Redwood Valley Little River Band of Porno Indians

P0. Box 499 / REDWOOD VALLEY CALIFORNIA 95470 (707) 485.0361 Refer to:

REDWOOD VALLEY RANCHERIA

RESOLUTION 95-4-1

Resolution Adopting the Redwood Valley Rancheria Tribal Code of Gaming Regulations

WHEREAS, The Redwood Valley Rancheria of Porno Indians of California is a federally

recognized Indian Tribe, recognized by the Secretary of the Interior as a sovereign Indian Nation

with inherent powers of self-government; and,

WHEREAS, The Redwood Valley Rancheria of Porno Indians of California determined that the

establishment of Indian Gaming on Tribal Lands is in the best interest of its members, and

therefore enacted Ordinance No. 7, authorizing Indian Gaming on Tribal Lands, and

WHEREAS, Ordinance No. 7, Section lx, requires the promulgation of rules and regulations

controlling gaming on Tribal Lands, and such rules and regulations having been so promulgated

and compiled in a Tribal Code of Gaming Regulations;

NOW THEREFORE BE IT RESOLVED, The Redwood Valley Rancheria hereby adopts the

Redwood Valley Rancheria of Porno Indians of California, Tribal Code of Gaming Regulations:

CERTIFICATION

The Redwood Valley RanØheria does hereby certify that a meeting was duly called, noticed, and

convened on the 7th day of April, 1995, where a quorum was present, and this Resolution was

adopted by a vote of 6 FOR, 0 AGAINST, and 0 ABSTAINING.

GAYLE ZE~$DA,~p~1 Chairperson

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Date

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~EaZABETHHAN~oN, Attest Date

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CERTIFICATION

The attached Ordinance No. 7 of The Redwood Valley Rancheria Of Porno Indians Of

California, regulating Indian Gaming on Tribal lands is a true and accurate copy of said

Ordinance enacted by the Tribe on March 19, 1995

Dated: May 4, 1995 ________________________

GAYLE ~ED hairperson

Redwood Valley Rancheria of

Porno Indians of California
ORDINANCE NO. 7

ORDINANCE OF THE TRIBAL COUNCIL OF

ThE REDWOOD VALLEY RANCHERIA OF POMO INDIANS OF CALIFORNIA

THE REDWOOD VALLEY RANCHERIA, REGULATING GAMING ON

THE REDWOOD VALLEY RANCHERIA TRIBAL LANDS

The Tribal Council for the Redwood Valley Rancheria hereby ordains as follows:

I. Purpose

The Redwood Valley Rancheria (Tribe), as the beneficial owner of the Indian

Rancheria, and acting through its Tribal Council in the exercise of its inherent sovereign power

to enact ordinances and otherwise safeguard and provide for the health, safety and welfare of

the Indian Rancheria or Reservation and the members of the Tribe, hereby enacts this Ordinance

to set the terms and conditions under which Class II and Class III gaming may be conducted on

Tribal lands.

H. Gaming Authorized

A. Class II gaming as defined in the Indian Gaming Regulatory Act, P.L. 100-447, 25

U.S.C. Section 2703 (7) (A) (IGRA) and by the regulations promulgated by the National

Indian Gaming Commission at 25 C.F.R. §502.3 (as published in the Federal Register at 57 FR

12382-12393, April 9, 1992) is hereby authorized.

B. Class III gaming as defined in the Indian Gaming Regulatory Act, P.L. 100-447, 25

U.S.C. Section §2703 (8) (IGRA) and by the regulations promulgated by the National Indian

Gaming Commission (NIGC) at 25 C.F.R. §502.4 (as published in the Federal Register at 57

FR 12382-12393, April 9, 1992) is hereby authorized, provided such gaming is also authorized

by and consistent with a Tribal-State Compact that has been approved by the Secretary of the

Interior and is in effect, or otherwise has been authorized by the Secretary of the Interior or

federal law.

ifi. Ownership of Gaming Facilities and/or Enterprises

The Tribe shall have the sole proprietary interest in and responsibility for the conduct of

any gaming facilities and/or enterprise(s) authorized by this Ordinance.
IV. Use of Gaming Revenue

A. Net revenues from Class II and Class III gaming on the Reservation shall be used

only for the following purposes:

1) to fund Tribal government operations and programs;

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

3) promote Tribal economic development;

4) donate to charitable organization; or

5) help fund operations of local government agencies.

B. If the Tribe elects to make per capita payments to Tribal members, it shall authorize

such payments only in conformity with a plan submitted to and approved by the Secretary of the

Interior pursuant to 25 U.S.C. §2710 (b) (3).

V. Audit

A. The Tribe shall cause to be conducted at least annually an independent audit of all

gaming operations and shall submit the resulting audit reports to the National Indian Gaming

Commission.

B. All gaming-related contracts that result in the purchase of supplies, services, or

concessions in excess of $25,000.00 annually, except contracts for professional, legal and

accounting services, shall be specifically included within the scope of the audit that is described

in Subsection A above.

VI. Protection of the Environment and Public Health and Safety

Class II and Class III gaming facilities on the Reservation shall be constructed,

maintained and operated in a manner that adequately protects the environment and the public

health and safety.

VII. Licenses for Key Employees and Primary Management Officials

The Tribe shall ensure that the policies and procedures set out in this section are

implemented with respect to key employees and primary management officials employed at any

Class II and/or Class III gaming enterprise operated on Indian lands.

A. Definitions

For the purpose of this section, the following definitions apply:

1. Key employee means

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(a) A person who performs one or more of the following functions:

(1) Bingo Caller;

(2) Counting Room Supervisor;

(3) Chief of Security;

(4) Custodian of gaming supplies or cash;

(5) Floor Manager;

(6) Pit Boss;

(7) Dealer;

(8) Croupier;

(9) Approver of Credit; or

(10) Custodian of gambling devices including persons

with access to cash and accounting records within

such devices;

(b) If not otherwise included, any other person whose total cash

compensation is in excess of $50,000 per year; or

(c) If not otherwise included, the four most highly compensated

persons in the gaming operation.

2. Primary management official means

(a) The person having management responsibility for a management

contract;

(b) Any person who has authority:

(1) To hire and fire employees; or

(2) To set up working policy for the gaming operation; or

(c) The chief financial officer or other person who has financial

management responsibility.

B. Application Forms

1. The following notice shall be placed on the application form of a key employee

or a primary management official before that form is filled out by an applicant:

In compliance with the Privacy Act of 1974, the following information is

provided: Solicitation of the information on this form is authorized by 25 U.S.C.

2701 et seq. The purpose of the requested information is to determine the

eligibility of individuals to be employed in a gaming operation. The information

will be used by the National Indian Gaming Commission members and staff who

3
have need for the information in the performance of their official duties. the

information may be disclosed to appropriate Federal, Tribal, State, local or

foreign law enforcement and regulatory agencies when relevant to civil, criminal

or regulatory investigations or prosecutions, or when pursuant to a requirement

by a Tribe or the National Indian Gaming Commission in connection with the

hiring or firing of an employee, the issuance or revocation of a gaming license,

or investigations of activities while associated with a Tribe or a gaming operation.

Failure to consent to the disclosures indicated in this notice will result in a

Tribes being unable to hire you in a primary management official or key

employee position.

The disclosure of your Social Security Number (SSN) is voluntary. However,

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

2. Existing key employees and primary management officials shall be notified

in writing that they shall either:

(a) Complete a new application form that contains a Privacy Act notice; or

(b) Sign a statement that contains the Privacy Act notice and consent to the

routine uses described in that notice.

3. The following notice shall be placed on the application form for a key

employee or a primary official before that form is filled out by an applicant:

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

you, or for firing you after you begin work. Also, you may be punished by fine

or imprisonment. (18 U.S.C. §1001).

4. The Tribe shall notify in writing existing key employees and primary

management officials that they shall either:

(a) Complete a new application form that contains a notice regarding false

statements; or

(b) Sign a statement that contains the notice regarding false statements.

