(f) The Commission shall have full power and authority to issue subpoenas
and compel the attendance of witnesses for hearings at any place within
the Reservation, to administer oaths and to require testimony under oath.
Any process or notice may be served in the manner provided for service of
the process and notices in civil actions. The Commission may pay such
transportation and other expenses of witnesses, as it may deem reasonable
and proper;

(g) In connection with the Commission’s power to hear appeals, the
Commission may determine whether sanctions should be imposed on, or
conditions should be placed on the license of any Person subject to the
jurisdiction of the Gaming Ordinance;

(h) Impose fines, up to $5,000 for each violation of this Ordinance; and

(i) With the exception of conducting hearings pursuant to subparagraphs (f)
and (g) above, and the promulgation of rules and regulations in the manner
provided in Section 7.10, the Commission may delegate any of its duties
and authorities to the Executive Director.

7.13 Right of Inspection. The Commission shall have the authority to:

(a) Inspect and examine all Gaming Facilities and premises where gambling
devices or equipment are manufactured, sold or distributed;

(b) Inspect all equipment and supplies in, upon or about a Gaming Facility, or
inspect any equipment or supplies, wherever located, which may have or
have been used in the Gaming Facility;

(c) Summarily seize and remove from a Gaming Facility, wherever located,
and impound such equipment and supplies for the purpose of examination,
inspection, evidence or forfeiture;

(d) | Demand access to and inspect, examine and audit all papers, books and
records of applicants and Licensees respecting any income produced by
any Gaming Activity and require verification of income and al] other
matters affecting the enforcement of the policy of, or any of the provisions
of, this Ordinance; and

(e) Seize and impound any Patron’s winnings which the Commission has
reason—to—believe-may—have—been—won-or-obtained—in—violation—ofthis ————

Ordinance pending a civil forfeiture of such seizure.

7.14 Powers of Delegation; Budgeting Matters. The Commission may organize
itself into functional divisions as it may deem necessary and may from time to time
modify such plan of organization. The Commission shall establish its own budget for
operations and acquire such furnishings, equipment, supplies, stationery, books, motor

11 Rincon Gaming Ordinance #2011-809


(f) That all financial statements and documentation required by this Section
be maintained for a minimum of five (5) years.

12.02 Minimum Internal Control Standards,

(a) Applicable Standards. The Commission shall adopt and make applicable
to the Band’s Gaming Operation minimum internal control standards that:

(dy

2)

Contain standards for currency transaction reporting that comply
with 31 CFR Part 103; and

Establish internal control standards for all Class II and Class III
Gaming Activities consistent with the requirements of this
Ordinance, IGRA, and the Tribal-State Compact that is approved
by the Secretary of the Interior and is in effect, or otherwise has
been authorized by the Secretary of the Interior or federal law.

(b) — Compliance.

(yy

(2)

The Commission shall require the Gaming Operation to adopt a
system of internal controls which complies with the standards
adopted by the Commission pursuant to Sections 12.01 and12.02;
and

The Commission shall monitor and enforce compliance with the
internal control standards adopted pursuant to Sections 12.01 and
12.02.

12.03 Commission’s Right to Conduct Audits. The Commission may require
audits of the financial statements of the Gaming Operation and of any Gaming Activity.
The Commission shall require such audits to occur when necessary to ensure the
integrity, security, honesty and fairness of the Gaming Operation and all Gaming
Activity. The Commission shall take reasonable steps to coordinate the timing of these
audits with the annual audit required by Section 13, provided that the Commission may
require audits to occur at other times if necessary to preserve the assets of the Band or
ensure the integrity, security, honesty and fairness of the Gaming Operation or any
Gaming Activity. Such audits may:

(a) Be made by independent Certified Public Accountants authorized to
practice public accounting in the State of California;

(b) Include an opinion (qualified or unqualified), or if appropriate, disclaim an
opinion on the financial statements taken as a whole in accordance with
standards of the accounting profession established by rules and regulation
of the California State Board of Accountancy and the American Institute
of Certified Public Accountants;

32 Rincon Gaming Ordinance #201 1-809


(j) For any gaming-related criminal conviction, whether felony or
misdemeanor;

(k) For each criminal charge (excluding minor traffic charges), within 10
years of the date of the application, whether or not there is a conviction,
the name and address of the court involved and the date and disposition;

0) The names and address of each licensing or regulatory agency with which
the person has filed an application for an occupational license or permit,
whether or not such license or permit was granted;

(m) A current photograph;

(n) Any other information the Commission may deem relevant under the
circumstances; and

(0) Fingerprints consistent with procedures adopted by the Commission in
accordance with 25 C.F.R. §522.2 (h).

The Executive Director shall be responsible for the conduct an investigation sufficient to
make a determination under Section 11.06 below. The Executive Director shall conduct a
background investigation that meets or exceeds the requirements of 25 C.F.R. §§ 556 and
558. In conducting a background investigation, the Executive Director shall keep
confidential the identity of each person interviewed in the course of the investigation.
This confidentiality shall also be maintained by the Commission and any other person
provided with such information.

11.06 Eligibility Determination. The Executive Director shall review an applicant’s
prior activities, criminal record, if any, and reputation, habits and associations to make a
determination, pursuant to this Ordinance, concerning the suitability for licensure of Key
Employee and Primary Management Official applicants. No license shall be issued to an
applicant, if it is determined that employment of an applicant would pose 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.

11.07 Procedures for Forwarding Applications and Reports for Key Employees
and Primary Management Officials to the National Indian Gaming Commission.

(a) When a Key Employee or Primary Management Official begins work at a
Gaming-Operation,the-Executive-Directorshall_forward—to-the-National

Indian Gaming Commission a completed Application for employment and
conduct the background investigation and make the determination referred
to in Section 11.06 of this Ordinance.

(b) The Executive Director shall forward the report referred to in Section
11.08 of this Ordinance to the National Indian Gaming Commission

28 Rincon Gaming Ordinance #2011-809


18,

19.

the Band, the Commission is not authorized to, and shall not, contact the State’s
appointed agencies (or its agents) without the prior approval of the Business Committee.

PROTECTION OF THE ENVIRONMENT AND PUBLIC HEALTH AND
SAFETY

18.01 Class II and Class III gaming facilities on the Reservation shall be
constructed, maintained and operated in a manner that adequately protects the
environment and the public health and safety.

18.02 The Commission shall ensure compliance with this Section 18.01 and
applicable NIGC regulations.

MISCELLANEOUS

19.01 Security, Each licensed Gaming Activity must provide for reasonable security.
All security officers and personnel must be licensed by the Commission. Such licensing
may or may not entail full background investigations required for Primary Management
Officials and Key Employees.

19.02 Maintenance of Ordinance and Regulations. Each licensed Gaming Facility
shall obtain, maintain and keep current a copy of this Ordinance and the Regulations.
Management of the Gaming Operation shall make a complete copy of this Ordinance and
the Regulations available for review by any Patron. That a Licensee does not have a
current copy of the Gaming Ordinance, Regulations, or any of the rules of the
Commission, shall not in any way diminish the Licensee’s obligation to abide by the
Ordinance and Regulations. Regulations and amendments to this Ordinance shall be
provided to the Gaming Operation within a reasonable time period after adoption.

19.03 Compliance with Other Laws. The construction, maintenance and operation
of any Gaming Facility shall be in a manner, which adequately protects the environment
and the public health and safety and shall comply with any otherwise applicable Tribal
and federal laws, including the Compact with the State of California relating to
environmental protection and health and safety.

19.04. Amendment of Commission Regulations. All Regulations promulgated
herein by the Commission are subject to proper revision, repeal or amendment by the
Commission. The Business Committee shall ratify, revise or veto any amendment in the
manner provided in Section 25.

19.05__Severability._If_any_provision_of_this_Ordinance,—or_its—application—te—any——

purpose or circumstance, is held invalid by a court of competent jurisdiction, the
remainder of the provision, or the application of the provision through another Person or
circumstance, shall not be affected.

19.06 Captions. The captions and heading of this Ordinance are included for the
convenience only and shall in no way limit or affect the text thereunder.

37 Rincon Gaming Ordinance #2011-809


Commission. The term Management Contract shall include all collateral agreements, but
does not include an employment contract between the Band and any natural person.

3.24 Net Revenues. Net revenues means gross gaming revenues of the Gaming
Operation less - (a) amounts paid out as, or paid for, prizes; and (b) total gaming-related
operating expenses, including all those expenses of the gaming operation commonly
known as operating expenses and non-operating expenses consistent with professional
accounting pronouncements, excluding management fees.

3.25. Patron. Any person or group of persons who participates as players in Gaming
Activity as defined in this Ordinance on the Reservation, or who are physically present at
Gaming Facilities other than employees of the Gaming Operation.

3.26 Person. Any association, partnership, corporation, firm, trust or other form of
business association as well as a natural person.

3.27. Primary Management Official.

(a) The person having management responsibility for any 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

(3) The chief financial officer or other person who has financial
management responsibility.

3.28 Principal. With respect to any Person:
(a) Each of its officers and directors;
(b) Each of its principal management employees, including any chief
executive officer, chief financial officer, chief operating officer or general
manager;

(c) Each of its owners or partners, if an unincorporated business;

(d) Each ofits shareholders who own ten (10) percent or more of the shares of

the corporation, if a corporation;
(e) Each Person other than a banking institution who has provided financing

for the entity constituting ten (10) percent or more of the total financing of
the entity; and

5 Rincon Gaming Ordinance #201 1-809


(ce) The Executive Director shall have authority to hire such professional,
clerical, technical and administrative personnel as may be necessary to
carry out the provisions of the Gaming Ordinance;

(d) The Executive Director shall have the authority to make decisions
regarding licensure and compliance with this Ordinance, subject to appeal
as provided herein; and,

(e) The Executive Director in pursuit of the attainment of the objectives and
the purposes of this Ordinance may:

(i) Direct and supervise all administrative actions of the Commission.

(ii) Sue on behalf of the Commission, after consultation with the
Commission.

(iii) | Make, execute and effectuate any and all agreements or contracts,
including contracts for the purchase of goods and services as are
necessary. Such engagement shall be conducted in accordance
with the procurement policies and procedures of the Band.

(iv) Employ the services of such person as are considered necessary for
the purposes of consultation or investigation and fix the salaries of
or contract for the services of such legal, professional, technical
and operational personnel and consultants within the annual budget
as approved by the Commission. Selection and employment of
such persons shall be conducted in accordance with the
employment policies and procedures of the Band.

(v) Appoint such staff as he determines appropriate, consistent with
the budget approved by the Business Committee.

(vi) Conduct all investigations, including required background
investigations, and suspend, revoke, issue or deny any licenses.

(vii) Perform such other duties as the Executive Director deems
necessary to effectuate the purposes of this Chapter or from time to
time as assigned by the Commission.

8.03 Files and Records to be Maintained by the Executive Director and the
Commission;_Confidentiality of Information.

(a) The Executive Director shall maintain a file of all Applications for
licenses under this Ordinance, together with a record of all actions taken
with respect to those Applications.

15 Rincon Gaming Ordinance #201 1-809


13.

14.

