Sac and Fox Code Title

(F) The Commission shall take into account the inspection reports where
conditions are present that pose a real and immediate threat: (1) To the environment,
which, if uncorrected, would result in actual harm to life or destruction of property; or (2)
to human health and well being, which, if uncorrected, could result in serious illness or
death. The Commission may order the immediate closure of all or part of any gaming
facility, or such lesser remedy as it deems necessary in order to protect the public
health and safety or the environment.

[67 Fed. Reg. 46109 (July 12,2002)}

[History: Public Law No. SF-08-180.]
Section 1-206. Internal Control Standards

The Commission shall adopt and implement Tribal Internal Control Standards for
the operation of all gaming facilities in accordance with any applicable provisions of the
Compact and the regulations of the NIGC, with such enhancements as may be useful or
necessary to further protect the government of the Nation, the gaming facilities, and the
public interest. The Tribal Internal Control Standards shall be set out in separate
regulations to be reviewed and adopted by the Commission to ensure that they are in
compliance with the requirements of the NIGC and the Compact. The Tribal Internal
Control Standards so approved shall thereafter govern all Class II and Class III Gaming
within the jurisdiction of the Nation until and unless they are amended by the
Commission in the same manner in which they were adopted.

[History: Public Law No. SF-08-180.]
Section 1-207. Agent for Service of NIGC Process

The Nation hereby designates the Principal Chief as agent for service of process
from the NIGC, who may be contacted at:

Sac and Fox Nation
Route 2, Box 246
Stroud, Oklahoma 74079

[25 C.F.R. §519.1]
[History: Public Law No. SF-08-180.]
Section 1-208. Payment of Taxes and Regulatory Fees to the Nation

Each gaming facility shall pay all tribal taxes due, and its fair share of the
regulatory fees imposed by law to reimburse the Nation for the cost of regulating
gaming within its Indian lands.

[History: Public Law No. SF-08-180.]

12


Sac and Fox Code Title

license pursuant to a license application filed by a Key Employee or a Primary
Management Official for whom the Gaming Commission has provided an application
and investigative report to the NIGC, the Commission may issue a license to such
applicant.

[25 C.F.R. §558.4(a)]

(B) |The Commission shall respond to a request for additional information from
the Chairman of the NIGC conceming 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 (A) of this section until the Chairman of the NIGC receives the
additional information.

[25 C.F.R. §558.4(b)}

(C) _ If, within the thirty (30) day period described above, the NIGC provides the
Gaming Commission with a Statement itemizing objections to the issuance of a license
to a Key Employee or to a Primary Management Official for whom the Commission has
provided an application and investigative report to the NIGC, the Gaming Commission
shall reconsider the application, taking into account the objections itemized by the
NIGC.[25 C.F.R. §558.4(b)]

(D) The Gaming Commission shall make the final decision whether to issue a
license to such applicant.

[25 C.F.R. §558.4(b)]
{History: Public Law No. SF-08-180.]
Section 1-520. License Term

The Key Employee or a Primary Management Official gaming license issued
shall be valid for a period of two years from the date of issue so long as the employee
remains employed within the gaming industry in the Nation, and shall be renewable on
such terms and conditions as the Commission may establish by regulation.

[See, 25 C.F.R. §§558.2, 558.4(b)]
[History: Public Law No. SF-08-180.]
Section 1-521. License Suspension or Revocation

(A) If, after the issuance of a gaming license, the Commission receives from
the NIGC or any other source reliable information indicating that a Key Employee or a
Primary Management Official is not eligible for employment, the Commission shall
suspend such license and shall notify in writing the licensee of the suspension and the
proposed revocation.

[25 C.F.R. §558.5(b)]

33


Sac and Fox Code Title

Section 1-514. Background Investigations

(A) _ The Commission is responsible for conducting background investigations
and suitability determinations for each Primary Management Official and each Key
Employee.

(B) The Commission shall request from each Primary Management Official
and from each Key Employee all of the following information:

(1) Full name, other names used (oral or written), social security
number(s), birth date, place of birth, citizenship, gender, all languages (spoken or
written);

(2) Currently and for the previous 5 years: business and employment
positions held, ownership interests in those businesses, business and residence
addresses, and drivers’ license numbers;

(3) 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 (B )(2) of this
section;

(4) Current business and residence telephone numbers;

(5) _ A description of any existing and previous business relationships
with Indian Tribes, including ownership interests in those businesses;

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

(7) 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;

(8) For each felony for which there was an ongoing prosecution or a
conviction, the charge, the name and address of the court involved, and the date
and disposition if any;

(9) For each misdemeanor conviction or ongoing misdemeanor
prosecution (excluding minor traffic violations), within 10 years of the date of the
application, the name and address of the court involved and the date and
disposition;

(10) For each criminal charge (excluding minor traffic charges), whether

or not there is a conviction, if such criminal charge is within 10 years of the date
of the application and is not otherwise listed pursuant to paragraph (B)(8) or

29


Sac and Fox Code Title

(15) Any further information the Gaming Commission deems relevant.

(B) _ The following notice shall be placed on the application form for a vendor
and its principals:

Inclusion of false or misleading information in the vendor application may
be grounds for denial or revocation of the vendor license.

[History: Public Law No. SF-08-180.]
Section 1-544. Vendor Background Investigation

Subject to the regulations of the Gaming Commission, the Gaming Commission
shall complete an investigation of the gaming vendor. This investigation shall contain,
at a minimum, the following steps:

(A) Verify the business’ incorporation status, if any, and qualification to do
business in the jurisdiction of the Nation;

(B) Obtain a business credit report, if available, and/or conduct a Better
Business Bureau check on the vendor;

(C) Call at least three (3) of the references listed in the vendor application;
and

(D) The Commission will conduct an appropriate investigation of the principals
of the business; said investigation may include such items such as criminal history
check, a credit report, and interviews with the personal references listed.

[History: Public Law No. SF-08-180.]
Section 1-545. Vendor Background Investigation Report

The investigator shall complete an investigative report covering each of the steps
taken in the background investigation of the gaming vendor and its principals and
present it to the Commission for appropriate action which shall be consistent with the
same due process standards made applicable to Key Employees and Primary
Management Officials.

[History: Public Law No. SF-08-180.]
Section 1-546. Licenses for Non-Gaming Vendors

For non-gaming vendors, the Commission is authorized to create a less stringent
vendor licensing process, including a due diligence check rather than a full background
investigation. The Gaming Commission may investigate such vendors when
appropriate and may conduct audits in addition to monitoring Tribal purchases.

[History: Public Law No. SF-08-180.]

38


Sac and Fox Code Title

(h) — Croupier;
(i) Approver of credit; or

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

(2) If not otherwise included, any other person whose total cash
compensation is in excess of $50,000 per year; or

(3) _ If not otherwise included, the four most highly compensated
Persons in the Gaming Operation.

[25 C.F.R. §502.14)]

(R) “Management Contract” means any contract, subcontract, or Collateral
Agreement between the Nation or a subsidiary of the Nation and a contractor, or
between a contractor and a subcontractor if such contract, subcontract, or Collateral

Agreement provides for the management of all or part of a gaming facility operated
within the Nation.

[25 C.F.R. §502.15, 25 U.S.C. §2711]
(S) “Nation” means the Sac and Fox Nation.

(T) “Net Revenues” means gross gaming revenues of a Gaming Operation
less:

(1) | Amounts paid out as, or paid for, prizes; and

(2) Total gaming-related operating expenses, excluding management
fees;

[25 U.S.C. §2703(9); 25 C.F.R. §502. 16]

(U)  “NIGC” means the National Indian Gaming Commission as established by
the Act of October 17, 1988, PL 100-497, 25 U.S.C. §§2701, et. seq.

(V) “Other games similar to bingo” means any game played in the same
location as bingo (as defined in 25 U.S.C. §2703(7)(A)(i)) constituting a variant on the
game of bingo, provided that such game is not house banked and permits players to
compete against each other for a common prize or prizes..

[25 C.F.R. §502.9. 25 U.S.C. §2703(7)(A)i(M)]

(W) “Per Capita Payment” means the distribution of money or other thing of
value to all members of the Nation, or to identify groups of members, which is paid
directly from the Net Revenues in accordance with the Nation's Revenue Allocation Plan
as approved by the Secretary of the Interior.


Sac and Fox Code Title

Commission shall be final and unappealable, except as may otherwise be provided by
applicable federal or tribal law. In such a case, appeals shall be taken only to the Sac
and Fox Courts. The Nation expressly preserves all aspects of its sovereign immunity
against lawsuits in any such circumstance or case.

(C) No liability of any kind or nature shall ever attach to the Nation as a result
of any dispute or the final decision of the Commission. The sovereign immunity of the
Nation against lawsuit of its officials, acting in their official capacities, is expressly
reserved in any instance.

(D) A copy of the provisions of this section shall be appropriately posted
conspicuously and in plain view of the gaming public at all gaming facilities within the
jurisdiction of the Nation.

(E) Each Gaming Operation engaged exclusively in Class I Gaming
operations shall maintain public liability insurance with liability limits not less than the
amount required by regulation of the Commission, and the Compact, if applicable, for
the express purposes of covering and satisfying tort claims against that facility.

Section 1-306. Right of Appeal & Finality of Decisions

The parties to an authorized judicial proceeding before the District Court of the
Nation in which a prize claim or tort claim is in dispute shall have the right to appeal to
the Supreme Court of the Nation as provided by law. A decision of the Sac and Fox
District Court that is not appealed, or a decision of the Supreme Court of the Nation
shall be final and conclusive.

[History: Public Law No. SF-08-180.]
Chapter Four—GaminG CommIssIONER Powers & DUTIES
Section 1-401. Gaming Commission

(A) The Nation hereby establishes a Gaming Commission who shall regulate
tribal gaming operations. The Commission shall consist of three members, at least two
of whom must be enrolled members of the Sac and Fox Nation. There shall be among
them a Chairperson, Vice Chairperson, and at least one additional Commissioner. The
Commission may employ an Executive Director who may also serve as a
Commissioner.

(B) The purpose of the Gaming Commission is regulatory, not managerial.
The Commission will conduct oversight to ensure compliance with tribal, federal, and, if
applicable by Compact, state laws and regulations. The Commission will serve as the
licensing authority for individuals employed in the Gaming Operation and will administer
background investigations as part of the licensing process. The Commission will also
have a role in monitoring compliance with the internal controls for the gaming operation
and in tracking revenues. The Gaming Commission will also monitor all gaming
operations through clandestine surveillance of all areas of each gaming facility. In order

16


Sac and Fox Code Title

(B) The Commission shall notify the licensee of a time and a place for a
hearing on the proposed revocation of a license.

[25 C.F.R. §558.5(c)]

(C) After a revocation hearing, the Commission shall decide whether to revoke
or to reinstate a gaming license. The Commission shall notify the NIGC of its decision.