C. Background Investigations

1. The Tribe shall request from each primary management official and from each

key employee all of the following information:

(a) Full name, other names used (oral or written) Social Security number(s),

birth date, place of birth, citizenship, gender, all languages spoken or

4
written;

(b) Currently and for the previous five (5) years: all business and employment

positions held, ownership interest in those businesses, business and

residence addresses, and drivers license numbers;

(c) The names and current addresses of at lease three personal references,

including one personal reference who was acquainted with the applicant

during each period of residence listed under paragraph (1) (b) of this

Section;

(d) Current business and residence telephone numbers;

(e) A description of any existing and previous business relationships with the

Indian Tribes, including ownership interests in those businesses;

(f) A description of any existing and previous business relationships with the

gaming industry generally, including ownership interests in those

businesses;

(g) The name and address of every licensing or regulatory agency with which the

person has filed an application for a license or permit related to gaming,

whether or not such license or permit was granted;

(h) For each felony for which there is an ongoing prosecution or a conviction,

the charge, the name and address of the court involved, and the date and

disposition if any;

(i) For each misdemeanor conviction or ongoing 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;

(j) For each criminal charge (excluding minor traffic charges, whether or

not there is a conviction, if such criminal charge is within ten (10) years

of the date of the application and is not otherwise listed pursuant to

paragraph (1) (h) or (1) (i) of this Section, the criminal charge, the name

and address of the court involved and the date and disposition;

(k) The name and address of each licensing or regulatory agency with which the

person has filed an application for an occupational license or permit, whether

or not such license or permit was granted;

(1) A current photograph;

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(m) Any other information the Tribe may deem relevant under the circumstances;

and

(n) Fingerprints consistent with procedures adopted by the Tribe in accordance

with 25 C.FR §522.2 (h).

2. The Tribe shall conduct an investigation sufficient to make a determination

under Subsection D below. In conducting a background investigation, the Tribe or its agent(s)

shall promise to keep confidential the identity of each person interviewed in the course of the

investigation.

D. Eligibility Determination

The Tribe shall review an applicants prior activities, criminal record, if any, and

reputation, habits and associations to make a finding concerning the eligibility of a key employee

or primary management official for employment in a gaming operation. If the Tribe 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, a tribal gaming operation shall not employ that person

in a key employee or primary management official position.

E. Procedures for Forwarding Applications and Reports for Key Employees and Primary

Management Officials to the National Indian Gaming Commission

1. When a key employee or primary management official begins work at a

gaming operation authorized by this Ordinance, the Tribe shall forward to the National Indian

Gaming Commission a completed application for employment and conduct the background

investigation and make the determination referred to in Subsection D of this Section.

2. The Tribe shall forward the report referred to in Subsection F of this Section

to the National Indian Gaming Commission within 60 days after an employee begins work or

within 60 days of the approval of this Ordinance by the Chairman of the National Indian Gaming

Commission.

3. The gaming operation shall not employ as a key employee or primary

management official a person who does not have a license after 90 days.

F. Report to the National Indian Gaming Commission

1. Pursuant to the procedures set out in Subsection E of this Section, the Tribe

shall prepare and forward to the National Indian Gaming Commission an investigative report on

each background investigation. An investigative report shall include all of the following:

(a) Steps taken in conducting the background investigation;

6
(b) Results obtained;

(c) Conclusions reached; and

(d) The bases for those conclusions.

2. The Tribe shall submit, with the report, a copy of the eligibility determination

made under Subsection D of this Section.

3. If a license is not issued to an applicant, the Tribe:

(a) Shall notify the National Indian Gaming Commission; and

(b) May forward copies of its eligibility determination and investigative

report (if any) to the National Indian Gaming Commission for

inclusion in the Indian Gaming Individuals Records System.

4. With respect to key employees and primary management officials, the Tribe

shall retain applications for employment and reports (if any) of background investigations for

inspection by the Chairman of the National Indian Gaming Commission or his or her designee

for no less than three (3) years from the date of termination or denial of employment.

G. Granting a Gaming License

1. If, within a thirty (30) day period after the National Indian Gaming

Commission receives a report, the National Indian Gaming Commission fails to respond or

notifies the Tribe that it has no objection to the issuance of a license pursuant to a license

application filed by a key employee or a primary management official or for whom the Tribe

has provided an application and investigative report to the National Indian Gaming Commission,

the Tribe may issue a license to such applicant.

2. The Tribe shall respond to a request for additional information from the

Chairman of the National Indian Gaming Commission concerning a key employee or a primary

management official who is the subject of a report. Such a request shall suspend the thirty (30)

day period under Subsection G (1) of this Section until the Chairman of the National Indian

Gaming Commission receives the additional information.

3. If, within the thirty (30) day period described above, the National Indian

Gaming Commission provides the Tribe with a statement itemizing its objection(s) to the

issuance of a license to a key employee or to a primary management official for whom the Tribe

has provided an application and investigative report to the National Indian Gaming Commission,

the Tribe shall reconsider the application, taking into account the objection(s) itemized by the

National Indian Gaming Commission. The Tribe shall make the final decision whether to issue

a license to such applicant.

7
H. License Suspension

1. If, after the issuance of a gaming license, the Tribe receives from the National

Indian Gaming Commission reliable information indicating that a key employee or a primary

management official is not eligible for employment under Subsection D above, the Tribe shall

suspend such license and shall notify in writing the licensee of the suspension and the proposed

revocation.

2. The Tribe shall notify the licensee of a time and a place for a hearing on the

proposed revocation of a license.

3. After a revocation hearing, the Tribe shall decide whether to revoke or to

reinstate a gaming license. The Tribe shall notify the National Indian Gaming Commission of

its decision.

Vifi. Licensing of Gaming Places. Facilities and Locations

A separate license shall be required for each place, facility, or location on Indian lands

where Class II and/or Class III gaming is to be conducted under this Ordinance.

IX. Creation of Tribal Gaming Commission

A. There is hereby created the Redwood Valley Indian Gaming Commission (Tribal

Gaming Commission), which shall consist of five persons who would themselves qualify for

licensing under this Ordinance.

B. The members of the Tribal Gaming Commission shall be appointed by the Tribal

Council, and shall not be removed during their terms of office except for misconduct, neglect

of duties or other acts that would render such persons unqualified of duties or other acts that

would render such persons unqualified for licensure hereunder. An affirmative vote of at least

five members of the Tribal Council, taken in an open meeting after a duly noticed hearing at

which the member charged with misconduct shall have the right to hear and present evidence

concerning his/her removal, shall be required to remove a member of the Commission. At the

request of the member whose removal is at issue, the hearing may be held in executive session.

The Tribal Council also may elect to receive in executive session any evidence public disclosure

of which might compromise any on-going law enforcement investigation.

C. There shall be a Chairperson of the Tribal Gaming Commission, who shall be

appointed for a term of two years. The remaining members of the Commission shall be

appointed for terms of two years. The Tribal Council shall determine and authorize the

compensation to be paid to members of the Tribal Gaming Commission based upon a

determination of time required to be expended upon Commission duties and the qualifications

of the appointed Commissioners.

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D. The Tribal Gaming Commission shall be authorized and hereby is directed to

promulgate, subject to review and approval by the Tribal Council, detailed and comprehensive

regulations for the implementation and enforcement of the Ordinance. Said regulations shall

describe and establish the rules for each specific Class II and Class III gaming activity to be

authorized to be conducted on Tribal lands, and no form of such gaming may be conducted on

Tribal lands without prior approval by the Tribal Gaming Commission.

E. The Tribal Gaming Commission, independent of the Tribal Council, shall have full

authority to monitor compliance with this Ordinance and its Regulations, and to investigate and

act to prevent any violation(s) thereof.

F. Subject to the approval of the Tribal Council and the appropriation of funds therefor,

the Tribal Gaming Commission shall be authorized to employ such staff as reasonably may be

required to fulfill its responsibilities under this Ordinance. Compensation of Commission

employees shall be limited to that which is comparable to compensation paid to persons

performing similar duties in other governmental gaming regulatory agencies.

G. Subject to the approval of the Tribal Council, the Tribal Gaming Commission hereby

is authorized to establish and impose upon gaming facilities, permittees, applicants and licensees

such application, permit and license fees as may be necessary to fully reimburse the Tribe for

its actual costs of operating the Tribal Gaming Commission, enforcing this Ordinance and Tribal

Gaming Commission regulations, processing of licensing and permit applications, and otherwise

fulfilling its regulatory responsibilities under IGRA. All such fees shall be collected by the

Tribal Gaming Commission and hereby are continuously appropriated solely for the purposes

enumerated in the Subsection.