(c) Disclose whether the accounts, records and control procedures maintained
by the Gaming Operation are as required by the Regulation promulgated
by the Commission pursuant to Sections 12.01 or12.02; and

(d) Provide for a review of the internal control structure, by the independent
Certified Public Accountant, to disclose any deviation from prescribed
rules, regulations, or industry practice and report such finding to the
Commission and management.

12.04 Prohibition Against Embezzlement. Any maneuver or action of any kind
which in the opinion of the Commission is effectuated by any Person to unlawfully divert
Gaming proceeds or other proceeds properly belonging to the Band shall constitute
grounds for taking disciplinary action against the Person. If the Commission finds an
unlawful diversion was attempted, it may sanction the Person. Sanctions may include
restitution, fining, revoking, suspending, limiting or refusing to renew such Person’s
License. The Commission or Business Committee may also seek prosecution of the
offender under Tribal, State, and federal laws,

ANNUAL AUDIT

13.01 Requirement of Annual Audit. The Business Committee on behalf of the
Band shall cause to be conducted at least annually an independent audit of all Gaming
Operations pursuant to 25 U.S.C. § 2710(b)(2)(C) and shall submit the resulting audit
reports to the National Indian Gaming Commission.

13.02 Contracts Included in Scope of Audit. All gaming-related contracts that
result in the purchase of supplies, services, or concessions in excess of $25,000.00
annually, except contracts for professional, legal and accounting services, shall be
specifically included within the scope of the audit that is described in Section 13.01.

REVIEW AND APPROVAL OF GAMING

14.01 Prohibition Against Gaming. No Person duly authorized by the Commission
to conduct Gaming shall engage, conduct or condone any game unless and until such
game is authorized and approved pursuant to Section 4 of this Ordinance, a valid license
has been issued and all fees paid by the Licensee, and procedures governing such game
have been duly approved by the Commission. Each request for approval of a new game
shall be filed with the Commission. The Commission will consider the request and if not
inconsistent with this Ordinance will recommend that the Business Committee approve of
the game. The Business Committee may approve of any game not prohibited by this

Ordinance or the Compact with the State of California,

14.02 Grace Period. The prohibition contained in Section 9.07 shall not apply to
those games already being played as of the date of the enactment of this Ordinance;
provided that the Licensee conforms to the then existing rules and any subsequent rules
promulgated hereunder within five (5) days of such promulgation.

33 Rincon Gaming Ordinance #201 1-809


Table of Contents

Page
PURPOSE .osssccssessessssssssesvesseessscssessecsnecsssssecssessucsuscavessecsusssessescevessussnssseesseeaestetanesneaseeneesess 1
APPLICABILITY.....
3.01 Annual Commission Budget wl
3.02 Application. 1
3.03 Band......... 1
3.04 Business Committe 1
3.05 Calendar Year . 1
3.06 Chairman... 1
3.07 Class I Gaming 1
3.08 Class Il Gaming . 1
3.09 Class II] Gaming 2
3.10 Commission... 2
3.11 Commissioner or Commission Member 2
3.12 2
3.13 2
3.14 Gaming or Gaming Activity... 3
3.15 Gaming Equipment or Gaming Devic 3
3.16 Gaming Facility .. 3
3.17 Gaming Operatior 3
3.18 Gaming Resources. 3
3.19 Gaming Resource Suppliei 3
3.20 IGRA. 4
3.21 Key Employee. 4
3.22 Licensee... 4
3.23 Management Contract or Contract 4
3.24 Net Revenues 5
3.25 Patron... 5
3.26 Person... 5
3.27 Primary Management Official. 5
3:28 — Principat. 5
3.29 Regulation: 6
3.30 Reservation 6
3.31 Tribal-State Compact or Compact 6
3.32 Words and Terms 6

Rincon Gaming Ordinance #2011-809


11.

LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT
OFFICIALS

11.01 Policies and Procedures. The Commission shall ensure that the policies and
procedures set out in this Section are implemented with respect to Key Employees and
Primary Management Officials employed at any Class II and/or Class III gaming
enterprise operated on the Reservation.

11.02 Application Forms. The following notice shall be placed on the Application
form of 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 granted a gaming license. The information will be
used by the Tribal gaming regulatory authorities and by 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 issuance, denial, 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 license you for a primary
management official or key employee position.

The disclosure of your Social Security Number (SSN) is voluntary. However,
failure to supply a SSN may result in errors in processing your Application.
Existing key employees and primary management officials shall be notified in
writing that they shall either:

(a) Complete a new application form that contains a Privacy Act Notice; or

(b) Sign a statement that contains the Privacy Act Notice and consent to the
uses described in that notice.

11.03 Application Notice. The following notice shall be placed on the application
form for a Key Employee or a Primary Management Official before that form is filled out
by-an-applicant:

A false statement on any part of your license application may be grounds for
denying a license or the suspension or revocation of a license. Also, you may be
punished by fine or imprisonment (U.S. Code, title 18, section 1001).

26 Rincon Gaming Ordinance #201 1-809


vehicles and other things as it may deem necessary in carrying out its functions and incur
such other expenses, within the limit of funds available to it, as it may deem necessary.
Within the limits of a Business Committee approved budget, the Commission shall
employ and fix the salaries of or contract for services of such professional, technical and
operational personnel and consultants as the execution of its duties and the operation of
the Commission may require. At the Business Committee’s discretion, said budget may
be reviewed and modified by the Business Committee. Upon the end of the budget year
any surplus, which exists, shall be refunded to the Business Committee at its discretion.

7.15 Record-Keeping. The Commission shall keep and maintain a file of all
Applications for licenses under this chapter, together with a record of all action taken
with respect to such Applications in the matter detailed in Section 8.03.

7.16 Processing Employee and Patron Complaints. The Commission may receive
any complaint from an employee of the Gaming Operation or any member of the public
who is or claims to be adversely affected by an act or omission related to any Gaming
Activity which is asserted to violate the Compact, this Ordinance, or Regulation, and may
upon consideration of such complaint order such remedial action as it deems appropriate
to bring the Gaming Activity into compliance with such provisions. The Commission
may for this purpose, in its sole discretion, direct the Executive Director to conduct a
hearing and receive evidence with regard to such complaint if the Commission deems an
evidentiary proceeding useful in the resolution of such complaint.

7.17 Violations of Gaming Ordinance — Civil Infraction. Any violation of this
Ordinance is a civil infraction and any person found to have committed such an infraction
is subject to imposition of a fine of no more than $5,000 for each violation.

Any money, other representative of value or real or personal property used in or derived
from participation in any activity conducted in violation of this Ordinance shall be
subject to seizure by Tribal Law Enforcement Officers, and forfeited to the Band’s
treasury upon a finding by the Tribal Court that such money or other representation of
value was used in or derived from participation in an activity conducted in violation of
this Ordinance. Tribal Law Enforcement Officers shall coordinate and cooperate with the
Executive Director in the issuance of citations and seizure of property used in the
commission of a violation of this Ordinance. A Tribal Law Enforcement Officer shall
accompany the Executive Director during the issuance of any such citation or seizure of
property.

Winnings found to have been received in violation of this Ordinance shall be forfeited
and become the property of the Band.

The general manager of the Gaming Operation and the head of security for the Gaming
Operation (as designated by the general manager), the Executive Director and the
Commission’s compliance manager shall each have the power to temporarily detain
Persons suspected of violating this Ordinance and seize evidence if any of the foregoing

12 Rincon Gaming Ordinance #2011-809


on a temporary or conditional basis pending completion of the
licensing process.

(b) Except as provided in subdivisions (c) and (d), any person
whose application to the State Gaming Agency for a
determination of suitability, or for a renewal of such a
determination, has been denied or has expired without renewal
is not eligible for licensure.

(c) Notwithstanding subdivision (a), a person whose application
for a determination of suitability from the State Gaming
Agency, or for a renewal of such a determination, has been
denied by the State Gaming Agency may continue to be
employed, if: (i) the person holds a valid and current license
issued by the Commission that is renewed at least biennially;
(i) the denial of the application by the State Gaming Agency
is based solely on activities, conduct, or associations arising
prior to the filing of the person’s initial application to the State
Gaming Agency for a determination of suitability; (iii) the
person is not an employee or agent of any other Gaming
Operation; and (iv) the person has been in the continuous
employ of the Tribe for at least three years prior to the
effective date of the 1999 Compact.

(d) —_ Notwithstanding subdivision (a), a person whose application
for a determination of suitability from the State Gaming
Agency, or for a renewal of such a determination, has been
denied by the State Gaming Agency, is not prohibited from
obtaining a license from the Commission, provided that the
person is otherwise found suitable, if the person is an enrolled
member of the Band, as defined in this subdivision, and if (i)
the person holds a valid and current license issued by the
Commission that is renewed at least biennially; (ii) the denial
of the application by the State Gaming Agency is based solely
on activities, conduct, or associations that arose prior the filing
of the person’s initial application to the State Gaming Agency
for a determination of suitability; and (iii) the person is not an
employee or agent of any other Gaming Operation.

9.05 Facility Licenses. A separate license shall be required for each place, facility,

or location on Indian lands where Class II and/or Class III gaming is to be conducted
under this Ordinance, subject to renewal at least every two years. Prior to issuance of a
Facility License, the Commission must determine that there is substantial compliance
with all requirements of this Ordinance have been met regarding the facility.

18 Rincon Gaming Ordinance #201 1-809


Band’s Revenue Allocation Plan do not violate this provision. The Commission shall
cooperate to the fullest extent possible with any federal or state law enforcement agency
to pursue prosecution under applicable federal or state law.

EXECUTIVE DIRECTOR
8.01 Qualifications of Executive Director; Salary.

(a) The position of Executive Director of the Commission is hereby created.
The Commissioners shall appoint the Executive Director, subject to the
confirmation by the Business Committee. Selection and employment of
the Executive Director shall also be conducted in accordance with the
Band’s employment policies and procedures.

(b) No member of the Business Committee, no person holding any elective
office, nor any officer or official of any political party is eligible for the
appointment of Executive Director.

(c) The Executive Director must have at least five (5) years of administrative
experience in public or business administration and possess broad
management skills and have as a minimum a degree in Business
Administration, Law, Accounting, Criminal Justice or like degree from an
accredited college or university.

(d) The Executive Director shall devote his or her entire time and attention to
the duties imposed under this Ordinance and the business of the
Commission and shall not pursue any other business or occupation or hold
any other office of profit unless approved by the Commission.

(e) The Executive Director shall not have any pecuniary interest in any
business or company holding a license under this Ordinance or doing
business with any person licensed under this Ordinance.

(fp The Executive Director is entitled to an annual salary as set by the Annual
Commission Budget.

8.02 Authority of Executive Director.

(a) The Executive Director shall furnish to the Commission such
administrative and clerical services and such furnishings, equipment,
upplies,_stationery,-books-and-all_otherthings-thatthe-Commission-may-

deem necessary or desirable in carrying out its functions;
(b) The Executive Director shall employ division directors that possess at

least two (2) years of training and experience in the fields of accounting,
investigation, law enforcement, law or gaming;

14 Rincon Gaming Ordinance #2011-809


11.04 Updated Notice, The Executive Director shall notify in writing, existing Key
Employees and Primary Management Officials that they shall either:

(a)

(c)

Complete a new Application form that contains the notice set forth on
Section 11.03; or

Sign a statement that contains the notice set forth in Section 11.03.

