National Indian Gaming Commission 

SETTLEMENT AGREEMENT 

This Settlement Agreement ("Agreement") is entered into by and between the Puyallup 

Tribe of Indians ("Puyallup Tribe" or "Tribe"), a federally-recognized Indian tribe, and 

the Chairman of the National Indian Gaming Commission ("NIGC Chairman") relating 

to matters contained in Notice of Violation # 06-1 1 ("NOV-06-11") and an 

accompanying letter of concern fi-om the NIGC Chairman to the Chairman of the 

Puyallup Tribe. 

CONSENT FINDINGS 

1. The Puyallup Tribe conducts and licenses various gaming activities within the 

boundaries of the Puyallup Indian Reservation pursuant to the Indian Gaming 

Regulatory Act ("IGRA"), 25 U.S.C. §§2710-2721, the Puyallup Tribe of Indians 

Tribal Gaming Ordinance as approved by the NIGC Chairman, the NIGC's 

regulations, and other applicable tribal laws and regulations. 

2. The Puyallup Tribe adopted a Revenue Allocation Plan ("RAP") in November 

1997 to allow the Tribe to make per capita payments to its Tribal members fkom 

the net revenues of its gaming activities; and the RAP was approved by the 

Department of the Interior on April 10,1998. 

3. , The Puyallup Tribe repealed its original 1998 RAP and adopted its current RAP 

in July 2002, which was approved by the Department of the Interior on April 28, 

2003. 

4. The Puyallup Tribe's current RAP allows the Tribe to allocate its net gaming 

revenues. as follows: 

27.6% to Tribal Government Operations and Programs; 

35.4% to General Welfare of the Tribe and its Members; 

1.6% to Promote Tribal Economic Development; and 

35.4% for Monthly Per Capita Payments to Tribal Members. 

5. The Puyallup Tribe's current RAP fin-ther provides that: "[a] disbursement of net 

revenues made to minors and legal incompetents shall be deposited in individual 

trust accounts established by the Tribe . . . ." 
The Puyallup Tribe's current RAP further provides that: "a maximum of ThreeHundred Dollars ($300.00) of each monthly per capita payment will be disbursed 

to the parent(s) [of minors] or legal guardian(s) [of legal incompetents] to be used 

for the day-to-day health, education,and welfare of the minor or legal 

incompetent." 

7. The NIGC Chairman issued NOV-06-11 to the Puyallup Tribe on June 12,2006, 

which contained three separate counts, as follows: 

Count 1 of NOV-06-11 alleged that the Tribe has made monthly per capita 

payments of $2,000 to each tribal member since on or about May 2002, 

together with certain periodic "supplemental" or "bonus" distributions to 

all tribal members, which payments and distributions have exceeded 

35.4% of the Tribe's annual net gaming revenues for fiscal years 2003- 

2005, in deviation fiom the Tribe's approved RAP. 

Count 2 of NOV-06-11 alleged that through fiscal years 2003-2005, the 

Tribe has made deferred distributions of net gaming revenues to minors 

and legal incompetents into a single holding account owned and controlled 

by the Tribe, rather than into individual trust accounts as required by the 

Tribe's approved RAP. 

Count 3 of NOV-06-11 alleged that fiom on or about September 2004, the 

Tribe has disbursed $685 (less a federal tax withholding) of the 

$2,00Olmonth per capita payments for minors and legal incompetents 

directly to the parentslguardians of the minors or legal incompetents, in 

deviation fiom the Tribe's approved RAP. 

8. The.NIGC Chairman issued NOV-06-11 with an accompanying cover letter to the 

Chairman of the Puyallup Tribe, which expressed concern regarding evidence of 

several other potential problems with the Tribe's use of net gaming revenues, 

including the NIGC Chairman's concern that the Tribe may have been making 

non-interest bearing loans to tribal members that were not being repaid; that the 

Tribe may have been issuing payroll advances to tribal officials and employees 

that did not comply with the Tribe's payroll advance policy; and that the Tribe 

may have been cashing out unused annual leave for tribal officials and employees 

in violation of the Tribe's annual leave policy. 

