Section 115. Facility Licenses

The Tribal Gaming Commission shall issue a separate license to each place,
facility, or location on Indian lands where class II or Class III gaming is conducted
under this ordinance. No facility shall be licensed or used by the Tribe, unless
the facility has been constructed and is maintained and operated in a manner
that adequately protects the environment and the public health and safety. No
gaming facility shall be licensed by the Commission or operated on the Tribe’s
Indian lands in which Class III gaming is conducted, unless the Tribe has a Class
Ill gaming compact with the State which has been approved and has become
effective in accordance with the IGRA or the Secretary has prescribed
procedures for the conduct of Class III gaming by the Tribe.

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 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 o’ficial:

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 gaming
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.

16


(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;

(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 geming;

(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 Tribeis a party, and any other
applicable law;

(14) Promulgate and issue regulations necessary to comply with
applicable internal control 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 the gaming
ordinance, or any other Tribal, Federal, or State, if applicable, gaming
regulations;

(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;

10


(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 conceming the eligibility for licensing
required for employment in a gaming operation; and a Statement documenting
the 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.

20


QUARTZ VALLEY INDIAN RESERVATION
Gaming Ordinance

Ordinance No. __

Index to Gaming Ordinance
Pg. |

101. | Purpose 2
102. | Definitions 2
103. | Gaming Authorized 4
104. | Ownership of Gaming 4
105. | Use of Gaming Revenue 5
106. | Per Capita Payments 5
107. | Board of Directors 6
108. | Gaming Commission 8
109 | Executive Committee 12
110. | Ethics 13
111. | Complimentary Items 14
112. | Audit 15
113. | Dispute Resolution 15
114. | Tribal internal Control Standards 15
115. | Facility Licenses 16
201. | Licenses for Key Employees and Primary

Management Officials 16
202. | License Application Forms 16
203. | License Fees 17
204. | Fingerprints ied
205. | Background Investigations 17
206. | Procedures for Conducting a Background

Check on Applicants 18
207. | Eligibility Determination 19
208. | Procedures for Forwarding Applications and

Reports of Key Employees and Primary 19

Management Officials to NIGC
209. | Report to the NIGC 20
210. | Granting a Gaming License 20
211. | License Suspension 21



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 may 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.

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 license application procedure.
Fingerprints shall be taken by the Tribal Gaming Commission or its agent.
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);

17


(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 ‘elony 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.

(d) To obtain summary criminal history information from the State of
California, Department of Justice, it is hereby confirmed that Article 6
(commencing with section 11140) of Chapter 1 of Title 1 of Part 4 of the
California Penal Code shall apply to all members, investigators and staff of
the Tribal Gaming Commission.

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 employze or primary management official for
employment in a gaming operation. If the Tribal Gaming Commission determines
that employment of the person poses a threat to the public interest or to the
effective regulation of gaming, or creates or enhances dangers of unsuitable,
unfair, or illegal practices and methods and activities in the conduct of gaming, a
tribal gaming operation shall not employ that person in a key employee or
Primary management official position.

Section 208. Procedures for Forwarding Applications and Reports for Key
Employees and Primary Managernent 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 subsection D of this section.

19


(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.

(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 pesitions 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) 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 111. 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, Tribal Gaming Commission,
Executive Committee, or any person directly related to or living with the persons,
shall be authorized to receive complimentary items other than food and

14


(3) The Tribal Council shall designate or create a Tribal court system,
forum, or administrative process for resolution of disputes concerning the
allocation of net gaming revenues and the distribution of per capita
Payments and will explain how it will correct deficiencies.

(4) The Tribal Council shall ensure that the Tribal revenue allocation plan
reserves an adequate portion of net gaming revenues from the tribal
gaming activity to do one or more of the following purposes: fund Tribal
government operations or programs; provide for the general welfare of
the Tribe or its members; promote tribal economic development; donate
to charitable organizations; or to help fund operations of local
government.

(5) The Tribal Council shall ensure that distributions of per capita
Payments are made according to specific eligibility requirements.

(6) The Tribal Council shall ensure that Tribal members are notified of the
tax liability for per capita payments and how taxes with be withheld.

