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

6.12.12.1.7 Name and address of any licensing or regulatory agency with
which the person has ever filed an application for a license or permit related to
gaming, whether or not such license or permit was granted;

6.12.12.1.8 For each felony for which there is an on-going prosecution or
a conviction: the charge, the name and address of the court involved, and the date
and disposition, if any, of the case;

6.12.12.1.9 For each misdemeanor conviction or on-going misdemeanor
prosecution (excluding minor traffic violations) within ten (10) years of the date
of the application: the name and address of the court involved, and the date and
disposition, if any, of the case;

6.12.12.1.10 For each criminal charge (excluding minor traffic charges),
whether or not there is or was a conviction, if such criminal charge is within ten
(10) years of the date of the application and is not otherwise listed above pursuant
to subsections 6.12.12.1.8 or 6.12.12.1.9 above: the criminal charge, the name and
address of the court involved and the date and disposition, if any, of the case;

6.12.12.1.11 Name and address of any licensing or regulatory agency
(federal, tribal, state, local or foreign) with which the person has filed an
application for an occupational license or permit, whether or not such license or
permit was granted;

6.12.12.1.12 Current photograph;

6.12.12.1.13 Any other information the Tribe or Gaming Commission
deems relevant; and

6.12.12.1.14 Fingerprints consistent with procedures adopted by the
Gaming Commission according to 25 C.F.R. § 522.2(h) and, as applicable,
fingerprints to be processed through a state agency.

investigation sufficient to make a determination of eligibility as required under this Act and other
applicable law.~This shall include verification of information submitted by the applicant. The

~> Gaming Commission shall document all potential problem areas noted and any disqualifying
information. In conducting the background investigation, the Gaming Commission and its
agents shall promise to keep confidential the identity of each person interviewed in the course of
the investigation.

[ 6.12.13 The Gaming Commission shall conduct or cause to be conducted, an
i

> 6.12.14 The Gaming Commission shall cause fingerprints to be taken of all applicants.
Fingerprints will be forwarded to the NIGC and to the state agency, if applicable, consistent with
all applicable laws and the Gaming Compact. Fingerprints shall be processed through the FBI

‘San Manuel Gaming Act
04/17/2004 18


6.9.1 To fund tribal government operations or programs;

6.9.2 To provide for the general welfare of the Tribe and its members;
6.9.3 To promote economic development for the Tribe;

6.9.4 To donate to charitable purposes; or

6.9.5 To help fund operations of local governmental agencies.

6.9.6 Except for rights to per capita payments, if any, or as set forth below, no Tribal
member shall have any interest or expectation in any funds generated by any gaming activity.
All such funds are deemed Tribal funds only and are and shall remain the property of the Tribe
until disbursed, if at all, from the general treasury. The General Council shall retain the sole
discretion as to how such funds are utilized, and once becoming part of the treasury such funds
shall lose any identity as gaming revenues except to the extent necessary to identify them as such
for accounting purposes or to comply with applicable law. Notwithstanding anything herein to
the contrary, if the Tribe elects at any time to make per capita payments to the 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). Payments out of general treasury funds to tribal members under
other tribal programs, including those relating to health, welfare, education, elderly care, and
housing, shall not be deemed to be “per capita” payments when such funds are paid from the
Tribe’s general treasury.

SMTC 6.10 Operation of Gaming Establishments.

6.10.1 Gaming Facility License. Except to the extent authorized by an agreement
pursuant to the provisions of IGRA or as otherwise permitted by law, Gaming Activities shall
only be conducted in tribally owned, operated and licensed facilities pursuant to the provisions of
this Act, and the Tribe’s Compact. Such activities shall be conducted in accordance with thé
terfiis and conditions of the license issued to the Gaming facility by the Tribal Gaming Agency
prior to the conduct of any Gaming Activities therein,

The Gaming facility license shall identify: the name and address of the facility; type of
gaming allowed; effective date of the license; name and telephone number of the Gaming
Commission; and such other matters as the Gaming Commission may deem necessary to the

conduct of Gaming Activities therein, or as may be required under a Compact or other applicable

law.

6.10.2 Protection of Environment and Public. The construction and maintenance of any
Gaming facility, and the operation of gaming therein, shall be conducted in a manner which
adequately protects the environment and the public health and safety, in compliance with any

standar ired under tribal federal law, and the Tribe’s Compact.

6.10.3 Dispute Resolution. Patrons who have complaints against the gaming operation
shall have the right to remedies provided in the Tribe’s Tort Liability Ordinance. The maximum
recovery for such patron dispute claims shall be $10,000 per occurrence with a cumulative limit

San Manuel Gaming Act
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6.13.1.2.2 Complete a new application form that contains the Privacy Act
Notice and the Notice Regarding False Statements; or

6.13.1.2.3 Sign a statement that contains the Privacy Act Notice and
consent to the routine uses described in that Notice, and sign a statement that
contains the Notice Regarding False Statements.

SMTC 6.14 Class III Gaming; Compact.

In addition to the provisions set forth above, Class III gaming shall be engaged in on the
reservation pursuant to a Tribal-State Compact or by an alternative as provided by IGRA. All
negotiations for such compacts and amendments thereto shall be conducted through the Tribal
Chairman, with the advice and suggestion of the Gaming Commission, and shall be finalized
only upon majority vote of the General Council after consideration of the terms. In the event the
provisions of a Compact, as approved under IGRA, may be inconsistent with provisions herein,
the approved Compact provisions shall govern, but only to the extent inconsistent with this Act.

SMTC 6.15 Interest in Management Contracts by Tribal Officials.

No elected official of the Tribe, including the Gaming Commission, or any other
committee or agency of the Tribe, shall have a financial interest in or management responsibility
for any management agreement entered into pursuant to IGRA, nor shall such elected official
serve on the board of directors or hold (directly or indirectly) ten percent (10%) or more of the
issued and outstanding stock of any corporation, or 10% or more of the beneficial interest in any
partnership, trust, or other entity, in any such corporation, partnership, trust or other entity
having a financial interest in, or management responsibility for, such contract.

SMTC 6.16 Gaming by Tribal Members; Interest in Management Contracts by Tribal
Officials.

No Tribal member shall engage in or be permitted to engage in either directly or
indirectly through another person, any Class II or Class II Gaming Activities authorized
hereunder. No elected official of the General Council, Gaming Commission, or any other
committee or agency of the Tribe shall have a financial interest in or management responsibility
for, any management agreement entered into pursuant to IGRA, nor shall such elected official
serve on the board of directors or hold (directly or indirectly) ten percent (10%) or more of the
issued and outstanding stock of any corporation having a financial interest in, or management
responsibility for, such contract.

SMTC 6.17 Service of Process.

The Tribe designates the Chairperson of the Tribe as its agent for the service of official
determinations, orders, or notices of violation from any federal or state agency. The Chairperson
of the Gaming Commission shall also receive any notice related to gaming from any state, local
or federal agency, including the NIGC and the State Gaming Agency.

San Manuel Gaming Act 22
0411712004


including persons who conduct, operate, account for, or supervise any such gaming activity; (b)

is in a category under federal law, the Compact, or tribal gaming law requiring licensing; (c) is J
an employee of the Gaming Commission or of the gaming operation with access to confidential

or personal information; or (d) is a person whose employment duties require or authorize access

to areas of or information regarding the gaming facility that are not accessible to the public.