[25 C.F.R. §558.5(d)]
[History: Public Law No. SF-08-1 80.]

Subchapter B—NON-KEY EMPLOYEE LICENSING
Section 1-531. Licenses for Non-Key Employees

(A) The Gaming Commission is authorized to create a less stringent licensing
process, which may be a simple due diligence check rather than a full background
investigation, for all employees of Gaming Operations or facilities who are not Key
Employees or Primary Management Officials. At its discretion, the Gaming Commission
may further investigate license applicants when appropriate, and may require or
conduct a full background check and NIGC check when it determines that
circumstances either of the person or of the position applied for warrant such action.

[History: Public Law No. SF-08-180.]
Section 1-532. Applicant Investigations

The Gaming Commission shall review such portion of the applicant's prior
activities, criminal record, if any, and reputation, habits and associations as the
Commission determines necessary to make a finding concerning the eligibility of a such
applicants for employment in a Gaming Operation in the particular position or class of
positions for which the license is requested.

[History: Public Law No. SF-08-180.]
Section 1-533. Licensing Standard

The standard for licensure shall be whether the employment of the license
applicant in the position or class of positions for which the license is requested, would
pose a threat fo the public interest or to the effective regulation of gaming, or would
create or enhance the danger of unsuitable, unfair, or illegal practices and methods and
activities in the conduct of gaming.

[History: Public Law No. SF-08-180.]

34


FILED
IN THE DISTRICT COURT
2008 OCT 29. P 224

CHARLOTTE CARTY

BY:.

——DEPUTY

SAC AND Fox
GAMING ORDINANCE OF 2008

(As Amended October 17, 2008)

APPROVED MAY 8, 2008
APPROVED AUGUST 5, 2008
APPROVED OCTOBER 17, 2008


Sac and Fox Code Title

Section 1-503. Jurisdictional Consent Required

The Commission shall require all applicants for licenses to sign the following
statement:

| hereby consent to the personal and subject matter jurisdiction of
the Sac and Fox Gaming Commission, to the jurisdiction of the Sac and
Fox Nation Courts, and to all orders and decisions thereof concerning all
activities of every kind and nature in which | may be involved as a gaming
participant, vendor, contractor, licensee, employee, or otherwise within the
jurisdiction of the Sac and Fox Nation, and | hereby waive all jurisdictional
defenses to any and all actions, hearings, orders, decisions, civil fines or
civil penalties which may be imposed by either of such adjudicatory bodies
or tribunals or any other courts of competent jurisdiction to enforce the
same.

[History: Public Law No. SF-08-180.]

Subchapter A—KEY EMPLOYEE AND PRIMARY MANAGEMENT
OFFICIAL LICENSING

Section 1-511. Licenses Required

The policies and procedures set out in this Subchapter shall be implemented with
respect to Key Employees and Primary Management Officials employed at any Gaming
Operation operated on Indian lands of the Nation. The Gaming Commission will issue
licenses and perform background investigations according to requirements at least as
stringent as those contained in the applicable provisions of 25 C.F.R. Parts 556 and
558, or the Compact, if applicable.

[25 U.S.C. §2710(b)(2)(F); 25 C.F.R. §558.3; 25 U.S.C. §522.4(b)(5)]

[History: Public Law No. SF-08-180.]
Section 1-512. License Application Forms

(A) 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 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 the Tribe and the NIGC members and staff
who have need for the information in the performance of their official
duties. The information may be disclosed to appropriate Federal, Tribal,

27


Sac and Fox Code Title

Chapter Three—GENERAL PROVISION
Section 1-301. Complimentary Items

(A) The use of complimentary items shall be governed generally by
regulations established by the Commission not inconsistent with this section,

(B) No Key Employee, Primary Management Official, member of the
governing body of a Gaming Operation, Commissioner, employee of the Commission,
or elected official of the Nation, including Judicial officers, nor any person in their
immediate family or sharing a residence with such persons, shall be authorized to
receive, or receive, complimentary items, provided, that food and beverages reasonably
provided and received in the course of normal business meetings and operations are
not prohibited by this provision, and provided further, that at a public event held at a
gaming facility, trade fair, conference, or related public activity, free food and beverages
and other complimentary items offered to all attending members of the general public
equally may be offered to, and received by, such persons.

(C) Complimentary Items shall be included in the annual budget for each
gaming facility, within any maximum limits specified and approved by, the governing
body of the Gaming Operation.

[History: Public Law No. SF-08-180.]
Section 1-302. Compliance with Federal Law

The Nation, and all gaming operations conducted on its Indian lands, shall
comply with all applicable federal law, including the Bank Secrecy Act, 31 U.S.C. §5311
et seq.

{History: Public Law No. SF-08-180.]
Section 1-303. Ethical Conduct Respecting Gaming

(A) The Nation recognizes that the duties of the goveming body of each
Gaming Operation and the Commission include making important and difficult decisions
on highly sensitive issues. As such, the Nation has determined that the governing body
of each Gaming Operation, and the Gaming Commission shall be held to extremely high
ethical standards. Prior to taking their positions, the Commissioners shall agree in
writing to support, protect, and defend the Constitution, Charter, and laws of the Nation,
to be bound by the principles of the Business Ethics and Conflict of Interest Policy of the
Nation, and to refrain from conduct defined as Misconduct in Office by the Code of Laws
of the Nation.

(B) The following constitute examples of the principles of the Business Ethics

and Conflict of Interest Policy and definitions of Misconduct in Office that are especially
applicable in the gaming context:

13


Sac and Fox Code Title

(14) Comply with any and all reporting requirements under the IGRA,
Compact, if applicable, to which the Nation is a party, and any other applicable
law;

(15) Promuigate and issue regulations necessary to establish and
require compliance with minimal internal control standards for all gaming
operations within the jurisdiction of the Sac and Fox Nation, which standards
shall govern the procedures for handling and accounting for gaming cash and
cash equivalents, extending credit to patrons, and procedures for acquiring
gaming supplies and equipment;

(16) Promulgate and issue regulations on the levying of fees necessary
to defray the expenses of gaming license applications;

(17) Promulgate and issue regulations on the levying of civil fines or
forfeitures respecting any person who violates applicable gaming law and
regulations within the jurisdiction of the Sac and Fox Nation, and/or suspension
or revocation of gaming licenses for violations of the gaming laws, rules, or any
other applicable gaming law or regulations from state or federal jurisdictions;
provided, that said regulations may not authorize the levy of a civil fine in excess
of the amount which the NIGC is authorized to levy by statute;

(18) Establish a list of persons not allowed to game within the Nation's
gaming facilities to maintain the integrity of the gaming;

(19) Establish a list of persons who have voluntarily asked to be
excluded from the Nation's gaming facilities and create regulations for enforcing
this exclusion;

(20) Provide referrals and information to the appropriate law
enforcement officials when such information indicates a violation of tribal, federal,
or state applicable laws, statutes, regulations, or resolutions;

(21) Establish such video and audio surveillance standards as may be
necessary, and conduct or approve such video and audio surveillance of gaming
facilities as may be necessary to provide security and to enforce the standards
applicable to gaming within the jurisdiction of the Nation;

(22) Perform such other duties the Commission deems appropriate for
the proper regulation of the tribal gaming operations within the jurisdiction of the
Nation;

(23) Promulgate regulations and guidelines as it deems appropriate to
implement the provisions of this law.

[NIGC Model Ordinance, Bulletin No. 05-05, Section 108(f)]

19


Sac and Fox Code Title

, (C) The Gaming Commissioners shall determine by regulation whether any
additional employees of the Commission, shall be required to take the foregoing oath,
and be bound by these principles.

(History: Public Law No. SF-08-180. The “Business Ethics and Conflict of Interest Policy of the Sac and
Fox Nation" referred to in this section is intended to refer to the policy approved by Public Law SF#06-
204, August 29, 2006, including any future amendments, substitutions, or replacements for that policy.]

Section 1-304. Sovereign Immunity

(A) __ Nothing contained in this Title shall be construed to be a waiver of the
sovereign immunity of the Nation or the Sac and Fox Tribe, Inc., or the officers,
employees, agents, or business or political subdivisions thereof (the “Nation”), nor to be
a consent to any suit beyond the limits specifically authorized by the laws of the Nation.
All such authorizations shall be strictly construed.

(B) Persons who are not employees of the Nation, but who are performing
substaniial, necessary, or useful services to the Nation on a voluntary basis, who are
acting under the supervision, or with the approval of an officer, agent, or employee of
the Nation, and who would be immune from suit were the acts in which they were
engaged done by any officer, agent or employee of the Nation, shall enjoy the
protection of the sovereign immunity of the Nation to the same extent as a paid agent or
employee.

[History: Public Law No. SF-08-180.]
Section 1-305. Patron Dispute Resolutions

(A) All disputes between members of the gaming public and operators or
employees of licensed gaming facilities shall be promptly and amicably reconciled by
the managing official or his authorized representative.

(B) In cases where such disputes cannot be promptly and amicably settled,
such cases shall be referred to an investigator/arbitrator by the managing official of the
Gaming Operation, or the intervention of such 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 properly
trained and assigned such duties on a regular basis. The investigator/arbitrator shall
make all reasonable efforts to amicably settle the dispute. Should such a settlement not
be effected, the investigator/arbitrator shall promptly make a written report on the
controversy and advise the Chairman of the Commission who shall, in tum, promptly
schedule a hearing by the Commission on the matter, giving all involved parties
reasonable notice of time, place, and date of the hearing. The Commission shall either
dismiss the grievance or enter an order against the operator of the facility to effect
fairness, justice, and equity. In property cases the Commission may also impose a civil
fine or a civil penalty upon the facility, its operator or any of its employees found to have
committed a material wrong against a member of the gaming public. All decisions of the

15


Sac and Fox Code Title

State, local, or foreign law enforcement and regulatory agencies when
relevant to civil, criminal or regulatory investigations or prosecutions or
when necessary pursuant to a requirement by a Tribe or the NIGC in
connection with the hiring or firing of an employee, the issuance or
revocation of a gaming license, or investigation 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 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.”

[25 C.F.R. §556.2(a})

(B) The following additional notice shall be placed on the application form for
a Key Employee or a primary official:

“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)”

[25 C.F.R. §556.3(a)}

(C) The Commission shall notify in writing existing Key Employees and
Primary Management Officials who have not completed an application containing the
notices set forth above that they shall either:

(1) Complete a new application form that contains both the Privacy Act
and false statement notices; or

(2) Sign a statement that contains the Privacy Act and false statement
notices and consent to the routine uses described in that notice.

[25 C.F.R. §556.2(b); 25 C.F.R. §556.3(b)}
[History: Public Law No. SF-08-180.]
Section 1-513. Fingerprints

Each applicant for a Key Employee or Primary Management Official license shall
be required to have fingerprints taken as part of the license application procedure.
Fingerprints shall be taken and forwarded to the NIGC for processing through the FB! to
determine the applicant's criminal history, if any.