H. Failure to timely pay any gaming-related fee imposed by the Tribal Council or the

Tribal Gaming Commission, or to comply with any Commission regulation or order, or any

other violation of this Ordinance or the terms of any Class III Gaming Compact authorizing and

regulating gaming on Tribal lands, shall be grounds for suspension or revocation of any license

or permit issued pursuant to this Ordinance, exclusion of any non-member of the Tribe from

Tribal lands, and imposition of such other sanctions as the Tribal Gaming Commission may

deem appropriate.

I. Any person or entity subject to any sanction or penalty by the Tribal Gaming

Commission shall have the right to appeal such sanction or penalty to the Tribal Council in

accordance with such rules and regulations as may be promulgated by the Tribal Council for that

purpose. The decision of the Tribal Council on any appeal shall be final and not otherwise

reviewable.

X. Repeal

To the extent that they are inconsistent with this Ordinance, all prior gaming ordinances

are hereby repealed.

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XI. Effective Date

This Ordinance shall take effect immediately upon its approval by the Chairman of the

National Indian Gaming Commission.

CERTWICATION

We, the undersigned duly elected officials of the Redwood Valley Rancheria, do hereby

certify that the foregoing Ordinance was adopted on March 19, 1995, at a duly called meeting

of the Tribal Council of the Redwood Valley Rancheria with a quorum present by a vote of

for, against, abstaining and ____

absent.

REDWOOD VALLEY RANCHERIA

Gayle Zepeda, Chairperson

10
REDWOOD VALLEY RANCHERIA OF POMO INDIANS OF CALIFORNIA

MENDOCINO COUNTY, CALIFORNIA

TRIBAL CODE OF GAMING REGULATIONS

APRIL 7, 1995

RESOLUTION NO. 95-4-1
REDWOOD VALLEY RANCHERIA OF POMO INDIANS OF CALIFORNIA

MENDOCINO COUNTY, CALIFORNIA

TRIBAL CODE OF GAMING REGULATIONS

TABLE OF CONTENTS:

I. Definitions 1

II. Administration and Enforcement 5

III. Licensing of Games 12

IV. Management Contracts 15

V. Auditing and Internal Control 18

VI. Authorization of Gaming 20

VII. Exclusion or Ejection of Individuals 21

VIII. Cheating 21

IX. National Indian Gaming Commission and Tribal/State Compacts 22

X. Miscellaneous 23
REDWOOD VALLEY RANCHERIA OF POMO INDIANS OF CALIFORNIA

MENDOCINO COUNTY, CALIFORNIA

TRIBAL CODE OF GAMING REGULATIONS

April 7, 1995

RESOLUTION NO. 95-4-1

This Tribal Code of Gaming Regulations is promulgated pursuant to authority granted

the Gaming Commission pursuant to Section IX of Ordinance No. 7, enacted March 19, 1995,

regulating Tribal Gaming on Tribal lands.

1. DEFIMTIONS

Section 1.01 - Definitions

Unless a different meaning is clearly indicated, the terms used in this Code shall have the same

meaning as defined in the Indian Gaming Regulatory Act, Public Law 100-497, 25 U.S.C.

Section 2710, et seq (the Act).

Section 1.02 - Calendar Year

The period beginning January 1 at 12:00:01 and ending the immediately following December

31 at 12:00 midnight.

Section 1.03 - Chairman

The Chairman of the Redwood Valley Rancheria of Porno Indians of California (hereinafter

Redwood Valley Rancheria) Gaming Commission.

Section 1.04 - Class I Gaming

Playing of social games solely for prizes of minimal value or traditional forms of Indian Gaming

engaged in by individuals as part of or in connection with] Tribal ceremonies or celebrations.

Section 1.05 - Class H Gaming

Subject to the limitations of (c), below, Class II Gaming includes the playing or operation of:

(a) The game of chance commonly known as bingo whether or not electronic,

computer or other technologic aids are used in connection therewith]:

(i) Which is played for prizes, including monetary prizes, with cards bearing

numbers or other designations;

(ii) In which the holder of the card covers such numbers or designations when

objects, similarly numbered or designated, are drawn or electronically

determined; and

(iii) In which the game is won by the first person covering a previously

designated arrangement of numbers or designations on such cards,

TRIBAL CODE OF GAMING REGULATIONS 3
including if played in the same location]: Pull Tabs, Lotto Punch

Boards, Tip Jars, Instant Bingo and other games similar to Bingo; OR

(b) Card games that are:

(i) Explicitly authorized by laws of the State of California; or

(ii) Are not explicitly prohibited by the laws of the State of California and are

played at any location in the State of California, but only such card games.

(c) The term Class Ii Gaming does not include:

(i) Any banking card games, including Baccarat, Chemin de Fer, Blackjack

(21); or

(ii) Electronic or electromechanical facsimiles of any game of chance or slot

machines of any kind.

Section 1.06 - Class ifi Gaming

Class HI Gaming includes all forms of gambling that are not Class I or Class II Gaming.

Section 1.07 - Commission

The Redwood Valley Rancheria Gaming Commission.

Section 1.08 - Commissioner or Commission Member

One of the members of the Redwood Valley Rancheria Gaming Commission.

Section 1.09 - Tribal Council

The Redwood Valley Rancheria Tribal Council or General Council.

Section 110 - Director

The Director of the Redwood Valley Rancheria Gaming Commission, appointed by the Tribal

Council as the chief administrator of Redwood Valley Rancheria Gaming.

Section 1.11 -

Gaming or Gaming Activity

The dealing in, operation of, or maintenance of any game played with: Cards, dice, equipment

of any mechanical, electromechanical or electronic device or machine for money, property,

checks, credit or any representative of value, including without limiting the generality of the

foregoing] Faro, Monte, Roulette, Keno, Bingo Fan-Tan, Bingo, Twenty-one Blackjack],

Seven-and-a-Half, Big Injun, Klondike, Craps, Poker, Chuck-a-Luck, Chinese Chuck-a-Luck

Dai-shu], Wheel of Fortune, Chem de Fer, Baccarat, Pai-Gow, Beat the Banker, Panguingue,

Slot Machines, Video Poker Machines, Pull-tabs, any banking or percentage game, or any other

game or device approved by the Commission. Does not include games played with cards in

private homes or residences in which no Person makes or charges money for operating the

TRIBAL CODE OF GAMING REGULATIONS 4
game, except as a player.

Section 1.12 -

Gaming Equipment or Gaming Device

Any equipment or mechanical, electromechanical or electronic contrivance, component or

machine used remotely or directly in connection with gaming or any game which affects the

result of a wager by determining win or loss. The term includes a system for processing

information that may alter the normal criteria of random selection, which affects the operation

of any game, or which determines the outcome of a game.

Section 1.13 -

Gaming Facility or Gaming Premises

Any premises where Gaming other than Class I Gaming] is operated or conducted, including

all buildings, improvements, equipment and facilities used or maintained in connection with such

Gaming.

Section 1.14 - Gross Revenue

The total monetary value that would be due to any operator of a Gaming Activity for chances

taken, for all table fees for card playing, and all other fees charged for participation or

admittance, as evidenced by required records. The value shall be stated in U.S. currency,

before any deductions or allowances for prizes, pay-out of winnings, cost of operations, taxes,

labor expenses, equipment or materials used, or any other expenses. In the absence of records,

Gross Revenue shall be the maximum that would be due to an operator from that particular

activity if operated at maximum capacity.

Section 1.15 - Key Employee

All employees who have authority over receipt or distribution of revenues from the Gaming

Activity, includes but not limited to]: cashiers, dealers, pit bosses, floor managers, supervisors

and any other individual who has the authority to sign checks or handle cash or currency.

Section 1.16 - Licensee

Any Person who has been issued a valid and current Gaming license pursuant to the provisions

of this Code.

Section 1.17 - Net Revenues

Gross Revenues of a Gaming Activity less amounts paid out as or paid for prizes, winning and

total Operating Expenses, but excluding Management Fees.

Section 1.18 -

Management Contract or Contract

Any contract, agreement or other document establishing a relationship between the Tribal

government and any Person in which such a Person has managerial responsibilities for a Tribalowned Class II or III Gaming Activity. The term Management Contract shall include all

collateral agreements.

Section 1.19 -

Management Fee

Any monies paid from Gaming revenue to any Person contracted and/or licensed to operate a

TRIBAL CODE OF GAMING REGULATIONS 5
Gaming Activity. Such terms shall not include monies paid to the owner of a Gaming Activity

licensed pursuant to Section 4.03 of this Code.