Section 107. 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; a Chairperson,
Vice-Chairperson, and Director. Terms of office for members of the Tribal
Gaming Board of Directors shall be as follows: the Chairperson shall serve an
initial term of one year, with subsequent Chairpersons serving three-year terms.
The Vice-Chairperson and other Director(s) shall serve an initial term of two
years, with subsequent Vice-Chairpersons and Directors serving three-year
terms. The members of the Board shall 5e 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:

Two of the following:

° Degree in Business Administration, Accounting,
Marketing, or an equivalent field;

. Minimum five (5) years experience in business
management;

6


(d)

(e)

(f)

(g)

(h)

(i)
@
(k)

()

(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.

Class III gaming means all forms of gaming that are not class | gaming
or Class II gaming.

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

Commissioner means a Tribal Gaming Commissioner.

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).

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

Directly related to means a spouse and/or any dependent child.
Director means a Member of the Tribal Gaming Board of Directors.
Indian lands means:

(1) all lands within the limits of tne Tribe’s reservation as of Oct. 17,
1988;

(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. § 2719.

Key Employee means:

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

3


GAMING ORDINANCE

Section 101. Purpose

The Tribal Council of the Quartz Valley Indian Reservation, empowered by the
Tribe’s Constitution to enact ordinances, hereby enacts this ordinance in order to
govern Class II 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 | 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 Il gaming means:

(1) the game of chance commorily 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

(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.


beverages valued at under five dollars, or, if ata 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.

Section 112. 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 113. Patron Dispute Resolution

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 $5,000 per occurrence, and a
cumulative limit of $10,000 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. If the Commission finds exceptional circumstances
justify an award greater than the limits set herein, the Commission may agree to
waive the limitations, but any such award may not exceed available insurance for
the claim. The Commission’s decision shall constitute the complainant's final
remedy.

Section 114. Tribal Internal Control Standards
The Tribe shall adopt and implement Internal Control Standards (ICS) for the
Operation of its Tribal gaming operation in accordance with applicable law. The

Tribe's ICS shall be set out in separate regulations to be reviewed and approved
by the Tribal Council.

15


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. Per Capita Payments

(a) “Per Capita Payment” means the distribution of money or other things 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) If the Tribe elects to make per capita payments to tribal members from
revenues derived from its gaming operations, it shall ensure that the following
requirements of 25 C.F.R. Part 290 are mez:

(1) The Tribe shall authorize and issue such payments only in accordance
with a revenue allocation plan submitted to and approved by the
Secretary of the Interior under 25 U.S.C. § 2710(b)(3).

(2) The Tribe shall ensure that the interests of minors and other legally
incompetent persons who are entitled to receive any per capita payments
under a Tribal per capita payment plan are protected and preserved, and
that the per capita payments are disbursed to the parents or legal
guardian of such minors or legal incompetents in such amounts as may
be necessary for the health, education, or welfare or the minor or other
legally incompetent person, under a plan approved by the Tribal
governing body and the Secretary of the Interior. The Tribe must also
establish criteria and a process for withdrawal of funds by the parent or
legal guardian.


Section 210. Granting a Gaming License

(a) If, within a thirty (30) day pericd 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 Commissicn 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.

(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.

(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.

21


October 17, 2008

David J. Rapport

Law Offices of Rapport and Marston
405 W. Perkins Street

P.O. Box 488

Ukiah, California 95482

Re: Submission of Gaming Ordinance for Quartz Valley Indian Community of the
Quartz Valley Indian Reservation

Dear Mr. Rapport:

This letter responds to your request to the National Indian Gaming Commission
(NIGC) to review and approve the tribal gaming ordinance of the Quartz Valley Indian
Community (Tribe). The Tribe forwarded the ordinance by the resolution adopted on
September 3, 2008, and the NIGC received the ordinance on July 21, 2008.

The ordinance is consistent with the requirements of the Indian Gaming
Regulatory Act (IGRA) and this agency's regulations, and it is therefore approved. It is
important to note that the gaming ordinance is approved for gaming only on Indian lands,
as defined in the IGRA, over which the Tribe has jurisdiction. 25 U.S.C.§2703(4); 25
C.F.R.§ 502.12

Thank you for your submission. If you have any questions or require assistance,
please contact Esther Dittler in the Office of the General Counsel, at 202-632-7003.