6.3.11 “Gaming Enterprise” or “Gaming Operation” means any gaming business, event,
enterprise or activity conducted by or under the jurisdiction of the Tribe.

6.3.12 “Gaming facility” or “Facility” means any building in which Class III gaming
activities or gaming operations occur, or in which the business records, receipts, or other funds of
the Class III gaming operation are maintained (but excluding offsite facilities primarily dedicated J
to storage of those records, and financial institutions), and all rooms, buildings, and areas,
including parking lots and walkways, a principal purpose of which is to serve the activities of the
Tribe’s gaming operation. Nothing in this Gaming Act prevents the conduct of Class II gaming
(as defined under IGRA) in the Gaming Facility.

6.3.13 “Gaming Resources” means any goods or services provided to or used in
connection with gaming activities, whether exclusively or otherwise, including, but not limited
to, equipment, furniture, gambling devices and ancillary equipment, implements of gaming J
activities such as playing cards and dice, furniture designed primarily for gaming activities,
maintenance or security equipment and services, gaming consulting services, and the like. The
term shall not include professional accounting or legal services.

6.3.14 “Gaming Resource Supplier” or “Gaming Contractor” means any person or entity
who, directly or indirectly, manufactures, distributes, supplies, vends, leases, or otherwise
purveys resources to the Tribe’s gaming operation, gaming enterprise, or gaming facility. The
Gaming Commission may exclude a purveyor of equipment or furniture that is not specifically /
designed for, and is distributed generally for use other than in connection with gaming activities,
if the purveyor is not otherwise a gaming resource supplier under the Tribe’s gaming compact,
and the compensation received by the purveyor is not grossly disproportionate to the value of the
goods or services provided, and the purveyor is not otherwise a person who exercises a
significant influence over the gaming operation.

6.3.15 General Council” means the governing body of the Tribe.

6.3.16 “Key Employee” means a person who performs one or more of the following
functions: bingo caller; counting room supervisor; chief of security; custodian of gaming
supplies or cash; floor manager; pit boss; dealer; croupier; approver of credit; or custodian of
gaming devices, including those persons with access to cash and accounting records within such
devices. If not otherwise included, any other person whose total cash compensation is in excess
of $50,000 per year, and the four most highly compensated persons in the gaming enterprise, are
included in the definition of key employee. Key employee shall also include any employee
considered a key employee under criteria established by the State and the Tribe under the
Compact. At the discretion of the Gaming Commission, other positions or persons may be
included under the definition of Key Employee and are subject to the requirements thereof.

San Manuel Gaming Act 3
04/17/2004


and/or other available state sources as applicable to determine the applicant’s criminal history, if
any.

6.12.15 Eligibility Determination. The Gaming Commission shall review a person’s
prior activities, criminal record, if any, and reputation, habits and associations to make a finding
concerning the eligibility of a Key Employee or Primary Management Official for employment
in the Gaming Enterprise. If the Gaming Commission determines that employment of the person
poses a threat to the public interest or to the effective regulation of gaming, or creates or
enhances dangers of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of gaming, the Gaming Operation shall not employ that person in a key employee or
primary management official position or in any other position for which a Class A license is
required.

6.12.16 Forwarding Licensing Applications and Reports to NIGC.

6.12.16.1 Unless otherwise provided by the NIGC, on or before the date any Key
Employee or Primary Management Official is employed by a Gaming Operation
authorized under this, the Gaming Commission shall forward to the NIGC the person’s
completed application for employment containing the information required under Section
6.12.12 of this Gaming Act.

6.12.16.2 Prior to issuing a license to a Primary Management Official or Key
Employee, the Gaming Commission shall forward to the NIGC, together with a copy of
the eligibility determination made under Section 6.12.15 above, an investigative report on
each background investigation. The investigative report on each background
investigation shall be forwarded to the NIGC within sixty (60) days after the employee
begins work, or within sixty (60) days of the approval of this by the NIGC. The Gaming
Operation shall not employ or continue to employ any person as a Key Employee or
Primary Management Official who does not have a license within ninety (90) days of
beginning work.

The investigative report shall include the following information:
6.12.16.2.1 Steps taken in conducting a background investigation;
6.12.16.2.2 Results obtained;
6.12.16.2.3 Conclusions reached; and

6.12.16.2.4 The bases for those conclusions.

6.12.16.3 The Gaming Commission shall provide to the NIGC or other applicable
agency, any other reports and information required by IGRA and regulations promulgated
thereunder. Further, with respect to Key Employees and Primary Management Officials,
the Gaming Commission shall retain applications for employment and reports (if any) of
background investigations for inspection by the NIGC for no less than three (3) years
from the date of termination of employment.

San Manuel Gaming Act
04/17/2004 19


certify that the gaming facility and any new gaming facility construction meets the Tribe’s
building and safety codes, and any applicable federal or Compact requirements, and issue a
certificate of occupancy to the facility as required under the Compact.

6.12.20 Effect of Compact. Notwithstanding anything in this Section 6.12 or any other
part of this Act to the contrary, any licensing procedures required under the Compact shall be
implemented as provided therein, and the Gaming Commission may adopt regulations
integrating such procedures with the foregoing.

SMTC 6.13 Application Forms.

6.13.1 Each application form for a Key Employee or a Primary Management Official, as
well as for all other Class A license applicants, unless otherwise specifically exempted by the
Gaming Commission consistent with applicable law, shall contain the notices set forth in
subsections 6.13.1.1 and 6.13.1.2 below:

6.13.1.1 Privacy Act Notice.

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 seg. The purpose of the requested information is to determine the eligibility of
individuals to be employed in a gaming operation. The information will be used by the
San Manuel Band of Mission Indians and the National Indian Gaming Commission
members and staff who have need for the information in the performance of their official
duties. The information may be disclosed to appropriate federal, tribal, state, local, or
foreign law enforcement and regulatory agencies when relevant to civil, criminal or
regulatory investigations or prosecutions or when 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 Tribe's being unable to hire you ina
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.

6.13.1.2 Notice Regarding False Statements.

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, § 1001)

6.13.1.2.1 Any existing Key Employee or Primary Management Official,
or other Class A licensee, unless otherwise specifically exempted by the Gaming
Commission, shall be notified that they shall either:

San Manuel Gaming Act
04/17/2004 21


6.12.6.4 Union License. Any labor union, including its management and
representatives, shall be required to apply for and be deemed suitable to obtain a license
in order to represent gaming operation employees.

6.12.6.5 Vendor License. Vendors who are deemed not to be Gaming Resource
Suppliers or who provide only non-gaming related goods or services to the Tribal
Gaming Operation shall, at minimum, complete a short form application and qualify for a
vendor license issued by the Gaming Commission. Such license must be renewed at least
every two (2) years and the Gaming Commission may require additional information or
licensing at any time.