9. The Puyallup Tribe initiated an administrative appeal of NOV-06-11 by timely 

filing a Notice of Appeal and Supplemental Statement, which set forth the Tribe's 

position on each count of the NOV as follows: 

The Tribe's position with regard to Count 1 of NOV-06-11 is that the 

Tribe's $2,000 monthly payments to each tribal member are authorized by 

both the "per capita" and "general welfare" provisions of its approved 

RAP, thus allowing a total allocation for these payments of 70.8% of the 

Tribe's net gaming revenues. 
The Tribe's position with regard to Count 2 of NOV-06-11 is that the 

individual trust accounts for minors and legal incompetents were 

established in November 2005, and that the deferred payment kds that 

had accumulated in the Tribe's single holding account were completely 

distributed to the individual trust accounts by July 19,2006. 

The Tribe's position with regard to Count 3 of NOV-06-11 is that the 

$685 (gross) payments to the parents and guardians of minors and legal 

incompetents derive from a combination of the Tribe's gaming and nongaming revenue, and that non-gaming revenue is used to pay the portion 

of the direct payments between $300 and $685. 

10. The Tribe's administrative appeal was assigned to the undersigned Presiding 

Official to conduct a hearing and issue a recommended decision, but upon joint 

motion by the Puyallup Tribe and the NIGC Chairman, the administrative appeal 

was stayed in order to allow the Tribe and the NIGC Chairman to pursue 

settlement negotiations. 

11. The Puyallup Tribe and the NIGC Chairman wish to enter this Agreement in 

order to preserve their longstanding relationship; avoid the expense, time and risk 

associated with litigation; and achieve an amicable resolution of the three counts 

contained in NOV-06-11, as well as the additional concerns referenced in the 

NIGC Chairman's cover letter to the Puyallup Tribe. 

12. Now, therefore, the Puyallup Tribe and the NIGC Chairman have agreed to enter 

into this Agreement and perform in accordance with the following covenants, 

acknowledgments, representations, and conditions: 

TERMS OF SETTLEMENT 

13. The terms of this Agreement shall be effective on the date that it is certified by the 

Presiding Official, after it is signed by both parties ("Effective Date"). 

14. Except as specifically provided below, the terms of this Agreement shall continue 

in force after the Effective Date until this Agreement may be terminated by 

written agreement, signed by both parties. Notwithstanding the preceding 

sentence, the Tribe's notification covenants, set forth in Paragraphs 23-25, will 

last for ten (10) years after the Effective Date; and the Tribe's reporting 

covenants, set forth in Paragraphs 26-27, will last for five (5) years after the 

Effective Date. With regard to the Tribe's per capita payment covenants in 

Paragraph 18, the NIGC Chairman acknowledges that the Puyallup Tribe may 

seek approval from the Department of the Interior of an amended RAP, and the 

NIGC Chairman agrees that, if and when the Department of the Interior approves 

an amended RAP that changes the percentages of Net Revenue that the Tribe may 

allocate to per capita payments, then the terms of the amended RAP will control 

the Tribe's per capita payments as set forth in Paragraph 18 of this Agreement. 
15. By entering this Agreement, the NIGC Chairman agrees to waive his right to issue 

another NOV, impose civil fines, or issue a temporary closure order regarding the 1 issues covered under this Agreement, as long as the Tribe complies with the terms 

of this Agreement. The Tribe acknowledges and agrees that if the Tribe fails to 

comply with the terms of this Agreement, the NIGC Chairman retains the 

authority as provided by law to pursue one or more enforcement actions for the 

violations that have caused a breach of the Agreement. 

16. The Puyallup Tribe acknowledges and agrees that the NIGC Chairman's waiver 

in Paragraph 15 above covers only those issues covered under this Agreement, 

and does not preclude or otherwise affect any new NOVs that the NIGC 

Chairman may issue regarding any other enforcement matter under the NIGC's 

jurisdiction, including, but not limited to, any NOV that the NIGC Chairman may 

issue with regard to any tribally-licensed business enterprise. 

17. For purposes of this Agreement, the term "Net Revenue" or "Net Revenues" shall 

mean a fiscal year total of: (i) gaming and related revenue received by the Tribe's 

gaming operations from customers, which includes amounts wagered, plus food, 

bar and entertainment revenue; (ii) less amounts paid out as, or paid for, prizes; 

(iii) less total gaming-related operational expenses, as defined by Generally 

Accepted Accounting Principles (GAAP), including food, bar and entertainment 

expenses; (iv) plus gaming funds received by the Tribe from any tribally-licensed 

gaming operation. For purposes of this Agreement, the term "fiscal year" shall 

mean the period of time from October lSt through the following September 3oth, 

except that for such period of time that includes the Effective Date, the tern 

"fiscal year" shall mean the beginning of the first month that begins after the 

Effective Date through the following September 30". Notwithstanding anything 

in this Agreement to the contrary, the,Puyallup Tribe and the NIGC agree to deem 

the definition of "Net Revenue," for purposes of this Agreement, to be modified 

by the provisions of any definition of net revenue or net gaming revenue that the 

NIGC may adopt as a final rule in the future. In agreeing to this provision, the 

Tribe retains the rights that any affected party would have when the NIGC 

proposes a new or amended regulation, including the right to comment and to 

contest a regulation through available administrative and judicial procedures. 

