~1I I 3 1995

ORDINANCE

OF THE PASSAMAQUODDY TRIBE

Governing the Conduct of Dass II Gaming Activities

I. PURPOSE

The Joint Tribal Council, the governing body of the Passamaquoddy Tribe,

having the authority to enact tribal ordinances, hereby enacts this ordinance in

order to set the terms for the conduct of Class II gaming activities within

Passamaquoddy Indian Territory.

II. GAMING AUTHORIZED

Class II gaming as defined in the Indian Gaming Regulatory Act (IGRA),

P.L. 100-497, 25 U.S.C. Section 2703(7) and by the regulations issued by the National

Indian Gaming Commission and published at 25 C.F.R. Part 502 are hereby

authorized to be conducted within Passamaquoddy Indian Territory by the

Passamaquoddy Tribe (the Tribe), or for the Tribe by a person or persons under

contract with the Tribe for that purpose, under the terms of IGRA.

III. 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.

IV. USE OF GAMING REVENUE

A. Net revenues from gaming authorized under this Ordinance shall be

used only for the following purposes:

1. to fund tribal government operations or programs;

2. to provide for the general welfare of the Passamaquoddy Tribe

and its members;

3. to promote tribal economic development;

4. to donate to charitable organizations; or

5. to help fund operations of local governmental agencies.

B. If the Tribe elects to use net revenues from Class II gaming to make per

capita payments to tribal members, it shall authorize such payments only upon

approval of a plan submitted to the Secretary of the Interior under 25 U.S.C. § 2710(b)(3).

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V. AUDIT

A. The Tribe shall cause to be conducted annually an independent audit of

all gaming operations conducted under the terms of this Ordinance, 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 annually, except contracts for

professional legal or accounting services, shall be specifically included with the

scope of the audit required by this section.

VI. PROTECTION OF THE ENVIRONMENT AND PUBLIC HEALTH

AND SAFETY

Facilities for the conduct of gaming under this Ordinance shall be constructed,

maintained and operated in a manner that adequately protects the environment

and the public health and safety.

VII. 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 Class II gaming facility operated within Passamaquoddy Indian

Territory:

A. Definitions. For purposes of this Ordinance, the following

definitions apply:

1. Key Employee includes:

(a) A person who performs one or more of the following functions in

connection with any Class II gaming conducted under this

Ordinance;

(1) Bingo caller;

(2) Counting room supervisor;

(3) Chief of security;

(4) Custodiar~ of gaming supplies or cash;

(5) Floor manager; or

(6) Approver of credit.

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(b) If not otherwise included, any other person whose total cash

compensation from tribal gaming operations is in excess of

$50,000 per year; or

(c) If not otherwise included, the four most highly compensated

persons in any gaming operation conducted under this

Ordinance.

2. Primary management official means:

(a) The person designated by a management contract as having

management responsibility for the gaming operation, or a

portion thereof;

(b) Any person who has the authority:

(1) to hire or fire employees; or

(2) to set up working policy for the gaming operation; and

(c) The chief financial officer or other person who has financial

management responsibility.

B. Application Forms.

1. The following notice shall be placed on the application form for a key

employee or a primary management official before that form is filled out by an

applicant:

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 National Indian Gaming Association 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 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 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 tribes being unable to hire

you in a primary management official or key employee position.

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The disclosure of your Social Security Number (SSN) is voluntary. However,

failure to supply a SSN may result in errors in processing your application.

2. Existing key employees and primary management officials shall be notified

in writing that they shall either:

a: complete a new application form that contains a Privacy Act notice; or

b. sign a statement that contains the Privacy Act notice and consent to the

routine uses described in that notice.

3. The following notice shall be placed on the application form for a key

employee or a primary management official before that form is filled out by an

applicant:

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.)

4. The Tribe shall notify in writing existing key employees and primary

management officials that they shall either:

a. complete a new application form that contains a notice regarding false

statements; or

b. sign a statement that contains the notice regarding false statements.

C. Background Investigations.

1. The Tribe shall request from each primary management official and

from each key employee all of the following information:

a. Full name, other names used (oral or written), social security

number(s), birth date, place of birth, citizenship, gender, all languages

(spoken or written);

b. Currently, and for the previous 5 years: business and employment

positions held, ownership interests in those businesses, business and

residence addresses, and drivers license number(s) and issuing

jurisdiction;

c. 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 (1)(b)

of this section;

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d. Current business and residence telephone numbers;

e. A description of any existing and previous business relationships with

Indian tribes, including ownership interests in those businesses;

f. A description of any existing and previous business relationships

within the gaming industry generally, including ownership interests in

those businesses;

g. 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 nor such license or permit was granted;

h. For each felony for which the applicant is subject to an ongoing

prosecution or has been convicted, the charge, the name and address of

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

i. 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;

j. 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 (1)(h) or (1)(i) of this section, the criminal charge, the name

and address of the court involved and the date and disposition;

k. 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;

1. A current photograph;

m. Any other information the Tribe deems relevant; and

n. Fingerprints consistent with procedures adopted by the Tribe and

regulations of the National Indian Gaming Commission and/or the

Federal Bureau of Investigation.

2. The Tribe shall conduct an investigation sufficient to make a

determination under subsection D of this section. In conducting a background

investigation, the Tribe or its agent shall promise to keep confidential the identity of

each person interviewed in the course of the investigation.

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3. The Trib&s investigation of each applicant for a license under this

section will include a request for criminal records information from the Federal

Bureau of Investigation (FBI). Criminal records information will be accessed

through the National Indian Gaming Commission until such time as access by the

Tribe directly or through an agency of the State of Maine is authorized.