6.12.6.6 Temporary or Provisional Licenses. Pending completion of an
investigation for a license, the Gaming Commission may issue a temporary or provisional
license of no more than ninety (90) days duration if, in its sole discretion, it deems such
issuance appropriate, and may grant an extension of such a license if necessary to
complete the investigation or to obtain the results from fingerprint cards. Such licenses
shall permit the licensee to engage in such activities pursuant to such terms and
conditions as the Gaming Commission may specify. Temporary or provisional licenses
shall expire ninety (90) days from date of issuance, upon issuance of a regular license, or
until a specified expiration date, whichever occurs first.

6.12.7 License Renewal. All licenses shall be subject to renewal at least every two (2)
years, and more frequently if so required by the Gaming Commission or other applicable law.
Such licenses may be revoked or suspended upon the occurrence of any act which, if known
during the application process, would have tended to disqualify such person or entity for such a
license.

6.12.8 License Investigations. The Gaming Commission may employ all reasonable
means, including engaging outside services and investigators and holding hearings, to acquire the
information necessary to determine whether or not a license should be issued. Applicants shall
agree to release all information necessary in order for the Gaming Commission to achieve its
goals under this section and to furnish such information to the NIGC, a state gaming regulatory
agency, or other agencies as may be required by tribal, federal, or state law or the Compact.

6.12.9 License Fees. Unless specifically waived by the Gaming Commission, all persons
applying for a license shall be required to pay all applicable license fees and costs when due,
including a reasonable deposit for costs that may be incurred in connection with the license
application. Estimates of licensing costs will be provided to applicants upon reasonable request.
All fees and costs must be received by the Gaming Commission prior to issuance of the license,
unless the Tribe or the Gaming Operation has agreed to reimburse the Gaming Commission
directly for all or part of such fees and costs.

6.12.10 Standards. All persons engaged by or associated with any Gaming Activity on
Tribal Lands shall conduct themselves with honesty, integrity, and with such decorum and
manners as necessary to reflect positively on the Tribe, its members and the Gaming Activities.
Any failure to abide by such standards, or any violation of a rule, regulation, law, custom or

tradition of the Tribe, the Gaming Commission, or the Gaming Operation, or with the terms or

‘San Manuel Gaming Act
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6.6.1 Cond site gami jon and control, and inspect, examine, and monitor
the Gaming Activities; prepare reports and monitor compliance, including the authority to
demand access to and inspect, examine, photocopy and audit all papers, books and records
respecting such Gaming Activities;

6.6.2 Investigate any suspicion of wrongdoing in connection with the Gaming facility
or related to any Gaming Activity, includi tential licensing or Compac ations and
require correction of violations as the Gaming Commission deems necessary, including

establishing a1 and imposing fines or other sa sanctions against licensees or other persons who

interfere with or violate the Tribe’s gaming regulatory requirements under applicable federal or
tribal law or the Compact, and by notification to applicable regulatory authorities a as deemed

necessary-for violations not corrected in a timely manner.

6.6.3 Conduct, or cause to be conducted, such investigations as may be necessary to
determine compliance with applicable laws including this Act, or any contracts, agreements,
goods, services, events, incidents, or other matters related to Gaming Activities;

6.6.4 Conduct, or cause to be conducted, background investigations regarding any
person or entity in any way connected with any Gaming Activity and issue licenses and
identification badges to, at minimum, all Key Employees, Primary Management Officials, and
Gaming Resource Suppliers according to requirements at least as stringent as those established in
25 CER. Parts 556 and 558; provided no Commissioner shall provide any personal
endorsement, recommendation or other support for an applicant this Act and the Compact;

6.6.5 Administer oaths or affirmations to witnesses appearing before the Gaming
Commission; hold hearings, sit and act at such times and places, summon persons on Tribal
Lands to attend and testify at such hearings, take testimony, and receive such evidence as the
Gaming Commission deems relevant to fulfill its duties;

6.6.6 ‘Execute agreements necessary to receive comprehensive criminal history and .
other ba from other jurisdictions and sources;

6.6.7 Implement and administer a system for investigating, licensing (including license *
issuance, renewal, denial, and revocation), and monitoring for the Gaming facility, employees,
Gaming Contractors, vendors, suppliers, investors, and others connected with Gaming Activities,

as described below, including the licensing of Gaming Facilities, individuals and entities as
required under this Act, IGRA, or any applicable Gaming Compact;

6.6.8 Assure, monitor, and direct i ms of Gaming Facilities by qualified building
and safety experts in-erder-te-comply with the Tribe’s building and safety codes; provide reports

as requested to the State if applicable under the Compact; review reports; and issue a certificate
of occupancy to the Gaming facility;

6.6.9 Provide a copy of each facility license and renewals thereof to the NIGC,
including, at minimum: the Tribe’s name; name and address of the Gaming facility; type of
gaming allowed; effective date of license; the signature of the tribal official responsible for J

San Manuel Gaming Act 8
04/17/2004


be elected and removed by the General Council, using the same process applicable to the election

or removal of Tribal officers. All Commissioner positions shall be considered to be full-time
positiondAr om sioners shall serve for three (3) year terms, which shall be determined from
the date of election, and may serve for more than one term if re-elected, and shall serve past the
expiration of any term until replaced or remove aming Commissioners may only be removed
by the Tribe for neglect of duty, malfeasance, or other good cause shown. Removal for cause

shall only be under procedures applicable to removal an elected Tribal official.

A Commissioner may not be an elected official of the Tribe, or employed in any Gaming
Enterprise, or by the Tribe in any other capacity while serving as a Gaming Commissioner.
Gaming Commissioners and Commission staff shall be precluded from consulting or
employment in any position with the Tribe’s gaming activities, including bingo or casino
gaming, for a period of no less than two (2) years from their date of termination at the
Commission.

6.5.2 Background investigations of Gaming Commissioners shall be conducted by an
independent investigator under the direction of the Tribe’s attomey. The attorney shall keep the
details of the investigation confidential, but the attorney may confer with the investigator or any
other person experienced in conducting or evaluating background investigations provided such
other person agrees to maintain the confidentiality of the information obtained about the
applicant. Gaming Commissioners must meet the qualifications established under this Gaming
Act and the Compact. Gaming Commissioners must meet or exceed the standards of suitability
as established for Gaming Commission employees, including a review of financial, criminal, and
employment history, contact with references, and all other suitability requirements for
certification or licensing by the State or the Tribal Gaming Commission. The attorney shall
make a determination as to whether this Ordinance’s requirements for suitability have been met,
and if so shall certify that finding in writing to the Business Committee. In the event the attorney
determines there is any reason to believe the applicant may not meet the suitability standards
under this Gaming Act, the attorney shall so inform the applicant of that determination on a
confidential basis. The applicant shall have three (3) business days in which to respond, by
providing additional information or other reasons why the applicant should be deemed suitable.
If the attorney still believes the applicant is unsuitable, the attorney shall so notify the applicant
in writing, who shall have three (3) business days in which to either withdraw from the Gaming
Commission (in which case the file shall be sealed) or request that the application be reviewed
by the Business Committee of the Tribe. In the event of such review, only those items which the
attorney believed rendered the applicant unsuitable shall be revealed to the Business Committee
by the attorney. The applicant can request any additional information obtained by the attorney to
be submitted to the Business Committee, and may provide such further information as the
Business Committee shall permit. Within ten (10) days after closing its own review and
investigation of such applicant, the Business Committee shall render a final decision as to the
applicant’s suitability. In the event of issuance of a finding of suitability, the Gaming
Commission shall issue a Class A license to the applicant. Appeals from the Business
Committee decision shall follow the same procedures as appeals from other license denials.

