TAOS PUEBLO AMENDED

GAMING ORDINANCE

May 26, 1995
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TABLE OF CONTENTS

TAOS PUEBLO AMENDED GAMING ORDINANCE

Section 1. Name.

Section 2. Definitions

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Section 3. Purposes

Section 4. Interpretation.

Section 5. Gaming Policy

A. Games of Chance Prohibited.

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Equipment

Bingo

Class II Gaming .

Class III Gaming

Comrn~ssion

Games of Chance .

Gaming Device or Gaming

Gaming Employee .

Gaming Enterprise

Gaming Facility .

Gaming Services .

Governor

Gross Receipts

IGRA

Joint Powers Agreement

Key Employee

License

Licensee

Manager

Management Contract .

Management Contractor

Member of the Pueblo

National Indian Gaming Commission

Net Revenues

Occasion

Person

Primary Management Official

Premises

Pueblo

Reservation

Site License

State Gaming Representative

TPE

Temporary License

This Gaming Ordinance .

Tribal Council

Tribal Court

Tribal-State Compact .

WarChief

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B. Ownership of Gaming Enterprise .

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C. Protection of Environment; Public Health and Safety. 8

D. Age Restrictions 8

Section 6. Taos Pueblo Gaming Commission

A. Establishment of Commission 8

B. Powers and Duties 8

C. Composition; Staggered Terms 13

D. Initial Commissioners 13

E. Qualifications of Commissioners 13

F. Removal of Commissioners 14

G. Resignations and Vacancies 15

H. Selection of Chairman 15

I. Motions and Resolutions; Meetings; Quorum. . .16

J. Notice 16

K. Cooperation with Law Enforcement Agencies. . .

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L. Compensation for Service; Reimbursement of Expenses 17

Section 7. Gaming Commissions Relationship to Tribal

Government 17

A. Agency of Tribal Government 17

B. Independent Decision-Making Authority 17

Section 8. Licenses for Operating and Conducting Games of

Chance 17

A. Licenses Required . .

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B. License Application 18

C. Background Investigations 21

D. Procedures for Forwarding Applications and Reports 23

E. Granting a Gaming License; Standards 24

F. Fees for Licensing 27

G. Duration and Renewal of Licenses 27

Section 9. Management Contract . . . . .

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A. License Required 27

B. Contract Requirements 28

C. Standards of Approval 31

D. Action by Commission 31

E. Modification and Revocation of Management Contract 31

Section 10. Providers of Class III Gaming Equipment or

Supplies. .

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Section 11. Financial Practices and Reporting . . . . .

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A. Monthly Reports 33

B. Maintenance of Books and Records; Commission Access 33

C. Allowable Operating Expenses 35

D. Deposit of Gross Receipts; Payment of Operating

Expenses 35

E. Annual Audit 36

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G.

F. Audit

Disposition

of Contracts

of Net Revenues

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H. Compliance with Bank Secrecy Act and

Internal Revenue Code.

12. Protection of Patrons

Liability to Patrons

Public Health and Safety

13. Class II and Class III Games .

Class II Games

Class III Games; Tribal-State Compact Required

Designation of Officer in Charge

Premises Open to Commission

Merchandise Prizes

Usual Prices

Limits on Prizes

Rules of Play for Bingo Games

Employees; Prohibition Against Employees Playing

Qualification for Employment; Testing

Preference in Employment

Personnel Policies

Hiring and Training of Employees

Expenses of Training Employees .

14. Suspension or Revocation

Grounds

Notice; Immediate Suspension

Contents of Complaint; Service .

Answer; Subpoenas

Hearing; Written Decision

Surrender of License

Additional Sanctions

Appeal to Tribal Court

15. Prohibited Acts

16. Penalties

17. Enforcement; Jurisdiction; Subpoenas

Civil Remedies in Court

Tribal Court Jurisdiction

Enforcement of Commission Subpoenas

18. Severability

19. Sovereign Immunity

20. Amendments

21. Effective Date

Section

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TAOS PUEBLO AMENDED GAMING ORDINANCE

WHEREAS, The Taos Pueblo (the Pueblo) is a duly recognized

sovereign Indian tribe whose traditional law empowers the Tribal

Council to enact ordinances; and

WHEREAS, The Pueblos previously adopted gaming ordinances need

amendment to place the relevant requirements in one ordinance and

to include provisions required by the Taos Pueblo-New Mexico Gaming

Compact and Revenue Sharing Agreement which became effective March

22 upon approval by the Secretary of the Interiors designate;

NOW THEREFORE BE IT RESOLVED BY THE TRIBAL COUNCIL OF THE TAOS

PUEBLO:

Section 1. Name

The name of this Ordinance shall be the Taos Pueblo Amended

Gaming Ordinance.

Section 2. Definitions

The following words shall have the following meanings under

this Ordinance, unless the context otherwise requires:

A. Bingo means the game of chance commonly known as

bingo (whether or not electronic, computer, or other technologic

aids are used in connection therewith) which is played for prizes,

including monetary prizes, with cards bearing numbers or other

designations in which the holder of the card covers such numbers or

designations when objects, similarly numbered or designated, are

drawn or electronically determined, and 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;

B. Class II gaming means bingo as defined above and nonbanking card games that New Mexico law explicitly authorizes, or

does not explicitly prohibit, and that are played legally anywhere

in New Mexico; provided that players on the Reservation play in

conformity with New Mexico law and regulations concerning hours,

periods of operation and limitations on wagers and pot sizes;

C. Class III gaming means all forms of gaming that may be

operated or conducted only in conformance w~th a Tribal-State

Compact negotiated and entered into pursuant to Section 11(d) of

the IGRA~

D. Commission means the Taos Pueblo Gaming Commission

established by this Ordinance;

E. Games of chance includes Class II and Class III

gaming, but does not include social games played 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;

F. Gaming Device or Gaming Equipment means any equipment

or mechanical, electro-mechanical, or electronic contrivance,

component, or machine used remotely or directly in connection with

gaming.

G. Gaming Employee means any natural person employed by a

Gaming Enterprise or Management Contractor.

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H. Gaining Enterprise means an enterprise, including Taos

Pueblo Enterprises, Inc. (TPE), owned by the Pueblo for the

conduct of the gaming in any gaming facility on the Reservation.

I. Gaming Facility means the building location or room in

which Class II and/or Class III gaming is conducted on the

Reservation.

J Gaming Services means the provision or sale of any

goods, services or concessions by contract to the Pueblo, Gaming

Enterprise, or Management Contractor in connection with the

operation of gaming in a Gaming Facility in an amount in excess of

$10,000 in any one month, except for professional, legal or

accounting services. ~o contract may be broken up into parts for

the purpose of avoiding this definition or any requirement of

licensing or certification.

K. Governor means the Governor of Taos Pueblo;

L. Gross receipts means receipts from the sale of shares,

tickets, or rights in any manner connected with participation or

the right to participate in any game of chance, including but not

limited to, any admission fee or charge, the sale of merchandise,

refreshments, souvenirs, services, equipment, or supplies, interest

earned on deposits, and all other miscellaneous receipts;

M. IGRA means the Indian Gaming Regulatory Act, P.L. 100-

447, 25 U.S.C. Sections 2701-2721 and 18 U.S.C. Sections 1166-1168.

N. Joint Powers Agreement means an agreement concerning

games of chance on the Reservation entered into under the Joint

Powers Agreements Act, Sections 11-1-7, N.M.S.A. 1978 (1994 Repl.)

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0. Key Employee means:

1. A person who performs one or more of the following

functions:

(a) Bingo caller;

(b) Counting room supervisor;

(c) Chief of security;

(d) Custodian of gaming supplies or c~sn;

(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 (4) most highly

compensated persons in the gaming operation.

P. License means a license duly issued by the Commission

to principals, primary management officials and key employees of

any gaming enterprise conducted on the Reservation and to others

pursuant to this Gaming Ordinance;

Q. Licensee means any entity or person who has been duly

licensed by the Commission;

R. Manager means the Manager of gaming for TPE, and if TPE

enters into a Management Contract, the chief Management Contractor

shall be the Manager.

S. Management Contract means a contract within the meaning

of IGRA, 25 U.S.C. §~ 2710(D) (9) and 2711, as defined in 25 C.F.R.

