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December 8, 2022

VIA E-MAIL

Patricia Cottle, President

Klawock Cooperative Association

310 Bayview Boulevard

Klawock, Alaska 99925

Re: Klawock Cooperative Association Gaming Ordinance 

Dear President Cottle:

This letter responds to your September 14, 2022 request for the National Indian Gaming 

Commission Chairman to review and approve the Klawock Cooperative Association Gaming 

Ordinance. 

The NIGC originally approved the Klawock Cooperative Association Gaming Ordinance 

on November 6, 1993. The Klawock Cooperative Association Council adopted the amended 

Gaming Ordinance on July 12, 2022 and you signed the amended Gaming Ordinance on July 13, 

2022. The amended Gaming Ordinance mirrors the NIGC’s Revised Model Gaming Ordinance 

issued as part of Bulletin 2018-1.

Thank you for bringing the gaming ordinance to our attention and for providing us with a 

copy. The ordinance is approved as it is consistent with the Indian Gaming Regulatory Act and 

NIGC regulations. Please note for future references that 25 C.F.R 522.3 requires tribes to submit 

any amendment to an ordinance for the Chair's approval within fifteen (15) days of adoption.

If you have any questions concerning this letter or the ordinance review process, please 

contact Staff Attorney Danielle Wu at danielle.wu@nigc.gov.

Sincerely,

E. Sequoyah Simermeyer

Chairman

Cc: Lawrence Armour, Tribal Administrator (tribaladmin@klawocktribe.org)
Section 1. Purpose

The Tribal Council or other authorized Tribal governing body of the Klawock Cooperative Association

("Tribe"), empowered by the Tribe's Constitution to enact ordinances , hereby enacts this ordinance in

orderto govern and regulate the operation of class II and/or class III gaming operations on the Tribe's

Indian lands held in federal trust, to promote tribal economic development, self-sufficiency and

sovereignty; to shield the operation of gaming from organized crime and other corrupting influences;

and to ensure that gaming is conducted fairly and honestly by both the operator and players.

[25 U.S.C. 2702(1)-(3)]

Section 2 . Applicability

Unless specifically indicated otherwise, all provisions of this ordinance shall apply to class II and/or class

III gaming on the Tribe's Indian lands held in federal trust.

Section 3. Definitions

The following terms shall have the same meaning and effect as those same terms as defined in the

Indian Gaming Regulatory Act ("IGRA" ) , 25 U.S.C. §§ 2701 et seq., and the National Indian Gaming

Commission ("NIGC") regulations, 25 C.F.R. §§ 500 et seq., if they are defined in IGRA and the NIGC's

regulations.

A. Class I gaming.

Social games played solely for prizes of minimal value; or

Traditional forms of Indian gaming when played by individuals in connection with tribal

ceremonies or celebrations.

[25 U.S.C. 2703(6) ; 25 C.F.R. 502.2]

1.

2.

Klawock Cooperative Association Gaming Ordinance

B.

3.

players:

a. Play for prizes with cards bearing numbers or other designations;

Cover numbers or designations when objects , similarly numbered or designated , are drawn or

electronically determined ; and

b .

Class II gaming.

Bingo or lotto (whether or not electronic, computer or other technologic aids are used ) when

Ordinance adopted July 12, 2022 by the KCA Council
C.

4.

Pull-tabs, punch boards , tip jars, instant bingo and other games similar to bingo, if played in the

same location as bingo or lotto;

5. Non-banking card games that:

a. State law explicitly authorizes, or does not explicitly prohibit, and are played legally anywhere in

the state; and

b. Players play in conformity with state laws and regulations concerning hours, periods of

operation, and limitations on wagers and pot sizes;

6.

Card games played in the states of Michigan , North Dakota , South Dakota or Washington, if:

A tribe actually operates the same card games as played on or before May 1, 1988, as

determined by the NIGC Chair; and

a .

b. The pot and wager limits remain the same as on or before May 1, 1988, as determined by the

NIGC Chair;

7.

Individually owned class II gaming operations:

That were operating on September 1, 1986 ;

That meet the requirements of 25 U.S.C. 2710(b)(4)(B);

Where the nature and scope of the game remains as it was on October 17, 1988; and

Where the ownership interest or interests are the same as on October 17 , 1988.

[25 U.S.C. 2703( 7) ; 25 C.F.R. 502.3]

a.

Win the game by being the first person to cover a designated pattern on such cards;

b.

C.

d .

C. Class III gaming . All forms of gaming that are not class I or class II gaming, including, but not

limited to:

1. Any house banking game , including but not limited to -

Card games such as baccarat, chemin de fer, blackjack (21), and pai gow ( if played as house

banking games); and

Casino games such as roulette, craps , and keno;

a.

b.

Ordinance adopted July 12, 2022 by the KCA Council
Any slot machines , as defined in 15 U.S.C. 1711( a ) ( 1), and electronic or electromechanical

facsimiles of any game of chance;

2.

