Section 113. Audit

(a) The Tribe shall cause an annual outside independent audit of gaming operations to be
conducted, 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.

Section 114. Environment and Public Health and Safety

(a) Gaming facilities shall be constructed, maintained and operated in a manner that
adequately protects the environment and the public health and safety;

(b) The Fort Independence Tribal Council shall adopt standards that assure adequate
protection of the environment and the public health and safety.

Section 115. Patron Dispute Resolutions

Patrons who have complaints against the gaming establishment shall have as their sole
remedy the right to file a petition for relief with the Tribal Gaming Commission.
Complaints shall be submitted in writing, and at the discretion of the Commission, the
petitioner may be allowed to present evidence. The Gaming Commission shall hold a
hearing within 30 days of receipt of petitioner's complaint. Petitioner may have counsel
present at such hearing. The Commission shall render a decision in a timely fashion and
all such decisions will be final when issued. Any patron complaint must be submitted to
the Commission within thirty (30) days of the incident giving rise to the complaint. All
claims by patrons shall be limited to a maximum recovery of $_500.00 per occurrence,
and a cumulative limit of $_ 1,500.00 per patron in any twelve (12) month period, except
disputes relating to a patron’s entitlement to a game prize, which shall be limited to the
amount of such prize. The Commission's decision shall constitute the complainant's final
remedy.

Section 116. Facility Licenses

(a) The Tribal Gaming Commission shall issue a separate license to each place, facility,
or location on Indian lands where Class II and/or Class III gaming is conducted under this
ordinance.

(b) The Tribal Gaming Commission shall issue a separate license to each place, facility,
or location on Indian lands where Class II and/or Class III gaming is conducted under this
ordinance once every 3 years The Tribal Gaming Commission shall specify the form,
conditions and content for the application for such licenses, which shall be submitted by
the chief management official of the facility, and the initial application shall include a

16


(9) Inspect, examine and monitor all gaming activities, and have immediate
access to review, inspect, examine, photocopy and audit all records of the gaming
establishment;

(10) Ensure compliance with all Tribal, State, and Federal laws, rules, and
regulations regarding Indian gaming;

(11) Investigate any suspicion of wrongdoing associated with any gaming
activities;

(12) Hold hearings on patron complaints, in compliance with procedures
established in the gaming ordinance and other Tribal gaming regulations;

(13) Comply with any and all reporting requirements under the IGRA, Tribal-
State compact to which the Tribe is a party, and any other applicable law;

(14) Promulgate and issue regulations necessary to comply with applicable
internal contro] standards;

(15) Promulgate and issue regulations on the levying of fees and/or taxes
associated with gaming license applications;

(16) Promulgate and issue regulations on the levying of fines and/or suspension or
revocation of gaming licenses for violations of this Ordinance, or any other
Tribal, Federal, or State, if applicable, gaming regulations; and

(17) Establish a list of persons not allowed to game in Tribal gaming facilities in
order to maintain the integrity of the gaming;

(18) Establish a list of persons who have voluntarily asked to be excluded from
Tribal gaming facility and create regulations for enforcing this exclusion;

(19) Provide referrals and information to the appropriate law enforcement
officials when such information indicates a violation of Tribal, Federal, or State
statutes, ordinances, or resolutions;

(20) Create a list of regulatory authorities that conduct vendor background
investigations and licensing which the Commission recognizes as trustworthy;
(21) Draft regulations exempting vendors from the licensing and/or background
investigation requirements if they have received a license from a recognized
regulatory authority;

(22) Perform such other duties the Commission deems appropriate for the proper
regulation of the Tribal gaming operation;

(23) Promulgate such regulations and guidelines as it deems appropriate to
implement the provisions of this Ordinance.

(g) The Gaming Commission shall ensure that all records and information obtained as a
result of an employee background investigation shall remain confidential and shall not be
disclosed to persons who are not directly involved in the licensing and employment
processes. Information obtained during the course of an employee background
investigation shall be disclosed to members of management, human resource personnel or
others employed by the tribal gaming operation on a need-to-know basis for actions taken
in their official capacities.

This Section does not apply to requests for such information or records from any Tribal,
Federal or State law enforcement or regulatory agency, or for the use of such information

10


application and is not otherwise listed pursuant to paragraph (b)(8) or (b)(9) of
this section, the criminal charge, the name and address of the court involved and
the date and disposition;

(11) The name and address of any 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;

(12) A photograph taken within the last year; and

(13) Any other information the Tribe deems relevant.

Section 206. Procedures for Conducting a Background Check on Applicants

(a) As part of its review procedure, the Commission or its agent shall employ or engage a
private investigator to conduct a background investigation on each applicant sufficient to
allow the Gaming Commission to make an eligibility determination under subsection 207
below. The investigator shall:

(1) Verify the applicant’s identity through items such as a social security card,
drivers license, birth certificate, or passport;

(2) Contact each personal and business reference provided in the License
Application, when possible;

(3) Obtain a personal credit check;

(4) Conduct a civil history check;

(5) Conduct a criminal history check via the submission of the applicant’s
fingerprints to the NIGC, and further obtain information from the appropriate
court regarding past felony and/or misdemeanor convictions and criminal charges
within the last ten years;

(6) Inquire into any previous or existing business relationships with the gaming
industry and Indian tribes by contacting the entities or tribes;

(7) Verify the applicant's history and status with any licensing agency by
contacting the agency; and

(8) Take other appropriate steps to verify the accuracy of the information,
focusing on problem areas noted.

(b) The investigator shall create an investigative report noting the steps taken,
information gained, potential problem areas, and disqualifying information.

(c) The Gaming Commission and its investigator shall promise to keep confidential the
identity of each person interviewed in the course of the investigation, other than
disclosure as required under Federal, Tribal, or State law.

Section 207. Eligibility Determination
The Tribal Gaming Commission shall review a person’s prior activities, criminal record,
if any, and reputation, habits and associations to make a finding concerning the eligibility

of a key employee or primary management official for employment in a gaming
operation. If the Tribal Gaming Commission determines that employment of the person

20


er 6

Index to Fort Independence Indian Reservation Gaming Ordinance

101. Purpose 3
102. Definitions 3
103. Gaming Authorized 5
104. Ownership of Gaming 5
105. Use of Gaming Revenue 6
106. Tribal Class It and Class III

Minimum Internal Control Standards 6
107. Per Capita Payments 6
108. Board of Directors 6
109. Gaming Commission 8
110. Enforcement 12
111. Ethics 14
112. Complimentary Items 15
113. Audit 16
114. Environment and Public Health and Safety 16
115. Dispute Resolution 16
116. Facility Licenses 16
117. Agent for Service of Process 17
118. Compliance with Federal Law 17
119. Repeal 17
120. Tribal Access to Financial Information 17
201. Licenses for Key Employees and Primary

Management Officials 17
202. License Application Forms 18
203. License Fees 19
204. Fingerprints 19
205. Background Investigations 19
206. Procedures for Conducting a Background Check on

Applicants 20
207. Eligibility Determination 20
208. Procedures for Forwarding Applications and Reports

for Key Employees and

Primary Management Officials to the NIGC 21
209. Report to the NIGC 21
210. Granting a Gaming License 22
211. License Suspension 22

212. Board of Review for Disputes 23


legal description of the lands whereon the facility is located, and a certification that said
premises constitute “Indian lands” as specified in the Indian Gaming Regulatory Act, and
shall identify the environmental, health, and public safety standards with which the
facility must comply, and a certification that the facility is in compliance therewith Each
subsequent application for the renewal of such facility license shall identify any changes
or additions to said legal description and applicable environmental, health and safety
standards, and include current certifications of compliance therewith. The Tribal Gaming
Commission shall only issue such licenses if the applications include the required
information and certifications and such further conditions as the Tribal Gaming,
Commission shall have specified.

