B. Upon issuance, the Gaming Commission shall have attached to
each video game of chance licensed under the provisions of this
Ordinance, an unremovable identification plate on the exterior cabinet
which contains the information as required by the Tribal/State Compacts.

Section 303: Classes of Licenses

Upon proper application and approval, the following classes of licenses may be
issued by the Gaming Commission:

A. Class A license for a gaming enterprise in which a gaming operator
wishes to conduct Class II gaming at a Community gaming enterprise; the
license shall be site-specific;

B. Class B license for a gaming enterprise in which a gaming operator
wishes to conduct Class II| gaming at a Community gaming enterprise; the
license shall be site-specific;

Cc. Class C license to any management official or key employee of
either a gaming operator or the Community; the license shall be valid for a
period of one year and a Class C-1 license to any other employee, not
licensed as a management official or key employee, of a gaming operator
or the Community employed in a gaming enterprise licensed under the
provisions of this Ordinance; the license shall be valid for a period of one
year.

D. Class D license to any distributor or manufacturer of gambling
equipment and/or video games of chance to be used in a Community
gaming enterprise; the license shall be valid for a period of one year.

E. Class E license for each video game of chance to be used in a
Community gaming enterprise;

Section 304: Renewal

All licenses granted pursuant to this Title Ill must be renewed on an annual basis
in accordance with the procedure set forth in Section 301.

Section 305: License Fees

Annual license fees shall be set by the Gaming Commission for gaming
distributors, non-gaming vendors, management officials and employees.

17


(D) Every felony of which the applicant has been
convicted or any ongoing prosecution.

(iv) | A copy of the eligibility determination.
(c) All notices under this part shall be provided to the
Commission through the appropriate Regional office.

F. Notification to NIGC of license decisions and retention
obligations.

(a) After a tribe has provided a notice of results (NOR) of the
background check to the Commission, a tribe may license a primary
management official or key employee.

(b) | Within 30 days after the issuance of the license, a tribe shall
notify the Commission of its issuance.

(c) A gaming operation shall not employ a key employee or
primary management official who does not have a license after ninety (90)
days.

(d) If a tribe does not license an applicant —

(1) The tribe shall notify the Commission; and

(2) Shall forward copies of its eligibility determination and
notice of results (NOR) to the Commission for
inclusion in the Indian Gaming Individuals Record
System.

(e) A tribe shall retain the following for inspection by the Chair or
his or her designee for no less than three years from the date of
termination of employment:

(1) Applications for licensing;
(2) Investigative reports; and
(3) Eligibility determinations.

G. Review of notice of results for a key employee of primary
management official.

(a) | Upon receipt of a complete notice of results for a key
employee or primary management official as required by §556(b)(2), the
Chair has 30 days to request additional information from a_ tribe
concerning the applicant or licensee and to object.

(b) If the Commission has no objection to issuance of a license,
it shall notify the tribe within thirty (30) days of receiving notice of results
pursuant to §556.6(b)(2).

Il


CONTENTS

Title I: General Provisions
Section 100: Short Title
Section 101: Findings and Intent
Section 102: Purpose
Section 103: Gaming Authorized
Section 104: Ownership of Gaming
Section 105: Use of Gaming Revenue
Section 106: Audit
Section 107: Protection of the Environment
Section108: Licenses for Key Employees & Primary Management Officials
Section 109: License Locations
Section 110: Definitions
Section 111: Severability

Title Il: Regulation and Enforcement
Section 200: Upper Sioux Community Gaming Commission
Section 201: Regulations
Section 202: Hiring and Training
Section 203: Hearing Officer
Section 204: Hearings
Section 205: Sanctions

Title Ili: Licensing of Distributors, Employees and Fees
Section 300: License Required
Section 301: Application for License
Section 302: Machine Leases
Section 303: Classes of Licenses
Section 304: Renewal
Section 305: License Fees

Title IV: Rules and General Applicability
Section 400: Rules of Gaming Operation
Section 401: Dispute Resolution
Section 402: Restriction for Gaming Enterprise

Title V: Reserved for Future Use



TITLE IV: RULES AND GENERAL APPLICABILITY

Section 400: Rules of Gaming Operations

Each licensee operating a gaming enterprise under a license issued pursuant the
provision of this Ordinance shall prominently display in writing all rules and
regulations pertaining to all gaming activity, including but not limited to traditional
bingo, other games of chance and video games of chance, near the specific
locations where such gaming activity is conducted; or shall make a written copy
of all such rules and regulations available to any person making a request for
such.