3. Any sports betting and pari-mutuel wagering, including but not limited to, wagering on horse

racing, dog racing or jai alai; or

4.

[25 U.S.C. 2703(8); 25 C.F.R. 502.4]

D. Commission. The Tribal Gaming Commission established to perform regulatory oversight and to

monitor compliance with tribal , federal and applicable state regulations.

Commissioner. A Tribal Gaming Commissioner.

Directly related to . A spouse, child , parent, grandparent, grandchild , aunt, uncle, or first cousin .

Director. A member of the Tribal Gaming Board of Directors.

H. Facility License . A separate license issued by the Tribe to each place, facility or location on Indian

lands where the Tribe elects to allow class II or III gaming;

[25 C.F.R. 502.23]

I. Gaming Operation . Each economic entity that is licensed by the Tribe, operates the games,

receives the revenues, issues the prizes, and pays the expenses. A gaming operation may be operated by

the Tribe directly; by a management contractor; or, under certain conditions, by another person or

entity.

E.

F.

G.

[25 C.F.R. 502.10]

J. Indian lands.

Land within the limits of an Indian reservation; or

Land over which an Indian tribe exercises governmental power and that is either;

Held in trust by the United States for the benefit of any Indian tribe or individual; or

Held by an Indian tribe or individual subject to restriction by the United States against

1.

2.

a.

b .

Lotteries.

alienation .

K.

1.

Key Employee.

[25 U.S.C. 2703 (4 ); 25 C.F.R. 502.12;

See also 25 U.S.C. 2719; 25 C.F.R. 292

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

Bingo caller;

Ordinance adopted July 12, 2022 by the KCA Council
b.

C.

d .

e.

f.

g.

h.

i.

Croupier;

Approver of credit; or

j. Custodian of gambling devices, including persons with access to cash and accounting records

within such devices;

3.

or

4 .

Counting room supervisor;

Chief ofSecurity;

Custodian ofgaming supplies or cash;

Floor manager;

2. If not otherwise included , any other person whose total cash compensation is in excess of

$50,000 per year;

If not otherwise included , the four most highly compensated persons in the gaming operation;

Pit boss;

Dealer;

[25 C.F.R. 502.14]

Any other person designated by the tribe as a key employee.

L. Licensee. A tribally owned class II or class III gaming operation or a person licensed by the Tribal

Gaming Commission as a primary management official, key employee or other gaming employee under

the provisions of this ordinance.

1.

M. Management Contract. Any contract, subcontract or collateral agreement between an Indian

tribe and a contractor or between a contractor and a subcontractor if such contrac: or agreement

provides forthe management of all or part of a gaming operation.

O.

[25 C.F.R. 502.15]

N. Net Revenues. Gross gaming revenues of an Indian gaming operation less:

Amounts paid out as, or paid for, prizes; and

2. Total gaming-related operating expenses, including all those expenses ofthe gaming operation

commonly known as operating expenses and non- operating expenses consistent with professional

accounting pronouncements, excluding management fees.

[25 U.S.C. 2703( 9) ; 25 C.F.R. 502.16]

Primary Management Official.

Ordinance adopted July 12, 2022 by the KCA Council
1.

2.

a.

b .

C.

3.

[25 C.F.R. 502.19]

The person(s) having management responsibility for a management contract.

Any person who has authority:

To hire and fire employees; or

To set up working policy for the gaming operation ; or

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

P. Tribal-State Compact. An agreement between a tribe and state about class III gaming under 25

U.S.C. 2710(d).

Q. Tribe. The Klawock Cooperative Association.

Any other person designated by the Tribe as a primary management official.

Section 4. Gaming Authorized

Class II and/or class III gaming are authorized to be conducted on the Tribe's Indian lands, if such gaming

is conducted in accordance with this ordinance, the Indian Gaming Regulatory Act, the NIGC's

regulations, and any other applicable laws or regulations.

Section 5 . Ownership of Gaming

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

gaming operation authorized by this Ordinance, except as expressly provided in this Ordinance.

[25 U.S.C. 2710(b)(2)(A);

25 C.F.R. §§ 522.4(b) (1), 522.6(c )]

B. No person or entity, other than the Tribe, shall conduct gaming without obtaining a license from

the Tribal Gaming Commission.

C. The Tribal Gaming Commission may issue a license for individually-owned gaming so long as:

The individually owned gaming operation is licensed and regulated pursuant to this Ordinance;

The income to the Tribe from an individually owned gaming operation is used only for the

purposes listed in this Ordinance;

1.

2.

Ordinance adopted July 12, 2022 by the KCA Council
3. Not less than 60 percent of the net revenues ofthe individually-owned gaming operation is

income to the Tribe;

4. The owner ofthe individually owned gaming pays an annual assessment to NIGC pursuant to 25

C.F.R. 514.1; and

5. The Tribal Gaming Commission applies licensing standards that are at least as restrictive as

those established by State law governing similar gaming;

6. The Tribal Gaming Commission determines that the owner of the individually owned gaming

would be eligible to receive a State license to conduct the same activity within the jurisdiction of the

surrounding State.

