NOTICE OF VIOLATION 

Ref. No.: NOV-98-15 

VIA FAX AND CERTIFIED MAIL 

To. Lawrence Cmtrell, Chairman 

Pit River Indian Tribe 

P.0 Drawer 70 

Burney, CA 96013 

Fax (530) 335-3 140 

Respondent 

1. Under National Lndian Gaming Commission (hereinafter referred to as the "MGC") 

reguIations, the Chainnan may issue a notice of violation to any person for violation of any 

provision of the Indian Gaming Kegulatofy Act (hereinafier referred to as "IGRA") or 

MGC re~ulation or any provision of the tribal ordinance or resolution approved by the 

Chairman. 25 C.F.R. 8 573.3. 

- > .. 8 -.5 J ; < ..-. L.. . .&. .I.- i i. I:., -1 1..L ---..- ..*Ll: [.!L bLl.-.-LC. .L.<, ;LC Lb 

as the "Tribe" or the "Respondent") is in violation of IGW its tribal gaming ordinance1, 

and NIGC regulations as follows: 

a. The IGRA states that a tribe may engage in gaming if, among other requirements, 

a tribe's approved gaming ordinance requires submission to the NIGC of an annual 

independent audit of the gaming operation. 25 U. S.C. 5 27 1 O(b3(2)(C] and 

(d)(2)(A). 

b. Section 4(n) of the Approved Ordinance requires the Tribe to comply with any 

repofling requirements established under IGRA and the regulations promulgated 

thereunder. Section 8 of the Approved Ordinance requires the Tribe to submit the 

annual independent audit report to the NIGC. 

1 On May 26, 1995, the Tribe adopted a gaming ordinance by Resolution 95-05-02 

(hereinaffer referred to as the "Approved Ordinance") which was approved by the Chairman of 

the NIGC on February 7, 1996 (attached as Exhibit 1). +-, 

1 

1441 L STREFT, N.W. FLOOR WASHINGTON, D.C. 20005 EL: 202-632-7003 FAX 202-g32-7OBB 
c. NlGC regulations require that a tribe cause to be conducted annual independent 

audits of the financial statements of each gaming operation on Indian lands and 

submit a copy of the audit report(s) and any management letter(s) setting forth the 

results of the annual audit(s) to the MGC within 120 days after the end of each 

fiscal year. 25 C.F.R $3 571.12-13. 

d. On August 25, 1998, the audit firm of Moss, Levy, Bartzheim & Albonico, LLP 

(hereinafter referred to as "Moss"), and the Tribe requested an extension until 

November 26, P 998, to submit the annual audit report for the Pit River Casino for 

the fiscal year ended April 30, 1998 (Letter attached as Exhibit 2). 

e. On September 4, 1 998, the NGC informed the Tribe, Moss, and the Tribal 

Gaming Commission that the extension request was denied (Letter attached as 

Exhibit 3). 

f. As of the date of this Notice of Violation (hereinafter referred to as "NOV"), the 

NiGC has not received the Respondent's audit report and management letter for 

Pit &ver Casino for the fiscal year ended April 3 0, 1998. These items were due to 

the NIGC no Iater than August 28, 1998. 

3. The measures required to correct the ongoing violation are: 

a. The Respondent must submit the audit report and any management letter for the 

Pit &ver Casino for the fiscal year ended ApriI 30, 1998, to the NIGC within ten +I ,, - , . , - ,.-- ,-,... - . . ,-f :.:. -,*r,- - " I,.- 1. ' 

The audit repork and management letter are to be submitted to: Chairman, National Indian 

Gaming Commission, 1441 L Street, NW, 9th Floor, Washingon, DC 20005. 

4 The viatation cited in this NOV may result in the assessment of civil fines against the 

Respondent in an amount not to exceed $25,000 per day. Under 25 C.F.R. 3 575.5(a), 

the Respondent may submit written information about the violation to the NIGC Chairman 

within 15 days after service of this NOV (or such longer period as the NIGC Chairman 

may grant for good cause). The NIGC Chairman shall consider any information submitted 

in determining the facts surrounding the violations and the amount of the civiI fine, if any. 

Such information is to be submitted to the address set forth in paragraph 3. 

5. The Respondent may appeal the allegations contained in this NOV to the NIGC within 30 

days after service of this NOV. 25 C.F R. Part 577. The Respondent may appeal the 

allegations by submitting a Notice of Appeal to the MGC at the address set forth in 

paragraph 4 above. The Respondent has a right to be represented by counsel, in such an 

appeal. A Notice of Appeal must reference this NOV. Within ten (10) days aRer filing a 

Notice of Appeal, the Respondent must file with the NTGC a supplemental statement that 
states with particularity the relief desired and the grounds therefore and includes, when 

avaiIabIe, supporting evidence in the form of affidavits. 

If the Respondent wishes to present oral testimony or witnesses at a heating, the 

Respondent must include a request to do so with the supplemental statement. The request 

to present oral testimony must specify the names of the proposed witnesses and the 

general nature of their expected testimony, and whether a dosed hearing is requested and 

why. The Respondent may waive the right to an oral hearing and instead elect to have the 

matter determined by the NTGC solely of the basis of the written submissions. 

6. A copy of the regulations cited in ths NOV is attached for your information (attached as 

Exhibit 4). 

Tadd M. Johnson, $atet,/ 

National Indian 

CC: David Hawkins, Chairman 

Pit River Tribal Gaming Commission 
PET RIVER INDIAN TRIBE 

NOV EXHIBIT 1 
FEB - 7 19% 

Lawrence U. Cantsell 

Triba 1 Designee 

Fit River Tribe 

20255 'T~m~zrack Avc. 

P.O. Drawer 1570 

Burney, CA 95013 

Dear Chairman Cantrell: 

This lettcx responds to your request to review and approvc 

the tribal gaming ordinance, Ordinance No. 4, adopted on Hay 26, 

1395, by the .Pit Riv~r Tri5~ ('Tribe). This letter constitut-cs 

suctr approvalf under the Itlclictn Ganliny Regulatory Act {IGPAj. 

Under the lGRA and the rcrjulations of the National Inclinn 

Gaming Commissian (NIGC) , the Chairman is di'i-ected to review 

ordinances with respect to the rec~~lirements of the IGRA ant1 t1,r 

implementing requ iations. Ti~tls, tile scope of the Chalrn~an's 

review and approval is limited to the requirements of the IGRA 

and the NIGC requlations. Provisions other than those required 

under the IGRA or the PIIGC recjulations that may be incltlclecl in a 

tribal ordinzncc are not subject to review and approval. Also, 

surh approval daes not constitute approval of specific cjamcs. 1 t 

l-llth ihe Chairnan's approval of the Tribe's gaming 

ordinance, the Tribe is now required to conduct brlckyror~nd 

investigations on its key employers ancl primary nar~nrjcrnctit 

officials. The NlGC expects to receive FI completed applicatioi~ 

for each key empleyec and primary management official pt11-sirnilt to 

25 C.F.R. 5 556.5(a) and ~n investigative report on escli 

backqround ~nv~stlcjs tion before iss~iiny a I. icense to a k~y 

employee or p!-imary rn~nac~~ment official pllrsllant to 25 O, F. R. 

5 556. 5(b). 

Thank you lor s~!hmit.tinq thp ordinance of the Pit 12ivpr 

'I'rihe Tor- r~vi~3*,.1 arid ~7pprovr71. The NIGC staff ancl 1 look: -for-!.!ctrd 

to r4orkincj r.ljtl: yr_ll~ r711c1 :]IP Tribe in irnplen~entincj the IGRA. 

Sincerely yours, 
PIT RWER TRIBE 

Ordinance No. 4 

PIT RIVER TRIBAL GAMING ORDINANCE OF 1: 995 

The Pit River Tribe ['Tribe"), a federally recognized Indian Tribe, hereby enacts the following 

ordinance, known as the "PIT RIVER TRlEAL GAMlNG ORDINANCE OF 7995" ("Drdrnance"). Thrs 

Ordinance and any regufabons promulgated thereunder shall constitute the entire gaming regufat~ons for 

the Tnbe. 

Section I. Findin~s and Policy. 

This Ordinance is adopted by the Pit Rlver Tn'bal Council, the governing body of the Pit River Tribe 

of the Pit Rrver Reservation, pursuant to its authorrty under the Tribe's ConshtuZion and By-laws, for the 

purpose of establishing the terms for gaming on the Reservation for tribai governmental and charitable 

purposes, and to develop and operate such gaming consistent with the findings herein and in conform@ 

with the federal. Indian Gaming Regulatory Act (25 U.S.C. 5 2701 et seq. ("IGRA'S) and regulations 

promulgated thereunder. ,.. 

The Tribe finds that: 

a. Gaming under IGRb is a valuable means of reducing unemployment, diversifying revenue 

generating programs, generating revenues that are needed for economic development, to promote tribal 

self-sufficiency, economic development, employment, job training, and a strong tribal government, and to 

fund and ensure essential social programs and services and thereby improve the quality of life among all 

Members of the Tribe; 

.. L. -I . .. employment opportunrues and to regulate and controf such gaming in a manner that will protect TnbaI 

Lands, the enwronment, the health, security and general welfare of the Trrbe, the players, and the 

community; and 

C. The Tribe desires to manage and regulate such gaming in a manner that will adequately 

address such interests and needs of the Tribe. 

Section 2. Definitions. 

Unless specified otherwise, terms used herein shall have the same meaning as in IGRA, including 

but not limited to references to "Net Revenues," "Class I," "Class [I," and "Class I!!" gaming, except for 

references to "Commissioners," "Commission," or "Gaming Commission" which shall mean the Pit R~ver 

Trtbe Gaming commission or its Cornrn~ssioners, cstablrshed and described herein. 

a. "Board of Directors" shall mean those persons responsible for overseeing the operation 

and management of gaming. 

b. "Closely Associated Independent Contractor" shall mean any contractor that shares 

common ownership, common officers, or common directors with any management principal, or a person 

related thereto. 

C. "Gam~ng" shall rnean an activity in which a person stakes or risks something of value on 

the outcome of a contest of chance or a future contingenl event, not under his or her control or rnflucnce, 
upon an agreement OF understanding that the person, or someone else, will receive something of value In 

the event ol a certa~n outcome, but shall not include bona fide business transactrons 

d. "Gaming Activ~bes" shall mean any Class I, Class I!, or Cfass III gam4ng achrty conducted 

by or withrn the jur~sdictjon of the Tribe. 

e. "Garn~ng Comrntssion" or "Commissron" shall mean the Pit River Tribe Gamrng 

Cornrnrss~on, as establrshed herein to monitor the Gaming Activities, investigate wrongdo~ng, conduct 

background ~nveshgations, rssue licenses, and perform other duties as necessary for the regula!jon of 

gamrng on Tribal Lands. 

t. "Gamrng Contractor" shall mean any person or business that manufactures, distributes, or 

supplies gaming devices, other garnrng equipment, other equipment or services, or personnel (including 

gaming management or consulbng se~ces) loany Gaming Activities or Gaming Enw. 

9. "Gaming Entity" shall mean the gaming business, event, or actMty (however organized) 

conducted by or within the jurisdiction of the Tnbe. 

h. "Key Employee" shall mean a person who performs one or more of the following funcfions: 

bingo caller, countjng room supervisor, chief of security, custodian of gaming supplies or cash, floor 

manager, pit boss. deafer, croupier, approver of credit, or custodian af gaming devices including those 

persons with access to cash and accounting recoibs within such devices. If no2 otherwise included, any 

other person whose total cash compensation is in excess of 550,000 per year, and the four most highly 

compensated persons in the Gaming Entity are included in the definition of Key Employees. At the 

discretion -of the Gaming Commission, other posrtjons or persons, and including Gaming Contractors not 

otherwise rncluded, may be included under and subject to the requirements for Key Employees. 