Sec. 502.15: any contract, subcontract, or collateral agreement

between the Pueblo (or TPE) and a contractor or between a

contractor and a subcontractor if such contract or agreement

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provides for the management of all or part of a gaming operation.

T. Management Contractor means any person or entity that

has entered into a Management Contract with TPE.

U. Member of the Pueblo means an enrolled member of Taos

Pueblo;

V. National Indian Gaming Commission and NIGC mean the

National Indian Gaming Commission established by the IGRA;

W. Net revenues means the gross receipts less amounts paid

out as, or paid for, prizes and total operating expenses, excluding

management fees.

X. Occasion means a gathering at which a game of chance is

played;

Y. Person means an individual, trust, firm, association,

partnership, political subdivision, government agency,

municipality, industry, public or private corporation, or any other

legal entity whatsoever;

Z. Primary Management Official means:

1. The person 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

3. The chief financial officer or other person who has

financial management responsibility.

AA. Premises means any room, hail, building, enclosure, or

outdoor or other area used for the purpose of playing a game of

chance;

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BB. Pueblo means the Pueblo of Taos;

CC. Reservation means the Taos Indian Reservation and

includes any lands title to which is held in trust by the United

States for the benefit of the Pueblo of Taos or held by the Pueblo

of Taos subject to a restriction by the United States against

alienation, and over which lands the Pueblo of Taos exercises

governmental power;

DD. Site License means a license duly issued by the

Commission for each Gaming Facility at each location at which games

of chance are permitted to be conducted on the Reservation;

EE. State Gaming Representative means that person

designated by the Governor of the State of New Mexico who will be

responsible for actions of the State set out in the Tribal-State

Compact;

FF. TPE means Taos Pueblo Enterprises, Inc., chartered by

the Pueblo.

GG. Temporary License means a license for no longer than 90

days issued by the Commission to an applicant who has filed with

the Commission a completed application, pending the results of

background checks required by this Ordinance. Such temporary

licenses shall be issued only when needed to acquire necessary

personnel for the conduct of games of chance on the Reservation and

they shall not be issued if the background investigation undertaken

discloses that the applicant has a criminal history or if other

grounds sufficient to disqualify the applicant are apparent on the

face of the application. The temporary license shall become void

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and of no effect upon 1) the issuance of a license; 2) the issuance

of a notice of denial; or 3) ninety (90) days after the temporary

license is issued, whichever occurs earlier;

HH. This Gaming Ordinance and this Ordinance mean this

Taos Pueblo Gaming Ordinance, any amendments thereto, and any rules

or regulations promulgated hereunder;

II. Tribal Couiicil means the Tribal Council of the Pueblo

of Taos, the governing body of the Pueblo;

JJ. Tribal Court means the Taos Pueblo Tribal Court; and

KK. Tribal-State Compact and Compact mean any compact

entered into by the Pueblo and the State of New Mexico under

Section 11(d) of ~he IGRA.

LL. WarChief means the WarChief of Taos Pueblo.

Section 3. Purposes

The purposes of this Gaming Ordinance are to make lawful and

provide for the regulation of all playing of games of chance on the

Reservation, to protect the integrity of all such gaming, to

prevent improper or unlawful conduct in gaming, to strengthen

tribal government and promote tribal economic self-sufficiency and

land acquisition.

Section 4. Interpretation

This Gaming Ordinance is an exercise of the sovereign power of

the Pueblo and shall be liberally construed for the accomplishment

of its purposes and to comply with the Indian Gaming Regulatory

Act.

Section 5. Gaming Policy

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A. Games of Chance Prohibited. ~To person may operate or

conduct any games of chance within the boundaries of the

Reservation except in accordance with the provisions of this Gaming

Ordinance.

B. Ownership of Gaming Enterprise. The Pueblo of Taos,

acting through the Tribal Council and Taos Pueblo Enterprises,

Inc., an enterprise wholly owned by the Pueblo, shall have the sole

proprietary interest in and responsibility for the operation and

conduct of any games of chance operated or conducted on the

Reservation.

C. Protection of Environment; Public Health and Safety. The

construction and maintenance of any gaming facility, and the

operation and conduct of any and all games of chance, shall be done

in a manner that adequately protects the environment and the public

health and safety.

D. Age Restrictions. No person under 18 years of age may

participate in any Class III gaming on the Reservation and no

person under 18 may be a key employee or primary management

official of any gaming enterprise on the Reservation.

Section 6. Taos Pueblo Caming Commission

A. Establishment of Commission. There is hereby established

the Taos Pueblo Gaming Commission for the purposes of regulating

all games of chance within the Reservation and enforcing this

Gaming Ordinance.

B. Powers and Duties. The Commission shall have the

following powers and duties:

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1. To recommend to the Tribal Council whether it should

permit or refuse to permit the operation or conduct of any games of

chance within the Reservation, and to specify the conditions for

the operation or conduct of any permitted games of chance within

the Reservation.

2. To inspect and examine all premises within the

Reservation at which games of chance are played to insure that all

gaming facilities are constructed, maintained and operated in a

manner that adequately protects the environment and the public

health and safety as required by Section 5(C) above.

3. To issue separate site licenses to each Gaming

Facility or location on the Reservation where the Tribal Council

permits gaming to occur.

4. Subject to final approval by the Tribal Council to

negotiate and enter into Tribal-State compacts on behalf of the

Pueblo.

5. Subject to final approval by the Tribal Council to

negotiate and enter into, on behalf of the Pueblo, Joint Powers

Agreements related to games of chance on the Reservation.

6. To implement and administer a system, including the

promulgation of regulations, for investigating, licensing and

monitoring management, employees, vendors and others connected with

gaming activities, including the issuance of site licenses to

gaming facilities, and the issuance of temporary licenses and

licenses to individuals and entities and the verification of

internal controls, as required under this Ordinance, IGRA, and any

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Tribal-State compact or equivalent procedures prescribed by the

Secretary of the Interior.

7. To conduct background investigations regarding any

person or entity in any way connected with any gaming activity and

issue licenses to, at minimum, all qualified gaming enterprise key

employees and primary management officials under requirements at

least as strict as those established in Section 8(E) (3) of this

Gaming Ordinance; and grant, condition, suspend, revoke, and renew

licenses and hear and decide matters affecting such granting,

conditioning, suspension, revocation, or renewal of licenses.

8. Promulgate rules for any Class II or Class III

gaming activity on the Reservation, except that rules for Class III

activities shall not be in conflict with rules, if any, adopted

under any Tribal-State compact.

9. To make such reports regarding Class III gaming to

the State Gaming Representative as are required by the Tribal-State

Compact and to inspect and copy New Mexico state records concerning

all Class III gaming conducted under this Ordinance.

10. To inspect, examine, photocopy, and audit all

papers, books, and records respecting gaming activities conducted

within the Reservation and any other matters necessary to carry out

the duties of the Commission under this Gaming Ordinance.

11. To investigate any suspicion of wrongdoing in

connection with any gaming activity.

12. To conduct or cause to be conducted such

investigations as may be necessary to determine in connection with

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any gaming activity, compliance with law, including this Gaming

Ordinance, or with any contracts or agreements related to gaming

activities.

13. To hold such hearings, sit and act at such times and

places, take testimony, and receive such evidence as the Gaming

Commission deems relevant in fulfilling its duties.

14. To require by subpoena the attendance and testimony

of witnesses and the production of all books, papers, and documents

relating to any matter under consideration or investigation by the

Commission, and to bring actions in the Tribal Court for the

enforcement of such subpoenas.

15. To administer oaths and affirmations to witnesses

appearing before the Commission.

16. To bring suit in the Tribal Court seeking temporary

and permanent orders closing a game of chance in accordance with

this Gaming Ordinance.

17. To enter into contracts with tribal, federal, state

and private entities for activities necessary to the discharge of

the duties of the Commission and to contract with the National

Indian Gaming Commission for the enforcement of federal regulations

governing gaming on Indian reservations, provided that the

Commission may not employ any person who would be disqualified from

being a Commissioner under one or more of the four (4) prohibitions

in subsection 6(E) below, and provided further that the Commission

shall utilize the Tribal Attorney unless the Commission requests

and the Tribal Council approves a contract with another attorney or

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law firm.