[25 U.S.C 2710(b) (4)(A)-(B); 25 C.F.R. §§ 502.3(e ), 522.4(b)( 1), 522.6 (c ), 522.10, 522.11]

Section 6 .

A.

1.

2.

3 .

4 .

Use of Net Gaming Revenues

Net revenues from Tribal gaming shall be used only for the following purposes:

To fund Tribal government operations or programs;

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

To promote Tribal economic development;

To donate to charitable organizations; or

To help fund operations of local government agencies.8 5.

[25 U.S.C. 2710(b)(2)(B);

25 C.F.R. §§ 522.4(b)( 2), 522.6(b)]

Section 7 . Per Capita Payments

A. Net revenues from any [class II and/or class III] gaming activities conducted or licensed by the

Tribe may be used to make per capita payments to Tribal members if:

1. The Tribe has prepared a plan to allocate revenues to one or more of the five uses authorized by

section 6(A) ofthis ordinance;

2.

The plan is approved by the Secretary ofthe Interior as adequate, particularly with respectto

the uses described in sections 6(A) ( 1) and 6(A)(3) of this ordinance;

3. The interests of minors and other legally incompetent persons who are entitled to receive any of

the per capita payments are protected and preserved , and the per capita payments are disbursed to the

parents or legal guardian of such minors or legal incompetents in such amounts as rnay be necessary for

the health, education , or welfare of the minor or other legally incompetent person; and

Ordinance adopted July 12, 2022 by the KCA Council
4 .

The per capita payments are subject to Federal taxation and the Tribe notifies its members of

such tax liability when payments are made.

[25 U.S.C. 2710(b) (3); 25 C.F.R. §§ 522.4( b)(2)(ii), 522.6(b)]

KCA Council to act as Gaming Commission

A. The Tribe hereby establishes a Tribal Gaming Commission ("Commission") to regulate the Tribe's

gaming operations. The Commission shall consist ofthree (3) members, including a Chair, Vice-Chair and

at least one additional Commissioner.

Section 8.

B. The Commission will conduct oversight to ensure compliance with Tribal, federal and, if

applicable, state laws and regulations . It 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 gaming operation's internal controls

and in tracking gaming 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 of its records. The Commission shall

have authority to take enforcement actions, including suspension or revocation of an individual gaming

license, when appropriate.

Commissioner positions shall be filled in the following manner:

Through appointment by the Tribal Council.

D. Terms ofoffice for Commissioners shall be as follows : the Chair shall serve an initial term of one

(1) year, with subsequent Chairs serving 3 -year terms; and the Vice-Chair and Commissioner(s) shall

serve an initial term of two (2) years, with subsequent Vice-Chairs and Commissioners serving 3-year

terms.

C.

E. The following persons are not eligible to serve as Commissioners: Current employees ofthe

gaming operation ; gaming contractors ( including any principal of a management, or other contracting

company); persons directly related to, or sharing a residence with , any of the above ; and persons

ineligible to be key employees or primary management officials . Non-tribal members previously

convicted of any felony or misdemeanor offense of embezzlement, theft or any other money-related or

honesty-related misdemeanor offense, such as fraud, cannot serve as Commissioner. Tribal members

previously convicted of any felony or misdemeanor offense of embezzlement, theft or any other offense

related to money or honesty, such as fraud , will only be allowed to serve as a Commissioner ifthe Tribal

Council specifically finds that a significant amount of time has passed and the person is now of

trustworthy character.

F. The Tribal Council shall require a criminal history check with appropriate law enforcement

agencies for each Commissioner candidate ; shall review the candidate's criminal history check results;

and shall make an appropriate eligibility determination before appointing an individual to the position of

Commissioner.

G. KCA's tribal council shall act as KCA's tribal gaming commission in the absence of appointed

officials. By way of appointment or resolution the KCA council may create a gaming commission at any

Ordinance adopted July 12, 2022 by the KCA Council
time. To avoid potential conflicts of interest between the operation and regulation of the gaming facility,

the Tribe requires that, at a minimum :

1. Members ofthe Commission are prohibited from gambling in the facility;

2. Commissioners are prohibited from accepting complimentary items from the gaming operation,

and from excepting food and beverages; and

3. Commissioners may only be removed from office by the 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 the position .

H. Nominees for Commissioner positions must satisfy the eligibility standards set forth for primary

management officials and key employees found in Section 21 ofthis ordinance . All requisite background

investigations shall be performed under the direction of the Tribal Administrator or Administrative

Assistant.

The Tribal Gaming Commission shall:

Conduct background investigations, or cause such investigations to be conducted , for primary

management officials and key employees;

1.

1.