1. "Management Contract" shall mean any contract, subcontract, or collateral agreement LL- --.'? .>-. --.! ---.--- L-- *?L,.& ,.., .- - -A7.-*,- +-- 7-4 7 .,,k.,-,-x r.-+. 2--::.. ,*k - .-4 ,..-- +* - ,' ,. . . . , , . , , -L 

- . . . ,. . , 

J. "Rrlernber" shall mean any duly enrolled member of the Tribe. 

k. "National Indian Gaming Cemrnission" rNIGC7 shall mean the commission established 

under IGFiA 

I. "Net Revenues" shall mean gross gaming revenues of a tribal gaming operation less (a) 

amounts paid out as, or paid for, prizes; and (b) total garnlng-related operahng expenses, excluding 

management fees. 

m "Person" shall mean any natural person or entity, including but not limited to corporations, 

partnerships and trusts. 

n "Primary Management Official" shall mean the person who has management responsibiity 

for a management contract; any person who has authority to hrre and fire employees or to set up worklng 

pol~cy for !he Gam~ng Entity; or the chief financial officer or other person who has financlai management 

responsibilrty. At the drscret~on of the Gaming Comrnisslon, other positions or persons, and ~ncluding 

Gaming Contractors, may be rncluded under and subject to the requirements for primary management 

offjctals. 

o "Related to" shall refer to persons who are related as a father, mother, srster or brother 
P- "Trrbal Council" shall mean the cornmrttee of the elected Tribal reoresentahves. 

established as the governing body of the Tribe by authow delegated pursuant to the Tnbe's ConsMutron 

and By-laws. 

9. 'Tnbal Courtm shall mean any court established by the Trrbe 

r. " Tribal Lands" shall mean those lands which, under IGRA, qualify as "Indian Lands" with 

respect to the Tribe and on which gaming may be conducted. 

Section 3. Ownership of Garninq. 

a. The Tribe shall have the so[e proprietary interest in and responsib~TQ for the conduct of any 

gaming operation authorized by this Ordinance, except to the extent the Tnbe may contract with and license 

a person or entity to own, operate or manage the Gaming Entity pursuant to the provistons of IGRA or as 

othewise permitted by law. 

b. Gaming activities conducted on the Reservation, owned by a person ar entity other than the 

Tribe, shall be licensed and regulated by the Tribe under this Ordinance, and conducted in compliance w~th 

the requirements of IGRA and 25 C.F.R. $9 522.10 and 522.1 1. 

Section 4. Garnincr Commission. 

a. Establishment of Gamina Commission. There is established hereby a Commission acting 

under the autharrty of the Tnbe to be known as the Prt River Tribe Gaming Commission. The Gaming 

Commission is responsible for monitoring, licensing and regulatjon of the Gaming Entity and Gaming 

Activities. 

-- . - I-. - --- ---..- 7.- ...,, c: -- . - . - - ICamrn~sslon snall be appofnted by the Trrbal Counctl. One (1) ai the five (5) Garnrng commissioners shall 

be appo~nted from the Tribal Council, and shall serve only dunng thelr term as a member of the Tribal 

Counctl. 

c. Qualifications for Office. The following minimum requirements must be met to qualify for 

membership on the Commission: 

I. Enrolled Member of the Pit River Tribe; and 

11. Twenty-one (21) years of age. 

d. Oisqualificatrons for Ofice. The following persons shall not serve as Commissioners 

1. Employees of any Gaming Entrty on the Reservation; 

11. Persons related to any Gaming Contractor (including any principal thereof 

or Closely Associated Independent Contractor); or 

... 111. Persons who have been convicted of a felony wthin the Fast five (5) year(s). 

e. Removal from Office. Commissioners may only be removed from ofice before the 

exp~rat~on of theirterms by the Tnbal Council for neglect of duty, malfeasance or other good cause shown 

.. . 
The procedure for removing a Commrssianer shall be the same as for removing a member of the Trrbal 

Councrl 

f. Quorum Three (3) members of the Gaming Commission shall constrtute a quorum 

g.. Officers and Duties. The Gaming Commission shall select, by majorrty vate, a Chairman. 

Vjce-Chairman and Secretarj. The Chairman shall preside over meetings of the Gaming Commission and 

the V~ce-Cha~rrnan shall preside in absence of the Chairman. The Secretary shall record in wnting the 

minutes of ali Garning Cornrnrssion rneebngs and all official actions taken by the Garnlng Commission. 

h -- Meet-. Meetings shall be held at least once per month, on the thrrd Friday of the manth 

at 1 1.00 a m., at the Tube's prrrnary meeting fac~lrty ("Scheduled Meetings"). Any Tnbal member may 

attend Scheduled Meehngs. Scheduled Meetings may be changed at any time by the Garn~ng 

Cornrnrssion, with notice of such change posted prominently at least fwe (5) business days rn advance at 

the Tribe's psimarj meetrng facility Notrce of meehngs shall be given in wrrtjng to each Commissioner, 

served by first class mall or personal delivery at least five (5) business days priar to such meeting. 

Additional meetings shalt be held as called by the Cha~rrnan or by at least three (3) ather Cornm~ssioners. 

Meetings may be called a! any time, by any means, with unanlmeus consent of the Commissioners. All 

Commission discussions, deliberahans, and votes taken regarding specific license applications and retated 

background investigations, or any other invesfgations, and any other matter the Commission deems must 

be kept confidential in order to preserve the integrity of the Gaming Entity or the Tribe or to protect the 

privacy of the applicant, shall be held in Execuhve Session. 

I. Votina. All actions of the Gaming Commission shall be taken by majorjty vote. The 

Commission Chairman may vote on any issue. 

j. Compensation for Servins: Frinqe Benefits: Reimbursement of Expenses Cornmrssioners 

may be campensated for sewing on the Commission at rates to be set by the Tribal Council after full 

-.-,-.+ r 

8 -. * 

benefits. Subject to approval by the Tribal Counal and !n accordance w11h procedures to be adopted by 

that body, Commissionets shall be rermbursed for expenses incurred in cannect~on wth the performance of 

their Gaming Cornrn~ssion duties. 

k Cornrnrssion Budset. At least annually, the Gaming Commission will develop a budget for 

the upcoming twelve (72) months operation of the Gaming Commission and shall subma the proposed 

budget to the Tr~bal Council for rewew and approval. The proposed budget shall indude all antic~pated 

expenses for staff, travel and rneebng expense, and compensation to Comrnissjoners. 

I. Powers and Duties 

The Gaming Commission, acting as a regulatorj body, shall have the power and duty to: 

I. After review by the Tribal Council, adopt such regulations as appropriate in order 

to Implement the provisions of thts Ordinance. 

II Inspect, examine and monitor Gaming Activities and the Gaming Enhty, including 

the power to demand access to and inspect, examine, photocopy and audit all papers, bocks and records 

respecting such Gaming Actrvitfes and Gaming Entity; 

I~I. lnvestrgate or cause to be rnvestigated, in canjunction with the trrbal or other 

recogn~red enforcement agency or agencres, any susptclon of wrongdoing In connection with any Garn~ng 

Ac!~vrties.or Gaming Entity: 
IV Conduct or cause to be conducted such ~nvestigahons as may be necessary to 

determine compliance with ail applicable laws, or with this Ord~nance or any contracts, agreements, goods. 

services, events, incidents, or other matters related to the Gamrng Activrties or Gaming Entity: 

v. Issue licenses to persons and entitjes connected wrth the Gaming Acbv~ties or the 

Gamrng Entrty and, at min~murn, to all Key Employees and Pn'rnarj Management Offic~aIs according to 

requlrernents at least as stringent as those In 25 C F.R. parts 556 and 558: 

vi Conduct or cause to be conducted background investrgations regarding persons 

and entities connected with the Gaming Activitjes or the Gam~ng Entity and, at minrrnurn, for all Key 

Employees and Primary Management Officials according to requirements at least as str~ngent as those In 

25 C.F.R. parts 556 and 558; 

vii. Hald such hearings, sit and act at such tjrnes and places, summon persons to 

attend and testify at such hearings, take such testimony, and receive such evidence as the Gaming 

Commission deems relevant in fulfifllng its duties; 

wii. Administer oaths or affirmations to witnesses appearing before the Gaming 

Cornrniss~on; .- 

ix. Implement and administer a system for investigating, licensing and monitoring 

employees and others connected with the Garnlng Activities or Gaming Entity, as described below, and 

including the issuance of licenses to gaming facilrties, individuals and entities as required under this 

Ordinance and the IGRA: 

x. Hear disputes against the Gaming En8ty, in accordance with the procedures 

established in this Ordinance: 

. . . , . - . ,.- . , . . . . ., . ....... . , . . . .... .. 

subject to a budget approved by the ~nbal Council; 

xii. To the extent required, comply with any reporting requirements, including annual 

reports to the Tribal Council and Members, and those requirements established under any compact to 

which the Tribe IS a party and other applicable law, including the 1GRA and regurations promulgated 

thereunder: 

xi. Promulgate rules for each Class 1, Class Il or Class I11 game allowed under thls 

Ordinance, to govern the conduct of such games; and 

xiv. Carry out such other duties wlth respect to the Gaming Activtties and Gaming Entity 

as the Tribal Council shall direct. 

m. Quarterly and Annual Reports. On or before the last day ef the month mrnediakly 

following the close of each quarter in each year (for example, by April 30 for the quarter ending March 31; 

by July 31 for the quarter ending June 30, and so foeh), the Gaming Cornmisslon shal! provide in writing to 

the Tribal Council a Quarterly Report summarizing its activities during the prior quarterly period, and once a 

year, by no later than November 15, an annual repost for the 12-month period end~ng on September 30. 

The Quarterly and Annual Reports shall account for all receipts and disbursements during such perrod 

The Tribal Council shall cause an executive summary of the Annual Report to be made ava~lable to 

Members with~n thirty (30) days after its receipt At the request of the Tr~bal Council, the Gamrrlg 

Comrnrssion shall provide art oral report of its activities to the Tribal Councll at least quarterly. 
n. Other Report~n~ Requirements As requ~red, the Garnrng Commiss~on shall comply w~th 

any reporting requirements establlshsd under a compact to which the Tnbe IS a party, and other applrcable 

law, includ~ng the IGRA and regulatrons promulgated thereunder 

a. Unauthorized Garninq Prohrbited All Gamtng Achvltres on the Reservahon (whether Class 

1, I1 or Ift) are prahrbrted except as expressly authorized under Ihjs Ordlnancc. 

I Class I Gam. Class I Gaming Actrvrhes are hereby permitted to the extent consistent 

wrth trrbal custom and pracbce The Gaming Comrn~ssron may prohrbrt and prevent any conduct which IS 

clalrned ta be Class 1 gaming pursuant to a find~ng that such conduct IS not in accordance wth trtbal 

customs or practices. 

ii. Class II and Class 111 Garninq: Sole Pro~rretary Interest . Class II and Class Ill gaming on 

the Reservation is hereby authorized, provlded the Tnbe has the sole proprietarj interest in and 

responsibility for the conduct of any Gaming Entity, or to the extent the Tribe may contract wrth or license a 

person or entity to own, operate or manage Gaming AcZjvities or the Gaming Entity, pursuant to the 

provisions of tGRA or as otherwise permined by law. Nothing herein shall prohibit the Tribe from engaging 

the services of non-tnbal persons as employees thereof or engaging any p>rson or entity to provide 

consulting or other technical assistance or to assist the Tribe in the management of Gaming Activities 

pursuant to a management agreement entered into under the provisions of IGW. 