11.05 Background Investigations. Each Primary management Official and each
Key Employee shall provide the Commission the following information:

(a)

(b)

()

@
(e)

109)

(g)

(h)

Full name, other names used (oral or written), Social Security Number(s),
birth date, place of birth, citizenship, gender, all languages spoken or
written;

Currently and for the previous five (5) years: all businesses in which the
applicant holds an ownership interest, all employment positions held, all
business and residential addresses, and drivers license numbers;

The names and current addresses of at least three personal references,
including one personal reference that was acquainted with the applicant
during each period of residences listed under paragraph (b) of this Section,

Current business and residence telephone numbers;

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

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

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

For each felony for which there is an ongoing prosecution or a conviction,
the charge, the name and address of the court involved, and the date and
dispositionifany;

@

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;

27 Rincon Gaming Ordinance #2011-809


7.08 Quarterly Reports. The Commission shall make quarterly reports to the
Business Committee within 30 days after the close of the quarter for which the
information is being required. The reports shall include a full and complete statement of
all financial transactions of the Commission and a summary of all licensing and
enforcement actions. Such reports may be in the form of minutes of the Commission
meetings supplemented by any additional documents as may be appropriate. Unless
prevented by emergencies or other obligations, the Commission and the Business
Committee shall meet on a quarterly basis for presentation of the quarterly reports.

7.09 Powers. The Commission shall exercise all powers necessary to effectuate the
purposes of the Gaming Ordinance. The Commission may exercise any proper power and
authority necessary or convenient to perform its responsibilities under this Ordinance.
The Commission shall meet not less than once each month to make recommendations and
set policy, to approve or reject reports of the Gaming Operation management, if any, and
transact other business that may be properly brought before it. The ultimate power to
interpret the Compact is specifically reserved by the Business Committee.

7.10 Issuance of Regulations. The Commission shal! from time to time promulgate
and issue Regulations governing any aspect of its or the Commission Staff's
responsibilities under this Ordinance, which, so long as they are in furtherance of and not
in conflict with any provision of this Ordinance, shall have the force of law. In adopting,
amending and repealing Regulations, the Commission shall give prior notice of the
proposed action to the Business Committee, all Licensees and other Persons whom the
Commission has reason to believe have a legitimate interest in such proposed action. Said
notice shall inform such Persons as to the general nature of the proposed action and
advise them as to the manner in which comments on said proposed action shall be
received by the Commission. Notice may be given by posting for at least one week at a
place designated by the Commission within the Gaming Facility office complex. In
emergencies, the Commission may summarily adopt, amend or repeal any Regulation if
at the time, the Commission determines such action is necessary for the immediate
preservation of the public peace, health, safety, morals, good order or general welfare,
together with a statement of facts constituting the emergency; provided, however, that the
Commission shall schedule such emergency action for a regular hearing within 60 days,
provided further, that as soon as is reasonably possible the Commission shall inform the
Business Committee of any such action, and that the Business Committee may veto any
such emergency action. In adopting, amending or repealing Regulations, the Commission
shall provide notice of the proposed action to the general manager(s) of the Band’s
Gaming Operations and to the Chairman of the Business Committee at least 20 days prior
to the Commission meeting at which the Commission is to consider the proposed action.
The_notice_shall_describe_the_general_nature_of_the_proposed_action_and_advise_how.

comments on the proposed action shall be received by the Commission. The Business
Committee may ratify, revise or veto any Regulation.

7.11 Request for Commission Action. Any Person who is determined by the
Commission to be a real party in interest may file a petition in a manner and form
approved by the Commission requesting the adoption, amendment or repeal of a

9 Rincon Gaming Ordinance #2011-809


RINCON BAND OF LUISENO INDIANS
RINCON GAMING ORDINANCE #2011-809
1. PURPOSE

The Rincon Band of Luisefio Indians (“Band”), acting through its Business Committee in
the exercise of its inherent sovereign power to enact ordinances and otherwise safeguard and
provide for the health, safety and welfare of the Band and the members of the Band, hereby
enacts this Ordinance to set the terms and conditions under which Class II and Class III gaming
may be conducted on the Reservation.

2. APPLICABILITY

Unless specifically indicated otherwise, all provisions of this Ordinance shall apply to
both Class II Gaming and Class III Gaming including, but not limited to, all licensing and
background investigation procedures.

3. DEFINITIONS

Unless a different meaning is clearly indicated, the terms used in this Ordinance shall
have the same meaning as defined in the Indian Gaming Regulatory Act, Public Law 100-497,
25 U.S.C. § 2710, et seq. (the “Act”).

3.01 Annual Commission Budget. The budget for the Commission which is
annually approved by the Business Committee.

3.02 Application. An Application is an application for licensure submitted
pursuant to this Ordinance.

3.03. Band. The Rincon Band of Luisefio Indians, a federally recognized Indian
tribe.

3.04 Business Committee. The Rincon Business Committee, the governing body of
the Band.

3.05 Calendar Year. The period beginning January 1 at 12:00:00 a.m. and ending
the immediately following December 31 at 11:59:59 p.m.

3.06 Chairman. The Chairman of the Rincon Gaming Commission.

3.07 — Class I- Gaming Playing of social games of chance solely for prizes of
minimal value or traditional forms of Indian gaming engaged in by individuals as part of
or in connection with Tribal ceremonies or celebrations.

3.08 Class I[ Gaming. Subject to the limitations of (d), below, Class II Gaming
includes the playing or operation of:

Rincon Gaming Ordinance #2011-809


10.

any Person in a calendar quarter. The Gaming Operation shall make this information
available to the Commission upon request.

This registration obligation shall become effective sixty (60) days after the effective date
of this Ordinance or promulgation of the regulation adopting a form of registration form,
whichever is later.

9.25 Waiver of Licensing and Registration for Certain Entertainers. The
Commission has determined that registration and licensing of certain entertainers is not
necessary to protect the public interest, regardless of the value of services provided,
subject to the requirements of this Section. In the event the Tribe or Gaming Operation
contracts directly with an entertainer, the Commission will waive the certification and
licensing requirements for an entertainer, employees of the entertainer, and Persons
providing personal services to the entertainer who are paid by the entertainer so long as:
(A) the entertainer does not perform within the Gaming Facility more than three days in a
calendar year; and (B) the entertainer, employees of the entertainer, and Persons
providing personal services to the entertainer who are paid by the entertainer are not
allowed unescorted access to any secure area of the Gaming Facility. Performances
ending after midnight that are part of a show or series of shows that started the previous
evening will be considered part of the performance from the previous evening, and
performances do not include setting up and tearing down the stage, props, or light and
sound equipment, or warm-ups and sound checks. The Commission may rescind this
waiver if it has a reasonable, good faith belief that the entertainer, employees of the
entertainer, or Persons providing personal services to the entertainer who are paid by the
entertainer would pose a threat to the public interest.

MANAGEMENT CONTRACTS
10.01 Commission Licensing of Management Contractor Required.

(a) Any Management Contract entered into by the Band for the operation and
management of Class II and/or Class II] Gaming Activity must provide
that the parties in interest associated with the Management Contractor
shall submit to a suitability determination by and licensing requirements of
the Commission. The Commission may require and obtain the following
information:

jw The name, address and other additional pertinent background
information on each Person including, in cases involving entities,
each individual, partner, officer, shareholder, and director

comprising such entity having direct financial interest in, or
management responsibility for, such Contract; and in the case of a
corporation, those individuals who serve on the board of directors
of such corporation and each of its stockholders who hold, directly
or indirectly, 10% or more of its issued and outstanding stock; and

24 Rincon Gaming Ordinance #2011-809


practices, methods and activities in the conduct of Gaming or the carrying on of the
business and financial matters incidental thereto.

9.14 Failure of Applicant to Disclose Material Information. An applicant for
licensing shall make true and full disclosure of all information to the Commission as
necessary to carry out the policies of this Ordinance. It shall constitute a violation of the
Gaming Ordinance to fail to disclose, to mislead or to misstate any material information
to the Commission or Commission Staff. It is the duty of the applicant to disclose all
information material to whether his involvement with Gaming would jeopardize or
compromise the Tribal interest, whether or not the applicant has been specifically
requested to provide that information. Any failure to disclose, misstatement, or furnishing
of misleading information shall be grounds for denial, suspension, or revocation of a
license.

9.15 Temporary Gaming License. The Commission may issue a temporary
Gaming license to any Person applying for a license to work in a licensed Gaming
Facility, which shall be valid pending the background investigation of the applicant. In no
event shall a temporary license be valid for greater than 180 days.

9.16 Parameters of Licenses. Violation by a Licensee of any provision of this
Ordinance or of its implementing Regulations, shall be deemed grounds for refusing to
grant or renew a license, suspension or revocation of a license or shall constitute grounds
for the Commission to file charges in Tribal Court. Acceptance of a Gaming license or
renewal thereof, or condition imposed thereof by a Licensee, constitutes an agreement on
the part of the Licensee to be bound by all the Regulations and conditions of the
Commission and by the provisions of this Ordinance as the same are now, or may
hereafter be amended or promulgated, and to cooperate fully with the Commission and its
staff. It is the responsibility of the Licensee to keep informed of the contents of the
Gaming Ordinance and all such Regulations, amendments, provisions and conditions;
ignorance thereof will not excuse violations.

9.17 Initial Licensing. The initial decision to approve, disapprove, revoke,
suspend, limit or condition a license shall be made by the Executive Director.

9.18 Voting on Licensing; Notice Procedures and Review Hearings. Following a
determination by the Executive Director, the applicant or Licensee shall be notified in
writing of the approval, disapproval, limitation, condition, suspension or revocation of a
license by either personal service or certified mail to the last known address provided to
the Executive Director. The Executive Director is not responsible for undeliverable mail.
Should an applicant or Licensee disagree with the determination of the Executive

Director, the applicant or Licensee shall submit a written statement to the Executive
Director within ten (10) days from the date of the postmark on the written notice of
determination. The Executive Director shall hold a hearing to review its decision no less
than twenty (20) days from the date the applicant or Licensee files his/her disagreement
with the Executive Director. The applicant or Licensee shall be notified in writing of the
date time and place for the review hearing. At the hearing, the burden shall be on the

21 Rincon Gaming Ordinance #2011-809


9.09 Issuance of Tribal Gaming Licenses - Objections... ve sessesesterereeees 20
9.10 License & Regulation of Class III Gaming Activities - “Tribal ‘State.