Section 1.20 -

Operating Expenses

Any expense incurred in the daily operation of a Gaming Activity that is specifically designated

as an operating expense in the Management Contract; provided in the case of an establishment

licensed by the Tribe pursuant to Chapter III of this Code}, the term shall also mean any

expense specifically designated as an operating expense in any regulation adopted by the

Commission.

Section 1.21 - Patron

Any person or group of persons who participates as players in games as defined in this Code on

tribal lands, or who are physically present at Gaming Facilities.

Section 1.22 - Person

Any association, partnership, corporation, firm, trust or other form of business association as

well as a natural person.

Section 1.23 -

Primary Management Officials

All officials of the Gaming Activity who exercise authority over daily operation of the Gaming;

covering the authority to hire and fire employees, supervise employees or establish operational

policy for the Gaming Activity. Such officials shall include but not be limited to] all owners,

officers, shareholders and partners of the management contractor, if any.

Section 1.24 -

Regulations

The regulations of the Commission under this Code.

Section 1.25 - Reservation

1. The area of approximately acres lying within the survey boundaries of the

Redwood Valley Rancheria in Mendocino County, California.

2. Any additional lands to be acquired by the Redwood Valley Rancheria or individual

members of the Tribe, to be put in trust pursuant to Public Law 101-42, but not yet

surveyed; and

3. Any other land designated as reservation land for the Redwood Valley Rancheria by

the Secretary of the Department of Interior.

Section 1.26 - Tribal/State Compact or Compact

A written document, either negotiated and agreed to by the Redwood Valley Rancheria and an

official or agency of the State of California or prescribed by the Secretary pursuant to 25 U.S.C.

2710(7)(B)(vii), governing the conduct of Class III Gaming Activity on the Reservation or other

tribal lands.

TRIBAL CODE OF GAMING REGULATIONS 6
Section 1.27 - Tribe

The Redwood Valley Rancheria of Porno Indians of California, a federally recognized Tribe.

Section 1.28 - Words and Terms

In construing the provisions of this Code, except when otherwise plainly declared or clearly

apparent from the context:

(a) Words in the present tense shall include the future tense;

(b) Words in masculine, feminine and neuter genders shall include all genders; and

(c) Words in the singular shall include the plural, and in the plural shall include the

singular.

II. ADMINISTRATION AND ENFORCEMENT

Section 2.01 - Unauthorized Gaming

Any Indian who commits any act of unauthorized Gaming on the Reservation or on any Tribal

lands shall be guilty of a crime and shall be prosecuted in Redwood Valley Rancheria Tribal

Court. Prosecution for such a crime in Redwood Valley Rancheria Tribal Court is not meant

to be exclusive. A finding of guilt or innocence shall not deprive the Federal Government of

criminal jurisdiction.

Section 2.02 -

Ownership: Revenues to Benefit the Tribe

The Tribe shall have sole proprietary interest in and the sole responsibility for the conduct of

all Gaming Activity conducted on tribal lands. Such provision does not limit the Tribes ability

to enter into a Management Contract wherein Net Revenues are divided between the Tribe and

other parties to the Contract. A Gaming Activity shall be operated so as to produce the

maximum amount of Net Revenues to the Tribe. Net Revenues will go entirely to the Tribe and

will be used solely for the following purposes:

(a) To fund Tribal government operation or programs;

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

(c) To promote Tribal economic development;

(d) To donate to charitable organizations; or

(e) To help fund operations of local government agencies.

Net Revenues from the Gaming Activity may be used to make per capita payments to members

of the Tribe upon the preparation of a plan to allocate revenues to the above uses and approval

of this plan by the Secretary of the Interior.

TRIBAL CODE OF GAMING REGULATIONS 7
Section 2.03 - Establishment of Commission

The Redwood Valley Indian Gaming Commission is hereby established. The Commission shall

consist of five (5) Members appointed by a majority vote of the Tribal Council. The

Commission shall consist of at least one individual with an accounting background, one with a

legal or law enforcement background and one with at least five (5) years of business experience.

At lease three (3) Members of the Commission shall be Redwood Valley Rancheria members.

In order to establish an annually staggered Commission appointment schedule similar to that of

the Tribal Council, the first two (2) Members appointed to the Commission, one of whom shall

be appointed Chairperson, shall serve two (2) years terms, the next three (3) Members shall

serve a one (1) year term for the initial appointment terms only. Thereafter all successive terms

of appointment shall run for two (2) years. Vacancies shall be filled within 30 days by the

Tribal Council.

Section 2.04 - Restrictions on Commissioners

Commissioners may hold other Tribal positions and engage in business, provided that they shall

~ engage in any business which is subject to the provisions of this Gaming Code.

Commissioners may not gamble in the Gaming Activity nor have any personal financial interest

in any gambling by any Person. A Commissioner shall immediately resign from the

Commission upon the Commissioners conviction in a Federal or State Court of competent

jurisdiction for any felony or for any misdemeanor related to illegal gambling or bribery or upon

conviction in the Tribal Court of any charge that the Tribal Council finds relates to the

Commissioners honesty or ability to fulfill his duties. If a Commissioner is convicted of

violating any part of this Code, he shall immediately resign from the Commission.

Section 2.05 -

Compensation of Commissioners

Commissioners shall be compensated at the rate to be established annually by the Commission

and approved by the Tribal Council. Commissioners shall submit expense receipts to the Tribal

Council and shall be reimbursed for actual expenses incurred on Commission business, including

necessary travel expenses.

Section 2.06 - Selection of Chairperson

Except for the first Chairperson who shall be appointed by the Tribal Council, the Commission

shall select annually from its membership a chairperson, who shall have the power to convene

special meetings of the Commission upon 48 hours prior written notice to Members of the

Commission.

Section 2.07 -

Meetings Open to the Public

General meetings of the Commission may be open to the public. All meetings shall be governed

by Roberts Rules of Order.

Section 208 - Ouorum Required

A quorum shall consist of three members of the Commission. A quorum shall be required for

any vote or decision by the Commission. All decisions shall be made by a majority vote, unless

indicated otherwise in this Code.

TRIBAL CODE OF GAMING REGULATIONS 8
Section 2.09 - Monthly Reports

The Commission shall make monthly reports to the Tribal Council within 30 days after the close

of the month for which the information is being required. The reports shall include a full and

complete statement of Gaming revenues paid to the Tribe, expenses and all other financial

transactions of the Commission and a summary of all licensing and enforcement actions.

Section 2.10 - Powers

The Commission shall exercise all powers necessary to effectuate the purposes of the Gaming

Ordinance and of this Code. The Commission may exercise any proper power and authority

necessary to perform in this Chapter. The Commission shall meet with the Director not less

than once each month to make recommendations and set policy, to approve or reject reports of

the Director and transact other business that may be properly brought before it.

Section 2.11 - Prior Notice of Actions

In adopting, amending and repealing regulations, the Commission shall give prior notice of the

proposed action to all Licensees and other Persons whom the Commission or Director has reason

to believe have a legitimate interest in such proposed action. Said notice shall inform such

Persons as to the general nature of the proposed action and advise them as to the manner in

which comments on said proposed action shall be received by the Commission. In emergencies,

the Commission may summarily adopt, amend or repeal any regulation if, at the time, the

Commission determines such action is necessary for the immediate preservation of the public

peace, health, safety, morals, good order or general welfare, together with a statement of facts

constituting the emergency; provided, however that the Commission shall schedule such

emergency action for a regular hearing within 60 days.

Section 2.12 -

Request for Commission Action

Any Person who is determined by the Commission or Director to be a real party in interest may

file a petition in a manner and form approved by the Commission requesting the adoption,

amendment or repeal of a regulation. Upon receipt of the petition, the Commission shall within

30 days deny the request in writing or schedule the matter for action pursuant to this Code.

Section 2.13 -

Appointment of Director

The Tribal Council upon recommendation of the Commission] shall appoint a Director who

shall be responsible for the day-to-day management of the affairs of the Commission as well as

overseeing the establishment and operation of all Gaming Operations. A detailed background

investigation shall have been conducted on the Director before his appointment and the

Commission shall maintain oversight of the Director on an ongoing basis. The Director must

have two (2) years experience managing a high stakes Reno/Las Vegas Casino type gaming.