Sincerely, PA o

\—-Philip N. Hogen
Chairman

Ce: Harold Bennett, Chairman
Quartz Valley Indian Community
13601 Quartz Valley Road
Fort Jones, CA 96032

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


(1) No member of the Tribal Council or Tribal Gaming Commission may
serve on the Board of Directors;

(2) No person directly related to or living with any Tribal Council member
or Tribal Gaming Commissioner may serve on the Board of Directors;

(3) 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.

(g) Members of the Board of Directors may 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 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 Tribal Council.

Section 108. 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 5 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 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, inclucling 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

8


(c)

(d)

(e)

° 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.

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 operation;

(7) Establish employee policies, rates of pay, and hours 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.

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

Board of Director positions shall be filled in the following manner:
Through appointment by the Tribal Council.

It is advisable that one member of the Board of Directors be a local

business owner with no ties to or financial interest in the gaming operation.

(f)

The Tribe recognizes the importance of an independent Tribal Gaming

Board of Directors in maintaining a well-rnanaged 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:

7


(m)

(n)

(0)

(p)

(B) Counting room supervisor

(C) Chief of security;

(D) Custodian of gaming supplies or cash;

(E) Floor manager;

(F) Pit boss;

(G) Dealer;

(H) Croupier;

(I) 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.

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.

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.

Tribal Council means the Business Council elected by the General
Community Council in accordance with Resolution 98-06.

Tribe means the Quartz Valley Indian Reservation.

Section 103. Gaming Authorized

Class II and Class III gaming are hereby authorized, subject to the provisions of
Section 115. No Class III gaming is authorized, unless and until the Tribe has entered a
Tribal-State Gaming Compact which has been approved and become effective in
compliance with the IGRA.


(2)

(4)
(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)
(13)

Currently and for the previous 5 years: business and employment
positions held, ownership interests in those businesses, business
and residence addresses, and driver's license numbers;

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;

Current business and residence telephone numbers;

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

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

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;

For each felony for which there was an Ongoing prosecution or a
conviction, the charge, the name and address of the court
involved, and the date and 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 and disposition;

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 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;

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 taken within the last year; and

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 G below. The investigator shall:

(1) Verify the applicant's identity through items such as a social security
card, driver's 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;

18


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SEP-04-2008 THU 07:30 AM QUARTZ VALLEY INDIAN RES FAX NO. 1 530 488 S908 P03

3, The Tribe hereby designates its Tribal Chairman os its agent for service
process under the Ordinance; and

4. The Tribe hereby authorizes its Tribal Attorney to submit the ordinance,
duly executed by the Tribal Chairman and Tribal Secretary to the National Indian
Gaming Commission for approval.

CERTIFICATION

‘The undersigned Vice-Chairperson and Secretary of the Tribe hereby certify
that the foregoing resolution embedies the action taken at a duly called meeting of
the Quartz Valley Indian Community General Council on 12-08, 2007 with a
Quorum present by 2 majority of the quorum present and voting,

ATTESTED:

9/?[0¥

Date

PB nicgt afrjox

Evette Lewis, Secretary

Adminiswation: (530) 468-5907 Fax: (530) 468-3908

13601 Quartz Valley Road, Fort Jovies, CA 96032 —o=

erd S€2e-29% (202) NOLSYUW ONY LaOddua dest21 @0 So das


(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 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: Tribal Council 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 directly
related to or living with any of the above; persons ineligible to be key employees
or primary management officials. Non-tribal members previously convicted of a
felony, of embezzlement, of theft, or of any other money-related crime
or honesty-related crime (such as frauc) cannot serve as Tribal Gaming
Commissioners. 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) will only be allowed to serve as Tribal Gaming
Commissioners if the Tribal Council specifically finds a significant amount of time
has passed and that the person is now of trustworthy character. 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.

di) The independence of the Tribal Gaming Commission is essential to a
well-regulated gaming operation. For that reason, Commissioners may only be

11


(d)

(e)

(f)

(f

Section 110.

(a)
Tribal

Members of the Executive Committee may be compensated at a level
determined by the Tribal Council. Executive Committee members who
are contemporaneously serving on the Tribal Council, Board of Directors
or Gaming Commission while serving on the Executive Committee may
not receive compensation for their committee work if they are already
receiving compensation for that sarne work from the other entity.

