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RESOLUTION

OF THE

OSAGE TRIBAL COUNCIL

No. 29817

WHEREAS,

1. The Osage Tribal Council, organized pursuant to

provisions of the Act of June 28, 1906, 34 Stat. 539, as amended,

and is the elected governing body of the Osage Tribe of Indians;

and

2. The general governing authority of the Osage Tribal

Council for the Osage Tribe of Indians has been reaffirmed in

Fletcher v. United States, Case No. 955208, Tenth Circuit Court of

Appeals, June 10, 1997; and

3. The Osage Tribal Council has determined that entry into

Class II gaming operation would produce income to significantly

benefit the Osage Tribe of Indians; and

4. A Class II Gaining Ordinance of the Osage Tribe of

Indians, referenced as Title I, has developed and presented to the

Osage Tribal Council; and

5. The Osage Tribal has fully considered and reviewed this

ordinance; and

6. The Osage Tribal Council desires to adopt this ordinance,

a copy of which is attached hereto, as the official Class II Gaming

Ordinance of the Osage Tribe of Indians. THEREFORE, BE IT

RESOLVED,

1. The Class II Gaining Ordinance of the Osage Tribe of

Indians, a copy of which is attached hereto, further referenced as

Title I, be, and the same is, hereby adopted as the official Class

II Gaming Ordinance of the Osage Tribe of Indians; and

2. The Principal Chief, or in his absence the Acting

Principal Chief, is hereby authorized to sign this Resolution and

to certify the Ordinance adopted by this Resolution and to transmit

three original copies thereof to the Chairman of the National

Indian Gaming Commission for his official approval of said

Ordinance.
A

CERTIFICATION

I hereby certify the foregoing Resolution No. 29817 was considered

by the Osage Tribal Council at a duly called meeting in Pawhuska,

Oklahoma, at which a quorum was present and the same was adopted by a vote of 7 in favor, 0 opposed and 1 absent, this 4th day of

March, 1997.

ACTtNQ Principal ehief

ATTEST:

Qt~dLI ~UI~J~

U Secretary
RESOLUT ION

OF THE

OSAGE TRIBAL COUNCIL

No. 29818

WHEREAS,

1. The Osage Tribal Council, organized pursuant to

provisions of the Act of June 28, 1906, 34 Stat. 539, as amended,

and is the elected governing body of the Osage Tribe of Indians;

and

2. The general governing authority of the Osage Tribal

Council for the Osage Tribe of Indians has been reaffirmed in

Fletcher v. United States, Case No. 955208, Tenth Circuit Court of

Appeals, June 10, 1997; and

3. The Osage Tribal Council has determined that a Gaming

Commission Ordinance setting detailed procedures for the regulation

of Class II Gaming within the Tribal jurisdiction is necessary and

desirable; and

4. Such a Gaming Commission Ordinance has been developed and

presented to the Osage Tribal Council; and

5. The Osage Tribal Council has fully considered and

reviewed this Ordinance; and

6. The Osage Tribal Council desires to adopt this Ordinance,

to also be called Title II, Gaming Ordinance of the Osage Tribe of

Indians. THEREFORE, BE IT

RESOLVED,

1. The Gaming Commission Ordinance of the Osage Tribe of

Indians, also known as Title II, Gaming Ordinances of the Osage

Tribe of Indians, a copy of which is attached hereto, be, and the

same is, hereby adopted as the official Gaming Commission Ordinance

of the Osage Tribe of Indians; and

2. The Principal Chief, or in his absence, is hereby

authorized to certify the Ordinance as the official Gaming

Commission Ordinance of the Osage Tribe of Indians and transmit

three original copies thereof to the Chairman of the National

Indian Gaming Commission; and

3. That the Principal Chief, or in his absence the Acting

Principal Chief, is hereby authorized to sign this Resolution.
CERTIFICATION

I hereby certify the foregoing Resolution No. 29818 was considered

by the Osage Tribal Council at a duly called meeting in Pawhuska,

Oklahoma, at which a quorum was present and the same was adopted by

a vote of 7 in favor, 0 opposed and 1 absent, this 4th day of

March, 1997.

AC~1NO Principal~hief

ATTEST:

Secretary
GAMING ORDINANCES OF THE OSAGE TRIBE OF INDIANS

Title I

CLASS U GAMING ORDINANCE

OF THE OSAGE TRIBE OF INDIANS

Section 1.01. Purpose

The Osage Tribal Council, the sole governing body of the Osage Tribe of Indians

(hereinafter Tribe), empowered by the Act of June 28, 1906, 34 Stat. 539, as amended, to enact

ordinances, hereby enacts this ordinance in order to set the terms of Class II gaming operations

and to regulate such gaming on Indian lands which are defined by 25 C.F.R. Section 502.12 as:

A. Land within the limits of an Indian reservation; or

B. Land over which an Indian tribe exercised governmental power and that is

either1. Held in trust by the United States for the benefit of any Indian tribe or

individual; or.

2. Held by an Indian tribe or individual subject to restriction by the United

States against alienation.

Section 1.02. Gaming Authorized

Class 11 gaming as defined in the Indian Gaming Regulatory Act, P.L. 100-447, 25 U.S.C.,

Section 2703(7) (A) (IGRA) and by regulations promulgated by the National Indian Gaming

Commission at 25 C.F.R. Section 502.3 (as published in the Federal Register at 57 FR 12382-

12393, April 9, 1992) is hereby authorized by the Tribe.

Section 1.03. Ownership of Gaming

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

gaming operation authorized by this ordinance, except in instances where the Tribe may elect to

license and allow individually owned gaming according to the provisions of 25 C.F.R. Sections

522.10 and 522.11. Insuch instances:

A. The gaming operation shall be licensed under the provisions hereof and under

the provisions of the Class II Gaming Commission Ordinance of the Osage Tribe of

Indians; and

B. All income to the Tribe from an individually owned gaming operation shall be

used only for the purposes listed in 25 C.F.R. Section 522.4(b)(2); and
C. Not less than 60 percent of the net revenues shall be income to the Tribe; and

D. The owner of such an operation shall pay an assessment to the National Indian

Gaming Commission as provided by 25 C.F.R. Section 514.1; and

E. All such licenses shall be issued pursuant to licensing standards that are at

least as restrictive as those established by State law governing similar gaming within the

jurisdiction of the surrounding State; and

F. Licenses shall be denied for any person or entity that would not be eligible to

receive a State license to conduct the same activity within the jurisdiction of the

surrounding State and State law standards shall apply with respect to the purpose, entity,

pot limits and hours of operation.

Section 1.04. Use of Gaming Revenue

A. Net revenues from class II gaming shall be used only for the following

purposes: to ftind tribal government operations and programs; provide for the general

welfare of the Tribe and its members; promote tribal economic development; donate to

charitable organizations; or help fund operations of local government agencies.

B. If the Tribe elects to make per capita payments to tribal members, it shall

authorize such payments only upon approval of a plan submitted to the Secretary of the

Interior under 25 U.S.C. Section 27 10(b) (3)

Section 1.05. Audit

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

operations and shall submit the resulting audit reports to the National Indian Gaming

Commission.

B. All gaming related contracts that 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 subsection A. above.

Section 1.06. Protection of the Environment and Public Realtb and Safety

All Class II gaming facilities shall be constructed, maintained and operated in a manner

that adequately protects the environment and the public health and safety.

Section 1.07. Licenses for Key Employees and Primary Management Officials

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The Tribe shall ensure that the policies and procedures set Out in this section are

implemented with respect to key employees and primary management officials employed at any

Class H gaming enterprise operated on Indian lands:

A. Definitions

For the purposes of this section, the following definitions apply:

Key employee means

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

(I) 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 $50,000.00 per year; or

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

persons in the gaming operation.

2. Primai-v management official means

(a) The person having management responsibility for a

management contract:

(b) Any person who has authority:

(1) To hire and fire employees; or

(2) To set up working policy for the gaming operation; or

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

management responsibility.

B. Application Forms

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1. 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. Section 2701 et seq. The purpose of the requested information is

to determine the eligibility of individuals to be employed in a gaming

operation. The information will be used by National Indian Gaming

Commission members and staff who have need for the information in the

performance of their official duties. The information may be disclosed to

appropriate Federal, State, local, or foreign law enforcement and

regulatory agencies when relevant to civil, criminal or regulatory

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

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

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

investigations of activities while associated with a tribe or a gaming

operation. Failure to consent to the disclosure indicated in this notice will

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

official or key employee position.

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

However, failure to supply a SSN may result in errors in processing your

application.

2. Existing key employees and primary management officials shall be

notified in writing that they shall either:

a. Complete a new application form that contains a Privacy Act

notice; or

b. Sign a statement that contains the Privacy Act notice and

consent to the routine uses described in that notice.

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

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

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

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

be punished by fine or imprisonment. (U.S. Code, title 18, section

1001.)