Compact Required ... we seeasseeeesessaseneenessesevenens
9.11 Notification of Change ‘of Principals .
9.12 Application Fee...
9.13 Background Investigation
9.14 Failure of Applicant to Disclose Material Informatio:
9.15 Temporary Gaming License
9.16 Parameters of Licenses .
9.17 Initial Licensing .
9.18 Voting on Licensin;
9.19 Executive Director Findings Following Review Hearin;
9.20 Notification of Executive Director Decision ...
9.21 Right to Appeal; Scope of Review; Timin;
9.22 Ability to Reapply for a License...
9.23 Right to Appeal Civil Fine and Forfeiture Action to"
9.24 Registration of Persons Providing Goods and Services to the Gaming

Operation....
9.25 Waiver of Licensing ‘and Registration for Certain Entertainers

+20
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21

10, MANAGEMENT CONTRACTS .vcsssssssssssssscsssscsesssssssssssssassnnsssessseseceesessansnsnessnseseesssees 24
10.01 Commission Licensing of Management Contractor Require we 24
10.02 Provisions of Management Contracts
10.03 Percentage of Net Revenue Fees.
11. LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT
11.01 Policies and Procedures.
11.02 Application Forms ....
11.03 Application Notice.
11.04 Updated Notice ..
11.05 Background Investigation:
11.06 Eligibility Determination. . sess seeeeene
11.07 Procedures for Forwarding ‘Applications and Reports ‘for Key Employees.
and Primary Management Officials to the National Indian Gaming
Commission. .. 28
11.08 Report to the Nat nal Indian Gaming ‘Commissio .29
11.09 Additional Eligibility Determination Requirement: 29
11.10 Granting a Gaming License. .29
11.11 License Suspension or Revocation. 30
11.12 No Property Interest in Licens 31
11.13 No Assignment or Transfer... 31
12. AUDITING AND INTERNAL CONTROL uo... cseeseseseeeeereereeteeesteerensestentettsesessteneeaee SL

iti Rincon Gaming Ordinance #2011-809


OWNERSHIP OF GAMING OPERATION ......cesssessssssssseeotsesssenseesecsseceveseessnestsstesssesesane 7

TRIBAL GAMING COMMISSION. .....csscssesssessseessesssesesessessesesssesstsssessuesnteanesneeerenneeseeen 7

7.01 — Establishment of Commission ...........cscccsscsssssssscessseeseeeseessesssessssanesesesneesesssesseesseeses 7

7.02 Restrictions on Commissioners 8

7.03 Code of Ethics... 8

7.04 Compensation of Commissioners 8

7.05 Selection of Chairperson.. 8

7.06 Meetings Open to the Public. 8

7.07 Quorum Required... 8

7.08 Quarterly Reports. 9

7.09 Powers........ 9

7.10 Issuance of Regulations 9

7.11 Request for Commission Action. 9

7.12 Duties of the Commission.

7.13 Right of Inspection........

7.14 Powers of Delegation; Budgeting Matters

7.15 Record-Keeping...

7.16 Processing Employee and Patron ‘Complaints.

7.17 Violations of Gaming Ordinance — Civil Infractio:

7.18 Limitations Period...

7.19 Limitation on Gifts and ‘Compensatio

EXECUTIVE DIRECTOR...

8.01 Qualifications of Executive Director; Salary.

8.02 Authority of Executive Director. .

8.03 Files and Records to be Maintained by the Executive Director and the
Commission; Confidentiality of Information..........cseesesseeseseesessersestseeeerseesene 15

9.01 License Requirements

9.02 Nature of Gaming License 17

9.03 Licensing, Regulations and Procedur 17

9.04 Licenses. 1.
9.04.01 Gaming Employee Licensing.

9.05 Facility Licenses

9.06 Additional Licensing Authority............

9.07 Prohibition Against Unlicensed Activities. 19

9.08

Authorization of Class II T Gaming Activity; N Net Revenue Allocati
Audits; Contracts. . seveneeseeseens

ii Rincon Gaming Oni


Regulation. Upon receipt of the petition, the Commission shall within 30 days deny the
request in writing or schedule the matter for action pursuant to this Ordinance and any
rules and Regulations of the Commission.

7.12 Duties of the Commission. The Commission shall perform all duties, exercise
all powers, promulgate all regulations, assume and discharge all responsibilities and carry
out and affect all purposes of the Gaming Ordinance relating to the establishment of all
Gaming Activity and regulation of the Gaming Operation. In all decisions, the
Commission shall act to promote and ensure the integrity, security, honesty and fairness
of the Gaming Operation and administration of all Gaming Activity. The Commission’s
duties and powers shall include, but not be limited to, the following:

(a) Ensuring that all gaming fees for all Gaming Activities and any other fees
assessed by the National Indian Gaming Commission are sent to the
National Indian Gaming Commission on a timely basis;

(b) Corresponding with the National Indian Gaming Commission regarding
compliance with the rules and regulations of that agency. Commission
shall coordinate with the Business Committee regarding correspondence
with the National Indian Gaming Commission on any policy matter;

(c) Assuring that all Gaming Activity is conducted honestly and fairly and
that the Gaming Facility is constructed in a manner that adequately
protects the environment and the public health and safety;

(d) Establishing an adequate system to include fingerprint clearances with the
California Department of Justice and/or with the National Indian Gaming
Commission, which ensures that background investigations are conducted
on all Primary Management Officials and Key Employees of any Gaming
Activity and that oversight of such officials and their management is
conducted on an ongoing basis. The Commission will have final authority
regarding the granting of Tribal licenses for Primary Management
Officials and Key Employees and other persons. The Commission shall
immediately notify the National Indian Gaming Commission of the
issuance of such licenses. The Commission wil! review all Applications
and background investigations to ensure that no Person shall be eligible
for employment in or with any part of the Gaming Operation if that
Person’s prior activities, criminal record or reputation, habits or
associations pose a threat to the public interest or to the effective
regulation of Gaming, or create or enhance the dangers of unsuitable,

unfair or illegal practice, methods and activities in to conduct the Gaming.
The Commission shall notify the National Indian Gaming Commission of
the results of such background checks before the issuance of such licenses;

(e) Reviewing all records, documents and anything else necessary and
pertinent to enforcement of any provisions of this Gaming Ordinance;

10 Rincon Gaming Ordinance #2011-809


20.

21.

22.

23.

24.

25.

26.

27.

19.04 Amendment of Commission Regulations .
19.05 Severability.
19.06 Captions...

CONSENT TO JURISDICTION... csessessessessseesesssesssesstessessessessuesnsesseessesareenesseesneeneees 38

LAW ENFORCEMENT; FINGERPRINTING AND CRIMINAL
BACKGROUND CHECKS.....ccccssssssssesssessesssessscsnsssecsssesssssessreeseesseesersnsesaseanessessiesvesseeasee 38

24.01 Patron Gaming Disputes...
24,02 Patron Rights Regarding Gaming Disputes .
24.03 Commission Action on Patron Gaming Disputes

- 38
39

REPEAL...

v Rincon Gaming Ordinance #2011-809


(b)

©)

The Commission and Executive Director may maintain such other files or
records as they deem desirable.

All information and data:

(i) Included within any Application for license or supporting
materials;

Gi) Required by the Commission or the Executive Director to be
furnished to them under this Ordinance or which may otherwise be
obtained relative to the finances, earnings or revenue of any
applicant or Licensee;

(iii) Pertaining to an applicant’s criminal record, antecedents or
background which have been furnished to or obtained by the
Commission or the Executive Director from any source;

(iv) Provided to the members of the Commission or the Executive
Director or his employees by a governmental agency or an
informant or on the assurances that the information will be held in
confidence and treated as confidential;

(v) Pertaining to the identity of any informant;

(vi) Obtained by the Executive Director or the Commission from a
supplier relating to the manufacturing of gaming devices or
gaming goods;

(vii) The signed Conflict of Interest policies of the Executive Director,
all Commissioners and employees;

are confidential and may be revealed in whole or in part only in the course
of the necessary administration of this Ordinance or upon the lawful order
of a court of competent jurisdiction or at the direction of the Commission
pursuant to its duties and obligations under this Ordinance. Al] records
retained by the Executive Director or the Commission shall be retained for
a period of five (5) years, after which such records may be disposed of in
the discretion of the Commission, Notwithstanding this provision, the
Annual Commission Budget shall be made available to any adult, enrolled
member of the Band upon written request. It is a violation of this

kind or other information relating to the Gaming Operation in a manner
other than provided in this Ordinance, Regulation or Commission policy.

16 Rincon Gaming Ordinance #2011-809

Ordinance-for-aPerson-to-falsify, destroy, erase-oralterany-records-of any


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VG comn’

September 28, 2011

By First Class Mail

Bo Mazzetti, Chairman

Rincon Band of Luiseno Indians
PO Box 68

Valley Center, CA 92028

Re: Approval of Rincon Band of Luiseno Indians revised ordinance
Dear Chairman Mazzetti:

This letter responds to your request for the National Indian Gaming Commission
to review and approve an amended tribal gaming ordinance for the Rincon Band of
Luiseno Indians. Rincon Gaming Ordinance #201 1-809 was approved by Resolution
#2011-42 on August 9, 2011.

This letter constitutes approval of the amended ordinance. The amended
ordinance changes the number of gaming commissioners from three to five. Nothing in
the ordinance conflicts with IGRA’s ordinance requirements as set forth in 25 U.S.C. §
2710 or NIGC’s implementing regulations.

If you have any questions, please fee] free to contact Senior Attorney John Hay at
(202) 632-7003.

Sincerely,

Chairwoman

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.cov

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


24.03 Commission Action on Patron Gaming Disputes. In the event any Patron is
dissatisfied with the response from the manager of the Gaming Operation such Patron
may request a hearing before the Commission. This request must be submitted to the
Commission within seven (7) days of the response from the manager of the Gaming
Operation. The Commission shall notify such Patron and the manager of the Gaming
Operation of the time and place set for the hearing in writing at least five days before any
hearing on the matter. The Commission shall hold a hearing within 20 days of its receipt
of a request for a hearing. The Patron shall be authorized to submit written and oral
evidence in support of his/her claim. The manager of the Gaming Operation or his
designee shall also attend the hearing to respond to the claim(s) made by such Patron.
The decision of the Commission shall be final.

25. AMENDMENTS

All provisions of this Ordinance are subject to amendment by the Business Committee.
All regulations and rules promulgated by the Commission are subject to proper revision, repeal,
or amendment by the Commission. All amendments to this Ordinance shall be effective upon
the date of passage by the Business Committee and approval by the Chairman of the National
Indian Gaming Commission. The Commission shall monitor changes to the Indian Gaming
Regulatory Act and regulations of the National Indian Gaming Commission. The Commission
may make recommendations for changes to this Ordinance to the Business Committee from time
to time to ensure compliance with applicable law.

26. REPEAL

Rincon San Luisefio Band of Mission Indians Tribal Gaming Ordinance #2011-18 and all
amendments thereto are hereby repealed. To the extent that any determinations, rules or
regulations of the Commission concerning gaming are inconsistent with this Ordinance, they are
hereby repealed. Conversely, any determination made or rules or regulations promulgated by the
current or a previous Commission acting under any Rincon San Luisefio Band of Mission Indians
Tribal Gaming Ordinance, which are consistent with this Ordinance are valid and remain in
effect.

27. EFFECTIVE DATE

This Ordinance shall take effect immediately upon its approval by the Chairman of the
National Indian Gaming Commission.

