PONCA TRIBE OF NEBRASKA

(NORTHERN PONCA NATION)

CLASS III GAMING ORDINANCE

Purpose

-ï The Interim Tribal Council of The Ponca Tribe of Nebraska (Northern

Ponca Nation) (hereinafter Tribe), empowered by The Act of Congress

known as The Ponca Restoration Act Public Law 101-484, hereby enacts

this ordinance in order to set the terms for class Ill gaming operations on

tribal lands

II Gaming Authorized

Class Ill gaming as defined in the Indian Gaming Regulatory Act, P L

100-447, 25 U S C Section 2703 (8) (IGRA) and by the regulations

promulgated by the National Indian Gaming Commission at 25 C F R SS

502 3 (as published in the Federal Register at 57 FR 12382-12393, April 9, ~

-~1992) is hereby authorized The Class Ill Gaming hereby authorized shall be

only to the extent permitted in a Tribal - State Compact that is executed and

approved by the Secretary of the Interior

Ill Ownership of Gaming

The Tribe shall have the sole propriety interest in and responsibility for

conduct of any gaming operation authorized by this ordinance

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IV Use of Gaming Revenue

A Net revenues from class Ill gaming shall be used only for-the

following purposes to fund tribal government operations and programs,

provide for the general welfare of the Tribe and its members, promote tribal

economic development, donate to charitable organizations, or help fund

operations of local government agencies

B~ In order to provide and protect the citizens, of the Tribe and our

Futuie Generations the following specific purposes shall receive the net

revenues from Class III Gaming

Reference Resolution 51-93, as amended 7/18/94
(1) 50% of Net Revenue to

(a) Land Acquisition and Development

(b) Cultural Affairs and Events

(c) Provide Services to all of our Citizens

(d) Education

(e) Health Programs

(2) 15% of Net Revenue

(a) Long Term Trust Fund For the betterment of the General

Welfare of the Tribe.

(3) 35% of Net Revenue

(a) Non-Dedicated funds to be utilized for the purposes of

Section IV A. or C. infra.

C. If the Tribe elects to make per capita payments to tribal members,

it shall authorize such payments only upon approval of a plan submitted to

the Secretary of the Interior under 25 U.S.C. S 2710 (b) (3).

V. Audit

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

audit of gaming operations and shall submit the resulting audit reports to the

National Indian Gaming Commission.

B. All gaming related contracts that results in the purchase of

supplies, services, or concessions in excess of $10,000.00 annually, except

contracts for professional legal and accounting services, shall be specifically

included within the scope of the audit that is described in subsection A.

above.

VI. Protection of the Environment and Public Health and Safety

Class Ill gaming facilities shall be constructed,. maintained and

operated in a manner that adequately protects the environment and the

public health and safety.

VII. Licenses for Key Employees and Primary Management Officials

The Tribe shall ensure that the policies and procedures set out in this

section are implemented with respect to key employees and primary

management officials employed at any class III gaming enterprise operated

on Indian lands:

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A Definitions

For the purposes of this section, the following definitions apply

1 Key emoloyee means

(a) A person who performs one or more of

following functions

(1) Bingo caller,

(2) Counting room supervisor

(3) Chief of security,

(4) Custodian of gaming supplies or

cash,

(5) Floor manager,

(6) Pit boss,

(7) Dealer,

(8) Croupier,

(9) Approver of credit, or

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~ (10) Custodian of gambling devices

including persons with access

to cash and accounting records

within such devices,

c ~ (b) If not otherwise included, any other

person whose total cash

compensation is in excess of

$50,000 per year, or

(c) If not otherwise included, the four

most highly compensated persons in

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tl~e gaming operation

2 Primary management official means

(a) The person having management

responsibility for a management

contract,

(b) Any person who has authority

(1) To hire and fire employees, or

( , (2) To set up working policy for the

gaming operation, or

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(c) The chief financial officer or other