Section 401: Dispute Resolution

Any person who disagrees with a final decision made by the Gaming
Commission including, without limitation, those decisions regarding licensing,
suitability determination, compliance with applicable law and other regulatory
matters, must, within (30) days of receipt of a written decision, send a written
request to the Gaming Commission and the Upper Sioux Community Tribal
Court requesting a hearing before the Tribal Court.

The matter will be scheduled for a hearing before the Tribal Court within thirty
(30) days of the receipt of the written request for a hearing. The Tribal Court
shall review the Gaming Commission's findings and may hear testimony and
accept evidence before making a final decision. The Tribal Court shall use an
arbitrary and capricious standard of review when rendering its decision.

The decision of the Tribal Court shall be final.

Section 402: Restriction for Gaming Enterprise

The Upper Sioux gaming enterprise must at all times observe the following
restrictions on gaming activities:

A. No credit extended: All gaming shall be conducted on a cash basis.
Except as herein provided, no person shall be extended credit for gaming
by any gaming enterprise. This restriction shall not apply to credits won by
players who activate plays on video games of chance after inserting coins
or currency into the game, and shall not restrict the right of a gaming
enterprise to offer check cashing or to install or accept bank card or credit
card transactions in the same manner as would normally be permitted at
any retail business within the State of Minnesota.

18


CERTIFICATION

We, the undersigned members of the Upper Sioux Community Board of
Trustees, do hereby certify that the foregoing Ordinance was duly adopted and

approved on _QQ eer , 2013, by a vote of 5 __ For,
Against, and with __@_ Abstentions.

Kevin Jensvold, Chairman Travis Leenerts, Vice Chairman

Upper Sioux Community Upper Sioux Community

Board of Trustees Board of Trustees

Unweh Utyeee |
AWW D gu 1

Amy LaBatte, Secretary Sharon Odegard, Treasurer¢

Upper Sioux Community Upper Sioux Community

Board of Trustees Board of Trustees

Nenbew tr BDO BA
Marlow LaBatte, Member at Large

Upper Sioux Community
Board of Trustees

20


TITLE Ill. __ LICENSING OF DISTRIBUTORS, EMPLOYEES, FEES.

Section 300: License Required

Any person, organization or entity (including management officials and key
employees), on behalf of the Community, conducting a public gaming enterprise
pursuant to the provisions of this Ordinance or any person, organization or entity
selling, leasing or otherwise distributing gambling equipment or video games of
chance to the Community, shall be required to have a license. Community public
gaming operations being conducted within the jurisdiction of the Community
without the lawful written approval of the Gaming Commission is prohibited.

Section 301: Application for License

Any person, organization or entity selling, leasing or otherwise distributing
gambling equipment or video games of chance to the Community, the application
shall contain the following information:

A. The name(s) and mailing address of the person or entity making
the application;

B. The name(s) and addresses of all interested parties (including
those with direct or indirect financial interest and their interest and
connection to the applicant);

Cc. The nature of the license applied for; the type of activity to be
engaged in under the license;

D. Explicit and detailed disclosure of any criminal record, including any
delinquent taxes owned to the State of Minnesota, of the applicant, any
person involved in the organization, and any party of interest whose name
appears on the application;

E. Any additional information necessary to allow the Community or the
State of Minnesota to investigate the applicant or any person included on
the application;

F. Whether the applicant, if a distributor of gambling equipment, has
been properly licensed by the State of Minnesota pursuant to Minnesota
Statute section 349.151; and proof of being the holder of a current and
valid distributor or manufacturer license from the State of Minnesota; or
properly licensed and holding a current and valid license from either the
State of New Jersey, Nevada or South Dakota;

15


(2) | To set working policy for the gaming operation.

