council may prohibit any conduct that is
claimed to be Class I gaming if the Council finds that such conduct is not in
accordance with Tribal customs or practices or violates IGRA or any other law.

7.8.1.2 Class II and Class III Gaming. Class II and Class III gaming on
Tribal Lands are hereby authorized as permitted under Applicable Law, provided
the Tribe has the sole proprietary interest in and responsibility for the conduct of
any Gaming Operation. The Tribe also reserves the right to contract with and
license a person or entity to own, operate, or manage the Gaming Operation
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 or engaging any person or entity to assist the Tribe in the
management of a Gaming Activity pursuant to a management agreement entered
into under the provisions of IGRA or any other applicable law. Class III gaming
shall be conducted in accordance with a Compact, or any alternative thereto as
provided by IGRA.

7-13


Gaming Act

Gaming Commission shall also determine and certify that the Gaming Facility
and any new Gaming Facility construction meets the Tribe’s building and safety
codes, and any applicable federal or Compact requirements, and issue a
certificate of occupancy to the Gaming Facility as required under the Compact.

7.10.1.2 The Gaming Facility license shall identify: the name and address of
the Gaming Facility; type of gaming allowed; effective date of the license; name
and telephone number of the Gaming Commission; and such other matters as the
Gaming Commission may deem necessary to the conduct of Gaming Activities
therein, or as may be required under a Compact or other applicable law.

7.10.1.3 The Gaming Facility’s license shall require renewal at intervals as
determined by the Gaming Commission, provided that the valid term for a facility
license shall not exceed two years. The renewal process shall include all
inspections required to certify continued compliance with all applicable Tribal
Codes, the Compact, and NIGC Regulations.

7.10.2 Protection of Environment and Public. The construction and
maintenance of any Gaming Facility, and the operation of Gaming Activities
therein, shall be conducted in a manner which adequately protects the
environment and the public health and safety, in compliance with any standards
required under tribal and federal law, and the Compact.

7.10.3 Dispute Resolution. Patrons who have personal injury or property
damage complaints (“Patron Tort Claims”) against the Gaming Facility or
Gaming Operation shall have the right to remedies provided in the Tribe’s
Gaming Facility Tort Liability Ordinance. Patrons who have complaints arising
from their participation in Gaming Activities at the Gaming Facility (“Patron
Gaming Claims”) shall have the right to remedies as provided in this Gaming Act.

SMTC 7.11 Audits

7.11.1 Annual Audit. The Gaming Commission shall ensure the
engagement of a recognized independent accounting firm to conduct an annual
audit of the Tribe’s Class II and Class III Gaming Operations.

7.11.2 Contract Review and Audit. Each gaming related contract for
supplies, services, or concessions that results in purchases of more than $25,000
annually (except contracts for professional legal or accounting services) relating
to Class II or Class III gaming on the Tribal Lands shall be included in the
independent audits. At least three (3) bids shall be required before any contract
may be executed for goods or services in connection with any Gaming Activity for
an amount in excess of $25,000 or to be performed over a period of more than
twenty (20) days. The General Council may waive the requirement of three (3)
bids upon good cause shown. All proposals for bids as well as all bids received
may be reviewed at the discretion of the Gaming Commission. The Gaming
Commission shall receive a copy of all Gaming-Related Contracts for an amount

7-15


Gaming Act

CHAPTER 7. THE SAN MANUEL GAMING ACT OF 1989:

SMTC 7.1 Title

This Chapter shall be known as the “San Manuel Gaming Act of 1989, as
amended.”

SMTC 7.2 Findings and Policy

7.2.1. This Ordinance is adopted by the General Council of the San Manuel
Band of Mission Indians (“Tribe”), a federally recognized Indian Tribe, pursuant
to its authority under the Tribal Articles of Association; for the purpose of
establishing the terms for gaming on Tribal Lands for Tribal governmental and
charitable purposes, and to continue to develop and operate such gaming
consistent with the findings herein and in conformity with the federal Indian
Gaming Regulatory Act (25 U.S.C. § 2701 et seq. (“IGRA”)), and regulations
promulgated thereunder, and the Tribal-State Gaming Compact with the State of
California (“Compact”). This Gaming Act and regulations promulgated
hereunder shall constitute gaming regulations for the Tribe. Based on its
experience and observations in connection with such gaming and its studies of
similar experiences by other Indian tribes, the Tribe finds that tribally controlled
gaming on its reservation is a valuable means of promoting Tribal economic
development, self-sufficiency, employment, job training and strong Tribal
government. The Tribe further finds that when regulated by the Tribe, such
gaming can remain free from organized crime and other corrupting influences
and can be conducted fairly and honestly by both the operators and the players.