No one convicted of a felony of any kind or a misdemeanor related to illegal gambling or

bribery can serve as Director. the Director shall not have any personal interests in any Gaming

Activity. The Director may not gamble in the Gaming Activity, nor have any personal financial

interest in any gambling by any Patron.

TRIBAL CODE OF GAMING REGULATIONS 9
Section 2.14 - Directors Contract

The Director shall be hired on a contract for a period of at lease one (1) year. The terms of the

contract will be negotiated with the Commission and approved by the Tribal Council. The

Directors compensation shall be part of the negotiations.

Section 2.15 - Termination of the Director

The Director shall be terminated immediately and without the necessity of a vote of the Tribal

Council upon the Directors conviction in a Tribal, Federal or State Court of competent

jurisdiction for any felony or for any misdemeanor related to illegal gambling or bribery or upon

conviction in the Tribal Court of any charge that the Tribal Council finds relates to the

Directors honesty or ability to fulfill his duties. If the Director is convicted of violating any

part of the Gaming Ordinance or of this Code, he shall be immediately terminated.

Section 2.16 - Duties of the Director

The Director shall subject to the approval of the Commission] perform all duties, exercise all

powers, assume and discharge all responsibilities and carry out and affect all purposes of the

Gaming Ordinance and of this Code relating to the establishment of all Gaming Activity. In all

decisions, the Director shall act to promote and ensure the integrity, security, honesty and

fairness of the operation and administration of all Gaming Activity. The Directors duties shall

include but not be limited to] the following:

(a) Negotiating contracts for payments by the Tribe for the provision of security and

other professional services. Such contracts must be approved by the Commission

and the Tribal Council and shall not constitute a waiver of criminal jurisdiction

by the Tribe.

(b) Ensuring that all gaming fees of all Gaming Activities are sent to the National

Indian Gaming Commission on a timely basis.

(c) Corresponding with the National Indian Gaming Commission and doing whatever

is necessary to be in compliance with the rules and regulations of that agency.

(d) Assuring that all Gaming Activity is conducted in a manner which adequately

protects the environment and the public health and safety;

(e) Establishing an adequate system to include finger print clearances with the

California Department of Justice or with the Naitonal Indian Gaming Commission

which ensures that background investigations are conducted on all Primary

Management Officials and Key Employees of any Gaming Activity and that

oversight of such officials and their management is conducted on an ongoing

basis. The Director will recommend to the Commission having final authority]

regarding the granting of Tribal licenses for Primary Management Officials and

Key Employees. The Director shall immediately notify the National Gaming

Commission of the issuance of such licenses. The Director will review all

TRIBAL CODE OF GAMING REGULATIONS 10
applications and background investigations to ensure that no Person shall be

eligible for employment in or with any part of the Gaming Activity if that

Persons prior activities, criminal record if any] or reputation, habits or

associations pose a threat to the public interest or to the effective regulation of

Gaming, or create or enhance the dangers of unsuitable, unfair or illegal

practices, methods and activities in to conduct the Gaming. The Director shall

notify the National Indian Gaming Commission of the results of such background

checks before the issuance of such licenses;

(f) Hiring, pursuant to the approval of the Commission, such professional, clerical,

technical and administrative personnel as may be necessary to carry out the

provisions of the Gaming Ordinance and this Code;

(g) Reviewing all records, documents and anything else necessary and pertinent to

enforcement of any provisions of the Gaming Ordinance and this Code; and

(h) Recommending to the Commission whether sanctions should be imposed on any

Person subject to the jurisdiction of the Gaming Ordinance and this Code.

Section 2.17 -

Right of Inspection

The Commission and the Director, and their agents, inspectors and employees, have the

authority to:

(a) Inspect and examine all Gaming Facilities and premises where gambling devices

or equipment are manufactured, sold or distributed;

(b) Inspect all equipment and supplies in, upon or about a Gaming Facility, or inspect

any equipment or supplies, wherever located, which may have or have been used

in the Gaming Facility;

(c) Summarily seize and remove from a Gaming Facility or wherever located] and

impound such equipment or supplies for the purpose of examination, inspection,

evidence or forfeiture;

(d) Demand access to and inspect, examine and audit all papers, books and records

of applicants and licenses respecting any income produced by any Gaming

Activity and require verification of income and all other matters affecting the

enforcement of the policy of or any of the provisions of the Gaming Ordinance

and this Code;

(e) Seize and impound any Patrons winnings which the Commission has reason to

believe may have been won or obtained in violation of the Gaming Ordinance and

this Code pending a civil forfeiture of earnings on such seizure;

TRIBAL CODE OF GAMING REGULATIONS 11
(f) For the purpose of administration and enforcement of the Gaming Ordinance and

this Code the Commission, Director and their investigative personnel may, if

deemed necessary by the Tribal Council, have the powers of the peace officer of

the Redwood Valley Rancheria for purposes of enforcement of the Gaming

Ordinance and this Code; and

(g) The Commission and the Director shall have full power and authority to issue

subpoenas and compel the attendance of witnesses for hearings at any place within

the Reservation, to administer oaths and to require testimony under oath. Any

process or notice may be served in the manner provided for service of process

and notices in civil actions. The Commission and the Director may pay such

transportation and other expenses of witnesses as it may deem reasonable and

proper.

Section 2.18 -

Confidentiality of Information

The Commission and Director may refuse to reveal, in any court proceeding, the identity of any

informant or the information obtained from the informant, or both the identity and the

information.

Section 2.19 - Powers of Delegation: Budgeting Matters: Record-Keeping

The Commission may organize itself into a functional divisions as it may deem necessary and

may from time to time alter such plan of organization as it may deem expedient. The

Commission shall establish its own budget for operations including a budget for the Director and

acquire such furnishings, equipment, supplies, stationary, books, motor vehicles and other things

as it may deem necessary or desirable in carrying out its functions and incur such other

expenses, within the limit of funds available to it, as it may deem necessary. Within the limits

of a Tribal Council approved budget, the Commission shall employ and fix the salaries of or

contract for services of such professional, technical and operational personnel and consultants

as the execution of its duties and the operation of the Director and Commission may require.

At the Tribal Councils discretion, said budget may be reviewed and modified by the Tribal

Council every six (6) months. Upon the end of the budget year any surplus which exists shall

be refunded to the Tribal Council at their discretion. The Commission and Director shall each

keep and maintain a file of all applications for licenses under this chapter, together with a record

of all action taken with respect to such applications. The Commission and Director shall keep

and maintain such other files and records as they may deem desirable and all such records may

be open to public inspection as they may deem appropriate; provided, that the annual

Commission budget shall be made available to any Tribal member upon demand.

Section 2.20 -

Processing Employee and Patron Complaints

The Commission may receive any complaint from an employee of any Gaming Activity or any

member of the public whO is or claims to be adversely affected by an act or ommission of the

Gaming Activity which is asserted to violate the Ordinance, the Compact, or this Code adopted

pursuant to the Ordinance, and may upon consideration of such complaint order such remedial

action as it deems appropriate to bring the Gaming Activity into compliance with such

TRIBAL CODE OF GAMING REGULATIONS 12
provisions. The Commission may for this purpose, in its sole discretion, conduct a hearing and

receive evidence with regard to such complaint if it deems an evidentiary proceeding useful in

the resolution of such complaint.

Section 2.21 - Violations of the Gaming Ordinance - Punishment

Any violation of this Code shall be punished by a fine of no more than $5,000 for each separate

count or violation, or one (1) year in jail or both. Each day of violation shall constitute a

separate count or violation. A violator may also be required to pay court costs, storage fees and

auction or sales fees. All property used or which may be used in activities in each and every

separate violation of this Code may become the property of the Tribe. Persons may be

prohibited from trespassing on premises licensed under this Code, licenses may be suspended,

revoked or limited, and establishments may be forcibly closed. All such action shall be taken

at the discretion of the Commission, subject to the right of appeal to Tribal Court. Winnings

found to have been received in violation of this Code are forfeited and become the property of

the Tribe.

Section 2.22 - Limitations Period

No fine shall be assessed, nor any action taken for any violation under the preceding Section

unless a charge is filed in proper form with the Commission or Tribal Court within two (2) years

of the commission of the offense.

