Section 105.

Section 106.

D. The Tribal Council shall devise and disseminate to tribal program
personnel requirements for needs assessments and budget report that detail what
projected expenditures are allowed to be included in the supplement budget
requests. The budget report requirement shall require tribal programs/specific
tribal welfare needs to consider those essential duties, services and responsibilities
of tribal programs/specific tribal welfare needs which cannot be dependent on
projected, yet uncertain, gaming revenues; further, the budget report requirements
shall require tribal programs to prioritize items included in its supplement budget
request to insure essential duties, services and responsibilities will be met by all
projected revenues derived from whatever source.

Use of Tribal Business Net Revenues, Tribal Economic Development:

A. In order to provide funding for tribal economic development, the Tribal
Council hereby allocates henceforth, FIVE PERCENT (5%) of net gaming
business revenues to be paid into a tribal account called the “Tribal Economic
Development Fund.”

If it deems necessary, the Tribal Council shall have the authority to revise and
increase the allocated percentage of net gaming business revenues paid into the
“Tribal Economic Development Fund” by allocating a larger percentage to the
fund. Any revision of the allocated percentage herein shall be documented by a
Tribal Council resolution, a copy of which shall be provided to the Secretary of
the Interior or his agent.

B. The Tribal Council shall have the authority to utilize funds from the tribal
economic development fund to fund general tribal economic development
projects. The Tribal Council shall establish and/or maintain a process by which it
considers tribal economic development proposals. Each tribal economic
development proposal shall include projected revenue expenditures and a budget
request.

Use of Tribal Gaming Business Revenues; Local Government Revenue
Sharing Fund.

A. In order to provide supplemental funding for local government revenue
sharing grants, the Tribal Council hereby allocates henceforth, TWO PERCENT
(2%) of net gaming business revenues to be paid into a tribal account called the
“Jocal government revenue sharing fund.

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b. Placement into Trust for Legal Incompetent: The Tribal
Council will place into trust the per capita payment of any
individual declared legally incompetent upon a Prairie Island
Indian Community Tribal Court Order, an Order of any other court
of competent jurisdiction or the petition of at least two qualified
enrolled members, one of which must be a family member of the
person whose per capita payment is being requested to be placed
into trust. The Tribal Council or its appointed agent shall conduct
hearings as it sees fit to gather testimony and evidence as to the
reasons petitioners feel it should place into trust the per capita
payments of the individual declared incompetent. The Tribal
Council or its appropriate agent retains the authority to place into
trust any per capita payment of any individual declared
incompetent before holding a hearing, however, the Tribal Council
or its appointed agent must conduct a hearing and make a decision
thereafter within sixty (60) days from the date it has placed into
trust the per capita payment. The per capita payments of that
individual shall be placed in trust in a low-risk interest bearing
bank account until that individual is declared legally competent.

2. Authority to Distribute Living Allowance: The Tribal Council or
its appointed agent shall consider paying a monthly living allowance from
the proceeds of any per capita payment placed into trust for an individual
declared legally incompetent upon the petition of the legal guardian of the
individual declared legally incompetent. Such petition shall include a
detailed budget of monies necessary for the health, education and welfare
of the individual declared legally incompetent. The legal guardian of the
individual declared legally incompetent must submit an accounting to
document that the funds received were used for the health, welfare and
education of the individual declared legally incompetent.

3. Account Statements of Trust Account: The Tribal Council or its
appointed agent shall make available a monthly statement of any monies
placed into trust for every minor and each individual declared incompetent
to the legal guardian of such person.

4. Power of Tribal Council to Delegate Authority: The Prairie Island
Indian Community Tribal Council has the inherent power to delegate
authority by making determinations regarding the per capita payments to
minors or persons declared incompetent. It shall be up to the Tribal
Council to determine to whom they will delegate this authority, if to
anyone. Any such appointment of an agent with delegated authority shall
be documented by Tribal Council resolution.

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Section 104.

F. The Tribal Council or its appointed agent shall disburse those monies
available out of the “tribal operations fund” pursuant to the Treasurer’s division as
devised pursuant to paragraph D herein. Such disbursements shall be made
quarterly unless the Tribal Council adopts by resolution an alternative
disbursement plan. Any disbursements made hereunder shall be received by the
receiving program and handled in a manner consistent with the programs
generally accepted accounting methods.