Executive Committee action must be made upon a majority vote of a
quorum of committee members. Quorum requires a minimum of 50% of
the Committee in attendance at a duly noticed meeting. Procedures for
holding regular and special meetings, and giving notice thereof, shall be
adopted in writing by the Executive Committee. The Committee shall
keep a written record of all of its meetings.

An Executive Committee would be appropriate during the initial
development of a gaming facility in order to provide for prompt, decisive
and authoritative action in dealings with investors, vendors, contractors,
and local, State and Federal government agencies. An Executive
Committee would not be appropriate to oversee, monitor, audit or
otherwise supervise the activities of the Gaming Board of Directors or the
Gaming Commission, or any of its rnembers.

Upon the expiration of the term designated by the Tribal Council at the
inception of the Executive Committee, or upon completion of the project,
assignment or matter for which the Committee was formed, the Executive
Committee shall automatically terminate and have no further binding
authority, unless the Tribal Council designates otherwise.

Ethics

The Tribe recognizes that the duties of the Gaming Board of Directors,
Gaming Commission, and any Executive Committee include making

important decisions on highly sensitive issues. As such, the Tribe has
determined that members of the Board of Directors, Gaming Commission and the
Executive Committee shall be held to extremely high ethical standards. Prior to
taking their positions on the Board, Commission, or Committee, 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.

(a) Per Capita distributions are not considered financial interests

that would conflict with the conscientious performance of duty by a
manager or regulator.

13


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SEP-04-2008 THU 07:30 AM QUARTZ VALLEY INDIAN RES FAX NO. 1 530 468 5908 P, 02

3 Quartz Valley indtan Reservation

—— =

RESOLUTION NO,

RESOLUTION OF THE GENERAL (COUNCIL OF THE
QUARTZ VALLEY INDIAN COMMUNITY OF THE
QUARTZ VALLEY RESERVATION OF CALIFORNIA
APPROVING TRIBAL GAMING ORDINANCE,
AUTHORIZING TRIBAL CHAIRMAN TO SIGN
ORDINANCE AND DESIGNATING TRIBAL
CHAIRMAN AS AGENT FOR SERVICE OF PROCESS.

WHEREAS,

1, The Quartz Valley Indian Community of the Quartz Valley Reservation of
California (“Tribe”) is a federally recognized tribe, authorized to conduct gaming on
its Indian Lands as defined in the Indian Gaming Regulatory Act; and

2. The Tribe has jurisdiction over the Quartz Valley Indian Reservation in
Siskiyou County, California and other lands in dose proximity to the reservation
which are held In trust for the Tribe by the Unitcd States; and

3. The Tribe may acquire additional Indian Lands upon which it is entitled to
conduct gaming under the provisions of the IGRA; and

4. Under the IGRA the Tribe must adopt a tribal ordinance in compliance with
the IGRA before it may lawfully conduct garning on: its Indian Lands; end

5. Under its Tribal Constitution the Tribe's (Senera! Council, consisting of ail
vating members of the Tribe, is authorized to adopt ordinances for the benefit of the
Tribe; and

6. The General Council has determined that the ordinance in the unsigned
form attached hereto as Exhibit A 1s in the best interests of the Tribe and will permit
the Tribe to conduct properly regulated Indian gaming that benefits the economic
development of the Tribe and protects the public health, safety and welfare; and

7. The General Council approved the ordinance in the form of Exhibit A at its
regular mecting on |).- 2007;

NOW, THEREFORE, BE IT RESOLVED that:

1. The Tribe hereby approves and adopts the Triba! Gaming Ordinance in the
unsigned form attached herete as Exhibit A;

2. The Tribe authorizes the ordinance to be signed by its Tribal Chairman and
attested by the Tribal Secretary; and

Administration: (530) 468-5907 Fax; (9.40) 468-5908

= 13601 Quart: Valley Rdad, Fort Jones, CA 96032

acd SE2Zb-29% (2024) NOLSYUK ONY LYOddua destzt BO so das


C*E*R*T*F*I*C*A*T*1*O*N

The foregoing ordinance adopted by a vote of \ dt for, U 0 against and abstentions, at a
duly ua meeting ffi Quai a India Resery ration at which a quorum was present on

the aa of ICOM pur

SIGNED:

eS 4

Harold Bennett, Chairman or Tribal Official Date
Quartz Valley Indian Reservation