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

management officials that they shall either:

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a. Complete a new application form that contains a notice

regarding false statements; or

b. Sign a statement that contains the notice regarding false

statements.

C. Background Investigations

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

from each key employee all of the following information:

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

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

(spoken or written);

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

positions held, ownership interests in those businesses and residence

addresses, and drivers license numbers;

c. The names and current addresses of at least three personal

references, including one personal reference who was acquainted

with the applicant during each period of residence listed under

paragraph (1) (b) of this section.

d. Current business and residence telephone numbers;

e. A description of any existing and previous business relationships

with Indian tribes, including ownership interests in those businesses;

f. A description of any existing and previous business relationships

with the gaming industry generally, including ownership interests in those

businesses;

g. The name and address of any licensing or regulatory agency with

which the person has filed an application for a license or permit related to

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

h. For each felony for which there is an ongoing prosecution or a

conviction, the charge, the name and address of the court involved, and the

date and disposition, if any;

i. For each misdemeanor conviction or ongoing misdemeanor

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

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

and disposition;

j. For each criminal charge (excluding minor traffic charges),

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

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

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

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

k. The name and address of any licensing or regulatory agency with

which the person has filed an application for an occupational license or

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

1. A current photograph;

m. Any other information the Tribe deems relevant; and

n. Fingerprints consistent with procedures adopted by the Tribe

according to 25 C.F.R. Section 522.2(h).

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

determination under subsection D. below. In conducting a background

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

of each person interviewed in the course of the investigation.

D. Eligibility Determination

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

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

employee or primary management official for employment in a gaming operation. If the

Tribe determines that employment of the person poses a threat to the public interest or to

the effective regulation of gaming, or creates or enhances dangers of unsuitable, unfair, or

illegal practices and methods and activities in the conduct of gaming, a tribal gaming

operation shall not employ that person in a key employee or primary management official

position.

E. Procedures for Forwarding Applications and Reports for Key Employees and

Primary Management Officials to the National Indian Gaming Commission

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

operation authorized by this ordinance, the Tribe shall forward to the National Indian

Gaming Commission a completed application for employment and conduct the

background investigation and make the determination referred to in subsection D of this

section.

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

6
the National Indian Gaming Commission within 60 days after an employee begins work or

within 60 days of the approval of this ordinance by the Chairman of the National Indian

Gaming Commission.

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

management official a person who does not have a license after 90 days.

F. Report to National Indian Gaming Commission

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

shall prepare and forward to the National Indian Gaming Commission an investigative

report on each background investigation. An investigative report shall include all of the

following:

a. Steps taken in conducting a background investigation;

b. Results obtained;

c. Conclusions reached; and

d. The bases for those conclusions.

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

determination made under subsection D of this section.

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

a. Shall notil1 the National Indian Gaming Commission; and

b. May forward copies of its eligibility determination and

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

inclusion in the Indian Gaming Individuals Records System.

4. With respect to key employees and primary management officials, the

Tribe shall retain applications for employment and reports (if any) of the background

investigations for inspection by the Chairman of the National Indian Gaming Commission

or his designee for no Less than three (3) years from the date of employment.

G. Granting a Gaming License

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

Commission receives a report, the National Indian Gaming Commission notifies

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

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

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

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

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2. The Tribe shall respond to a request for additional information

from the Chairman of the National Indian Gaming Commission concerning a key

employee or a primary management official who is the subject of a report. Such a

request shall suspend the 30-day period under paragraph G. I. of this section until

the Chairman of the National Indian Gaming Commission receives the additional

information.

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

Indian Gaming Commission provides the Tribe with a statement itemizing

objections to the issuance of a license to a key employee or to a primary

management official for whom the Tribe has provided an application and

investigative report to the National Indian Gaming Commission, the Tribe shall

reconsider the application, taking into account the objections itemized by the

National Indian Gaming Commission. The Tribe shall make the final decision

whether to issue a license to such applicant.

H. License Suspension

I. If, after the issuance of a gaming License, the Tribe receives from

the National Indian Gaming Commission reliable information indicating that a key

employee or a primary management official is not eligible for employment under

subsection D. above, the Tribe shall suspend such license and shall notify in writing

the licensee of the suspension and the proposed revocation.

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

the proposed revocation of a license.

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

reinstate a gaming license. The Tribe shall notify the National Indian Gaming

Commission of its decision.

Section 1.08. License Locations

The Tribe shall issue a separate license to each place, facility, or location on Indian lands

where class II gaming is conducted under this ordinance.

Section 1.09 Investigations and License Standards

The Tribe shall perform background investigations and issue licenses for key employees

and primary management officials according to requirements that are at least as stringent as those

in 25 C.F.R. Parts 556 and 558.

Section 1.10. Repeal

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

are hereby repealed.

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CERTIFICATION

I hereby certif~, that the above and foregoing ordinance is a true, accurate and exact copy

of the Class II gaming ordinance of the Osage Tribe of Indians adopted by formal Resolution No.

____________

of the Osage Tribal Council on the _____

day of_______________________

1998, a copy of which is attached hereto, and that said Resolution expressly authorized me to

make this certification.

Charles 0. Tillman, Jr.

Principal Chief

9
RESOLUTION

OF THE

OSAGE TRIBAL COUNCIL

Resolution No.

WHEREAS:

1. The Osage Tribal Council, organized pursuant to provisions of the Act of June 28, 1906,

34 Stat. 539, as amended, is the elected governing body of the Osage Tribe of Indians; and

2. The Osage Tribal Council has determined that entry into Class II gaming operation would

produce income to significantly benefit the Osage Tribe of Indians; and

3. A Class II Gaming Ordinance of the Osage Tribe of Indians, referenced as Title I, has

developed and presented to the Osage Tribal Council; and

4. The Osage Tribal Council has ftilly considered and reviewed this ordinance; and

5. The Osage Tribal Council desires to adopt this ordinance, a copy of which is attached

hereto, as the official Class II Gaming Ordinance of the Osage Tribe of Indians. THEREFORE

BElT

RESOLVED:

I. That the Class II Gaming Ordinance of the Osage Tribe of Indians, a copy of which is

attached hereto, ftirther referenced as Title I, be, and the same is, hereby adopted as the official

Class II Gaming Ordinance of the Osage Tribe of Indians.

2. That the Principal Chief, or in his absence the Acting Principal Chief, is authorized to

sign this Resolution and to certify the Ordinance adopted by this Resolution and to transmit three

original copies thereof to the Chairman of the National Indian Gaming Commission for his official

approval of said Ordinance.

CERTIFICATION

I hereby certify that the foregoing Resolution No. 29 was considered by the

Osage Tribal Council at a duly called meeting in Pawhuska, Oklahoma, at which a quorum was

present and the same was adopted by a vote of_____ in favor, ______

opposed, and ________

absent, this _________

day of ,

1998.

ATTEST:

_______________________

Principal Chief

Secretary
GAMING ORDIT4ANCES OF THE OSAGE TRIBE OF INDIANS

Title II

GAMING COMMISSION ORDINANCE

OF THE OSAGE TRIBE OF INDIANS

Section 2.01. Action and Authority

The Osage Tribal Council, the sole governing body of the Osage Tribe of Indians

(hereinafter Tribe), empowered by the Act of June 28, 1906, 34 Stat. 539, as amended, to enact

ordinances, hereby enacts this ordinance which is entitled the Gaming Commission Ordinance of

the Osage Tribe of Indians, also referenced as Title II, Gaming Ordinances. Additional authority

for the enactment of this ordinance is the Indian Gaming Regulatory Act of 1988

(IGRA), 25 U.S.C. Sections 2701 elseq., and the regulations implementing IGRA, 25 C.F.R. Part

501 e!seq.

Section 2.02. Scope

This ordinance shall apply to all Class II gaming conducted within the jurisdiction of the

Osage Tribe of Indians.

Section 2.03. Purpose

A. This ordinance is intended to promote the peace, safety and welfare of all

persons coming within the jurisdiction of the Tribe by insuring that all gaming operations

conducted within the Tribal jurisdiction are conducted in a fair and responsible manner,

provide a sage and wholesome means of recreational activity in a community setting;

insure that the public order, peace, and safety are maintained; and provide a source of

revenue for the Tribal Government. This ordinance shall be liberally construed to promote

such purposes.

B. This ordinance is further intended to establish a detailed regulatory method and

procedure to regulate Class II gaming operations and to comply with all requirements of

the National Indian Gaming Con~imission set forth in 25 C.F.R. Parts 501 et seq..

Section 2.04. Definitions

All definitions used in IGRA and its implementing regulations, cited in Section 2.01,

above, shall be used to define all terms used herein, unless the context clearly indicates that a

different meaning is intended, except and in addition:

A. Chairman, as used herein, shall mean the Chairman of the Gaming

Commission of the Osage Tribe of Indians when used in that context.
B. Class II Gaming Ordinance of the Osage Tribe of Indians or Gaming

Ordinance shall mean the Tribal Ordinance approved by the Chairman, National Indian

Gaming Commission, also referenced as Title I, Gaming Ordinances.