Review and approve all investigative work conducted in connection with the background

investigations of primary management officials and key employees;

2.

Create and maintain investigative reports based on the background investigations of primary

management officials and key employees;

3.

4. Designate a law enforcement agency to obtain and process fingerprints and conduct a criminal

history check that shall include a check of criminal history records information maintained by the

Federal Bureau of Investigation.;

Make licensing eligibility determinations, which shall be signed by the Chair of the Commission;

Submit a notice of results to the NIGC of the background investigations done for each primary

management official and key employee applicant;

5.

6.

Issue gaming licenses to primary management officials and key employees of the operation , if

warranted by the eligibility determination;

Establish standards for licensing Tribal gaming facilities;

Issue gaming licenses to Tribal gaming facilities;

7.

8.

9.

10. Inspect, examine and monitor all of the Tribe's gaming activities , and have immediate access to

review, inspect, examine, photocopy and audit all records of the gaming facilities and operations;

Ordinance adopted July 12, 2022 by the KCA Council
11. Ensure compliance with all Tribal, federal and applicable state laws, rules and regulations

regarding Indian gaming;

Investigate any suspicion of wrongdoing associated with any gaming activities;

13. Hold hearings on patron complaints, in accordance with procedures established in this

ordinance and the Tribal gaming regulations;

12.

14. Comply with any and all reporting requirements under IGRA, the NIGC's regulations and any

tribal-state compact to which the Tribe is a party , and any other applicable law;

15. Promulgate and issue regulations necessary to comply with applicable internal control

standards;

16. Promulgate and issue regulations on the levying of fees and/or taxes associated with gaming

license applications;

17. Promulgate and issue regulations on the levying of fines and/or the suspension or revocation of

gaming licenses for violations of this ordinance or any Tribal, federal or applicable state gaming

regulations;

18. Establish a list of persons not allowed to game in the Tribe's gaming facilities in orderto

maintain the integrity of the gaming operation;

19. Establish a list of persons who have voluntarily agreed to be excluded from the Tribal gaming

facilities, and create regulations for enforcing the exclusions;

20. Provide referrals and information to the appropriate law enforcement officials when such

information indicates a violation of Tribal , federal or state statutes, ordinances, regulations, codes or

resolutions;

21. Create a list of regulatory authorities that conduct background investigations of, and licenses,

vendors who are recognized as trustworthy;

22. Draft regulations exempting vendors from the licensing and/or background investigation

requirements if they have received a license from a recognized regulatory authority;

23. Perform such other duties the Commission deems appropriate forthe proper regulation ofthe

Tribal gaming operation; and

24. Promulgate such regulations and guidelines as deemed appropriate to implement the provisions

of this ordinance, so long as they are in furtherance of, and not in conflict with, any provisions ofthis

ordinance.

J. Before adopting, amending and repealing regulations, the Commission shall give notice of any

such proposed action to the Tribal Council, the gaming operation (s) and all other persons whom the

Commission has reason to believe have a legitimate interest in the proposed action . The notice shall

invite comments and describe the general nature ofthe proposed action and the manner in which

comments on the proposed action shall be received by the Commission .

Ordinance adopted July 12, 2022 by the KCA Council
The Commission shall ensure that all records and information obtained as a result ofan

employee background investigation, including but not limited to, the identity of each person

interviewed in the course of an investigation, shall remain confidential and shall not be disclosed to any

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 rnembers of

management, human resource personnel and/or others employed by the Tribal gaming operation on a

need-to-know basis , for actions taken in their official capacities.

K.

L. The confidentiality requirements in Section 8(J), above, do not apply to requests for such

records or information from any Tribal, federal or state law enforcement or regulatory agency, or forthe

use of such records or information by the Commission and staff in the performance oftheir official

duties.

A majority ofthe Commission shall constitute a quorum. The concurrence of a majority of the

Commissioners 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.

M.

N. Commissioners shall be compensated at a level determined by the Tribal Council. In orderto

ensure the Commission is not improperly influenced, a Commissioner's compensation shall not be based

on a percentage of gaming revenue.

O. The Commission shall keep a written record of all its meetings.

Section 9 . Audits

A. The Tribe shall cause to be conducted independent audits of gaming operations annually and

shall submit the results of those audits to the NIGC.

[25 U.S.C. 2710(b)(2)(C);

25 C.F.R. 522.4(b)(3)]

B.

[25 C.F.R. 571.12(b)]

Annual audits shall conform to generally accepted auditing standards.

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

more than $25,000 in any year (except contracts for professional legal and accounting services) shall be

specifically included within the scope of the audit conducted under Section 9 (A) of this ordinance.

[25 U.S.C. 2710(b) (2) (D);

25 C.F.R. §§ 522.4(b)( 4), 522.6(b)]

Ordinance adopted July 12, 2022 by the KCA Council
D. Copies ofthe annual audit of each licensed gaming operation, and each audit for supplies,

services or concessions of each gaming operation , shall be furnished to the NIGC within 120 days after

the end of each fiscal year of the gaming operation.