[25 C.F.R. §522.2(h); 25 C.F.R. §556.4(a)(14)]
(History: Public Law No. SF-08-180.]

28


Sac and Fox Code Title

payments may be disbursed to the parents or legal guardian of such minors or
legal incompetents in such amounts as may be necessary for the health,
education, or welfare of the minor or other legally incompetent person, pursuant
to the approved Revenue Allocation Plan.

[25 C.F.R. §290.12(b)(3)]

(3) Tribal members shall be notified of the tax liability for per capita
Payments and how taxes will be withheld in accordance with the approved
revenue allocation plan.

[25 C.F.R. §290.12(b)(4); 26 C.F.R. Part 31]

[History: Public Law No. SF-08-180.]

(4) The Nation shall designate or create a Tribal court system, forum,
or administrative process for resolution of disputes concerning the allocation of
Net Revenues and the distribution of per capita payments and will explain how it
will correct deficiencies.

[25 C.F.R. § 290,12(3)(iii), (b)(5); 25 C.F.R. § 290.22]

(5) The Nation shall ensure that the effective Tribal revenue allocation
plan reserves an adequate portion of Net Revenues from the Tribal Gaming
activity to do one or more of the following purposes: fund Tribal government
operations or programs; provide for the general welfare of the Tribe or its
members; promote Tribal economic development; donate to charitable
organizations; or to help fund operations of local government.

[25 C.F.R. § 290.12(b)(1)]

(6) | The Nation shall ensure that distributions of per capita payments
are made according to specific eligibility requirements.

[25 C.F.R. § 290.12(3)(iii), (b)(5)]
Section 1-204. Independent Audits Required

(A) | The Commission shall cause an annual outside independent audit of each
Gaming Operation to be conducted, and shall submit the resulting audit reports to the
governing body of the audited Gaming Operation, the Business Committee, and the
NIGC.

[25 U.S.C. §2710(b)(2)(C); 25 C.F.R. §522.4(b)(3)]

(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 of this Section.

10


Sac and Fox Code Title

Chapter One—PRELIMINARY PROVISIONS AND DEFINITIONS

Section 1-101. Purpose

This Title governs all gaming operations on the Sac and Fox Nation’s Indian
lands.

[History: Public Law No. SF-08-180.]
Section 1-102. Definitions

Unless a different meaning is clearly indicated in this Law, the terms used herein
shall have the same meaning as defined in the IGRA, 25 U.S.C. §2701 et seq., and its
authorized regulations, currently found at 25 C.F.R. §500 et seq. Specifically:

(A) “Business Committee” means the Business Committee of the Nation as
provided in Art. Ill of the CONST. OF THE SAC & FOX NATION.

(B) “Class | Gaming” means social games solely for prizes of minimal value or
traditional forms of Indian gaming engaged in by individuals as a part of, or in
connection with, tribal ceremonies or celebrations.

[25 U.S.C. §2703(6); 25 C.F.R. §502.2]
(C) “Class Il Gaming” means:

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

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

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

(c) In which the game is won by the first person covering a
previously designated arrangement of numbers or designations on such
cards, including (if played in the same location) pull-tabs, lotto, punch
boards, tip jars, instant bingo, and other games similar to bingo, and

(2) Card games that:
(a) Are explicitly authorized by the laws of the State, or
(b) Are not explicitly prohibited by the laws of the State and are played

at any location in the State, but only is such card games are played in conformity
with those laws and regulations (if any) of the State regarding hours or periods of


Sac and Fox Code Title

[History: Public Law No. SF-08-180]
Section 1-431. Citations to be Issued

The Commission may delegate authority to its supervisors, investigators, or
enforcement officials to issue written citations to offenders for the civil fines and civil
penalties provided by this section. Such citations shall advise an individual or entity of
the alleged violation, the civil fine or penalty which may be imposed, their right to a
hearing on the citation, and the time, date and place of the hearing before the Gaming
Commission.

[History: Public Law No. SF-08-180]

Section 1-432. Right to a Hearing

Every person to whom a citation is issued shall have the tight to a hearing before
the Commission, unless they voluntarily choose to waive their tight to a hearing by
payment of the civil fine or civil penalty as assessed, or by failing to appear at the date,
time, and place set for the hearing. All hearings will be conducted in accordance with
this Title. The Commission shall determine from the evidence submitted at such
hearings whether the civil fine or civil penalty should be assessed.

[History: Public Law No. SF-08-180]
Section 1-433. Civil Fine and Penalties are Debts

All such civil fines and civil penalties which have become final shall be deemed to
constitute a lawful indebtedness of the offender to the Nation.

[History: Public Law No. SF-08-180]
Section 1-434. Record of Final Assessments

The Commission shall keep a continuing record of all civil fines and civil penalties
owing to the Nation and shall include a summary thereof in its annual report. The
Commission may recommend charge offs of such civil fines and civil penalties which, in
the judgment of the Commission, are uncollectible, and upon formal resolution of the
Business Committee these fines may be charged off as uncollectible, and all records
shall be properly amended to reflect such charge offs.

(History: Public Law No. SF-08-180]
Section 1-435. Deposit of Fines and Penalties Collected

All income from the collection of civil fines and civil penalties shall be deposited
into the Treasury Account of the Nation, and may be appropriated by the Business
Committee for the same purposes for which general revenues from taxation may be
used.

25


Sac and Fox Code Title

(B) The Commission shall bring or defend any lawful action in any court or
before other agency in order to enforce subpoenas, civil fines, civil penalties, or other
lawful orders issued by the Commission, and defend the Commission, its Officers,
agents, and employees in the due execution of their authority.

(C)  Ineéither its administrative operations and hearings, or in legal action by or
against it, the Commission is authorized to compromise and settle any claims or matters
relevant to its duties when such compromise or settlement is consistent with the
purposes of this Title and the development of the gaming industry within the jurisdiction
of the Nation.

[History: Public Law No. SF-08-1 80]
Section 1-406. License Fee Schedule

The Commission shall establish a schedule of fees to be paid by each proponent
or applicant for a gaming license to assist in covering its expenses in investigating and
licensing gaming facilities, all employees of a gaming facility, vendors, management
contractors, and others who are required to be licensed to participate in gaming within
the Sac and Fox Nation.

[History: Public Law No. SF-08-180]
Section 1-407. Reporting Requirements

The Commission shall:

(A) _ Ensure that all Gaming Operations and facilities are current in their reports
and payments due to the National Indian Gaming Commission under federal law; and

(B) Ensure that all Gaming Operations and facilities are current in any reports
and payments required by a Compact which is in effect; and

(C) Ensure that all Gaming Operations and facilities are current in any reports
and payments required by the laws of the Sac and Fox Nation; and

(D) Ensure that all Gaming Operations and facilities are current in any reports
and payments required by the Internal Revenue Service; and

(E) Provide written annual reports to the Business Committee and Governing
Council on the status of the Nation's gaming activities no later than June 1st of each
calendar year.

[History: Public Law No. SF-08-180]

22


Chapter Two —Provisions Required by P.L. 100-497 ........secsssssesssscssesssesessesssveesseesseesee

Section 1-201. Ownership of Gaming...
Section 1-202. Use of Gaming Revenue
Section 1-203. Per Capita Payments.....
Section 1-204. Independent Audits Required
Section 1-205. Environmental Health and Safe’
Section 1-206. Internal Control Standards...........
Section 1-207. Agent for Service of NIGC Process

Section 1-208. Payment of Taxes and Regulatory Fees to the Natio! ass
Chapter Three —General Provision ...........cs:ssssessessescssesseseeseseesecceserececeasseeseearssenesecseeses

Section 1-301. Complimentary Items.
Section 1-302. Compliance with Federal Law
Section 1-303. Ethical Conduct Respecting Gamin:
Section 1-304. Sovereign Immunity.
Section 1-305. Patron Dispute Resolution:
Section 1-306. Right of Appeal & Finality of Decision:

Chapter Four —Gaming Commissioner Powers & Duties

Section 1-401. Gaming Commission...
Section 1-402. Buildings and Equipment
Section 1-403. Personnel...
Section 1-404. Reasonable Assistance.
Section 1-405. Enforcement Actions ..
Section 1-406. License Fee Schedule
Section 1-407. Reporting Requirements.
Section 1-408. Record Keeping System
Section 1-409. Reporting NIGC Actions
Section 1-410. Auditing Insurance Compliance

Subchapter A —Administrative Hearings.

Section 1-420. Authority to Conduct HearingS..........cccsessssesesnsessseseetensseneereeers
Subchapter B —Civil Fines And Penalties..............csssssssssesssesseseseesesssescsesccecesseneenenenenes

Section 1-430. Civil Fines and Civil Penalties .
Section 1-431. Citations to be Issued.
Section 1-432. Right to a Hearing...
Section 1-433. Civil Fine and Penalties are Debt
Section 1-434. Record of Final Assessments..
Section 1-435. Deposit of Fines and Penalties
Section 1-436. Personal Jurisdiction
Section 1-437. Failure to Pay

Chapter Five Licensing jsccccesicccccscsssscavevanessrecced waseraraeacnsscavasavesrtacenscccuieucussausaass iesonetl

Section 1-501. Licenses Required
Section 1-502. Licenses To Be Displayed
Section 1-503. Jurisdictional Consent Require

v



SAC AND FOX NATION

GAMING ORDINANCE OF 2008
Table of Contents

CERTIRICATION....se:ncnsenenrvernarenrenenncaennpsresmerrecen wii
Section 1-1. Findings and Declarations............:.ccccscscsesessseeeseee
Section 1-2. Continuing Authority To Regulate Gaming.

Chapter One —Preliminary Provisions and Definitions ............

Section 1-101. Purpose.....
Section 1-102. Definitions..
(A) “Business Committee”
(B) “Class | Gaming”.........

{C) “Class il Gaming” means:

(D) “Class Ill Gaming.......

(E) “Collateral Agreement’ ..

(F) “Commission” or “Gaming Commission’
(G) “Commissioner”

(H) “Compact”...

(I) “Complimentary”

(J) “Confidential Information” .

(K) “Directly related to”........

(L) “Electronic, computer or other technologic aid’
(M) “Electronic or electro-mechanical facsimile” ...
(N) “Gaming Operation”

(O) “House banking game’

(P) “Indian lands”...

(Q) “Key Employee”

DODHODOAAATARRHOWWHHYBHONNNNN BBO

(R) “Management Contract”.

(S) "Nation txccesseseecs

(T) “Net Revenues”

(U) “NIGC? uu...