C.. Commission, as used herein, shall mean the three-person entity created by

this ordinance to generally regulate and monitor gaming operations within the Tribal

jurisdiction when used in that context.

D. Gaming Commission Ordinance of the Osage Tribe of Indians or Gaming

Commission Ordinance or Title II, Gaming Ordinances shall mean this Ordinance

which details procedures to be followed by the Commission to comply with the provisions

of the Class II Gaming Ordinance of the Osage Tribe of Indians, also called Title I,

Gaming Ordinances; the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. Sections 2701

et seq; and the regulations implementing IGRA, 25 C.F.R. Parts 501 et seq..

E. NIGC shall mean the National Indian Gaming Commission;

F. Osage Tribe of Indians or Tribe shall mean the Osage Tribe of Indians as

defined by the Act of June 28, 1906, 34 Stat. 539, as amended, consisting of members

who are any persons of Osage Indian blood of whatever degree.

G. The Osage Tribal Council or Tribal Council shall mean the sole governing

body of the Osage Tribe of Indians established by the Act of June 28, 1906, 34 Stat. 539,

as amended.

H. Where the masculine gender is used herein it shall also denote the feminine

gender.

Section 2.05. Establishment of a Gaming Commission

There is hereby established a Tribal entity which shall be known as The Gaming

Commission of the Osage Tribe of Indians (hereinafter Commission).

Section 2.06. Membership of Commission

A. The Commission shall consist of three members, any of whom may or may not

be Members of the Osage Tribal Council, who shall be nominated by the Principal Chief

and be duly appointed by formal Resolution of the Osage Tribal Council.

B. The Osage Tribal Council shall, upon nomination by the Principal Chief, by

formal Resolution, appoint one of such Members as Chairman and Executive Director of

the Commission (hereinafter Chairman).

2
C. At any time during which the Chairman may be absent from a meeting or be

temporarily unable to perform official duties, the other two members of the Commission

may appoint one of themselves as Acting Chairman. If the said two Members can not

agree upon who is to be appointed as Acting Chairman, the Principal Chief of the Osage

Tribal Council may, upon the request of any Commission Member, appoint one of them as

Acting Chairman to serve until the Chairman is again present and able to perform the

Chairmans duties or until the Chairman is replaced by a formal Resolution of the Osage

Tribal Council.

D. The Chairman or Acting Chairman shall vote on all matters along with the

other member or members present at any meeting. A majority vote of two shall be

controlling on any matter if all three Commission Members are present.

E. A quorum for the transaction of all Commission business shall exist when any

two members of the Commission are present at any regular or special meeting of the

Commission. If only the Chairman or Acting Chairman and one other Member is present

at any such meeting the decision and vote of the Chairman or Acting Chairman on any

matter shall be controlling if the two Commission members can not agree on the matter.

Notwithstanding the provisions hereof, if an impasse or irreconcilable controversy should

arise among the Commission Members, it shall be settled by the decision of the Principal

Chief of the Osage Tribal Council.

F. The provisions of this Section shall apply to all matters and decisions of the

Commission, including, but not limited to, decisions at hearings provided in Section 2.16.,

below.

Section 2.07. Qualifications of Members

All members of the Commission must:

A. Be over twenty-one years of age.

B. Be of good moral character and reputation within the Osage community.

C. Never have been convicted of a felony or of a crime of any nature involving

moral turpitude.

D. Own no interest in any Tribal gaming operation or management contract.

E. Have significant business or employment experience to qualifj them to

generally manage Tribal gaming operations including the proper accounting therefor,

provided however, that such past experience need not necessarily have been in the gaming

field.

F. Have exhibited a desire and motivation to be of service to the Osage Tribe

of Indians.

3
G. Have no history of alcohol or drug abuse or of mental or emotional illness or

disability which might adversely affect the performance of their duties as Members of the

Commission.

H. Be able to pass a suitability investigation and determination such as may be

prescribed by the Osage Tribal Council to insure moral, ethical, legal, and professional

fitness for the position in the judgment of the Osage Tribal Council.

I. Be a Tribal member as defined by Section 2.04, F., above.

Section 2.08. Term of Office

Members of the Commission shall serve two year terms at the will and pleasure of the

Osage Tribal Council. Any Member may be removed from office by formal Resolution of the

Osage Tribal Council with or without cause at any time. In such an event the Osage Tribal

Council shall, by formal Resolution, appoint a successor to fill the vacant position.

Section 2.09. Compensation of Members of the Commission

Members of the Commission shall receive only per diem and mileage reimbursement at the

standard rates fixed by the Osage Tribal Council for other Tribal employees as and for

compensation for their services, unless and until otherwise provided by formal Resolution of the

Osage Tribal Council amending this Section.

Section 2.10. Annual Budget

A. The Chairman shall present an annual operating budget for the Commission for

the Tribal fiscal year ending June 30, 1998, to the Osage Tribal Council for the

balance of that Tribal fiscal year within thirty (30) days following his appointment. He

shall thereafter present such an operating budget at the same time each year as is required

of other units of the Osage Tribal Government.

B. The annual budget shall be approved by formal Resolution of the Osage Tribal

Council and be appropriated from general Tribal funds and revenues. No funds or

revenues which are trust assets belonging to, or derived from, any funds, revenues or

contracts belonging to or entered into for the benefit of the Osage Minerals Estate or for

the headright owners who share in the Osage Minerals Estate may be used for this

purpose. No expenditures or obligations of funds exceeding each annual budget for a

given year shall be allowed unless approved amendments are granted by formal Resolution

of the Osage Tribal Council.

C. In the event such funding appears to be inadequate at any time during a given

fiscal year to meet the needs of the Commission, the Chairman shall request that the Osage

Tribal Council amend the budget to provide for such additional funds.

4
D. All funds which are unexpended or unobligated from the Commissions budget at the end of anyfiscal year shall revert to the general Tribal Treasury Account.

E. All personnel positions for supervisory, administrative, investigatory and

clerical support staff, their grades, and their compensation must be authorized by the

Osage Tribal Council in its approval of the annual budget, or amendments thereto.

F. All such personnel shall be considered to be Tribal employees and shall be

subject to all provisions of the Tribal Personnel Manual in addition to the provisions

hereof.

G. All such Commission employees shall be subject to similar background

investigations and suitability determinations required for key employees of gaming

operations under this Ordinance, under the Indian Gaming Regulatory Act, 25 U.S.C.

Sections 2701 et seq, and under 25 CFR Parts 501 el seq., except that such need not be

approved by NIGC..

Section 2.11. Operating Funds for Commission: Bank Account

A. A special bank account with a bank that is insured by the Federal Deposit

Insurance Corporation (FDIC) shall be established by the Chairman for operating funds of

the Commission to be known as the OTC Gaming Operations Account. The Chairman,

the Principal Chief and such other officials or employees of the Commission as may be

authorized by the Commission shall be the only signatory authorities on that account.

B. The account shall be funded pursuant to the Commissions approved budget by

periodic draw downs from the OTC account by checks drawn against the OTC General

Gaming Account and signed by authorized signatories for that account. Each draw down

must be approved by an authorized official or employee of the Osage Tribal Council.

Draw downs shall not exceed the Commissions budget for any quarter of a fiscal year

unless approved by formal Resolution of the Osage Tribal Council.

C. All operations of the Commission, including start up costs, are to be funded

from this account.

Section 2.12. Income and Disbursements of Income

A. All income received by the Gaming Commission for license fees, civil penalties,

civil fines, investigatory expense reimbursement, and other miscellaneous income shall be

deposited into the OTC General Gaming Account by the Tribe.

B. Appropriate adjustments shall be made to the Gaming Commission bank

account at the beginning of each new fiscal year, together with appropriate accounting

adjustments, with any excesses over and above the authorized draw down for the first

quarter of each new fiscal year to be paid by check into the OTC General Gaming

Account of the Tribe.

5
Section 2.13. Meetings of the Commission

A regular meeting of the Commission shall be held during the first week of each month.

on a regular day to be determined by the Commission. Additional meetings shall be held as

necessary at the direction of the Chairman. All meetings shall be conducted pursuant to the

Roberts Rules of Order.

Section 2.14. Duties and Responsibilities of the Commission

The Commission shall have the following duties and responsibilities in addition to the

duties, responsibilities and requirements set forth in other Sections of this Ordinance. Where

there is apparent conflict or ambiguity between any provision of this Section and with the

provisions of any specific Section contained in this Ordinance, the provisions of the specific

Section shall govern:

A. Develop licensing procedures for all employees of all gaming operations

pursuant to 25 C.F.R. Section 558.1.