6.5.3 Commissioners may only be removed from office before the expiration of their
term by the General Council, for neglect of duty, malfeasance or other good cause shown. Good

San Manuel Gaming Act 5
04/17/2004


6.3.17 “National Indian Gaming Commission” (“NIGC”) means the federal gaming
commission established under IGRA.

6.3.18 “Ordinance” or “Act” shall mean the San Manuel Gaming Act of 1989, as
amended.
eo

6.3.19 “Person” means any natural person or entity, including but not limited to
corporations. partnerships and trusts.

6.3.20 “Primary Management Official” means the person who has management
responsibility for a management contract; any person who has authority to hire and fire
employees or to set up working policy for the gaming enterprise; or the chief financial officer or
other person who has financial management responsibility. At the discretion of the Gaming
Commission, other positions or persons may be included under and be subject tothe wld fey ¥
requirements for primary management officials. § —— Pot omeicy

6.3.21 “Related to” means persons who are related as a father, mother, son, daughter,

sister, brother, or spouse. WA
6.3.22 “Reservation” or “Tribal Lands” means all lands under the jurisdiction and
control of the Tribe. J

6.3.23 “State” means the State of California.

6.3.24 “State Gaming Agency” means the entity authorized to investigate, approve, and
regulate Class III gaming licenses pursuant to the Gambling Control Act (Chapter 5,
commencing with section 19800, of Division 8 of the Business and Professions Code). If the
State fails, under a Gaming Compact provision, to designate an agency authorized to investigate, J
approve, and regulate gaming licenses, any function otherwise assigned to the State Gaming
Agency shall be assumed by the Tribe’s Gaming Commission until such time as the State
establishes and designates such an agency.

6.3.25 “Tribal Court” means any court established by the Tribe to hear disputes, or if
there is none, the General Council.

SMTC 6.4 Ownership of Gaming.

The Tribe has the sole proprietary interest in and responsibility for the conduct of any /
gaming operation authorized by this Gaming Act.

SMTC 6.5 Gaming Commission.

651 The Tribe hereby establishes the San Manuel Gaming Commission to be
composed of no more than three (3) commissioners. One Commissioner shall be a member of
the San Manuel General Council and two Commissioners shall be non-Tribal members. One
Commissioner or, in the alternative, a member of the San Manuel Gaming Commission staff,
shall be designated as Secretary/Treasurer to the Commission. All Tribal Commissioners shall

San Manuel Gaming Act 4
0417/2004


conditions of the license, may be grounds for immediate suspension or revocation of any license
issued hereunder.

6.12.11 Appeals. Within fifteen (15) days of receipt of written notice of, or thirty (30)
days following issuance of a decision or order of the Gaming Commission, whichever first
occurs, any party who is the subject of such decision or order may file a petition for
reconsideration with the Gaming Commission. Upon receipt of a timely filed petition for
reconsideration, the Gaming Commission shall within thirty (30) days thereafter either set the
matter for hearing or issue an order thereon. No Commissioner shall provide any personal
endorsement, recommendation or other support for an applicant in connection with such
reconsideration or appeal. Any member of the Tribe whose application for a new or renewed
license is denied by the Gaming Commission, or whose license is suspended or revoked by the
Gaming Commission, may within thirty (30) days of receiving written notice of such action, or
within ten (10) days of receiving written notice of the result of any reconsideration sought by
such member, appeal to the General Council, which shall have the power to order that such
license be issued or reinstated, provided that no such license shall be issued or reinstated for
more than a one (1) year period. No license shall be issued unless consistent with NIGC, state
and tribal suitability requirements.

6.12.12 Background Investigations.

6.12.12.1 The Gaming Commission shall request from each Primary
Management Official, Key Employee, and any other applicant for a Class A license,
unless provided otherwise by the Gaming Commission consistent with applicable law, all
of the information specified in subsections 6.12.12.1.1 through 6.12.12.1.14 below, as
well as any other information required on the gaming license application. The Gaming
Commission reserves the right, at any time, to request additional information during or
subsequent to any background investigation.

6.12.12.1.1 Full name, other names used (oral or written), social security
number(s), date of birth, place of birth, citizenship, gender, all languages (spoken
or written);

6.12.12.1.2 Currently and for at least the previous ten (10) years:
business and employment positions held, ownership interests in those businesses,
business and residence addresses and drivers license number(s);

6.12.12.1.3 Names and current addresses of at least three (3) personal
references (who are not related to or living in the same household with applicant),
including one personal reference who was acquainted with the applicant during
each period of residence as listed under subsection 6.12.12.1.2 above;

6.12.12.1.4 Current business and residence telephone numbers;

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

San Manuel Gaming Act
04/17/2004 17


each Gaming Commissioner, served by first class mail or personal delivery at least five (S)
business days prior to such meeting. Meetings may be called at any time, by any means, with
unanimous consent of the Gaming Commissioners. All Commission discussions, deliberations,
and votes taken regarding specific license applications and related background investigations, or
any other investigations, and any other matter the Commission deems must be kept confidential
in order to preserve the integrity of the Gaming Enterprise or Tribe or to protect the privacy of
the applicant, shall be held in executive session.

6.5.9 The Commission shall be deemed to be an agency of the Tribal government and
as such shall be subject to the personnel and other governmental administrative policies of the
Tribal government, as the General Council shall determine from time to time. In the absence of
specific personnel policies, those affecting management level employees of the Gaming
Enterprise shall be applied to the operation of the Commission. Any exceptions to such policies
must be approved by the Tribe’s Business Committee. The Commission shall be funded through
an annual appropriation by the General Council and such additional funding actions as the
General Council shall deem necessary. The Commission shall prepare and propose a budget
sixty (60) days before the end of each Tribal fiscal year after meeting and conferring with the
Business Committee regarding such budget, which shall be submitted to the General Council
promptly thereafter for approval or modification. Within five (5) days after approval of the
budget, funds from the Tribe’s treasury shall be appropriated and transferred to the
Commission’s bank account, except that at any time the General Council may prescribe other
schedules for disbursing such funds. The Commission shall maintain its accounts, books and
records, including records of all income and expenditures, in accordance with generally accepted
accounting principles and consistent with Tribal governmental policies regarding management of
funds and records. A financial report shall be rendered by the Commission to the General
Council at Jeast quarterly. All expenditures shal] stay within ten percent (10%) of the approved
budget.

6.5.10 Notwithstanding the fact that the Commission is a Tribal governmental agency
and is accountable to the Business Committee, on behalf of the General Council, for its
administration, the decisions of the Commission regarding licensing, suitability and compliance
with Applicable Law shall be within the exclusive province of the Commission, except that the
Business Committee may review any allegation that the Commission has exceeded its authority
under this Act and if it deems the allegation to be true, shall refer the allegation to the General
Council for action, which may include removal of a Commissioner for cause.

6.5.11 All Commissioners shall abide by the following standard of professional conduct:
confidentiality, impartiality, fairness, and commitment to upholding the reputation of the Tribe
for gaming of the highest integrity and honesty.