18. Beginning with the first month that begins after the Effective Date, the Tribe 

agrees to make per capita payments in a manner that uses no more than 35.4% of 

Net Revenue for each fiscal year. After the Effective Date, the Tribe may 

continue to make no more than two (2) monthly per capita payments of $2,000 

(gross) to each tribal member, and must thereafter reduce its monthly per capita 

payments to such level that the total per capita payments for the fiscal year will 

not exceed 35.4% of Net Revenue. Notwithstanding the preceding sentences in 

this Paragraph, if and when the Department of the Interior approves any 

amendment to the Tribe's RAP that changes the percentage of net gaming revenue 

that the Tribe may devote to per capita payments, the Tribe may then follow the 

percentage limitations in the newly-approved RAP amendment. For the fiscal 

year in which the Department of the Interior approves any such RAP amendment, 
the total amount of Net Revenue available for per capita payments shall be 

calculated as follows: 

(i) Take the total Net Revenue for the fiscal year and divide it by the 

number of months in the fiscal year. 

(ii) Multiply the figure in (i) by the number of months in the fiscal year 

1 before the Department of the Interior approved the RAP amendment. 

(iii) Multiply the figure in (ii) by 35.4%. 

(iv) Multiply the figure in (i) by the number of months in the fiscal year 

including and after the Department of the Interior approved the RAP 

amendment. 

(v) Multiply the figure in (iv) by the maximum percentage allowed for per 

capita payments in the amended RAP. 

(vi) Add the figures from (iii) and (v) to determine the total Net Revenue 

available for per capita payments in that fiscal year. 

19. The NIGC Chairman acknowledges that the Tribe may supplement its per capita 

payments with non-gaming revenue distributions at the Tribe's discretion, and 

nothing in this Agreement shall prohibit the Tribe from using non-gaming 

revenue to make such distributions. 

20. The Puyallup Tribe agrees either to: (i) treat any and all supplemental or bonus 

distributions to tribal members as per capita payments that must fall under the 

Tribe's percent-based limits to per capita payments found in this Agreement or in 

any approved RAP amendment; or (ii) document that any such distributions are 

made from non-gaming revenue. The Tribe hrther agrees that any such 

supplemental or bonus payments are subject to federal income tax, and agrees to 

take the supplemental and bonus payments into account when the Tribe sets 

withholding rates on per capita payments in general. The NIGC Chairman 

acknowledges that the terms of this Paragraph do not apply to the Tribe's 

distribution of bona fide welfare payments to any individual tribal member or 

category of tribal members, as long as the welfare payments are made pursuant to 

a tribal welfare program that: (i) was created in response to a recognized need 

within the tribal community; (ii) has eligibility criteria, including something more 

than tribal membership, to determine which.members qualify to participate in the 

program; and (iii) does not discriminate by including some members and 

excluding others without reasonable justification. 

21. The Puyallup Tribe represents to the NIGC Chairman that, as of the Effective 

Date, the Tribe is in full compliance with those provisions of its RAP that require 

the Tribe to make deferred per capita payments for minors and legal incompetents 

into individual trust accounts. The Puyallup Tribe agrees to maintain its 

compliance with such provisions of its RAP, until such provisions may be 
I modified or terminated by a RAP amendment approved by the Department of the 

Interior. 

22. The Puyallup Tribe represents to the NIGC Chairman that, as of the Effective 

Date, the Tribe makes monthly direct disbursements to parents and legal 

guardians of no more than three-hundred dollars ($300) of the per capita 

payments made to minors or legal incompetents fiom gaming Net Revenue, in 

accordance with the Tribe's approved RAP. The Tribe agrees to maintain its 

compliance with this provision of its RAP, until such provision may be modified 

or terminated by a RAP amendment approved by the Department of the Interior. 