Use of Tribal Gaming Business Net Revenues; General Tribal Welfare:

A. In order to provide supplemental funding for general community welfare,
the Tribal Council hereby allocates henceforth, TWO PERCENT (2%) of net
gaming business revenues to be paid into a tribal account called the Community
welfare fund.

If it deems necessary, the Tribal Council shall have the authority to revise and
increase the allocated percentage of net gaming business revenues paid into the
community welfare fund by allocating a larger percentage to the fund. Any
revision of the allocated percentage herein shall be documented by a Tribal
Council resolution, a copy of which shall be provided to the Secretary of the
Interior or his agent.

B. The Tribal Council or its delegated agent shall meet with all tribal social
service related staff and consultants to consider the social service and general
welfare needs of tribal members and to receive needs assessments and budget
reports of any social service tribal program not included in Section 106 thirty (30)
days prior to the commencement of the fiscal year. The needs assessments and
budget reports shall detail at a minimum; past year and expected revenues and
revenue sources, expenditures including a detailed accounting for expenditures.
The budget reports shall also include budget supplement requests to be funded out
of the community welfare fund.

The Tribal Council, or its delegated agent, shall consider charitable contribution
requests under this section and shall make such contributions from funds available
out of the “community welfare fund.” The Tribal Council may show a preference
to such charitable contribution requests that benefit tribal members or Indian
people generally.

Cc. The Tribal Council shall within thirty (30) days from receiving all needs
assessments and budget reports under this section allocate those funds in the
general welfare fund by dividing the general welfare fund on a percentage basis in
divisions that shall be fair and best meet the budget supplement requests
submitted by each tribal program and/or on behalf of specific tribal welfare needs
in light of projected gaming business revenues.

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Section 107.

B. The Tribal Council shall have the authority to utilize the funds available in
the local government revenue sharing fund to assist local, city and county
governments in projects and programs that affect the Prairie Island Indian
Community. The Tribal Council shall receive from or initiate proposals for
projects or programs with local city or county governments, negotiate the terms of
such project/program in light of available funds in the local government revenue
sharing fund. It is a specific priority of the Tribe to expend monies pursuant to
the terms of this section only if such expenditures are matched by local, city or
county government funding, or funding from some source other than the Tribe.

Use of Tribal Gaming Net Revenues: Individual Per Capita Payments:

A. In order to advance the personal health, safety and welfare of qualified
tribal members, the Tribal Council hereby allocates henceforth, SEVENTY-ONE
PERCENT (71%) of all net gaming business revenues shall be divided in the
following manner: FIFTY-EIGHT PERCENT (58%) shall be divided into
equal shares and paid to all adult enrolled members of the Prairie Island Indian
Community over the age of eighteen (18) and THIRTEEN PERCENT (13%)
shall be divided into equal shares and paid to all minor enrolled members of the
Prairie Island Indian Community under the age of eighteen (18). For purposes of
this Ordinance, “per capita payment” shall mean those payments made pursuant to
the terms of this Ordinance to enrolled members out of revenues generated from
tribal gaming businesses; no other commonly accepted or used definition of the
term “per capita” affects the use of the term herein.

1. Uniform Monthly Per Capita Payment: Upon the majority vote of
the Tribal Council, the per capita payment schedule for all persons entitled
to receive such payments may be adjusted to provide for uniform monthly
per capita payments. All monies of the stipulated monthly net proceeds of
Tribal gaming businesses that are set aside for per capita payments in
excess of the uniform monthly amount shall be deposited into a low-risk
interest bearing reserve bank account, the principal and interest of which
shall be available and shall be drawn upon to supplement individual per
capita payments in any month or months during which the available
proceeds do not permit distribution at the previously budgeted uniform
amount. All monies, if any, remaining in the reserve account herein shall
be distributed to all qualified Tribal members in equal payments near the
end of the calendar year. Nothing in this section shall allow the Tribal
Council to allocate more than the percentage allowed for herein for per
capita payments.

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Section 108.

Section 109.

Section 110.

5. Right of Judicial Review: Any qualified enrolled member
adversely affected by this paragraph shall have the right of judicial review
by bringing an action in Tribal Court to seek review of such adverse
determination. A final decision of the Tribal Court shall be binding. The
Tribal Council hereby waives its immunity from suit for the limited
purpose of allowing Tribal Court review of any adverse determination
relating to the placement into trust of per capita payments.