Section 6. Gaminq Revenues. 

a. Tribal Property. Except as provided for under the terms of an agreement pursuant to the 

provisions of IGP! or as other cis^ nermiFed by lavr. all revenues generated from anv Class II or Clas~ I11 .. . ., , 

. -. < .> .--. .< -4 '8 -c-+ - :. .,.br- LL >--. , .,+ >,*.,.. , 

such funds shall lose any identity as gaming revenues except to the extent necessarj to identify them as 

such in order to comply with applicable law. No individual Member shall be deemed to have any interest In 

such profits or net revenues Payments from tribal accounts under other tribal programs, rncluding those 

related to health, welfare, education, elderly care, and housing, shall not be deemed to be per capita 

payments. The Tribe acknowledges the requrrements of IGRA, 25 U.S.C. 5 2710 {b) (3) regarding gaming 

revenues 

b. Use of Net Revenues. Net revenues from Gaming Activities shall not be used for 

purposes other than: 

I. To fund tribal government operations or programs; 

11. To provide for the general welfare of the Tribe and its members; 

... 

111. To promote economic development for the Tribe; 

IV. To donate to charitable organizations; or 

v. To help fund operations of local government agencres 
Oneration of Gamins Establishments. 

a Gamin0 Permitted as Licensed. Except 20 the extent authorized by an agreement pursuant 

to the provisions of IGRA or as otherwrse permitted by law, Gaming Actlvrties shall only be conducted In 

tr~bal owned, operated and licensed facrlhes pursuant to the provisions of this Ordinance Such activitres 

shall be conducted in accordance with the terms and conditions of any license issued by the Gaming 

Comrnrssion for such purposes as to each facilrty before any Gaming Activrtres may occur therern. Such 

I!censes may specify the hours of operation, type and scope of Gamrng Achvltres allowed theran, perm!tted 

uses of the facrlity for other activities, rules of conduct for employees and patrons, food handl~ng and 

entertainment, and such other matters as the Garnrng Carnrnrss~on may deem necessary to the conduct of 

Garnrng Activities therein. 

b. Protectiorn of Environment and Public. Any construction or maintenance of any gaming 

facility, and the operation of garnlng there~n, shall be conducted in a manner which adequately protects the 

environment and the public health and safety. 

C. Dispute Resolution. Patrons who have complaints against the gaming establishment 

shall have as their sole remedy the right to file a petition for relief with the Gaming Commission. For such 

purposes, disputes with any management contractor or its employees shall be made to the Gaming 

Commission, and such shall be the exclusive remedy for patron complaints: Complaints shall be submitted 

in writing and, at the discretion of the Gaming Commission, the petitioner may be allowed to present 

evidence. The Gaming Commission will render a decision in a timely fashion and all such decisions will be 

final when issued, except to the extent reviewed by the Tribal Council as set forth below. Any patron having 

a claim against the Gaming Entity or a management contractor or its employees must subrnrt such claim to 

the Gaming Commission within thirty (30) days of its occurrence. All claims by patrons shall be limited to a 

maximum recoverj of $10,000 per occurrence, and a cumulative limit of $20,000 per patron in any twelve 

(1 2) month period. Any patron dissatisfied Yvith the decision of the Gaming Commission may seek an 

appeal, by a request for review, to the Tribal Council. Alf patrons filing claims with the Gaming Cornmissian _ -1. - . ' .,. -* 

. . .- -. -,.-. . . . . 

notrticatran of its final ruling, or from the dare notification of the manner and time for appeal was received, 

whichever last occurs, but in na event more than thirty (30) days after the Gaming Commission's decision 

has became final. The Tribal COU~F~~ shall have sole discretion in determining whether or not to grant the 

petitioner's request for review. If it grants the request, the sale issue before the Tribal Council shall be 

whether or not, in reaching its final decision, the Gaming Cemrnission acted arbitrarily and capriciously. 

Section 8 -- Audits. 

Annual outside auditing by the recognized independent accounting firm selected by the Tribal 

Council shall bc conducted of the Gamrng Activities and the results thereof reported to the Tribal Council, 

the NIGC, and athenvise a5 required by law. All audits must meet any audit requirements of the Tribe. 

Section 9 Contracts 1 Audits. 

a. Gamins Contracts. Unless otherwise exempted by the Gaming Cammission, contracts relating 

to Gaming Actlvrt~es, the Gaming Entity or any gaming facility (except contracts for professional legal or 

account~ng sewrces) shall be subject to the Tribe's requirements for purchasing such goods and services. 

h &dit Requirements. All contracts for supplies, services, or concessions for a contract amount 

in excess of $25,000 annually (except contracts for professional legal or accauntlng servrces) relating to 
Class I1 or Class 111 gaming on the Resewattan shall be subject to independent audits, and such contracts 

shall so specrfy 

Sectjon 10. Licenses 

a. L~censina Reauirements. It is the declared poiicy of the Tribe that all Garn~ng Act~vrhes be 

licensed and controlled so as to protect the peace, dignity, and welfare of Members and other persons on 

the Resewatran and to preserve the honesty, fairness and integrity of such Gaming Activities. Accordinaly, 

no person OF enbty shall provrde goods or services to, or be employed to conduct, be associated with, 

supervise, or manage any Class tl or Class Ill Gaming Activitres on the Resewahon wrthout an appropriate 

and valid independent Class [I or Class HI gaming license issued by the Gaming Commission. Any gaming 

I~cense which is issued, or finding of surtabifity or approval by the Gaming Cornrniss~on, shall be deemed a 

pr~vilege subject to suspension or revocation. No lrcense shall be issued that would place the Tribe in 

violation of a compact to which the Tribe is a party, or of any applicable law. 

b. Burden on Applicant. The burden of proving an applicant's gualificahon to receive any 

license hereunder is at alI times on the applicant. Applicants must accept any risk of adverse public notice, 

embarrassment or other action which may result from the application process and expressly waive any 

claim for damages as a result thereof. Ic. A~~licant Claim of PriviIese. An applicant may clam any privilege afforded by Taw in 

connection with a gaming license application or investigation, but a claim of privilege wrth respect to any 

testimony or evidence pertaining thereto may constitute sufficient grounds for denial, suspension or 

revocation. 

d. Release of Informat~on. All persons applying for a license shall agree to release all 

information necessary In order for the Gaming Commission to achieve its goals clnder this Ordinance, and . .. --.' T - ,-,- , - <, 

e. Ty~es of Licenses. Three classes of licenses (Class A, Class 8, and Class C) shall be 

issued to persons and entities associated w~th Gaming Activities or the gaming factlily. 

i. Class A Licenses. Before permitting any person to become permanently associated with 

the Gaming Activities as an investor, management entity, or other person owning or controlling ten percent 

(I 0%) or more of any interest in any management entrty; or any Primary Management Official; Key 

Employee: Closely Associated Independent Contractor: or other individual or entrty with influence over the 

management or operation of the gaming; and, unless otherwise exempted, all other gaming employees 

and Gaming Contractors, such person shall obtain a Class A Ircense. Those who do not meet the 

qualifications established shall be denied a Class A license. The Gaming Cornrniss!on shall conduct or 

cause to be conducted a background investigation to determine if such person has. 

(2) Any criminal record or any reputation, prior activities, habrts or associations 

wh~ch might pose a threat to the public interest or to the effective regulation of 

garnlng. 

(2) Anything else in their background which might create or enhance the 

dangers of unsuitable, unfair, or illegal practices and methods and activities in the 

conduct of gaming. 

ii Class B Licenses. Persons who are not among those identified in subsection (1) above, 

but are employed at a garnlng facility on the Reservation in a non-gaming relafed actiwty, shall be required 

to obta!n a.Class B license from the Gaming Cornrn~ss~on. Such persons must esta hlish that they have not 
been convicted of a cnrne, or engaged in any acbvity, which the Garn~ng Cornrn~ssron m its sole dscrehon 

deems would render such person a danger to the safety or integrrty of the Garnrng Acbwt~es or the safety or 

property of the Tnbe, any Member, any gaming employee or patron, or the public. 

iii. Class C Licenses. Minors (persons under 18 years of age) ernpioyed at a gaming 

facil-v on the Resewahon may be ~ssued a CIass C license, which w111 entitle them to work In posltlons for 

which a Class B Itcense would otherwise be required and in which minors are not otherwise prohrbrted by 

law from working The Gaming Commission will first determine that the minor receiving a Ciass C ltcense 

does not pose any threat to the safety or integrity of the Gaming Activities or the safety or property of the 

Tribe, any Member, any gaming employee or patron, or the public. Such licenses shall be valid for no more 

than six (6) months before renewal, and shall be revoked upon the minor's reaching the age of eighteen 

(1 8), at which time a Class A or 0 license, as may be appropriate, will be required. Minors shall not be 

employed as dealers or otheMrFse to operate or supervise the operabons of games. 

f. Class A and Class 8 License Renewal Revocation. and Suspension. Class A and 

Class 0 licenses shall be subject to renewal at least every two (2) years. Licenses may be revoked or 

suspended upon the occurrence of any act which, it known during the applicat~on process, or becomes 

known thereafter, would have tended to disqualify such person for such a license. 

9 - Tern~orary Licenses, Pending completion of an investigation for a license, temporary 

licenses of no more than ninety (90) days duration may be issued by the Gaming Commission if, in its sole 

discretron, it deems it appropriate to do so. Under no c~rcumstances tyill the Gaming Commission issue 

mare than two (2) temporary Iicenses to an individual or en0 in any two (2) year period. Such licenses 

shall permit the licensee to engage in such activities pursuant to such terms and conditions as may be 

specified by the Gaming Commission. Such temporary licenses shall expire ninety (90) days from date of 

issuance, upon issuance of a regular license, or until an: earlier specified expiration date, whichever occurs 

first 

- I >.. - .- r , ^I. ? .- ' . . . ,- 7-., 

-<. 8 ' - 4 . . . - . - . - - - I -> . . . 

~nforrnai~on necessary to determine whether or not a license should be asued. ~~~lrcanis shalt also ay ree 

to release all information necessary in order for the Gaming Commission to achieve its goals under thrs 

section and to furnish such information to the NlGC and to such other agency as may be required by law 

I. License Fees. Unless specifically waived by the Gaming Commission, all persons applying 

for a Class A, 8 or C license shall be required to pay all applicable license fees and costs when due. 

including the reasonable cost for regulation and monitoring of licensees in connection with the license 

appticatlan. Estimates of licensing costs shall be provided to applicants upon request. Unless specifically 

watved by the Gaming Commission, payment for all fees and costs must be recerved by the Gaming 

Commission prior to issuance of the license. 

I. Standards. All persons engaged by or associated with any Gamlng Activity on the 

Reservation shall conduct themselves with honesty, integrrty, and with such decorum and manners as may 

be necessary to reflect positively on the Tribe, its members and the Gaming Activities ~nvotved. Any failure 

to abide by such standards, or a violation of any rule, ordinance, custom or tradit~on of the Tribe, the 

Reservation or the Gamrng Activities, or the terms or conditjons of the license, may be grounds for 

immediate suspension or revocation of any license issued hereunder. 

k. Appeals. All decis~ons of the Gaming Commission regarding the issuance, suspensron, or 

revocation of licenses shall be final and effective when issued; provided, ivivithtn fifteen (15) days of the 

receipt of the wr~tten decision regarding denial, suspension, or revocation of the hcense, the applicant may 

file a petition for reconsideration with the Gaming Cammrssion. Any Member who IS denied a license by the 

Garnrng Commission may, within thirty (30) days of the receipt of the written notlce oi such den~al, appeal 
the denial to the Garn~ng Commission, which shall have the power to reverse its pnor denaon and order 

that such license be issued. Licenses issued by the Gaming Commission as a result of such apoeal shall 

be issued for no more than one year, and are sublect to the renewal procedures set forth herern. No 

dectsion of the Gaming Cornmisston that a license be issued shall be valid if such issuance would place the 

Tribe ~n violation of a compact to which the Tribe is a party, or of any applicable law. 