(V) “Other games similar to bingo”

(W) “Per Capita Payment”

{X) “Person having a direct or indirect financial interest in a
Management Contract” 7

(Y) “Person having management responsibility for a Management
Contract’ 7

(Z) “Primary Management 7

(AA) “Prize Claim” 8

(AB) “Tort Claim” 8

Section 1-103. Gaming Authorize mrs]


Sac and Fox Code Title

[25 U.S.C, §2710(b)(2) (D); 25 C.F.R. §522.4(b)(4)]

[History: Public Law No. SF-08-180.]
Section 1-205. Environmental Health and Safety

(A) The Commission will ensure gaming facilities shall be constructed,
maintained and operated in a manner that adequately protects the environment and the
public health and safety.

[25 U.S.C. §2710(b)(2)(E),* 25 C.F.R. §522,4(b)(7)]

(B) |The Commission will ensure each Gaming Operation shall adopt policies
and procedures that assure adequate protection of the environment and the public
health and safety at all gaming facilities.

(C) The policies and procedures issued by each Gaming Operation shall
establish minimum standards for gaming facilities with regard to:

(1) | Emergency preparedness for natural and man-made disasters;
(2) Food & water quality and safety;

(3) Environmental and safety hazards relating to construction &
maintenance;

(4) Handling and disposal of hazardous and waste materials; and
(5) Sanitation.

Each Gaming Operation shall consult with the professional staff of the Blackhawk
Health Clinic, the Sac and Fox Police Department, and the Sac and Fox Justice
Department regarding public health and safety issues mentioned in this Section, and
take their views into account in the preparation of its policies and procedures.

[67 Fed. Reg. 46109 (July 12,2002)]

(D) The Commission shall require each gaming facility to conduct annual
inspections of each gaming facility, and may inspect any gaming facility at such times
as it deems necessary. One copy of each inspection report shall be provided to the
governing body of the inspected Gaming Operation, and the Commission.

[67 Fed. Reg. 46109 (July 12,2002)]

(E) The Gaming Commission may bring any enforcement action necessary to
enforce compliance with the policies and procedures issued pursuant to this Section.

[67 Fed. Reg. 46109 (July 12,2002)]

11


Sac and Fox Code Title

Sac AND Fox NATION
GAMING ORDINANCE OF 2008

Section 1-1. FINDINGS AND DECLARATIONS
(A) | The Sac and Fox Nation finds and declares that:

(1) | Gaming on the Indian lands of the Sac and Fox Nation provides
economic development opportunities and a source of revenue for the Sac and
Fox Nation and its political and business subdivisions which is needed to
promote a strong tribal government, economic self-sufficiency, employment, job
training, and to fund essential social programs and services to its members and
other persons associated with the Nation; and

(2) It is in the interests of the Nation, and the public to regulate and
control gaming in a manner that will protect the environment, the health, security
and general welfare of the Nation, the players, and the community.

(B) Therefore, the Business Committee enacts this Law to protect and
promote the political integrity, economic security, health, safety, and welfare of the
Nation, its members and all persons living in or visiting the Nation.

[History: Public Law No. SF-08-180.]
Section 1-2. CONTINUING AUTHORITY TO REGULATE GAMING

The Sac and Fox Nation retains continuing authority to amend this Title, or to
enact and promulgate additional statutory or regulatory provisions relating to the
conduct of gaming within the jurisdiction of the Sac and Fox Nation in order to protect
the public health, safety, provided, that:

(A) | Amendment of any provision of this Title which is required by the Indian
Gaming Regulatory Act ("IGRA") of October 17, 1988, P.L. 100-497, codified at 25
U.S.C. §§2701, et. seq. and the authorized regulations issued pursuant thereto shall be
effective only if such provisions are approved by the Chairman of the National Indian
Gaming Commission ("NIGC") as provided in P.L. 100-497; and

(B) Such amendments, and any additional statutory or regulatory provisions
shall be interpreted so as not to conflict with any provision of this Title which is required
by the Act of October 17, 1988, P.L. 100-497, 25 U.S.C. §§2701, et. seq. and the
authorized regulations issued pursuant thereto to the end that the provisions of this Title
required by, and approved pursuant to, P.L. 100-497 shall govern any later
amendments, statutes, or regulations unless the same be approved by the Chairman of
the NIGC as provided in P.L. 100-497.

{History: Public Law No. SF-08-180.]


Sac and Fox Code Title

to carry out its regulatory duties, the Commission shall have unrestricted access to all
areas of the gaming operation and to all records. The Commission shall have authority
to take enforcement actions, including notices of violation, closure orders, civil fine
assessments, settlement agreements in lieu of enforcement actions, reopen orders, pre-
Opening agreements, and suspension or revocation of any gaming license when
appropriate.

(C) The Nation recognizes the importance of an independent Gaming
Commission in maintaining a well-regulated gaming operation. The Commission shall
be and shall act independently and autonomously from the Business Committee and
Governing Council, in all matters within its purview. No prior or subsequent review by
the Business Committee or the Governing Council of any actions of the Commission
shall be required or permitted except as otherwise explicitly provided in this Law. To
avoid potential conflicts of interest between the operation and regulation of the Gaming
Facility, the Nation hereby finds that, at a minimum:

(1) _ No elected officer of the Sac and Fox Nation, any member of the
Business Committee, Judges or Justices of the Nation's courts, Attorney
General, Board members or employees of Sac and Fox Tribe, Inc., Sauk
Business Enterprises members, employees of any of the Nation's gaming
facilities, gaming contractors (including any principal of a management or other
contracting company), persons ineligible to be key employees or primary
management officials, or any person who has management responsibilities for
any gaming operation may serve on the Gaming Commission;

(2) No member directly related to or living with any Business
Committee member, Judges, or Justices of the Nation's courts, Attorney General,
Board members or employees of Sac and Fox Tribe, Inc., Sauk Business
Enterprises member may serve on the Commission;

(3) All persons employed by, or who are members of the Commission
are prohibited from gambling in any of the Nation's Facilities; and

[NIGC Model Ordinance, Bulletin No. 05-05, Section 108(b)]
(D) Commission positions shall be filled in the following manner:

Through appointment by the Principal Chief and confirmation by the
Business Committee. If a vacancy occurs for any reason by any member of the
Commission, the Principal Chief shall, upon recommendation from the remaining
Commissioners, make a temporary appointment for the remainder of that term.

(E) Nominees for positions of Commissioner of the Commission must satisfy
the suitability standards set forth for key employees and primary management officials,
found in Section 1-514 et seq. of this Law. Such background investigations shall be
performed under the direction of the Chief of the Nation's Police Department or his or
her designee.

17


4
2 y
é é
N er
Sf ComN’

November 20, 2008

George Thurman
Principal Chief
Sac and Fox Nation
Box 246

Stroud, OK 74079

Dear Chief Thurman:

This is in response to your request, dated October 29, 2008, to review and
approve the second amended Sac and Fax Nation Gaming Ordinance of 2008, adopted
through Resolution SF-09-10 on October 17. 2008. Your request is hereby approved
under the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. § 2710.

The Sac and Fox Nation Gaming Ordinance of 2008 is a comprehensive rewrite
of the Nation’s first gaming code adopted in 1993 and approved in 1994. Among other
things, the new code adds authorization to play Class III games in accordance with the
Nation’s tribal-state compact. The new code also sets forth the powers delegated to the
Nation’s Gaming Commission. I believe that the new gaming code will serve the Nation
well, and I wish you and the Nation success on your gaming endeavors.

If you have any questions about this matter, you may contact Senior Attorney
Jeffrey Nelson at (202) 632-7003.

Sincerely,

YE

YY o-
ete ¢

—
Philip N. Hogen
Chairman

NATIONAL HEADQUARTERS 1441 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


Sac and Fox Code Title

(C) The Commission shall also cause its lawyer to review the proposed
contract to confirm that it is in compliance with all applicable laws and regulations.

(D) If the Commission determines that the draft Management Contract is in
compliance with all applicable laws and regulations, and the proposed management
contractor is suitable for the position under the standards applicable to Key Employees
and Primary Management Officials, the Commission shall issue a conditional license to
the Management Contractor for the draft contract, and authorize its submittal to the
Chairman of the NIGC for final approval. The conditional license shall automatically go
into full force and effect upon the approval of the proposed Management Contract by
the Chairman of the NIGC.

[History: Public Law No. SF-08-180.]
Section 1-552. Licenses Required

No proposed Management Contract shall be forwarded to the NIGC for approval
until the proposed management contractor has been licensed by the Commission.

[History: Public Law No. SF-08-180.]
Section 1-553. Investigatory Fee

In addition to any management contractor license fee which may be due under
the Commission’s fee schedule, every person or entity who applies to the Commission
for a Management Contract shall deposit with the Commission an investigatory fee of
$5,000 dollars to cover the costs of necessary background investigations and the legal
review. Additional fees may be required if the initial fee proves to be inadequate to
cover processing and preliminary investigation costs. All remaining sums not expended
or charged in the processing procedure shall be returned to the applicant at the time the
application is disapproved by the Commission, or at the time it is finally approved by the
Chairman of the NIGC.

[History: Public Law No. SF-08-180.]
Section 1-554. License Term

The management contractor gaming license shall be valid during the term of the
approved Management Contract, and shall be renewable on such terms and conditions
as the Commission may establish by regulation if that Management Contract is
extended or renewed.

[See, 25 C.F.R. §§558.2, 558.4(b)]

[History: Public Law No. SF-08-180.]

40


Sac and Fox Code Title

adverse impact on the Nation, any Gaming Operation, or any law enforcement action
pending before any governmental body of the Nation. Confidential Information includes
information that if compromised may have a significant impact on Sac and Fox
customers, employees, or vendors. Confidential Information requires strong custody
and access procedures, and is available only to authorized groups or functions on a
“need to know’ basis.

(K) “Directly related to” means a spouse, child, parent, grandparent,
grandchild, aunt, uncle, sibling, or first cousin.

(L) “Electronic, computer or other technologic aid” means
(1) Any machine or device that:
(a) Assists a player or the playing of a game;
(b) Is not an electronic or electro-mechanical facsimile; and

(c) Is operated in accordance with applicable Federal
communications law.

(2) Include, but are not limited to, machines or devices that:
(a) Broaden the participation levels in a common game;

(b) Facilitate communication between and among gaming sites:
or

(c) Allow a player to play a game with or against other players
rather than with or against a machine.

(3) Examples of electronic, computer or other technologic aids include
pull tab dispensers and/or readers, telephones, cables, televisions, screens,
satellites, bingo blowers, electronic player stations, or electronic cards for
participants in bingo games.

[25 C.F.R. §502.7. See, 25 U.S.C. §2703(7)(A)(i) ; United States v. 103 Electronic Gambling Devices,
223 F.3d 1091 (9th Cir. 2000); United States v. 1062 MegaMania Gambling Devices, 231 F.3rd 713 (10th
Cir. 2000); Diamond Games Enterprises v. Reno, 230 F.3rd 365 (D.C. Cir. 2000); Seneca-Cayuga Tribe
of OK v. NIGC, 327 F.3rd 1019, (10th Cir. 2003), cert. denied, 540 U.S. 1218 (2004)]

(M) “Electronic or electro-mechanical facsimile” means a game played in an
electronic or electro-mechanical format that replicates a game of chance by
incorporating all of the characteristics of the game, except when, for bingo, lotto, and
other games similar to bingo, the electronic or electro-mechanical format broadens
participation by allowing multiple players to play with or against each other rather than
with or against a machine.