SMTC 6.6 Powers and Duties.

The Gaming Commission shall have the power, duty, and primary responsibility to carry
out the Tribe" s regulatory responsibilities under federal or wribal law-and any applicable Gaming

the reputation of the.

‘San Manuel Gaming Act 7
0411712004

V


SMTC 6.18 Tribal Gaming Corporation.

Nothing in this Act shall prevent the Tribe, through its General Council, from delegating
the authority to conduct gaming to one or more Tribal corporations, so long as the tribal gaming
enterprises to which such authority is delegated agree to meet all criteria and requirements
established under this Gaming Act.

SMTC 6.19 Prior Gaming Ordinances; Effective Date.

To the extent inconsistent with this Ordinance all prior gaming ordinances are hereby
repealed on the effective date of this Ordinance. After adoption by the General Council, this
Ordinance and any subsequent amendments thereto become effective on the date of final
approval by the NIGC, as applicable.

SMTC 6.20 Severability.

If any provision or application of this Gaming Act is determined by review to be invalid,
such determination shall not be held to render such provision inapplicable to other persons or
circumstances, nor shall such determination render invalid any other provision of this Gaming
Act.

SMTC 6.21 Amendments.

All provisions of this Gaming Act are subject to amendment by the General Council.
Regulations promulgated by the Gaming Commission under this Gaming Act are subject to
amendment by the Gaming Commission.

SMTC 6.22 Sovereign Immunity Preserved.

Nothing in this Gaming Acct is intended or shall be construed as a waiver of the sovereign
immunity of the Tribe, and no manager, officer, or employee of the Gaming Commission or the
Tribe or the Gaming facility shall be authorized, nor shall they attempt, to waive the immunity of
the Tribe.

San Manuel Gaming Act
04/17/2004 23


Z S
OCT 20 aut Vc comm

October 25, 2004

Mary L. Prevost, Esq.
Holland & Knight
2600 Pike Tower

520 Pike St.

Seattle WA 98101

Re: — San Manuel Band of Mission Indians, approval of San Manuel Gaming
Act of 1989, as amended.

Dear Ms. Prevost:

This is in response to your August 3, 2004, letter seeking review and approval of the San
Manuel Gaming Act of 1989, as amended in Apmil 2004. The Act is consistent with the
requirements of the Indian Gaming Regulatory Act and this agency’s regulations. It is
therefore approved for gaming on Indian lands, as defined by IGRA, over which the
Tribe has jurisdiction.

I note that the Tribe did not submit some of its prior amendments for review and ap-
proval. Please be aware that IGRA requires NIGC approval of all amendments to tribal
gaming ordinances) even minor ones such as revisions in numbering or grammatical cor-

Philip N. Hogen

Chaiman

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel 202.632.7003 Fax: 202632 7066 Www.NIGC.cov

REGIONAL OFFICES Portland, OR; Sacramento, CA, Phoenix, AZ; St. Paul, MN, Tulsa, OK


h. investigate and assure compliance with any requirements for tribal \y
ownership, management, and control of the Gaming facility and Gaming
Operation, as set forth in applicable law;

i. investigate and assure compliance with age restrictions for patrons
including provisions prohibiting minors in the Gaming facility and age cr
limits on service of alcoholic beverages as provided under applicable law;

j. carry out any requirements under tribal or federal law or applicable

Gaming Compact for the protection of the health and safety of Gaming r
facility patrons, guests, and employees, including requirements that the
Gaming Facilities meet building and safety codes duly adopted by the

Tribe;

k. approval of Gaming facility floor plans, closed-circuit television Ni
system, and cashier’s cage, minimum staffing and supervisory
requirements, and technical standards for gaming device operations;

6.6.16 Assure gaming devices are not transported to or from the Tribal Lands except in
accordance with procedures established by an agreement between the Gaming Commission and

the State Gaming Agency. The agreement shall require at least ten (10) days notice to the county

sheriff, and transportation only to specific destinations for specific purposes as established in the
agreement and the Gaming Compact;

6.6.17 Promulgate rules for each Class I, Class II or Class III game allowed under this

Act to govern the conduct of such games;
———E—e———eoeee

6.6.18 Comply with a tribal conflict of interest policy to assure that Commissioners are
free from corruption, undue influence, compromise, and conflicting interests in the conduct of

their business;

6.6.19 Adopt, approve, and enforce gaming regulatory standards no less stringent than
the Minimum Internal Control Standards promulgated by the National Indian Gaming
Commission or required under the Gaming Compact;

6.6.21 Annual Reports. On or before April 30th of each year, the Gaming Commission .
shall provide to the Business Committee an Annual Report summarizing its activities during the
prior twelve (12) month period ending on December 31, and accounting for all receipts and
disbursements, a copy of which shall be provided by the Business Committee to any Tribal
member upon his or her request.

6.6.22 Carry out such other duties with respect to the regulation of gaming activities on
the Reservation as the General Council shall direct.

San Manuel Gaming Act
04/17/2004

10

J

Vv


issuing the license; and the name and phone number of the tribal governmental agency
responsible for the regulation of the Gaming Operation;

6.6.10 Hear and resolve disputes against the gaming establishment, in accordance with
procedures established in this Act and the Tort Liability Ordinance, consistent with the Tribe’s

_Compact;

6.6.11 Hire staff and support services as deemed necessary, subject to the Gaming
Commission budget approved by the General Council;

6.6.12 To the extent required, comply with any reporting requirements established under

this Act, the Tribe’s Compact, IGRA and regulations promulgated thereunder, and other

applicable law;

6.6.13 Develop necessary documentation and protocols, and establish joint cooperative

working relationships with federal, state, and local jurisdictions as necessary to assist in ensuring

the effective regulation of the Tribe’s gaming;

6.6.14 Implement appropriate rules, regulations, and procedures to ensure the effective
enforcement of the provisions of this Act, including but not limited to:

6.6.15.1 Protect the physical safety of gaming patrons, employees, and
others in the Gaming facility;

6.6.15.2 Ensure the physical safeguarding of assets transported to, within,
and from the Gaming facility;

6.6.15.3 Prevent illegal activity in the Gaming facility or Operation
through:

San Manuel Gaming Act
04/17/2004

a. maintenance of employee procedures and a surveillance system in
accordance with industry standards;

b. maintenance of detailed and permanent records of all occurrences and
incidents in the Gaming facility that deviate from normal operating
policies and procedures;

c. establishment of employee procedures to detect theft, cheating and
fraud;

d. maintenance of a list of persons barred from the facility;
e. conduct of an annual CPA audit;
f. approval of all game rules and regulations;

g. establish and impose license fees, sanctions, fines, and conditions as
appropriate under applicable law;

J

J


cause shall include repeated (at least three or more) failures to attend required Gaming
Commission meetings.