[. Backqround Investiqations. 

i. The Gaming Commission shall request from each Primary Management Offjcial and 

each Key Employee all of the information specified in subsections (1) through (14) below. Each other 

applicant for a Class A, Class B or Class C license shall submrt such information as the Gaming 

Comrnissron, in its sole discretion. deems appropriate for the position sought by appl~cant. The Gaming 

Cornmjssion reserves the right, at any time, to request additional informatron either prior lo, during, or 

subsequent to any background investigaban. 

(1) Full name, other names used (oral or written), social securrty number(s), date of 

birth, place of birth, chzenshlp, gender, all languages (spoken or wmen); 

(2) Current and far at least the previous five (5) years: business and employment 

positions held, ownership interests in those businesses, business and residence addresses 

and drivers license nurnber(s); 

(3) Names and current addresses of at least three (3) personal references, including 

one personal reference who was acquainted with the applicant during each period of 

residence as listed under subsection (b) above: 

(4) Current business and residence telephone numbers; 

(6) A description of any existing and previous business relationships with Indian tribes, 

including ownership interests in those businesses; 

(7) Name and address of any licensing or regulatorj agency with which the person 

has ever filed an application for a license or permit related to gaming, whether or no2 such 

license ar permit was granted; 

(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 dispositlon, if any, of 

the case; 

(9) For each misdemeanor conviction or on-going misdemeanor prosecufan 

(excluding minor traffic violations) within ten (1 0) years of the date of the application: the 

name and address of the court involved, and the date and dispos~tion, if any, of the case; 

(1 0) For each criminal charge (excluding minor trafftc charges), whether or not there is 

or was a conviction, if such crimlnal charge is within ten (10) years of the date of the 

application and is not otherwise listed above pursuant to subsections {h) or (i) above: the 

cr~rn~nal charge, the name and address of the court involved and the date and djspositron, 

if any, of the case; 
(2 1) Name and address of any licensing or regulatory agency (federal, tribal, state. 

local or fore~gn) wrth which the person has filed an application for an occupational t~cense 

or permit, whether or not such license or permit was granted; 

(12) Photographs (current at time of application); 

(1 3) Any other inforrnab;on the Tribe or the Gaming Commission deems relevant, and 

(1 4) Fingerprints consistent with procedures adopted by the Garn~ng Comrnissron 

according to 25 C.F.R. § 522.21h). 

ii The Tribe shall conduct or cause to be conducted an investigation, through the Gaming 

Commission, sufficient to make a deterrninatjon of eligibility as required under thrs Ordinance for, at 

mlnrmum, all Key Employees and Primary Managemefit Officials. In conducting the background 

investigation, the Gaming Commission and its agents shalf keep confidentla1 the idenbty of each person 

~nterviewed in the course of the investigation. 

rn. Eliaibilitv Determination. The Gaming Commission shall review a person's prior activities, 

criminal record, if any, and reputahon, habits and associatjons to make a finding concerning the eligibility of 

at min~mum, all Key Employees and Primary Management Officials for em'jjloyment in a gaming operation. 

If the Gaming Commission determines that employment of the person poses a threat to the public interest 

or to the effective regulafion of Gaming, or creates or enhances dangers of unsuitable, unfair, or illegal 

pracbces and methods and activities in the conduct of Gaming, the Gaming Entity shall not employ that 

person in a Key Employee ar Primary Management Official posifion or in any other position for which a 

Class A license is required, except as specifically established by the Gaming Commission. 

n. Forwardins Licensinq Ap~lications and Reports to NIGC. 

--? .. - -_- - - - 

- - - L - - - + -8. "- -I - A 

forward to the NIGC the person's completed application for employment containing the informatron requ~red 

a bave under subsection 1 I .!.(I) of this Ordinance. 

ii. Prior to issuing a license to a Prirnarj Management Official or Key Employee, the 

Gaming Commission, acting on behalf of the Tribe, shall forward to the NIGC, together with a copy of the 

elfgibiEity determination made under subsection 7 I .m. above, an investigative report on each background 

invest~gation. The ~nvestigative report on each background investigabon shall be forwarded to the NIGC 

wrth~n s~xty (60) days after the employee begins work, or within sixty (60) days of the approval of this 

Ordinance by the NIGC. The Gaming Entity shall not employ or conhnue to employ any person as a Key 

Employee or Primary Management Official who does not have a license within ninety (90) days. The 

investigative report shall include the following information: 

(a) Steps taken in conducting a background investigation, 

(b) Resutts obtained; 

{c) Conclusions reached: and 

(d) The bases for those conclusions. 

i~t. The Gamrng Comrnrss~on, actlng on behalf of the Tribe, shall prov~de to the NIGC or 

other agency, any other repcrts and information required by [GRA and regulations promulgated thereunder. 

Further, with respec! to Key Employees and Primary Management Officials, the Gaming Cornrn~ss~en shall 
retarn appl~catrons for employment and repom (if any) of background lnvesbgations for lnspectlon by the 

NIGC for no less than three (3) years from the date of termlnatlon of empJoymentIV. If a license is not issued to an applicant, the Gaming Commlssion shall notffy the N1GC 

and may forward copes of its e[igjbrIity determinabon and rrivestigative report (~f any) to the NIGC for 

inclusion in the Indian Gaming Individuals Records System. 

0. Grantinq a Garninq L~cense,. 

i. if, within a thirty (30) day period after the NlGC receives a report as required under 

subsecZjon 7 1 .n. above, the NTGC notifies the Tnbe that it has na objection to the Issuance af a lrcense 

pursuant lo Zhe license application filed for a Key Employee or Pnrnary Management Official for whom the 

Gaming Commission has provrded an applicatjon and investigative report, the Gaming Cornrnissron may 

issue the license. 

ii The Earning Commission shall provide any additional infamation requested by the 

NlGC concerning a Key Employee or Primary Management Ofticia1 who is the subject of a report as 

required under this subsection. An NlGC request for additional information shali suspend the thirty (30) day 

perlad established under this subsection until the NlGC receives the additional information. 

.- 

iii. If, wrthin the thirty (30) day period established under this subsection, the NlGC provides 

a statement itemizing objections to issuance of s tcense to a Key Employee or Primary Management 

Oficia!, the Gaming Commission shall reconsider the application, taking into account such objections. The 

Gaming Commfssron retains the right to make the final determination whether to issue the Iicense to such 

applicant. 

Gaminq License Suseension and Revocation. 

?, -.<- - , Ir ' ... -1 . -. --, 

hj&C crr Oihtl 12,1ab,r' SoUiCI: IIX,~SL, IS .; 2; 2 - t / 2 LI:.li_ 2-2 : ? . . 

eltglble for employment under the eligibility critena established in section i 7 abo"e, the Garnrng 

Cornm~ssion shall suspend the license and shall notify the licensee in writing of the license suspension and 

proposed revocation. 

ii. The Gaming Commission shall notify the licensee of a time and place for a hearing on 

the proposed revocation of a license. 

{I) After the revocation hearing, the Gaming Commission shalt determrne whether to 

revoke ar to reinstate the gaming license. For actions taken in response to infarmation provtded by the 

NIGC. the Gaming Commission shall notify the NlGC of !ts decision. 

4. Facilities Licenses. Before Gaming Activities can be conducted therein, the Gaming 

Commission shall inspect and license each such facility in accordance wrth this Ordinance and any 

requ~rements under IGRA 

Section 1 I. Anelication Forms. 

a. Each application form for a Key Employee or a Prirnaly Management Oficial, as well as 

for all other license applrcants, unless otherwise specifically exempted by the Gaming Commtssron, shall 

conta~n the not~ces set forth in subsections (1) and (2) below- 
I. Pn-vacy Act Notice: 

in compliance with the Privacy Act of 1974, fhe following informahon is provided 

Solicifation of the ~nfamafion on this form 1s authorired by 25 U. S. C. $2701 et seq. The purpose of the 

reauested information is to determine the eligibility of indivrduals fo be employed tn a garnlng operation. 

The information will be used by National Indian Gaming Commission members and staff who have need for 

the tnformahon ~n the performance of their oficial duties. The ~nformation may be disclosed to appropriate 

federal, fribal, state, local. or foreign law enforcement and regulatory agencies when rele vanf to uvil, 

crrminal or regulafory investigations or pr~secufions or when pursuant to a requirement by an Indian Trrb e 

or the National Indian Gaming Commission in connection wirh the hiring or firing of an employee, the 

issuance or re vocation of a gaming license, or investigations of act~vifres while associated wfth an lndian 

Tribe or a gaming operation. Failure to consent to he disclosures indicated m thts nol~ce will res ufl In an 

Indian Tibe's being unable to htre you in a Primary Management Oficial or Key Employee position. 

7he disclosure of your Social Securily Number (SSN) is voluntary. However, 

failure to supply a SSN may result in errors in processing your application. 

11. Notice Reqardinq False Statements. 

A false statement on any part of your application hay be grounds for not hiring 

you, or for firing you affer you begin work. Also, you may be punished by fine or imprisonment. (U.S. 

Code, title -I&, 5 1001) 

b. Any existing Key Employee or Primary Management Official or other licensee subject to such 

requrrernents, unless otherwise specifically exempted by the Gaming Commission, that has not completed 

an application form containing the language set forth in Section 1 ?.a.(l) and (2) above, shall be notified that 

they must either: 

ii. Sign a statement that contains the Privacy Act Notice and cansent to the routine uses 

described in that notice, and sign a statement that contains the Notice Regarding False Statements. 

Section 12. Class Ill Garnina: Compact. 

Class IFI gaming on the Reservation shall be under the provisions of a compact, as applicable, or 

other alternative as provided under the lGRA and applicable regulations. All negotiations for such 

compacts shall be conducted through the Chair of the Trlbal Council, and shall be finalized only upon the 

majority vote of the Tribal Council after consideration of the terms of such compact. In the event the Tribe 

approves a compact, the prov~sions of such compact, once approved under IGRA, sharl govern over the 

prcvisrons herein, to the extent the compact is inconsistent herewith. 

Section 13 Interest In Manaqement Contracts by Tribal Ofiicials, 

No elected official of the Tribe, including the Gaming Commission or any other committee or 

agency of the Tribe, shall have a financial interest in or management responsibility for, any management 

agreement entered into pursuant to IGRA, nor shall such elected official serve on the board of drrectors or 

hold (directly or indirectly) ten percent (1 0%) or more of !he issued and outstanding stock of any 

corporation, or ten percent (10%) or more of the beneficial interest in any partnersh~p, trust, or other entity, 
in any such corporation, partnership, trust or other enw, having a financial interest in, or management 

responsibilrty for, such contract. 

Section 14. Service of Process. 

The Tribe desrgnates as its agent for the sewfce of any oficlal determtnat~on, order, or notrce of 

violat~on in any gaming related matter, the person set forth on Exhibit A hereto, which person may be 

changed from time to time as the Tribal Councrl shall determine and notify the Nabonal Indian Gaming 

Commrssion. 