Section 117. Agent for Service of Process

The Tribe hereby designates the Tribal Chairman as agent for service of process, who
may be contacted at:

Chairman Carl Dahlberg
P.O. Box 67
Independence, CA 93526

Section 118. Compliance with Federal Law

The Tribe will comply with all applicable federal law, including the Bank Secrecy Act,
31 U.S.C. § 5311 et seq.

Section 119. Repealed

To the extent that they are inconsistent with this ordinance, all prior gaming ordinances
are hereby repealed.

Section 120. Tribal Access to Financial Information

A copy of the Tribal gaming operation annual audit will be made available for review,
upon request, to:

The Business Committee of the

Fort Independence Indian Community of the Paiute Indians of
Fort Independence, California

P.O. Box 67

Independence, CA 93526

Section 201. 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 gaming enterprise operated on Indian lands. The Tribe will issue licenses and

17


(b) The Tribal Gaming Commission shall notify the licensee of a time and a place for a
hearing on the proposed revocation of a license, regardless of the basis for the revocation.

(c) After a revocation hearing, the Tribal Gaming Commission shall decide to revoke or
to reinstate a gaming license. The Commission shall notify the NIGC of its decision.

Section 212. Board of Review for Disputes

The Tribe has determined that, in order to adhere to this Ordinance and all gaming
regulations, there shall be established a Tribal Gaming Board of Review (Board of
Review). The Board of Review shall serve as the final review body for employee
disputes. Employee disputes shall include disputes with management, terminations, fines
or other internal employee disputes, not to include actions taken by the Commission.

The Board of Review shall consist of five members, The membership shall be comprised
of one member of the Tribal Gaming Commission, one member from the Tribal Council,
one primary management official or key employee, one enrolled Tribal member not
employed by the gaming operation, and one employee of the gaming operation. The
members from the Tribal Gaming Commission, Tribal Council, and gaming operation
primary management official or employees shall be elected from their representative
groups and the enrolled Tribal member shall be appointed by the Fort Independence
Tribal Council. Board of Review members shall serve staggered terms. The two Tribal
members shall serve three-year terms. The primary management official or key employee
shall serve a two-year term. The members from the Tribal Gaming Commission and the
Tribal Council shall serve one-year terms. The Board of Review members who are not
employed by the Tribe in some other capacity shall be compensated at a rate of [$25.00]
per meeting or hearing, and shall be reimbursed for actual costs incurred during the scope
of his/her duties as a member of the Board of Review. Compensation shall never be tied
to tribal gaming revenues.

The Board of Review members shall elect a Chairperson from among them, whose duty it
shall be to preside over all meetings and hearings. In addition, the members shall elect a
Vice-Chair who shall be the custodian of any evidence submitted, and who shall preside
in the Chairperson’s absence. The Board of Review shall meet [monthly] and shall keep
official records of the meetings. No later than three working days following a hearing on
employee disputes, the Board of Review shall issue its findings. Findings of the Board
shall be final when issued.

No Board of Review member shall be removed prior to the end of his/her term without
cause. Removal shall be effectuated by a majority vote of the entire Board of Review,
and shall be a final decision. A Board of Review member shall not review any decisions
affecting himself / herself, or any person directly related to him or her.

23


Section 203. License Fees

The Tribe may charge a license fee, to be set by the Tribal Gaming Commission, to cover
its expenses in investigating and licensing Key Employees and Primary Management
Officials of the gaming operation.

Section 204. Fingerprints

Each applicant for a Key Employee or Primary Management Official shall be required to
have fingerprints taken as part of the application procedure. Fingerprints shall be taken by
Inyo County Sheriff's Department. Fingerprints will then be forwarded to the NIGC for
processing through the FBI and NCIC to determine the applicant's criminal history, if
any.

Section 205. Background Investigations

(a) The Tribal Gaming Commission is responsible for conducting background
investigations and suitability determinations.

(b) The Tribal Gaming Commission shall request from each primary management official
and from each key employee all of the following information:

(1) Full name, other names used (oral or written), social security number(s), birth
date, place of birth, citizenship, gender, all languages (spoken or written);

(2) Currently and for the previous 5 years: business and employment positions
held, ownership interests in those businesses, business and residence addresses,
and drivers license numbers;

(3) The names and current addresses of at least three personal references,
including one personal reference who was acquainted with the applicant during
each period of residence listed under paragraph (b)(2) of this section;

(4) Current business and residence telephone numbers; _~

(5) A description of any existing and previous business relationships with Indian
Tribes, including ownership interests in those businesses;

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

(7) The name and address of any 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;

(8) For each felony, crime of moral turpitude, theft related offense for which there
was an ongoing prosecution or a conviction, at any time, the charge, the name and
address of the court involved, and the date and disposition if any;

(9) For each misdemeanor conviction or ongoing misdemeanor prosecution
(excluding minor traffic violations), and/ or bankruptcy filed within 10 years of
the date of the application, the name and address of the court involved and the
date and disposition;

(10) For each criminal charge (excluding minor traffic charges), whether or not
there is a conviction, if such criminal charge is within 10 years of the date of the

19


(i Cumulative Fines: All civil fines accruing under this Ordinance shall be
cumulative and a suit for the recovery of one fine shall not bar or affect the recovery of
any other fine, or judgment, penalty, forfeiture or damages, nor bar the power of the
Tribal Court to punish for contempt, nor bar any criminal prosecution against any officer,
director, agent, or employee of any Licensee, or any other Person.

(g) Purpose of Civil Penalties: The civil fines imposed under this Ordinance are
intended to be remedial and not punitive and are designed to compensate the Tribe for the
damage done to the peace, security, economy and general welfare of the Tribe and the
Rancheria, and to compensate the Tribe for costs incurred by the Tribe in enforcing this
Ordinance. The civil fines under this Ordinance are also intended to encourage all people
into complying with this Ordinance and Tribal Gaming Commission regulations and not
to punish such people for violation of such laws and regulations.

(h) Civil Action for Penalties: In enforcing the civil infraction provisions of this
Ordinance, the Tribal Gaming Commission shall proceed, in the name of the Tribe,
against a Person for violation of such provision by civil complaint in any court of
competent jurisdiction, or, if applicable, only in such other forums as the Tribe has
agreed to by Contract. The Tribal Gaming Commission in such action shall have the
burden of showing, by the preponderance of the evidence, that such Person violated the
applicable provision of this Ordinance.