6.5.4 Two (2) members of the Gaming Commission shall constitute a quorum|for the
urpose of conducting Commission business, provided that nothing herein shall preclude the
(Chairman of the Commission from conducting Commission business if notice of the meeting h
een provided in a timely manner reasonably calculated to provide proper notice to all
ommissioners, and no commissioner has objected to the meeting. If any commissioner has a
conflict of interest in investigating, hearing or deciding a matter to come before the Gaming
Commission, such as matters involving a member of the commissioner’s household or
immediate family (parent, sibling, child, or spouse), that commissioner shall recuse himself or
herself for that matter. When only the commissioner with a possible conflict is available to sit o
the matter before the Commission, that commissioner shall recuse himself or herself and request
the Tribe’s Business Committee to serve as the Gaming Commission only for the purposes of
that matter; with the exception of licensing matters, in which case the investigation shall be
conducted under the direction of the Tribe’s attorney through the process established in 6.5.2 of

this Act. All such matters shall be handled fairly and i

6.5.5 The Chairperson shall preside over meetings of the Gaming Commission. The
Secretary/Treasurer shall be responsible for the receipt and disbursement of Gaming
Commission funds in accordance with Tribal governmental agency policies and the Commission
budget. Checks drawn on Gaming Commission accounts shall be signed by the Chairman and
the Secretary/Treasurer. The Secretary/Treasurer shall ensure that minutes of all Gaming
Commission meetings and all official actions taken by the Gaming Commission are taken and
transcribed within five (5) business days after such meeting or action, and that the written
records thereof are maintained for safekeeping.

6.5.6 Voting. All actions of the Gaming Commission shall be taken by majority vote of
Commissioners present. The Commission Chairperson may vote on any issue. ~

6.5.7 Subject to a budget roved on an annual basis by the General Council,

commissioners shall be reimbursed for time and expenses incurred in connection with the
performance of their duties as Commissioners and in accordance with the budget. Any
commissioner employed on a full-time basis shall agree to be employed in accordance and
consistent with policies set for other Tribal government employees, and shall be eligible for the
same fringe benefits as such other full-time Tribal government employees, and to strictly abide
by Commission oaths of confidentiality and professionalism in the discharge of their duties. The
salaries for Commissioners shall be approved as part of the annual Budget to be approved by the
General Council. Policies with respect to reimbursement of expenses shall be the same as those
applicable to other Tribal government employees.

6.5.8 Meetings. Meetings of the Gaming Commission shall be held at least every other
month (“Scheduled Meetings”). Any Tribal member may attend Scheduled Meetings.
Scheduled Meetings may be changed at any time by the Gaming Commission, with notice of
such change posted prominently at least five (5) business days in advance at the Office of the
Gaming Commission. Additional meetings shall be held as called by the Chairman or by at least

two (2) Gaming Commissioners. Notice of such additional meetings shall be given in writing to

San Manuel Gaming Act 6
04/17/2004



6.12.16.4 If a license is not issued to an applicant, or the license is granted and
later revoked, the Gaming Commission shall notify the NIGC and may forward copies of
its eligibility determination and investigative report (if any) to the NIGC for inclusion in
the Indian Gaming Individuals Records System.

6.12.17 Granting a Gaming License.

6.12.17.1 If, within a thirty (30) day period after the NIGC receives a report as
required under subsection 6.12.16 above, the NIGC notifies the Gaming Commission that
it has no objection to the issuance of a license pursuant to the license application filed for
a Key Employee or Primary Management Official for whom the Gaming Commission
has provided an application and investigative report, the Gaming Commission may issue
the license.

6.12.17.2 The Gaming Commission shall provide any additional information
requested by the NIGC concerning a Key Employee or Primary Management Official
who is the subject of a report as required under this subsection. An NIGC request for
additional information shall suspend the thirty (30) day period established under
subsection 9.15.1 above until the NIGC receives the additional information.

6.12.17.3 If, within the thirty (30) day period established under subsection
6.12.17.1 above, the NIGC provides a statement itemizing objections to issuance of a
license to a Key Employee or Primary Management Official, the Gaming Commission
shall reconsider the application, taking into account such objections. The Gaming
Commission retains the right to make the final determination whether to issue the license
to such applicant.

6.12.18 License Suspension.

6.12.18.1 If, after issuing a gaming license, the Gaming Commission receives
reliable information from the NIGC or other reliable source indicating that a Key
Employee or a Primary Management Official is not eligible for employment under the
eligibility criteria established in Section 6.12 above, the Gaming Commission shall
suspend the license and notify the licensee in writing of the license suspension and
proposed revocation.

6.12.18.2 The Gaming Commission shall notify the licensee of a time and place
for a hearing on the proposed revocation of a license.

6.12.18.3 After the revocation hearing, the Gaming Commission shall determine
whether to revoke or to reinstate the gaming license. For actions taken in response to
information provided by the NIGC, the Gaming Commission shall notify the NIGC of its
decision.

6.12.19 Facilities Licenses. Before Gaming Activities can be conducted therein, the
Gaming Commission shall inspect and license each such facility in accordance with this Act, the
Compact, and any requirements of IGRA. The Gaming Commission shall also determine and

Ser Manuel Caan bt
0411712004 * 20


SMTC 6.3 Definitions.

Unless specified otherwise, terms used herein shall have the same meaning as in IGRA,
including but not limited to references to “Class I,” “Class II,” and “Class III” gaming. Terms

shall have the following meanings:

6.3.1 Applicable Law” means the IGRA and regulations promulgated thereunder, the
Compact, this Gaming Act, and all other applicable Jaws and regulations promulgated under
State, Federal, and Tribal law. ——___________.

6.3.2 “Applicant” means an individual or entity that applies for a tribal gaming license.

6.3.3 “Association” means the association of tribal and state gaming regulators as
established under the Compact, the membership of which comprises up to two representatives
from each tribal gaming agency of those tribes with whom the State has a Gaming Compact
under IGRA, and up to two delegates each from the State Division of Gambling Control and the
State Gambling Control Commission.

6.3.4 “Commissioner” means a member of the San Manuel Gaming Commission,

elected consistent with this Gaming Act.

6.3.5 “Gaming” means an activity in which a person stakes or risks something of value
on the outcome of a contest of chance or a future contingent event, not under his or her control or
influence, upon an agreement or understanding that the person, or someone else, will receive
something of value in the event of a certain outcome, but shall not include bona fide business
transactions.

6.3.6 “Gaming Act” or “Gaming Ordinance” means the San Manuel Gaming Act of
1989!, as amended.

6.3.7 “Gaming Activities” means any Class I, Class II, or Class III gaming activity
conducted on Tribal Lands by or under the jurisdiction of the Tribe.

6.3.8 “Gaming Commission” means the gaming commission established by the Tribe to
monitor gaming activities, investigate wrongdoing, conduct background investigations, issue
licenses, and perform other duties as required for the regulation of gaming on the Reservation.
For the purpose of conducting background investigations of and issuing licenses to the
Commissioners and Gaming Commission staff, such persons shall be deemed to be key
employees under this Gaming Act and shall be required to pass a background investigation and
hold a valid gaming license consistent therewith.

6.3.9 “Gaming Compact” or “Compact” means any tribal-state Gaming Compact,
including amendments thereto, entered into by the Tribe pursuant to IGRA to govern the conduct
of certain Class III gaming activities on Tribal Lands.