18. Subject to the approval of the Tribal Council, to

adopt the budget of the Commission at least annually and to adopt

modifications in such budget.

19. To establish and collect license, investigation and

regulatory fees to cover or help cover the costs connected

therewith.

20. To approve management contracts in accordance with

this Gaming Ordinance.

21. To hear appeals in accordance with this Gaming

Ordinance.

22. To keep minutes, records, and books in which shall

be kept a true, faithful, and correct record of all proceedings of

the Commission.

23. To promulgate rules and regulations, in addition to

those required by subsection B(8) above, as it deems appropriate to

implement the provisions of this Gaming Ordinance.

24. To recommend amendments to this Gaming Ordinance to

the Tribal Council.

25. To insure that net revenues from any gaming

activities on the Reservation deposited in the general fund of the

Pueblo are used only in accordance with Section 11(G) of this

Gaming Ordinance.

26. To submit an annual report to the Tribal Council,

Governor and WarChief on the activities of the Commission, such

report to include information on the funding, income and expenses

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of the Commission.

27. To take any other action as may be reasonable and

appropriate to enforce this Ordinance and the rules and regulations

of the Commission.

C. Composition; Staggered Terms. The Commission shall

consist of three (3) Commissioners appointed by the Tribal Council.

Each Commissioner shall serve for a term of four (4) years;

provided that in order to stagger the expiration of terms of

office, the first Commissioner appointed shall serve a four-year

term, the second Commissioner appointed shall serve a three-year

term, and the third Commissioner appointed shall serve a two-year

term. A Commissioner may serve after the expiration of his or her

term of office until a successor has been appointed, unless such

Commissioner has been removed for cause under subsection F of this

Section. Commissioners may serve for more than one term. No

Commissioner may play any games of chance on the Reservation or win

any prize or thing of value on the Reservation during his or her

term as Commissioner or for ninety (90) days thereafter.

D. Initial Co~imissioners. The initial Commission shall

consist of the following persons whose terms shall be as described:

Eileen Lujan (____ years)

Vicente J. Lujan, Sr. (____ years)

Hubert Mirabal (_____ years)

E. Qualifications of Con~missioners. At least one (1)

Commissioner must be a member of the Pueblo. No person shall be

eligible or qualified to serve or continue to serve as a

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Commissioner who:

1. Has been convicted of a felony or gaming offense;

2. Is a Director of TPE;

3. Is an employee of any gaming enterprise on the

Reservation;

4. Has any financial interest in, or responsibility

for, any gaming activity; or

5. Has any financial interest in, or responsibility

for, any gaming-related contract on the Reservation.

F. Removal of Commissioners. A Commissioner may be

involuntarily removed from office prior to the expiration of

his/her term in accordance with the following procedures:

1. Removal of a Commissioner may be initiated by

providing the Secretary of the Tribal Council with a written

request specifying the cause for removal, signed by not less than

one-half (1/2) of the members of the Tribal Council.

2. The cause for removal shall be limited to:

(a) conviction in any court of a felony or crime involving moral

turpitude; (b) failure to meet or maintain the qualifications for

Commissioners set forth in subsection E of this Section; (c) gross

neglect of duty; or (d) malfeasance in office, or conduct which

amounts to gross and intentional disregard of the laws and

procedures applicable to the affairs of the Commission.

3. Not less than twenty (20) nor more than thirty (30)

days following receipt of the written request for removal, the

Tribal Council shall convene a special meeting for the sole purpose

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of voting on the removal of the Commissioner. Before any vote is

taken, the Commissioner shall be given a full opportunity to answer

or otherwise respond to any and all charges against him or her.

4. To remove a Commissioner from office, the affirmative vote

of no less than two-thirds (2/3) of the members of the Tribal

Council is required.

G. Resignations and Vacancies. Any Commissioner may resign

at any time by giving written notice of such to the Secretary of

the Commission and to the Secretary of the Tribal Council. The

resignation shall become effective at the time specified in such

notice, and the acceptance of such resignation shall not be

necessary to make it. effective. Any vacancy on the Commission,

howsoever caused, shall be filled for the unexpired portion of the

vacated Commissioners term by a qualified person appointed by the

Governor and WarChief with the consent of the Tribal Council. If

the Governor and WarChief cannot agree on a joint appointment, each

of those officials shall submit his choice for the Commission

vacancy to the Tribal Council, which shall decide between the two

nominees.

H. Selection of Chairman. At the first meeting of the

Commission and annually thereafter on the anniversary of the first

meeting, the Commission shall select by majority vote one (1) of

its members to serve as Chairman, one (1) of its members to serve

as Vice Chairman, one (1) of its members to serve as Secretary.

Officers may serve more than one one-year term in an office. The

Vice Chairman shall serve as Chairman during meetings of the

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Commission at which the Chairman is absent.

I. Motions and Resolutions; Meetings; Quoru.m. The powers of

the Commission are vested in the Commissioners. All official

actions of the Commission shall be taken by motion or resolution

approved by the affirmative vote of a majority of the Commission.

The Commission shall meet at the call of the Chairman or of a

majority of its members but shall meet at least once every month.

Two (2) members of the Commission shall comprise a quorum.

J. Notice.

1. Notice of meetings stating the time and date shall be

given in writing by letter properly addressed to each Commissioner

no fewer than five. (5) days before the meeting, excluding the day

of the meeting.

2. Notice may be waived in writing signed by all

Commissioners entitled to such notices, whether before or after the

meeting begins, and such waiver shall be deemed equivalent to the

giving of such notice. Attendance of any Commissioner at a

Commission meeting shall constitute his or her waiver of notice,

except where a Commissioner attends the meeting for the express

purpose of objecting to the transaction of any business on the

ground that the meeting is not lawfully called or convened.

K. Cooperation with Law Enforcement Agencies. The Commission

may cooperate with law enforcement officials of the State of New

Mexico, the Bureau of Indian Affairs, the Federal Bureau of

Investigation, and other law enforcement agencies, when such

cooperation is in the best interests of the Pueblo and will help to

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insure that fair, honest, and efficient games of chance are

operated and conducted within the Reservation.

L. Compensation for Service; Reimbursement of Expenses.

Commissioners shall be compensated for serving on the Commission in

accordance with rates established in the budget of the Commission

as approved by the Tribal Council. In accordance with the

Commissions budget approved by the Tribal Council, Commissioners

shall be reimbursed for reasonable expenses incurred in connection

with the performance of their Commission duties.

Section 7. Gaming Commissions Relationship to Tribal

Government.

A. Agency of Tribal Government. The Gaming Commission shall

be an agency of the Tribal Government and as such shall adopt

personnel and administrative policies.

B. Independent Decision-Making Authority. Notwithstanding

the fact that the Gaming Commission is an agency of Tribal

Government, the decisions of the Commission regarding licensing,

suitability, compliance with applicable law and other regulatory

matters shall be within the exclusive province of the Commission

provided that any person or entity adversely affected by a ruling

of the Commission may petition the Tribal Court for review of such

decision, in accordance with Section 12(H) below.

Section 8. Licenses for Operating and

Conducting Games of Chance

A. Licenses Required.

1. Gaming Enterprise Each Gaming Enterprise shall be

licensed by the Commission.

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2. Gaming Facility Each Gaming Facility shall be

licensed by the Commission.

3. Gaming Employees All Gaming Employees shall be

licensed by the Commission and subject to background

investigations.

4. Management Contractors All Management Contractors,

including their principals, or shareholders having in excess of

five percent (5%) ownership, officers, directors and employees,

shall be licensed by the Commission and subject to background

investigations.

5. Sales of Gaming Devices, equipment or services Any

person proposing to sell or lease any Gaming Device, Gaming

Equipment, or provide Gaming Services to a Gaming Enterprise shall

be licensed by the Commission and subject to a background

investigation before being permitted to sell or lease any Gaming

Device or Gaming Equipment or provide any Gaming Services to any

Gaming Enterprise, Gaming Facility, or Management Contractor.