39 Rincon Gaming Ordinance #2011-809


3.14 Gaming or Gaming Activity. The dealing in, operation of, or maintenance of
any game played with: Cards, dice, equipment of any mechanical, electromechanical or
electronic device or machine for money, property, checks, credit or any representative of
value, including, without limiting the generality of the foregoing, Faro, Monte, Roulette,
Keno, Bingo Fan-Tan, Bingo, Twenty-one (Blackjack), Seven-and-a-Half, Klondike,
Craps, Poker, Chuck-a-Luck, Chinese Chuck-a-Luck (Dai-shu), Wheel of Fortune,
Chemin de Far, Baccarat, Pai-Gow, Beat the Banker, Panguingue, Slot Machines, Video
Poker Machines, Pull-tabs, any banking or percentage game, or any other game or device
approved by the Business Committee. The term does not include gaming played in
private homes or residences in which no Person makes or charges money for operating
the game, except as a player, or other functions otherwise sanctioned by the Business
Committee.

3.15 Gaming Equipment or Gaming Device. Any equipment or mechanical,
electromechanical or electronic contrivance, component or machine used remotely or
directly in connection with gaming or any game which affects the result of a wager by
determining win or loss. The term includes a system for processing information that may
alter the normal criteria of random selection, which affects the operation of any game, or
which determines the outcome of a game.

3.16 Gaming Facility. Any premises where Gaming Activities are operated or
conducted, including any structures in which the records of such Gaming Activity are
stored (but excluding offsite facilities primarily dedicated to storage of those records, and
financial institutions, provided that records located offsite shall be provided to the
Commission upon request). The Commission by Regulation shall demarcate the metes
and bounds of the Gaming Facility in a diagram.

3.17 Gaming Operation. The business enterprise that the Band owns and which
conducts Gaming Activity.

3.18 Gaming Resources. Any goods or services provided 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
activities such as playing cards and dice, furniture designed primarily for Gaming
Activities, maintenance or security equipment and services, and gaming consulting
services. "Gaming Resources" does not include professional accounting and legal
services.

3.19 | Gaming Resource Supplier. Any person or entity who directly or indirectly

manufactures, distributes, supplies, vends, leases, or otherwise purveys Gaming
Resources to the Gaming Operation or Gaming Facility, provided that the 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, the compensation received by
the purveyor is not grossly disproportionate to the value of the goods or services

3 Rincon Gaming Ordinance #2011-809


(a) The game of chance commonly known as bingo whether or not electronic,
computer or other technologic aids are used in connection therewith:

(i) Which is played for prizes, including monetary prizes, with cards
bearing numbers or other designations;

(ii) In which the holder of the card covers such numbers or
designations when objects, similarly numbered or designated, are
drawn or electronically determined; and

(iii) In which the game is won by the first person covering a previously
designated arrangement of numbers or designations on such cards,
including if played in the same location: Pull Tabs, Lotto Punch
Boards, Tip Jars, Instant Bingo and other games similar to Bingo.

(b) Card games that are:
(i) Explicitly authorized by laws of the State of California; or
(ii) Are not explicitly prohibited by the laws of the State of California
and are played at any location in the State of California, but only
such card games; and
(c) Other games classified as Class II by the federal government.
(d) The term Class II Gaming does not include:

(i) Any card games banked by the house, including Baccarat, Chemin
de Fer, Blackjack (21); or

(ii) Electronic or electromechanical facsimiles of any game of chance
or slot machines of any kind.

3.09 Class II] Gaming. Class III Gaming includes all forms of gambling that are
not Class I or Class I] Gaming.

3.10 Commission. The Rincon Gaming Commission.

3.11. Commissioner or Commission Member. One of the members of the
Commission.

Re 4 ‘Commission Staff—Commission Staff—includes alt employees of the

Commission, including the Executive Director, and does not include the individual
Commissioners.

3.13 Day. The term “day” includes all days within a month, including weekends
and holidays.

2 Rincon Gaming Ordinance #201 1-809


16.

15.02 Notice and Opportunity to be Heard. The Commission shall promulgate
regulations providing due process to any person whose name the Commission is
considering placing on the Exclusion list.

15.03 Prohibition Against Listed Individuals. It shall be a violation of this
Ordinance for any Licensee to knowingly fail to exclude or eject from a Gaming Facility
any persons placed on the list referred to in 14.01. It shall be a violation of this
Ordinance for any person whose name appears on the list referred to in 14.01 to enter into
or engage in any game at a duly licensed Gaming Facility.

15.04 Ejection of Certain Individuals. It shall be a violation of this Ordinance for
any Licensee to fail to eject from a Gaming Facility any individual who is engaged in
Gaming Activity and:

(a) Is visibly under the influence of alcohol or any narcotic or such other
substance; or

(b) Is under the age of twenty-one (21) years.
UNLAWFUL ACTS

16.01 Additional Unlawful Acts. It shall be a violation of this Ordinance for any
Person to:

(a) Alter or misrepresent the outcome of a game or other event on which
wagers have been made after the outcome is made sure, but before it is
revealed to the players;

(b) Place, increase or decrease a bet, or to determine the course of play, after
acquiring knowledge not available to all players, of the outcome of the
game or knowledge that is the subject of the bet or wager, including past-
posting and pressing bets;

(c) Aid anyone in acquiring such knowledge as set forth in subsection (b)
above, for the purpose of increasing or decreasing a bet or wager, or for
the purpose of determining the course of play contingent upon that event
or outcome;

(d) Claim, collect or attempt to claim or take money or anything of value in or
from an approved game with intent to defraud, without having made a

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

than the amount won;

(e) Knowingly entice or induce another to go to any place where a Gaming
Activity is being conducted or operated in violation of the provisions of
this Section, with the intent that the other person play or participate in that
Gaming Activity;

35 Rincon Gaming Ordinance #2011-809


(e) Adjudication of such appeal by the Commission shall be final and no other
appeal can be made,

9.22 Ability to Reapply for a License. After a review hearing, if an applicant’s or
Licensee’s license has been denied, suspended, or revoked, the applicant or Licensee
shall not be permitted to re-apply for a license for at least one year from the date of the
denial, suspension, or revocation.

9.23 Right to Appeal Civil Fine and Forfeiture Action to Tribal Court.

(a) A Person who has been the subject of a forfeiture action or has been fined
by the Commission shall have a right to appeal the issuance of the fine or
order of seizure of property to the Tribal Court. Appeal must be made to
the Tribal Court in written form on or before the tenth (10) day following
the issuance of the fine or forfeiture action.

(b) Review by the Tribal Court shall be limited to the record of the
proceedings.

(c) | The Commission’s issuance of a fine or seizure and forfeiture of property
shall be affirmed unless the Tribal Court determines that the decision is:

(1) Ultra vires;

(2) Arbitrary, capricious or an abuse of discretion;
(3) Contrary to law; or

(4) Unsupported by substantial evidence.

9.24 Registration of Persons Providing Goods and Services to the Gaming
Operation. All Persons providing $50,000 or more in goods or services to the Gaming
Operation in a calendar quarter shall register with the Commission. Registration shall be
accomplished by completing and submitting the registration form provided by the
Commission. Registration forms must be submitted to the Commission within ten (10)
days of such Person providing $50,000 or more in goods or services to the Gaming
Operation in a calendar quarter. The Commission shall promulgate a regulation adopting
a form of registration form within 90 days of approval of this Ordinance. The Gaming
Operation shall notify Persons providing goods or services to the Gaming Operation that
they may be obligated to complete the registration form. It is the responsibility of the
Person providing goods or services of $50,000 or more to_the Gaming _Operation_in_a.

calendar quarter to complete the registration form, and it is their responsibility to update
the registration form in the event of any change in information.

To facilitate compliance with this Section, the Gaming Operation shall establish a
tracking system to monitor the purchase of goods and services of $50,000 or more from

23 Rincon Gaming Ordinance #201 1-809


CERTIFICATION

We, the undersigned, as the governing body of the Rincon Band of Luisefio Mission Indians of

the Rincon Reservation, California, do hereby certify that the foregoing Rincon Gaming

Ordinance #2011-809 was adopted by the Rincon Band of Luisefio Indians on August 9, 2011

and certify that the Rincon Business Committee is composed of five (5) members of whom

constituting a quorum were present at a meeting duly held on August 9, 2011 by a vote of
in favor, O against, O absent, and © abstaining.

Abdus SG

Bo M&zZetti, Chairman

Males KE Ek.

Charles Kolb, Council Member

Open Seat, Council Member

40 Rincon Gaming Ordinance #2011-809


applicant or Licensee to show cause why the Executive Director’s determination was
incorrect.

9.19 Executive Director Findings Following Review Hearing. Following such
review hearing, the Executive Director shall within ten (10) days issue a final
determination concerning:

(a) The accuracy of any preliminary certifications of facts; and

(b) | Whether the license in question should be denied, granted, continued,
suspended, revoked, conditioned or limited; and

(c) Whether any other action including, but not limited to, forfeitures, should
be taken.

9.20 Notification of Executive Director Decision. Within five (5) working days
following a final determination, the Executive Director shall inform the applicant or
Licensee in writing of that final determination. Written notification may be delivered to
the subject in person, by fax, or by mailing to the subject’s last known address. If not
appealed, such determination shall be the final decision of the Commission.

9.21 Right to Appeal; Scope of Review; Timing.

(a) The applicant or Licensee shall have a right to appeal the final
determination of the Executive Director, other than a civil fine or
forfeiture action, to the Commission. Appeal must be made to the
Commission in written form on or before the tenth 10") day following
receipt of the written determination of the Executive Director.

(b) = Review by the Commission shall be limited to the record of the
proceedings.

(c) The decision of the Executive Director shall be affirmed unless the
Commission determines that the decision is:

qd) Ultra vires;
(2) Arbitrary, capricious or an abuse of discretion;

() Contrary to law; or

(4 Unsupported by substantial evidence.

(d) Such appeals shall be heard within 90 days of the filing of the Notice of
Appeal.

22 Rincon Gaming Ordinance #2011-809


12.01 Minimum Procedure for Control of Internal Fiscal Affairs
12.02 Minimum Internal Control Standards...
12.03 Commission’s Right to Conduct Audits

12.04 Prohibition Against Embezzlement... cceecsseeecteseeceesneseeseeesseeseenesseseseeaees
13.01 Requirement of Annual Audit..
13.02 Contracts Included in Scope of Audit.
14, REVIEW AND APPROVAL OF GAMING... cccsssssessssssssessessessevesseeeseseenseassneeteneetes BD
14.01 Prohibition Against Gaming
14.02 Grace Period...
14.03 Authorization of Gamin;
14.04 Approval of Gaming Equipment.
14.05 Maintenance of Rules
14.06 Gaming Rules and Procedures.
15. EXCLUSION OR EJECTION OF INDIVIDUALS. ......csscssssssssessssssssesssenssecseseneenees D4
15.01 Exclusion List .. tee sutesssessesesassusesessesesseesesssavssteseesessessees OA
15.02 Notice and Opportunity to be ‘Hear + 35
15.03 Prohibition Against Listed Individual: 35
15.04 Ejection of Certain Individuals.......... 35
16.01 Additional Unlawful Acts 35
16.02 Prohibition Against Electronic Aid: 36
17. NATIONAL INDIAN GAMING COMMISSION & TRIBAL-STATE
COMPACT 36
17.01 National Indian Gaming Commission - Regulations . 36
17.02 National Indian Gaming Commission - Assessment . 36
17.03 Compact with the State of California. 36
18, PROTECTION OF THE ENVIRONMENT AND PUBLIC HEALTH AND
19.01 Security... 37

19.02 Maintenance of Ordinance ‘and Regulations
19.03 Compliance with Other Laws...

37
37

iv Rincon Gaming Ordinance #2011-809


persons determine that such action is necessary to preserve the same for Tribal Law
Enforcement Officers or other law enforcement officials.