Section 15. Tribal Garninq Corporation. 

Nothing in this Ordinance shall prevent the Tribal Council from delegating the authority to conduct 

gaming ta one or mare tribal corporations, so long as the tribal corporation to which such authority 1s 

delegated agrees to meet ail criteria and requfrements established under this Ordinance. 

Section 15. Entire Gaminq Requlations: Prior Ordinances Repealed: Effective Date. 

ThFs Ordinance and the regulations promulgated thereunder shall constitute the entire gaming 

regulations of the Tribe. All prior gaming ordinances and resolutions of the Tnbe are hereby repealed, and 

!his Ordinance shall become effective upon its adoption by the Tribal Council. 

Section 77. Amendments. 

. ,, , , : , . zm--- -,,--'< ..,.-= rr7 .- - >-. L . -- .: .: .-. .,-- .. -' -. - -;.- :- ?.. ', ,, 3:. - -:, - , . , , . . , - ,, ,L. ,. , 

' - . .. 

, , ,- .-. ,, . . ...I .I - ., , . 

- .. , .., , ., . . , ,, . .,. ., . . 

or arnenament by the Gaming Cornrnksion. 

Section 18. Sovereiqn Immunity Presened. 

Nothing in this Ord~nance 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 shall be 

authorized, nor shall they attempt, to waive the immunity of the Tnbe. 

Section 19. Construction and Severabilihr. 

This Ordinance is exempted from the rule of strict construction, and shall be liberally construed to 

gtve full effect to the abjectives and purposes for which it was enacted. If any section of this Ordinance, or 

its applkatian to any person or enfrty or circumstance, is held invalid, the remainder of the Ordinance, or the 

applicatron of the prov~sion to other persons or entities or circumstances, shall net be affected and shall 

remarn In full force and effect. 
EXHIBIT A TO ORDINANCE NO. 4 

DESIGNATION OF AGENT FOR SERVICE OF PROCESS 

Until changed in accordance with the above Ordinznce, the 

3-gent for Service of Process under the Indian Gaming Regulatory 

Act on behalf of the Pit River Indian Tribe shall be: 

THERESA WOLFIN 

Tribal Secretary 

Pit River Indian Tribe 

2025 8 Tamarack Avenue 

Burney, California 96013 

Telephone: 916 335-5421 

Facsimile: 916 335-5241 

.- 
CHAS L. GONZALES 

VICE mxmmN 

THERESA WOLFIN 

!TKREmm 

PIT RIVER TE1BE 

202518 Tamarack Avenue 

P 0. Drawer 1570 

Eurney, CA 96013 

TELEPHONE 

91 6-335-5421 

ELEVEN AUTONOMOUS SANDS 

Resolution No. : 

Date: 

Subject : 

Whereas : 

Whereas : 

ORIGINAL 

May 26, 1995 

Adept Gaming Ordinance, Tribal Ordiance Number 

Four. 

The Pit River Tribe is a federally recognized 

tribe composed of eleven autonomous bands 

located in Northeastern California since tine 

i~.nemori a1 , and 

I.--I I-. < 'd' I-- ., A* : 1 . . -- LC 1; _ - - 1 --.- * - - 

River Tribal Council, the body duly elected 

under the constitution of the Pit River Tribe, 

adopted August 15, 1987, and approved by the 

assistant Secretary of Interior for Indian 

Affairs, December 10, 1987, and 

The Pit River Tribal Council is empowered by 

Article V11 of the Constitution to enact all 

ordinances and resolutions which shal I be 

necessary and proper for carrying into effect 

the Council's powers and responsibility, 

including and the power to negotiate and 

contract with federal, state, and tribal 

aovernments, private enterprise, individuals. , 

and organizations, and 

Now therefore be it resolved, that the Pit River Tribal Council is 

des~rous of adopting Gaming Ordinance, Tribal Ordiance Number Four. 
ORIGINAL 

Page Two 

Date: May 26, 1995 

Resolution Number: 95-05- 

I, the undersigned Tribal Des~gnee, Laurance D. Cantsell of the Plt 

River Tribe, do hereby certify the Pit River Tribal Counc11 IS 

composed of eleven autonomous bands a£ which 7 were present, 

constituting a quorum at a specially called, notlced, convened, and 

held rneetlng this & $h day of I"TfiY, 1995, and the resolution was 

adopted by a vote of A for, P against, and I abstaining, 

and that said resolution has not been rescinded or amended In any 

way . ..-A* 

.+ .r,b,.; ,L-.,L, Dated: 3'/1/, /~5 

Laurance D. Cantrell 

Tribal Designee 

\ 

Atte Dated: 

Secr 

CounciJ Member Siqnatures : 

Date c-26- ?.+ C" 
PET RIVER INDIAN TRIBE 

NOV EXHIBIT 2 
RDRERTM MOSS. C P A ' 

RONALD A LEVY C P A ' CrUlG A HARTZIEIM. C P A ' 

RUnERT F ALBONICO, C PA 

IANtT S RAN0 C P A 

RRETT I MILLER, C PA 

CHAHISA I[IITANGKURA. C PA 

TON[ IOKSCH. C P A 

LlNnA N GRAHAM. C P A 

August 25. 1998 

MOSS, LEVY, HARTZBEIM & ALBQNICO, LLP 

CERTJFIFD PUBLIC ACCOUNTANTS 

2 15 SOUTI I BEVERLY DRIVE, SUITE 2 1 i 

BEVERLY HILLS. CALIFORNIA 90212 

- 

TELEPHONE (3 10) 557-9331 

FAX (3 10) 537-2734 

WWER OFFICFS 

AMWCAN INSTITUTE OF r P A 5 BEVERLY HILLS. CALlFORNIA 

CALIFORNIA SOCIFW OF C I' A 5 

CALIFORNIA SOCIETY OF 

MIINlClPAL FWANCE OFFICERS 

CAL[FORNIA ASSOClATION OF 

SCHOOL AUS[h'F-qS OFFICIALS 

SANTA MARK CALIFORNIA 

SACRAMEKTO. CAI.IFORN1A 

MlhmE8, NEVADA 

National Indian Gaming Council 

1441 L Street NW 

Washington, DC 20005 

,- 

RE: Audit of Pit River Casino 

To Whom It May Concern: 

As auditors of the Pit River Casino, we hereby request an extension of 90 days in which to submit the annual 

audited financial statements for the fiscal year ended April 30, 1998. 

The Casino is in a remote location in Northern California and is having difficulty hiring and retaining 

qualified accountants and bookkeepers to do the work necessary in preparation for an audit. 

The Casino is in the process of interviewing and hiring new finance personneI to take over and will have the 

records ready for audit sometime between September 30, 1 998 and October 1 5, 1 998. This will give the 

auditors time to do field work, obrain confirmations and prepare the report and financial statements. 

Please consider the above, and grant an extension to November 26, 1998. 

Sincerely. 

f&LLd /j ,&*gL. --#wL 

Craig X Hartzheim far 

Moss, Levy, Hartzheim & Albonico 

.-- 

Gwen Wolfin 

L/ Tribal Treasurer 
PIT RIVER rnDTAN TRIBE 

NOV EXHIBTT 3 
SEP - - 28 

Lawrcnce Cantrell, Chairman 

Pit River Indian Tribe 

P.O. Drawer 70 

Burney, CA 96013 

Fax (530) 335-3140 

David Hawkins, Chairman 

Pit River Tribal Gaming Commission 

20265 Tamarack Avenue 

Burney, CA 96013 

Fax (530) 335-4734 

Craig A. Hartzheim, C.P. A. 

Moss, LEVY, Hattzheim, & Albonico, LLP 

3 15 South BeverIy Drive, Suite 21 1 

Reverlv Hilly. CA 

Dear Messrs. CantreII, Hawkins, and Hartzheim: 

The National Indian Gaming Commission (NIGC) has received the letter from Moss, Levy, 

Hartzheim & Albonico, LLP (Moss), dated August 25, 1998, which was reviewed and agreed 

to by the Pit River Indian Tribe Treasurer. tn that letter, the NIGC is asked to grant an 

extension untiI November 26, 1998, for the Pit River Tribe to submit the Pit River Casino's 

annual audited financial. statements for the fisca! year ended April 30, 1998. Unfortunately, we 

cannot grant the request. 

On July 25, 1997, the NXGC issued Bulletin 97-2 that, among other things, states: 

Some tribes and gaming operations have missed the due dates for their audit 

reports while others have routinely requested extensions. The NIGC believes 

that the 220 day filing period is achievable in most situations. While the NIGC 

will continue to consider requests for good cause, the 120 day rule is expected 

to be followed. 

.Mess states that the Pit Rives Casino records cannot he audited as they stand. Further, the 

Tribe is having difficulty hiring and retaining qualified accounsants and bookkeepers to do the 

work necessary in preparation for an audit. 

1441 L STREET. N.W. STH FLOOR WASHINGTON, D.C. 20005 EL.: 202632-7CC3 FAX: 202W-7M 
For the fiscal year ended April 30, 1997, the Pit River Tribe dld not engage Moss as the 

auditors untiI after the end of the fiscal year. Further, there were inadequacies in the records 

and Moss was unable to satisfy itself through alternative procedures. As a result, Moss was 

unable to express, and did not express, an opinion of the 1997 financial statements. 

It appears that the Pit River Tribe and the Pit River Casino have not implemented the 

necessary steps to correct the problems surrounding the 1997 audit report; thus, the same 

problems exist for the 1998 audit. I~ck ofmaintaining the proper records and staff are not 

acceptable reasons for granting an extension. 

The April 30, 1998, audit report and management Ierter were due to the NIGC by August 3 1, 

1998. Failure to submit these items by that date is a violation of Iaw that could subject the Pit 

River Tribe to a civil fine of up to $25,000 per violation pet day. 

Should you have any questions or want to discuss this matter with us, please call either Elaine 

Trimble or me at (2023 632-7003. ,- 

Sincerely, 

r - 

ihrecros of Contrac~s and Aud~ts 
PIT RMER INDIAN TRIBE 

NOV EXHIBIT 4 
Federal Register / Vol. 58. No. 13 / Friday, January 22, 1993 1 i<rtlcs and Ke~ulations 5843 

., . -- 

9 571.3 Conlldentlaltty. 

I lr~llq\c < (111 t~tli~~il~nl~~y ts r\.,jrvr~tl t11o 

~:l~l~lll!~~~~oll s1~;lIl Ill!iit [IS r.fl1lrl~it~r~lla~ 

nny nrld oll ~r~frlnnri~ior~ rweivurl \~r~drlr 

~lrrb Ar.1 lhnl falls w~rhin tho exomptronr 

(~f 5 IJ S.C 552(b) (4) onrl (71, fxcrnpt tho! 

 hen such iniorrnotion indicates n 

v:olation of F~dcral. Slate, or tribal 

slntutcc, rt!guIations. ordtnances, or 

rt:solu~iuns, tho Gornrnission shell 

provide such ~r~formotion to ~pproprintu 

In~v enforcamon! officials Tho 

cu!~fidcntinlity of documents sub~nittcd 

In a ~nultiplo-party procmding under 

1)" 577 of this chaptor is eddrcssod in 

rj 577 8 of this chop\or. 

Subpart B--lnspectlon of Books snd 

Records 

$571.5 Entry of prmtaa*. 