@ Seizure and Forfeiture of Property: Property utilized in violation of this
Ordinance shall be subject to seizure and forfeiture by order of the Board of
Commissioners pursuant to such procedures and rules as the Board of Commissioners
shall promulgate.

(i) Reporting of Offenders: The Tribal Gaming Commission, upon final conviction
of any Person under this subsection, shall report the name of the Person convicted to the
Tribal Council, State Gaming Board and NIGC.

Section 111. Ethics

(a) The Tribe recognizes that the duties of the Gaming Board of Directors and the Tribal
Gaming Commission include making important decisions on highly sensitive issues. As
such, the Tribe has determined that the Board of Directors and the Gaming Commission
shall be held to extremely high ethical standards. Prior to taking their positions on the
Board and the Commission (Members), the Members shall agree to be bound by the
following principles:

(1) Members shall not hold financial interests that conflict with the conscientious
performance of their duties as managers and regulators.

(2) Members shall not engage in financial transactions using nonpublic
information or allow the improper use of such information by others on their
behalf to further any private interest.

14


(q) Tribal Council means the General Council of the Fort Independence Indian
Reservation.

Section 103. Gaming Authorized
Class II and Class II] gaming is hereby authorized.
Section 104. Ownership of Gaming

The Tribe shall have the sole proprietary interest in and responsibility for the
conduct of any gaming operation authorized by this ordinance.

Section 105. Use of Gaming Revenue
(a) Net revenues from tribal gaming shall be used only for the following purposes:

(1) to fund tribal government operations and programs;

(2) to provide for the general welfare of the Tribe and its members;
(3) to promote tribal economic development;

(4) to donate to charitable organizations; or

(5) to help fund operations of local government agencies.

Section 106, Tribal Class II and Class If Minimum Internal Control Standards

The Tribe voluntarily, through this tribal gaming ordinance, shall maintain minimum
internal control standards (MICS) that equal or exceed those set forth in 25 C.F.R. 542
(as in effect on October 1, 2006). The Tribe will work with NIGC to ensure compliance
with MICS regulations.

Section 107. Per Capita Payments

(a) “Per Capita Payment” means the distribution of money or other thing of value to all
members of the Tribe, or to identified groups of members, which is paid directly from the
net revenues of any tribal gaming activity.

(b) The Tribe elects to make payments to each of its members from its Revenue Sharing
Trust Fund (“RSTF”) funds, or to encumber these funds for other uses for the benefit of
the Tribe. These funds are not derived from the Tribe’s gaming operation and are not
required to have any plan to implement these as “per capita” payments pursuant to 25
C.F.R. Part 290.

(c) The Tribe elects to additionally make per capita payments to tribal members from
revenues derived from its gaming operations . The Tribe shall adopt a separate Revenue
Allocation Plan for Gaming Revenues (“RAP”) for distribution of these revenues. In


Des 19 O7 O2:32p Sarah Greene 7608782311 p.12

CERTIFICATION

IT IS H 3REBY RESOLVED THAT THE FOREGOING WAS ADOPTED BY THE
GOVEF NING BODY OF THE FORT INDEPENDENCE RESERVATION AT A
DULY ‘ALLED MEETING AT WHICH A QUORUM WAS PRESENT ON THE 3°°
DAY O? OCTOBER 2007, BY A VOTE OF 1s FOR, /_ AGAINST, AND

7 ABSTENTIONS, THIS RESOLUTION AHS NOT’BEEN CHANGED OR
AMENI)ED IN ANY WAY.

/

é
& ~ Se

Carl Da lberg, ChairmatY

ATTES?:

ip +f

Wi thae. maa. Lb-3-0F
Stepliar ie Arman, Date

Secreta y/Treasurer


check, a credit report, and interviews with the personal references listed.
Section 305. Vendor License Fee

The Tribe may charge a license fee, to be set by the Tribal Gaming Commission, to cover
its expenses in investigating and licensing vendors of the gaming operation.

Section 306. Vendor Background Investigation Report

The private investigator shall complete an investigative report covering each of the steps
taken in the background investigation of the gaming vendor and its principals and present
it to the Tribal Gaming Commission.

Section 307. Exemption for Vendors Licensed by Recognized Regulatory Authorities

All federally or state regulated banks are exempt from the requirements of obtaining a
license under this Ordinance. The Tribal Gaming Commission may adopt regulations
naming specific licensing authorities that it recognizes and may authorize exemptions to
the vendor licensing process for vendors which have received a license from one of the
named regulatory authorities.

Section 308. Licenses for Non-Gaming Vendors

For non-gaming vendors, the Tribal Gaming Commission is authorized to create a less
stringent vendor licensing process, including a due diligence check rather than a full
background investigation as laid out in Section 304. The Gaming Commission may

investigate such vendors when appropriate and may conduct audits in addition to
monitoring Tribal purchases.

Section 309. Sovereign Immunity.

Nothing contained in this Ordinance is intended to nor does in anyway limit, alter,
restrict, or waive the Tribe's sovereign immunity from unconsented suit or action.

26


REVISED MODEL GAMING ORDINANCE

a

Section 101. Purpose

The Fort Independence Indian Reservation, also recognized by the United States
under the name “Fort Independence Indian Community of Paiute Indians of the
Fort Independence Reservation, California” (the “Tribe”), is a federally
recognized sovereign Indian Tribe established pursuant to the Articles of
Association of the Fort Independence Indian Community, as amended in 2004,
exercising jurisdiction over all lands owned by the United States for the benefit of
the Tribe, hereby enacts this ordinance in order to govern Class I] and Class III
gaming operations on the Tribe’s Indian lands.

Section 102. Definitions

Unless a different meaning is clearly indicated in this Ordinance, the terms used
herein shall have the same meaning as defined in the Indian Gaming Regulatory
Act (IGRA), 25 U.S.C. § 2701 et seq., and its regulations, 25 C.F.R. § 500 et seq.
Specifically:

(a) Board of Directors means the Tribal Gaming Board of Directors, who
shall serve as primary management officials in overseeing the General Manager
and the day-to-day non- regulatory aspects of the gaming operation.

(b) Class I gaming means social games solely for prizes of minimal value or
traditional forms of Indian gaming engaged in by individuals as a part of, or in
connection with, tribal ceremonies or celebrations.

(c) Class II gaming means:

(1) the game of chance commonly known as bingo (whether or not
electronic, computer, or other technologic aids are used in connection
therewith):

(A) which is played for prizes, including monetary Prizes, with
cards bearing numbers or other designations,

(B) in which the holder of the card covers such numbers or
designations when objects, similarly numbered or designated, are
drawn or electronically determined, and

(C) in which the game is won by the first person covering a
previously designated arrangement of numbers or designations on
such cards, including (if played in the same location) pull-tabs,
lotto, punch boards, tip jars, instant bingo, and other games similar
to bingo, and


301. Licenses for Vendors
302. Submission of a Vendor License Application

303. Contents of the Vendor License Application

304. Vendor Background Investigation

305. Vendor License Fee

306. Vendor Background Investigation Report

307. Exemption for Vendors Licensed by Recognized
Regulatory Authorities

308. Licenses for Non-Gaming Vendors

309. Sovereign Immunity

24
24

24
25
26
27

27
27


(3) Members shall not solicit or accept any gift or other item of monetary value,
including complimentary items or services (see Section 111, below), from any
person or entity seeking official action or inaction from, doing business with, or
conducting activities regulated by the member’s organization, or whose interests
may be substantially affected by the performance or nonperformance of the
Members’ duties.