Sac and Fox Code Title

operation of such card games or limitations on wagers or pot sizes in such card
games.

(3) The term "Class II Gaming" does not include:

(a) Any banking card games, including baccarat, chemin de fer, or
blackjack (21), or

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

[25 U.S.C. §2703(7); 25 C.F.R. §502.3; United States v. 103 Electronic Gambling Devices, 223 F.3d 1091
(9th Cir. 2000); United States v. 1062 MegaMania Gambling Devices, 231 F.3rd 713 (10th Cir. 2000);
Diamond Games Enterprises v. Reno, 230 F.3rd 365 (D.C. Cir. 2000); Seneca-Cayuga Tribe of OK v.
NIGC, 327 F.3rd 1019, (10th Cir. 2003), cert. denied, 540 U.S. 1218 (2004).]

(D) _ “Class II! Gaming” means all forms of gaming that are not Class | Gaming
or Class |I Gaming.

[25 U.S.C. §2703(8); 25 C.F.R. §502.4]

{E) “Collateral Agreement” means any contract, whether or not in writing, that
is related, either directly or indirectly, to a Management Contract, or to any rights, duties
or obligations created between the Nation (or any of its members, entities, or
organizations) and a management contractor or subcontractor (or any person or entity
related to a management contractor or subcontractor).

[25 CF.R. §502.5; See, 25 U.S.C. §§2711(a)(3), 2712(a)]

(F) “Commission” or “Gaming Commission” means the Nation’s Gaming
Commission established to perform regulatory oversight and to monitor compliance with
Tribal, Federal, and State regulations or obligations made applicable by the Compact.

(G) “Commissioner” means any member of the Gaming Commission.

(H) “Compact” means the Tribal-State Compact concerning Class Ill Gaming
approved by Sac and Fox Resolution SF-05-74 (2005) and Oklahoma State Question
712 (2004) approved by the Secretary of the Interior and published in the Federal
Register pursuant to 25 U.S.C. §2710(d) on June 1, 2005 (70 Fed. Reg. 31499), and
any successor or additional class Ili Tribal-State Compacts entered into by the Nation
and approved pursuant to federal law.

(I) “Complimentary” means a service or item provided by a gaming facility at
no cost, or at a reduced cost.

(J) “Confidential Information” means all private and proprietary information
belonging to the Nation, or to any political or business subdivision thereof which is
authorized to conduct gaming activities on the Indian lands of the Nation, or involved in
any way with the regulation of gaming which, if compromised, may have a significant

3


Sac and Fox Code Title

(B) | Gaming vendors are vendors who provide gaming supplies and services,
including cash-related services.

(C) Non-gaming vendors are vendors who provide services that do not have
the ability to impact the integrity of gaming operations, such as media advertising,
facility maintenance workers, linen and laundry services, and food and beverage
suppliers. The Commission shall create a regulation detailing which vendors fall into
this category and shall maintain a register of the non-gaming vendors that it licenses.
The regulation may exempt from licensing requirements non-gaming vendors who:

(1) area Tribal, Local, State, or Federal government agencies;
(2) are regulated by a State, a tribe, or the federal government; or

(3) will provide goods of insubstantial or insignificant amounts or
quantities;

if the Commission determines that licensing of the vendor is not necessary to protect
the public interest.

[History: Public Law No. SF-08-180.]
Section 1-542. Submission of Vendor Application

In order to obtain a gaming vendor license, the business must complete a vendor
application and submit to background checks of itself and its principals. Principals of a
business include its officers, directors, management, owners, partners, non-institutional
stockholders that either own 10% or more of the stock or are the 10 largest
stockholders, and the on-site supervisor or manager under the agreement with the
Nation, if applicable. The Gaming Commission shall, by regulation, establish the scope
of the investigation which shall be conducted concerning different classes of vendors to
protect the public interest. A minimal investigation shall consist of verification of the
basic information contained in the license application. The most strenuous investigation
shall be the equivalent of that required for Key Employees or Primary Management
Officials.

[History: Public Law No. SF-08-180.]
Section 1-543. Contents of the Vendor Application
(A) Applications for gaming vendor licenses must include the following:

(1) Name of business, business address, business phone, federal tax
ID number (or SSN if a sole proprietorship), main office address if different from
the business address, any other names the applicant has done business under
during the preceding ten years, type of service applicant will provide;

36


Sac and Fox Code Title

covering the employees of gaming operations, as is determined to be prudent and
necessary.

[History: Public Law No. SF-08-180]

Subchapter A—ADMINISTRATIVE HEARINGS
Section 1-420. Authority to Conduct Hearings

The Commission is hereby authorized to issue subpoenas, take testimony, and
conduct hearings on all regulatory matters, including matters related to the revocation of
licenses of Key Employees, Primary Management Officials, and others as provided in
this Title. The conduct of Commission Hearings shall be according to the Rules and
Regulations of the Gaming Commission.

[History: Public Law No. SF-08-180]

Subchapter B—CIvIL FINES AND PENALTIES
Section 1-430. Civil Fines and Civil Penalties

The Commission is hereby authorized to impose civil fines and civil penalties not
fo exceed Twenty-five Thousand Dollars ($25,000) for each separate material violation
of the provisions of the gaming laws of the Nation, upon any licensee or employee of a
gaming operation, upon any management contractor or employee thereof, or upon any
applicant for such a license or contract, or other person involved in any way with a
Gaming Operation, or gaming facility who shall:

(A)  Willfully defraud, deceive, or misrepresent any material fact to any official
of the Commission, to an official of the Nation to influence the performance of duty, to
the National Indian Gaming Commission during the course of the offender's application
for employment, license, or contract, or during the course of such offender's license,
employment or contract, or

(B) Embezzle, steal, cheat, or otherwise unlawfully convert to their own use,
or the use of another, title or possession of any property belonging to the Nation, or to
any Gaming Operation or gaming facility, a fellow employee or licensee, or member of
the gaming public patronizing a licensed gaming facility, or

(C)  Harass, threaten, assault or commit a physical trespass upon the person
or unlawfully injure the property of any official of the Commission or of the Nation or
National Indian Gaming Commission, a fellow employee or licensee, or member of the
gaming public patronizing a licensed gaming facility.

The Commission may establish by regulation a schedule of minimum and maximum civil

fines or civil penalties to be imposed for particular violations not in excess of the amount
authorized by this section.

24


Sac and Fox Code Title

Section 1-555. License Suspension or Revocation

(A) _ If, after the issuance of a management contractor license, the Commission
receives from the NIGC, or any other source, reliable information indicating that a
management contractor is not eligible for employment, the Commission shall suspend
such license and shall notify in writing the licensee of the suspension and the proposed
revocation.

[25 C.F.R. §558.5(b)}

(B) The Commission shall notify the licensee of a time and a place for a
hearing on the proposed revocation of a license.

[25 C.F.R. §558.5(c)]

(C) After a revocation hearing, the Commission shall decide whether to revoke
or to reinstate the management Contractor license. The Commission shall notify the
NIGC of its decision.

[25 C.F.R. §558.5(d)}
[History: Public Law No. SF-08-180.]
Section 1-556. Final NIGC Approval Required

At the initiation of each application for a Management Contract and at all material
times thereafter, applicants shall be advised by the Commission that the final approval
of such a contract or agreement is reserved fo the Chairman of the NIGC and that the
approval and execution of the contracts, and the issuance of the Commission's
conditional license, is only a preliminary step in the final approval process. A
Management Contract shall not be effective and shall be considered void until approved
by the Chairman of the NIGC.

[History: Public Law No. SF-08-180.]
Subchapter E—FACILITY LICENSES
Section 1-561. Facility Licenses Required

The Commission shall issue a separate license to each place, facility, or location
on Indian lands where class II and/or Class III gaming is conducted under this Title.
The Commission shall specify the form, conditions and content for the application for
such licenses, which shall be submitted by the chief management official or the
proponent of the facility.

[25 U.S.C. §2710(b)(1)(B); 25 C.F.R. §522.4(b)(6)]

[History: Public Law No. SF-08-180.]

41


Sac and Fox Code Title

Section 1-408. Record Keeping System

The Commission shall establish a complete record keeping system and
procedures necessary to ensure efficient record keeping and secure administrate
control of the record keeping system. At a minimum, this record keeping system will:

(A) _ Maintain all records concerning licenses issued, persons denied licenses,
persons prohibited from engaging in gaming activities, persons who have voluntarily
requested that they not be allowed to participate in gaming within the Nation's
jurisdiction, and all other official activities of the Gaming Commission.

(B) Maintain a handbook of NIGC documents, recommended and required
forms and procedures, and NIGC informational releases and documents by use of the
NIGC Fax on Demand System, or otherwise.

(C) Furnish necessary information, and substantiate any reports, to the
Principal Chief, the Business Committee, the Governing Council, or any relevant
committee or department thereof, concerning proposed management contracts and the
principals thereof proposing such a contract, Proposed gaming sites, or locations,
applications for gaming operations, gaming machines, equipment and supplies,
manufacturers and suppliers thereof, or on any other gaming matter, and to maintain
the factual predicates for actions taken by the Commission.

(D) Provide adequate safeguards to protect confidential information and guard
against its disclosure other than as may be authorized or required by law.

[History: Public Law No. SF-08-180]
Section 1-409. Reporting NIGC Actions

The Commission shall immediately advise the Business Committee, the Tribal
Attorney / General Counsel and the Attorney General when any actions of NIGC may
adversely affect the Nation or any gaming facility licensed by the Nation through
Commission.

[History: Public Law No. SF-08-180]
Section 1-410. Auditing Insurance Compliance

The Commission shall monitor the bonding and insurance coverage of all gaming
facilities to insure that the Nation is a named insured against property losses including
buildings and equipment owned, rented or leased by the Nation which are used in any
gaming facility; against statutory, common law, and constitutional tort claims, and
against such claims which may arise pursuant to a compact which is in effect; against
thefts and burglaries involving property or funds, misapplications or misappropriations of
property or funds by agents, servants or employees of the gaming facility (including any
management contractor), and against any other peril or hazard which the Commission
may direct, including, but not limited to, fidelity and fiduciary bonds or insurance

23


Subchapter A —Key Employee And Primary Management Official Licensing.............4. ZA

Section 1-511.
Section 1-512.
Section 1-513.
Section 1-514.
Section 1-515.
Section 1-516.
Section 1-517.
Section 1-518.
Section 1-519.
Section 1-520.
Section 1-521.