person who has financial

management responsibility

B ADDlication Forms

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

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

by an applicant

In compliance with the Privacy Act of 1974, the following

information is provided Solicitation of the information on this form is

authorized by 25 U S C 2701 et seq The purpose of the requested

information is to determine the eligibility of individuals to be employed in a

gaming operation The information will be used by National Indian Gaming

Commission members and staff who have need for the information ~n the

performance of their official duties The information may be disclosed to

appropriate Federal, Tribal, Stata, local, or foreign law enforcement and

regulatory agencies when relevant to civil, criminal or regulatory

investigations or prosecutions or when pursuant to a requirement by a tribe

or the National Indian Gaming Commission in connection with the hiring or

firing of an employee, the issuance or revocation of a gaming license, or

investigations of activities while associated with a tribe or a gaming

operation Failure to consent to the disclosures indicated in this notice will

result in a tribes being unable to hire you in a primary management bfficial

or key employee position

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

However, failure to supply aSSN may result in errors in processing your

application

2 Existing key employees and primary management officials shall

be notified in writing that they shall either

a Complete a new application form that contains a Privacy

Act notice; or

b. Sign a statement that contains the Privacy Act nôticŁ

and consent to the routine uses described in that

notice.

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C Background Investigations

1 The Tribe shall request from each primary management official

and from each key employee all of the following information

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

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

(spoken or written),

b Currently and for the previous 5 years business and

employment positions held, ownership interests in those businesses,

business and residence addresses, and drivers license numbers,

c The names and current addresses of at least three personal

references, including one personal reference who was acquainted with the

applicant during each period of residence listed under paragraph (1) (b) of

this section,

d Current business and residence telephone numbers,

e A description of any existing and previous business

rØlatiohships with Indian tribes,, including ownership interests in those

businesses,

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

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

applicant

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A false statement on any part of your application may be grounds for

not hiring you, or for firing you after you begin work Also, you may

be punished by fine or imprisonment

(U S Code, title 18, section 1001 )

4 The Tribe shall notify in writing existing key employees and

primary management officials that they shall either

a Complete a new application form that contains a notice

regarding false statements, or

b Sign a statement that contains the notice regarding false

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f A description of any existing and previous business

relationships, with the gaming industry generally, including ownership

interests in those businesses,

g The name and address of any licensing or regulatory agency

with which the person had 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,

i For each misdemeanor conviction or ongoing misdemeanor

prosecution (excluding minor traffic violations), within 10 years of the date

of the application, the name and address of the court involved and the date

and disposition, -

For each criminal charge (excluding minor traffic charges),

whether or not there is a conviction, if such criminal charge is within 10

years of the date of the application and is not otherwise listed pursuant to

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

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

k The name and address of any licensing or regulatory a~ency

with which the person had filed an application for an occupational license or

permit, whether or not such license or permit was granted,

I A current photograph,

m Any other information the Tribe deems relevant, and

n Fingerprints consistent with procedures adopted by the Tribe

according to 25 C F A S 522 2 (h)

2 The Tribe shall conduct an investigation sufficient to make a

determination under subsection D below In conducting a background

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

identity of each person interviewed in the course of the investigation

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D. Eligibility Determination

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

any, and reputation, habits and associations to make a finding concerning

the eligibility of a key employee or primary management official for

employment in a gaming operation. If the tribe determines that employment

,: of the person poses a threat to the public interest or to the effective

regulation of gaming, or creates or enhances dangers of unsuitable, unfair, -

or illegal p~actices and methods and activities in the conduct of gaming, a

:~ tribal gaming operation shall not employ that person in a key employee or

primary management official position

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: E.~-. Procedures for Forwarding Applications and Reoorts for Key

Emolovees and Primary Management Officials to the National

Indian Gaming Commission

1.~ When akey employee or primary management official begins

work~ at a gaming operation authorized y this ordinance, the Tribe shall

forward to the National Indian Gaming Commission a completed application

for employment and conduct the background investigation and make the

determination referred to in subsection D of this section

2 The Tribe shall forward the report referred to in subsection F

of this section to the National Indian Gaming Commission within 60 days

after an employee begins work or within 60 days of the approval of this

ordinance by the Chairman of the National Indian Gaming Commission

3 The gaming operation shall not employ as a key employee or

primary management official a person who does not have a license after 90

days

F Report to the National Indian Gamma Commission

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

-.. section, the Tribe shall prepare and forward to the National Indian Gaming

Commission an investigative report on eaOh background investigation. An

investigative report. shall include all of the following:

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a. Steps taken in conducting a background

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investigation;

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b.. Results obtained;

c Conclusions reached, and

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d The bases for those conclusions

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

determination made under subsection D of this section

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

a Shall notify the National Indian Gaming

Commission, and

b May forward copies of its eligibility

determination and investigative report (if any) to

the National Indian Gaming Commission for

inclusion in the Indian Gaming Individuals Records

System

4 With respect to key employees and primary management

officials, the Tribe shall retain applications for employment and reports (if

any) of background investigations for inspection by the Chairman of the

National Indian Gaming Commission or his or her designee for no less than

three (3) years from the date of termination of employment

G Granting a Gaming License

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

Gaming Commission receives a report, the National Indian Gaming

Commission notifies the tribe that it has no objection to the issuance of a

license pursuant to a license application filed by a key employee or a

primary management official for whom the tribe has provided an application

and investigative report to the National Indian Gaming Commission, the

Tribe may issue a license to such applicant

2 The Tribe shall respond to a request for additional information

from the Chairman of the National Indian Gaming Commission concerning a

key employee or a primary management official who is the subject of a

report Such a request shall suspend the 30-day period under paragraph G

1 of this section until the Chairman of the National Indian Gaming

Commission receives the additional information

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

to reinstate a gaming license The Tribe shall notify the National Indian

Gaming Commission of its decision

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VIII Lice nse Locations

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

location on Indian lands where class Ill gaming is conducted under this

ordinance

IX Gaming Commission

In order to assist the Tribe in the regulation and conduct of its

gaming operation an independent Gaming Commission is hereby created

-~ A Members The Commission shall consist of three citizens at large

of the Ponca Tribe of Nebraska all of which shall be selected by the Tribal

Council Members of the Commission shall select a Chairperson, Secretary

and Treasurer The Commission shall also select two full-time individuals to

serve as Executive Secretary and Assistant Executive Secretary A person

who is a Chairperson or the Secretary and Treasurer may also be the

Executive Secretary or Assistant Executive Secretary

B Standards for Commissioners Each proposed member of the

Commission shall be required to agree that their name may be submitted by

the Tribal Council to background investigators or to law enforcement

officials in order to determine that the proposed member,

1 Has not been convicted of a gaming related offense,

(misdemeanor or felony),

2 Has any financial interest in, or management responsibility for,

any gaming activity, or

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3 Has a financial interest in, or management responsibility for any

management contract,

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Should the background check on any proposed appointee be determined

negative, then that appointee shall not be eligible to serve on the

Commission

C Removal of Commissioners The following are cause for removal

from the Gaming Commission

1 Malfeasance in the handling of gaming regulations and controls

2 Neglect of duty

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~: 3. Unexcused absence from three (3) consecutive scheduled

Commission meetings

4 Conviction of a gaming related offense, (misdemeanor or felony)

5 Noncompliance with the Ponca Tribe of Nebraska Gaming

Ordinances

6 Acceptance of bribes

D~ Pro~edure for Removal Any commission member who during the

term for which he/she is elected is charged with committing any of the

offenses listed in Section C may be removed from office by a 2/3 vote of

the members Tribal Council at a meeting duly called for the removal of a

Commissioner Provided a quorum of the Tribal Council is present at such

meeting

E Notification to the alleged Upon notice of a alleged violation by a

Commission Member of any provisiqn in Section C the Tribal Council by

motion may commence to fix the time and place for meeting on removal. A

copy of the call for removal shall be provided to the alleged commissioner

via certified mail at least thirty (30) days before any meeting to consider

his/her removal The call for removal shall set forth the specific act that is

an alleged violation of Section C

F. Rights of the Accused

a Answering charges Before any vote of the tribal council

at a duly called removal meeting, the accused shall be afforded the

opportunity to hear and answer any and all written and documented charges

presented b~/ the Council at the meeting wherein his/her removal is

considered

b Evidence The accused shall be permitted to have any person(s)

he/she so desires to testify on his/her behalf, including notarized affidavits,

::~statements and pertinent documents as may determine his/her innocence.