B. Issue and renew licenses for all employees of gaming operations, but only to

primary management officials and key employees upon completion of background

investigations and after following the procedures contained in 25 C.F.R. Parts 556 and

558, and suspend and revoke any license of any employee for good cause, provided

however, that issuance, renewal, revocation, or suspension of the license of a primary

management official shall require the advice and consent of the Osage Tribal Council.

C. Take all necessary actions to insure that all gaming operations fully comply

with all of the provisions of 25 C.F.R. Part 514 -

Fees, regarding quarterly reporting and

the payment of all fees to the NIGC as required by that C.F.R. Part.

D. Conduct background investigations on primary management officials and key

employees according to requirements that are at least as stringent as those in 25 C.F.R.

Parts 556 and 558 pursuant to 25 C.F.R. Section 522.4(b)(5).

E. Forward completed employment applications for primary management officials

and key employees to the NTGC pursuant to 25 C.F.R. Section 558.3. These

applications must include the Privacy Act notice and the notice regarding false statements

contained in 25 C.F.R. Sections 556.2 and 556.3.

F. Forward completed investigative reports on each background investigation for

each primary management official or key employee to the NIGC prior to issuing a license

pursuant to 25 C.F.R. Section 556.5.

6
G. Review a persons prior activities, criminal record, if any, and reputation,

habits, and associations to make a finding concerning the eligibility of a key employee or

primary management official for employment in a gaming operation pursuant to 25 C.F.R.

Section 558.2.

H. Notify the NTGC if, after conducting a background investigation on a primary

management official or a key employee, the Tribe does not license the official pursuant to

25 C.F.R. Section 556. 5(d)(l) and (2).

I. Retain applications and reports of background investigations of primary

management officials and key employees for no less than three years from termination of

employment pursuant to 25 C.F.R. Section 558.1(c).

J. Issue separate licenses to each place, facility, or location on Indian lands

authorized by the Osage Tribal Council for the conduct of gaming operations pursuant to

25 C.F.R. Section 522.4(b)(6).

K. Ensure that gaming facilities are constructed, maintained and operated in a

manner that adequately protects the environment and the public health and safety pursuant

to 25 C.F.R. Section 522.4(b)(7).

L. Obtain annual independent outside audits from auditors selected by the Osage

Tribal Council and submit such audits to the NIGC pursuant to 25 C.F.R. Section

522.4(b)(3). The scope of these audits should include all gaming related contracts that

result in purchases of supplies, services or concessions for more than $25,000 in any year

pursuant to 25 C.F.R. Section 522.4(b)(4).

M. Ensure that net revenues from any gaming activities are used for the limited

purposes set forth in the Class II Gaming Ordinance of the Osage Tribe of Indians, also

denominated as Title I., in all matters within the cognizance of the Commission. Such

uses which are not within the cognizance of the Commission will be monitored,

appropriated and approved by the Osage Tribal Council.

N. License and regulate individually owned and operated gaming operations

pursuant to 25 C.F.R. Sections 522.10 and 522.11 and pursuant to all provisions of the

Class II Gaming Ordinance of the Osage Tribe of Indians and this Ordinance.

0. Promulgate Tribal gaming regulations pursuant to Tribal law.

P. Monitor gaming activities to ensure compliance with Tribal law/regulations.

Q. Interact with other regulatory and law enforcement agencies regarding the

regulation of gaming.

R. Conduct investigations of possible violations and take appropriate enforcement

action with respect to Tribal gaming ordinances and regulations.

7
S. Provide independent information to the Osage Tribal Council on the status of

the Tribes gaining activities.

1. Take testimony and conduct hearings on regulatory matters, including matters

related to the revocation of licenses of key employees, primary management officials, and

others, as indicated.

U. Develop and approve minimum internal control standards and procedures for

each gaming operation, its credit policies and procedures for acquiring supplies and

equipment in coordination with the Osage Tribal Council or its authorized

representative(s) authorized to manage the various gaming operations.

V. Establish any supplementary criteria for the licensing of primary management

officials, key employees, and other employees as the Osage Tribal Council deems

necessary.

W. Establish standards for and issue licenses or permits to persons and entities

who deal with the various Tribal gaming operations such as manufacturers and suppliers

of machines, equipment and supplies.

X. Maintain records on licenses and persons denied licenses including persons

otherwise prohibited from engaging in gaming activities within the Tribes jurisdiction.

Y. Demand access to and inspect, examine, photocopy or audit all papers, books

and records of any gaming operation within the Tribal jurisdiction andlor any individual or

entity who does business with any gaming operation within the Tribal jurisdiction and

perform audits of all such activities and matters to ensure compliance with applicable

Tribal ordinances, regulations andlor policy, with IGRA, and with 25 C.F.R. Parts 501 et

seq., and other applicable law.

Z. Approve rules of various games, and inspect games, tables, equipment,

machines, cards, dice, and chips or tokens used in the gaming operation. Establish or

approve video surveillance standards, where necessary and applicable. Establish

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

compliance. Ensure that no unlawful machines or equipment are used in any gaming

operation within the Tribal jurisdiction.

AA. Resolve patron disputes, employee grievances, and other problems.

AB. Maintain a handbook of NTGC documents, recommended and required forms

and procedures, and NTGC informational releases and documents by use of the NJGC Fax

on Demand System, or otherwise, and incorporate such into all procedures used by and

requirements made by the Tribal Gaming Commission to the greatest practicable extent.

8
AC. Furnish assistance and information to the Principal Chief, the Osage Tribal

Council, or any relevant committee thereof, upon request, concerning any proposed

Management Contract and the principals thereof proposing such a contract, proposed

gaming sites or locations, applications for individually owned or operated gaming

operations, gaming machines, equipment and supplies and manufacturers and suppliers

thereof, or on any other gaming matter, together with appropriate recommendations to

assist the Osage Tribal Council in making decisions thereon.

AD. Collect and pursue judgments and legal actions to collect all civil penalties

and civil fines imposed by the Commission, as authorized by the Osage Tribal Council.

AE. Seek advice from auditors and attorneys authorized by the Osage Tribal

Council to perform such services for the Commission.

AF. Use such Tribal buildings and equipment in the performance of duties as

authorized by the Osage Tribal Council.

AG. Issue orders to effect all intents, provisions and purposes of all Tribal

Gaming Ordinances, the Indian Gaming Regulatory Act, and 25 C.F.R. Parts 501 et seq.,

and file such legal actions as may be necessary to enforce such orders, as authorized by the

Osage Tribal Council.

AH. Submit an annual report to the Osage Tribal Council, including the views of

each Member of the Commission, during the month of January of each calendar year

which shall include the following:

1. Recommendations on whether the Commission should be a frill or part

time Commission;

2. Recommendations for amendments to this Ordinance;

3. A summary report on issuances, suspensions, or denials of all gaming

licenses;

4. A summary report on all civil fines and civil penalties imposed by the

Commission, the collection thereof, and the posture of all legal actions filed, as

authorized by the Osage Tribal Council, to collect them;

5. A summary report about each gaming employee or gaming operation

which, in the opinion of the Commission, may require corrective action by the

Osage Tribal Council; and

6. A summary report on all other matters relevant to Tribal gaming.

9
Al. Hire, fire, promote, demote, suspend, direct, supervise, train, manage, and

appropriately delegate responsibilities and duties to such supervisory employees,

accountants, investigators, secretaries, clerks, and other personnel needed by the

Commission to perform its duties and responsibilities, provided however, that all such

employees and such acts relating to such employees shall be subject to the provisions of

the Tribal Personnel Manual and, providedfurther, that all such acts shall be in accord

with the approval of the Commissions annual budget, and amendments thereto, pursuant

to formal Resolutions of the Osage Tribal Council.

AJ. Utilize the services of the Osage Tribal Police Force to provide fingerprinting

and criminal background checks and investigations and/or use the services of any other

local, state or federal cooperating law enforcement agency for such purposes and make

reasonable payment or reimbursement to all such agencies for fees charged or expenses

incurred in such activities, provided however, that no payments of fees or reimbursement

of expenses shall be made to the Osage Tribal Police Force. Should the need arise, the

Osage Tribal Council will provide necessary funding through the Tribal appropriations

process to the Usage Tribal Police Force for such assistance.

AK. Make immediate reports to the Principal Chief, the Usage Tribal Council, or

to any relevant committee of the Usage Tribal Council, as appropriate, on crimes,

breaches of Tribal or Federal laws, policies or regulations, disturbances, practices, events,

or other matters involving gaming which may require the immediate attention and action

of the Usage Tribal Council.

AL. Require each gaming facility licensed to conduct gaming operations within

the jurisdiction of the Tribe to keep such financial records and books of account, as may

be approved by an auditor selected by the Osage Tribal Council, at each such facility for

inspection and audit by the Commission.

AM. Perfect appeals to decisions of the National Indian Gaming Commission

relating to any Tribal gaming matter, with the advice and consent of the Osage Tribal

Council.