ATTEST:

Clo Sf)

Secretary Date
Quartz Valley Indian Reservation



OCT-09-2008 THU 11:13 AM QUARTZ VALLEY INDIAN RES FAX NO. 1 530 468 5908 P, 02

CERTIFICATION OF TRIBAL SECRETARY
RE: ADOPTION OF GAMING ORDINANCE

L Evene Lewis, hereby certify as follows:

1, Tam the Tribal Secretary of the Quartz Valley Indian Community of the
Quartz Valley Indian Reservation of California (“Tribe”).

2. The Tribe carrently has under submission to the National Indian Gaming
Commission a Gaming Ordinance.

3. The Gaming Ordinance, Ordinance No. 2006-04, was approved by the General
Community Council of the Tribe ai « duly called meeting on January 06, by a vote
of 16 for, 0 against, and 1 abstention. A total of }7 voting members of Tibe attended
that meeting. All of the attendees were resident voting members of the Tribe. On
December 8, 2007, Ordinance No, 2006-04 was approved as revised and submitted to the
National Indian Gaming Commission on or about July |8, 2008. The General
Community Council took this action at a duly called meeting on that date by a vote of 11
for, 0 against, and } abstention. A total of 16 voting members of the Tribe attended that
meeting. All of the attendees were resident voting members of the ‘{ribe.

4. Under Article III, Section 9 of the Tribe's Constitution and Bylaws, approved
by the Secretary of Interior on June 15, 1939, a quorum of the General Community
Council consists of 1/3 of the resident voting members. There are 29 resident voting
members of the Tribe. Accordingly, 10 resident voting members constitute a quorum of
the General Community Council. Ordinance No, 2006-04 was passed by a majority ofa
quorum of the General Community Council, and was revised on December 8, 2007, by a
majority of a quorum of the General Community Council.

I declare under penalty of perjury under the laws of the State of Califomia that the
foregoing is true and correct.

Executed in Quart Valley, California on October 9, 2008.

: io
é ic

Coy
Evette Lewis, Tribal Secretary

‘SADJR\Revas081Q VICICER TIFICATION OF TRIBAL SECRETARY. doe


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) No member of the Tribal Council or Tribal Gaming Board of Directors
may serve on the Gaming Commission;

(2) No member directly related to or living with any Tribal Council
member or Tribal Gaming Board of Directors member may serve on the
Gaming Commission;

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

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

(d) Tribal Gaming Commissioner positions shall be filled in the following
manner:

Through appointment by the Tribal Council.
(e) Nominees for positions of Tribal Gaming Commissioner must satisfy the
Suitability standards set forth for key employees and primary management
Officials, found in Sections 201 et seq. of this Ordinance. Such background
investigations shall be performed under the direction of the Tribal Gaming
Commission, its agent, or such law enforcement agency or private investigator
duly designated by the Tribal Gaming Commission.
(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;


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 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 grounds for their proposed removal before the removal is
considered. A vote of the 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.

(I) Tribal Gaming Commissioners shall be compensated at a level
determined by the Tribal Council. 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.

Section 109. Executive Committee

(a) The Tribal Council may, from time to time, form an Executive Committee
to act on its behalf on specified gaming issues or matters. The formation
of such a committee would be appropriate in circumstances where prompt
and decisive action is necessary, unencumbered by the usual procedures
for Tribal Council action. If formed, an Executive Committee would have
authority to bind the Tribal Council and the Tribe on those matters for
which it is authorized. The Executive Committee serves at the pleasure
of the Tribal Council, and must act in the best interests of the Tribe.

(b) An Executive Committee must have at least three (3), and no more than
five (5), members. The Executive Committee shall consist of a
Chairperson, Vice-Chairperson and Director(s). Members shall be
appointed by the Tribal Council and shall be elected to offices by a
majority of the committee members.

(c) Members of the Executive Committee must be Tribal Members. They
may be, but need not be, members of the Tribal Council, Board of
Directors or Gaming Commission. The members of the Executive
Committee shall be subject to the same background requirements as key
employees and primary management officials, and must be licensed
accordingly.

12