The Band intends that the general manager of the Gaming Operation and the head of
security for the Gaming Operation (as designated by the general manager) shall be the
primary persons who may detain persons and seize evidence within the Gaming Facility.
The Executive Director and the Commission’s compliance manager may take such action
within the Gaming Facility if the general manager or head of security for the Gaming
Operation are not available or in the event no action is taken and the Executive Director
or the Commission’s compliance manager determine it is necessary to take action. The
Executive Director and the Commission’s compliance manager shall be the primary
persons who shall detain persons and seize evidence outside of the Gaming Facility.
Detention and seizure actions taken by the Executive Director or Commission
compliance manager shall be completed in coordination with Tribal Law Enforcement
and pursuant to a Regulation adopted pursuant to Section 7.10 of this Ordinance.

Such detention shall be for a temporary period and for the sole purpose of identifying
such Persons, and for purposes of notifying and summoning appropriate law enforcement
authorities and detaining such persons as long as is necessary to transfer them to the
appropriate law enforcement officers. Detention of such persons shall not unduly
interfere with the business of the Gaming Operation. Persons shall be transferred to
appropriate law enforcement officers as soon as reasonably possible. Any area within
which a Person is detained pursuant to this Ordinance shall be equipped with both video
and audio recording capabilities. Any Person detained in such an area shall be kept under
both video and audio observation during such temporary detention.

Violations of this Ordinance may result in: Persons being prohibited from being present
within the Gaming Facility; license suspensions, revocations or limitations; and,
establishments being closed through the issuance by the Commission of a cease and
desist order. All such action shall be taken at the discretion of the Commission, subject
to the right to appeal the civil fine or forfeiture of property to the Tribal Court. A violator
of this Ordinance may also be required to pay court costs, storage fees and auction or
sales fees.

7.18 Limitations Period. No fine shall be assessed, nor any action taken for any
violation of this Ordinance unless a notice of such action is filed with the Commission or
the Tribal Court within two (2) years of the infraction.

7.19 Limitation on Gifts and Compensation. Commissioners, Commission staff,
and their immediate families shall receive no personal compensation, gift, reimbursement

or payment of any kind from any Person doing or wishing to do business with the Band
relating to Gaming, nor with any Person wishing to obtain an unfair advantage in any
authorized wager on Gaming, except as may be authorized in a duly adopted Code of
Ethics. Any Person suspected of violating this provision may be prosecuted to the fullest
extent possible under Tribal Law for accepting a bribe, and any property received in
violation of this provision shall be forfeited to the Band. Payments made pursuant to the

13 Rincon Gaming Ordinance #2011-809


(b)

()

Employee or Primary Management Official or for whom the Commission
has provided an application and investigative report to the National Indian
Gaming Commission pursuant to Section 11.08, the Commission may
issue a license to such applicant.

The Commission, through the Executive Director, 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 thirty (30) day period under this Section until the Chairman of
the National Indian Gaming Commission receives the additional
information.

If, within the thirty (30) day period described above, the National Indian
Gaming Commission provides the Commission with a statement itemizing
it’s objection(s) to the issuance of a license to a Key Employee or a
Primary Management Official for whom the Commission has provided an
Application and investigative report to the National Indian Gaming
Commission, the Commission shall reconsider the Application, taking into
account the objection(s) itemized by the National Indian Gaming
Commission. The Commission shall make the final decision whether to
issue a license to such applicant.

11.11 License Suspension or Revocation.

(a)

(b)

If, after issuance of a gaming license, the Commission receives reliable
information from the NIGC or other reliable source indicating that a Key
Employee, Primary Management Official or other Licensee is not eligible
for licensure under the eligibility criteria established herein, the Executive
Director shall suspend the license and shall notify the Licensee in writing
of the license suspension and proposed revocation.

An applicant or Licensee shall be notified in writing by either personal
service, or certified mail to the last known address provided to the
Commission. Notice shall be deemed complete on the tenth day after
deposit of notice in the U.S. Mail. Should an applicant or Licensee
disagree with the initial determination of the Executive Director, the
applicant or Licensee shall submit a written statement and a separate
request for hearing to the Commission within ten (10) days of the written
notice.

(©)

Summary Suspension. The Executive Director may summarily suspend
any license if continued licensing of a Person constitutes an immediate
threat to the public health, safety or welfare. A Licensee may appeal such
suspension in the manner provided in Section 9.21.

30 Rincon Gaming Ordinance #201 1-809


12.

(d) After a hearing, the Commission shall decide to revoke or reinstate a
gaming license and shall notify the National Indian Gaming Commission
of such decision.

11.12 No Property Interest in License. Nothing herein shall create a property
interest in the issuance or retention of a license provided for this Ordinance. Failure of an
employee or Primary Management Official to obtain or maintain a gaming license shall
be grounds for immediate license revocation.

11.13 No Assignment or Transfer. No license issued under this Ordinance shall be
assigned or transferred without the written approval of the Commission expressed
formally in writing.

AUDITING AND INTERNAL CONTROL

12.01 Minimum Procedure for Control of Internal Fiscal Affairs. The
Commission shall promulgate regulations for the control of internal fiscal affairs of the
Gaming Operation. At a minimum, those regulations shall require:

(a) Minimum procedures for safeguarding the Gaming Operation’s assets and
revenues, including recording of cash, evidence of indebtedness and
mandatory count procedures. Such procedures shall establish a control
environment, accounting system and control procedures that safeguard the
assets of the organization, assure that operation transactions are properly
recorded, promote operational efficiency and encourage adherence to
prescribed policies;

(b) Minimum requirements for reports from the Gaming Operation to the
Commission of information that is required by this Ordinance or
Regulation;

(c) The conducting, adoption, reporting and use of audits by internal auditors
who are employees of the Commission;

(d) The formation of a uniform code of accounts and accounting
classifications to assure consistency, comparability and effective
disclosure of financial information. Such code shall require that records be
maintained that reflect statistical drop (amount of cash wagered by
Patrons), statistical win (amount of cash won by the Gaming Activity) and
the percentage of statistical win to statistical drop, or provide similar

information-for-each-type-of game-or Gaming-Device:
(e) The maintenance of documentation (i.e., checklists, programs, reports) to

evidence all internal work performed as it relates to the requirements of
this Section; and

31 Rincon Gaming Ordinance #201 1-809


9.06 Additional Licensing Authority. The Commission may require additional
licenses for Persons, entities and facilities that the Commission determines are necessary
to ensure the integrity of Gaming Activities, eliminate a threat to the public interest, and
protect the assets of the Band, including individuals and entities that provide goods and
services to the Gaming Operation. The circumstances under which such additional
licenses shall be required shall be set forth by the Commission in one or more
Regulations.

9.07 Prohibition Against Unlicensed Activities. Engaging in any unlicensed
activity for which a license is required pursuant to this Ordinance and its implementing
Regulations without obtaining the required license constitutes a violation of this
Ordinance, and any Person who engages in such activity without a license shall be
subject to enforcement actions and penalties set forth in this Ordinance.

9.08 Authorization of Class II Gaming Activity; Net Revenue Allocation;
Audits; Contracts.

(a) A separate license issued by the Commission shall be required for each
Gaming Facility located on the Reservation at which any Class II Gaming
Activity is conducted.

(b) The Commission may regulate a Tribally-Owned Class II Gaming
Activity if:

(i) Such Gaming Activity is located on the Reservation and the State
of California permits such Gaming for any purpose by any Person,
organization or entity and such Gaming is not otherwise
specifically prohibited on Indian lands by federal laws; and

(ii) | The Band will have the sole propriety interest and responsibility
for the conduct of such Gaming Activity; and

(iii) | Net Revenue from such Gaming Activity is used in accordance
with this Ordinance, other applicable Band law and federal law;
and

(iv) Such Gaming Activity is subject to annual outside audits, which
may be encompassed within existing independent Tribal audit
systems and provided to the Business Committee; and

). All-contracts_for-supplies,services-orconcessions-foran-aggregate—

amount in excess of $25,000 annually relating to such Gaming
Activity are also subject to independent audits; and

(vi) The construction and maintenance of the Gaming Facility and the
operation of that Facility is conducted in a manner which

19 Rincon Gaming Ordinance #2011-809


RINCON BAND OF LUISENO INDIANS
RINCON GAMING ORDINANCE #2011-809

August 9, 2011


20. SOVEREIGN IMMUNITY

Except as provided herein, nothing in this Ordinance shall be construed as a waiver of the
sovereign immunity of the Band or any of its officers, employees, or entities.

21. CONSENT TO JURISDICTION

Any person who applies for a License under this Ordinance, applies for employment in
any Gaming Operation, enters into any contract or agreement with the Gaming Operation, or
participates in any Gaming Activity on the Reservation, shall be deemed to consent to the civil
jurisdiction of the Band, the Commission and the Tribal Court. Nothing in this Section shall
limit the jurisdiction of the Band, the Commission or the Tribal Court under any circumstances
not explicitly contemplated in this Ordinance.

22, LAW ENFORCEMENT; FINGERPRINTING AND CRIMINAL BACKGROUND
CHECKS

Each applicant for a Key Employee or Primary Management Official shall be required to
have fingerprints taken as part of the license application procedure, Fingerprints shall be taken
by the Commission. Fingerprints will then be forwarded to the NIGC for processing through the
FBI and NCIC to determine the applicant’s criminal history, if any. Nothing herein shall
prohibit the Commission from accessing CLETS as provided by the Compact.

23. AGENT FOR SERVICE

The Chairperson of the Business Committee is hereby appointed as the agent for service
of process. The Chairperson’s address is 1 West Tribal Road, Valley Center, California 92082.

24. PATRON DISPUTES

24.01 Patron Gaming Disputes. Any Patron who has any dispute, disagreement or
other grievance (herein “gaming dispute”) with the Gaming Operation that involves the
play of any Class II or Class If game shall have their dispute resolved as provided in
Sections 24.02 and 24.03. The manager of the Gaming Operation shall provide notice to
any Patron of the Gaming Operation of this dispute resolution procedure. In addition, the
manager shall also make forms for filing a claim available to Patrons of the Gaming
Operation.

24.02 Patron Rights Regarding Gaming Disputes. Any Patron with a gaming
dispute shall file a written statement of the facts or circumstances of the gaming dispute
with the manager of the Gaming Operation within five (5) days of the dispute. The

manager of the Gaming Operation shall have five (5) days to prepare its written response
to the Patron. If a Patron is unable to resolve his dispute with the Gaming Operation, the
Patron has the right to contact the Commission to resolve the issue. The manager shall
provide copies of the Patron’s statement and management’s response to the Commission.