AN. Perform all other gaming related duties consistent with the regulation of

gaming activities conducted within the Tribal jurisdiction not otherwise expressly provided

by this Section or by other Sections of this Ordinance, provided however, that the advice

and consent of the Osage Tribal Council shall first be obtained on all such other matters of

extreme importance or significance.

AU. Render all necessary assistance to the National Indian Gaming Commission

that may be required by law or regulation. In instances where such assistance is not

required by law or regulation, render all reasonable assistance on matters affecting Tribal

interests.

10
Section 2.15. Commission Access to Information

The Commission may secure from any department or agency of the Tribal government,

and from cooperating agencies of any federal, state, or local government information to enable it

to carry out its functions under this Ordinance. Upon request of the Chairman of the

Commission, the head of any Tribal department or agency shall tI.irnish Principal Chief of the

Osage Tribe who shall circulate copies to all Members of the Osage Tribal Council.

Section 2.16. Conduct of Commission Hearings

A. The Commission, sitting eli banc with the Chairman or Acting Chairman and at

feast one other Member present, shall hold all hearings required by this Ordinance or by

applicable federal laws or regulations. It shall have the authority to determine its own

rules of procedure, not inconsistent with fairness and equity; to hear cases involving

licensing; revocation, suspension and cancellation of licenses; to hear grievances arising

from orders of the Commission regarding management practices and/or maintenance of

gaming facilities affecting the environment or the public health and safety; to hear disputes

between the gaming public and gaming operations licensed by the Tribe; to hold hearings

on the imposition of civil penalties and fines by the Commission as authorized by Section

2.23 below, and to hear all other appropriate matters involving gaming within the Tribal

jurisdiction as may be determined by the Commission.

B. Hearings may be conducted on the record of documents presented or by the

taking of oral testimony and argument. Adequate and advance notice shall be given as to

the time, date and place of hearings to all interested parties involved in a case. Hearings

that involve oral presentations may be recorded verbatim at the discretion of the

Commission or at the request of a party and transcripts thereof shall be furnished to

parties upon request. Fees for transcripts shall be at the actual cost of recordation and

duplication, as applicable and as is ordered by the Commission. The decisions of the

Commission shall be final except as otherwise provided by this Ordinance and by

applicable federal laws and regulations.

C. Parties appearing before the Commission shall give testimony under oath.

Documentary evidence and physical evidence may be accepted when properly verified. All

parties appearing at hearings where oral testimony and argument are to be permitted shall

be given a reasonable opportunity to be heard and to present evidence and arguments.

Hearings may be recessed and reconvened at the direction of the Chairman when found to

be necessary. Default decisions may be rendered by the Commission against parties who

fail to appear for a hearing who were given reasonable and official notice of the hearing by

the Commission.

D. Final decisions of the Commission may be oral at hearings and a minute made

thereof or be reduced to writing and mailed by certified mail, return receipt requested, to

all parties making official appearances in such cases who have standing to invoke the

decision and determination of the Commission, at the discretion of the Commission. A

copy of each written decision or minute of oral decision shall be furnished monthly to the

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Principal Chief of the Osage Tribe who shall circulate copies to all Members of the Osage

Tribal Council.

Section 2.17. Appeals from Decisions of the Commission

All decisions of the Commission shall be final and unappealable, except as may otherwise

be provided by applicable federal law. In such a case, appeals may be taken only to the Code of

Federal Regulations Court (CFR Court) having jurisdiction within the Osage Tribal jurisdiction or

to its appellate Division. The Osage Tribe expressly does not waive any aspect of its sovereign

immunity against lawsuits in any such circumstance or case.

Section 2.18. Legal Counsel

All legal representation, counsel, advice and legal services shall be furnished to the

Commission by an attorney with whom the Osage Tribal Council has an existing attorneys

contract, as assigned by the Principal Chief of the Osage Tribal Council. Such attorneys are

contractually bound to ethically represent the Osage Tribal Council and the Tribe at large and not

an individual or subordinate entity of the Tribe or of the Osage Tribal Council. This provision is

inserted to insure that all actions of the Commission are lawful and in accord with the policies of

the Osage Tribal Council and with the provisions of this Ordinance, the Class II Gaming

Ordinance of the Osage Tribe of Indians, the Indian Gaming Regulatory Act of 1988, 25 U.S.C.

Sections 2701 el seq., the provisions of 25 C.F.R. Parts 501 et seq. and other applicable laws and

regulations

Section 2.19. Audits

A. Annual audits of the actions and activities of the Commission shall be

conducted by auditors approved by the Osage Tribal Council. Annual audits of all gaming

operations conducted within the jurisdiction of the Osage Tribe shall be conducted by the

Commission using independent auditors selected by the Osage Tribal Council by formal

Resolution, and conducted and reported as required by 25 C.F.R. Sections 522.4. (b) (3)

and (4); 25 C.F.R. Section 571.12; 25 C.F.R. Section 571.13; 25 C.F.R. Section 571.14;

and any amendments thereto.

B. Quarterly fee assessment reports submitted pursuant to the requirements of 25

C.F.R. Section 514, shall be reconciled with audited financial statements as required by 25

C.F.R. Section 571.14.

C. The Commission shall be responsible for insuring that such audits, reports and

reconciliations are submitted to the National Indian Gaming Commission in a prompt and

timely fashion.

D. In addition, other financial and management audits may be conducted by

independent auditors selected by the Osage Tribal Council at any time at the direction of

the Osage Tribal Council.

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Section 2.20 Inspection of Books and Records by the National Indian Gaming

Commission

The Commission shall furnish all reasonable assistance to the National Indian Gaming

Commission when it may elect to inspect books and records pursuant to the provisions of 25

C.F.R. Sections 571.1 etseq.

Section 2.21 Bonding and Insurance

A. The Commission shall currently monitor the insurance and bonding of all

Management Contractors who are required to carry adequate policies of insurance and/or

corporate surety bonds on which the Tribe is a designated beneficiary, to insure the Tribe:

against property losses including buildings and equipment owned, rented or leased by the

Tribe which are used in the gaming facility which is subject to the Management Contract;

statutory, common law, and constitutional tort claims; thefts and burglaries involving

property or funds, misapplications or misappropriations of property or funds by agents,

servants or employees of the Management Contractor; and against any other peril or

hazard which the Commission may direct.

B. The Commission shall currently monitor the bonding and insurance of Tribally

operated gaming facilities designating the Tribe as a beneficiary, to insure the Tribe against

the perils and hazards enumerated in subsection A., above, including, but not limited to,

fidelity and fiduciary bonds or insurance covering Tribal employees of gaming operations,

as is determined to be prudent and necessary in the judgment of the Osage Tribal Council

in establishing and operating such gaming facilities.

C. The Commission shall currently monitor the bonding and insurance of each

individually owned or operated gaming facility which was required by the Osage Tribal

Council in its formal approving Resolution and which designated to Osage Tribe as a

beneficiary.

D. The Commission shall currently monitor perils and hazards which were not

required to be insured by approving Resolutions or contracts with the Osage Tribal

Council and report all such matters to the Osage Tribal Council.

Section 2.22. Licenses: Terms: Format: Issuance: and Display

A. Licenses shall be issued in a certificate format to be determined by the

Commission.

B. A separate gaming facility site license, at least 8 1/2 by 11in size, must be

issued for each gaming facility site and must be prominently displayed at the facility at all

times. Such a license shall remain valid for each such site so long as it is in operation

pursuant to the provisions of this Ordinance. All Management Contractors and all

operators of individually owned or operated gaming operations shall pay a fee to be

determined by the Commission for each such license which is sufficient to cover all Tribal

13
costs for license issuance, including, but not limited to costs of investigations and

inspections.

C. A separate Management Contractors license and/or license for an individually

owned or operated gaming operation, at lease 8 1/2 by II in size, must be issued for each

contract or facility and must be prominently displayed at each such facility at all times.

Such a license shall remain valid during the term of the Management Contract or

agreement for individually owned or operated gaming operation and during any authorized

extensions thereto. Management Contractors and individually owned or operated gaming

operations shall pay a fee to be determined by the Commission for each such license which

is sufficient to cover all Tribal costs of license issuance, including, but not limited to costs

of background investigations.

D. A separate license of wallet size, bearing the photograph of the employee, his

name, address, height, weight, skin, eye, and hair color and drivers license number (if the

employee has a drivers license) and designating whether the license is for a primary

management official, a key employee, or a general employee, and the individuals

employer, shall be issued to every employee of every gaming operation, including all

employees of a Management Contractor and all employees of an individually owned or

operated gaming operation licensed by the Commission. All such licenses shall remain

valid during the course of each such employees employment by the Tribe, Management

Contractor, or individually owned or operated gaming operation that are licensed by the

Commission, unless revoked, canceled, or suspended as otherwise provided by this

Ordinance or by applicable federal laws or regulations. Management Contractors and

individually owned or operated gaming operations shall pay a fee to be determined by the

Commission for each such license issued to their employees which is sufficient to cover all

Tribal costs of license issuance, including, but not limited to costs of background

investigations.