For purposes of this Agreement, the NIGC Chairman acknowledges that the Tribe 

may use non-gaming revenue to supplement its per capita payments to minors and 

legal incompetents, and that any portion of such non-gaming supplements may be 

directly disbursed to the parents or guardians of the minors or legal incompetents, 

at the Tribe's discretion. 

. The Puyallup Tribe represents that, as of the Effective Date and for quite some 

time before that, the Tribe has not made loans other than payroll advances 

governed by the policy outlined in Paragraph 24, below. The Tribe agrees that in 

I the future it will not make loans, other than payroll advances, unless and until it 

first adopts and applies a written policy with rules governing, at a minimum, 

eligibility, interest to be charged, and repayment terms. 

For a period of ten (1 0) years after the Effective Date, the Tribe shall provide to 

NIGC any such policy that the Tribe adopts, and shall notify the NIGC of any 

material changes to such loan policy within thirty (30) days after making any such 

change. The Puyallup Tribe agrees to follow its loan policy, as it may be revised, 

and agrees that it will not make loans using gaming Net Revenue that are not in 

conformance with its loan policy, as in effect at the time. The Tribe further 

agrees to make a good faith effort to obtain repayment of all loans currently 

outstanding as of the Effective Date, and to document such efforts for purposes of 

being summarized in the agreed-uponprocedures report required under Paragraph 

27. 

24. The Puyallup Tribe represents that as of the Effective Date, the Tribe has 

established a payroll advance policy as follows: 

A payroll advance is available to an employee of the Tribal government in 

the amount of one bi-weekly paycheck and must be repaid within one 

year. That advance must be repaid before the employee is eligible for 

another advance. An advance will not be granted to pay off an existing 

payroll advance. If an advance is approved, the employee must sign a 

promissory note in favor of the Tribe. The Tribe will give an employee an 

early payroll check only if, on the employee's regular payday, she will be: 

on vacation; away on Tribal business; sick; attending a hneral; on 

birthday leave; receiving medical treatment; or away fiom work for 

reasons related to housing, car repairs, car insurance, or other emergent 
need. An early paycheck is available only for one two-week pay period, 

unless an employee is on extended leave, in which case a maximum of two 

pay period paychecks will be paid early. An employee's supervisor will 

verify eligibility. 

For a period of ten (10) years after the Effective Date, the Tribe shall notify the 

NIGC of any material changes to this payroll advance policy within thirty (30) 

days after making any such change. The Puyallup Tribe agrees to follow its 

payroll advance policy, as it may be revised, and agrees that it will not make 

payroll advances that are not in conformance with its payroll advance policy, as in 

effect at the time. The Tribe Mer agrees to make a good faith effort to obtain 

repayment of all payroll advances currently outstanding as of the Effective Date, 

and to document such efforts for purposes of being summarized in the agreedupon-procedures report required under Paragraph 27. 

25. The Puyallup Tribe represents that, as of the Effective Date, the Tribe has 

established an annual leave cash-out policy as follows: 

Annual leave cash-outs are restricted to emergency situations. They are 

available only when an employee has experienced loss of a member of 

hislher family causing financial hardship, recent involuntary reduction in 

employment hours, marital separation or divorce causing financial 

hardship, recent tragedy (e.g., house fire, flooding, crime), threat of 

foreclosure or eviction fiom primary residence, significant unpaid tax bill, 

or emergency repair of employee's primary vehicle, or when an employee 

or family member has a medical crisis. 

The employee must submit an application along with documentation in 

support of the request. Tribal Administration will check the eligibility of 

the employee under the criteria noted above and will determine whether 

the employee has accrued the leave requested for cash-out. 

For a period of ten (10) years after the Effective Date, the Tribe shall notify the 

NIGC of any material changes to this annual leave cash-out policy within thirty 

(30) days after making any such change. The Puyallup Tribe agrees to follow its 

annual leave cash-out policy, as it may be revised, and agrees that it will not make 

annual leave cash-outs that are not in conformance with its annual leave cash-out 

policy, as in effect at the time. All annual leave cash-outs will be documented for 

purposes of being summarized in the agreed-upon-procedures report required 

under Paragraph 27. 

26. Beginning with the end of the second quarter of fiscal year 2007 (March 3 1, 

2007), the Tribe will at the end of each quarter, for a period of five (5) years after 

the Effective Date, provide the NIGC with a report detailing, for that quarter, its 

Net Revenue and the total amount used for per capita payments. The report will 

also provide a projection of Net Revenue and per capita payments for the full I fiscal year, demonstrating how the Tribe plans to meet its per capita limitations by 
making any necessary adjustment to the size of the per capita payments for the 

following quarter, either upward if the Tribe chooses to spend any unused gaming 

revenue under its per capita limitations, or downward if the data indicates that 

maintaining the current payments would exceed its per capita limitations. 