c. Confrontation of Accusers The accused shall be afforded the

opportunity to confront all charges against him/her as presented by the

notice~

d. Failure to poDear Failure of the accused to appear at the

scheduled time shall be deemed a waiver of his/her right to a hearing

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G Vacancies

a Should a vacancy occur for reasons of removal, the Tribal Council

by. majority vote shall appoint the replacement for the remainder of the

unexpired term

b Should a vacancy occur for reasons other than removal or

expiration of term, then the Tribal Council shall have the authority to appoint

a replacement for the remainder of the unexpired term

H Term

a After the first year of service of all (3) Gaming Commissioners,

the terms of the three (3) Gaming Commission officials shall be staggered

terms of three (3) years The Tribal Council shaH fix the staggered terms for

each initial commissioner that is appointed

I Conflict of Interest No Commissioner, attorney or tribal employee

assisting the Commission, or members of his/her nuclear family of the

Commissioner may have a controlling financial interest in any gaming

business or in any gaming contract In the event that a conflict of interest

exists, a Commissioner, attorney or employee assisting the Commission

shall be removed

J Gaming Commission Rule-Making Authority The Commission may

promulgate rules for the orderly transaction and conduct of the Tribes

gaming business and the substantive rules that it may determine proper

concerning the issuance, revocation, and suspension of gaming licenses to

implement any Tribal/State compact or Management Agreement, the

conduct and operation of the gaming activities and any other things

necessary to carry out the pi~rposes of this Ordinance The Commission

may also promulgate rules necessary to administer complaints which may be

received from the public and conduct such other investigations and

inspections into the conduct of the games and the licensees and the

maintenance of the equipment as the Commission may deem necessary and

proper To fix meeting dates of the Commission and define the

responsibility and the compensation for the Executive Secretary and

Assistant Executive Secretary

K Gaming Commission Powers

1 To implement and enforce all rights and obligations of the Tribe

established by any Class II or Class III Management Agreements or

Tribal/State compacts

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2. Suspend or revoke for cause, any gaming license.

3. To adopt and submit to the Tribal Council a annual operating

budget. . .

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4. To adopt rules and regulations consistent with the powers

delegated to the Commission

5 Develop licensing procedures for all employees of the gaming

operation pursuant to 25 CFR §558 1(b)

6. Issue, suspend, revoke, and renew licenses of primary

management officials and key employees upon completion of background

investigations and after following the procedures contained in 25 CFR Parts

556 and 558

~. .~ 7. Conduct background investigations on primary management

: ~ officials and key employees according to requirements that are at least as

stringent as those in 25 CFR Parts 556 and 558 pursuant to 25 CFR

1522.4(b)(5). .., .. .

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8 Forward completed employment applications for primary

management offic~aIs and key employees to the NIGC pursuant to 25 CFR

558 3 These applications should include the Privacy Act notice and the

notice regarding false statements contained in 25 CFR § 556 2 and 556 3

9 Forward completed investigative reports on each background

investigation for each primary management official or key employee to the

NIGC prior to issuing a license pursuant to 25 CFR § 556 5

10 Review a persons 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 a gaming operation pursuant to 25 CFR §558 2

Iii. Notify the NIGC if, after conducting a background investigation

onaprimary management official or a key employee, the tribe does not

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.~ liôense the individual pursuant to 25 CFR §556.5 (d)(1). .

12. Retain applications and reports of background investigations of

primary management officia!s and key employees for no less than three

years from termination of employment pursuant to 25 CFR § 558 1(c)

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13. Issue separate licenses to each place, facility, or location on

Indian lands where a tribe elects. to allow gaming pursuant to 25 CFR

§522 4(b)(6)

14 Ensure that gaming facilities are constructed, maintained and

operated in a manner that adequately protects the environment and the

public health and safety pursuant to 25 CFR §522 4(b)(7)

15 Obtain annual independent outside audits and submit these

audits to the NIGC pursuant to 25 CFR §522 4(b)(3) The scope of these

audits should include all gaming related contracts that result in purchases of

supplies, services or concessions for more than $10,000 in any year

pursuant to 25 CFR §522 4(b)(4)