B. License Application. Each applicant for a license shall

file with the Commission a written application in the form

prescribed by the Commission, duly executed and verified, along

with any fees required by the Commission. At a minimum, the

application form shall contain all of the following information and

requests for information:

1. The following notice (Privacy Act Notice) shall be

placed on the application form before that form is filled out by an

applicant:

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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 members and

staff of the Taos Gaming Commission and of the National

Indian Gaming Commission (NIGC) who have need for the

information in 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 Pueblo or

the NIGC, the information is relevant to 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 the Pueblos being

unable to hire you in a primary management

official or key employee position.

The disclosure of your Social Security Number (SSN) is

voluntary. However, failure to supply a SSN may result

in errors in processing your application.

2. Any existing persons or entities required to be licensed

by subsection 8(A) above shall be notified in writing that they

shall either:

a. Complete a new application 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 (False Statement Notice) shall be

placed on the application form 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.

See 18 U.S. Code, Section 1001.

19
4. The Commission shall notify in writing any persons or

entities required to be licensed that they shall either:

a. Complete a new application form that contains a

False Statement Notice; or

b. Sign a statement that contains the Notice.

5. The Commission shall request from each person or entity

required by subsection 8(A) above to be licensed 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 10 years: business

and employment positions held, ownership interests

in those businesses, business and residence

addresses, and drivers license numbers; provided,

that any applicant who is a principal, primary

management official, key employee, Management

Contractor, manufacturer or supplier of gaming

devices, and/or a person providing gaming services,

must provide such information currently, and from

the age of eighteen (18) ;

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 B (5) (b) of this section;

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, and a

description of any potential or actual conflict of

interests between such businesses and Indian

tribes;

f. A description of any existing and previous business

relationships with the gaming industry, including,

but not limited to, ownership interests in those

businesses;

g. The name and address of any licensing or regulatory

20
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;

h. For each felony for which there is an ongoing

prosecution or a conviction, the charge, the name

and address of the court involved, and the date and

disposition, if any;

1. For each misdemeanor for which there is an ongoing

prosecution or conviction (excluding minor traffic

violations) , the charge, the date of the charge,

the name and address of the court involved, and the

disposition, if any;

j. For each criminal charge (excluding minor traffic

charges), whether or not there is a conviction, if

such criminal charge is not otherwise listed

pursuant to paragraph B (5) (h) or B (5) (i) of this

section, the criminal charge, the date of the

charge, the name and address of the court involved,

and the disposition, if any;

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,

as an applicant, principal, primary management

official or key employee, and whether or not such

license or permit was granted;

1. A current photograph;

m. Fingerprints which shall be taken by officers of

the tribal police department. Pursuant to a

Memorandum of Understanding between the Pueblo and

the NIGC, Pueblo police officers shall forward the

fingerprint cards directly to the NIGC.

n. The fee required by the Commission; and

o. Any other information which the Commission deems

relevant.

C. Background Investigations.

1. Upon receipt of a completed application and required fee

for licensing, the Commission shall conduct or cause to

be conducted a background investigation to ensure that

21
the applicant is qualified for licensing.

2. Background checks of applicants will be performed

pursuant to the following procedures:

(a) The Commission will provide applications to

potential applicants upon request, and shall

collect and maintain the applications;

(b) Pursuant to a Memorandum of Understanding between

the Pueblo and the NIGC, Pueblo Police Officers

will collect fingerprints from all applicants and

forward the fingerprint cards directly to the NIGC.

The ~IGC will obtain a criminal history record from

the Federal Bureau of Investigation on each

applicant and forward such information to the

Commission.

(c) The Commission shall investigate the information

provided in the applications. This investigation

will include:

(1) contacting persons or entities identified in

the application, and verifying by written or

oral communication that the information

contained in the application is accurate;

(2) interviewing a sufficient number of

knowledgeable people, such as former

employers, partners, business associates, and

others referred to in the application, to

provide a basis for the Commission to make a

determination concerning whether the applicant

meets applicable eligibility requirements;

(3) reviewing relevant financial records of the

applicant for the three (3) years preceding

the application; and

(4) contacting any state, federal, or other

government agency that is referred to in the

application.

(d) The Commission shall document any information it

obtains that calls into question whether the

applicant would meet the eligibility requirements

under this Ordinance. The Commission shall then

document in detail the disposition of these problem

areas, indicating the follow-up investigations

performed on the problem areas and the result of

such investigations.

22
(e) The Commission will review the results of the

investigation. This review will include a

determination as to the scope of the investigation

and whether sufficient information was obtained and

verified. If such information is found not

sufficient, the Commission will perform additional

investigations.

(f) Once the investigation is complete, the Commission

will decide whether the applicant meets the

eligibility criteria under this Ordinance.

3. In conducting a background investigation, the Commission

and its agents shall keep confidential the identity of each person

interviewed in the course of the investigation.

4. The Commission shall retain the right to conduct

additional background investigations of any person required to be

licensed at any time while the license is valid.

5. With respect to principals, key employees and primary

management officials, the Commission shall retain applications for

employment and reports (if any) of background investigations for no

less than three (3) years from the date of termination of

employment.

D. Procedures for Forwarding Applications and Reports.

1. When a key employee or primary management official begins

work at a gaming enterprise authorized by the Tribal-State Compact,

the Commission shall forward to the NIGC and to the State Gaming

Representative a completed application for employment.

2. The Commission shall forward the report referred to in

Paragraph D(4) to the NIGC and the State Gaming Representative

within sixty (60) days after an employee begins work, or within

sixty (60) days of the approval of the Tribal-State Compact by the

23
Secretary of the Interior.

3. A key employee or primary management official who does

not have a license shall not be employed after ninety (90) days.

4. The Commission shall prepare ~nd forward to the NIGC and

the State Gaming Representative a report on each background

investigation (Investigative Report) .

An Investigative Report

shall include all of the following:

(a) steps taken in conducting the background

investigation;

(b) results obtained;

(c) conclusions reached; and

(d) the basis for those conclusions.

5. The Commission shall submit with the report a copy of the

eligibility determination made under Paragraph C(5) of this

Section.

6. If a license is not issued to an applicant, the

Commission shall notify the NIGC and the State Gaming

Representative.

E. Granting a Gaming License; Standards.

1. Within twenty (20) days of the receipt of a completed

application for licensing, and upon request of an applicant, the

Commission may issue a Temporary License to the applicant, unless

the background investigation undertaken discloses that the

applicant has a criminal history, or unless other grounds

sufficient to disqualify the applicant are apparent on the face of

the application.

2. If within thirty (30) days after it receives an

24
Investigative Report, neither the ~~IIGC nor the State Gaming

Representative has notified the Commission that it has an objection

to the issuance of a license pursuant to a license application

filed by a principal, key employee or a primary management

official, the Commission may issue a License to such applicant.

3. The Commission shall review a persons prior activities,

criminal record, if any, and reputation, habits, and associations

to make a finding concerning the eligibility or suitability of an

applicant, or a principal, key employee or primary management

official of an applicant, for employment or involvement in a gaming

enterprise. After such consultation, the Commission shall either

issue a license or deny the application. If the Commission

determines that employment or involvement of the applicant 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, methods, or activities in the conduct of gaming,

the Commission shall deny the application.

The Commission may issue a license to any person or entity

who:

(a) Has provided a complete and accurate application and

complied fully with any and all requests by the Commission for

information concerning the background and activities of the

applicant;

(b) If a natural person, has attained the age of

eighteen (18) years;

(c) Has not been convicted of any felony or gaming

25
offense;

(d) Is not a person whose prior activities, criminal

record, if any, habits, or associations pose a threat to the public

interest or to the effective regulation and control of gaming, or

create or enhance the dangers of unsuitable, unfair, or illegal

practices, methods, and activities in the conduct of gaming or the

carrying on of the business and financial arrangements incidental

thereto; and

(e) Has not attempted to interfere or to influence, and

has not interfered or influenced, unduly for its gain or advantage,

any decision or process relating to gaming or the government of the

Pueblo.

4. The Commission shall respond to any request for

additional information from the NIGC or the State Gaming

Representative concerning a principal, key employee or primary

management official who is the subject of an Investigative Report.

Such a request shall suspend the thirty (30) day period under

Paragraph E(l) of this Section until the NIGC or the State Gaming

Representative receives the additional information.

