TORRES-MARTINEZ DESERT CAHUILLA INDIANS

CLASS-IlEE GAMING-ORDINANCE DEC .- 7 ~

~TM-O0299

I. PURPOSE

The Torres-Martine-z DesertCahui-IIa Indians (the Tribe) empowered by the-Tribes

Constitution to enact ordinances, hereby enacts this Gaming Ordinance in order to set the terms

for Class-ill gaming operations on tribal- lands.

II. DEFINITIONS

The terms used in-this Gaming Ordinance shall have the same meaning as identical

terms defined in the Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. (the IGRA),

regulations of the National Ind4anGamingCommission and the TribalState Gaming Compact

between the Tribe and the State of California. As used in the Gaming Ordinance, the term

Gaming Employee shall have-the-meaning contained in- Section 27 of the Tribal-State

Compact, which includes key employee and primary management official as those terms are

defined in-25- C.F.R. §~ 502.14 and- 5O2~. 19-respectively.

ifi. GAMING AUTHORIZED

The Tribe may license and operate-Class ill gaming activities that are conducted in

conformance with a valid Tribal-State Compact entered into by the Tribe and the State of

Cal~frnnia or with the terms and conditions of valid-procedures prescribed by- the- Secretary of the

Interior for the regulation of Class III gaming.

IV. OWNERSHIP OF GA-MING

The Tribe shall have-the-sole-propriety interest in-and responsibilit-y for the-conduct of

any gaming operation authorized by this ordinance (unless the Tribe elects to allow individually

owned- gaming)

V. USE OF GAMTNG REVENUE

A. Net revenues from Class III gaming shall be used only for the following

purposes: to fund tribal government operations; 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. §- 271 0(b)(3).
VL AUDIT

A~ The Tribe-shall cause-to-be condtieted-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, service, 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.

VII PRO~TECTION~ OF THE ENVIRONMENTAL AND PUBLIC HEALTH

SAFETY

Class HI gaming facilities shall be constructed-, maintained and operated-in a manner

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

VTJT. TRIBAL GAMLNG COMMISSION

A: Establishment There is hereby- established- the Torres-Martinez Tribal

Gaming Commission (the Commission), an agency of the Tribe, consisting

of a Chairman and-four (4)-other members-appointed by a majority voteof the

Tribal Council.

B. Powers The-Commission shall havethe following powers-and- duties:

1. Promulgate rules and regulations for the operation of any gaming

facility under the-jurisdiction of the Tribe;

2. Grant, deny, renew, limit, condition, suspend, restrict or revoke

gaming licenses of any key employee, primary management-official,

Gaming Employee, Gaming Resource Supplier or person or entity

extending financing- to -a gaming- facility upon completion-of abackground investigation and after following the procedures contained

in 25 C.F.R. Parts~ 5-56 and 5S8~

3. Develop licensing procedures and standards for all Gaming

Employees-, Gaming-Resource Suppliers and persons or entities

extending financing to any gaming facility under the jurisdiction of the

Tribe;

4. Conduct background investigations-and suitability determinations on

any key employee, primary management official Gaming Employee,

Gaming- Resource-supplief or any person or entity extending-finai~cing

to a gaming facility required to be licensed according to requirements

at- least as stringent as those in 25 C.F.R. Parts 556-and-558;

2
5. Forward completed employment applications for key employees or

primary management officials-to-the National Indian Gaming

Commission pursuant to 25 C.F.R. § 558.3;

6. Issue- separate licenses- to each place or location on Indianlands where

the Tribe elects to allow gaming;

7. Monitor gaming-activities to ii~isure compliance with au- legal

requirements;

8. Conduct investigations-of possible violations and take- appropriate

enforcement actions, including the imposition of fines;

9. Take testimony and- conduct hearings- on regulatory matteFs,

10. Establish by regulation internal controls which are at least as stringent

as the Minimum Internal Control Standards contained in 25 C.F.R.