D. Eligibility Determination.

The Tribe shall review a persons prior activities, criminal record, if any, and

reputation, habits and associations to make a finding concerning the eligibility of

each applicant for employment as a key employee or primary management official

in the Tribes Class II gaming operation. If the Tribe 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, the tribal gaming operation shall

not employ that person as a key employee or primary management official.

E. Procedures for Forwarding Applications and Reports for Key

Employees and Primary Management Officials to the

National Indian Gaming Commission.

1. When a key employee or primary management official begins work at

a gaming operation authorized by this Ordinance, the Tribe 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.

2. The Tribe shall forward the report referred to in Subsection F of this

section to the National Indian Gaming Commission within 60 days after an

employee begins work as a key employee or primary management official, or within

60 days of the approval of this Ordinance by the Chairman of the National Indian

Gaming Commission.

3. The gaming operation shall not employ any person for more than 90

days as a key employee or primary management official of a gaming operation

conducted under this Ordinance unless that person holds a valid license issued by

the Tribe.

F. Report to the National Indian Gaming Commission.

1. Pursuant to the procedures set out in subsection E of this section, the

Tribe shall prepare and forward to the National Indian Gaming Commission a

report of the background investigation of each person who is approved by the Tribe

for or holds a position as a key employee or primary management official of a

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gaming operation conducted under this Ordinance. An investigative report shall

include all of the following:

a. Steps taken in conducting a background investigation;

b. Results obtained;

c. Conclusions reached; and

d. The bases for those conclusions.

2. The Tribe shall submit, with the report, a copy of the eligibility

determination made under subsection D of this section.

3. If a license is not issued to an applicant, the Tribe:

a. Shall notify the National Indian Gaming Commission; and

b. May forward copies of its eligibility determination and investigative

report (if any) to the National Indian Gaming Commission for inclusion in

the Indian Gaming Individuals Records System.

4. With respect to all persons hired as a key employee or a primary

management official, the Tribe shall retain applications for employment and reports

(if any) of background investigations for inspection by the Chairman of the National

Indian Gaming Commission or his or her designee for no less than three (3) years

from the date of termination of employment.

G. Granting a Gaming License.

1. If, within a thirty (30) day period after the National Indian Gaming

Commission receives a report, the National Indian Gaming Commission notifies

the Tribe that it has no objection to the issuance of a license pursuant to a license

application filed by a key employee or a primary management official for whom the

Tribe has provided an application and investigative report to the National Indian

Gaming Commission, the Tribe may issue a license to such applicant.

2. The Tribe 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 G(1) of this section until

the Chairman of the National Indian Gaming Commission receives the additional

information.

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3. 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 Tribe 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.

H. License Suspension.

1. If, after the issuance of a gaming license, the Tribe receives reliable

information indicating that a key employee or a primary management official is not

eligible for employment under subsection D above, the Tribe shall suspend, if the

information is from the National Indian Gaming Commission, or may suspend, if

the information is from another source, such license, and shall notify in writing the

licensee of the suspension and the proposed revocation of his or her tribal license.

2. The Tribe shall notify the licensee of a time and a place for a hearing on

the proposed revocation of a license.

3. After a revocation hearing, the Tribe shall decide to revoke or to

reinstate a gaming license, including the effective date of that decision. The Tribe

shall notify the National Indian Gaming Commission of its decision.

VIII. Licensing Actions

1. The Tribe shall issue a separate license to each place, facility, or location

within Passamaquoddy Indian Territory where Class II gaming is authorized to be

conducted under this Ordinance.

2. All licensing decisions made by the Tribe under this Ordinance shall be

made by the Joint Tribal Council of the Passamaquoddy Tribe, or by those officials of

the Tribe who may hereafter be designated by the Joint Tribal Council to exercise

such authority. Any hearing held under Part VII of this Ordinance for the

revocation of a tribal gaming license shall be held by the Tribal Governors of the

Indian Township and Pleasant Point Reservations, and a videotape, audio recording

or written transcript of the hearing shall be made available to all members of the

Joint Tribal Council, or, if license revocation authority has been delegated pursuant

to this section, to those officials designated by the Joint Tribal Council for that

purpose.

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IX. Repeal

To the extent that they are inconsistent with this Ordinance, all prior tribal

gaming Ordinances are hereby repealed.

CERTIFICATION

I, the undersigned Clerk of the Joint Tribal Council of the Passamaquoddy

Tribe, do hereby certify

(1) that public hearings were held by the Joint Tribal Council on April 13, 1995

at the Pleasant Point Reservation and at the Indian Township Reservation to

receive public comment on the foregoing Ordinance of the Passamaquoddy Tribe

Governing the Conduct of Class II Gaming Activities, and that seven days advance

notice of the hearings was conspicuously posted at both reservations;

(2) that a meeting of the Joint Tribal Council of the Passamaquoddy Tribe was

duly noticed and held at the Indian Township Reservation, Indian Township,

Maine, on April 13, 1995 after the completion of the aforesaid public hearings, and

that a quorum of the Joint Tribal Council of the Passamaquoddy Tribe consisting of

either the Governor or the Lt. Governor of each reservation and not fewer than

eight voting members, including at least four voting members from each

Reservation, was present at the said meeting; and

(3) that the foregoing Ordinance of the Passamaquoddy Tribe Governing the

Conduct of Class II Gaming Activities was circulated in writing to all members of

the Joint Tribal Council present prior to being voted upon at the rn,i~eting, and that

the said Ordinance was duly adopted by the affirmat,bi,~ vote of ( members, who

at the time of the vote constituted a majority of the members of the Joint

Tribal Council then present and voting.

Dated: 1fll/ot ~51I IcL~T ~

Joint Tribal Council

\Bingo\CIIOrd

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