5. If, within the thirty (30) day period described above,

the NIGC or the State Gaming Representative provides the Commission

with a statement itemizing objections to the issuance of a license

to a principal, key employee or primary management official for

whom the Commission has provided an application and Investigative

Report, the Commission shall reconsider the application, taking

into account the objections itemized by the NIGC and/or the State

26
Gaming Representative, and make a final decision whether to issue

a license to such applicant.

F. Fees for Licensing. The fees for gaming licenses and

background investigations shall be set by the Commission from time

to time and made available at any time upon request. If the actual

costs incurred by the Commission for a background investigation

exceed the amount deposited by the applicant, those costs may be

assessed to the applicant in the discretion of the Commission. In

such cases, the Commission shall submit a detailed billing of the

costs and an explanation as to why the excess costs were incurred.

Payment in full of any required fee is required before a license is

issued.

G. Duration and Renewal of Licenses. All licenses issued by

the Commission shall be valid for one year from the date of

issuance. Any person or entity applying for renewal of a license

that has submitted the required application and any other

information required by the Commission at least 60 days before the

expiration of the license may continue to be employed under the

expired license until the Commission or NIGC if required by the

IGRA, takes final action on the renewal application. Any person

renewing a gaming license shall provide updated material and

information as requested on the renewal application form, but shall

not be required to resubmit historical data already provided to the

Commission.

Section 9. Management Contract

A. License Required. If TPE chooses to enter into any

27
Management Contract(s), all Management Contractors, including t~ieir

principals, or shareholders having more than 10 percent ownership,

their officers, directors and employees shall be licensed.

B. Contract Requirements. TPE may enter into a Management

Contract only if the Management Contract:

(1) Provides that all gaming covered by the contract will be

conducted in accordance with the IGRA, governing tribal

ordinance(s), and the Tribal-State compact.

(2) Enumerates the responsibilities of each of the parties

for each identifiable function, including:

(a) Maintaining and improving the Gaming

Facility;

(b) Providing operating capital;

(c) Establishing operating days and hours;

(d) Hiring, firing, training and promoting

employees;

(e) Maintaining the gaming enterprises books

and records;

(f) Preparing the gaming enterprises

financial statements and reports;

(g) Paying for the services of the

independent auditor engaged pursuant to

25 C.F.R. Sec. 571.12;

(h) Hiring and supervising security

personnel;

(i) Providing fire protection services;

Ci) Setting advertising budget and placing

advertising;

(k) Paying bills and expenses;

(1) Establishing and administering employment

practices;

28
(m) Obtaining and maintaining insurance

coverage, including coverage of public

liability and property loss or damage;

(n) Complying with all applicable provisions

of the Internal Revenue Code;

(o) Paying the cost of public safety

services; and

(p) If applicable, supplying the NIGC with

all information necessary for the NIGC to

comply with the National Environmental

Policy Act.

(3) Provides for the establishment and maintenance of

satisfactory accounting systems and procedures that shall, at a

minimum:

(a) Include an adequate system of internal controls;

(b) Permit the preparation of financial statements in

accordance with generally accepted accounting

principles;

(c) Be susceptible to audit;

(d) Permit the calculation and payment of the

Management Contractors fee; and

(e) Provide for the allocation of operating expenses or

overhead expenses among TPE, the Management

Contractor, and any other user of shared gaming

facilities and services.

(4) Requires the Management Contractor to provide TPE, not

less frequently than monthly, verifiable financial reports or all

information necessary to prepare such reports.

(5) Requires the Management Contractor to provide immediate

access to the Gaming Facility, including its books and records, by

appropriate Pueblo officials, who shall have:

(a) The right to verify the daily gross revenues and

income from the gaming enterprise; and

29
(b) Access to any other gaming-related information the

Pueblo deems appropriate.

(6) Provides for a minimum guaranteed monthly payment to the

Pueblo in a sum certain that has preference over the retirement of

development and construction costs.

(7) Provides an agreed upon maximum dollar amount for the

recoupment of development and construction costs.

(8) Provides for a term not to exceed the period allowed by

IGRA.

(9) Details the method of compensating and reimbursing the

Management Contractor. If a Management Contract provides for a

percentage fee, such fee shall be either:

(a) Not more than thirty percent (30~) of the net

revenues of the Gaming Operation if the Chairman of

the NIGC determines that such percentage is

reasonable considering the circumstances; or

(b) Not more than forty percent (40k) of the net

revenues if the Chairman of the NIGC is satisfied

that the capital investment required and income

projections for the gaming enterprise require the

additional fee.

(10) Provides the grounds and mechanisms for modifying or

terminating the Management Contract.

(11) Contains a mechanism to resolve disputes between:

(a) The Management Contractor and customers, consistent

with the procedures in this Ordinance;

(b) The Management Contractor and TPE; and

(c) The Management Contractor and the gaming enterprise

employees.

(12) Indicates whether and to what extent contract assignments

and subcontracting are permissible.

30
(13) Indicates whether and to what extent changes in the

ownership interest in the Management Contract require advance

approval by TPE.

(14) Includes no transfer or any type of conveyance of any

interest in land or other real property, unless such transfer or

conveyance is clearly specified in writing in the Management

Contract.

(15) States that the Management Contract shall not be

effective unless and until it is approved by the Commission and the

Chairman of the ~IGC, date of signature of the parties

notwithstanding.

C. Standards for Disapproval. The Commission shall not

approve any Management Contract if the Commission determines that:

1. The Manager or any of its individuals required to be

licensed by Section 9A above is not licensed or is ineligible to be

licensed; or

2. A trustee, exercising the skill and diligence that a

trustee is commonly held to, would not approve the Management

Contract.

D. Action by Commission. The Commission shall approve or

disapprove a Management Contract within thirty (30) days after it

is submitted to the Commission for approval. The Commission may

extend the thirty (30) day period by not more than thirty (30) days

if it notifies the Tribal Council and TPE, in writing, of the

reason for the extension.

E. Modification and Revocation of Management Contract. The

31
Commission, after notice and hearing, shall have the authority to

require appropriate contract modifications and may void any

Management Contract if it determines that IGRA, this Gaming

Ordinance or the Management Contract has been violated.

SECTION 10. Providers of Class III Gaming Equipment

or Supplies.

A. ~1ithin thirty (30) days after the effective date of the

Tribal-State Compact, the Commission will adopt standards for any

and all Class III gaming equipment, devices or supplies to be

purchased, leased or otherwise acquired by the TPE or the Manager

after the effective date of the Compact for use in any Class III

gaming, which standards shall be at least as strict as the ;)

comparable standards applicable to Class III gaming equipment,

devices or supplies within the State~ of ~~

and all Class III gaming equipment, devices or supplies acquired by

TPE or the Manager after the effective date of the Compact shall

meet or exceed the standards thereby adopted, and any and all Class

III gaming equipment, devices, or supplies utilized by TPE or the

Manager in its gaming activities as of the effective date of the

Compact shall be upgraded or replaced, if necessary, so as to

comply with such standards, by no later than one (1) year after the

effective date of the Compact.

B. Prior to entering into any future lease or purchase

agreement for Class III gaming equipment, TPE or the Manager shall

obtain sufficient information and identification from the proposed

seller or lessor and all persons holding any direct or indirect

financial interest in the lessor or the lease/purchase agreement to

32
permit the Commission to license those persons in accordance with

Section 8 above.

C. The seller, lessor, manufacturer, or distributor shall

provide, assemble and install all Class III gaming equipment,

devices and supplies in a manner approved and licensed by the

Commission.

Section 11. Financial Practices and Reporting

A. Monthly Reports. On or before the 10th day of each month,

TPE and the Manager shall file with the Commission, the Governor,

the WarChief and the Tribal Council a certified financial report

for the preceding calendar month showing the amount of gross

receipts derived from games of chance, the operating expenses

incurred or paid, the specific classifications of such expenses,

the names and addresses of each person to whom have been paid Six

Hundred Dollars ($600.00) or more in the aggregate and the purpose

of such payments, and the net revenues derived from games of

chance. It is the duty of TPE and the Manager to maintain and keep

such books and records as may be necessary to substantiate the

particulars of each report. If TPE or the Manager fails to file a

report within the time allowed, or if a report is not properly

certified or not fully, accurately, and truthfully completed, the

license of TPE or the Manager may be suspended by the Commission

until such time as the deficiency has been corrected.