E. The Commission shall only issue a site or facility license for each gaming

facility site after determining that it meets all suitability, environmental, and public safety

criteria which the Commission may require.

F. All individuals, corporations, partnerships, joint ventures, and/or legal entities

of every kind and nature holding licenses issued by the Commission shall promptly exhibit

such licenses to any member of the public, Commission Member or employee, agent or

employee of the National Indian Gaming Commission, or to any law enforcement officer

when requested to do so. Individual licenses shall be carried upon the person of all

employees of all gaming operations at all times that they are on duty or shall be kept in a

readily available place on the premises of the gaming operation.

G. The Commission shall comply with all substantive and procedural requirements

of this Ordinance; the Class II Gaming Ordinance of the Osage Tribe of Indians; the Indian

Gaming Regulatory Act (IGRA), 25 U.S.C. Sections 2701 et seq; and with the Federal

Regulations implementing IGRA to be found at 25 C.F.R. Parts 501 et seq. regarding the

issuance, renewal, revocation or suspension of any license.

14
Section 2.23. Civil Fines and Civil Penalties

A. The Commission is hereby authorized to determine and to impose civil fines

and civil penalties of up to $5,000 for each separate material breach of the provisions of

this Ordinance and all other gaming ordinances of the Osage Tribe of Indians and for each

separate offense enumerated in (1) and (2), immediately below, upon any licensee or

employee of a Tribal gaming operation, upon any management contractor or employee

thereof, or upon any independently owned or operated gaming operator or employee

thereof, or upon any applicant for such a license or contract, who shall:

(I) wiliflully defraud; deceive; cheat; or misrepresent any material fact to

any official of the Commission or to the Osage Tribal Council or the National

Indian Gaming Commission during the course of the offenders application for

employment, license, or contract, or during the course of such offenders license,

employment or contract; or

(2) embezzle, steal, or otherwise unlawfully convert to the offenders own

use or possession any property belonging to the Tribe or to any gaming operation

or owner thereof, a fellow employee or licensee, or member of the gaming public

patronizing a Tribally licensed gaming facility, or

(3) harass, threaten, assault or commit a battery upon the person or

unlawfiully injure the property of any official of the Commission or of the Osage

Tribal Council or National Indian Gaming Commission, a fellow employee or

licensee, owner or operator of any gaming facility, or member of the gaming public

patronizing a Tribally licensed gaming facility.

(4) the Commission may delegate authority to such of its investigators,

supervisors, or enforcement officials as it may determine to issue written citations

to offenders for the civil fines and civil penalties provided by this Section. Such

citations shall advise an offender of the charge, the punishment which may be

imposed, his right to a hearing on the citation, and of the time, date and place of

such hearing, andprovidedfurther:

(5) Such hearings shall be conducted in accordance with the provisions of

Section 2.16, above. The Commission shall determine from the evidence

submitted as such hearing whether the civil fine or civil penalty should be assessed

or imposed. Decisions of the Commission in such instances shall be final and

unappealable.

(6) All such civil fines and civil penalties officially imposed or assessed

by such final decisions of the Commission shall be deemed to constitute a lawful

indebtedness of the offender to the Tribe.

15
(7) The Commission shall keep a continuing record of all civil penalties

and civil fines owning to the Tribe and shall include a summary thereof in its

annual report to the Osage Tribal Council. During the course of such an annual

report the Commission shall recommend to the Tribal Council charge offs of such

civil fines and civil penalties which, in the judgment of the Commission, are

uncollectible, and upon formal Resolution of the Osage Tribal Council such items

may be charged off as uncollectible, and all records shall be properly amended to

reflect such charge offs.

(8) All income from such fines and civil penalties shall be handled as

provided by Section 2.12, A. and B., above.

(9) All gaming operations licensees, applicants for such licenses,

management contractors, and employees of all gaming operations, whether

permanent or temporary, and whether of Indian or non-Indian blood or descent,

shall be deemed to have voluntarily submitted themselves, or the entities which

employ them in the case of Management Contractors or individually owned or

operated gaming facilities, to the jurisdiction of the Commission and to the

provisions of this Section and to the provisions of other relevant Sections of this

Ordinance and to the provisions of all other gaming ordinances of the Osage Tribe

of Indians by virtue of such contacts, licenses and applications therefor with the

Osage Tribe of Indians.

(10) The failure to pay any civil fine or civil penalty imposed or assessed

under the provisions of this Section by any person or entity, shall constitute

grounds and cause for revocation of licenses and shall further constitute grounds

for termination of employment of employees of Tribally licensed gaming

operations. Notwithstanding any inconsistent provisions which may be contained

in the Tribal Personnel Manual, grievance procedures contained therein shall not

be available to Tribal gaming operations employees with respect to the imposition

or assessment of civil penalties and civil fines by final orders of the Commission.

(II) All civil fines and civil penalties provided by this Section shall be in

addition to all fines, penalties, punishment, or imprisonment provided by the

provisions of 25 C.F.R. Part 11, or by other applicable Tribal, federal, or state law

in the case of both Indians and non-Indians.

(12) The Commission shall require all applicants for licenses to sign the

following statement:

Notwithstanding the fact that I am, or may be, of non-Indian blood

or descent, I hereby consent to the jurisdiction of the Osage Tribal Gaming

Commission, to the jurisdiction of the Code of Federal Regulations Court

of Indian Offenses established pursuant to 25 C.F.R. Part 11, and to all

orders and decisions thereof which may involve any and all gaming

activities of every kind and nature in which I may participate as a

16
contractor, licensee, employee, or otherwise within the jurisdiction of the

Osage Tribe of Indians, and I hereby waive all jurisdictional defenses to any

and all actions, hearings, orders, decisions or civil penalties or civil fines

which may be imposed by either of such adjudicatory bodies or tribunals.

Section 2.24. Management Contracts

A. Management contract means any contract, subcontract, or collateral

agreement between an Indian tribe and a contractor or between a contractor and a

subcontractor if such agreement provides for the management of all or part of a gaming

operation. See 25 C.F.R. Section 502.15. Under the provisions of 25 U.S.C.. Sections

2705 and 2711, and 25 C.F.R. Part 533, the Chairman of the National Indian Gaming

Commission has responsibility to investigate and the final authority to approve or to

disapprove Management Contracts.

B. The Commission shall assist the National Indian Gaming Commission in

processing management contracts applications, as requested, pursuant to the provisions of

25 C.F.R. Parts 531, 533, 535, and 537 utilizing Standard Form 85P and NIGCs

instructions and other recommended forms for the submission of required information

C. The Commission shall require all applicants for management contracts to

submit to the Commission duplicates of all documents which such applicants are required

to submit to the National Indian Gaming Commission to the Commission. The

Commission shall, thereupon, perform such investigations and provide copies of such

documents as the Osage Tribal Council may direct, to assist in a determination of the

Osage Tribal Council as to whether it wishes to enter a contract with such an applicant

before such a contract is sent to the National Indian Gaming Commission for its approval.

D. Every person or entity who applies to the Osage Tribal Council for a

management contract or for an agreement to operate a privately owned or operated

gaming facility must deposit with the Commission a fee of $2,000.00 to cover the costs of

processing the application. Additional deposits may be required if the initial deposit

proves to be inadequate to cover processing and preliminary investigation costs. All sums

not expended or charged in the processing procedure shall be returned to the applicant at

the time the application is disapproved by the Osage Tribal Council, or at the time it is

finally approved by the National Indian Gaming Commission, as applicable and required,

should the Osage Tribal Council approve the application, sign the contract, and direct that

it be submitted to the National Indian Gaming Commission for its processing,

investigation, consideration, and approval or disapproval.

E. At the initiation of each application for a Management Contract and at all

material times thereafter all applicants shall be advised by the Commission that the final

approval of such a contract is reserved to the Chairman of the National Indian Gaming

Commission and that the Tribes approval and execution of such contracts is only a

preliminary step in the final approval process.

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Section 2.25. Gaming Licenses and Background Investigations for Key Employees and

Primary Management Officials: Application Requirements

A. In conducting license and background investigations for primary management

officials and for key employees, as defined by 25 C.F.R. Section 502.19 and Section

502. 14, respectively, the Commission shall take action to ensure that all of the

requirements of 25 C.F.R. Part 501 et seq, relating thereto, are met, which shall include,

but are not limited to the following:.