Dz. Any person enrolling in the Prairie Island Indian Community shall not be
entitled to any back payments of per capita proceeds. Per capita payments shall
commence on the date the enrollment committee issues a confirmation of
enrollment and shall not be retroactive. The first per capita payment to a new
member shall be on the first date of a regularly scheduled payment after her or his
enrollment is confirmed.

The Tribal Council shall insure that notification of the application of federal tax
laws to tribal per capita payments be made when such payments are made. The
Tribal Administration shall also implement a procedure by which qualified
enrolled members who receive per capita payments can have applicable taxes
automatically deducted from per capita payments. The Tribal Administration
shall include in the notice of the application of federal tax laws a notice of the
existence of the withholding procedure.

Severability:

If any section of any part of this Ordinance or the application thereof to any party,
person or entity or, in any circumstances, shall be held invalid for any reason
whatsoever by a court of competent jurisdiction, or by the Department of the
Interior, the remainder of the part or Ordinance shall not be affected thereby and
shall remain in full force and effect as though no part thereof has been declared to
be invalid.

No Waiver of Sovereign Immunity:

Nothing in this Ordinance shall mean or be interpreted to provide a waiver of
sovereign immunity from suit of the Tribe, or any of its governmental officers
and/or agents, except to the limited extent such waiver is explicitly expressed
herein.

Amendment or Repeal of Ordinance:

This Ordinance, and any word, provision, part thereof may be amended or
repealed only by a majority vote of the Tribal Council in regular session.

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NATIONAL
INDIAN

4 ee
ba
*%, COMMISSION

JUN | 2 1998

Honorable Audrey Kohnen
President, Prairie Island Indian Community
5636 Sturgeon Lake Road

» Welch, Minnesota 55089

Dear Ms. Kohnen:

This letter responds to your request to review and approve the amendment to the
Prairie Island Indian Community’s tribal gaming ordinance submitted on March 26, 1998.
The amendment does not require approval by the National Indian Gaming Commission
(NIGC) because the amendment addresses net revenues allocation.

Under the Indian Gaming Regulatory Act (IGRA) and the regulations of the NIGC, the
Chairman is directed to review ordinances and amendments with respect to the requirements
of the IGRA and the implementing regulations. Thus, the scope of the Chairman's review
and approval is limited to the requirements of the IGRA and the NIGC regulations.
Provisions other than those required under the IGRA or the NIGC regulations that may be
included in a tribal ordinance are not subject to review and approval.

Under the IGRA, 25 U.S.C. § 2710 (b)(3)(B), a plan to allocate revenues must be approved
by the Secretary of the Interior. By Resolution 98-3-25-37, we have been advised that
the Prairie Island’s revenue plan has been and/or submitted to the Bureau of Indian Affairs
for approval. Although the NIGC does not approve all amendments to tribal gaming
ordinances, we do require tribes to submit to the NIGC all such amendments.

Thank you for submitting the Prairie Island Indian Community’s amendment for review.
If you have questions or require further assistance, please contact Ms. Frances Fragua
at (202) 632-7003.

Sincerely yours,

ann

Tadd M. Johnson Boke

Chairman

cc: Robert Grey Eagle, General Counsel

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



2.

Compulsory Payment of Per Capita Reserve. In no event shall the

principal placed in the uniform payments per capita reserve account be
held for more than twelve (12) calendar months from the date of deposit
into the reserve. Interest on the per capita reserve may be retained or
uniformly distributed hereunder at the discretion of the Tribal Council.

B. Qualification for Per Capita Payments. All enrolled members, including
minors, of the Prairie Island Indian Community shall be entitled to receive an
equal share of the specific percentage allocated in this section for per capita
payments to them.

Cc. The Prairie Island Indian Community Tribal Council has the inherent
authority to place into trust the per capita payments, or any portion or percentage
thereof, of any minor or individual who is declared incompetent by a court or
competent jurisdiction.

1.

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Placement Into Trust for Minors and Legal Incompetent:

a. Placement into Trust for Minors: The Tribal Council shall
place into trust the per capita payment of every minor into a trust to
be entitled the “Irrevocable Minor’s Trust of the Prairie Island
Indian Community in the State of Minnesota” and shall be
administered by an independent institutional trustee. The principal
and interest shall be disbursed to the parent or legal guardian of a
minor or the minor in accordance with the trust document that shall
allow for the following distributions:

Distributions Directly to Minor as Follows:

Twenty-five percent (25%) of the principal at age 18;
Twenty-five percent (25%) of the principal at age 21;
Twenty-five percent (25%) of the principal at age 25;
Twenty-five percent (25%) of the principal at age 31; and

One hundred percent (100%) of the net interest income at age 35.