B. Maintenance of Books and Records; Commission Access. Full

and accurate books of account shall be kept at the places of

business of TPE or the Manager, showing the condition of the

33
business and all transactions relating to games of chance on the

Reservation. Persons authorized by written resolution of the

Tribal Council and Commissioners or their authorized

representatives shall have access to such books of account and

shall be entitled t~ examine them without notice at any time during

ordinary business hours or during games of chance either in person

or by an agent.

All books and records shall be maintained for at least six (6)

years, including:

1. Revenues, expenses, assets, liabilities and equity for

each Gaming Facility;

2. Daily cash transactions for each Class III Gaming at each

Gaming Facility, including but not limited to

transactions relating to each gaming table bank, game

drop box, and gaming room bank;

3. All markers, IOUs, returned checks, hold check or other

similar credit instruments;

4. Individual and statistical game records (except card

games) to reflect statistical drop and statistical win;

for electronic, computer, or other technologically

assisted games, analytic reports which show the total

amount of cash wagered and the total amount of prizes

Won;

5. Contracts, correspondence, and other transaction

documents relating to all vendors and contractors;

6. Records of all tribal gaming enforcement activities;

34
7. Audits prepared by or on behalf of the Tribe; and

8. Personnel information on all Class III Gaming employees

or agents, including rotation sheets, hours worked,

employee profiles, and background checks.

C. Allowable Operating Expenses. No item of expense shall be

incurred or paid in connection with operating or conducting any

game of chance except a bona fide expense in a reasonable amount.

Expenses may be incurred only for the following purposes:

1. If there is a Management Contract, for Management fees of

the Management Contractor, and any expenses permitted to be

reimbursed by the Management Contract;

2. If there is no Management Contract:

a. For the purchase of goods, wares, and merchandise

furnished;

b. For services rendered by the Manager (including

repaytr~rit of development fees and construction

costs, ~f any) ~or maintenance or repairs of gaming

and related equipment, and for operating or

conducting a game of chance (including salaries,

wages, fringe benefits, training, compensation and

reimbursement of expenses to Directors of any

Entity and its administrative staff, and such

Directors and ~-iployees gaming-related travel)

c. For rent, lease payments, janitorial, and security

services;

d. For legal and accounting fees;

e. For taxes and license fees;

f. For utilities;

g. For trade association dues;

h. For insurance;

i. For advertising and promotion;

j. For prizes for winners of games of chance; and

k. For revenue sharing under the Revenue Sharing

Agreement with the State of New Mexico.

D. Deposit of Gross Receipts; Payment of Operating Expenses.

All gross receipts shall be deposited in a special account of TPE,

which account shall contain only gross receipts. All withdrawals

from such account shall be made by consecutively numbered checks

35
duly signed by the Manager or his designated representative, and by

the Treasurer of TPE or other representatives duly authorized by

TPEs Board of Directors, payable to a specific person or

organization. No check shall be drawn to cash or a fictitious

payee.

E. Annual Audit. TPE and the Manager shall cause to be

produced an annual outside independent certified audit of all

gaming activities and shall deliver the same to the Tribal Council,

the Commission, and the National Indian Gaming Commission in

accordance with all applicable regulations.

F. Audit of Contracts. Any contract for supplies, services,

or merchandise in an amount greater than $25,000.00 annually,

except contracts for professional legal or accounting services,

which contract relates to gaming activities, shall be subject to

annual outside independent certified audits on the order of the

Tribal Council or the Commission.

G. Disposition of Net Revenues. The net revenues derived

from games of chance (less any management fees required by a

Management Contract), after allocation by TPEs Board of Directors

between surplus reserve of that entity and dividends to the Pueblo,

shall be deposited accordingly at least quarterly into TPEs

surplus reserve accounts and into the general fund of the Pueblo.

Net revenues deposited into the general fund of the Pueblo shall

not be used for purposes other than:

1. To fund Pueblo governmental operations and programs;

2. To provide for the general welfare of the Pueblo and its

members;

3. To promote tribal economic development, including land

36
acquisition; and

4. To protect and preserve the traditions and culture of the

Pueblo.

H. Compliance with Bank Secrecy Act and Internal Revenue

Code. The Manager shall take all steps necessary to comply with

the applicable provisions of the Bank Secrecy Act, P.L. 91-508, Act

of October 26, 1970, 31 U.S.C. §~ 5311-314 and all record-keeping

and reporting requirements of the Internal Revenue Code.

Section 12. Protection of Patrons

A. Liability to Patrons. The Pueblo or TPE shall at all

times maintain in effect a policy of public liability insurance,

insuring the Pueblo, TPE, its agents and employees against any

claims, demands or liability that may arise as a result of personal

injury to any person (other than an employee of the gaming

establishment) occurring anywhere on the premises of any gaming

establishment operated on the Reservation, or as a result of any

act or omission of any agent or employee of such gaming

establishment while in the course of his or her employment, which

policy shall provide personal injury coverage of no less than One

Million Dollars ($1,000,000) per injured person.

In the event of any claim made against the Pueblo or TPE or

its gaming enterprise, or any agent or employee thereof, arising

out of any personal injury as described above, neither the Pueblo

nor its insurer will assert any defense of immunity from suit as to

such claim for compensatory damages up to the amount of One Million

Dollars ($1,000,000) per injured person, in any action filed in a

court of competent jurisdiction to be tried to the court; provided,

however, that this agreement not to assert such defense shall be

37
strictly limited as provided herein, and shall not apply to any

claim for punitive damages, or to any claim for which a jury trial

is demanded, or to any claim for any loss or damages other than

that arising from actual bodily injury or death, or to any claim

for damages in excess of the amount set forth herein. ~Iothing

herein shall be construed as stating or implying that the Pueblo or

TPE has waived or agreed not to assert its immunity from suit for

any other purpose or in any other circumstance other than the

limited purposes and circumstances expressly set forth herein, nor

shall anything herein be construed as an admission of liability as

to any claim for damages or as an agreement or indication of

willingness to pay any amount as damages absent a judicial

determination of fault, and the Pueblo or TPE or its insurer, or

all three, shall in every instance have the right to defend any

such claim fully on the merits.

The Pueblo or TPE shall provide to the State Gaming

Representative annually a certificate of insurance showing that its

gaming enterprise and its agents and employees engaged therein, are

insured to the extent and in the circumstances required by this

Section, or that it is self-insured to such extent and in such

circumstances. If the State Gaming Representative so requests in

writing, the certificate of insurance may be furnished directly to

the State Gaming Representative from the insurance carrier or the

insuring agency for the insured Pueblo.

B. Public Health and Safety. The Commission shall establish

for its Gaming Facilities health, safety, and construction

standards that are at least as stringent as the current editions of

the national Electrical Code, the Uniform Building Code, the

38
Uniform Mechanical code, the Uniform Fire Code, and the Uniform

Plumbing Code, and any and all gaming facilities or additions

thereto constructed by TPE or the Management Contractor hereafter

shall be constructed and all facilities shall be maintained so as

to comply with such standards. Inspections will be conducted by

the Commission with respect to these standards at least annually.

If the State Gaming Representative requests sufficiently in advance

of an annual inspection, the representative may be present during

such inspection. TPE or the Management Contractor shall correct

any deficiencies noted in such inspections within a reasonable

period of time. The Commission shall provide copies of such

inspection reports to the State Gaming Representative, if requested

to do so in writing.

Section 13. Class II and Class III Games

A. Class II Games. TPE shall have authority to establish,

equip, operate and maintain bingo and Class II card games on

premises located at such places on the Reservation as the Tribal

Council has designated or may designate.

B. Class III Games; Tribal - State Compact Required. Once a

Compact is in effect or the Secretary of the Interior has

established procedures for Class III gaming on the Reservation in

place of a compact, TPE shall have authority to establish, equip,

operate, and maintain a Class III gaming operation on premises

located at such places on the Reservation as the Tribal Council has

designated or may designate.

C. Designation of Officer in Charge. The Manager shall

designate a person to be the officer in charge for each occasion.

The officer in charge shall be primarily responsible for the

39
operation and conduct of Class II gaming or Class iir gaming on

that occasion. The officer in charge must have obtained a license

from the Commission at leasc five (5) days prior to the occasion.