(4) Members shall make no unauthorized commitments or promises of any kind
purporting to bind the Tribe.

(5) Members shall not use their positions for private gain.

(6) Members shall act impartially, in accordance with all relevant Tribal, Federal,
and State laws (where applicable), and shall not give preferential treatment to any
private organization or individual, including to any persons related to Members.
(7) Members shall ensure that Tribal property and gaming assets shall be properly
segregated and safeguarded, and that such property and assets shall not be used
for unauthorized activities.

(8) Per Capita distributions, if any, are not considered financial interests that
would conflict with the conscientious performance of duty by a manager or
regulator.

(9) Members shall not engage in outside employment or activities, including
seeking or negotiating for future employment, which conflict with their official
duties and responsibilities.

(9) Members shall disclose waste, fraud, abuse, and corruption to appropriate
authorities.

(10) Members shall endeavor to avoid any actions creating the appearance that
they are violating the law or the ethical standards listed herein.

(11) Members shall disclose any real or apparent financial or personal conflicts. If
there is a real conflict or the appearance of one, the member shall not take part in
any decision related to the conflict.

Section 112. Complimentary Items

(a) The use of complimentary items shall be governed by regulations established by the
Tribal Gaming Commission.

(b) No Key Employee, Primary Management Official, Tribal Council member, member
of the Gaming Board of Directors or Tribal Gaming Commission, or any person directly
related to or sharing a residence with the persons, shall be authorized to receive
complimentary items other than food and beverages valued at under five dollars, or, if at
a public event held at the gaming facility, the free food and beverages offered to the
general public.

(c) Complimentary Items shall be included in the annual budget for the gaming operation,
with maximum limits specified, and shall be subject to approval by the Tribal Council.

15


2719.
(1) Indian Tribe or Tribe means the Fort Independence Indian Reservation.
(m) Key Employee means:

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

(A) Bingo caller;

(B) Counting room supervisor

(C) Chief of security;

(D) Custodian of gaming supplies or cash;

(B) Floor manager;

(F) Pit boss;

(0) Dealer;

(H) Croupier;

(1) Approver of credit; or

(J) Custodian of gambling devices including persons with access to
cash and accounting records within such devices;

(2) If not otherwise included, any other person whose total cash
compensation is in excess of $50,000 per year; or

(3) If not otherwise included, the four most highly compensated persons in
the gaming operation.

(n) NIGC means the National Indian Gaming Commission.

(0) Net Revenues means gross gaming revenues of an Indian gaming operation
less

(1) Amounts paid out as, or paid for, prizes; and
(2) Total gaming-related operating expenses, excluding management fees.

(p) Primary Management Official means

(1) The person (s) having management responsibility for a management
contract;
(2) Any person who has authority:

(A) To hire and fire employees; or

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

(C) The chief financial officer or other person who has financial
management responsibility.


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.

Section 208. Procedures for Forwarding Applications and Reports for Key
Employees and Primary Management Officials to the National Indian Gaming
Commission

(a) When a key employee or primary management official is employed to work at a
gaming operation authorized by this ordinance, the Commission 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 section
207 of this section.

(b) 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.

Section 209. Report to the National Indian Gaming Commission

(a) The Tribal Gaming Commission shall prepare and forward a report on each
background investigation to the National Indian Gaming Commission. An investigative
report shall include all of the following:

(1) Steps taken in conducting a background investigation;
(2) Results obtained;

(3) Conclusions reached; and

(4) The bases for those conclusions.

(b) The Commission shall forward the completed investigative report 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.

(c) The Commission shall submit, with the investigative report, a copy of the eligibility
determination, unless the NIGC shall have advised the Tribe that the submission of the
eligibility determination is not necessary. This determination shall include a statement
describing how the information submitted by the applicant was verified; a statement of
results following an inquiry into the applicant's prior activities, criminal record, if any,
and reputation, habits and associations; a statement showing the results of interviews of a
sufficient number of knowledgeable people (such as former employers, personal
references, and others referred to by the applicant) in order to provide a basis for the
Tribal Gaming Commission to make a finding concerning the eligibility for licensing
required for employment in a gaming operation; and a statement documenting the

21


ONAL Ig
Z.

o*
ws “ay
Sp

“ON w

“NV, \o
JAN 11 2008 comm

Carl Dahlberg, Chairman

Fort Independence Indian Reservation
P.O. Box 67

Independence, CA 93526

FAX (760) 878-2311

Re: Submission of Fort Independence Indian Reservation Tribal Gaming Ordinance
Dear Chairman Dahlberg:

This letter responds to your request to the National Indian Gaming Commission (NIGC)
to review and approve the tribal gaming ordinance of the Fort Independence Indian
Reservation (Tribe). The Tribe forwarded the ordinance by Resolution 2007-17 on
October 3, 2007, and the NIGC received the ordinance on October 16, 2007.

The ordinance is consistent with the requirements of the Indian Gaming Regulatory Act
(IGRA) and this agency’ s regulations, and it is therefore approved. However, we note

Philip N. Hogen
Chairman

cc: John Peebles, Esq.
Fredericks Peebles & Morgan LLP
1001 Second Street
Sacramento, CA 95814
FAX (916) 441-2067

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.Gov

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


operation;

(7) Establish employee policies, rates of pay, and horns of work;

(8) Adopt an annual operating budget, subject to Tribal Council approval;

(9) Enter into contracts on behalf of the gaming facility, subject to Tribal Council
approval and NIGC review;

(10) Hold hearings on employee complaints, in compliance with procedures
established in the gaming ordinance and other Tribal gaming regulations or
personnel policies; and

(11) Any other duties necessary to monitor and oversee the gaming operation.

(f) The Fort Independence Reservation Business Committee and Tribal Council recognize
the importance of an independent Tribal Gaming Board of Directors in maintaining a
well-managed gaming operation. To avoid potential conflicts of interest between the
operation and regulation of the gaming facility, the Tribe hereby finds that, at a
minimum:

(1) Members of the Board of Directors are prohibited from gambling in the
facility; and

(4) Members of the Board of Directors are prohibited from accepting
complimentary items from the gaming operation other than food and beverage
items.

(g) Members of the Board of Directors may be removed from office by the Tribal
Council prior to the expiration of their respective terms only for neglect of duty,
misconduct, malfeasance, or other acts that would render the Director unqualified for
his/her position. When the Tribal Council believes that a removal is appropriate, it shall
so notify the Director(s) and hold a hearing on the matter. The Tribal Council may opt to
preliminarily remove the Director pending the hearing. At the hearing the Director may
provide evidence rebutting the grounds for his/her removal. A vote of the Tribal Council
on the validity of the preliminary removal shall be final and not subject to further appeal.
A finding by the Tribal Council that the preliminary removal was wrongful shall entitle
the affected Director to compensation for expenses incurred in appealing the wrongful
removal, and shall entitle the Director to any pay withheld.