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

B. Application Forms.

1. The following notice shall be placed on the application form
for a key employee or a primary management official.

In compliance with the Privacy Act of 1974, the following
information is provided: Solicitation of the information on this form
is authorized by 25 U.S.C 2701 et seg. The purpose of the
requested information is to determine the eligibility of individuals to
be granted a gaming license. The information will be used by the
Tribal gaming regulatory authorities and by the National Indian
Gaming Commission (NIGC) members and staff who have need for
the information in the performance of their official duties. The
information may be disclosed by the Tribe or the NIGC 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 NIGC 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. A false statement on any part of your 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).

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.



1. Protect gaming as a means of promoting Tribal economic
development;

2. Ensure that gaming is conducted fairly and honestly by both
the operators and players as a means of providing both recreation
and entertainment, entirely free from organized crime and other
corrupting influences;

3: Ensure that construction and maintenance of all gaming
facilities, and the operation of gaming conducted at those facilities,
shall at all times protect the environment, the public health and
welfare, and the sovereignty of the Upper Sioux Community, and
that such gaming shall comply with all applicable Tribal, Federal,
and Tribal-State Compact laws;

4. Establish and enforce an adequate system of internal
controls that will result in accountability for revenues generated
from the gaming facilities; maintain an adequate system to
implement necessary background investigations, licensing, and
monitoring of employees at gaming facilities; and establish and
maintain an adequate system for the investigation, enforcement,
and prosecution of violations of this Ordinance and the attendant
rules and regulations adopted by the Community.

Section 102: Purpose

The purpose of this Ordinance is to regulate the conduct of Class II and Class III
gaming activities on the trust land of the Upper Sioux Community.

A. All gaming activities shall be conducted exclusively on “Indian
Lands” as defined by 25 U.S.C. §2703(4) and 25 C.F.R. §502.12, and
limited by 25 U.S.C. §2719.

B. All gaming activities shall be conducted under the exclusive control
and responsibility of the Upper Sioux Community;

Section 103: Gaming Authorized

Class || and Class III gaming as defined in the Indian Gaming Regulatory Act,
P.L. 100-447, 25 U.S.C. Section 2701 et-seq. is hereby authorized.



Title |: GENERAL PROVISIONS

Section 100: Short Title

This Ordinance shall be known as the Upper Sioux Community Gaming
Ordinance. It is promulgated pursuant to Provision 9(H) of the Constitution of the
Upper Sioux Community.

Section 101: Findings and Intent

The Upper Sioux Community Board of Trustees finds that:

A. The Upper Sioux Community is a sovereign entity retaining the
powers of self-government and self-determination;

B. The Upper Sioux Community desires to continue to exercise its
inherent authority over its internal affairs;

Cc. The Upper Sioux Community requires methods for maintaining a
base from which to generate revenues for self-perpetuation and essential
governmental services;

D. A gaming facility came into existence at the Upper Sioux
Community following the passage of the Indian Gaming Regulatory Act of
1988, P.L. 100-497. The Upper Sioux Community shall have proprietary
interest and responsibility for the conduct of any gaming on Community
lands in a manner commensurate with the best interests of the people of
the Upper Sioux Community.

E. This Ordinance addresses as required all provisions of the Indian
Gaming Regulatory Act of 1988, P.L. 100-497.

Further, the Upper Sioux Community Board of Trustees has determined that the
intent of this Ordinance is to:

F. Foster a spirit of cooperation with the Federal Government through
cooperation with the National Indian Gaming Commission regarding the
regulation of Class Il gaming;

G. Foster a spirit of cooperation with the State of Minnesota in the
regulation of Class III gaming;

H. Regulate gaming on Tribal lands and other lands within the
jurisdiction of the Upper Sioux Community, in compliance with the Tribal-
State Gaming Compact and other applicable law;



G. Whether the applicant, if a distributor of gambling equipment, has
ever had a distributor or manufacturer license revoked or suspended by
the state that issued the license and, if so, the circumstances surrounding
the state's action;

H. A statement of waiver allowing the Community and the State of
Minnesota to conduct a background investigation of the applicant and any
person whose name is required to appear on the application;

I. Whether the applicant or any person whose name is required to
appear on the application maintains any involvement in the business of
wholesale distribution of alcoholic beverages.

Section 302: Machine Leases

In addition to a distributor license provided for in Section 301, the person or
entity with whom the Community enters into a lease or sales agreement
regarding video games of chance must obtain from the Gaming Commission an
annual non-transferable license for each video game of chance to be placed in a
gaming enterprise operating under the provision of this Ordinance.