6.3.10 “Gaming Employee” means any person who: (a) operates, maintains, repairs,
assists in any gaming activity, or is in any way responsible for supervising such gaming activities

San Manuel Gaming Act 2
04/17/2004


of $20,000 per patron in any twelve (12) month period unless otherwise provided in the Tort
Liability Ordinance. Disputes between the gaming operation and any management contractor or
its employees shall be subject to policies and procedures established under contracts and

agreements between the parties.
ee

SMTC 6.11 Audits.

6.11.1 Annual Audit. The Gaming Commission shall ensure the engagement of a / .
recognized independent accounting firm to conduct an annual audit of the Tribe’s Class II and
Class II] Gaming Operations.

6.11.2 Contract Review and Audit. Each gaming related contract for supplies, services,
or concessions that results in purchases of more than $25,000 annually (except contracts for
professional legal or accounting services) relating to Class II or Class III gaming on the Tribal
Lands shall be included in the independent audits. At least three (3) bids shall be required before
any contract for goods or services in connection with any Gaming Activity for an amount in
excess of $5,000 or to be performed over a period of more than twenty (20) days may be
executed. The General Council may waive the requirement of three (3) bids upon good cause
shown. All proposals for bids as well as all bids received shall may be reviewed at the discretion
of the Gaming Commission. The Gaming Commission shall receive a copy of all Gaming-
Related Contracts for an amount in excess of $10,000 for filing and possible review. To the
extent possible, the Tribe will approve the lowest responsive and qualified bid.

6.11.3 Reporting Audit Results. The Tribe shall make available the results of each )
annual audit to the Tribe’s General Council within thirty (30) days of completion of the audit.
The Tribe shall provide audit results to the NIGC to the extent required and as otherwise required
under applicable law.

SMTC 6.12 Licenses.

6.12.1 The Tribe’s Gaming Licensing procedure shall be administered through the
Gaming Commission. The program shall be an investigative licensing process under which all
applicants for Class II and Class III gaming licenses are evaluated against the standards set forth
in, and subject to, the following applicable laws:

6.12.1.1 San Manuel Gaming Act of 1989, as amended, and any gaming
regulations promulgated thereunder,

6.12.1.2 The IGRA and NIGC regulations;
6.12.1.3 Compact requirements, to the extent applicable; and
6.12.1.4 Any other applicable tribal, federal, or state laws.

6.12.2 Licensing Policy and Requirements. It is the policy of the Tribe that all Gaming
Activities be licensed and controlled so as to protect the morals, good order and welfare of tribal
members and other persons on Tribal Lands, and to preserve the honesty, fairness and integrity

San Manuel Gaming Act B
0411712004


with influence over the management or operation of the gaming, or a Gaming Employee,
such person shall obtain a Class A license. The Gaming Commission shall conduct or
cause to be conducted a background investigation to determine if such person has:

6.12.6.1.1 Any criminal record or any reputation, prior activities, habits or
associations which might pose a threat to the public interest or to the effective
regulation of gaming.

6.12.6.1.2 Anything else in his/her background that might create or
enhance the dangers of unsuitable, unfair, or illegal practices, methods and
activities in the conduct of gaming.

Those who at any time do not meet the above qualifications shall be denied a Class A
license, or in the case of existing licenses, the license may be revoked.

6.12.6.2 Class B License. Persons who are not among those identified in
subsection (1) above, but are to be employed at a gaming facility on Tribal Lands in
another capacity, such as in non-gaming related activities, shall be required to obtain no
less than a Class B or Class C license from the Gaming Commission. Such persons must
establish that they have not been convicted of certain crimes or engaged in any activity
which the Gaming Commission in its sole discretion deems to render such person a
danger to the safety or integrity of the Gaming Activities, or to the safety and security of
the Tribe, property of the Tribe, any tribal member, any gaming employee or patron, or
the public.

6.12.6.3 Class C License. Minors employed in non-gaming activities at the
Reservation may be issued a Class C license, provided that such minors are not deemed
by the Gaming Commission to pose any threat to the safety or integrity of Gaming
Activities or the safety or property of the Tribe, any Tribal member, any gaming
employee or patron, or the public. Such license shall be valid for no more than two (2)
years. Minors shall not be employed as dealers or otherwise to operate or supervise the
Gaming Activities, or to serve liquor.

6.12.6.3 Gaming Resource Supplier. Gaming Resource Suppliers must meet all
tribal and state licensing and suitability requirements. Any Gaming Resource Supplier
who, directly or indirectly, provides, has provided, or is deemed likely to provide at least
twenty-five thousand ($25,000) in Gaming Resources in any 12-month period, or who
has received at least twenty-five thousand dollars ($25,000) in any consecutive 12-month
period within the 24-month period immediately preceding application, shall be licensed
by the Gaming Commission prior to the sale, lease, or distribution, or further sale, lease,
or distribution, of any such Gaming Resources to or in connection with the Tribe’s
Gaming Operation or Facility. The Gaming Resource Supplier license must be renewed
at least every two (2) years. The Tribe shall not enter into any contract or agreement that
would require licensing if the Gaming Resource Supplier has been denied a license or is
deemed unsuitable, or the license or suitability determination has expired without
renewal.

San Manuel Gaming Act 15
04/17/2004


CHAPTER 6. THE SAN MANUEL GAMING ACT OF 1989.'

©

SMTC 6.1 Title. é

This Chapter shall be known as the “SAN MANUEL GAMING ACT OF 1989, as
amended.”

SMTC 6.2 Findings and Policy.

This Ordinance is adopted by the General Council of the San Manuel Band of Mission
Indians (“Tribe”), a federally recognized Indian Tribe, pursuant to its authority under the Tribal
Articles of Association; for the purpose of establishing the terms for gaming on Tribal Lands for
Tribal governmental and charitable purposes, and to continue to develop and operate such
gaming consistent with the findings herein and in conformity with the federal Indian Gaming
Regulatory Act (25 U.S.C. § 2701 et seq. (“IGRA”)), and regulations promulgated thereunder,
and the Tribal-State Gaming Compact with the State of California (“Compact”). This Gaming
Act and regulations promulgated hereunder shall constitute gaming regulations for the Tribe.
Based on its experience and observations in connection with such gaming and its studies of
similar experiences by other Indian tribes, the Tribe finds that tribally controlled gaming on its
reservation is a valuable means of promoting Tribal economic development, self-sufficiency,
employment, job training and strong Tribal government. The Tribe further finds that when
regulated by the Tribe, such gaming can remain free from organized crime and other corrupting
influences and can be conducted fairly and honestly by both the operators and the players.

The General Council finds that:

6.2.1 Gaming on its Tribal Lands is a valuable means of generating revenues needed to
promote Tribal self-sufficiency, economic development, employment, job training, and a strong
Tribal government, and to fund and ensure essential social programs and services;

6.2.2 The Tribe desires to conduct certain forms of gaming to provide needed revenues
to the Tribe and to regulate and control such gaming in a manner that will protect the
environment; the Tribal Lands; the health, security and general welfare of the Tribe; the patrons;
and the community; and

6.2.3. The Tribe desires to manage and regulate such gaming as authorized under this
Ordinance in a manner that will adequately address the interests and needs of the Tribe.