[a] The Commission's authorized 

rcpresentativo may cntor tho prernism of 

on Indian gaming operation to inspect. 

examine, photocopy. and nudit all 

papers, books, end words (including 

i.om ulnr records) concerninf , 

(IPGrois rcvonilcr oftlssr I gsrn~i~g 

conduaod on Indian lands: and 

(2) Any other matters noulssary lo 

carry out tho dutios of the Commission 

undor tha Act and this chaprer. 

(h] The Cammission's authorized 

representative slrnli present official 

identification upon entering a gaming ,.> :*+ +t> +\.+--.a?p ?- pytTy:n" 

5 57 i .G Accaae to papera. bcuks, end 

records. 

(a) Onco tho Commission's authorized 

reprosentaliva presents pmFr 

identification, a gaming operation shall 

provido the authorized representative 

with access lo a11 papers, books. ond 

records (including cornputor rucords) 

cr,ncerning class II gaming or any other 

motters for which the Commission 

ruguiscs such access to cnrry out its 

dutles undcr the Aa. 

If st1r:h papers, books. and records 

are not available at the Iocntion of the 

gaming operntinn, the gaming opcration 

shall make them available at a time 2nd 

placo convcnicnt to tho Cornrnls5io11's 

authorized wpresentativa. 

(c] Upon the request of the 

Commission's nutharized 

representative, the gaming opcration 

shn I1 pl~otocopy, or sllow thc 

Con~mission's nuthorized repwscnlatir~o 

to photocopy, any papers, bools, and 

rct,orrls that nro rcqr~estrd by thtl 

Cornrn~ssion's ourhorin\d 

rtbprcst!~llatrvu .-- 5 jr1.7 ~einleflanco snd pressrvstion of 

papeft and re-cwds. 

(a) A g~rning oporntion shoIl keep 

permanent hmks ol amount or records. 

1n1 ludin~ iflvcntl~r~ rcr-nrds ~nrr1111~: 

\i,~lj1ll6., \l,~ti1.14.11~ ~'~~tl~ll~5ll ll*i 

t~ij~c;~i~~~ of gmss e,~id rwt IIICOIIIO, 

rlr.cl~u tjcjns nrtd exwrlsus. mr:th~pts o11rl 

~lnlluriorncn~s, nnd otl~ur ~nlunnetrrrr~ 

r"quin:d ~II any financial stalemu~lt. 

rcpart, or ather accounting prcparr:ti 

pursuanl to tho Ad or this chapter 

{I)] The Cornrnisrion may wquirr: A 

gnming npcrrrtion to ~lihrnlt statorncnts. 

rcl)ofls, or accountlr~gs. or keep spcc:i fir 

r~~ords, that will onable tho 

Commicsion zo detemirle w!~c~hrr ur 

nnl such o eration: 

ti) 1s 11nL'lo for *us pngsiriu to lilt* 

Com~nlxsion and in what amount: and 

(2) Has proporly nnd cnmplotel 

nccoun~ed for all transactions an d otfirfr 

available for inspodion by the 

Commission's euthorizcd 

reprmntahves. Thuy shall be rctninod 

for no less than fivo (5) yoars. .- 

(d) A gaming operation shall maintain 

copies of all enforcement ac~ions that a trih or a state has takon against tlre 

operation. noting the final disposition of 

each case. 

Subpart C-Subpoenss snd 

Depsltlons 

5 571 -8 Subpoena at witnestws~. 

F.- me;?erv votr! the Cn~missinn nsr. 

. . I . , .> I1 I 

ol witnesses relating to any matter 

under consideratiorl or investigation ljy 

the Commission. Witncsscs so 

sumrnond shall be paid the same fees 

and mileage that are paid tc~ witnusses 

in the courts of the IJr~~ted Stales 

5571.9 Subpana of documenb and other 

items. 

By majority vuZu the Commission may 

nuthorite (he Chairman to require by 

suhpocna the production of certain 

documents and other items that aru 

material and relevant tn facts in i~sue ill 

any malter under cansideratiot~ or 

~nvcstigation by thtt Cammission 

Thw attendance of witnosstv and the 

product~on of books, papers, and 

documents, may be requ~red from any 

placo in ths Un~ted States at any 

designated place of hearing 

5571.f 1 Deporrltions. 

(a) Any par-y wishing lo depose a 

rkVllrless shall filc a st:qr~cst wi~h !!it: 

Cammission or, if a presiding orfic~nl 

hns tmn designated under part 577 of 

this chnptcr, to the ~>residlr,g ofccial. 

Such a rtjquest shall not b~ grarr!od 

tbrr:ni" ffnr pood rarrqrr shown A 

C:c~rr~rrlissiuri pcrsorlnel nioy nnl bt~ 

rlucstiontd by deposition fur tht! 

ptjrlms(*s ol discovery, IHII n>ny IMJ 

rlues~iunad hy rvrittcn ir~tcrro~~~ortcs oc 

rlulhnri7xd by the Cornlnissior~ ur a 

prt:sidiilg offir:iol. r~rnr~jission recnrds 

art: r1u1 subjcti to discovt:ry urldur (his 

i:t~ap~~r. Tilt? irlsptrct 1011 OJ Curn~nisslnt~ 

rtjcurds is govr!n~nd tly 5 571 3 ol IIII* 

~~ri mui ~ho Frt!ttdo~n rrf Infurn~aiin~~ 

/?cI. 5 U S C: 5.52 Lk'~~osi~ior:s t~ndcr 

this st?c:llon mny be tokon before oriy 

II~SO~I dt:r,ignntcd by the Cornmissior~ or 

o pwadir~~ ofCcr.ja1. ond who has ~htl 

power lo arlnri~~istcr uiitjls. 

(I)) A party or R CO~~ISSIOZI~:~ [ur A 

~~erson designated by a Cornrnissiot~cr 

under p-ingral~h [a) of this sect~on] 

proposirlg to tnko a dcpositioll under 

this suctiort shall givo rr:asonoblo noti[:!: 

ro the Commission and the partios, it 

any, ot the taking of a depos~tlon. Notir-11 

shall includo the name of tho witnosr 

and the time and place of the 

dcposition 

[c) Every person dcposcd u~ider th~s 

part shall be notified of his or her right 

to h: represented by counsel durin~ tho ,,- -. - 3 8. *+ .[ -.lo. 

iXll:l. ; c5i:illbl;j' ~i.al; ilc rzCluC?a :ll 

writing and sullscribed by the dcpo~jcr~t 

Dcpos~tions shall be filcd prornplly rvith 

the Commission or. if a presiding 

olricial has been designated. with tho 

presiding official. 

(dl \lri~ncsses wl~ose depositions arc 

~akrn as aulhorized in his section, and 

the prrscms taking the samc. s11all flu 

severntly er1t10cd to the same fees ns nrt! 

patd fnr 11 kt! servlccs 111 the r;orirt< or lht: 

Un~ltmd Stn1t.s 

9 571.1 2 Aydil standards 

A 1r111u shalI erlgngc an irrd~:~crldt:rit 

crtnifi~d puhlir: acr:ounrarll to prol.idu 

an s~iliilnl ~udil of tho fi:inncinl 

s:illenicnls of coch gamin^ opcration or1 

Irldian lands. Such financial statomurtls 

sl>all he prepared in nccordance with 

gu~icrally acceplt!d accounting 

~irirlci~,lcs nnil Ihe audit(s1 strall 

(:or!dur.tcd in accordancu rcmith ~cnurnll\, 

;~::r~!prt:d auditing standairis. Audit(s] (IT 

rho ~~n~ir~g r,puration roq~timd ~~ndcr 

iI:is scr:lion may bc conduc:tcd in 

r.r>rlju[jr:tior> with any otller indupundr-111 

nurlit of ~ILA ~rilx~, provided (hat rh+j 

srhr;~rirr rrrrbr\!< o[ 1 tiis r:haptt+r a:o mt.! 
d 

5844 Federal Register J Vol. 5R. No. 13 / Friday. January 22. 1983 1 Rules and ~cgulnliuns 

4 571.13 Coples ol audit rcporfs. 

5 571.14 Relatlonshlp 01 audited financ[sl 

9lslomonts to fw, assessment reports. 

A ~ri!>t: shnll rcr:encilu its qunrtrrlq. ft:t: 

nsscssrr~rjnt FR~OT~S, subn~ittt?d under 25 

C:PR pad 514, ~vith its nr~diterl IinnnciaI 

<!ntcrnc[~rs and rnakr: ovnila't~le such 

rc:c:r)~lr:ilialinn upor) rtqcltlr?.sl l~v tilt? 

Cnrrln~issinn's arrthorizi!d 

:~prusentarive. 

PART 573-ENFORCEM ENS 

Sec 

>-3 1 Scrip 

57~ 5 Nr~t~co of viul~t~un. 

573 6 0rdr:r of temporary closurc. 

Aurhority: 25 U S C 2705[a](l), 27C4, 

2713. 2715. 

5573.1 Scope. 

This part sets forth general rules 

governing the Commission's 

enforcement of the Act. this chapter, 

ond tribal ordinances and resolutions 

approved by the Chairman under part 

522 or 523 of this chapter. Civil fines in 

connection with notice of violation 

lssucd under this part are addressed in 

?art 575 of this c'larfcr 

V-, I LIL LIIU.;~;.~~~ :i;SUc 2 ItdiiLt? 

of v~olation to any person lor violations 

of any provision of the Act or this 

chapter, or of any tribaI ordinance or 

resnlution approved by the Charrman 

under part 522 or 523 of this chaptcr. 

id) A notice of violation shaI1 contain: 

(1) A citation ta the fedsral or lrihal 

rrqu~remeni that has benn or IS being 

v~olated: 

(2) A description of tht: circumsta~ices 

~urrounding the vioIa1ion. set forth in 

(:ommen and concise language: 

(3) Measures required to correct tltc 

violation. 

(4) A reasonable lime for correctiun, if 

[he respondent cannot take measures to 

r-nrrect the violation immediately; and 

(5) Noliuc of riglits of appeal. 

5 573.6 Order of temporary cloaure. 

(a1 L2'h~n on order of temporary 

closure mny rssue Simultaneously ivit 11 

or subscquerllIy to the issuance of a 

notice of violation under 5 573 3 of this 

part, the Chairman mny issue an order 

tr:rnpnrnry closure nf all or part cli an 

Ir~ri~an Rarntng npcraiiori iI one or rnnrt 

ni thr: InItoiicig suZ~s~nn~inI rfrola[ions 

nrc pr~~crtf. 

(I] Tho rccpo~ldnrlt falls to r:orrrhc.t 

vet~lntiorls with~n 

(i] I-IIP! ~I~TIP perrniltcd i11 a nolic:~! of 

V~~II;II~I>II, 4jr 

[ii) rq!,t<c~!~;ihI~: tirnc after ik IIIIN: 

pr~,vilfr:s r~r)l~t:i: of a violation. 

(2) A p!~n!~:g t~pcratiion fails in ::LC 

,111nu;rl ft:c rt:c;hirud by ZS CFR pad 5 14 

(3) A gaming operation opcralcs (or 

business witf~out a tribal ordi~lance nr 

rusofution tllal the Ch~irrnan has 

nplxovt:d unrirtr part 522 or 523 of this 

(:hap t t?r. 

[4) A ganring operotior~ opurntes rnr 

busint:ss without o license front o trl?~, 

in violation of part 558 of this choptnr 

(5) A RarniIlg operation opuratcs For 

business ~r.ithout eithor background 

invustigalions havlng been cornpletcd 

for, or tri1w.I licenses granted to, all kt'? 

urnpfoyeos and primary ~nanagemcnl 

officials, ns prov~ded in 5 558 3fi) of 

this chapter. 