7.2.2 The General Council finds that:

7.2.2.1 Gaming on its Tribal Lands is a valuable means of generating
revenues needed to promote Tribal self-sufficiency, economic development,
employment, job training, and a strong Tribal government, and to fund and
ensure essential social programs and services;

7.2.2.2 The Tribe desires to conduct certain forms of gaming to provide
needed revenues to the Tribe and to regulate and control such gaming in a
manner that will protect the environment; the Tribal Lands; the health, security
and general welfare of the Tribe; the patrons; and the community; and

7.2.2.3 The Tribe desires to manage and regulate such gaming as
authorized under this Ordinance in a manner that will adequately address the
interests and needs of the Tribe.

1 Adopted by the General Council on August 31, 1989 as 89.02. Amended September 19, 1994;
May 13, 1997; September 28, 1999; November 9, 1999; November 11, 2003; March 6, 2004;
September 9, 2008 and July 13 , 2010.


Gaming Act

decision is based. Decisions shall be delivered to the party and include
information and instructions for appealing the decision.

7-12.21.4 Nothing herein shall prohibit the Gaming Commission from taking
immediate action in emergency situations to protect the health and safety of
patrons and employees or assets of the Tribe. Such actions shall immediately be
followed by the hearing process.

7.12.22 Appeals.

7.12.22.1 Gaming Commission decisions may be appealed to the Appellate
division of the San Manuel Tribal Court by filing a Notice of Appeal with the San
Manuel Tribal Court and the Gaming Commission within twenty (20) days of the
issuance date of the Gaming Commission decision. Failure to file a Notice of
Appeal within the time specified herein renders the Gaming Commission decision
unappealable.

7.12.22.2 All decisions of the Tribal Court shall be final.

7.12.22.3 In the event the Tribal Court is not in operation or no longer in
existence, parties may appeal the Gaming Commission’s decision by filing a
Notice of Appeal with the Gaming Commission within twenty (20) days of the
issuance date of the Gaming Commission decision. Failure to request a hearing
within the time specified herein renders the Gaming Commission’s decision
unappealable. The Gaming Commission shall transmit the Notice of Appeal to an
independent tribunal within seven (7) days of receipt along with the record
created in the Gaming Commission hearing.

Appeals shall be conducted before an independent tribunal, which shall
schedule a hearing within ninety (90) days of receipt of the Notice of Appeal from
the Gaming Commission. The independent tribunal shall send written notice to
each party informing them of the hearing date, time and location at least thirty
(30) days prior to the hearing. All hearings shall be conducted in accordance
with the rules established by the independent tribunal. The decision of the
independent tribunal shall be final.

7.12.23 Effect of Compact. Notwithstanding anything in this Gaming Act to
the contrary, any licensing procedures required under the Compact shall be
implemented as provided therein, and the Gaming Commission may adopt
regulations integrating such procedures with the foregoing.

SMTC 7.13 Application Forms

7.13.1. Notices. 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 consistent with
applicable law, shall contain the notices set forth in subsections 7.13.1.1 and
7.13.1.2 below:

7-24


San Manuel Band of Mission Indians ————

CERTIFICATE OF RESOLUTION
Resolution No. : 2010-007 Ups
GENERAL COUNCIL

OF THE
SAN MANUEL BAND OF MISSION INDIANS

%

Approval of Proposed Amendments to the San Manuel Gaming Act of 1989

WHEREAS, the San Manuel Band of Mission Indians (“Tribe”) is a
federally recognized Indian tribe;

WHEREAS, the San “Manuel General~Council is the Tribe’s duly-
authorized governing*body, withthe authority..and-responsibility to rexercise
the powers and privileges’of’self-government pursuant to the Tribe’s Articles of
Association, Article III and other tribal law;

WHEREAS, the General Council adopted the San Manuel ‘Gaming Act of
1989 (“Act”) on August 31, 1989;

WHEREAS, the Act was subsequently submitted)to the National Indian
Gaming Commission, Department of thé Interior for review and approval, and
was deemed approved;

WHEREAS, the Act was S subsequently amended and “approved by the
Department of the Interior in 2008; and

WHEREAS, the General Council’ has determined it is in the best interest
of the Tribe to further amend,the Act.

NOW, THEREFORE 3E IT RESOLVED, that the San Manuel Band of
Mission Indians, by and th rough its General Council, hereby approves the
proposed amendments to the San Manuel Gaming Act of 1989, as reflected in
the ‘proposed version attached hereto and incorporated herein by reference.

CERTIFICATION

By a vote of the General Council of the San Manuel Band of Mission
Indians, at’a duly held meeting thereof held at the Community Center at 12:00
p.-m., on July 13, 2010, the above-recited resolution was passed by the
General. Council following a vate of 12 “for”, _0O “opposed,” and _4
“abstentions”.

Dated: Shofooto z Pert NOD

ames C. Ramos, M.B.A., Chairman

26569 Community Center Drive * Highland, CA 92346 © Office: (909) 864-8933 * FAX: (909) 864-3370
P.O. Box 266 * Patton, CA 92369



Gaming Act

General Council, this Ordinance and any subsequent amendments thereto
become effective on the date of final approval by the NIGC, as applicable.