[25 C.F.R. 571.13]

Section 10. Environment and Public Health and Safety

A. Each gaming facility shall be constructed , maintained , and operated in a manner that adequately

protects the environment and the health and safety ofthe public.

[25 U.S.C. 2710(b)(2)(E);

25 C.F.R. §§ 522.4(b) (7) , 522.6(b), and 559.4]

Tribal Council shall identify and enforce laws, resolutions, codes, policies , standards, or

procedures, which are applicable to each gaming place , facility or location , to ensure adequate

protection ofthe environment and the health and safety of the public.

[25 C.F.R. 559.4]

B.

Section 11. Patron Dispute Resolution

Patrons with 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. The Commission shall hold a hearing within 30 days of receipt

ofthe petitioner's complaint. The petitioner may have counsel present at the hearing. The petitioner

may be allowed to present evidence, at the discretion ofthe Commission . After the hearing, the

Commission shall render a decision in a timely fashion . 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 one hundred dollars

($100) per occurrence , and a cumulative limit of one thousand dollars ($ 1000) per patron in any 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.

[25 C.F.R. 522.2(f)]

Section 12. Facility Licenses

A. The Tribe 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.

[25 U.S.C. 2710(b) ( 1); 25 C.F.R. §§ 522.4(b)(6) , 522.6(b) and 559]

Ordinance adopted July 12, 2022 by the KCA Council
B. The Tribal Gaming Commission is responsible for issuing new or renewed facility licenses to each

place, facility or location .

C. The Tribal Gaming Commission shall require that a facility license application be completed by

the chief management official of the gaming facility for each gaming place, facility or location.

The Tribal Gaming Commission shall identify the environmental, health and public safety

standards with which the place, facility or location must comply, and specify the form, conditions and

content of a facility license application . The application shall include:

D.

A legal description of the lands upon which the facility is located , and a certification that the site

constitutes "Indian lands," as defined in IGRA, the NIGC's regulations, the NIGC Office of General

Counsel and DOI Solicitor Offices' Indian lands legal opinions, judicial decisions and any other applicable

law .

E.

F. The Tribal Gaming Commission shall only issue a facility license if the application includes the

required information and documentation , and sufficiently satisfies any additional conditions deemed

necessary by the Tribe.

G. The Tribe or Tribal Gaming Commission shall submit to the NIGC Chair a notice that issuance of a

facility license is under consideration by the Tribal Gaming Commission . This notice must be submitted

at least 120 days before the opening of any new place, facility or location on Indian lands where class II

and/or class ill gaming will occur.

[25 C.F.R. 559.2(a)]

H. The Tribal Gaming Commission shall submit a copy of each newly issued or renewed facility

license to the NIGC Chair within 30 days of issuance, along with any other required documentation.

[25 C.F.R. 559.3]

I. The Tribe shall notify the NIGC Chair within 30 days if a facility license is terminated or expires,

or if a gaming place, facility, or location closes or reopens.

[25 C.F.R. 559.5]

Section 13. Agent for Service of Process

The Tribe designates the Tribal Council President as the agent for service of any official determination,

order or notice of violation .

[25 C.F.R. §§ 519.1, 522.2(g) , 522.6(a)]

Ordinance adopted July 12, 2022 by the KCA Council
Section 14. Tribal Access to Financial Information

A copy ofthe Tribal gaming operation's annual audit will be made available for review, upon request, to:

The Tribe's Finance Committee

Section 15. License Application Forms

A. The following notice shall be placed on the Tribe's license application form for a key employee

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

in compliance with the Privacy Act of 1974, the following information is provided : Solicitation ofthe

information on this form is authorized by 25 U.S.C.

§§ 2701 et seq . The purpose ofthe requested information is to determine the eligibility of individuals to

be granted a gaming license. The information will be used by the Tribal gaming regulatory authorities

and by 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 by the Tribe or the NIGC to

appropriate Federal , Tribal, State, local or foreign law enforcement and regulatory agencies when

relevant to civil, criminal or regulatory investigations or prosecutions or when pursuant to a

requirement by a tribe or the NIGC in connection with the issuance, denial, or revocation of a gaming

license, or investigations of activities while associated with a tribe or a gaming operation . Failure to

consent to the disclosures indicated in this notice will result in a tribe being unable to license you for 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 .

[25 C.F.R. 556.2(a )]

B. The following additional notice shall be placed on the application form for a key employee or a

primary management official before it is filled out by an applicant:

A false statement on any part of your license application may be grounds for denying a license orthe

suspension or revocation of a license. Also, you may be punished by fine or imprisonment (U.S. Code,

title 18, section 1001).

[25 C.F.R. 556.3(a)]

Section 16. 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.