38 Rincon Gaming Ordinance #2011-809


(63) To reduce the amount wagered or cancel the bet after acquiring knowledge
of the outcome of the game or other event which is the subject of the bet
or wager, including pinching bets;

(g) To manipulate, with intent to cheat, any component of Gaming Equipment
in a manner contrary to the designed and normal operational purpose for
the component, with knowledge that the manipulation affects or may
affect the outcome of the game or with knowledge of any event that
affects the outcome of the game;

(h) To defraud the Band, or any Person in any Gaming Activity;

@) To offer or attempt to offer anything of value to a Licensee in an attempt
to induce the Licensee to act or refrain from acting in a manner contrary to
the duties of the Licensee under applicable law;

(j) To take any action which interferes with or prevents the Commission or
the Business Committee from fulfilling its duties and responsibilities
under this Ordinance or other applicable law or regulation.

16.02 Prohibition Against Electronic Aids. Except as specifically permitted by the
Commission, it shall be a violation of this Ordinance for any person to possess with the
intent to use, or actually use, at any table game, either by himself, or in concert with
others, any calculator, computer or other electronic, electrical or mechanical device to
assist in projecting an outcome at the table game, to keep track or analyze the cards
having been dealt, or to change the probabilities of the game or the playing strategies to
be utilized.

17. NATIONAL INDIAN GAMING COMMISSION & TRIBAL-STATE COMPACT

17.01 National Indian Gaming Commission - Regulations. Notwithstanding any
provision in this Ordinance or any regulation promulgated thereunder, the Commission is
fully empowered to comply with all applicable regulations promulgated by the National
Indian Gaming Commission, including but not limited to all requirements to report
ordinances, contracts, license applications, background checks and other information to
the National Indian Gaming Commission.

17.02 National Indian Gaming Commission - Assessment. Notwithstanding any
provision in this Ordinance or any Regulation, the Commission is fully empowered to
comply with all assessments authorized by the National Indian Gaming Commission.

__Such-assessments-shal L-be-paid-by-the-Band-

17.03 Compact with the State of California. Notwithstanding any provision in this
Ordinance or any Regulation, the Commission is fully empowered to enforce the
provisions of any Compact properly executed between the Band and the State of
California; provided, however, that if any provision of a Compact provides for action by

36 Rincon Gaming Ordinance #201 1-809


63) Each of the beneficiaries or trustees of a trust.

3.29 Regulations. The regulations of the Commission promulgated under or in
furtherance of this Ordinance.

3.30 Reservation. Any land meeting the definition of “Indian lands” as defined in
the IGRA.

3.31. Tribal-State Compact or Compact. A written document, either negotiated
and agreed to by the Band and an official or agency of the State of California or
prescribed by the Secretary pursuant to 25 U.S.C. § 2710(d)(7)(B)(vii), governing the
conduct of Class III Gaming Activity on the Reservation.

3.32. Words and Terms. In construing the provisions of this Ordinance, except
when otherwise plainly declared or clearly apparent from the context:

(a) Words in the present tense shall include the future tense;

(b) Words in the masculine, feminine and neuter genders shall include all
genders; and

(c) Words in the singular shall include the plural, and in the plural shall
include the singular.

GAMING AUTHORIZED

4.01 Class II gaming as defined in the Indian Gaming Regulatory Act, P.L. 100447,
25 U.S.C. § 2703 (7) (A) (IGRA”) and to the extent such regulations are lawful, by the
regulations promulgated by the National Indian Gaming Commission at 25 C.F.R. §
502.3 (as published in the Federal Register at 57 FR 12382-12393, April 9, 1992) is
hereby authorized provided such gaming is consistent with this Ordinance.

4.02 Class II gaming as defined in the Indian Gaming Regulatory Act and to the
extent such regulations are lawful, by the regulations promulgated by the National Indian
Gaming Commission at 25 C.F.R. § 502.4 is hereby authorized, provided such gaming is
also authorized by and consistent with this Ordinance and a Tribal-State Compact that
has been approved by the Secretary of the Interior and is in effect, or otherwise has been
authorized by the Secretary of the Interior or federal law.

4.03 All Class II and Class III gaming activities must first be authorized by this
Section and approved by the Business Committee before such Gaming Activity lawfully

can occur on the Reservation.

4.04 Unauthorized or Unapproved Gaming. No person shall conduct any Gaming
Activity within the Reservation without the authority of the Band. Any Indian who
commits any act of unauthorized or unapproved Gaming within the Reservation shall be
guilty of a civil infraction and may be prosecuted in the Tribal Court of the Band.

6 Rincon Gaming Ondinance #2011-809


(c) Members of the Commission must satisfy the suitability standards set forth
for Key Employees in this Ordinance. Members of the Commission may
not participate in matters relating to their background investigation. Such
background investigations shall be performed under the direction of the
Business Committee or its designee.

7.02 Restrictions on Commissioners. Commissioners may hold other Tribal
positions and engage in business; provided, however, that Commissioners shall not
engage in any business that is subject to the provisions of this Ordinance.
Commissioners may not gamble in the Gaming Facility nor have any personal financial
interest in any gambling by any Person. No member of the Business Committee shall
serve as a member of the Commission during that person’s term on the Business
Committee. A Commissioner shall immediately resign from the Commission upon the
Commissioner’s conviction in a Federal, State Court, or other court of competent
jurisdiction for any felony or for any misdemeanor or civil infraction related to illegal
gambling or bribery or of any charge that the Business Committee finds relates to the
Commissioner’s honesty or ability to fulfill his duties. If a Commissioner is found by a
court of competent jurisdiction to have violated any part of this Ordinance, he shall
immediately resign from the Commission.

7.03 Code of Ethics. The Commission may adopt and revise from time to time a
Code of Ethics regulating the conduct of each Commissioner and the Commission Staff.
Such Code of Ethics may only be adopted pursuant to Commission Regulation.

7.04 Compensation of Commissioners. Commissioners shall be compensated at
the rate to be established annually by the Business Committee. Commissioners shall be
reimbursed for actual expenses incurred on Commission business, including necessary
travel expenses.

7.05 Selection of Chairperson. The Chairperson of the Commission shall be
appointed by the Business Committee.

7.06 Meetings Open to the Public. General meetings of the Commission may be
open to the public. Closed sessions may be held for good cause, including, but not limited
to, protecting the privacy of Persons, considering personnel matters, considering
licensing determinations, reviewing background investigations, hearing complaints
against individuals, and considering whether to include Persons on the list of excluded
individuals. All meetings shall be governed by Roberts Rules of Order or such other
procedures as the Commission may adopt. Nothing herein shall preclude a vote from
being taken by the Commission by telephone poll in an emergency when circumstances

do not allow a meeting of the full board in one location in a timely manner.

7.07 Quorum Required. A quorum shall consist of three (3) members of the
Commission. A quorum shall be required for any vote or decision by the Commission.
All decisions shall be made by a majority vote of those present, unless indicated
otherwise in this Ordinance.

8 Rincon Gaming Ordinance #201 1-809


RESOLUTION NO, 2011-42
Page 2 of 2

CERTIFICATION

We, the undersigned, as the governing body of the Rincon Band of Luisefio Mission Indians of the
Rincon Reservation, California, do hereby certify that the Rincon Business Committee is composed

of five (5) members, of whom constituting a quorum were present, at a meeting duly held
on August 9, 2011, by a vote of _ +f _ for, © _ opposed, © absent and ©
abstaining.

Bo Mazzétti, Chairman
——-$ f fe Spencer, Vice Chairwoman Charlie Kolb, Council Member ~

Open Seat, Council Member



within 60 days after an employee begins work or within 60 days of the
approval of this Ordinance by the Chairman of the National Indian
Gaming Commission.

(c) | The Gaming Operation shall not employ as a Key Employee or Primary
Management Official a person who does not have a license before 90 days
after commencement of employment.

11.08 Report to the National Indian Gaming Commission. The Executive Director
shall prepare and forward to the National Indian Gaming Commission an investigative
report on each background investigation prepared pursuant to Section 11.05 of this
Ordinance. An investigative report shall include all of the following:

(a) Steps taken in conducting the background investigation;
(b) Results obtained;

(c) Conclusions reached;

(d) The bases for those conclusions.

11.09 Additional Eligibility Determination Requirements. The Executive
Director shall submit to the National Indian Gaming Commission, with the report, a copy
of the eligibility determination made pursuant to this Ordinance.

(a) Ifa license is not issued to an applicant, the Commission:
(i) Shall notify the National Indian Gaming Commission; and

(ii) 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
Record System.

(b) With respect to Key Employees and Primary Management Officials, the
Executive Director and Commission 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 or denial of employment.

11.10 Granting a Gaming License.

(a) If, within a thirty (30) day period after the National Indian Gaming
Commission receives a report, the National Indian Gaming Commission.
fails to respond or notifies the Commission that it has no objection to the
issuance of a license pursuant to a license Application filed by a Key

29 Rincon Gaming Ordinance #2011-809


LICENSING

9.01 License Requirements. Any Person seeking to conduct, operate or manage
any Gaming Activity on the Reservation shall apply for and receive all the required
licenses from the Commission prior to engaging in such Gaming Activities. All Gaming
Resource Suppliers who directly or indirectly, provide, have provided, or are deemed
likely to provide at least twenty-five thousand dollars ($25,000) in Gaming Resources in
any 12- month period, shall apply for and receive all the required licenses from the
Commission prior to providing Gaming Resources. All Gaming Employees shall apply
for and receive all the required licenses from the Commission prior to employment. Any
person seeking to conduct, operate, or manage Gaming Activities without first obtaining
the required licenses shall be deemed in violation of this Ordinance and shall be subject
to fines and penalties as set forth herein. Nothing in this Section shall prohibit a Person
from being temporarily employed in a Gaming Activity or as a Gaming Employee after
being hired for a short period of time, not to exceed thirty days, pending the grant of a
temporary license in conformance with background investigation and licensing
procedures adopted by the Commission.

9.02 Nature of Gaming License. A Tribal Gaming License is a revocable
privilege, and the issuance of a license shall not create any vested right. A Tribal Gaming
License is personal to the Licensee or specific to the Gaming Facility, and may not be re-
assigned or transferred.

9.03 Licensing, Regulations and Procedures. The Tribal Gaming Commission
shall promulgate licensing regulations governing the issuance, renewal, denial,
suspension and revocation of licenses.

9.04 Licenses. The Commission shall require licenses for all persons, entities, and
facilities for which a Tribal Gaming License is required under IGRA and the Compact,
including:

(a) Class IE and Class II Gaming Facilities;
(b) Key Employees;

(©) Primary Management Officials;

(d) | Gaming Employees; and

(e) Gaming Resource Suppliers.