(6) There is clear and corrvincing 

cvidence that a gaming operation 

darrauds a tribe ore customer. 

(7) A management contractor operatesfor business without a contract that the 

Chairman has approved under part 533 

of this chapter. 

(8) Any person knowingly submits 

false or misleading information to tha 

Commission or a tribe in response to 

any provision of he Act, this chapter. 

or a tribal ordinance or msolu!ion that 

the Chairman has approved under part 

522 or $23 of this chapter. 10) d 01r-~il- n-,=-~'-r- r-ql<>$ $0 

. . a- . I. ,. . -, ,. . . I._. 

official lo enter or inspect a gaming 

operafion. in violation of 5 571.5 or 

5 571.6 of this chapter, or of a tribaI 

ordinance or resolution approved by 1110 

Chairman under part 522 or 523 of this 

chapter. 

(10) A tribe fails to suspend a license 

upon notification by the Commission 

Lhnt a primary management official or 

key employee does not most the 

standards for employment contained in 

5 558.2 of this chapter, in violat~on of 

5 558.5 of this chaptsr. 

[I 1) A g~rning operation aperates 

class 111 games in the absence of a trihalstate compad that is in offed, in 

violation of 25 U.S.C. 2?10[d]. 

(12) A gaming operation's facility is 

constructed, mninialned. or operated in 

a manner that threatens tho 

environment or the public health and 

safuty, in violatian of a tribal ordinance 

or resolutiorl approved by the Chairman 

under pad 522 or 523 of this chaptcr 

(trl Order eljcctlve upor1 servrce Tlrc 

uperator of an Indian gaming opcrorlnn 

shall clusc tho opuration upon servlcc nf 

an ordcr ol temporary closure. ur~luss 

the nrder provirics otherwise 

(c) Informal e.rpeditcd rerslew. Within 

scvcrl(7) days ofter scrvice of an order 

n[ h:mporary r:lr~si~rt:, I hc: rr*:,pontlc::~ r 

!TI~IV rc!r]i~~?sI. c~r.~lly ilr III wr,!irw. 

IL>~~+~III;J[ t!~p-{l~ t,arl rlx\-lbLm.\ ?!y thu 

~:~l~irr~l~~l. 

[ 1) The UIJI~IIIII[I \!I,~I! t:t~~!ipIt!~f: TIIF, 

r~xj~(!dilt:ci rt:vlkwo lrrnt-i~l~:rl [or by 1111:~ 

pnragrapI1 within lrsu (2) d;lyr; after hl!; 

or her rscei I of a [i~neIv ruqud. 

(2) Tho cgaiinian slialIa within irro 1;)

rinys after thr: ~:xprxli:r:d rtgvisw 

~)r~vided lor l ihic pnmgrn~I1: 

[i] Dwido wilctllhr to c~~r~ti~laean 

ordcr or tcmpornry r:losurt:; nnd 

(ii) Provide rht? respontiur~t wit11 arl 

ex lanatiun of ilia hasis frlr tha dct:i.;irli~ r:) ~~~~~~?~~i~r or nor n r~?spot~rIent scc!L s 

~nk~rtnal cxpet1irt:d rt!vit:w ur:der tl~is 

paragraph, within thirty (301 days nl~t?r 

rhe Chairman sc:rxves a11 orricr ol 

temporary clostrre tho respoudent may 

appeal 1il.c ordt:r lo the Cornmisinti 

under part 577 of this chapter. 

Othcnvise, the order shall remain in 

effect unless rescinded by thc Chairman 

for good cause. 

PART 575--CIVIL FINES 

Scc 

575.1 kopc. 

575 3 How asscssmcnts are tnade. 

575.4 When civil line will bc esmd. 

575.5 Procedures Inr asscssrnenf of civiI 

fines. 

575 6 ScltIenicnt, reducf~un. or wBvcr uI 

civd fine. 

575.9 Final a=.sss~m-of. ' 

9 575.1 Scope. 

This part addresses the assemen! of 

civil fines under section 2713(a] of thc 

Act with respect to notices ai viol at lor^ 

issued under 5 573.3 of this chapter. 

5 $75.3 How assessments arc IMdF. 

The Chairman sIialI review each 

notice ofviolation and order of 

temporary clnsure in accordance w~th 

5 575.4 of this part to determine ~Ileth~i 

a civil fine will be assessed, the amourrt 

of the fine, and, in thc case of 

continuing vioIalions. whether each 

daily illegal act or omission will hn 

deemed a separate vinIation Tor 

purposes of Ihc total civil fine assc\sr>rj 

5 575.4 When civil bins w11l b asatlseodThe Chairman may assess a ~viI Ent:. 

no\ lo cxcecd S25,000 per violatian. 

agairlsk a rtibe, mnnagarnenf cuntnctur. 

or individual operating Irtdinn garnln!: 

for eat 11 notice ni violation issued uc1ri1.r 

5 573 3 of th~s dia1>~er after considerlrl~ 

rhc iolluwing factors. 

la) Econonltc hrnrJrt oJ 

nflnconrplinnre. The Cha~ r~nen 511.7 1 I 

cons~der tho oxtctll 10 wl~ictl the 

respandont obtornod nlr ocorlomic: 

boncfi~ frorn the ~ioncf~n~~finqce thnl 
'58. No. 13 , Friday, January 22, 1993 1 Kufes and ~cgulatjons 58j.5 

(2) If noncompliar~cn uur~lj~~ues for 

tnorc than ona day, tho Chairman may 

irrai each daily i!lcgal oft rlr orlrls.;lorl 

2s o st:jlarate violniiorr. 

(i)l Scriorrsness (?l ~IIC vtoli~/lor~. T-II~J 

Clia~nnar~ may AC~ just fht: a111011111 of A 

r:i~.11 fine to reflt?r:t the s41r1r~11srlcss of~Iit! 

trinlalior~. In ~LII'II~ SO. the (:llairrr~n~~ 

sI!aIl tar~sidor ~hr: cxtcnr lo whir:I~ thtq 

i-lolalion ~hwatc:~rs [he ir~~egrity ol 

I!lrjran gaming. 

(('1 !!;story cf rro~n1:or~~ The 

Cha~rman may nd just n c~vil Ci:re 11)) AII 

nrnount tha! rcflccts the rcsponde~~t's 

illstory of violalions over Ihe precedinz 

five (5) pars. 

(I) A violalion cited by the CIiairmall 

shaI1 not he considcrad unloss the 

asqociatcd no!ica of violation is the 

subject of a Iinal order of tho 

Commission and has not been vacaled: 

and 

(2) Each violation shall be considered 

whether or not it led to a civil fine. 

(dl NegJjgligence or will{uulness. TIis 

Chairman may adjust the nrnount ofa 

c~vil fine based on tho degreo of buFi of I. . . . -. 

(el Good fa~lh. The Chairman may 

teducc the amount of a civil finr basct 

on the degm of good faith of the 

respondent in attempting to ochievc 

rapid cornpIianco ofier notificaiion of 

thf: violation. 

5 575.5 Procedures lor assessment of clvil 

fines. 

(a) lvithirl 15 days after sorvicu ola 

notlce of vioIatjon, or such longer 

psr~od os tho Chn~srnan may grant lor 

good cause, the rcspondont may submit 

i.,rrr~rn iriformation abut thc v~olatior~ 

to \he Chairman. The Chairman shall 

censjdor eny inlormotiorl so subrnittnd 

det~rrnining the facls surrounding illr 

r~io!a:ion and the nmounf of the CYVII 

fine. 

i[h) Tlw Cirajrrnan shall serve a copy 

of the proposed essessment on tIlo 

resnend~nt withiil thifly (30) days oftrrr 

1h1? rlolice of vinlailon xvus issut:d, rvtlr~:~ 

practi-blc. 

(r.) Tho Chairmarl 111ily review nrrd 

r::nsscsg.sn y cirri fill0 II r1t:ccssary to 

corls'idar facts that wnn: nnt wosonaE)Is 

ovniloblo on 1110 da tt~ of I<sllnrlcn ol tI~r 

yrrll)~~sed ~SSPSS 1110 [it 

5 575.6 Senlamont reduction. or walvtr of 

ctvl! f~nn. 

rurittr:n t~!r~~~tqst uf R rt:sp011(11:~11 n!~;t!it't-fl 

nl a11.v ti11161 1)rior 10 thc fifin): nla 1lc~i1r.c 

r,l nppt:~! ilndrr part 57: rrt this trhnpta'r. 

[he Uhninnan mey wduco or wai~.i> n 

r:ivil Lno il ho or she daterrnin~s rhnt. 

taking inlo account exceptional factors 

~~esenl in a parlicuInr r:nsc, the firm i:: 

cjc?monstrably urljus! 

121 A11 j~ctilions for raducrion or 

woivcr shall contain: 

[i) h detailed dssuij)tion 01 the 

r.it>lation tht is !he suhject OC tfir! f:~lt:: 

(ii) A dotailod mcilation or tho fans 

ttral suppod n rtndjng that the f111o is 

tlr!rnonstrably tinjust, occompaniod by 

t~nderlying dacurn~rlfa~~on. iCany. and 

(1ii1 A dedarsliori, signed nnd dated 

i~y L~IC respondent nod his or her 

co~~nsel or represuntalive. il any, as 

follorvs. Under penalty of porjury. i 

declare thot. to the best ot my 

know ledge and belief, the .- 

representations made in this peirtior~ arc 

true and correct. 

(3) The Chairman shall serve the 

responden! with written notice of Elis or 

tier deiermir~atron under paragraph (a] 

of this section. including o statenlent of 

the grounds for the Chairman's decis~o~~ 

(b) Sctllement. At any time prior 10 

tflc filing 01 a notice of appeal under plq ~7; nc ~l~j~ r--Tnf~T, lhr. rk-7;--ln .&. , . . . , .I.. 

. . ' ,:, - , . 'L.*L .., LA,. 

amount of the asswiared civil fine. In 

the event a settlement 1s reached. a 

scttlemont agreornent shall be prepared 

and executed by the Chairman and the 

respondenr. Tf a settlement agreement is 

executed, the respondent shall lx 

deemed to ]lave waived all righls to 

f~~t-iher review of rhe v~olation or civil 

Irne in question. except as otherwise 

provided expressly in the settlemer~t 

ngrpemcn t. In the absonce of a 

se~tlornen! of the issues under this 

paragraph. the responden! may contest 

~hc assessed civil fine hefore the 

Commission in nccortlance with pafl 

577 uT !his chapter. 

5 575.9 Final assessment. 

[a] If ~ho rsspondon~ biIs 10 requost a 

hearing as provided in par1 577 nf this 

chaptor, the proposed civil fino 

assr,ssmcr~i shall t~econle n fin31 order uf 

the Commission. 

(bl Civil fines nsscsscd urldur this parl 

shnll I)o llntd by the pcrson osstlssud ant1 

si~nlf not Ijr truated as nn opcralinc 

c*pc!r~su of tfre opr!n~iutl. 

(I:) Tlie Comnl is~ion SIKIII 1ransfr:r 

civil firrtrs paid t~ndttr illis chapter to !I!,+ 

5 'Trtaa<t~ry 

PART 577-APPEALS BEFORE THE 

COF.!%?ISSION 

5577.1 Scope. 

(a] This pnfl prnvidu.; ~)roct.rjurc~s for 

np ealr ro tho Comn~~sslon regarding 6 ,% VICII~IIOII nll4-pad in n ~iotiau ni 

v~olnl~un: 

(2) Civil fines ossessed by rile 

Chairrnan; 

(3) IVhether at1 order of temporary 

rlosure Issued by tile Cha~rman should 

t~e made permanent or he dissolved. and 

(4) The Chairman's dccision to void or 

modify a managemcllt contract under 

pafl 535 of this chapter subsequent to 

initial approval. 