Section 2.23 -

Special Agents

The Commission may authorize special agents to perform services reasonably necessary to assure

compliance with the provisions of the Gaming Ordinance and this Code. Said special services

of enforcement and surveillance shall be under the authorization and direction of the Director,

unless otherwise determined by the Commission. This section shall in no way be deemed to

limit the normal law enforcement functions of these or other Tribal law enforcement officers not

so authorized.

Section 2.24 -

Independence of Commission

The Director, Commissioners, members of the Tribal Council and their immediate families shall

receive no personal compensation, gift, reimbursement or payment of any kind from any Person

doing or wishing to do business with the Tribe relating to Gaming; nor with any Person wishing

to obtain an unfair advantage in any authorized wager on Gaming. Any Person suspected of

violating this provision shall be prosecuted to the fullest extent possible under Tribal Law for

accepting a bribe, and any property received in violation of this provision shall be forfeited to

the Tribe. The Commission shall cooperate to the fullest extent possible with any federal or

state law enforcement agency to pursue prosecution under applicable federal or state law.

ifi. LICENSING OF GAMES

Section 3.01 - Mandatory License

Any Person seeking to conduct, operate or manage any Gaming Activity on the Reservation shall

TRIBAL CODE OF GAMING REGULATIONS 13
apply for and receive all the required licenses from the Commission prior to engaging in such

Gaming Activities. Engaging in such Gaming Activities without first obtaining the required

licenses shall be deemed a violation of this Code and shall be punishable in accordance with

Section 2.20.

Section 3.02 - Authorization of Class II Gaming Activity: Net Revenue Allocation; Audits:

Contracts

(a) A separate license issued by the Commission shall be required for each place,

facility or location on tribal lands within the Tribes jurisdiction at which any

Class II Gaming Activity is conducted.

(b) The Commission may license and regulate a Tribally-Owned Class II Gaming

Activity if:

(i) Such Gaming Activity is located on Tribal lands and the State of

California permits such Gaming for any purpose by any Person,

organization or entity and such Gaming is not otherwise specifically

prohibited on Indian lands by federal laws]; and

(ii) The Tribe will have the sole proprietary interest and responsibility for the

conduct of such Gaming Activity; and

(iii) Net Revenue from such Gaming Activity is used in accordance with

Section 2.02 of this Code; and

(iv) Such Gaming activity is subject to annual outside audits, which may be

encompassed within existing independent Tribal audit systems and

provided to the Tribal Council; and

(v) All contracts for supplies, services or concessions for an aggregate amount

in excess of $25,000 annually relating to such Gaming Activity are also

subject to independent audits; and

(vi) The construction and maintenance of the Gaming Facility and the

operation of that Facility is conducted in a manner which adequately

protects the environment and the public health and safety; and

(vii) All Primary Management Officials and Key Employees of the Class II

Gaming Activity have successfully passed a background investigation

which is approved by the Tribe and the National Indian Gaming

Commission.

TRIBAL CODE OF GAMING REGULATIONS 14
Section 3.03 - Issuance of Tribal Gaming Licenses -

Objections

The Commission shall consult with appropriate law enforcement officials concerning any Gaming

licenses it may issue. If, after issuance of a Gaming license by the Commission, reliable

information is received that a Primary Management Official or Key Employee does not meet the

standard established under Section 3.08 of this Code, the Commission shall suspend such license

and, after notice and a hearing, may revoke such license.

Section 3.04 - License & Regulation of Class ifi gaming Activities - Tribal/State Compact

Required

The Commission may license and regulate Class III Gaming Activity if:

(a) Such Gaming meets the requirements of Section 3.02; and

(b) Such Gaming is conducted in conformance with the terms and conditions of a

valid Tribal/State Compact entered into by the Tribe and the State of California.

Section 3.05 - Non-transferability of Licenses

Any license issued pursuant to the provisions of the Gaming Ordinance and this Code is valid

only for the Person shown on the face thereof, and only at the place of business shown on the

face thereof. It is not assignable or otherwise transferable to any other Person or for any other

location without approval of the Director and Commission.

Section 3.06 -

Granting of License -Majority Vote

To approve the initial issuance of any license pursuant to this Code, a quorum of the

Commission must be present with a majority vote of approval by said quorum required. A

license will not be issued to a Person whose license has been previously revoked, or to whom

the issuance or renewal of a license has been denied, except with the unanimous approval of the

Commission Members.

Section 3.07 -

Application Fee

The Commission shall set a fee for applications, background investigations and licenses. All

money orders or checks for such fees shall be made payable to the Redwood Valley Rancheria

and delivered to the Tribes accounting office.

Section 3.08 -

Background Investigation

No license shall be granted to any Person who has been determined to be a Person whose prior

activities, criminal record if any] or reputation, habits and associations pose a threat to the

public interest or to the effective regulation and control of Gaming, or create or enhance the

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

Gaming or the carrying on of the business and financial matters incidental thereto.

Section 3.09 - Failure of Applicant to Disclose Material Information

An applicant for licensing shall make true and full disclosure of all information to the Director

and Commission as necessary or appropriate in the public interest or as required in order to

TRIBAL CODE OF GAMING REGULATIONS 15
carry out the policies of the Gaming Ordinance and this Code relating to licensing and control

of the Gaming industry. It is the duty of the applicant to disclose all information material to

whether his involvement with Gaming would jeopardize or compromise the Tribal interest,

whether or not the applicant has been specifically requested to provide that information. It shall

constitute a violation of the Gaming Ordinance to fail to disclose, to mislead or to mis-state any

material information to the Director of the Commission, or to any Licensees employer.

Section 3.10 -

Temporary Employment License

The Commission may issue a temporary employment license to any Person applying for a license

to work in a licensed Gaming Activity which shall be valid pending the background investigation

of the applicant. In no event shall a temporary license be valid for greater than 180 days.

Section 3.11 - Parameters of Licenses

Violations of any provision of the Gaming Ordinance or of any of the regulations in this Code

by a Licensee, his agent or employee shall be deemed contrary to the public health, safety,

morals, good order and general welfare of the Tribe and the inhabitants of the Redwood Valley

Rancheria and shall be deemed grounds for refusing to grant or renew a license, suspension or

revocation of a license or shall constitute grounds for the filing of charges by the Commission

or Director. Acceptance of a Gaming license or renewal thereof, or condition imposed thereof

by a Licensee, constitutes an agreement on the part of the Licensee to be bound by all the

regulations and conditions of the Director or Commission and by the provisions of the Gaming

Ordinance as the same are now, or may hereafter be amended or promulgated, and to cooperate

fully with the Director and Commission. It is the responsibility of the Licensee to keep himself

informed of the contents of the Gaming Ordinance and this Code and all such regulations,

amendments, provisions and conditions; ignorance thereof will not excuse violations.

Section 3.12 -

Voting on Licensingz Review Hearings

Any Commission vote in approving, disapproving, revoking, suspending, limiting or

conditioning a license shall be by secret ballot only; provided that in an emergency a secret

phone vote may be polled. Should an applicant disagree with the determination of the

Commission, the Commission shall hold a hearing to review its decision within three (3)

working days from the date the applicant files his disagreement with the Commission. At the

hearing, the burden shall be on the applicant to show cause why the Commissions determination

was incorrect.

Section 3.13 - Commission Findings Following Review Hearing

Following such review hearing, the Commission shall within three (3) days] reach a

determination concerning:

(a) The accuracy of the preliminary certifications of facts; and

(b) Whether the license in question should be granted, continued, suspended,

revoked, conditioned or limited; and

TRIBAL CODE OF GAMING REGULATIONS 16
(c) Whether or not any other action recommended to the Commission including but

not limited to] forfeitures, should be taken.

Section 3.14 - Notification of Commission Decision

Within three (3) working days following a determination, the Commission shall inform the

subject in writing of that determination.

Section 3.15 -

Right to Appeal

The subject shall have a right to appeal the determination of the Commission to the Tribal Court.

Such appeal must be filed with the Tribal Court in written form on or before the tenth (10th) day

following receipt of the written determination of the Commission. A determination of such

appeal by the Tribal Court shall be final and no further action may be had. In any appropriate

case which has been referred to Tribal Court for final action, the Tribal Court shall review the

determination of the Commission. Tribal Court review shall be limited to a determination of

whether there exists substantial evidence to support the Commissions determination. The

Courts action shall be final and no further appeals may be made.