Licenses Required
License Application Forms
Fingerprints :...csessesecssses,
Background Investigations ......
Background Check Procedures
Eligibility Determination ...........
Forwarding Documentation to the NIGC.
Report to the NIGC.
Granting a Gaming Licen:
License Term...
License Suspension or Revocation

Subchapter B —Non-Key Employee Licensing ........:s.0:sscssesssssssssscssusssssesasssssecesetesseees

Section 1-531.
Section 1-532.
Section 1-533.
Section 1-534.
Section 1-535.
Section 1-536.

Subchapter C —Gaming Vendor Licensing

Section 1-541.
Section 1-542.
Section 1-543.
Section 1-544.
Section 1-545.

Section 1-546.
Section 1-547.

Subchapter D —Management Contractor Licensing

Section 1-551.
Section 1-552.
Section 1-553.
Section 1-554.
Section 1-555.
Section 1-556.

Subchapter E —Facility Licenses

Section 1-561.

Licenses for Non-Key Employees
Applicant Investigations.
Licensing Standard.....
Eligibility Determination .
License Term.
Fingerprinis ...

Licenses for Vendors...
Submission of Vendor Application..
Contents of the Vendor Application
Vendor Background Investigation...
Vendor Background Investigation Report.
Licenses for Non-Gaming Vendors
License Term, Suspension, Revocation

Management Contractors Licenst
Licenses Required...
investigatory Fee
License Term...
License Suspension or Revocation
Final NIGC Approval Required ....

Facllity Licenses. Required ..cecssscssssnsiscsninsncniemnsevevenssecsveeindAll

vi


Sac and Fox Code Title

(1) | Commissioners shall not hold financial interests that conflict with
the conscientious performance of their duties as managers and regulators. Per
Capita distributions are not considered financial interests that would conflict with
the conscientious performance of duty by a manager or regulator.

(2) Commissioners shall not engage in financial transactions using
nonpublic information or allow the improper use of such information by others on
their behalf to further any private interest.

(3) | Commissioners shall not solicit or accept any gift or other item of
monetary value, including complimentary items or services, from any person or
entity seeking official action or inaction from, doing business with, or conducting
activities regulated by the member's organization, or whose interests may be
substantially affected by the performance or nonperformance of the Members!
duties except as specifically authorized by law.

{4) | Commissioners shall make no unauthorized commitments or
Promises of any kind purporting to bind the Nation or any of its agencies or
subordinate entities.

(5) | Commissioners shall not use their positions for private gain.

(6) | Commissioners shall act impartially, in accordance with all relevant
laws, and shall not give preferential treatment to any person, nor wrongfully
withhold action to which any person is entitled on account of any matter personal
to the Member.

(7) | Commissioners shall ensure that the property and assets of gaming
facilities are properly segregated and safeguarded, and that such property and
assets are not used for unauthorized activities.

(8) Commissioners shall not engage in outside employment or
activities, including seeking or negotiating for future employment, which conflict
with their official duties and responsibilities.

(9) | Commissioners shall disclose waste, fraud, abuse, and corruption
to appropriate authorities.

(10) Commissioners shall endeavor to avoid any actions creating the
appearance that they are violating the law or the ethical standards applicable to
the member.

(11) Commissioners shall disclose any real or apparent financial or

personal conflicts. If there is a real conflict or the appearance of one, the member
shall not take part in any decision related to the conflict.

14


Sac and Fox Code Title

(C) The Gaming Commission and its investigator may promise to keep
Confidential the identity of each person interviewed in the course of the investigation if
so requested, other than disclosure as required under Federal, Tribal, or State law
made applicable by Compact obligations, and in the performance of their lawful duties.

[History: Public Law No. SF-08-180.]
Section 1-516. Eligibility Determination

(A) The Commission shall review a person's 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 applicants for employment in a
Gaming Operation. 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 Gaming Operation within the jurisdiction of the
Nation shalt not employ that person in a Key Employee or Primary Management Official
position.

[25 C.F.R. §558.2]

(B) This determination may include a Statement describing how the
information submitted by the applicant was verified; a Statement of results following an
inquiry into the applicant's prior activities, criminal record, if any, and reputation, habits
and associations; a Statement showing the results of interviews of a sufficient number
of knowledgeable people (such as former employers, personal references, and others
referred to by the applicant) in order to provide a basis for the Commission to make a
finding concerning the eligibility for licensing required for employment in a Gaming
Operation; and a Statement documenting the disposition of all potential problem areas
noted and potential disqualifying information obtained. A copy of the investigative report
showing this information may be attached to the Eligibility Determination unless these
matters are restated in that instrument.

[25 C.F.R. §556.5(c). Moved from Model Ordinance Section 209(c)}
[History: Public Law No. SF-08-180.]

Section 1-517. Forwarding Documentation to the NIGC

When a Key Employee or Primary Management Official is employed to work at a
Gaming Operation authorized by this ordinance, the Gaming Commission shall forward
to the NIGC a completed application for employment, conduct the background
investigation, and make the determination.

[25 C.F.R. §558.3(a)]
(History: Public Law No. SF-08-180.]

Section 1-518, Report to the NIGC

31


Sac and Fox Code Title

(A) | The Commission shall prepare and forward a report on each background
investigation of each Key Employee or Primary Management Official to the NIGC. An
investigative report shall include all of the following:

(1) Steps taken in conducting a background investigation;
(2) Results obtained;
(3) Conclusions reached; and
(4) The bases for those conclusions.
[25 C.F.R. §556.5(a), (b)}

(B) |The Commission shall forward the completed investigative report to the

NIGC within 60 days after a Key Employee or Primary Management Official begins
work.

[25 C.F.R. §558.3(b)j

(C) The Commission shall submit, with the investigative report, a copy of the
eligibility determination, unless the NIGC shall have advised the Commission that the
submission of the eligibility determination is not necessary.

[25 C.F.R. §556.5(c)]
(D) Ifa license is not issued to an applicant, the Commission:
(1) Shall notify the NIGC; and

(2) Shall forward copies of its eligibility determination and investigative
report (if any) to the NIGC for inclusion in the Indian Gaming Individuals Records
System.

[25 C.F.R. §556.5(d)]

(E) The Commission shall retain all applications for employment and reports
(if any) of background investigations for no less than three (3) years from the date of
termination of employment, or denial of a license application. Records concerning
applicants for licenses as Key Employees or Primary Management Officials shall be
made available for inspection by the Chairman of the NIGC or his or her designee.

[25 C.F.R. §558.1 (c)]
[History: Public Law No. SF-08-180.]
Section 1-519. Granting a Gaming License

(A) _ If, within a thirty (30) day period after the NIGC receives a report, the
NIGC notifies the Gaming Commission that it has no objection to the issuance of a

32


Sac and Fox Code Title

(G) The Commission shall ensure that all records and information obtained as
a result of an employee background investigation shall remain confidential and shall not
be disclosed to persons who are not directly involved in the licensing and employment
Processes. Information obtained during the course of an employee background
investigation shall be disclosed to members of management, human resource personnel
or others employed by the tribal gaming operation on a need-to-know basis for actions
taken in their official capacities.

This Section does not apply to requests for such information or records from any tribal,
federal or state law enforcement or regulatory agency, or for the use of such information
or records by the Commission and staff in the performance of their official duties.

[NIGC Model Ordinance, Bulletin No. 05-05, Section 108(g)]

(H) Terms of Office for Gaming Commissioner shall be as follows: the Chair
shall serve an initial term of one year, with subsequent Chairs serving four-year terms.
The Vice-Chair and Commissioner(s) shall serve an initial term of two years, with
subsequent Vice Chairs and Commissioners serving four-year terms.

(I) Tribal citizens previously convicted of a felony, of embezzlement, of theft,
or of any other money-related crime or honesty-related crime (such as fraud) will only
be allowed to serve as Commissioners if the Business Committee specifically finds a
significant amount of time has passed and that the person is now of trustworthy
character. The Business Committee shall require a criminal history check with
appropriate law enforcement agencies and shall review this criminal history report and
make an appropriate suitability determination before appointing an individual to a
position as a Commission.

(J) The independence of the Commission is essential to a well-regulated
Gaming Operation. For that reason, Commissioners may only be removed from office
by the Grievance Committee prior to the expiration of their respective terms for neglect
of duty, misconduct, malfeasance, or other acts that would render a Commissioner
unqualified for his/her position. Any allegations of neglect of duty, misconduct,
malfeasance, or other acts that would render him or her unqualified for his/her position
must be substantiated by a preponderance of the evidence. Commissioners will be
given an opportunity to provide evidence rebutting the grounds for their proposed
removal before the removal is considered. A vote of the Grievance Committee on the
validity of the removal shall be final and not subject to further appeal. A wrongful
removal shall entitle the affected Commissioner to compensation for fees and expenses
incurred in an appeal and any pay withheld.

(K) A majority of the Commission shall constitute a quorum. The concurrence
of a majority of the members appointed to the Commission shall be required for a final
determination by the Commission. The Commission may act in its official capacity even
if there are vacancies on the Commission.

20


Sac and Fox Code Title

THAT: this Ordinance shall be effective upon its approval by the Chairman of the
National Indian Gaming Commission, and shall be promptly filed in the Office of
the Court Clerk of the Sac and Fox Nation upon such approval; and

THAT: this Ordinance shall be codified at the appropriate locations in the Sac and Fox
Code of Laws.

CERTIFICATION

WE, George Thurman, Principal Chief, and Gwen McCormick Wilburn, Secretary of the
Sac and Fox Nation, do hereby certify the foregoing Resolution: P.L. #SF-09-10, to be
a true, complete, and exact copy of the resolution as approved by the Business
Committee in a properly called, noticed, and convened meeting held at the Sac and Fox
Capitol Grounds, Sac and Fox Reservation, Stroud, Oklahoma on the day and year
above stated, a quorum being present, by a vote of: George Thurman-yes, Cheryl
McClellan Tofpi-yes, Michael Hackbarth-yes, Gwen McCormick Wilburn-yes, and Stella
Nullake Nanaeto-yes.

Kop MWe

George Thurman, Principal Chief
Sac and Fox Nation



Sac and Fox Code Title

Section 1-547. License Term, Suspension, Revocation

(A) The vendor gaming license issued shall be valid for a period of two (2)
years from the date of issue so long as the vendor's business remains substantially
unchanged, the ownership and management of the vendor's business does not
significantly change, and the vendor routinely supplies its products or services to the
gaming industry within the jurisdiction of the Nation, and shall be renewable on such
terms and conditions as the Commission may establish by regulation.

(B) In the event of changes in the ownership or management of the vendor's
business, it shall promptly notify the Commission who shall conduct such investigation
as is proper under the circumstances, and issue a new or amended license if
necessary, unless the change creates an unacceptable risk to the public interest, the
health, welfare, and safety of the Nation or the public, or to the integrity of the gaming
industry within the jurisdiction of the Nation, in which case the Commission shall notify
the vendor of its concerns and demand that the vendor take specified corrective action.
If the vendor fails to take the necessary corrective action, the Commission may suspend
the vendor license and institute revocation proceedings.