Ordinance adopted July 12, 2022 by the KCA Council
Section 17. Background Investigations

A. The Tribe shall perform a background investigation for each primary management official and

key employee in its gaming operation . The investigation must be sufficient to allow the Tribal Gaming

Commission to make an eligibility determination under Section 20 of this ordinance.

[25 U.S.C. 2710(b)(2)(F);

25 C.F.R. §§ 522.4(b) (5), 556.4]

B. The Tribal Gaming Commission is responsible for conducting the background investigations of

primary management officials and key employees. The background investigation shall include a check of

criminal history records information maintained by the Federal Bureau of Investigations.

[25 U.S.C. 2710(b)(2)( F);

25 C.F.R. §§ 522.2 (h), 522.6(a)]

C. The Tribe shall request fingerprints from each primary management official and key employee.

The law enforcement agency designated to take fingerprints is the City of Craig Police Department.

[25 U.S.C. 2710(b)(2 )( F); 25 C.F.R. §§ 522.2(h ), 522.6(a), 556.4(a)(14)]

D. The Tribal Gaming Commission shall request from each primary management official

and key employee all of the following information:

Full name, other names used (oral or written ), social security number, birth date , place of birth,

citizenship, gender and all languages ( spoken and/or written);

1.

Currently, and for the previous five (5 ) years; business and employment positions held,

ownership interests in those businesses, business and residential addresses, and driver's license

numbers;

2.

3. The names and current addresses of at least three (3) personal references, including one ( 1)

personal reference who was acquainted with the applicant during each period of residence listed under

paragraph (C)(2) ofthis section;

Current business and residential telephone numbers, and all cell phone numbers;

A description of any existing and previous business relationships with other tribes, including any

ownership interests in those businesses;

4.

5.

A description of any existing and previous business relationships with the gaming industry

generally, including ownership interests in those businesses;

6.

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;

7.

Ordinance adopted July 12, 2022 by the KCA Council
8. For each felony for which there is an ongoing prosecution or a conviction , the charge, the name

and address ofthe court involved , and the date of disposition, if any;

For each misdemeanor conviction or ongoing misdemeanor prosecution (excluding minor traffic

violations) within 10 years of the date of the application , the name and address of the court involved

and the date of disposition, if any;

9.

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 application , and is not otherwise listed

pursuant to paragraphs (C) (8 ) or (C) (9 ) of this Section , the criminal charge , the name and address ofthe

court involved , and the date of disposition , if any;

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;

A photograph;

Any other information the Tribe deems relevant; and

Fingerprints obtained in accordance with procedures adopted by the Tribe

[25 U.S.C. 2710(b ) ( 2)( F); 25 C.F.R. §§ 522.2( h ), 522.4(b)( 5), 522.6(a ), 556.4(a ) ( 1 )-( 14)]

12.

13.

14 .

E. When a primary management official or key employee is employed by the Tribe, a complete

application file, containing all of the information listed in Section 18(C), shall be maintained.

[25 U.S.C. 2710(b)(2)(F);

25 C.F.R. §§ 522.4 (b)(5 ), 556.6(a)]

F. The Tribal Gaming Commission, and its investigators, shall keep confidential the identity of each

person interviewed in the course of conducting a background investigation .

[25 C.F.R. §§ 522.4(b)(5), 556.4 ( c)]

Section 18. Procedures for Conducting Background Investigations

The Tribal Gaming Commission , or its agent, shall employ or engage an investigator to conduct a

background investigation of each applicant for a primary management official or key employee position .

The investigator shall:

1.

A.

Verify the applicant's identity through items such as a social security card, driver's license, birth

certificate or passport;

Ordinance adopted July 12, 2022 by the KCA Council
2.

possible;

3. Conduct a personal credit check;

Conduct a civil history check;

Conduct a criminal history records check;

6. Based on the results of the criminal history records check, as well as information acquired from

an applicant's self-reporting or from any other source, obtain information from the appropriate court

regarding any past felony and/or misdemeanor convictions or ongoing prosecutions within the past 10

years;

4.

5.

7.

Inquire into any previous or existing business relationships with the gaming industry, including

with any tribes with gaming operations, by contacting the entities or tribes;

8. Verify the applicant's history and current status with any licensing agency by contacting the

agency; and

Contact each personal and business reference provided in the license application , when

9. Take other appropriate steps to verify the accuracy of the information , focusing on any problem

areas noted.

[25 U.S.C. 2710(b)(2) ( F); 25 C.F.R. §§ 522.4(b)(5 ), 556.5)

Section 19. Investigative Reports

A. A Tribe shall create and maintain an investigative report for each background investigation of a

primary management official or key employee.

[25 U.S.C. 2710(b)(2)(F);

25 C.F.R. §§ 522.4(b) (5), 556.6(b)(1)]

B.

a.

b .

C.

Investigative reports shall include all of the following information:

Steps taken in conducting the investigation ;

Results obtained ;

Conclusions reached ; and

d . The basis forthose conclusions.