SMTC 7.20 Severability

If any provision or application of this Gaming Act is determined by review to be
invalid, such determination shall not be held to render such provision
inapplicable to other persons or circumstances, nor shall such determination
render invalid any other provision of this Gaming Act.

SMTC 7.21 Amendments

All provisions of this Gaming Act are subject to amendment by the General
Council. Regulations promulgated by the Gaming Commission under this
Gaming Act are subject to amendment by the Gaming Commission.

SMTC 7.22 Sovereign Immunity Preserved

Nothing in this Gaming Act is intended or shall be construed as a waiver of the
sovereign immunity of the Tribe, and no manager, officer, or employee of the
Gaming Commission or the Tribe or the Gaming Facility shall be authorized, nor
shall they attempt, to waive the immunity of the Tribe.

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Gaming Act

7.6.14.3.5 Conduct of an annual CPA audit;
7-6.14.3.6 Approval of all game rules and regulations;

7.6.14.3.7 Establish and impose license fees, sanctions, fines, and
conditions as appropriate under applicable law;

7.6.14.3.8 Investigate and ensure compliance with any requirements for
tribal ownership, management, and control of the Gaming Facility and Gaming
Operation, as set forth in applicable law;

7.6.14.3.9 Investigate and ensure compliance with age restrictions for
patrons including provisions prohibiting minors in the Gaming Facility and age
limits on service of alcoholic beverages as provided under applicable law;

7.6.14.3.10 Carry out any requirements under Tribal or federal law or
Compact for the protection of the health and safety of Gaming Facility patrons,
guests, and employees, including requirements that the Gaming Facilities meet
building and safety codes duly adopted by the Tribe; and

7.6.14.3.11 Approval of Gaming Facility floor plans, closed-circuit television
system, and cashier’s cage, minimum staffing and supervisory requirements, and
technical standards for gaming device operations.

7.6.15 Ensure gaming devices are not transported to or from the Tribal Lands
except in accordance with procedures established by an agreement between the
Gaming Commission and the State Gaming Agency. The agreement shall require
at least ten (10) days notice to the county sheriff, and transportation only to
specific destinations for specific purposes as established in the agreement and the
Compact.

7.6.16 Promulgate rules for each Class I, Class II or Class III game allowed
under this Gaming Act to govern the conduct of such games.

7.6.17 Comply with a Tribal conflict of interest policy to ensure that
Commissioners are free from corruption, undue influence, compromise, and
conflicting interests in the conduct of their business.

7.6.18 The Gaming Commission shall ensure compliance with 25 C.F.R. Part
542 by formally adopting and making applicable to the Gaming Operation(s)
internal control standards that:

7.6.18.1 Provide a level of control that equals or exceeds those minimum
internal control standards (“MICS”)set forth in 25 C.F.R part 542, as published or
as revised by mutual agreement between the National Indian Gaming
Commission and the Tribe;

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Gaming Act

SMTC 7.9 Use of Gaming Revenues

7.9.1 _ Except as provided for under the terms of an agreement pursuant to
the provisions of IGRA or as otherwise permitted by law, all net revenues
generated from any Class II or Class III Gaming Activity are the property of the
Tribe. Net revenues from Class II and Class III Gaming Activities shall only be
used for the following purposes:

7-9.1.1 To fund tribal government operations or programs;

7.9.1.2 To provide for the general welfare of the Tribe and its members;
7-9.1.3 To promote economic development for the Tribe;

7-9.1.4 To donate to charitable purposes; or

7-9.1.5 To help fund operations of local governmental agencies.

7.9.2 Except for rights to per capita payments, if any, or as set forth below,
no Tribal member shall have any interest or expectation in any funds generated
by any Gaming Activity. All such funds are deemed Tribal funds only and are and
shall remain the property of the Tribe until disbursed, if at all, from the general
treasury. The General Council shall retain the sole discretion as to how such
funds are utilized, and 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 for accounting purposes or to comply with applicable law. Notwithstanding
anything herein to the contrary, if the Tribe elects at any time to make per capita
payments to the members, it shall authorize such payments only upon approval
of a plan submitted to the Secretary of the Interior under 25 U.S.C. § 2710(b)(3).
Payments out of general treasury funds to tribal members under other tribal
programs, including those relating to health, welfare, education, elderly care, and
housing, shall not be deemed to be “per capita” payments when such funds are
paid from the Tribe’s general treasury.

SMTC 7.10 Operation of i lishmen:

7.10.1 Gaming Facility License. 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 Gaming Facilities pursuant to the provisions of this Gaming Act, the
Compact and other applicable law. Such activities shall be conducted in
accordance with the terms and conditions of the license issued to the Gaming
Facility by the Gaming Commission prior to the conduct of any Gaming Activities
therein.

7.10.1.1 Before Gaming Activities can be conducted in any Gaming Facility,
the Gaming Commission shall inspect and license each Gaming Facility in
accordance with this Gaming Act, the Compact and other applicable law. The

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