The officer in charge shall supervise all activities on the

occasion and shall be present on the premises continuously during

the playing of bingo games, Class II card games or Class III gaming

and for a period of at. least one (1) hour after the last bingo game

of the occasion has been completed.

D. Premises Open to Con~mission. Premises where any Class II

or Class III gaming is being operated or conducted, or where it is

intended that a Class II or Class III gaming will be operated or

conducted, shall at all times be open to inspection by the

Commission and its agents and employees.

E. Merchandise Prizes. When any merchandise is awarded as a

prize in a Class II or Class III gaming, the value of such

merchandise shall be its current retail price. Merchandise awarded

as a prize shall not be redeemable or convertible into cash,

directly or indirectly.

F. Usual Prices. Equipment, prizes, and supplies for games

of chance shall not be purchased or sold at prices in excess of the

usual price thereof.

G. Limits on Prizes. The size of the prizes offered or given

in any Class II or Class III gaming or on any occasion shall be

subject to such limits as may be established by regulations duly

promulgated by the Commission.

H. Rules of Play for Bingo Games.

1. Operations The equipment used in playing bingo games and

the method of play shall be such that each card shall have an equal

40
opportunity to win. The objects or balls to be drawn shall be

essentially the same as to size, shape, weight, balance, and all

other characteristics that may influence their selection. All

objects or balls shall be present in the receptacle before each

game is begun. All numbers or designations drawn shall be

announced plainly and clearly, and shall be audible or visible to

all the players present, including where more than one room is used

for any bingo game, all players present in each room. The

receptacle, the caller, and the person removing the objects or

balls from the receptacle must be visible to all the players at all

times, except that where more than one room is used for any bingo

game, the receptacle and the caller must be present in the room

where the greatest number of players are present. The cards or

sheets of the players shall be part of a deck, group, or series of

cards, no two of which shall be alike, and which deck, group, or

series shall not be so prepared or arranged as to prefer any card.

The particular arrangement of numbers or designations required to

be covered in order to win the game and the amount of the prize

shall be plainly and clearly described, and audibly or visibly

announced to the players immediately before each game is begun.

2. Players Entitled to Verification Any player shall be

entitled to call for a verification of all numbers or designations

drawn at the time a winner is determined, and for a verification of

the objects or balls remaining in the receptacle and not yet drawn.

The verification shall be made in the immediate presence of the

officer in charge on the occasion.

3. Players Required to Be Present Only persons physically

present on the premises where a bingo game is actually operated and

41
conducted may participate as players in the game.

I. Employees; Prohibition Against Employees Playing. All

persons who operate or conduct, or assist in operating or

conducting, Class II or Class III gaming shall be employed by the

TPE or the Manager and shall wear legible tags evidencing their

names and the legend of the enterprise. No employee of TPE or the

Manager may play any Class II or Class III gaming or win any gaming

prize or thing of value on the Reservation during his or her

employment and for ninety (90) days after termination of such

employment.

J. Qualification For Employment; Testing. Employees of TPE

and the Manager shall be of good moral character, shall not have

been convicted of any felony or gaming offense, and, as a condition

of their contract of employment, shall agree to any lawful means of

testing for truthfulness, including but not limited to, polygraph

testing, at any time without prior notice, concerning the handling,

collection and/or disbursement of gross receipts. No person shall

be employed by TPE or the Manager, whose prior activities, criminal

record if any, reputation, habits, or associations pose a threat to

the public interest or to the effective regulation and control of

gaming, or create or enhance the dangers of unsuitable, unfair, or

illegal practices, methods, and activities in the operation or

conduct of gaming or the carrying on of the business and financial

arrangements incidental thereto.

K. Preference in Employment. Members of the Pueblo and their

spouses and children shall receive preference in employment and

advancement if they meet the qualifications for employment with the

Entity and the Manager.

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L. Personnel Policies. TPE and the Manager shall adopt

written personnel policies that shall be provided to each employee;

and shall provide a formal grievance procedure and shall provide

for an employees right to receive a written statement of reasons

for dismissal in the event such employee is dismissed.

M. }~iring and Training of Employees. TPE and the Manager

shall provide sufficient training to all employees and shall

provide for employees, who are members of the Pueblo, training

programs with specific timelines which will enable members of the

Pueblo to acquire the experience and skills necessary to become

managers and supervisors in Class II and Class III gaming on the

Reservation.

N. Expenses of Training Employees. The expense of providing

training to members of the Pueblo and to their spouses and children

shall be an operating expense of the Taos Pueblo gaming -~nterprise.

Section 14. Suspension or Revocation of Licenses

A. Grounds.

1. NIGC

a.

Information

If, after the issuance of a gaming license, the

Commission receives from the NIGC reliable

information indicating that a key employee or a

primary management office is not eligible for

employment under subsection 8(E) (3) above, the

Commission shall suspend such license under the

provisions of subsection 14(B) below and follow the

procedures in subsections 14(C) through (H) as

applicable.

b. After a revocation hearing, the Commission shall

decide to revoke or to reinstate a gaming license,

and the Commission shall notify the NIGC of its

decision.

2. Other grounds

If a licensee makes a false statement in any application

43
for a license, in any statement annexed thereto, or in any response

to a request by the Commission for information; fails to keep

sufficient books and records to substantiate the reports required

by this Gaming Ordinance; falsifies any books or records relating

to any transaction connected with the operation or conduct of any

game of chance; is convicted of any felony or gaming offense;

interferes with or unduly influences or attempts to interfere or

unduly to influence any decision or process of the government of

the Pueblo relating to gaming; or deliberately or substantially

fails to provide information to or answer relevant questions of the

Commission or otherwise fails to comply with this Gaming Ordinance

or the terms of any license granted pursuant hereto; his or her

license may be suspended and, after notice and a hearing before the

Commission pursuant to this Section, such license may be revoked.

This sanction is in addition to any other sanction which may be

imposed under this Gaming Ordinance.

B. Notice; Immediate Suspension. Proceedings to suspend or

revoke a license shall be initiated by the Commission by serving a

complaint upon the licensee. If, in the Commissions judgment, the

public interest; the effective regulation and control of gaming; or

the safe, fair and honest operation and conduct of games of chance

so require, the Commission may suspend a license immediately

pending the holding of a hearing. Such an immediate suspension

shall take effect upon service of the complaint upon the licensee.

C. Contents of Complaint; Service. The complaint shall set

forth the violations of this Gaming Ordinance which the Commission

44
has reasonable cause to believe the licensee has committed. The

Commission shall cause the complaint and notice of hearing to be

served personally upon the licensee or any agent of the licensee,

or to be sent by certified mail or overnight delivery to the

licensee at the address shown upon the license. The complaint

shall notify the licensee of the place and date of a hearing, such

date to be not less than twenty (20) days after the licensee

receives a copy of the complaint.

D. Answer; Subpoenas. Upon receipt of a complaint and notice

of hearing, the licensee shall answer the complaint and shall

inform the Commission whether the licensee desires to present

evidence. At the request of the licensee for good cause shown, or

on its own motion, the Commission shall issue subpoenas for the

attendance of witnesses and for the production of papers, books,

records and documents.

E. Hearing; Written Decision. The hearing shall be held and

concluded without unreasonable delay. The Commission shall hear

the matter and make a decision in writing, including findings of

fact in support of its decision. The Commission shall issue its

decision within thirty (30) days of the hearing. The licensee

shall be informed immediately of the decision and, in the event of

a suspension or revocation of his or her license, of the effective

date of the suspension or revocation.

F. Surrender of License. When the Commission suspends or

revokes a license, the licensee shall surrender the license to the

Commission on or before the effective date of the suspension or

45
revocation. No license shall be valid as of the effective date of

the suspension or revocation, whether surrendered or not.

G. Additional Sanctions. Upon its determination to suspend

or revoke a license, the Commission, in addition to any other

penalties that may be imposed, may declare the licensee ineligible

to operate or conduct games of chance, to participate, directly or

indirectly, in the operation or conduct of games of chance, or to

apply for a license for a period not exceeding twelve (12) months.

Such declaration of ineligibility may be extended to include any

primary management officials, key employees, owners, officers, or

directors of the licensee, and any of its subsidiary organizations,

parent organizations, or affiliates.