A. An application for a license for a video game of chance shall
contain the following information:

1. The name and address of the applicant with proof of a
current and valid distributors or manufacturer license issued by a
state and the Community.

2. Identification numbers or codes for each video game of
chance placed in a Community gaming enterprise, including the
manufacturer, the serial number and the model number.

3. Proof of approval and certification of the machine by an
approved gaming test laboratory or proof that the video game of
chance conforms precisely to the exact specifications of the video
game of chance prototype tested and approved by the gaming test
laboratory.

4. All other information as required by the Tribal/State
Compacts;

5. Proof of a current and valid video game of chance license
issued by the State of Minnesota pursuant to Minnesota Statute
section 349.52.

16


Section 108: Licenses for Key Employees and Primary Management
Officials

The Tribe shall ensure that the policies and procedures set out in this section are
implemented with respect to key employees and primary management officials
employed at any Class II or Class III gaming enterprise operated on Tribal lands:

A. Definitions.
For the purposes of this section, the following definitions apply:
1. Key employee means:

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

(1) Bingo caller;

(2) | Count 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;

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

(11) Any other person designated by the Gaming
Commission as a key employee.

(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. Primary Management Official means:

(a) | The person having management responsibility for a
management contract;

(b) — Any person who has authority:

(1) To hire and fire employees; or



2 y
: 5
a}
x
Ve comm?

May 20, 2013
Via First Class Mail

Kevin Jensvold, Chairman
Upper Sioux Tribe

5722 Travers Lane
Granite Falls, MN 56241

Re: Upper Sioux Community Tribal Amended Gaming Ordinance
Dear Chairman Jensvold:

This letter responds to your request for the National Indian Gaming Commission to
review and approve the amended Upper Sioux Community Tribal Gaming Ordinance
submitted with Resolution No. 005-CY2013 on February 26, 2013. The amended
ordinance includes technical and substantive revisions to the current ordinance that was
approved on November 12, 2003. The changes include modifying language in the
definition of “key employee” and revising the background and licensing provisions to
comply with the new NIGC regulations, 25 C.F.R. parts 556 and 558.

Thank you for bringing this amended gaming ordinance to my attention and for
providing me with a copy of the updated ordinance, which will be posted on the NIGC
website. The amended ordinance is approved, as it is consistent with the requirements of
the Indian Gaming Regulatory Act and NIGC regulations.

If you have any questions, please feel free to contact Attorney Jennifer Ward at

202-632-7003.

Sincerely,

Mocmze

Tracie L. Stevens
Chairwoman

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

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


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;

(j) 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;

(k) — A photograph;
(I) Any other information the tribe deems relevant; and

(m) Fingerprints consistent with procedures adopted by
the tribe according to 25 CFR §522.2 (h).

(n) If, in the course of a background investigation, a tribe
discovers that the applicant has a notice of results on file with the
NIGC from a prior investigation and the tribe has access to the
earlier investigative materials (either through the NIGC or the
previous tribal investigative body), the tribe may rely on thos
materials and update the investigation and investigative report
under §556.6(b)(1).

(0) — In conducting a background investigation, a tribe or its
agents shall keep confidential the identity of each person
interviewed in the course of the investigation.

2. The Tribe shall conduct an investigation sufficient to make
an eligibility determination under subsection D below.

D. Tribal Eligibility Requirements.

The tribe shall conduct an investigation sufficient to make an eligibility
determination.
(a) | To make a finding concerning the eligibility of a key
employee or primary management official for granting of a gaming
license, an authorized tribal official shall review the person’s:

(1) Prior activities;
(2) Criminal record, if any; and
(3) | Reputation, habits and associations.



Cc. Background Investigations.

1. The Tribe shall request from each primary management
official and from each 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 five (5) years: Business
and employment positions held, ownership interested in those
businesses, business and residence addresses, and driver's
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;

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 of disposition;

(i) For each criminal charge (excluding minor traffic
charges), whether or not there is a conviction, if such criminal



Section 104: Ownership of Gaming

The Tribe shall have the sole proprietary interest in and responsibility for the
conduct of any gaming operation authorized by this Ordinance.