9.04.01 Gaming Employee Licensing.
(a) | Every Gaming Employee shall obtain, and thereafter maintain

current, a valid Tribal gaming license, which shall be subject
to biennial renewal; provided those persons may be employed

17 Rincon Gaming Ordinance #2011-809


Rincon Band of Luisefio Indians

PO Box 68 + Valley Center * CA 92082 + (760) 749-1051 + Fax: (760) 749-8901

RINCON BAND OF LUISENO MISSION INDIANS
OF THE RINCON RESERVATION, CALIFORNIA

RESOLUTION NO. 2011-42 1b ay

A RESOLUTION APPROVING AND ADOPTING THE
RINCON GAMING ORDINANCE #2011-809

WHEREAS, the Rincon Band of Luisefio Mission Indians of the Rincon Reservation, California
(‘Rincon Band”) is a federally recognized Indian tribe organized pursuant to the Articles of
Association adopted February 14, 1960 and approved by the Commissioner of Indian Affairs on
March 15, 1960; and

WHEREAS, the Rincon Business Committee (“Tribal Council”) is the duly elected governing
body of the Rincon Band, empowered pursuant to the Articles of Association to represent the
Rincon Band and act in all matters that concern the general welfare of the Band; and

WHEREAS, Tribal Council previously adopted the Rincon Band of Luisefio Indians Tribal
Gaming Ordinance 2011-224 pursuant to Resolution 2011-18 to govern gaming activities taking
place on the lands of the Rincon Band; and

WHEREAS, Tribal Council desires to make changes to the Rincon Gaming Ordinance
#201 1-224 with regard to the number of Gaming Commissioners and, as a result, wishes to adopt
a new Rincon Gaming Ordinance which shall supersede Gaming Ordinance #2011-224, and all
amendments thereto; and

WHEREAS, Tribal Council has reviewed the Rincon Gaming Ordinance #2011-809, attached as
Exhibit A, and desires that it shall become effective upon approval by the Chairman of the
National Indian Gaming Commission.

IT IS HEREBY RESOLVED, Tribal Council repeals the Rincon Gaming Ordinance
#2011-224, such repeal being effective upon Gaming Ordinance #201 1-809 becoming effective;
and

__BE_ITF_ FURTHER _RESOLVED,fribal_Couneil_adepts—and—approves—Rincon Gaming ———_—
Ordinance #201 1-809, attached hereto as Exhibit A; and

BE IT FURTHER RESOLVED, Tribal Council hereby directs the Chairman to take steps to
submit the Rincon Gaming Ordinance #2011-809, attached as Exhibit A, to the Chairman of the
National Indian Gaming Commission for review and approval, and to take all such action that is
necessary to make the Rincon Gaming Ordinance #2011-809, attached as Exhibit A, effective in
accordance with federal law.

Bo Mazzetti Stephanie Spencer Charlie Kolb Steve Stallings Open Seat

Tribal Chairman, Vice Chairwoman Council Member Council Member Councif Member


(b)

(©)

(ii) | A complete financial statement of each Person listed pursuant to
subsection (i) above.

Any Person listed pursuant to subsection (a)(i) above shall be required to
respond to such written or oral questions that the Commission may
propound in accordance with its responsibilities under this Ordinance.

The Commission may require management contractors and potential
management contractors to pay a fee as set from time to time to cover the
cost of the investigation necessary to reach a suitability determination as
required by this Ordinance.

10.02 Provisions of Management Contracts. Any Management contract entered
into by the Band may include the following provisions:

(a)

(b)

1)

@

©)

®

(g)

That accounting procedures are maintained and verifiable financial reports
are prepared, by or for the Business Committee, on a monthly basis;

For access to the daily operations of the Gaming Facility to appropriate
Tribal officials and their accountants and assistants, who shall also have a
right to verify the daily gross revenues of the Gaming Operation and
income made from any Gaming Activity or other activities managed
pursuant to the Management Contract;

For a minimum guaranteed payment to the Band that has preference over
the retirement of development and construction costs;

For an agreed ceiling for the repayment of development and construction
costs;

For a Contract term not to exceed five (5) years, except that, upon the
request of the Band, a Contact term that exceeds five (5) years but does
not exceed seven (7) years;

For grounds and mechanisms for terminating such Management Contract;
and

That preference will be given to Tribal members and non-member Indians
in hiring of employees for the Gaming Activity.

10.03 Percentage of Net Revenue Fees. A Management Contract providing for a fee

based upon a percentage of the Net Revenues of a Gaming Operation shall not exceed
30% of the Net Revenue unless the Business Committee is satisfied that the capital
investment required, and the income projections for such Tribal Gaming Operation,
justify an additional fee - in no event to exceed 40% of Net Revenue.

25 Rincon Gaming Ordinance #2011-809


14.03 Authorization of Gaming. The Commission shall approve rules and
procedures governing all authorized games, including rules governing Gaming
Equipment, including without limitation chips, dice, cards and tiles. Any provision in a
Compact with the State of California providing for notice to and comment from the State
shall be complied with before the Commission authorizes any game.

14.04 Approval of Gaming Equipment. The Commission shall have the discretion
to review, and to reject or approve, all Gaming Equipment and other devices used in the
Gaming Activity as to quality, design, integrity, fairness, honesty and suitability.

(a) The Commission may require a prototype or sample of any model of
Gaming Equipment or other device used in the Gaming Activity to be
placed in the custody of the Commission and retained by it as a control for
comparison purposes.

(b) Any evidence that Gaming Equipment or other devices used in the
Gaming Facility have been tampered with or altered in any way, which
would affect the integrity, fairness, honesty or suitability of the equipment
or device, shall be immediately reported to the Commission.

14.05 Maintenance of Rules. The rules of each game offered at any duly licensed
Gaming Facility shall be maintained in a location at the Gaming Facility and shall be
clearly legible and available for public inspection upon request.

14.06 Gaming Rules and Procedures. The management of a Gaming Facility may
adopt rules and procedures governing the operations of all Gaming Activity with the
approval of the Commission. Such rules and procedures shall be complied with until such
time as modified with the approval of the Commission. Management may adopt
emergency changes to such rules and procedures if necessary to preserve the assets of the
Band and the integrity of the Gaming Activity, however such changes shall be in writing
and must be presented to the Commission Staff immediately and to the Commission
within 24 hours, or the next day that the Commission offices are open for business,
whichever is sooner, for approval or rejection.

15. EXCLUSION OR EJECTION OF INDIVIDUALS

15.01 Exclusion List. The Commission shall provide for the establishment of a list
of persons who are to be excluded or ejected from any duly licensed’Gaming Facility.
The list shall include any person whose presence in the Gaming Facility is determined by
the Commission to pose a threat to the integrity of Gaming Operation, a threat to the
health safetyor-welfareof employees or patrons, interests of the Band, or State of
California. Race, religious creed, color, national origin, ancestry, physical or mental
disability, medical condition, marital status, sex, age, or sexual orientation must not be
grounds for placing the name of a person on the list.

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adequately protects the environment and the public health and
safety; and

(vii) All Primary Management Officials and Key Employees of the
Class II Gaming Activity have successfully passed a background
investigation, which is approved, by the Commission or are in the
process of being licensed in conformance with the procedures
adopted by the Commission.

9.09 Issuance of Tribal Gaming Licenses - Objections. The Commission may
consult with appropriate law enforcement officials concerning any Gaming licenses it
may issue. If, after issuance of a Gaming license by the Commission, reliable information
is received that a Licensee does not meet eligibility criteria set forth herein, the Executive
Director shall suspend such license and, after notice and hearing, the Executive Director
may revoke such license.

9.10 License & Regulation of Class II Gaming Activities - Tribal-State
Compact Required. The Commission may license and regulate Class II] Gaming
Activity if:

(a) Such Gaming meets the requirements of Section 4 of this Ordinance; and

(b) Such Gaming is conducted in conformance with the terms and conditions
of a valid Compact entered into by the Band and the State of California
that is approved by the Secretary of the Interior and is in effect, or
otherwise has been authorized by the Secretary of the Interior or federal
law.

9.11 Notification of Change of Principals. After an entity is licensed pursuant to
this Ordinance, it shall file a report of each change of its Principals with the Executive
Director. The Executive Director may, at his discretion, request that a new Principal file
with the Commission a complete Application within thirty (30) days after appointment or
election. The entity’s license shall remain valid unless the Executive Director
disapproves the change or denies the Application.

9.12 Application Fee. The Commission may set a fee for Applications,
background investigations and licenses. All money orders or checks for such fees shall
be made payable to the Band and delivered to the Band’s accounting office. Nothing
herein shall prohibit the Commission from collecting fees for Applications, background
investigations and licenses through payroll deduction.

9.13 Background Investigation. No license shall be granted to any Person who
has been determined to be a Person whose prior activities, criminal record or reputation,
habits and associations pose a threat to the public interest or to the effective regulation
and control of Gaming, or create or enhance the dangers of unsuitable, unfair or illegal

20 Rincon Gaming Ordinance #2011-809


provided, and the purveyor is not otherwise a person who exercises a significant
influence over the Gaming Operation.

3.20 IGRA. The term “IGRA” shall mean the Indian Gaming Regulatory Act of
1988.

3.21. Key Employee.
(a) | A person who performs one or more of the 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

(10) Custodian of gambling devices; including persons with access to
cash and accounting records within such devices;

(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 the
Gaming Operation; or

(d) Any other Person required to be licensed pursuant to Regulation
promulgated by the Commission.

3.22 Licensee. Any Person who has been issued a valid and current Gaming license
pursuantto_the_-provisions_of this-Ordinance.

3.23 Management Contract or Contract. Any contract, agreement or other
document establishing a relationship between the Tribal government and any Person in
which such a Person has managerial responsibilities for a Tribal-owned Class II or II
Gaming Activity, and which requires approval by the National Indian Gaming

4 Rincon Gaming Ordinance #2011-809


Pending establishment of a Tribal Court, the Business Committee may exercise the
jurisdiction of the Tribal Court or otherwise as provided pursuant to Tribal law.
Prosecution for such a civil infraction in Tribal Court is not meant to be exclusive. Class
TI and Class I Gaming by any person on the Reservation except as authorized pursuant
to this Ordinance is prohibited, and any person determined to have engaged in

unauthorized or unapproved gaming is subject to a civil fine not to exceed $5,000 per
violation.

5. OWNERSHIP OF GAMING OPERATION

The Band shall have the sole proprietary interest in and responsibility for the conduct of
any Gaming Operation authorized by this Ordinance, provided, however, that the Band may, in
accordance with IGRA, enter into a management contract for management of the Gaming
Operation. Further, the Band may contract with and license a Person to engage in any Gaming
Activity pursuant to the provisions of the IGRA and the regulations promulgated thereunder, or
as otherwise permitted by law.

6. USE OF GAMING REVENUE

Net revenues from Class II and Class II gaming on the Reservation shall be used only for
the following purposes: a) To fund Tribal government operation and programs; b) To provide for
the general welfare of the Band and its members; c) To promote Tribal economic development;
d) To donate to charitable organization; or e) To help fund operations of local government
agencies,

7. TRIBAL GAMING COMMISSION.

7.01 Establishment of Commission. The Rincon Gaming Commission is hereby
established. The Commission shall consist of five (5) Commissioners appointed by a
majority vote of the Business Committee. At least three (3) of the Commissioners shall
be enrolled members of the Rincon Band. All five (5) Members of the Commission shall
be at will employees and will serve at the discretion of the Business Committee. The
Business Committee shall fill vacancies on the Commission within 30 days of a vacancy.

(a) — Appointments of the Commissioners shall be for a period of four (4) years,
except that, of the terms of the initial members, two for two (2) years, and
three for four (4) years, respectively, which shall result in staggered
appointments and provide continuity within the Commission. The
Commissioners may be reappointed for one or more successive terms.
New Commissioners will serve a twelve (12) month probationary period
ZT pro vided such probationary period will not affect their tight tobenefits

under the Tribal employee personnel policies then in effect.

(b) Each Commission member in office upon the effective date of this
Ordinance shall complete their current terms and shall be eligible for
reappointment.

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