Part 542 and monitor compliance with such internal controls; and

11 Propose-an annual operating-budget which shall be subject to review

and approval by the Tribal Council. The Commission shall, in

accordance with-the budget approved by the Tribal Council; empl.cyee

staff and retain professional services necessary to carry out the

Commissions- responsibilities under this Ordinance; and

12. Exercise such other powers as authorized by the Tribal Council.

C. Terms The initial members of the- Commission shall serve as folI~ws:

1. Two-members shall serve-a one-year term.

2. Two members shall serve a two-year term.

I The-chairman shall- serve--a-three--year term.

Thereafter, all terms shall be for three (3) years and until a successor is appointed by

the-Tribal Council If a vacancy-occurs duri-nga-term; the-Tribal-Council may appoint a

successor for the unexpired portion of the term.

D. Qualifications To-be-eligible-to serve-as a member of the-Commission, a

person must submit to a background investigation and meet the suitability

standards of a primary management official or- key employee-and must:

1. Be of high moral character and reputation to promote public

confidence-in gaming-by the-Tribe;

2. Have sufficient education and work experience to be able to fulfill the

functions of the-Commission;

3
3. Not- have been convicted of a tribal, federal, or state felony, or any

crime involving fraud, theft, moral turpitude or gambling; and

4. Not--be a- membef~ of the Tribal- Council or employed in- any gaming

facility under the jurisdiction of the Tribe.

E. Restrictions Members of the Commission-are prohibited from-~i-)-gambIirig in

any gaming facility under the jurisdiction of the Tribe or (ii) having any

financial interest i-n- any ga-mi-ng conducted under the jurisdiction of the Tribe.

F. Removal and Vacancies After notice and a hearing, a member of the

Commission may be-removed by a-two-thirds-vote of the-Tribal Council- for

cause, including malfeasance, neglect of duty, unexcused failure to attend two

successive- Commission- meetings~ convict-ion of a felony-or failure-to-comply

with the Constitution or laws of the Tribe. Any member of the Commission

being considered for removal shall- be provided notice stating the groundsfor

removal and specifying the date, time and place for a hearing to be held by the

Tribal Council- within twenty (20) days of receipt of such notice: At-thehearing, the member of the Commission being considered for removal shall be

entitled to-present- testimony and other evidence and be represented be an

attorney. Vacancies shall be filled within ninety (90) days by a majority vote

of the Tribal-Council.

G: Meetings The-Commission- shall-meet- as- scheduled to fl.4fi-l1-its-dut-ies-ar~d

obligations under this Ordinance, but in no event less frequently than once per

month. -Meetings- may be-called by the Chairman, or by -any- two-other

members of the Commission, upon at least three (3) days written notice to all

members. Three members or two members- an-d the chairman shalt constitute

a quorum for the transaction of business. Decisions of the Commission shall

require the- vote-of a- majority of the- member-sr present at meeting in which a

quorum- is- pre~ent.

H. Compensation- Members-of the-Commission shall be compensated-at a rate to

be established by the Tribal Council. Members of the Commission shall be

reimbursed for- actifal- expenses- incurred on-Commission business, including

necessary travel expenses.

Reports to-the- Tribal- Council The-Commission shall make monthly- reports

to the Tribal Council. The reports shall include a summary of all licensing

and- enforeement actions and a Ml- and-complete statement of expenses and

financial transactions of the Commission. The report shall include any

addit-ional- information- requested by the-Tribal Council.

LX. LICENSES FOR GAMING EMPLOYEES. GAMING RESOURCE

SUPPLIERS AND-PERSONS-~EXTEN-fflNG FINANCING

The Commission-shall ensure-that the policies-and-procedures set out in-this--sect ion

are implemented with respect to all persons or entities subject to a background investigation and

requiring a license--pursuant-to- the-IGRA or the TribalState-Compact.

4
A. Application Forms

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

gaming license before that form is filled out by an applicant.

In compliance with the Privacy- Act of 1974, the following information is

provided: Solicitation of the information on this form is authorized by 25

U.S.C. 2701 et. seq. The-purpose-of the-requested information ~s 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 disclos~d to

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

regulatory agencies wheii- 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 hiring or

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

investigations of aeti-vitiea while-associated-with a-tribe or a gaming

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

will result in a tribes behigunahletohifeyoti in a primary management

official or key employee position.