[25 U.S.C. 2710(b)(2 )( F);

25 C.F.R. §§ 522.4(b)(5), 556.6( b)(1)]

Section 20. Eligibility Determinations

Ordinance adopted July 12, 2022 by the KCA Council
A. Before a license is issued to a primary management official or key employee , an authorized

Tribal official shall make a finding concerning the eligibility of that person for receiving a gaming license

by reviewing the applicant's prior activities, criminal record , if any, and reputation, habits and

associations.

[25 U.S.C. 2710(b)(2)( F);

25 C.F.R. §§ 522.4( b) (5), 556.5(a)]

B. If the authorized Tribal official, in applying the standards adopted in this ordinance, determines

that licensing the person poses a threat to the public interest or to the effective regulation of gaming, or

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

the conduct of gaming, he or she shall not license that person in a key employee or primary

management official position.

[25 U.S.C. 2710( b) (2)( F ); 25 C.F.R. 556.5(b)]

Copies ofthe eligibility determination shall be included with the notice of results that must be

submitted to the NIGC before the licensing of a primary management official or key employee.

[25 U.S.C. 2710(b) (2) ( F);

25 C.F.R. 556.6(b)(2)]

C.

Section 21. Notice of Results of Background Investigations

Before issuing a license to a primary management official or key employee , the Tribal Gaming

Commission shall prepare a notice of results of the applicant's background investigation to submit to the

NIGC.

A.

B. The notice of results must be submitted to the NIGC no later than 60 days after the applicant

begins working for the Tribe.

[25 U.S.C. 2710(b)(2)(F);

25 C.F.R. 556.6(b)(2)]

The notice of results shall include the following information :

The applicant's name, date of birth and social security number;

2. The date on which the applicant began, or will begin, working as a primary management official

or key employee;

3. A summary ofthe information presented in the investigative report, including:

C.

1.

Ordinance adopted July 12, 2022 by the KCA Council
licenses that have previously been denied ;

gaming licenses that have been revoked , even if subsequently reinstated;

C. every known criminal charge brought against the applicant within the last 10 years of the date

of the application; and

d .

a .

b.

every felony offense of which the applicant has been convicted or any ongoing prosecution; and

A copy of the eligibility determination made in accordance with Section 21..

[25 C.F.R. 556.6(b)(2)(i)-(iv)]

4.

Section 22. Granting Gaming Licenses27

A. All primary management officials and key employees of the gaming operation must have a

gaming license issued by the Tribe.

[25 U.S.C. 2710(b ) (2) ( F) ; 25 C.F.R. 558.3(c)]

The Tribal Gaming Commission is responsible for granting and issuing gaming licenses to primary

management officials and key employees.

[25 U.S.C. 2710(b)(2)(F);

25 C.F.R. 558.1]

B.

C. The Tribal Gaming Commission may license a primary management official or key employee

applicant after submitting a notice of results of the applicant's background investigation to the NIGC, as

required by Section 22 .

[25 C.F.R. 558.3(a)]

The Tribal Gaming Commission shall notify the NIGC of the issuance of a license to a primary

management official or key employee within 30 days of issuance.

[25 U.S.C. 2710(b) ( 2 ) ( F); 25 C.F.R. 558.3(b)]

D.

E. The Tribe shall not employ an individual in a primary management official or key employee

position who does not have a license after 90 days of beginning work at the gaming operation.

[25 C.F.R. 558.3(c)]

Ordinance adopted July 12, 2022 by the KCA Council
F. The Tribal Gaming Commission must reconsider a license application for a primary management

official or key employee if it receives a statement of itemized objections to issuing such a license from

the NIGC, and those objections are received within 30 days of the NIGC receiving a notice ofresults of

the applicant's background investigation .

[25 C.F.R. 558.2(c)]

G. The Tribal Gaming Commission shall take the NIGC's objections into account when reconsidering

a license application .

[25 C.F.R. 558.2(c)]

The Tribe will make the final decision whether to issue a license to an applicant for a primary

management official or key employee position.

[25 C.F.R. 558.2(c)]

H.

Ifthe Tribal Gaming Commission has issued a license to a primary management official or key

employee before receiving the NIGC's statement of objections, notice and a hearing shall be providedto

the licensee, as required by Section 25.

[25 C.F.R. 558.2(d)]

I.

Section 23. Denying Gaming Licenses

A. The tribal Gaming Commission shall not license a primary management official or key employee

if an authorized Tribal official determines, in applying the standards in Section 21 for making a license

eligibility determination , that licensing the person:

Poses a threat to the public interest;

Poses a threat to the effective regulation of gaming; or

3. Creates or enhances the dangers of unsuitable , unfair or illegal practices, methods and/or

activities in the conduct of gaming.

[25 U.S.C. 2710(b) ( 2 ) ( F) ; 25 C.F.R. 556.5(b)]

1.

2.