(b) Appeals from deferminations of 

the Cbairrnan trltder 25 U.S C. 2710 and 

271 1 (regarding rnarlagcmcrrt contracis) 

and 2710 (regarding tribal gaming orJi.--.%~m.-l ,-"" --: I-"<<,-A ; -J??> :;<> . .. .. . . 

5 577.3 Reqaesl for nearing. 

[a) ;I rcbsponderit rrlay request n 

hmring to contcst the mnrters listed ir~ 

$577.1!a)(l)-(1) hy submitting a notice 

of appeal 10 the Con~rn~ssion within 

thirty :3U) day9 offer st:rvice oT: 

(1 I A nolice of rliofa!ion. 

t2) A ylro7nsr.d crvil fine assessment 

or resssessrile~~t: 

(3) .An orcli!r ol ierr~porary closure, cr 

14) -411 o:rlt:t voiding or modifying a 

r~~anafit'nwrif cant rncf suhseq~ient 10 

initial apprmnl. 

(hl A not it^ of appeal shall rcf~rcr~r:? 

tlir notice or order from w'hi~f~ the 

rip t.al is taksl~. 11 IVilhin tell [:or days aftcr fllinc n -. , nntic r of appcal, the respondent slrn13 

fllc wilh the Colninission n 

supplerner~tal statc~rlcnt that-states wilt) 

pafiicularity the rclleidesired and the 

~rourids therefor artd that includes. 

rr,t\cr~ arai1al~l.c. s:ipportir1g ev~denco I rl 

the Inrnl of nfficlnvits. If tho responden1 

w1sl1r.5 to pr~:srr~l oral ~t>stirnorry or 

~v~irlt:s.;cs at thr: l~r:arlr~g. the r~~pondi.:~: 

sfinll inr:lude o requtls? to do so with t!~c 

supplerlicntal stn:cmtnr. The rcqtrest to 

prt!se!lt oral tt:stirnotly or zrtt rtt'qses 

~11~11 spt~c1Jy th~ IKIIII~I~ OI propost'd \~Jll!l#l\.tn< 01,<i !{I(, y<:l,i~rd IjJl LI~I, G[ lllt*lJ 
5846 Federal Register / Vol. 58. No. 13 1 Friday, January 22. 1993 / Rulcs and Rcg~~lations - 

9 577.4 Hearing deadline. 

[;I) 7.11~ C;n:nnjiss~on sha[l designnit: n 

;~rt.:;icIiii~ ufficial whu sIr1ll1 cr>rtlrnc:rlr:c 

11 I!r:arirrg withill 30 dnys nftcr ~i?v 

~:llllllt~i~~;r)[l rut:civus a irltsly not ice o! 

nppt:.?l [rum il~c rcsl>ondcnt. A[ t11c 

rt:cttlt!51 of !he rr!si~~ndcr)l. 111r: presiriirly: 

nffic:i;~l rnay nrdi>r 211o hear in^ to 

c-r,~rrnrrnce a: n trmc nlurs than 30 days 

,l:tt,r III~, rrql)o[~ricnl TlEec 8 notire uf 

nyi~)eaI Tlie Coinnrjss~on shall transrn~l 

!Ire arIrt:inrstra~~ve rccord ol fhr case te 

[ tlf: presiding nli~clnl 11pn11 desrgnatior~. 

[\r) If [he SII~~CCI of an ap~lcnl IS 

~vl~etfler on order of leniporarg closure 

sho~~ld be made permonen! or bc 

d~sscrlved, lllz hearirlg shall Ire 

((1) ZVhoncv~r R rcprosnntnfivu 

[IIII !L!{![II~ P> nflorlrt~!.) hnc +?r~li~n~cf nrl 

ilp;iv.ar:j[u,t? fur n party 111 n ltr<n:otjt!a~~k; 

i~~~t~nt~.rl 1~11dhr 1111s par!. SUFVII.~ 

Ihurc;~ltur shall 1~: ~nnde upon t!iij 

rr~pr~:si::'?ln ive. 

(13) 111 UOITIP~I~I~K nny period of ri~rlo 

prcscnbed for f~ ling and surving a 

dwu~nent. the first day ot the period so 

c-o~r~pu~ed sl~all no[ tn! included. Tlit? 

!*is: dny sl~all t)c included un!ess 11 is n 

Snturday. Sunday, cr hderal IegnI 

ilol~dny, irl ~i.hicl.t case tho period shzll 

ruc~ unl~l tho cnd of the next b~~sir~tjss 

day. 

[f)(l) The presid~rrg official may 

t:utcnd ll~u fime lor hl~n~ or servlrlg any 

docuri~en~ except a not& of appcal. 

(2) A request far 811 extension or time 

must he Iilad wllhin the time origina[ly 

allorvcd lor iiIing. 

(3) For good cause thc prcszding 

orficia! may grant an extension ol time 

on lifs or her own initiative. 

11 [1) Tnhr: nt11c:r nct inns n~~ltrorizrld Ily 

IILF~ (:rj~r~[;~ix:iinr~ f:~lf~<l~l~:!it wi11t t11~a; 

11,'" 

[c 1 Tht, pr1+5it!111~ off~~.~~rI rnoy ortltbr 

thrb rtbc.r~rri lo hi! L1!1>1 O~IUII fur u 

rtgow>~jah!t! 111:riod fa~[l(>wi[jf; [!!I! IL\*:I~III~; 

[ttorr:~a!Iy f~viq L~;I~s]. (furin~; wtiit:I~ ti~rtc~ 

Ilru padies Illny III~ILU nrlditior~al 

subtt~issions lo ill(: rccord. Thercrlfrcr. 

tllc rrtcord sl~nll bc r:lose3 arid rhr: 

h!tnri~t~ strnll 11u dt?ornt~cl c:or~cluJt;d. 

It'111irr1 30 days afttlr ~hu rrlcnrd clr~scrs, 

1l1a presidia~ ofri(:inl sllntl issun n 

rt~r:ornmunded tft:r:ision irl a<:curdnnr:o 

with 5 577.14 nl this pnt?. 

6 577 B Raqueal to lirn~t dilocloturc cf 

conlrclentlal Enlormarion. 

(a) If ony person sutlmittingo 

documt:nt in a procuudirrg lilirl in.,*aIves 

nlorc than two padlus clalrns that sumv 

or all of ttlu inforn~arion conlainod in 

~irnt docume~it IS oxernpt Iiom ttln 

mandatory public disclosure 

reqt~irements under the Frevdom ol 

cnncl~rdcd within 30ha~s after tllc 5 577.7 Conducl of hearing. .- ~nforrnalion hct (5 U.S.C. 5521, is 

Curnrniss~on receives a rirnely notice of (,I once designated hy ,he inlormation referred to in 18 U.S.C. 

appca!. un[ess 111~ rcspondenl waives ~~~~i~~~

the pmsiding orficial 1905 (disclosure of cortfidential 

1111s requlren-lent. hrotwifhstanding any case far hmring. ne respondcnl 1nf0rrnallon], or is othcw~sexempt by 

allrcr provision of this part, the may appsar [he hearfne personally, law from public disclosure, the person 

pl esid ing official shall conduct such a persDnal~y shaI1: 

hraaring in a manner that will enable counsel, The respondent shall have the (11 Indicate that docurncnt in its 

him or her to concIude [he hearing right to introduce relevant written enlirety is exempt from disclosure or 

within the period required by this materials and to present an oral idenlify and segregate information 

paragraph. while ensuring due proccss argument. A, [he disEretion of the within the document that is exempt 

lo a11 parties. presidinol oficial. a hwrlnr* under ~Fliq . disc'osure; -. and . , 

,I > 

m L. 

appi?"! urlrier this pan shal! serve copies 

of the initialing documents or: 1l1e 

Cammission a1 !tie address indicated in 

the noiics or order rha! is I~F: subject of 

the appeal. AIE filings sl~all be made 

with the Commission until a presiding 

officia! is designated and the parties are 

so r~otified, after ~vhich all filings shall 

bc rnsde rx.tth the prcsrdirlg ofricial. Any 

party or orl~cr person urlra suhsequenily 

f~les any other doctlment with rl~t! 

Cornjr~ission or the prestdlng clflcct 

shall sirr,ultant:ousI!* serve copies of 111at 

docu[nul:f on any otfler psnics lo the 

procer5dit~~, except lo that extent 5577.8 

or this part may govern the d~scIosure of 

conf1dt:ntial informallon conrained in a 

on all knaivn parties personally, by 

facsimile, nr by rug~stercd or certified 

marl, return receipt requested. All 

subscqucr~r doct~munls sI>ali bc serve(I 

p~rsor:ally, by facsin~~lc, or by first class 

mall. 

(c) S~~ir:e of copies of all docunicnts 

IS cnnlj~!r:lc al lhc tirnt' or persorral 

sf:rvir:e or, ih service 1s made 1)). mail or 

facstrrliie. upon Ironsn~ittal. 

. ,. . I ,': 

an3 cross-examine witnesses. 

(1)) When holding i? hearing under this 

part. the presiding official shall: 

(I) Administer oaths and afErmations; 

(2) Issue subpoenas authorized by the 

Corn mission; 

13) Rule on offers of proof and receive 

relevant euldence; 

/4) ~utharize exrhenges of 

information (including depositions and 

I nlerrogatories in-accordance with 25 

CFR part 571. subpast C1 among the 

partius when to do so ~#ould expedite 

the proceeding; 

(5) Regulate [ha course of the hearing: 

(6) Whea appropriate, hold 

conferences lor the sertlement or 

simplification nf the issues by consent 

af the paflies; 

(7) ht any conference held pursuant 

to paragraph (h1161 of this seclion. 

requite !he attendance of at least one 

rt!presrntatlve of~3~h party who has 

author~ty to negohato the resolution of 

issues in controversy; 

[R) Dispose of prmeduraI requests or 

s~rnila: rnalturs: 

(93 Reconimend d~isions in 

accordance with 5 577.14 ol I~IS pad: 

and 

1,.~1 hl.-h L\! td!c [JrlA~etL~vi;; {~JLL~C~ L.'laIl ~WIC 

Chairman. whose actions regardil~g tho 

discl~surs elconfidential information 

are governed by 5 571.3 of this chapter) 

except pursuant to paragraph of ibis 

Section, and shall serve tho request 

upon tlie parties !a the proceeding. The 

requesr to the p:t?sicl~ng oflir:~al shall 

tncIude: 

(i) A CGP~ fir the dacument, group of 

doc~r~nents. or segiegnble purt~ons OI ~ltc 

documents marked "Confidential 

Treatment Requested": and 

[ii) A statcrntmt explainir-g why the 

infarrcation is cocfidenti~l. 

(b] A party to o ~roceedirr~ may 

rFqtl~Sl 1\iat tile prtlsiding official dirccl 

a person submilt ing ir~ forrnarion under 

parag:aph (a) of [his scctior~ to provide 

thal inforrnaiion to the party. The 

~~residlng official shoII so direct I[ the 

pnrfy req:~e~!ing tho ict formation agrees 

under oath and in writing- 

[I) Not to use or disclosc the 

infrlrrnat~on exccpt direct I y in 

connection rvilh the hcarin 

(2) To return all copies o F: tfle 

irlforrnat~on ot the conclus~on of tflc 

procwc'l~ng to tflc person sul~mittiw lflc 

~nformat~on under (3) of Ihls 

sccliof?.