The-disclosure of your Social-Security Number ES-SN) 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

notie; or

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

consent to the routine uses described in that notice.

3. The-f~llowing- notice shall beplacedon the application form for~ key

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

applicant.

A false-statement-en 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 Commission- shall notify in-writing existing key employees and

primary management officials that they shall either:

a. Complete a new- application- form that contains a- notice

regarding false statements; or

5
b. Sign a statement that contains the notice regarding false

statements.

B. Background Investigations

The Commission shall request- from all applicants for a gaming- license

all of the following information:

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

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

language& (spoken or- written);

b. Currently and for the previous five years: business and

employment positions- held; ownership interests-in-those

businesses, business and residence addresses, and drivers

license numbers;

c. The-names and-current addresses of at least thr-ee-per~ona1

references, including one personal reference who was

aequainted- 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

relationship with Indian-tribes, including ownership interests in

those business.

£ 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- f~1ony 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 1.0k

years of the date 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 is a conviction, if such criminal charge is

within 10 years of the date of the application and is not -

6
otherwise listed-ptirsuant to paragraph (1)(h) or (l)(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 was

granted;

1. A current photograph;

m. Any other information the Commission deems relevant, and

n. Fingerprints consistent with procedures adopted by the Tribe

according-to 25-C.F.R. §~ 522.2(h).

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

determinationunder subsection-Dbelow. The Commission shallperform background investigations and issue licenses for all applicants

for a gaming- license according-to requirements that are at least as

stringent as those in 25 C.F.R. Parts 556 and 558. In conducting a

background in-vestigation, the-Commission or its agent shall promise to

keep confidential the identity of each person interviewed in the course

of the investigation.

3. The Commission shall employ qualified tribal investigators who shall

be responsible for reviewing and verifying background information

and erimina~ history record- information (CI-IRI) reports. Access to

CI-IIRI reports shall be limited to tribal investigators and members of

the Commission.

C. Procedures for Conducting Background Investigations.

Information-V-erificat~on Tribal investigators shallreview the

required information provided by an applicant for a gaming license

and shall:

a. Verify 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. Confirm the applicants business and employment positions

held and-ownership-interests in those businesses currently and

for the past five (5) years by attempting to contact through

written letter, telephonecalisor personal visits to past

employers listed in the application and through ownership

documentation such as copies-of tax returns;

7
c. Obtain the applicants driving record by using the applicants

driving license number to contact the Department of Motor

Vehicle in the state where the license was issued;

d. Ascertain character information about the applicant by

contacting personal references identified in the application;

e. Inqufe- into-any- existing- or previous business relationships the

applicant has had with Indian tribes or the gaming industry,

including the- scope-of those-relationships; by contacting

respectively the tribes or entities identified in the application;

f. Verify the applicants history and status with any licensing

agency by contacting those agencies listed in the application

and- the--National -Indian Gaming Commission;

g. Obtain information regarding any past felonies, misdemeanor

convictions-or criminal charges within the-last ten (10) years by

contacting state, city, county and tribal courts, and state, local

and tribal- police- departments in the applicants- area of

residence;

h. Obtain-and-verify any other information the Commission

deems relevant to complete a thorough background

investigation.

2. Analysis-of Information Once the-tribal investigator has verifieçl the

accuracy of the information contained in the application, the tribal

investigator shall analyze-the-information and determine whether

further investigation is warranted. If an analysis of the information

reveal-a problem-areas such as an-applicants criminal activities,

finances or character, the tribal investigator shall broaden the scope of

the investigation-on such-problem-areas.

3. Investi2ative Report The tribal investigator shall prepare an

investigative-report which-shall contain the following:

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

investigation by a-checklist of procedures completed;

b. An explanation of the results obtained including describing any

exceptions or negative information and additional- steps- t-aken

to examine any exceptions or negative information; -

c. A statement as- to the conclusions reached, whether- positive or

negative, and the basis or justification for such conclusion.