Adopted by the Geneyal Council on August 31, 1989 as 89.02. Amended September 19, 1994, May 13,
1997, September 28, 1999 f/November 9, 1999, November 11, 2003 and March 6, 2004.

la


——— San Manuel Band of Mission Indians

CERTIFICATE
OF
RESOLUTION

GENERAL COUNCIL
OF THE .
SAN MANUEL BAND OF MISSION INDIANS

WHEREAS, the General Council is the governing body of San Manuel
Band of Mission Indians, a federally recognized Indian tribe (“Tribe”), by the
authority of Article III of the Articles of Association of the Tribe adopted on
December 1, 1966 and approved by the Secretary of the Interior on December
1, 1966; and

WHEREAS, by Resolution No. 89.02, adopted by the General Council on
August 31, 1989 the General Council enacted the San Manuel Gaming Act;
which was subsequently amended,

WHEREAS, the Gaming Act establishes the standards to govern the
conduct of gaming activities on the Tribe’s lands and establishes the Tribe’s
Gaming Commission to implement those standards, oversee gaming activities
on Tribal lands, and promulgate regulations; and

WHEREAS, the General Council amended the previously adopted
Gaming Act.

NOW, THEREFORE BE IT RESOLVED, that the Tribe hereby seeks the
approval of the amended Gaming Act.

CERTIFICATION

By a vote of the General Council of the San Manuel Band of Mission
Indians on April 17, 2004, following a duly noticed meeting at which a quorum
was present, the amended Gaming Act was passed by the General Council
following a vote of 50 “for”, 8 “against” and O “abstentions.”

DATED: October 27, 2004 Mi gecey

‘Deron Marquez, Tribal Ghairmey

26569 Community Center Dr. © Highland, CA 92346 Office: (909) 864-8933 © FAX (909) 864-3370
P.0. Box 266 © Patton, CA 92369


SMTC 6.7 Enforcement.

In the event it is determined that a licensee or the Gaming Enterprise has violated
Applicable Law, including any internal control procedures or policy of the Gaming Enterprise, a
written report of such incident shall immediately be made to the Commission. The Commission
shall then determine what action should be taken, if any. If action is required, the Commission
shall issue a citation to the Gaming Enterprise, notifying it of the specific violation(s) or issues,
measures which must be taken for correction, and a reasonable time limit in view of all the
circumstances in which such action must be taken. Copies of any such citation shall
simultaneously be served on the Business Committee of the Tribe. The Commission may
enforce such citations by: (a) suspending or revoking the licenses of any persons found to have
violated Applicable Law; or (b) such lesser penalty or other remedy as the Commission shall
determine, including the imposition of fines or sanctions. Nothing herein shall prevent or
prohibit the Gaming Commission from seeking compliance assistance from local, federal, or
state gaming or law enforcement agencies, the Bureau of Indian Affairs, or the National Indian
Gaming Commission, particularly but not limited to any instance in which the Gaming
Enterprise and the General Council have failed to correct a violation of Applicable Law.

SMTC 6.8 Permitted Gaming Activities; Use of Funds; Regulation of Gaming Activities.

6.8.1 Unauthorized Gaming Prohibited. All Gaming Activities on Tribal Lands (Class
I, II or III) are prohibited except as expressly permitted under this Act.

6.8.1.1 Class |Gaming. Class I Gaming Activities are hereby permitted to the
extent consistent with Tribal custom and practice and provided the General Council is
given at least seven (7) days prior notice in writing of any intention to engage in such
gaming. The General Council may prohibit any conduct which is claimed to be Class I
gaming if the Council finds that such conduct is not in accordance with Tribal customs or
practices or violates IGRA or any other law.

6.8.1.2 Class I and Class II] Gaming. Class II and Class III gaming on Tribal
Lands are hereby authorized, provided the Tribe has the sole proprietary interest in and
responsibility for the conduct of any Gaming Operation. The Tribe also reserves the right
to contract with and license a person or entity to own, operate, or manage the Gaming |
Operation pursuant to the provisions of IGRA or as otherwise permitted by law. Nothing,
herein shall prohibit the Tribe from engaging the services of non-tribal persons as
employees or engaging any person or entity to assist the Tribe in the management of a
Gaming Activity pursuant to a management agreement entered into under the provisions
of IGRA or any other applicable law. Class III gaming shall be conducted in accordance
with a Tribal-State Compact, or any alternative thereto as provided by IGRA.

SMTC 6.9 Gaming Revenues.

Except as provided for under the terms of an agreement pursuant to the provisions of
IGRA or as otherwise permitted by law, all net revenues generated from any Class II or Class III
Gaming Activity are the property of the Trib¢\2Net revenues from Class II and Class III Gaming
Activities shall only be used for the following purposes: a

San Manuel Gaming Act 11
0411712004


of such Gaming Activities. Accordingly, no person shall engage in any Class II or Class III
Gaming Activities on Tribal Lands without a valid license issued by the Gaming Commission.

A labor union seeking to represent any Gaming Employees must also be deemed suitable
under standards and licensing requirements established by the Gaming Commission. Class III
Gaming Employees, Gaming Resource Suppliers, gaming management and investors may further
be subject to State Gaming Agency investigation and suitability requirements, including issuance
of a license or certification of suitability, under the Compact. Licenses shall be issued to persons
or entities associated with gaming activities, and the Gaming Commission reserves the right to
require drug and/or alcohol testing for any license applicant or licensees at any time. Applicants
who are denied a license must wait two (2) years prior to re-applying for a gaming license.

Gaming Resource Suppliers and other vendors providing gaming related goods or
services must qualify for and receive a license in order to do business with the gaming operation.
Vendors providing other goods or services, and those providing gaming related goods or services
valued at less than $25,000 in a 12-month period, may also be required to obtain a license from
the Gaming Commission prior to doing business with the Tribe’s Gaming Operation.

Any gaming license or finding of suitability issued by the Gaming Commission shall be
deemed a privilege, and is subject to suspension or revocation at any time. No license or license
renewal shall be issued that would place the Tribe in violation of tribal law, the Compact, or any
other applicable law. A gaming license or finding of suitability is subject to renewal at least
every two (2) years.

6.12.3 Burden on Applicant. The burden of proving an applicant’s qualifications to
receive a license hereunder is at all times on the applicant. Applicants must accept any risk of
adverse public notice, embarrassment or other action that may result from the application process
and expressly waive any claim for damages as a result thereof.

6.12.4 Applicant Claim of Privilege. An applicant may claim any privilege afforded by
law in connection with a gaming license application or investigation, but a claim of privilege
with respect to any testimony or evidence pertaining thereto may constitute sufficient grounds
for denial, suspension or revocation.

6.12.5 Release of Information. Persons applying for a license shall agree to release all
information necessary in order for the Gaming Commission and any applicable federal or state
entity to complete their suitability determination. Applicants must update all such information
promptly on an on-going basis, and to furnish such information as may be required by the State
Gaming Agency, or such other governmental agency as may be required by law.

6.12.6 Types of Licenses.

6.12.6.1 Class A License. Before permitting any person to become associated
with any Gaming Activity as an investor or other person owning or controlling 10% or
more interest in any management entity, or any primary management official, key
employee, a gaming related position designated by the Gaming Commission as requiring
a Class A license, closely associated independent contractor, or other individual or entity

San Manuel Gaming Act
04/17/2004 14