(h) Members of the Tribal Gaming Board of Directors shall be compensated at a level
determined by the Business Committee.

Section 109. Gaming Commission

(a) The Tribe hereby establishes a Tribal Gaming Commission whose duty it is to
regulate tribal gaming operations. The Tribal Gaming Commission shall consist of three
members. There shall be among them a Chairperson, Vice- Chairperson, and at least one
additional Commissioner.

(b) The purpose of the Tribal Gaming Commission is regulatory, not managerial. The
Commission will conduct oversight to ensure compliance with Tribal, Federal, and, if


doing so, the Tribe shall ensure that the Revenue Allocation Plan for Gaming Revenues
(“RAP”) shall comply with all applicable federal and tribal laws.

Section 108. Board of Directors

(a) In addition to the General Manager for the facility, there shall be established a Tribal
Gaming Board of Directors which shall serve in a management oversight role over the
General Manager and the day-to-day operations of the gaming operation. In the event that
the Tribe enters into a management contract approved by the NIGC, the Board may
delegate some or all duties to the approved management contractor. The Board of
Directors shall oversee all non-regulatory aspects of the gaming operation. Regulation of
the gaming operation shall be the sole responsibility of the Tribal Gaming Commission.

(b) The Board of Directors shall consist of three (3) members; initially the Board of
Directors shall be the Chairman, Vice- Chairperson, and Secretary/ Treasurer of the
Business Committee. Terms of office for members of the Tribal Gaming Board of
Directors shall be two years each. Thereafter shall be the Business Committee and shall
be for the same term as their term of office and shall be subject to the same background
requirements as key employees and primary management officials, and must be licensed
accordingly. The minimum requirements for appointment as a member of the Board of
Directors are as follows:

One [or two] of the following:
+ Degree in Business Administration, Accounting, Marketing, or an equivalent
field;
* Minimum five (5) years experience in business management;
+ Minimum two (2) years experience in casino management; or
* Demonstrated knowledge of federal Indian law, the Indian Gaming Regulatory
Act, and related statutes and regulations.

OR

A basic knowledge of gaming management, business, finance, or law.
and No bankruptcy within 10 years, no felony convictions or for moral turpitude
per articles of association

(c) The Board of Directors shall perform the following duties:

(1) Monitor and oversee the day-to-day operations of the gaming facility, whether
managed by a tribal employee or by an approved management contractor;

(2) Inspect and examine on a periodic basis all books, records, and papers of the
gaming facility;

(3) Set hours of operation for the gaming facility;

(4) Set wager limits;

(5) Develop marketing plans;

(6) Oversee the interview, selection, and training of employees of the gaming


De,

19 07 02:32p

WHEREAS:

WHEREAS:

WHEREAS:

WHEREAS:

WHEREAS:

Sarah Greene 7608782311

The Fort Independence Indian Reservation will conduct its gaming
activity on its Indian lands; and

The Fort Independence Indian Reservation has the exclusive right to
regulate gaming activity on its Indian lands because the gaming activity
will be conducted pursuant to the Indian Gaming Regulatory Act
(“IGRA”) and is within the a state that does not, as a matter of criminal
law and public policy, prohibit such gaming; and

The gaming activity by the Fort Independence Indian Reservation will
produce capital which the Tribe can use to also promote Tribal economic
development, Tribal self-sufficiency, and strong Tribal government; and

The Fort Independence Indian Reservation General Council reviewed and
considered, at a duly called General Council Meeting, the Fort
Independence Indian Reservation Tribal Gaming Ordinance; and

The General Council has determined that it is in the best interest of the
Tribe to adopt the Fort Independence Indian Reservation Tribal Gaming
Ordinance;

NOW 1 HEREFORE, BE IT RESOLVED, that the Fort Independence Indian
Reserve tion hereby adopts the Fort Independence Indian Reservation Tribal Gaming

Ordinar ce.

BE IT ‘“‘URTHER RESOLVED, that the Tribe's attorneys, Fredericks Peebles &
Morgar LLP, are directed to submit the adopted Fort Independence Indian Reservation
Tribal (-aming Ordinance to the National Indian Gaming Commission.

BE IT ''URTHER RESOLVED, that the effective date of the Fort Independence Indian
Reserve tion Tribal Gaming Ordinance shall be the date that the Chairman of the National
Indian (jaming Association approves this Ordinance.

211


Des 19 07 02:32p

Sarah Greene 7608782311

Fort INDEPENDENCE INDIAN RESERVATION

WHEREAS:

WHEREAS:

WHEREAS:

WHEREAS:

WHEREAS:

P.O. Box 67 ¢ IxnrPENpencr, CA 93526 * (760) 878-2126 * Fax (760) 878-2311

RESOLUTION 2007-17

FORT INDEPENDENCE INDIAN RESERVATION
TRIBAL GAMING ORDINANCE

RECITALS

The Fort Independence Indian Reservation, also recognized by the United
States under the name ‘Fort Independence Indian Community of Paiute
Indians of the Fort Independence Reservation, California” (“the Tribe”), is
a federally recognized sovereign Indian tribe established pursuant to the
Articles of Association of the Tribe (the “Articles of Association”) and
exercising jurisdiction over all lands owned by the United States for the
benefit of the Tribe; and

The General Council of the Tribe (the “General Council”) is the governing
body of the Tribe pursuant to Article III, Section 1 of the Articles of
Association; and

The Tribe through its General Council is empowered to manage all
economic affairs and enterprises of the Tribe, pursuant to Article V,
Section 1, subsection F, of the Articles of Association; and

The protection, safety and welfare of all persons, including, but not limited
to, the preservation of education, economic and employment
opportunities, and preservation of cultural and natural resources, within
Tribal jurisdiction of the Fort Independence Indian Reservation, are
primary goals and objectives of the General Council; and

The operation of class IT and class If] gaming, subject to the terms and
provisions of this Tribal Gaming Ordinance and all applicable laws, will
provide funds for the continued operation and strengthening of the Fort
Independence Indian Reservation Tribal government and the delivery of
its governmental services; and


(2) card games that:

(A) are explicitly authorized by the laws of the State, or

(B) are not explicitly prohibited by the laws of the State and are
played at any location in the State, but only is such card games are
played in conformity with those laws and regulations (if any) of
the State regarding hours or periods of operation of such card
games or limitations on wagers or pot sizes in such card games.

(3) The term “Class II gaming” does not include:

(A) any banking card games, including baccarat, chemin de fer, or
blackjack (21), or

(B) electronic or electromechanical facsimiles of any game of
chance or slot machines of any kind.

(d) Class II gaming means all forms of gaming that are not class I gaming or
class II gaming.

(e) Commission means the Tribal Gaming Commission established to perform
regulatory oversight and to monitor compliance with Tribal, Federal, and
applicable State regulations.

(f) Commissioner means a Tribal Gaming Commissioner.

(g) Compact means a Tribal-State Compact concerning class III gaming
approved by the Secretary of the Interior and published in the Federal Register
pursuant to 25 U.S.C. § 2710(d).

(h) Complimentary shall have the meaning as set forth in 25 C.F.R. §542.2 (a).