Section 105: Use of Gaming Revenue

A. Net revenues from Class II and Class III gaming shall be used only
for the following purposes: to fund tribal government operations and
programs, provide for the general welfare of the Tribe and its members;
promote Tribal economic development; donate to charitable organizations;
or help fund operations of local government agencies.

B. 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. 2710 (b) (3).

Cc. The USC Gaming Commission shall oversee the transfer of funds
to ensure the percentages of the Upper Sioux Community Per Capita Plan
are met. Once this is completed, their responsibility for overseeing the
proper distribution of funds ends.

Section 106: Audit

A. The Tribe shall cause to be conducted annually an independent
audit of gaming operations and shall submit the resulting 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 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 107: Protection of the Environment

Class Il and Class Il gaming facilities shall be constructed, maintained and
operated in a manner that adequately protects the environment and the public
health and safety.



B. Minimum age for players: No person below the age of eighteen
(18) shall be permitted to participate in the gaming in any gaming
enterprise licensed under the provisions of this Ordinance. If any persons
below the age of eighteen (18) years plays and otherwise qualifies to win
any prize, the prize shall not be paid. The estimated amount wagered
during the course of the game may be returned to the player at the
discretion of the casino.

Cc. Regulation of alcohol: no gaming enterprise shall allow to be sold
or otherwise make available any beverage containing alcohol except in
strict compliance with the Upper Sioux Community Liquor Control
Ordinance.

D. Prohibition on firearms: no firearms or air guns which are capable
of discharging dangerous projectiles or gases including, but not limited to,
“bb's” or CO2 guns, rifles, shotguns, pistols or revolvers", shall be allowed
in the premises except as permitted for security by an employed security
force or other city, state, tribal or federal law enforcement officers in the

course of their official duties.

E. Other rules of conduct and regulations will be developed by the
Gaming Commission as needs arise.

TITLE V: RESERVED FOR FUTURE USE

19


UPPER SIOUX
COMMUNITY

GAMING ORDINANCE

Revised February 2013

Reviewed and revised by L.E.R.: February 19, 2013
Reviewed and revised B.J.L.: February 18, 2013
Reviewed and revised B.O.T.: 31 July 2003
Reviewed and revised B.J.L.: 29 June 2003
Reviewed and revised L.E.R.: May 30, 2003



(c) If, within the 30-day period described in §558.3(a), the
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 applicant for whom the tribe has provided a notice of results, the
tribe shall reconsider the application, taking into account the objections
itemized by the Commission. The tribe shall make the final decision
whether to issues a license to such applicant.

(d) If the tribe has issued the license before receiving the
Commission’s statement of objections, notice and hearing shall be
provided to the licensee as provided by §558.4.

H. Notice of information impacting eligibility and licensee’s right
to a hearing.

(a) If, after the issuance of a gaming license, the Commission
received reliable information indicating that a key employee or primary
management official is not eligible for employment under §556.5, the
Commission shall notify the issuing tribe of the information.

(b) Upon receipt of such notification, the tribe shall immediately
suspend the license and shall provide the licensee with written notice of
suspension and proposed revocation.

(c) A tribe shall notify the licensee of a time and a place for a
hearing on the proposed revocation of a license.

(d) A right to a hearing under this part shall vest only upon
receipt of a license granted under and ordinance approved by the Chair.

(e) After a revocation hearing, a tribe shall decide to revoke or
to reinstate a gaming license. A tribe shall notify the Commission of its
decision within 45 days of receiving notification from the Commission
pursuant to paragraph (a) of this section.

Section 109: License Locations

The Tribe shall issue a separate license to each place, facility, or location on
Indian lands where gaming is conducted under this ordinance.

Section 110: Definitions

The definitions stated in 25 CFR part 502 are incorporated herein by reference.

12


TITLE Il: REGULATION AND ENFORCEMENT

Section 200: Upper Sioux Community Gaming Commission

There is hereby established an Upper Sioux Community Gaming Commission
(“Gaming Commission”) for the exclusive purpose of regulating and monitoring
gaming on behalf of the tribe. The Board of Trustees shall appoint three (3)
Upper Sioux Community members or other persons with gaming experience to
the Gaming Commission to serve in accordance with this title and the Gaming
Commission's operating regulations. The Gaming Commission shall appoint
inspectors or agents for the purpose of conducting observations or inspections in
the gaming facility.