Where-exceptions, areas- of concern or negative information

were obtained, the conclusions and the justifications for the

conclusions shall- be included- in the investigative-report;

8
D. Suitability Determination

The Commission shall- review the investigative- report prepared by the tribal

investigator as the basis for reviewing a persons prior activities, criminal record, if any, and

reputation, habits and associations to- make-a findii~g-eoncerning-the eligibility of a key employee

or primary management official for employment in a gaming operation paying particular

attention to (i) the truthfulness of the-applicants answers to-questions asked, (ii) the-applicants

criminal record, if any; (iii) any conflicting or additional information; and (iv) mitigating

circumstances-cited by the tribal- investigator. If the-Commission determines that employment of

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

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

conduct of gaming, a management contractor or the tribal gaming operation shall not employ that

person.

E. Procedures-for Forwarding Applications and Reports to the-National

Indian Gamin2 Commission

1. When~a person- required to- be-licensed begins work at a-gaming

operation authorized by this ordinance, the Commission 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 Commission shall forward the report referred to in subsection F of

this- section to-the- National Indian Gaming Commission within 60 clays

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 a person who does not have a

license after 90 days.

F. Report to-the-National Indian-Gamin2 Commission -

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

Commission- shall-prepare-and forward to the National Indian-Gaming

Commission an investigative report on each background investigation.

An investigative- report- shall include-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 Commission shall submit, with the report, a copy of the eligibility

determination-made under subsection D of this section.

9
3. If a license is not issued to an applicant, the Commission:

a. Shall notify the National Indian Gaming Commission; and

b. May forward copies of its eligibility determination and

investigative report (if any) to the National Indian Gaming

Commission for inclusion inthe indian Gaming Individuals

Records System.

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

Commission shall retain applications for employment and reports (if

any)- of background investigat-ions 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 termination of employment.

G. Granting a Gaming License

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

Commission receives a report, the National Indian Gaming

Commission notifies-the Commission that it has no objection to the

issuance of a license pursuant to the license application filed by a key

employee-or a primary management official for whom the

Commission has provided an application and investigative report to

the National Indian-Gaming Commission, the Commission may issue a

license to such applicant.

2. The Commission- shall respond to a request for additional inform~tion

from the Chairman of the National Indian Gaming Commission

concerning-a key-employee or a primary management official who is

the subject of a report. Such a request shall suspend the 30-day period

under paragraph-G. 1. of this section until the Chairman of the-National

Indian Gaming Commission receives the additional information.

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

Indian Gaming Commission provides the Commission with a

statement itemizing objections to the issuance of a license to a key

employee or a primary management official for whom the

Commission has provided an- application and investigative report to

the National Indian Gaming Commission, the Commission shall

reconsider the- application; taking into account the objections itemized

by the National Indian Gaming Commission. The Commission shall

make the- final decision-whether to issue a license to such applicant.

H. License Suspension

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

10
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 Gaming

Commission of its decision.

X. LICENSE LOCATIONS

The Commission shall issue a-separate-license to each place, facility, or location on

Indian lands where Class 111 gaming is conducted under this ordinance.

XI. REPEAL

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

ordinances are hereby repealed.

11
Gaming Ordinance

TM-002-99

CERTIFICATION

We, the undersigned, as duly elected officials of the Tones Martinez Desert Cahuilla

Indians Tribe, we do hereby certify that at a General Council Meeting held on April 10,

1999, this ordinance was reviewed and approved, by a vote of 25 in favor, 7 opposed and

1 abstaining. We the members of the Tribal Council do hereby certify that this foregoing

resolution has not been amended or rescinded in any way.

p1 ____________

Mar~\E. Be1~do, Tribal Chairwoman Pauline Duro, T~b~l Vice-Chairperson

4~1~2~2. a~2~

Mary1~. Res~aloso, Tribal Secretary/Treasurer Derlene Auclair, Tribal Council Member

IaI

G ne Ward, Tribal Council Member

Elaine

~jO~L

M. Penaloza,

~

Tribal Couheil Member

&~JtQ \(\~~

Phillip Mokeo, Tribal Council Member