27. Starting upon the Effective Date, the Puyallup Tribe agrees to send to the NIGC 

annually for five (5) years, as each becomes available: 

a. The Tribe's audited financial statement. 

b. An internal tribal accounting analysis of the per capita and nongaming distribution payments to all members or groups of 

members during the preceding fiscal year, including 

parentlguarding disbursements and their funding sources, which 

demonstrates compliance with the terms of this Agreement and, if 

applicable, any approved RAP amendment. 

c. Proposed agreed-upon procedures for an independent Certified 

Public Accountant ("CPA') to audit the Tribe's accounting 

analysis described above and certify compliance or noncompliance 

with all of the terms of this Agreement and, if applicable, any 

approved RAP amendment. The NIGC must approve these 

proposed agreed-upon procedures before implementation. The 

Tribe must provide these proposed agreed-upon procedures to the 

NIGC near the end of the first fiscal year which includes the 

Effective Date, but only thereafter if the Tribe wishes to amend the 

agreed-upon procedures previously approved by the NIGC. 

d. An agreed-upon-procedures report fiom an independent CPA that 

certifies the Tribe's compliance or noncompliance with all of the 

terms of this Agreement and, if applicable, any approved RAP 

amendment. This agreed-upon procedures report may be prepared 

and delivered in conjunction with the Tribe's audited financial 

statements. 

e. A list of all tribal government welfare programs and the eligibility 

criteria for each program. 

f. An annual trust account report from the Tribe's trustee 

summarizing the continued existence, status of, and activity in the 

minors' trusts that have been created to hold the deferred portion 

of the minors' per capita payments. 

28. The Puyallup Tribe agrees that the NIGC has the authority to monitor and inspect 

the Tribe's activities for the purpose of verifying the Tribe's compliance with the 

terms of this Agreement, and the Tribe agrees to provide under this Agreement 
any other documents that the NIGC Chairman or his designee may request that 

are reasonably relevant to the Tribe's representations, covenants and duties under 

this Agreement. The Tribe stipulates that the withholding of any such documents 

referenced in the preceding sentence constitutes a breach of this Agreement, and 

relieves the NIGC Chairman of the waiver in Paragraph 15, thus subjecting the 

Tribe to the exercise of the NIGC Chairman's enforcement authority as provided 

by law with respect to the alleged violations and subjects of concern covered in 

this Agreement. In addition, the NIGC Chairrnan reserves the right to request 

other documents from the Tribe under IGM's monitoring/oversight authority. 

ADDITIONAL COVENANTS 

29. This Agreement is the entire agreement. Any amendments must be in writing and 

signed by both parties. 

30. The Puyallup Tribe agrees to waive its right to further review of NOV-06-11 as 

per 25 C.F.R. $ 577.9@)(1), and the Tribe stipulates that NOV-06-11 shall be 

deemed to be the subject of a final order of the National Indian Gaming 

Commission under 25 C.F.R. $ 575.4(~)(1). 

3 1. The NIGC Chairman and the Puyallup Tribe agree to file a joint motion seeking 

the Presiding Official's certification of this Agreement, and stipulate that such 

certification shall constitute dismissal of the appeal and final agency action 

pursuant to 25 C.F.R. 5 577.9@)(3). 

32. The Puyallup Tribe agrees to waive its right to challenge or contest the validity of 

the order of the Presiding Official dismissing the Tribe's appeal pursuant to 25 

C.F.R. 5 577.9@)(2). 

33. This Agreement may be executed in one or more counterparts and each shall 

constitute an original. A signature produced by facsimile shall be deemed to be 

an original signature and shall be effective and binding for the purposes of this 

Agreement. 
IGNATURES 

/#EN&% 30rtN, Wfc/Z - CIM-;~ 

Dated: ? \XT / Dated: I /~-3-o k . 

With the authority vested in me by 25 C.F.R. fj 577.9, I hereby accept and certify this 

Agreement as a full settlement of this action and hereby dismiss the action subject to the 

tenps of the Agreement. 

Lcr.b 

Bruce A. Johnson, pres%ng Official 

Dated: \b-\o-O\o