B. When the Tribal Gaming Commission does not issue a license to an applicant for a primary

management official or key employee position, or revokes a previously issued licenses after

reconsideration , it shall:

1. Notify the NIGC; and

Ordinance adopted July 12, 2022 by the KCA Council
2. Forward copies of its eligibility determination and notice of results of the applicant's background

investigation to the NIGC for inclusion in the Indian Gaming Individuals Record System .

[25 C.F.R. 558.3(d)]

Section 24. Gaming License Suspensions and Revocations

A. If, after a license is issued to a primary management official or a key employee, the Tribe

receives notice from the NIGC that the primary management official or key employee is not eligible for

employment, the Tribal Gaming Commission shall do the following:

Immediately suspend the license;

Provide the licensee with written notice of the suspension and proposed revocation; and

3. Provide the licensee with notice of a time and place for a hearing on the proposed revocation of

the license.

[25 C.F.R. 558.4(a)-(c)]

1.

2.

B.

license at issue.

[25 C.F.R. 558.4(e)]

C. The Tribe shall notify the NIGC of its decision to revoke or reinstate a license within 45 days of

receiving notification from the NIGC that a primary management official or key employee is not eligible

for employment.

[25 CFR 558.4(e)]

Following a revocation hearing, the Tribe shall decide whether to revoke or reinstate the

Section 25. Records Retention

A. The Tribal Gaming Commission shall retain , for no less than three years from the date a primary

management official or key employee is terminated from employment with the Tribe, the following

documentation:

1.

2.

3.

Application forlicensing;

Investigative Reports; and

Eligibility Determinations.

[25 C.F.R. 558.3(e)]

Section 26. Licenses for Vendors

Ordinance adopted July 12, 2022 by the KCA Council
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 .

Section 27. 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 those officers, directors,

managers, owners, partners, and non-institutional stockholders that either own 10% or more ofthe

business' stock or are the 10 largest stockholders, as well as the on -site supervisors or managers

designated in an agreement with the Tribe , if applicable.

Section 28. Contents of the Vendor License Application

Applications for gaming vendor licenses must include the following:

1. Name of business, business address, business telephone number(s) , federal tax identification

number (or social security number, if a sole proprietorship) , main office address (if different from

business address),

A.

Whetherthe applicant is a partnership, corporation, limited liability company, sole

proprietorship or other entity;

2.

3 . Ifthe applicant is a corporation, the state of incorporation and the qualification to do business

in the State of Alaska , if the gaming operation is in a different state, then the state of incorporation .

4. Trade name, other names ever used and names of any wholly owned subsidiaries or other

businesses owned by the vendor or its principals;

General description of the business and its activities;

6. Whetherthe applicant will be investing in , or loaning money to, the gaming operation, and if so,

how much;

5.

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 any non-gaming activity;

9 . Names, addresses and telephone numbers of three ( 3) business references with whom the

company has regularly done business for the last five (5) years;

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;

10.

Ordinance adopted July 12, 2022 by the KCA Council
Ifthe 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 . A list of the business' funding sources and any liabilities of $ 50,000 or more;

11.

14. A list ofthe principals of the business, their social security numbers, addresses, telephone

numbers, titles and percentage of ownership in the company; and

Any further information the Tribe deems relevant.

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

Inclusion offalse or misleading information in the vendor application may be grounds for denial or

revocation ofthe Tribe's vendor license.

15 .

B.

C. A vendor may submit to the Tribal Gaming Commission 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 29. Vendor Background Investigations

The Tribal Gaming Commission shall employ or otherwise engage an investigator to complete an

investigation of a gaming vendor. This investigation shall include, at a minimum , the following steps:

A. Verification ofthe vendor's business' incorporation status and qualifications to do business in

the state where the gaming operation is located ;

B. Obtaining a business credit report, if available, and conducting a Better Business Bureau check

on the vendor;

C. Conducting a check of the vendor's business' credit history;

Calling and questioning each of the references listed in the vendor application ; and

E. Conducting an investigation of the principals ofthe vendor's business, including facilitating a

criminal history check, obtaining criminal history check results, obtaining a credit report, and

interviewing the personal references listed .

D.

Section 30. Vendor 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 vendors of the gaming operation.

Ordinance adopted July 12 , 2022 by the KCA Council
Section 31. Vendor Background Investigation Reports

The 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 32. Vendors Licensed by Recognized Regulatory Authorities

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 who have

received a license from one of the named regulatory authorities.

Section 33. Compliance with Federal Law

The Tribe shall comply with all applicable federal laws, including the Bank Secrecy Act, 31 U.S.C. 5311

et seq.

Section 34. Repeal

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

hereby repealed .

Section 35. Effective Date

This ordinance shall take effect immediately upon its approval by the NIGC Chair.

AutricioCottle

President - Klawock Cooperative Association

Ordinance adopted July 12, 2022 by the KCA Council

7/13/2022

Date