(i) Directly related to means a spouse, child, parent, grandparent, grandchild,
aunt, uncle, or first cousin.

(j) Director means a Member of the Tribal Gaming Board of Directors.
(k) Indian lands means:

(1) all lands within the limits of the Tribe’s reservation;

(2) any lands title to which is either held in trust by the United States for
the benefit of the Tribe or individual or held by the Tribe or individual
subject to restriction by the United States against alienation and over
which the Indian Tribe exercises governmental power; and

(3) for all lands acquired into trust for the benefit of an Indian tribe after
October 17, 1988, the lands meet the requirements set forth in 25 U.S.C. §


perform background investigations according to requirements at least as stringent as 25
C.F.R. Parts 556 and 558.

Section 202. License Application Forms

(a) The following notice shall be placed on the application form for a key employee or a
primary management official:

“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 Tribe and the National Indian Gaming Commission members
and staff who have need for the information in the performance of their official
duties. The information may be disclosed to appropriate Federal, Tribal, State,
local, or foreign law enforcement and regulatory agencies when relevant to civil,
criminal or regulatory investigations or prosecutions or when necessary 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 investigation of activities while associated with a Tribe or a
gaining operation. Failure to consent to the disclosures indicated in this notice
will result in a Tribe 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 errors in processing your application.”

(b) The following additional notice shall be placed on the application form for a key
employee or a primary official:

A false statement on any part of your application will be grounds for not hiring you, or
for firing you after you begin work. Also, you may be punished by fine or imprisonment.
(U.S. Code, Title 18, section 1001)

(c) The Commission shall notify in writing existing key employees and primary
management officials who have not completed an application containing the notices set
forth above that they shall either:

(1) Complete a new application form that contains both the Privacy Act and false
statement notices; or

(2) Sign a statement that contains the Privacy Act and false statement notices and
consent to the routine uses described in that notice.

18


Section 301. Licenses for Vendors

(a) Vendors of gaming services or supplies with a value of $25,000 or more annually
must have a vendor license from the Tribal Gaming Commission in order to transact
business with the Tribal gaming operation. Contracts for professional legal and
accounting services are excluded from this section.

(b) Gaming vendors are vendors who provide gaming supplies and services, including
cash-related services.

(c) Non-gaming vendors provide services that do not have the ability to impact the
integrity of the Tribal gaming operations, such as media advertising, facility maintenance
workers, linen and laundry services, and food and beverage suppliers. The Tribal Gaming
Commission shall create a regulation detailing which vendors fall into this category and
shall maintain a register of the non-gaming vendors that it licenses. The regulation may
exempt from licensing requirements non-gaming vendors who: 1) are a Tribal, Local,
State, or Federal government agencies; 2) are regulated by the State of California or the
Tribe; or 3) will provide goods of insubstantial or insignificant amounts or quantities if
the Tribal Gaming Commission determines that licensing of the vendor is not necessary
to protect the public interest.

Section 302. Submission of a Vendor License Application

In order to obtain a gaming vendor license, the business must complete a vendor
application and submit to background checks of itself and its principals. Principals of a
business include its officers, directors, management, owners, partners, non-institutional
stockholders that either own 10% or more of the stock or are the 10 largest stockholders,
and the on-site supervisor or manager under the agreement with the Tribe, if applicable.

Section 303. Contents of the Vendor License Application
(a) Applications for gaming vendor licenses must include the following:

(1) Name of business, business address, business phone, federal tax ID number
(or SSN if sole proprietorship), main office address if different from business
address, any other names the applicant has done business under, type of service
applicant will provide;

(2) Whether the applicant is a partnership, corporation, limited liability company,
sole proprietorship, or other entity;

(3) If the applicant is a corporation, the state of incorporation, and the
qualification to do business in the State of California if the gaming operation is in
a different State than the State of incorporation.

(4) Trade name, other names ever used, names of any wholly owned subsidiaries
or other businesses owned by the vendor or its principals;

(5) General description of the business and its activities;

(6) Whether the applicant will be investing in or loaning money to the gaming

24


Gaming Ordinance and Resolution shall be considered to have been approved by you
pursuant to 25 C.F.R. Part 522.9.

Thank you for your prompt approval of this Tribal Gaming Ordinance.

lod Lpbuby—

Carl Dahlberg, Chairman
Fort Independence Indian Reservation

ce: Encl.


or records by the Commission and staff in the performance of their official duties.

(h) Terms of Office for Tribal Gaming Commissioners shall be as follows: the Chair
shall serve an initial term of one year, with subsequent Chairs serving three-year terms.
The Vice-Chair and Commissioner(s) shall serve an initial term of two years, with
subsequent Vice-Chairs and Commissioners serving three-year terms.

(i) The following persons are not eligible to serve as Tribal Gaming Commissioners:
Business Committee members, while serving as such; employees of the gaming
operation, while serving as such; gaming contractors (including any principal of a
management or other contracting company); persons ineligible to be key employees or
primary management officials; non- tribal members. Tribal members previously
convicted of a felony, of embezzlement, of theft, or of any other money-related crime or
honesty-related crime (such as fraud), crimes of moral turpitude, or who have filed for
bankruptcy within the 10 years preceding their appointment to the Gaming Commission
cannot serve as Tribal Gaming Commissioners. The Tribal Council shall require a
criminal history check with appropriate law enforcement agencies and shall review this
criminal history report and make an appropriate suitability determination before
appointing an individual to a position as a Tribal Gaming Commissioner.

(j) The independence of the Tribal Gaming Commission is essential to a well-regulated
gaming operation. For that reason, Commissioners may only be removed from office by
the Fort Independence Tribal Council prior to the expiration of their respective terms for
neglect of duty, misconduct, malfeasance, or other acts that would render a commissioner
unqualified for his/her position. Any allegations of neglect of duty, misconduct,
malfeasance, or other acts that would render him or her unqualified for his/her position
must be substantiated by a preponderance of the evidence. Commissioners will be given
an opportunity to provide evidence rebutting the evidence for their proposed removal
before the removal is considered. A vote of the Fort Independence Tribal Council on the
validity of the removal shall be final and not subject to further appeal. A wrongful
removal shall entitle the affected Commissioner to compensation for expenses incurred in
an appeal and any pay withheld.

(k) A majority of the Commission shall constitute a quorum. The concurrence of a
majority of the members appointed to the Commission shall be required for any final
determination by the Commission. The Commission may act in its official capacity even
if there are vacancies on the Commission.

(1) Tribal Gaming Commissioners shall be compensated at a level determined by the
Business Committee. Commissioner compensation shall not be based on a percentage of
gaming revenue to ensure the Commission is not improperly influenced.

(m) The Commission shall keep a written record of all its meetings.

11


(13) | Employing or possessing any Cheating device or to facilitate Cheating in
any Gaming Activity.

(14) Willfully using any fraudulent scheme or technique to change the odds of
any Game of Chance.

(15) — Soliciting, directly or indirectly, or using inside information on the nature
or status of any Gaming Activity for the benefit of an individual.

(16) Tampering with a Gaming Device, attempting to conspire to manipulate
the outcome or the payoff of a Gaming Device, or otherwise unlawfully
tampering with or interfering with the proper functioning of the machine.