1. 25 C.F.R, Section 556.2, Privacy Notice;

2. 25 C.F.R, Section 556.3, Notice regarding false statements;

3. 25 C.F.R, Section 556.4, Background investigations;

4. 25 C.F.R, Section 556.5, Report to Commission; and

5. 25 C.F.R. Section 558.1, Scope;

6. 25 C.F.R. Section 558.2, Eligibility determination for employment in a

gaming operation;

7. 25 C.F.R. Section 558.3, Procedures for forwarding applications and

reports for key employees and primary management officials to the

Commission;

8. 25 C.F.R. Section 558.4, Granting a gaming license;

9. 25 C.F.R. Section 558.5, License suspension

B. All investigative reports, whether conducted for primary management officials,

key employees, or other employees (at the discretion of the Commission), shall include all

of the following:

1. Steps taken in conducting a background investigation which should

include:

a. verification of the applicants name, place of birth, date of birth

and citizenship by requiring the applicant to provide items such as a

birth certificate, social security card, or passport;

b. confirmation of the applicants business and employment

positions held and ownership interests in those businesses currently

and for the past 5 years by attempting to contact through letter,

telephone calls or personal visits to past employers listed in the

18
application and through documentation such as copies of

partnership agreements, stock certificates, and IRS returns;

c. obtainment of the applicants driving record by using applicants

drivers license number to contact the Department of Motor

Vehicles in the state where such license is issued;

d. ascertainment of character information about the applicant by

contacting personal references identified in the application;

e. inquiry into any existing or previous business relationships the

applicant has had with Indian tribes, including the scope of those

relationships, by contacting those tribes identified in the application

and also inquiry with other state and federal entities that have

contact with Indian tribes to obtain other information available;

f. gathering of information about any existing or previous business

relationships the applicant may have had in the gaming industry,

including the scope of those relationships, by contacting those

entities identified in the application, and, where appropriate,

contacting other state gaming agencies or the NTGC to obtain other

information available;

g. verification of the applicants history and status with any

licensing agency identified by the applicant with which the applicant

has applied for an occupational license or permit by contacting

those agencies;

h. obtainment of information regarding any past felonies,

misdemeanor convictions, or criminal charges within the last 10

years by contacting state, city, county and tribal courts, and state,

local and tribal police departments in the applicants areas of

residence and obtaining as much information as possible through

public court records and requiring an applicant to submit any court

documents pertaining to the applicants civil or criminal history;

i. obtainment and verification of any other information deemed

relevant or desirable by either the Commission or by the Osage

Tribal Council. Such may include the use of a credit reporting

agency;

j. satisfaction as to the accuracy of the information contained in the

application and analysis thereof. Where questions arise (i.e.,

information is obtained about an applicants criminal activities,

financial problems, character deficiencies) the documentation

should include a further probe into the applicants background and

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either broaden the scope of the investigation or focus in more detail

on a potential problem area. During this phase of the investigation,

analysis and report the depth of the background investigations will

vary considerably. The adequacy of each background investigation

will depend upon the detailed analysis of the information obtained

through the investigative process.

C. Fingerprint checks and application for, receipt of, and use of criminal history

record information (CFIRI) must comply with the following policy guidance and meet the

following qualifications:

1. The Commission and the Tribal Police Force shall comply with NIGC

procedures for the processing of fingerprint cards, as set forth in NCIG Bulletins

Nos. 93-2, 96-2, 96-5, 5001 and 25 C.F.R. 522.2(h).

2. The procedures set forth in NCIG Bulletin No. 93-2, including the

execution of an NCIG prescribed memorandum of understanding for Tribal receipt

and use of criminal history information (CHRI) contained in that publication.

3. The Commission and/or the Tribal Police Force, as necessary and

required to accomplish a full criminal history records information (CI-IRI) check,

shall utilize the services of NC1G. State regulatory and law enforcement agencies,

and other available sources, as may be provided by applicable law and by existing

agreements between such agencies and the Federal Bureau of Investigation. The

Commission is authorized to pay such costs and fees as are necessary to acquire

the required information. In conducting such criminal history information

background investigations the Commission and/or the Osage Tribal Police Force

shall also seek information from the sources listed in Subsection D., immediately

below.

D. The Commission should seek information, when needed, from the following

agencies:

1. Federal Agencies:

a. Department of the Interior (BIA, Inspector General);

b. National Indian Gaming Commission;

c. U.S. District and Appellate Courts -

civillcriminal/bankruptcy;

d. U.S. Attorneys;

2. State Agencies and Organizations:

a. State Gaming Boards and Commissions;

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b. Department of Public Safety;

c. Department of Motor Vehicles;

d. Secretary of State -

Corporations Divisions;

e. State Bar Associations/Accountancy Boards/Contractor Boards/

Other state licensing agencies;

f. State Crime Commissions;

g. State Courts - civil and criminal;

3. County/City Agencies and Organizations:

a. County Courts -

civil/criminal;

b. County Licensing Departments;

c. Recorder of the Deeds/Assessors Office/Treasurers Office;

d. County Sherilrs Office;

e. City Police Departments;

£ Chambers of Commerce;

g. Better Business Bureaus.

E. Before issuing a license to a primary management official or a key employee,

the Commission shall forward to the NIGC investigative reports on each background

investigation conducted. Each investigative report must include the following:

1. A description of the steps taken in conducting the background

investigation. The steps taken may be provided by:

a. A step-by-step recitation of the work done, or

b. A checklist or program with indication of procedures completed.

2. An explanation of the results obtained. This may be supplied by listing

exceptions, areas of concern, or negative information obtained during the

course of the investigation.

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3. A statement as to the conclusions reached. Where no exception, area of

concern or negative information was obtained, the report should so state.

Where exceptions, areas of concern or negative information was obtained,

the conclusions as to each should be provided.

4. The bases or justifications for each of the conclusions.

5. The Commission shall use the report form provided by NIGC which

meets the requirements of 25 C.F.R. Section 556.5, contained in NIGC

Bulletin 94-4 in all appropriate cases. The Commission shall also require

all applicants for licenses to sign the Authorization for Release of

Information form provided by NIGC Bulletin 94-4 and forward an original

copy thereof to NIGC with each investigative report submitted.

F. Suitability Determination

1. The Commission shall, using NICG prescribed forms, furnish a written

Suitability Determination with each investigative report to NIGC. An authorized

Commission official must review a persons prior activities, criminal record, if any,

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

employment in the gaming operation. If the authorized Commission official, in

applying the standards adopted by Tribal ordinances, determines that employment

poses a threat to the public interest or to the effective regulation of gaming, or

enhances the dangers of unsuitable, unfair, or illegal practices and methods in the

conduct of gaming, a management contractor or a tribal gaming, or an individually

owned or operated gaming operation, shall not employ that person in a key

employee or primary management official position.

G. Licensing

1. Upon completion of a background investigation and a determination of

eligibility (suitability) for employment in a gaming operation, the Commission must

forward an investigative report and suitability determination to the NIGC within 60

days after an employee begins work. The Chairman of the NTGC may, during the

ensuing 30 days, request additional information from the Commission concerning a

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

Such a request suspends the 30 day period until the Chairman of the NIGC

receives the additional information.

2. If the NTGC notifies the Commission that it has no objections to the

issuance of a license to a particular applicant, the Commission may issue a license

to such applicant. If the NTGC provides the Commission with a statement

itemizing objections to the issuance of a license to a particular applicant, the

Commission must reconsider the application, taking into account the objections

itemized by the NIGC. The Commission, however, shall make the final decision

whether to issue a license to such applicant.

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H. NTGC Forms To Be Used and Recommended Procedures To Be Followed

The Commission shall utilize all forms recommended to be used by the

NIGC and all procedures to be used contained in current NIGC Bulletins and

amendments thereto.

Section 2.26. Compliance and Enforcement by the National Indian Gaming Commission

A. The Commission shall immediately advise the Osage Tribal Council if and

when any actions of the National Indian Gaming Commission which affect the Osage Tribe

of Indians occur as set forth in 25 C.F.R. Part 570, Subpart AGeneral; 25 C.F.R. Part

570, Subpart BInspection of Books and Records; andlor 25 C.F.R. Part 570, Subpart

CSubpoenas and Depositions, occur. In such instances the Commission shall take all

necessary actions and issue all necessary orders to comply with all requests and orders of

the National Indian Gaming Commission.

B. The Commission take such action as is necessary, subject to the provisions of

of Section 2.19, above, to insure that the provisions of 25 C.F.R. Part 571, Subpart

DAudits, are met.

C. The Commission shall immediately advise the Osage Tribal Council if and when

any actions of the National Indian Gaming Commission which affect the Osage Tribe of

Indians occur as set forth in 25 C.F.R. Part 573, Enforcement. In such instances

the Commission shall take all necessary actions and issue all necessary orders to comply

with all requests and orders of the National Indian Gaming Commission.

D. The commission shall immediately advise the Osage Tribal Council if and when

any actions of the National Indian Gaming Commission which affect the Osage Tribe of

Indians occur as set forth in 25 C.F.R. Part 575Civil Fines. In such instances the

Commission shall take all necessary actions and issue all necessary orders to comply with

all orders of the National Indian Gaming Commission, after receiving advice and consent

from the Osage Tribal Council.