16 Ensure that net revenues from any gaming activities are used for

the limited purposes set forth in the tribal gaming ordinance pursuant to 25

CFR §522 4(b)(2)

17 Promulgate tribal gaming regulations pursuant to tribal law

18 Monitor gaming activities to ensure compliance with tribal

law/regulations

19 Interact with other regulatory and law enforcement agencies

regarding the regulation of gaming

20 Conduct investigations of possible violations and take

appropriate enforcement action with respect to the tribal gaming ordinances

and regulations

21 Provide independent information monthly to the tribe on the

status of the tribes gaming activities

22. Take testimony and conduct hearings~ on regulatory matters,

including matters related to the revocation of primary management officials

and key employee licenses. ~

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23~ Establish or approve minimum internal control standards or

- ~procedures for the gaming operation, including the operations credit policies

~ànd procedures for acquiring supplies and equipment.

24. Establish any supplementary criteria for the licensing of primary

management officials, key employees, and other employees that the tribe

deems necessary

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25. Establish standards for and issue licneses or permits to persons

and entities who deal with the gaming operations such as manufacturers

and suppliers of machines, equipment and supplies:

26. Maintain reôords on licensees and on persons denied licenses

including person otherwise prohibited from engaging in gaming activities

within the tnbes jurisdiction

27~ Perform audits of bdsiness transactiobs to ensure compliance

with regulations and/or policy

28 Establish or approve rules of various games, and inspect games,

tables, equipment, machines, cards, dice, and chips or tokens used in the

gaming operation Establish or approve video surveillance standards

Establish standards/criteria for gaming machines and facilitate the testing of

~ machines for compliance. -

29.: Resolve patron disputes, employees grievances; and other

problems, pursuant to the tribal management agreements and the

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Tribal/State compacts for Class Ill Gaming

L Appeal of Gaminci Commission Actions Any action of the

Commission is subject to appeal to Nations Court for the Ponca Tribe of

Nebraska and if such Court is not in existence to the Tribal Council ~Jotice

of appeal shall be filed in writing with the Commission and Clerk of Court or

Secretary of the Tribal Council, as the case may be, within ten (10) days

from written notice of any action of the Commission Failure to timely file

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an appeal shall make the action final

X Annual Assessment for Gamma Commission

1 The Gaming Commission is authorized to assess each gaming

location up to $75,000 00 per annum for costs to pay for Commission -

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services, salaries, fees and expenses. The first annual Gaming Commission

.;:assessrne~t shall be made sixty (60) days after the opening of any gaming

location. The assessment shall be deemed an operating expense and will be

paid from the gross gaming revenue of the gaming location

-:: .- 2. The Gaming Commission is authorized to levy assessments upon

the management group(s) prior to the opening of a gaming facility by the

:~Tribe. Pre-opening assessments by the Gaming Commission shell be utilized -

~for the reasonable expenses of the Commission for conducting suitability

determinations,- background investigations, salaries, stipends, lodging,.

meals, travel expenses, support staff salaries, and any other expenses

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deemed necessary by the Gaming Commission to fulfill its obligations

established by these ordinances Pre-opening assessments paid by the

gaming management group(s) shall be deemed as developmental costs of

gaming by the Ponca Tribe of Nebraska Pre-opening assessments shall be

non-recourse payments levied by the Gaming Commission upon the

management group(s) and shall not constitute a debt or obligation of the

Ponca Tribe of Nebraska or the Gaming Commission

3 The Commission may raise the amount of annual assessment

made thereafter if the costs of conducting Commission business justify an

increase Any subsequent annual increase shall not exceed 7% of the

previous years assessment

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Repeal (

To the extent that they are inconsistent with this ordinance, all

prior gaming ordinances are hereby repealed

XII Effective Date -

This ordinance is hereby adopted by the Ponca Tribe of Nebraska

pursuant to Resolution 5 1-93 This ordinance constitutes the approved

Class Ill gaming ordinance for the Tribe pursuant to amendment to

Resolution 5~-93 effective July 18, 1994 This ordinance shall become

effective after it is approved by the National Indian Gaming Commission or

such other agency delegated to grant approval of tribal gaming ordinances

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