(17) Alter or counterfeiting a Gaming license.

(18) Aiding, abetting, or conspiring with another Person knowingly or
knowingly to cause any Person to violate any provision of this Ordinance or any
rules and regulations adopted hereunder.

(19) Operating, using or making available to the public any illegal Gaming
Device, apparatus, material or equipment.

(20) Selling, holding out for sale or transporting into or out of the jurisdiction
of the Tribe any illegal Gaming Device, apparatus, material or equipment.

(21) Assisting or allowing a Person who is under the age of Eighteen (18) to
participate in a Gaming activity.

(22) _ Possessing any illegal narcotics or controlled substances on any licensed
Gaming site.

(23) Stealing or attempting to steal funds or other items of value from any
Gaming Facility or from the Tribal Gaming Commission.

(24) | Employing any Person at a licensed Gaming Facility whom the Licensee
knows has been convicted of a Gaming crime or a crime of fraud.

(d) Criminal Violation: Any Indian who violates or fails to comply with any provision of
this Ordinance, or who fails or neglects to comply with any order, decision of the Tribal
Gaming Commission, shall be charged and given due process pursuant to this Ordinance
and the Gaming Regulations adopted by the Tribal Gaming Commission pursuant to this
Ordinance. If such Indian is found to be guilty of a crime, he may be required to pay a
fine not to exceed Five Thousand Dollars ($5,000). Each day during which any such
violation or failure to comply continues shall constitute a separate violation of this
Ordinance.

(e) Civil Violation: Any non-Indian who violates or fails to comply with any
provision of this Ordinance, or who fails or neglects to comply with any final order of the
Tribal Gaming Commission, shall be charged and given due process pursuant to this
Ordinance, and the Gaming Regulations adopted by the Tribal Gaming Commission
pursuant to this Ordinance. If the non-Indian is found liable, he may pay a civil fine not
to exceed Five Thousand Dollars ($5,000) for each violation thereof. Each day during
which any such violation or failure to comply continues shall constitute a separate
violation of this Ordinance. The amount of any such civil fine may be recovered in a
civil action in an appropriate court of civil jurisdiction.

13


“ § 522.2(a)- meeting | TGO Resolution TGO - entire
standards of Part document
522.4(b) or 522.6
« § 522.2(b) § 201 through 212,
generally; and
§ 202, specifically
“ § 522.2(c) § 201 through 212,
1 generally
_ § 522.2(d) None exist at this
| point, none attached
| “ § 522.2(e) No tribal-state
| compact exists at
| this time. |
L_* § 522.2(f)_ [§ 115
[| * § 522.2(g) [§1i7
i * | § 522.2(h) ‘| § 204 through 206
§ 522.4(b) § 522.4(b)(1) § 104
“ 1 §522.4()2)_ “$105
“ § 522.4(b)(3) § 113
“ § 522.4(b)(4) § 113
“ § 522.4(b)(5) § 201 through 212
i § 522.4(b)(6) § 116
{“ § 522.4(b)(7) §1l4
| § 522.6 (a) 522.2, generally See above items
listing
corresponding
sections of the
Tribal Gaming
| Ordinance that are
| in compliance with
| § 522.2
§ 522.6(b)
“ § 522.4(b)(2) § 105
“ § 522.4(b)(3) § 113
“ § 522.4(b)(4) § 113
“ | § 522.4(b)(5) § 201 through 212
“ § 522.4(b)(6) § 116
“ § 522.4(b)(7) § 114
§ 522.4(c) § 104

We ask that you approve this Tribal Gaming Ordinance no later than 90 days from
the date of this submission, pursuant to 25 C.F.R. Parts 522.4 and 522.6. We ask that you
also publish our Tribal Gaming Ordinance and Resolution in the FEDERAL REGISTER
with your approval, pursuant to 25 C.F.R. Part 522.8. If you should fail to approve or
disapprove the Tribal Gaming Ordinance within 90 days of this submission, the Tribal


disposition of all potential problem areas noted and disqualifying information obtained.
(d) If a license is not issued to an applicant, the Tribal Gaming Commission:

(1) Shall notify the NIGC; and

(2) Shall forward copies, of its eligibility determination and investigative report
(if any) to the NIGC for inclusion in the Indian Gaming Individuals Records
System.

(e) With respect to all employees, and in particular key employees and primary
management officials, the Tribal Gaming Commission shall retain applications for
employment and reports (if any) of background investigations for, inspection by the
Chairman of the NIGC or his or her designee for no less than three (3) years from the
date of termination of employment.

Section 210. Granting a Gaming License

(a) If, within a thirty (30) day period after the National Indian Gaming Commission
receives a report, the National Indian Gaming Commission 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 for whom the Tribe has provided an
application and investigative report to the National Indian Gaming Commission, the
Tribal Gaming Commission, acting for the Tribe, may issue a license to such applicant.

(b) The Tribal Gaming Commission 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 30-day period under paragraph (a) of this section until the Chairman of
the National Indian Gaming Commission receives the additional information.

(c) If, within the thirty (30) day period described above, the National Indian Gaming
Commission provides the Tribe with a Statement itemizing objections to the issuance of a
license to a key employee or to a primary management official for whom the Tribal
Gaming Commission has provided an application and investigative report to the National
Indian Gaming Commission, the Tribe shall reconsider the application, taking into
account the objections itemized by the National Indian Gaming Commission. The Tribe
shall make the final decision whether to issue a license to such applicant.

Section 211. License Suspension

(a) If, after the issuance of a gaming license, the Tribal Gaming Commission receives
from the National Indian Gaming Commission reliable information indicating that a key
employee or a primary management official is not eligible for employment, the Tribal
Gaming Commission shall suspend such license and shall notify in writing the licensee of
the suspension and the proposed revocation.

22


Fort INDEPENDENCE INDIAN RESERVATION
CA 93526 * (760) 878-2126 * Fax (760) 878-2311

P.O. Box 67 ¢  INDEPEND

2

16 np

October 5, 2007

Mr. Phillip Hogen, Chairman
National Indian Gaming Commission
1441 L Street NW

Suite 9100

Washington, DC 20005

Re: Submission of Fort Independence Indian Reservation Tribal Gaming Ordinance
Dear Chairman Hogen:

The Fort Independence Indian Reservation, also recognized by the United States
under the name “Fort Independence Indian Community of Paiute Indians of the Fort
Independence Indian Reservation, California” (“the Fort Independence Indian
Reservation” or “Tribe”) adopted the Fort Independence Indian Reservation Tribal
Gaming Ordinance (“Tribal Gaming Ordinance”) on October 3, 2007. Our Tribal
Gaming Ordinance is drafted so as to regulate both class II and class III gaming on our
Reservation. We are submitting our Tribal Gaming Ordinance for approval by the
Chairman pursuant to 25 C.F.R. Parts 522.2, 522.4 and 522.6.