(C) | Such gaming licenses may be suspended or revoked in the same manner
as licenses for Key Employees and Primary Management Officials.

[See, 25 C.F.R. §§558.2, 558.4(b)}

[History: Public Law No. SF-08-180.]
Subchapter D—MANAGEMENT CONTRACTOR LICENSING
Section 1-551. Management Contractors License

(A) _ In addition to the necessary license applications for each of its proposed
Key Employees or Primary Management Officials, every proponent of a Management
Contract shall submit to the Commission for its approval a copy of the draft contract,
and all additional documents required by, or to be submitted to, the NIGC including, but
not limited to background investigation applications and any supporting materials and
documents.

(B) The Commission shall thereupon perform an investigation of the
prospective candidate and its affiliates at least as stringent as the investigation
conducted on applications for a license as a Key Employee or Primary Management
Official. The Commission shall provide documents, analysis and recommendations to
the Business Committee and the Nation's authorized entity having authority over the
Gaming Operation which would be subject to the Management Contract regarding
whether a contract should be entered into with the applicant. The Commission's
analysis and recommendations should take place before application is submitted to the
NIGC,

39


Sac and Fox Code Title

and

(2) Whether the applicant is a partnership, corporation, limited liability
company, sole proprietorship, or other entity;

(3) If the applicant is a corporation, the place of incorporation, and the
qualification to do business within the jurisdiction of the Nation unless it be a
domestic corporation.

(4) Trade name, other names ever used, names of any wholly owned
subsidiaries or other businesses owned by the vendor or its principals;

(5) General description of the business and its activities;

(6) | Whether the applicant will be investing in or loaning money to the
Gaming Operation and, if so, how much;

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

(8) A list of Indian tribes with which the vendor has an existing or
previous business relationship, including ownership, financial, or management
interests in non-gaming activities;

(9) Names, addresses, and phone numbers of three business
references with whom the company had regularly done business for the last five
years;

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

(11) If the business has ever had a license revoked for any reason, the
circumstances involved;

(12) A list of lawsuits to which the business has been a defendant,
including the name and address of the court involved, and the date and
disposition if any;

(13) List the business' funding sources and any liabilities of $50,000 or
more, unless the business is publicly traded, or is willing to submit a certified
financial statement;

(14) A list of the principals of the business, their social security numbers,

addresses and telephone numbers, title, and percentage of ownership in the
company;

37


Sac and Fox Code Title

[25 U.S.C. §2710{b)(3), 25 C.F.R. §290.2; “NIGC Bulletin 05-05"§106(a); SF-GC-96-04; 61 Fed. Reg.
2904 et seq. (June 7, 1 '996) and letter approving revenue allocation plan dated May 19, 1997 from Acting
Area Director Anadarko Area Office, Bureau of Indian Affairs]

(X) “Person having a direct or indirect financial interest in a Management
Contract” means:

(1) When an individual person or persons are party to a Management
Contract, any individual person having a direct financial interest in such
Management Contract;

(2) _ When a trust is a party to a Management Contract, any beneficiary
or trustee of that trust;

(3) When a partnership is party to a Management Contract, any
partner;

(4) When a corporation is a party to a Management Contract, any
person who is a director or who holds at least ten percent (10%) of the issued
and outstanding stock alone or in combination with another stockholder who is
directly related to such person; or

(5) | When an entity other than a natural person has an interest in a
trust, partnership or corporation that has an interest in a Management Contract,
all parties of that entity are deemed to be persons having a direct financial
interest in a Management Contract.

[25 C.F.R. §502.17]

(Y) “Person having management responsibility for a Management Contract”
means the person designated by the Management Contract as having management
responsibility for a Gaming Operation, or a portion thereof.

[25 C.F.R. §502.18]
(Z) “Primary Management Official” means:

(1) The person(s) having management responsibility for a
Management Contract;

(2) Any person who has authority:
(a) To hire and fire employees;
(b) | To set up working policy for a Gaming Operation; or

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

[25 C.F.R. §502.19. See, 25 U.S.C, 2710(b)2)(F)}


Sac and Fox Code Title

business subdivisions of the Nation, and social or charitable organizations of the Nation
that are authorized by tribal law to operate gaming to support their purposes.

[25 U.S.C. §2710(b)(2)(A); 25 C.F.R. §522.4(b)(1); Senate Report (Indian Affairs Committee) No. 100-
446, Aug. 3, 1988, 1988 U.S.C.C.A.N. 3071, 3082]

(B) Privately owned gaming is prohibited within the jurisdiction of the Nation.
[History: Public Law No. SF-08-180.]
Section 1-202. Use of Gaming Revenue
Net revenues from tribal gaming shall be used only for the following purposes:
(A) _ To fund tribal government operations and programs;
(B) To provide for the general welfare of the Nation and its members;
(C) To promote tribal economic development;
(D) To donate to charitable organizations; or
(E) To help fund operations of local government agencies.
[25 U.S.C. §2710(b)(2\(B); 25 C.F.R. §522.4(b)(2)}
[History: Public Law No. SF-08-180.]
Section 1-203. Per Capita Payments

(A) The Revenue Allocation Plan adopted by Resolution No. SF-GC-96-04,
approved effective October 1, 1996, in accordance with the United States Department
of the Interior's “Guidelines to Govern the Review and Approval of Per Capita
Payments” dated December 21, 1992, or any amended and approved Revenue
Allocation Plan, shall continue to govern all Per Capita Payments made from net
revenues.

(B) _ If the Nation elects to make per capita payments to tribal members from
revenues derived from its gaming operations, it shall ensure that the following
requirements of 25 C.F.R. Part 290 are met:

(1) The Nation shall authorize and issue such payments only in
accordance with a revenue allocation plan submitted to and approved by the
Secretary of the Interior under 25 U.S.C. §2710(b)(3).

[25 U.S.C. §2710(b)(3); 25 C.F.R. §522.4(b)(2)(ii)}

(2) The Nation shall ensure that the interests of minors and other
legally incompetent persons who are entitled to receive any per capita payments
under a Tribal per capita payment plan are protected and preserved. Per capita

9


Sac and Fox Code Title

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

the Nation withdrew the Law submission and resubmitted the Law on or
about August 5, 2008 to address these issues and submit an Amended
Gaming Ordinance; and

the NIGC had new previously unidentified issues with one portion of the
definition of “Indian Lands” and the definition of “games similar to bingo”
and identified in a September 19, 2008 letter and indicated it would
recommend disapproval of the submission; and

the Nation disagrees with the basis for disapproval but desires to move
forward by withdrawing the existing Gaming Ordinance submission and
resubmitting the Second Amended Gaming Ordinance of 2008 with the
remaining provisions and preserve the legal issue for later NIGC
determination through a subsequent amendment; and

the enactment of the Second Amended Gaming Ordinance of 2008 is in
the best interest of the Sac and Fox Nation.

NOW, THEREFORE,

BE IT ENACTED BY THE BUSINESS COMMITTEE OF THE SAC AND Fox NATION, PURSUANT TO
THE AUTHORITY VESTED THEREIN BY THE CONSTITUTION AND CHARTER:

THAT: upon approval of this Law by the Chairman of the NIGC as required by federal
law, the current Title 4 of the Sac and Fox Code of Laws, and all prior ordinances
or resolutions inconsistent with, or intended to be superseded by, this Act,
including P.L. #SF-82-29, March 19, 1982; P.L. #SF-82-43, April 30, 1982; P.L.
#SF-93-68, July 22, 1993; P.L. #SF-95-14, October 6, 1994; #SF/GC-03-07, July
19, 2003; P.L. #SF-04-86, May 10, 2004; P.L. #SF-04-138, August 23, 2004; P.L.
#SF-08-180, May 8, 2008; P.L. #SF-08-237, August 5, 2008 are hereby
repealed; and

THAT: the following provision shall then be codified in the Sac and Fox Code in a new
Title to be entitled: “Gaming” and this Law shall thereafter govern all Class |, Il
and II Gaming within the jurisdiction of the Sac and Fox Nation.

AND, BE IT FURTHER ENACTED BY THE BUSINESS COMMITTEE OF THE SAC AND Fox NATION,
PURSUANT TO THE AUTHORITY VESTED THEREIN BY THE CONSTITUTION AND CHARTER:

THAT: upon enactment of this Ordinance, it shall be submitted forthwith to the Chairman
of the National Indian Gaming Commission for approval pursuant to the 25
U.S.C. §§2710 (b) and (d); and


Sac and Fox Code Title

(B)(9) of this section, the criminal charge, the name and address of the court
involved and the date and disposition;

(11) 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;

(12) A photograph taken within the last year; and

(13) Any other information the Gaming Commission deems relevant.
[25 C.F.R. §556.4]
[History: Public Law No. SF-08-180.]
Section 1-515. Background Check Procedures

(A) As part of its review procedure, the Gaming Commission, or its agent,
shall conduct a background investigation on each applicant sufficient to allow the
Gaming Commission to make an eligibility determination. The investigator shall:

(1) Verify the applicant's identity through items such as a social
security card, drivers license, birth certificate, or passport;

(2) Contact each personal and business reference provided in the
License Application, when possible;

(3)  Obiain a personal credit check, at the Commission's discretion;
(4) Conduct a civil history check;

(5) | Conduct a criminal history check, and submit the applicant's
fingerprints to the NIGC for additional checking, and further obtain information
from the appropriate court regarding misdemeanor convictions and criminal
charges within the last ten (10) years and any past felony or felonies;

(6) Inquire into any previous or existing business relationships with the
gaming industry and Indian tribes by contacting the entities or tribes;

(7) Verify the applicant's history and status with any licensing agency
by contacting the agency; and

(8) Take other appropriate steps to verify the accuracy of the
information, focusing on problem areas noted.

(B) The assigned investigator shall create an investigative report noting the
steps taken, information gained, potential problem areas, and disqualifying information.