IV. MANAGEMENT CONTRACTS

Section 4.01 - Commission Approval Required

(a) Any Management Contract entered into by the Tribe for the operation and

management of Class II and Class III Gaming Activity must be submitted to the

Commission for approval. Before approving such Contract, the Commission shall

require and obtain the following information:

(i) The name, address and other additional pertinent background information

on each Person including, in cases involving entities, each individual,

partner, officer, shareholder, and director comprising such entity] having

direct financial interest in, or management responsibility for, such

Contract; and in the case of a corporation] those individuals who service

on the board of directors of such corporation and each of its stockholders

who, hold directly or indirectly] 10% or more of its issued and

outstanding stock; and

(ii) A complete financial statement of each Person listed pursuant to

subsection (i) above.

(b) Any Person listed pursuant to subsection (a)(i) above shall be required to respond

to such written or oral questions that the Commission may propound in

accordance with its responsibilities under this Chapter.

(c) In making the determination to approve or disapprove Management Contracts,

when the Tribe has received competing bids or proposals involving Gaming

TRIBAL CODE OF GAMING REGULATIONS 17
wherein the bids or proposals will provide substantially the same return to the

Tribe and its members, first preference will be given to Tribal member Indians

and cooperative associations of member Indians, and second preference will be

given to non-member Indians and cooperative association of non-member Indians.

Section 4.02 -

ApprovaL of Management Contracts

The Commission may approve any Management contract entered into by the Tribe pursuant to

this Chapter only if it determines that such Contract provides at least:

(a) That accounting procedures are maintained and verifiable financial reports are

prepared, by or for the Tribal Council, on a monthly basis;

(b) For access to the daily operations of the Gaming to appropriate Tribal officials

and their accountants and assistants, who shall also have a right to verify the daily

Gross Revenues and income made from any such Tribal Gaming Activity;

(c) For a minimum guaranteed payment to the Tribe that has preference over the

retirement of development and construction costs;

(d) For an agreed ceiling for the repayment of development and construction costs;

(e) For a Contract term not to exceed five (5) years, except that, upon the request of

the Tribe, the Commission may authorize a Contract term that exceeds five (5)

years but does not exceed seven (7) years if the Commission is satisfied that the

capital investment required, and the income projections, for the particular Gaming

Activity require additional time;

(f) For grounds and mechanisms for terminating such Contract, but that actual

Contract termination shall not require the approval of the Commission; and

(g) That preference will be given to Tribal members and non-member Indians in

hiring of employees for the Gaming Activity.

Section 4.03 -

Percentage-of-Net-Revenue Fees

(a) A Management Contract providing for a fee based upon a percentage of the Net

Revenues of a Tribal Gaming Activity may be approved by the Commission if

such percentage fee is reasonable in light of surrounding circumstances. Except

as.provided in this Section, such fee shall not exceed 30% of the Net Revenue.

(b) Upon request of the Tribal Council, the Commission may approve a Management

Contract providing for a fee based upon a percentage of the Net Revenues of a

Tribal Gaming Activity that exceeds 30% but not 40% of the Net Revenues if the

Commission and Tribal Council are satisfied that the capital investment required,

TRIBAL CODE OF GAMING REGULATIONS 18
and the income projections for such Tribal Gaming Activity, justify the additional

fee.

Section 404 - Contract Disapproval and Nonrenewal

The Commission shall not approve any proposed Management Contract, and shall refuse to

renew any Management Contract, if it determines:

(a) The management contractor or potential management contractor (including any

Person listed to Section 4.01(a)(i)):

(i) Is an elected member of the Tribal Council;

(ii) Has been or subsequently is convicted of any felony or Gaming offense;

(iii) Has knowingly and willfully provided a materially false statement of

information to the Commission or the Tribal Officials who negotiate such

Contracts, or has refused to respond to questions propounded pursuant to

Section 4.01(b); or

(iv) Has been determined to be a Person whose prior activities, criminal

record if any] or reputation, habits or associations pose a threat to the

public interest or to the effective regulation and control of Gaming, or

create or enhance the dangers of unsuitable, unfair or illegal practices,

methods and activities in the conduct of Gaming or the carrying on of the

business and financial arrangement incidental thereto;

(b) The management contractor or potential management contractor has or has

attempted to unduly interfere or influence for its gain or advantage any decision

or process of Tribal government relating to Gaming Activity; or

(c) The management contractor or potential management contractor (including any

Person listed to Section 4.01(a)(i)) has deliberately or substantially failed to

comply with the terms of the Management Contract, the provisions of the Gaming

Ordinance or of this Code of regulations adopted pursuant to the Gaming

Ordinance or the Indian Gaming Regulatory Act, 25 U.S.C §2701 et seq.

Section 4.05 -

Modifying or Voiding of Management Contract

The Commission, after notice and hearing, shall have the authority to require appropriate

Contract modifications or may void any Contract if it subsequently determines that any of the

provisions of the Gaming Ordinance or this Code have been violated or that grounds for

disapproval or nonrenewal of the Management Contract under Section 4.04 existed at the time

of approval or renewal or arouse thereafter.

TRIBAL CODE OF GAMING REGULATIONS 19
Section 4.06 -

Conveying Interest in Land

No Management Contract for the operation of a Gaming activity regulated by the Commission

shall transfer or convey any interest in land or other real property, unless specific applicable

statutory authority exists, and unless clearly specified in writing in said Contract.

Section 4.07 - Fee for Investigation

The Commission shall require management contractors and potential management contractors

to pay a fee as set from time to time to cover the cost of the investigation necessary to reach a

determination required in Section 4.04 or 4.05 of this Chapter.

V. AUDITING AND INTERNAL CONTROL

Section 5.01 - Minimum Procedures for Control of Internal Fiscal Affairs

The Commission, through the office of the Director, shall ensure promulgation of regulations

for the control of internal fiscal affairs of all Gaming Activities. At a minimum, those

regulations shall:

(a) Prescribe minimum procedures for safeguarding the Gaming Activities assets and

revenues, including recording of cash, evidence of indebtedness and mandatory

count procedures. Such procedures shall establish a control environment,

accounting system and control procedures that safeguard the assets of the

organization, assure that operation transactions are properly recorded, and

promote operational efficiency and encourage adherence to prescribed policies;

(b) Prescribe minimum reporting requirements to the Commission;

(c) Provide for the conducting, adoption and use of internal audits by internal

auditors and Certified Public Accountants licensed to practice public accounting

in the State of California;

(d) Formulate a uniform code of accounts and accounting classifications to assure

consistency, comparability and effective disclosure of financial information. Such

code shall require that records be maintained that reflect statistical drop amount

of cash wagered by Patrons], statistical win amount of cash won by the Gaming

Activity] and the percentage of statistical win to statistical drop, or provide

similar information for each type of game or Gaming Device;

(e) Prescribe the intervals at which such information shall be furnished;

(f) Provide for the maintenance of documentation i.e., checklists, programs, reports]

to evidence all internal work performed as it relates to the requirements of this

sections; and

(g) Provide that all financial statements and documentation referred to in subsection

TRIBAL CODE OF GAMING REGULATIONS 20
(1) be maintained on the Reservation for a minimum of five (5) years.

Section 5.02 - Conunission Oversight of Internal Fiscal Affairs

The Commission shall require audits of the financial statements of all Gaming Activities. Such

audits must:

(a) Be made by independent Certified Public Accountants holding a permit issued

by the State of California to practice public accounting;

(b) Include an opinion qualified or unqualified], or if appropriate, disclaim an

opinion on the financial statements taken as a whole in accordance with standards

of the accounting profession established by rules and regulations of the California

State Board of Accountancy and the American Institute of Certified Public

Accountants;

(c) Disclose whether the accounts, records and control procedures maintained by the

Gaming Activity are as required by the regulations promulgated by the

Commissions under Section 5.01; and

(d) Provide for a preliminary review of the internal control structure, upon adoption

of the policies and procedures by the entity, to disclose any deviation from

prescribed rules and regulations and report such findings to the Commission and

management.

Section 5.03 - Commissions Right to Conduct Audits

The Commission shall be able to retain its own appointed accountants, or to direct an accountant

employed by the Tribe, to conduct its own audits of all Gaming Activities.

Section 5.04 - Prohibition Against Embezzlement

Any delay, maneuver or action of any kind which in the opinion of the Director is effectuated

by any Licensee to unlawfully divert Gaming proceeds or other proceeds properly belonging to

the Tribe shall constitute grounds for taking disciplinary action against that Licensee. If the

Commission finds an unlawful diversion was attempted, it shall sanction the Licensee. Sanctions

may include restitution, fining, revoking, suspending, limiting or refusing to renew the license.