To aid you in evaluating our Tribal Gaming Ordinance, please see the following
table of the applicable C.F.R. provisions under which this Tribal Gaming Ordinance is
submitted, that sets forth the relationship between the applicable C.F.R. provisions and
the related Tribal Gaming Ordinance provisions. There are no attachments other than (1)
the Tribal Gaming Ordinance; and (2) the Resolution of the Fort Independence Indian
Reservation adopting the Tribal Gaming Ordinance and signed by Chairman Carl
Dahlberg. The Tribe has yet to appoint its Tribal Gaming Commission; therefore no
Tribal Gaming Regulations have been promulgated at this time. In addition, the Tribe
does not have a tribal-state gaming compact at this time.

25 C.F.R. Part Related and Cross- | Document Applicable or
Referenced Attached with Related TGO
25 C.F.R. Part Submission Provision

§ 522.4 (a) 522.2, generally “See below

yo.


operation and, if so, how much;

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

(8) A list of Indian tribes with which the vendor has an existing or previous
business relationship, including ownership, financial, or management interests in
non-gaming activities or, if the vendor does extensive business with tribes, then a
list of the top ten (10) tribes;

(9) Names, addresses, and phone numbers of three business references with whom
the company had regularly done business for the last five years;

(10) The name and address of any licensing or regulatory agency with which the
business has filed an application for a license or permit related to gaming, whether
or not such license or permit was granted;

(11) If the business has ever had a license revoked for any reason, the
circumstances involved;

(12) A list of lawsuits to which the business has been a defendant, including the
name and address of the court involved, and the date and disposition if any;

(13) List the business’ funding sources and any liabilities of $50,000 or more.
(14) A list of the principals of the business, their social security numbers,
addresses and telephone numbers, title, and percentage of ownership in the
company; and

(15) Any further information the Tribe deems relevant.

(b) The following notice shall be placed on the application form for a vendor and its
principals:

Inclusion of false or misleading information in the vendor application may be
grounds for denial or revocation of the Tribe’s vendor license.

(c) A vendor may submit a copy of a recent license application to another jurisdiction if it
contains the information listed above. The vendor will be required to submit in writing
any changes in the information since the other license application was filed and any
information requested by the Tribe not contained in the other application.

Section 304. Vendor Background Investigation

The Tribal Gaming Commission shall employ or otherwise engage a private investigator
complete an investigation of the gaming vendor. This investigation shall contain, at a
minimum, the following steps:

(a) Verify of the business’ incorporation status and qualification to do business in the
State where the gaming operation is located;

(b) Obtain a business credit report, if available, and conduct a Better Business Bureau
check on the vendor;

(c) Conduct a check of the business’ credit history;

(d) Call each of the references listed in the vendor application; and

(e) Conduct an investigation of the principals of the business, including a criminal history

25


applicable, State laws and regulations. The Commission will serve as the licensing
authority for individuals employed in the gaming operation and will administer
background investigations as part of the licensing process. The Commission will also
have a role in monitoring compliance with the internal controls for the gaming operation
and in tracking revenues. In order to carry out its regulatory duties, the Commission shall
have unrestricted access to all areas of the gaming operation and to all records. The
Commission shall have authority to take enforcement actions, including suspension or
revocation of an individual gaming license when appropriate.

(c) The Tribe recognizes the importance of an independent Tribal Gaming Commission in
maintaining a well-regulated gaming operation. The Commission shall be and act
independently and autonomously from the Tribal Council in all matters within its
purview. No prior or subsequent review by the Tribal Council of any actions of the
Commission shall be required or permitted except as otherwise explicitly provided in this
Ordinance. To avoid potential conflicts of interest between the operation and regulation
of the gaming facility, the Tribe hereby finds that, at a minimum:

(1) Members of the Gaming Commission are prohibited from gambling in the
facility; and

(2) Members of the Gaming Commission are prohibited from accepting
complimentary items from the gaming operation, excepting food and beverages
valued at under fifty dollars.

(d) Tribal Gaming Commissioner positions shall be filled in the following manner:
Through appointment by the Fort Independence Indian Reservation Business Committee.

(e) Nominees for positions of Tribal Gaming Commissioner must satisfy the suitability
standards set forth for key employees and primary management officials, found in
Section XIII of this ordinance. Such background investigations shall be performed under
the direction of the Inyo County Sheriff.

(f) The Tribal Gaming Commission shall:

(1) Conduct or cause background investigations to be conducted on, at a
minimum, primary management officials and key employees;

(2) Review and approve all investigative work conducted;

(3) Report results of background investigations to the NIGC;

(4) Obtain and process fingerprints, or designate a law enforcement agency to
obtain and process fingerprints;

(5) Make licensing suitability determinations, which shall be signed by the
Chairman of the Gaming Commission;

(6) Issue gaming licenses to management officials and employees of the
operation, consistent with the suitability determination;

(7) Establish standards for licensing Tribal gaming operations;

(8) Issue facility gaming licenses to Tribal gaming operations;


Section 110. Enforcement

(a) Jurisdiction: Except as provided in this Ordinance or the Compact, the Tribal
Gaming Commission shall have jurisdiction over all violations of this Ordinance.

(b) Compliance with Federal Standards for Tribal Gaming Facility Audits: The Tribe and
the Tribal Gaming Commission shall conduct annual financial audits and “Agreed-Upon
Procedure” audits of its gaming operations and submit such audits to the NIGC. The
Tribe and its Tribal Gaming Commission shall maintain compliance with the provisions
of 25 C.F.R. §§ 571.12, 571.13, and 542.3(f)(1). The NIGC may conduct compliance
review audits of the Tribe’s Class III internal controls to assess compliance with the
standards set forth in this tribal gaming ordinance. The NIGC, in conducting such audits,
may use its standard audit procedures and the worksheets/checklists set forth in 25 C.F.R.
Part 542. The Tribe and the Tribal Gaming Commission will work with NIGC to
develop a process for reporting requirements and addressing any non-compliance issues
(if any) that may arise in the audit process.

(c) Prohibited Acts: In addition to other civil and criminal offenses provided for in this
Ordinance, the following acts are prohibited by any Person and subject any violator to the
civil or criminal penalties specified herein:

qd) Participating in any Gaming which is not authorized by this Ordinance.
(2) Knowingly making a false statement in connection with any Contract to
participate in any Gaming Activity.

(3) Attempting to bribe any Person participating in any Gaming Activity.
(4) Offering or accepting a loan, financing or other thing of value between a
member of the Board of Commissioners or employee of the Tribal Gaming
Commission and any Person participating in any Gaming Activity.

(5) Promoting or participating in any illegal Gaming Activity.

(6) Failing to keep sufficient books and records to substantiate receipts,
disbursements and expenses incurred or paid from any Gaming Activity
authorized pursuant to this Ordinance.

(1) Falsifying any books or records that relate to any transaction connected
with any Gaming Activity pursuant to this Ordinance.

(8) Conducting or participating in any Gaming Activity, which results in
Cheating.

(9) Allowing participation in Gaming Activity by or with an intoxicated or
disorderly Player.

(10) Allowing or participating in the sale of liquor when such sale is prohibited
by Tribal law.

(11) Accepting consideration other than money, or chips for participation in
any Gaming Activity.

(12) Using bogus or counterfeit chips or Charitable Gaming Tickets, or to
substitute or use any cards, Charitable Gaming Tickets or Gaming equipment that
has been marked or tampered with.

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