Section 201: Regulations

The Gaming Commission shall develop procedural regulations to enforce this
Ordinance, subject to review and approval by the Board of Trustees.

Section 202: Hiring and Training

Due to the high unemployment of the Upper Sioux Community members,
preference in hiring will be given to Indian Community members and then to
other American Indian persons as permitted by federal law. This rule shall be
enforced in hiring, training and promotion.

Section 203: Hearing Officer

The Gaming Commission may appoint a hearing officer with legal training to hear
a dispute that may come before the Gaming Commission concerning this
Ordinance and regulations and enforcement. The hearing officer will make
recommended findings and reasons for the Gaming Commission.

Section 204: Hearings

The Gaming Commission shall provide a hearing prior to final action concerning
suspending or revoking a license, if requested; and as allowed or set by
regulation or law.

Section 205: Sanctions

Violations of this Ordinance will subject a person to sanctions that may include
fine and suspension as appropriate. Unlawful trespass will prompt immediate
response and appropriate sanction. The Gaming Commission, subject to review
and approval by the Board of Trustees, shall set up a schedule of fines and
sanctions as deemed necessary.

14


2) Section 108 was amended to reflect an additional definition to Key
employee; and

3) Updating and amending those sections that pertain to 25 CFR Parts 556
and 558 as defined in the NIGC final rule dated January 25, 2013 as
published in the Federal Register.

THEREFORE BE IT RESOLVED that the Upper Sioux Community Board of Trustees
does hereby adopt the attached amended “Upper Sioux Community
Gaming Ordinance”, regulating Class I] and Class HI gaming in
compliance with the Indian Gaming Regulatory Act and National Indian
Gaming Commission Regulations.

BE IT FURTHER RESOLVED that any prior gaming laws/ordinances that are
inconsistent with the attached amended “Upper Sioux Community Gaming
Ordinance” are hereby repealed.

CERTIFICATION

We, the undersigned officers of the tribal council known as the Board of Trustees, do
hereby certify that the foregoing Governing Resolution entitled Upper Sioux
Community Resolution No. 005-CY2013 was duly adopted and approved by the Tribal
Council on QO Fehcuacyu AG\A_ bya vote of 5 For, 2 Against, ef
Abstentions and gy Absent aiid Excused.

Za FB

Kevin Jensvold, Tribal Chairman

Attest:

Quo iad

Amy LaBatft Tribal Council Secretary

Upper Sioux Community Resolution No. 005-CY2013
Amended “Upper Sioux Community Gaming Ordinance”
Page 2 of 2


BOARD OF TRUSTEES

TRIBAL CHAIRMAN - KEVIN L. JENSVOLD
TRIBAL VICE CHAIRMAN — TRAVIS J. LEENERTS
TRIBAL SECRETARY — AMY L. LABATTE
TRIBAL TREASURER — SHARON ODEGARD
MEMBER-AT-LARGE — MARLOW LABATTE SR.
POST OFFICE Box 147

5722 TRAVERS LANE

GRANITE FALLS, MN 56241
320.564.3853

320.564.4482 — FAX
WWW.UPPERSIOUXCOMMUNITY-NSN.GOV

Upper Sioux Community Resolution No. 005-CY2013

(Amended “Upper Sioux Community Gaming Ordinance”)

WHEREAS, the Upper Sioux Community -— Pezihutazizi Oyate is a federally
recognized Indian Nation bordering the counties of Yellow Medicine and
Chippewa of the state of Minnesota and possessing powers of self-
government and self-determination and asserting its Sovereignty by the
Constitution of the Upper Sioux Community; and

WHEREAS, the Upper Sioux Community is governed by the Board of Trustees of the
Upper Sioux Community which is empowered by the Tribal Constitution
to act on behalf and in the best interests of the members of the Upper
Sioux Community; and

WHEREAS, the Upper Sioux Board of Trustees is responsible for the public safety of
the Upper Sioux Community and its members; and