I-I. Appeal to Tribal Court. Any licensee aggrieved by a

decision of the Commission, may appeal the order to the Tribal

Court, and the Tribal Court shall have jurisdiction to consider and

resolve such appeal. The Tribal Court shall affirm the order of

the Commission unless such order was entered in violation of due

process, was arbitrary or capricious, or was otherwise in

contravention of applicable law. The Tribal Court may reverse,

vacate, or modify the order of the Commission if the Tribal Court

determines that the order was unlawful. In reaching its decision,

the Tribal Court shall consider only such evidence relating to the

order from which appeal is taken as appears in the records of the

Commission and was available to the Commission at the time of its

decision.

Section 15. Prohibited Acts

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In addition to the acts prohibited above, it shall be a

violation of this Ordinance for any person to:

(a) Conduct or participate in any gambling on the Reservation

other than at an authorized and licensed Gaming Facility.

(b) Receive, distribute, apply or divert any property, funds,

proceeds, or other assets of the Gaming Enterprise to the benefit

of any person except as authorized by this Ordinance, a Compact, or

IGRA.

Cc) Tamper with any Gaming Device or Gaming Equipment used in

the conduct of any gaming activity with the intent to cause any

person to win or lose any wager other than in accordance with the

publicly-announced rules of the Gaming Enterprise.

(d) Do any other act in connection with the conduct of any

Gaming Enterprise with the intent to affect the outcome of any

wager other than in accordance with the publicly-announced rules of

such Gaming Enterprise.

(e) To alter or misrepresent the outcome of any other event

on which wagers have been made after the outcome is made sure but

before it is revealed to the players.

(f) To place, increase or decrease a bet or to determine the

course of play after acquiring knowledge, not available to all

players, of the outcome of the game or any event that affects the

outcome of the game or which is the subject of the bet or to aid

anyone in acquiring such knowledge for the purpose of placing,

increasing or decreasing a bet or determining the course of play

contingent upon that event or outcome.

47
(g) To claim, collect or take, or attempt to claim, collect

or take, money or anything of value in or from a Gaming Device or

Gaming Equipment, with intent to defraud, without having made ~

wager thereon, or to claim, collect or take an amount greater than

the amount won.

(h) To place or increase a wager or bet after acquiring

knowledge of the outcome of the game or other event which is the

subject of the bet, including past-posting and pressing bets.

(1) To reduce the amount wagered or cancel the bet after

acquiring knowledge of the outcome of the game or other event which

is the subject of the bet, including pinching bets.

(j) to manipulate, with the intent to cheat, any component of

an electronic Game of Chance or Gaming Device in a manner contrary

to the designed and normal operational purpose for the component,

including, but not limited to manipulating a Gaming Device, with

knowledge that the manipulation affects the outcome of the game or

with knowledge of any event that affects the outcome of the game.

(k) Knowingly to use other than coins or tokens approved by

the Commission or other lawful coin or legal tender of the United

States of America, or to use a coin not of the same denomination as

the coin intended to be used in the Gaming Device.

(1) To possess, with the intent to use, any device to assist

in projecting the outcome of the game, in keeping track of the

cards played, in analyzing the probability of the occurrence of an

event relating to the game, or in analyzing the strategy for

playing or betting to be used in the game.

48
(m) To use any device or means to cheat, or to possess any

such device while at the Gaming Facility.

(n) Knowingly to entice or induce another to go to any place

where gaming is being conducted or operated in violation of the

provisions of this Ordinance, IGRA, the Compact, or other

applicable law and regulation with the intent that the other person

play or participate in that gaming.

Section 16. Penalties Any person who violates any provision

of this Ordinance shall be subject to civil penalties, termination

of employment by TPE, denial or revocation of a gaming license,

exclusion from attendance at any Gaming Facility, or exclusion from

the Reservation if a non-member of the Pueblo. The Commission may

impose a fine of not more than $500.00 for each violation. The

Commission shall have the jurisdiction to impose any penalties on

any person within the jurisdiction of the Pueblo.

Section 17. Enforcement; Jurisdiction; Subpoenas

A. Civil Remedies in Court. The Commission may bring a

civil action in the Tribal Court against any person who violates

this Gaming Ordinance or engages in an activity or activities

prohibited herein and recover monetary damages, attorney fees,

injunctive relief, and/or any other relief that is just and

equitable under the circumstances. The Tribal Court may order a

person who commits an intentional or willful violation to pay

punitive damages, which shall be assessed in an amount not to

exceed three (3) times the actual damages or one thousand dollars

($1,000.00), whichever is greater. The Tribal Court may order a

49
civil penalty not to exceed five thousand dollars ($5,000.00) for

each day that. a violation occurs and for each separate violation.

For good and sufficient cause found, the Tribal Court may exclude

from the Reservation any person who engages in an activity or

activities in violation of this Gaming Ordinance to the extent such

exclusion is not inconsis:ent with the other laws of the Pueblo.

Any person who violates tnis Gaming Ordinance, or whose employees

or agents in the course of their employment or agency violate this

Gaming Ordinance, may have the right to engage in business on the

Reservation suspended or terminated. Nothing in this Gaming

Ordinance shall be construed to authorize or require the exercise

of criminal jurisdiction over non-Indians except to the extent

allowed by any applicable present or future Act of Congress or any

applicable federal court decision.

B. Tribal Court Juri8diction. Except as otherwise provided

in this Gaming Ordinance, the Tribal Court shall have exclusive

jurisdiction over all matters concerning the administration and

enforcement of this Gaming Ordinance; provided however, that

nothing in this Gaming Ordinance is intended nor shall it be

interpreted to preclude prosecution in federal court pursuant to

the IGRA, as it may be amended from time to time, or any

regulations promulgated thereunder, or any other applicable federal

or tribal law.

C. Enforcement of Commission Su.bpoerias. If a person

subpoenaed to attend or to produce books, accounts, records, or

other documents in any investigation or hearing conducted by the

Commission fails to obey the command of the subpoena without

reasonable cause, or if a person in attendance at any hearing or

50
investigation refuses, without lawful cause, to be examined, to

answer a legal and pertinent question, or to exhibit any book,

account, record, or other document when ordered to do so by the

representative of the Commission conducting such investigation or

hearing, the Commission may apply to the Tribal Court for an order

returnable in not less than five (5) nor more than ten (10) days

directing the person to show cause why he should not comply with

such subpoena. For purposes of this Gaming Ordinance, no person

shall be excused from testifying or producing any books, accounts,

records, or other documents in any investigation or hearing on the

ground that such testimony or documentary evidence may tend to

incriminate him or her, if the Commission or the Tribal Court

agrees in writing that such person shall not be prosecuted,

punished, or subjected to any penalty or forfeiture resulting from

such testimony or production, provided that no person shall be

exempt from prosection or punishment for any act of perjury

committed by him under a grant of immunity under this subsection.

Section 18. Severability In the event any section or

provision of this Ordinance or its application to any particular

activity is held to be invalid, the remaining sections and

provisions of this ordinance and the remaining applications of such

section or provision shall continue in full force and effect.

Section 19. Sovereiqn Immunity The Pueblo does not in any

way waive its sovereign immunity from suit in any court to contest

the validity of this ordinance.

Section 20. Amendments This Ordinance may be amended by

majority vote of the Council.

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4.

Section 21. Effective Date

This Gaming Ordinance shall be effective as of the _______

day of __________

Council.

,1995, the date of its adoption by the~Tribal

0

CERTIFICATION

The foregoing Taos Pueblo Amended Gaming Ordinance was adopted at

a duly called meeting of the Taos Pueblo Tribal Council held on the

~ day ~ , 1995 at which time a quorum was present

by a vote of ~ in favor and ~ opposed.

Cacique 1

(. -K

~~-~CUc~-

~

-LJ~~,uit

Jr~ ~2~âg~S

QZ~-7~

Tribal Councii Member

ecretary

Z~c1,A. s:7-.

Tribal Councii ~mber

Governor Mike Concha c4arChief John A. Mirabal

Paul J. Bernal, Tribal ~Council Senior Colman

Secretary

S~r)~ior Councilman

ATTEST:

Govern~,r s Secretary

7

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