E. The Commission shall consult with the Osage Tribal Council and with its

attorneys concerning any appeal of any action of the National Indian Gaming Commission

which should be appealed to the National Indian Gaming Commission pursuant to the

provisions of 25 C.F.R. Part 577Appeals Before the Commission. The Commission shall

thereupon take all necessary actions and issue all necessary orders to perfect such an

appeal, if authorized by the Osage Tribal Council. The Commission shall, with the advice

of Tribal legal counsel, recommend appeals of final decisions of the National Indian

Gaming Commission to the appropriate Federal Court, when advisable and when such

appellate rights are authorized by law.

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F. The Commission shall take all necessary action and issue all necessary orders to

insure that all fees due and payable to the National Indian Gaming Commission pursuant

to the requirements of 25 C.F.R. Part 514Fees, and promptly and fully paid and that all

reports and other requirements of such Part are fully met.

G. The Commission shall take all necessary actions and issue appropriate orders

to insure that all facilities operators fuily comply with Internal Revenue Service

Regulations regarding the reporting of prize moneys won by members of the gaming

public at all licensed facilities.

Section 2.27. Service upon the Tribe by the National Indian Gaming Commission

A. The Chairman of the Gaming Commission of the Osage Tribe of Indians is

hereby designated to be the service agent for the Tribe to comply with the requirement of

25 C.F.R. Section 519.1. The Chairman shall, by written communication, keep the

National Indian Gaming Commission currently advised at all times of his designation,

name and address.

B. The Commission shall take all necessary action and issue all necessary orders

to insure that each management contractor or tribal operator or individually owned or

operated gaming facility licensed by the Tribe complies with the provisions of 25 C.F.R.

Section 519.2 regarding the designation of a service agent to the National Indian Gaming

Commission.

C. The Commission shall establish procedures, rules, and standards for the

maintenance, upkeep, sanitation, environmental considerations, security, public peace,

security of the gaming public, protection of Tribal funds and assets, conduct and training

of employees, and all other matters incident to or required for the successful and profitable

operation of each such facility and protection of Tribal interests.

Section 2.28 Limitations on Hiring of Employees

The Commission shall not issue a license to any employee of a Management Contractor or

individually owned or operated gaming facility or Tribally owned gaming facility who:

A.. Is less than 16 years of age;

B.. Has been convicted by any court of competent jurisdiction of a felony, a

gaming offense, or other crime, including misdemeanors, involving moral turpitude; or

C. Holds any elective or appointive office or position with the Osage Tribe of

Indians, including, but not limited to the Osage Tribal Council.

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Section 2.29. Implied Consent for Audits and Reviews

Any person, organization, or corporation which applies for or receives a license to

conduct Class II gaming operations pursuant to this Ordinance shall be deemed to have consented

to the audit and review of its records by authorized accounting and law enforcement agencies or

officers of the Tribe without notice or warrant at any reasonable time, including spot checks or

field audits of its operations during gaming sessions in return for the privilege of conducting Class

II gaming operations within the Tribal jurisdiction.

Section 2.30. Age Restrictions

The Commission shall monitor gaming operations to insure that no person under the age

of sixteen (16) years of age shall be permitted to play Class II games at any location licensed

under the provisions of this Ordinance.

Section 2.31. Discrimination Prohibited

The Commission shall monitor all gaming operations to insure that no person shall be

discriminated against due to race, color, creed, sex, or national origin at any gaming operation

conducted within the jurisdiction of the Tribe.

Section 2.32. Indian Preference Required

Every manager, contractor, operator, or owner of any Class II gaming facility licensed by

the Commission under this Ordinance shall give preference in hiring and employee retention

practices primarily to those of Osage Indian descent and secondarily to members of other federally

recognized Indian tribes. Proof of such descent may be established by either an official tribal

membership card or by a Certificate of Degree of Indian Blood issued by either the Bureau of

Indian Affairs or by a federally recognized Indian tribe. The Commission shall monitor

compliance with this Section and and report infractions to the Osage Tribal Council.

Section 2.33. Requirements to Receive a Prize

The Commission require that all facilities establish rules to be prominently posted at all

Class II gaming facilities regarding how prizes are won and the eligibility of a person to receive a

prize which must include acceptable proof of the winners name, address, and social security

number, a signed receipt acknowledging acceptance and receipt of the prize awarded, and

execution of required Internal Revenue Service (IRS) forms, when applicable.

Section 2.34. Disputes Between the Gaming Public and Gaming Operations Operators

A. All disputes between members of the gaming public and operators or

employees of gaming facilities shall be promptly and amicably reconciled by the managing

official or his authorized representative.

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B. In cases where such disputes can not be promptly and amicably settled, such

shall be referred to an investigator/arbitrator by the managing official of the gaming

operation, or the intervention of such an investigator/arbitrator may be requested by the

aggrieved member of the gaming public. The investigator/arbitrator shall be an employee

of the Commission who has been assigned such duties on a regular basis. The

investigator/arbitrator shall make all reasonable efforts to amicably settle such a dispute.

Should such a settlement not be effected, the investigator/arbitrator shall promptly make a

written report on the controversy and advise the Chairman who shall, in turn, promptly

schedule a hearing by the Commission on the matter, giving all involved parties reasonable

notice of the time, place and date of the hearing. The hearing shall be conducted pursuant

to the provisions of Section 2. 16, above. The Commission shall either dismiss the

grievance or enter an order against the operator or the facility to effect fairness, justice

and equity. In proper cases the Commission may also impose a civil penalty or a civil fine

upon the facility, its operator or any of its employees found to have committed a material

wrong against a member of the gaming public. Appeals from such decisions of the

Commission may only be taken as hereinabove provided under Section 2.17.

C. No liability of any kind or nature shall ever attach to the Osage Tribe of Indians

as a result of any such dispute or the final decision of the Commission thereon. The

Sovereign Immunity of the Osage Tribe of Indians against lawsuits or of its officials,

acting in their official capacities, is expressly reserved in any such instance.

D. A copy of the provisions of this Section 2.34 shall be appropriately posted in

plain view of the gaming public at all gaming facilities within the jurisdiction of the Tribe.

Section 2.35. Severability

The provisions of this Ordinance are severable. If any part or provision hereof shall be

held to be void by any court of competent jurisdiction, the decision of the court so holding shall

affect or impair any of the remaining parts or provisions of this Ordinance.

Section 2.36. Effective Date

This Ordinance shall be effective from and after the date of approval by the Osage Tribal

Council.

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CERTIFICATION

I hereby certify that the above and foregoing ordinance is a true, accurate and exact copy

of the Gaming Commission Ordinance of the Osage Tribe of Indians adopted by formal

Resolution No. _________

of the Osage Tribal Council on the ________

day of

_________________________

1998, a copy of which is attached hereto, and that said Resolution

expressly authorized me to make this certification.

Charles 0. Tillman, Jr.

Principal Chief

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RESOLUTION

OF THE

OSAGE TRIBAL COUNCIL

Resolution No. ____________

WHEREAS:

1. The Osage Tribal Council, organized pursuant to provisions of the Act of June 28, 1906,

34 Stat. 539, as amended, is the elected governing body of the Osage Tribe of Indians, and

2. The Osage Tribal Council has determined that a Gaming Commission Ordinance setting

detailed procedures for the regulation of Class II Gaming within the Tribal jurisdiction is

necessary and desirable; and

3. Such a Gaming Commission Ordinance has been developed and presented to the Osage

Tribal Council; and

4. The Osage Tribal Council has fully considered and reviewed this Ordinance; and

5. The Osage Tribal Council desires to adopt this Ordinance, to also be called Title II,

Gaming Ordinance of the Osage Tribe of Indians. THEREFORE BE IT

RESOLVED:

1. That the Gaming Commission Ordinance of the Osage Tribe of Indians, also known as

Title II, Gaming Ordinances of the Osage Tribe of Indians, a copy of which is attached hereto, be,

and the same is, hereby adopted as the official Gaming Commission Ordinance of the Osage Tribe

of Indians.

2. That the Principal Chief, or in his absence the Acting Principal chief, is hereby authorized

to certify the Ordinance as the official Gaming Commission Ordinance of the Osage Tribe of

Indians and transmit three original copies thereof to the Chairman of the National Indian Gaming

Commission.

3. That the Principal Chief, or in his absence the Acting Principal Chief, is hereby authorized

to sign the Resolution.
CERTIFICATION

I hereby certif~ that the foregoing Resolution No. 29 was considered by the

Osage Tribal Council at a duly called meeting in Pawhuska, Oklahoma, at which a quorum was

present and the same was adopted by a vote of_____ in favor, ______

opposed, and ________

absent, this _________

day of ~

1998.

ATTEST:

___________________________

Principal Chief

Secretary