Distributions to Parent or Legal Guardian as Follows:

The trust document shall also allow for “special needs” distribution
to the parent or legal guardian of a minor on a “clear and
convincing” standard, for the health, welfare and education of the
minor when all other resources have been exhausted including
federal, state, local and tribal assistance; as well as family and
individual resources available to minor have been exhausted. A
parent or legal guardian who receives a distribution from the
minor’s trust for a minor’s “special needs” shall fully account to
the Tribal Council or their agent for all amounts distributed to

them for the minor.


Section 100.

Section 101.

Section 102.

PRAIRIE ISLAND INDIAN COMMUNITY
IN THE
STATE OF MINNESOTA

GAMING REVENUE ALLOCATION ORDINANCE
[Revised Sth]

Ordinance Number 98-3-25-37
MAR 27 m,

Repeal of Inconsistent Legislation:

Notwithstanding any previously applicable or inconsistent provisions of tribal law
which are hereby repealed and rescinded, this Ordinance shall govern the
distribution of available net revenues from tribally owned gaming establishments
including per capita distribution to qualified Community members of the available
proceeds of the gaming businesses of the Prairie Island Indian Community.

Policy:

This Ordinance shall comply with the Indian Gaming Regulatory Act of 1988 [25
U.S.C. §§2701, et. seq.] and all other applicable federal law. The Prairie Island
Indian Community shall use revenues generated by trial gaming establishments
primarily to strengthen the tribal government, tribal self-sufficiency and to
support tribal economic development. All members of the Prairie Island Indian
Community shall be entitled to share in Community gaming profits. The
Community is committed to strengthening its Reservation community socially,
economically, and culturally in its continuing efforts to realize its goal for Self-
Determination. The Community retains the inherent sovereign right to determine
the best interests of tribal members and to allocate its limited resources in a
manner that best satisfies the needs of tribal members.

Authority:

This Ordinance is enacted pursuant to authority detailed in the Prairie Island
Indian Community in the State of Minnesota Constitution and Bylaws including
but not limited to those powers detailed in Article V, Section 1(a), Article V,
Section 1(c), Article V, Section 1(g), Article V, Section 1(i), Article V, Section 10
and all other applicable enumerated and reserved powers. The Ordinance is also
enacted pursuant to the terms of the Indian Gaming Regulatory Act of 1988, 25
U.S.C. §§ 2701, et. seq.

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Section 103.

Use of Tribal Gaming Net Revenues; Tribal Government Operations and
Programs:

A. In order to provide supplemental funding for tribal operations, the Tribal
Council hereby allocates henceforth, TWENTY PERCENT (20%) of net
gaming business revenues to be paid into a tribal account called the “tribal
operations fund.”

If it deems necessary, the Tribal Council shall have the authority to revise and
increase or decrease the allocated percentage of net gaming business fund. Any
revision of the allocated percentage herein shall be documented by a Tribal
Council resolution, a copy of which shall be provided to the Secretary of the
Interior or his agent.

B. The Tribal Council or its appointed agent shall receive budget reports from
each tribal program thirty (30) days prior to the commencement of the fiscal year.
The budget reports shall detail at a minimum; past year and expected revenues
and revenue sources, expenditures including a detailed accounting for
expenditures. The budget reports shall also include budget supplement requests to
be funded by the “tribal operations fund.”

Cc. Tribal programs to submit budget reports under this section shall include:
tribal administration, tribal court, finance department, legal department, Indian
Child Welfare program, social services program, tribal health department, tribal
maintenance, tribal commodity program, education program, elderly program, and
other programs hereafter developed and added to this provision by amendment.

D. The Tribal Council shall within thirty (30) days from receiving all budget
reports allocate those funds in the tribal operations fund by dividing the tribal
operations fund on a percentage basis in divisions that shall be fair and best meet
the budget supplement request submitted by each tribal program in light of
projected gaming business revenues.

E. The Tribal Council shall devise and disseminate budget report
requirements that detail what projected expenditures are allowed to be included in
the supplement budget requests. The budget report requirement shall require
tribal programs to consider those essential duties, services and responsibilities of
tribal programs which cannot be dependent on projected, yet uncertain, gaming
revenues; further, the budget report requirements shall require tribal programs to
prioritize items included in its supplement budget request to insure essential
duties, services and responsibilities will be met by all projected revenues derived
form whatever source.

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