The Commission and/or Tribal Council may also seek prosecution of the offender under Tribal,

state, and/or federal laws.

Section 5.05 -

Non-Compliance

Failure to comply with this Chapter or the regulations promulgated hereunder shall constitute

a per se violation of these regulations.

TRIBAL CODE OF GAMING REGULATIONS 21
VI. AUTHORIZATION OF GAMING

Section 6.01 - Prohibition Against Gaming

No Person duly authorized by the Commission to conduct Gaming shall engage, conduct or

condone any game unless and until such game is approved by the Commission,, a valid license

has been issued and all fees paid by the Licensee, and regulations for rules governing such game

have been duly promulgated by the Commission.

Section 602 - Grace Period

The prohibition contained in Section 6.01 shall not apply to those games already being played

as of the date of enactment of this Code; provided that the Licensee conform to the rules

promulgated hereunder within five (5) days of such promulgation.

Section 6.03 - Authorization of Gaming

The Commission may authorize the playing of any game not prohibited by the laws of the State

of California. The Commission shall promulgate regulations for rules governing all authorized

games, including regulations governing Gaming Equipment including without limitation chips,

dice, cards and tiles]. Any provision in a Compact with the State of California providing for

notice to and comment from the State shall be complied with before any game is authorized by

the Commission.

Section 6.04 -

Approval of Gaming Equipment

The Commission shall have the discretion to review, and reject or approve, all Gaming

Equipment and other devices used in the Gaming Activity as to quality, design, integrity,

fairness, honesty and suitability.

(a) The Commission may require a prototype or sample of any model of Gaming

Equipment or other device used in the Gaming Activity to be placed in the

custody of the Director and retained by him as a control for comparison purposes.

(b) Any evidence that Gaming Equipment or other devices used in the Gaming

Operation has been tampered with or altered in any way which would affect the

integrity, fairness, honesty or suitability of the equipment or device shall be

immediately reported to the Commission.

Section 6.05 -

Posting of Rules

The rules of each game offered at any duly licensed Gaming Facility shall be posted in a

conspicuous location and shall be clearly legible.

VII. EXCLUSION OR FJECTION OF INDIVIDUALS

Section 7.01 - List of Undesirabtes

The Commission may provide for the establishment of a list of persons who are to be excluded

or ejected from any duly licensed Gaming Facility. The list may include any person whose

TRIBAL CODE OF GAMING REGULATIONS 22
presence in the Gaming Facility is determined by the Commission to pose a threat to the interests

of the Tribe, State of California or to licensed Gaming. Race, color, creed, national origin,

ancestry or sex must not be grounds for placing the name of a person on the list.

Section 7.02 - Notice and Opportunity to be Heard

The Commission shall promulgate regulations providing fair notice and opportunity to be heard

to any individuals whose name is being contemplated by the Tribe to be placed on the list

referred to in Section 7.01. Such regulations must provide the person an opportunity to show

cause why his name should be deleted from the list.

Section 7.03 - Prohibition Against Listed Individuals

It shall be a violation of this Code for any Licensee to knowingly fail to exclude or eject from

a Gaming Facility any persons placed on the list referred to in Section 7.01. It shall be violation

of this code for any person whose name appears on the list referred to in Section 7.01 to enter

into or engage in any game at a duly licensed Gaming Facility. -

Section 7.04 - Prohibition Against Certain Individuals

It shall be a violation of this Code for any Licensee to knowingly fail to exclude or eject from

a Gaming Facility any individual who:

(a) Is visibly under the influence of liquor or any narcotic or such other substance;

or

(b) Is under the age of twenty-one (21) years.

VII. CHEATING

Section 8.01 - Unlawful Acts

It is unlawful for any Person to:

(a) Alter or misrepresent the outcome of a game or other event on which wagers

have been made after the outcome is made sure, but before it is revealed to the

players;

(b) Place, increase or decrease a bet, or to determine the course of play, after

acquiring knowledge not available to all players] of the outcome of the game or

knowledge that is the subject of the bet or wager;

(c) Aid anyone in acquiring such knowledge as set forth in subsection (b) above, for

the purpose, of increasing or decreasing a bet or wager, or for the purpose of

determining the course of play contingent upon that event or outcome;

(d) Claim, collect or attempt to claim or take money or anything of value in or from

a licensed game with intent to defraud, without having made a wager contingent

TRIBAL CODE OF GAMING REGULATIONS 23
thereon, or to claim, collect or take an amount greater than the amount won;

(e) Knowingly entice or induce another to go to any place where a Gaming Activity

is being conducted or operated in violating of the provisions of this Chapter, with

the intent that the other person play or participate in that Gaming Activity;

(f) To place or increase a bet or wager after acquiring knowledge of the outcome of

the game or event which is the subject of the bet or wager, including past-posting

and pressing bets;

(g) To reduce the amount wagered or cancel the bet after acquiring knowledge of the

outcome of the game or other event which is the subject of the bet or wager,

including pinching bets; or

(h) To manipulate, with intent to cheat, any component of Gaming Equipment in a

manner contrary to the designed and normal operational purpose for the

component, with knowledge that the manipulation affects or may affect the

outcome of the game or with knowledge of any event that affects the outcome of

the game.

Section 8.02 - Prohibition Against Electronic Aids

Except as specifically permitted by the Director with the approval of the Commission, no person

shall possess with the intent to use or actually use] at any table game, either by himself, or in

concert with others, any calculator, computer or other electronic, electrical or mechanical device

to assist in projecting an outcome at the table game, to keep track or analyze the cards having

been dealt, or to change the probabilities of the game or the playing strategies to be utilized.

IX. NATIONAL INDIAN GAMING COMMISSION & TRIBAL/STATE COMPACTS

Section 9.01 - National Indian Gaming Commission -

Regulations

Notwithstanding any provision in the Gaming Ordinance, this Code or any regulation

promulgated thereunder, the Commission is fully empowered to comply with all regulations

promulgated by the National Indian Gaming Commission, including but not limited to] all

requirements to report ordinances, contracts, license applications, background checks and other

information to the National Indian Gaming Commission.

Section 9.02 - National Indian Gaming Commission - Assessment

Notwithstanding any provision in the Gaming Ordinance, this Code or any regulation

promulgated thereunder, the Commission is fully empowered to comply with all assessments

authorized by the National Indian Gaming Commission. Such assessments shall be paid from

the Treasury of the Redwood Valley Rancheria.

Section 9.03 -

Compact with the State of California

Notwithstanding any provision in the Gaming Ordinance, this Code or any regulation

TRIBAL CODE OF GAMING REGULATIONS 24
promulgated thereunder, the Commission is fully empowered to comply with the provisions of

any Compact properly executed between the Tribe and the State of California.

X. MISCELLANEOUS

Section 10.01 -

Security

Each licensed Gaming Activity must provide for reasonable security. All security officers and

personnel must be licensed by the Commission.

Section 10.02 - Maintenance of Code and Regulations

Each Licensee shall obtain, maintain and keep current a copy of the Gaming Ordinance and this

Code of Regulations on the Gaming Premises. The Ordinance and Code of Regulations shall

be produced by the Licensee and shown to any interested party upon demand. That the Licensee

may not have a current copy of the Gaming Ordinance, Code of Gaming Regulations, or each

of the rules of the Commission, shall not in any way diminish the Licensees obligation to abide

by the Ordinance and Code of Regulations.

Section 10.03 - Compliance with Other Laws

The construction, maintenance and operation of any Gaming Facility shall be in a manner which

adequately protects the environment and the public health and safety and shall comply with any

otherwise applicable Tribal and federal laws relating to environmental protection and public

health and safety.

Section 10.04 - Amendntent

All regulations promulgated herein by the Commission are subject to proper revision, repeal

or amendment by the Commission.

Section 10.05 -

Severability

If any provision of this Code, or its application to any purpose or circumstance, is held invalid

by a court of competent jurisdiction, the full remainder of the provision, or the application of

the provision through another Person or circumstance, shall not be affected.

Section 10.06 -

Captions

The captions and heading of this Code are included for convenience only and shall in no way

limit or affect the text thereunder.

TRIBAL CODE OF GAMING REGULATIONS 25