WHEREAS, the Upper Sioux Community has entered into a compact with the state of
Minnesota under the Indian Gaming Regulatory Act and operates Prairie’s
Edge Casino Resort on the Upper Sioux Community reservation near
Granite Falls, Minnesota; and

WHEREAS, on_QO Telacnoty , 2013, the Board of Trustees once again
adopted technical arténdments to its Gaming Ordinance to reflect the
following major amendments:

1) Updating the Privacy statement as defined in the NIGC’s final rule for
25 CFR Parts 556 (Background Investigations for Primary Management
Officials and Key Employees) and 558 (Gaming Licenses for Key
Employees and Primary Management Officials), dated January 25, 2013
as published in the Federal Register; and

Upper Sioux Community Resolution No. 005-CY2013
Amended “Upper Sioux Community Gaming Ordinance”
Page 1 of 2


(b) If the authorized tribal official, in applying the
standards adopted in a tribal ordinance, determines that licensing
of the person poses a threat to the public interest or to the effective
regulation of gaming, or creates or enhances the dangers of
unsuitable, unfair, or illegal practices and methods and activities in
the conduct of gaming, an authorizing tribal official shall not license
that person in a key employee or primary management official
position.

E. Report to the Commission.

(a) | When a tribe employs a primary management official or a
key employee, the tribe shall maintain a complete application file
containing the information listed under §556.4 (a)(1) through (14).

(b) Before issuing a license to a primary management official or
to a key employee, a tribe shall:

(1) | Create and maintain an investigative report on each
background investigation. An investigative report shall include all
of the following:

(i) Steps taken in conducting a background investigation;
(ii) Results obtained;

(iii) | Conclusions reached; and

(iv) _ The basis for those conclusions.

(2) | Submit a notice of results (NOR) of the applicant's
background investigation to the Commission no later than sixty (60)
days after the applicant begins work. The notice of results shall
contain:

(i) Applicant's name, date of birth, and social security

number;

(ii) Date on which applicant began or will begin work as a

key employee or primary management official;

(iii) A summary of the information presented in the

investigative report, which shall at a minimum include
a listing of:

(A) Licenses that have previously been denied;

(B) | Gaming licenses that have been revoked, even
if subsequently reinstated;

(C) Every known criminal charge brought against
the applicant within the last 10 years of the
date of application; and

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The following words and phrases when used in this Ordinance shall have the
meaning respectively ascribed to them in this section:

A. “Board of Trustees” shall mean the governing body of the
Community, duly elected in accordance with the terms of the Constitution of the
Upper Sioux Community, adopted January 9, 1996.

B. “Community” or “Tribe” shall mean the Upper Sioux Community,
a federally recognized Indian tribe located on the Upper Sioux Reservation and
governed by its duly elected Board of Trustees.

Cc. “Tribal/State Compacts” shall mean the Tribal/State Compact for
Control of Class II! Video Games of Chance on the Upper Sioux Community
Reservation entered into with the State of Minnesota in 1989 and the Tribal/State
Compact for Control of Class III Blackjack on the Upper Sioux Community
Reservation entered into with the State of Minnesota in May of 1991 and any
subsequent technical amendments thereafter.

D. “Gaming Enterprise” shall mean any commercial business owned
by the Community and operated, in part or in whole, for the conduct of Class II
and Class III gaming as authorized by the Tribe, the Indian Gaming Regulatory
Act, and the Tribal/State Compacts.

E. “Gaming Test Laboratory” shall mean, as contemplated by
Section 6.1 of the Tribal-State Compact regarding Video Games of Chance, a
laboratory agreed to and designated in writing by the Minnesota State
Commissioner of Public Safety and the Community as competent and qualified
to conduct scientific tests and evaluations of video games of chance and related
equipment; a laboratory operated by or under contract with the states of
Minnesota, or Nevada, or New Jersey, or South Dakota, constitutes a designated
gaming test laboratory.

F. “Indian Gaming Regulatory Act of 1988” shall mean the Act of
the United States Congress adopted on October 17, 1988, as Public Law 100-
497, 102 Stat. 2467, codified at 25 U.S.C. 2701 et seq.

Section 111: Severability

If a Court finds that any provision of this Gaming Ordinance is invalid or
unenforceable, the Court may sever that provision, and the remaining provisions
of this Gaming Ordinance shall remain in full force and effect.

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