30


Sac and Fox Code Title

(F) The Commission shall have authority to:

(1) Conduct or cause background investigations to be conducted on, at
a minimum, Primary Management Officials and Key Employees;

(2) Review and approve all investigative work conducted;
(3) Report results of background investigations to the NIGC;

(4) Obtain and process fingerprints, or designate a law enforcement
agency to obtain and process fingerprints;

(5) Make licensing suitability determinations, which shall be signed by
the Chairman of the Gaming Commission;

(6) Issue gaming licenses to management officials and employees of
the operations, consistent with the suitability determination;

(7) Establish standards for licensing Tribal gaming operations within
the jurisdiction of the Nation;

(8) _Issue facility gaming licenses to Tribal gaming operations within the
jurisdiction of the Nation;

(9) Inspect, examine and monitor all gaming activities through
surveillance, compliance and internal audit activities, approve the rules of various
games, and authorize and inspect games, tables, equipment, machines, cards,
dice, and chips or tokens and other paraphernalia used in all gaming operations
to ensure compliance with applicable law;

(10) Inspect, examine, and monitor the handling of all cash, cash
equivalents, and cash transaction and accounting systems, and to have
immediate access to review, inspect, examine, photocopy and audit all records of
any gaming establishment within the jurisdiction of the Nation;

(11) Ensure compliance with all applicable laws of the Nation, the state,
and federal laws, rules, and regulations regarding Indian gaming;

(12) Investigate any suspicion of wrongdoing associated with any
gaming activities and report such activities to appropriate law enforcement
agents;

(13) Hold hearings on patron complaints, tort claims, and prize claims, in

compliance with procedures established in the gaming ordinance, or as
requested by any gaming facility;

18


Sac and Fox Code Title

Sac AND Fox NATION

Route 2, Box 246 * Stroud, Oklahoma 74079 + (918) 968-1141 * FAX (918) 968-1142

ED DATE_ {0-29 -OF
INTHE CICTRIGT COURT RESOLUTION SF-09-10 EL£2 oF

SECRETARY

7008 OCT 29 P 223 sac aNnD FOX NATION SAC & FOX NATION .

___ SAC AND £0X NSPECIAL BUSINESS COMMITTEE MEETI dre d
CHARLOTTE CARTY COURT CLERG AG AND FOX RESERVATION
iy: oeputy | STROUD, OKLAHOMA

OCTOBER 17, 2008

A PUBLIC LAW ADOPTING AND ENACTING THE SECOND AMENDED GAMING
ORDINANCE OF 2008 AUTHORIZING GAMING, SETTING THE TERMS FOR CLASS
1, Il, AND Ill GAMING OPERATIONS ON THE INDIAN LANDS OF THE SAC AND
FOX NATION, AS AMENDED.

WHEREAS, the Business Committee of the Sac and Fox Nation met at a duly special
called, noticed, convened, and held meeting at the date and place
aforesaid, there being a quorum present; and

WHEREAS, the Business Committee is authorized to transact business and otherwise
act on behalf of the Nation pursuant to the Constitution, Charter, and Laws
of the Sac and Fox Nation; and

WHEREAS, the Indian Gaming Regulatory Act requires that tribes engaging in Class II
and Class Ill Gaming as defined in that Act adopt a Law prescribing
procedures and methods to be utilized with regard to the conduct of
gaming within their Indians lands; and

WHEREAS, the Nation enacted the Gaming Ordinance of 2008 on May 8, 2008 and
submitted the same to the National Indian Gaming Commission (“NIGC’)
for approval pursuant to 25 C.F.R. Part 522 on or about May 21, 2008;
and

WHEREAS, the NIGC had issues with one portion of the definition of “Indian Lands’ as
follows “all lands within the limits of the Nation’s reservation as described
by the Act of February 13, 1891, Ch. 165, 26 Stat. 749” and indicated it
would disapprove the submission; and


Sac and Fox Code Title

[History: Public Law No. SF-08-180]
Section 1-436. Personal Jurisdiction

All gaming operation patrons, 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, descent, or tribal membership,
shall be deemed to have voluntarily submitted themselves, or the entities which employ
them in the case of management contractors, to the jurisdiction of the Commission and
to the provisions of this section and to the provisions of other relevant sections of this
Title and to the provisions of any other gaming laws, rules or regulations of the Nation
by virtue of such participation, contracts, licenses and applications therefore with the
gaming industry within the jurisdiction of the Nation and the Nation's authority to
regulate such gaming as confirmed by the IGRA.

[History: Public Law No. SF-08-180]

Section 1-437. Failure to Pay

The failure to pay any civil fine or civil penalty which has become final shall
constitute grounds and cause for the revocation of licenses, termination of employment
of any employee of a licensed gaming operation, and a prohibition upon such person
entering any gaming facility with the jurisdiction of the Nation. Notwithstanding any
inconsistent provisions which may be contained in the Nation's Personnel Manual,
grievance procedures contained therein shall not be available to gaming operation
employees with respect to the imposition or assessment of civil fines and civil penalties
by final orders of the Commission.

(History: Public Law No. SF-08-1 80]
Chapter Five—LicENSsING
Section 1-501. Licenses Required

A separate license shall be issued to every employee of every gaming facility,
including all employees of management contractors licensed by the Commission who
have any responsibilities at a gaming facility within the jurisdiction of the Nation.

[History: Public Law No. SF-08-180.]
Section 1-502. Licenses To Be Displayed

The authorized holder of any gaming license shall promptly exhibit such licenses
to any member of the public, any Commission employee, any agent or employee of the
NIGC, 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.

[History: Public Law No. SF-08-180.]

26


Sac and Fox Code Title

Section 1-534, Eligibility Determination

(A) __ If the Commission determines that employment of the license applicant in
the position or class of positions for which the license is requested would not be
inconsistent with the licensing standard, the purpose of this Title, or the public interest,
then the license shall be issued.

(B) If the Commission determines that such employment would be
inconsistent with the licensing standard, the purpose of this Title, or the public interest,
then that person shall not be licensed, and shall not be employed at any gaming facility
within the jurisdiction of the Nation in such position or class of positions.

[History: Public Law No. SF-08-180.]

Section 1-535. License Term

(A) The non-key employee gaming license issued shall be valid for a period of
two years from the date of issue so long as the employee remains empioyed within the
gaming industry in the Nation, and shall be renewable on such terms and conditions as
the Commission may establish by regulation.

(B) — Such gaming licenses may be suspended or revoked in the same manner
as licenses for Key Employees and Primary Management Officials.

[See, 25 CFR. §§558.2, 558.4(b)]
[History: Public Law No. SF-08-180.]
Section 1-536. Fingerprints

Each applicant for a non-key employee license shall be required to have
fingerprints taken as part of the license application procedure. Fingerprints shall be
taken and be forwarded to the NIGC for processing through the FBI to determine the
applicant's criminal history, if any.

[25 C.F.R. §522.2(h); 25 C.F.R. §556.4(a)(14)]
[History: Public Law No. SF-08-180.]

Subchapter C—GAMING VENDOR LICENSING
Section 1-541. Licenses for Vendors

(A) Vendors of gaming services or supplies must have a vendor license from
the Commission in order to transact business with any gaming facility operated within
the Nation. Contracts for professional legal and accounting services are excluded from
this section.

35


Sac and Fox Code Title

(L) Gaming Commissioners shall be compensated at a level determined by
the Business Committee. Commissioner compensation shall not be based on a
percentage of gaming revenue to ensure the Commission is not improperly influenced.

[History: Public Law No. SF-08-180]
Section 1-402. Buildings and Equipment»

The Commission will use such buildings and equipment in the performance of its
duties and responsibilities as may be authorized by the Business Committee. The
Commission shall present its equipment needs in its budget.

[History: Public Law No. SF-08-180]
Section 1-403. Personnel

(A) The Commission is hereby authorized to hire, fire, promote, demote,
suspend, direct, supervise, train, manage, and appropriately delegate responsibilities
and duties to such supervisory employees, accountants, investigators, secretaries,
clerks, directors, administrators and other necessary personnel needed by the
Commission to perform its duties and responsibilities.

(B) All such employees, and all maiters relating to the hiring, promotion,
discipline, and discharge of such employees shall be subject to the provisions of the
Nation's Personnel Manual and in accord with the Commission's approved budget, and
any amendmenis thereto.

[History: Public Law No. SF-08-180]
Section 1-404. Reasonable Assistance

The Commission may seek from, and shall render to, any department or agency
of the Nation's government, cooperating agencies of the federal government including
the National Indian Gaming Commission, any state or municipality, any foreign state or
law enforcement agency, other tribal or state gaming regulatory bodies or law
enforcement agencies, all reasonable, necessary, and lawful assistance that may be
required or allowed by law to protect the public, enforce the laws, and secure the
integrity of the gaming industry.

[History: Public Law No. SF-08-180]
Section 1-405. Enforcement Actions

(A) _ In the performance of its duties and responsibilities, the Commission shall
use its best judgment and discretion in all legal matters arising before it for decision,
and may seek the additional advice of the Attorney General, Tribal Attorney / General
Counsel, the Business Committee or other offices or agents of the Nation before making
significant decisions.

21


Sac and Fox Code Title

[25 C.F.R. §502.8. See, 25 U.S.C. §2703(; 7)(B)(ii) ; United States v. 103 Electronic Gambling Devices,
223 F.3d 1091 (9th Cir. 2000); United States v. 1062 MegaMania Gambling Devices, 231 F.3rd 713 (10th
Cir. 2000); Diamond Games Enterprises v. Reno, 230 F.3rd 365 (D.C. Cir. 2000); Seneca-Cayuga Tribe
of OK v. NIGC, 327 F.3rd 1019, (10th Cir. 2003), cert. denied, 540 U.S. 1218 (2004).]

(N) “Gaming Operation” means each economic entity that is licensed by the
Nation to operate Class II or Class II] Gaming, receives the revenues, issues the prizes,
and pays the expenses. A Gaming Operation may be operated directly by the Nation,
the Sac and Fox Tribe, Inc. pursuant to its federal corporate charter, or by other political
or business subdivisions thereof, including Sauk Business Enterprises, or by a
management contractor on behalf of such licensed entity of the Nation when the
Management Contract has been properly approved by the Nation and the NIGC.

[25 C.F.R. §502.10]

(O) “House banking game” means any game of chance that is played with the
house as a participant in the game, where the house takes on all players, collects from
all losers, and pays all winners, and the house can win.

[25 C.F.R. §502.11]

(P) “Indian lands” means:

(1) Any lands the title to which is either held in trust by the United

States for the benefit of the Nation or individual or held by the Nation or individual

subject to restriction by the United States against alienation and over which the
Nation exercises governmental power; and

(2) All lands acquired in trust for the benefit of the Nation after October
17, 1988, if said lands meet the requirements set forth in 25 U.S.C. §2719.

[Act of Feb. 13, 1891, Ch. 165, 26 Stat. 749; 25 U.S.C. §2703(4); 25 U.S.C. §2719; 25 C.F.R. §502. 12]
(Q) “Key Employee” means:
(1) | A person who performs one or more of the following functions:
(a) Bingo caller;
(b) Counting room supervisor;
(c) Chief of security;
(d) | Custodian of gaming supplies or cash;
(e) Floor manager;
(f) Pit boss;

(g) Dealer;


Sac and Fox Code Title

(AA) “Prize Claim” means a patron's dispute, in connection with (1) the play of
any authorized game of chance; (2) the amount of any prize which has been awarded;
(3) the failure to be awarded a prize; (4) or the right to receive a refund or other
compensation brought by a patron against a Gaming Operation pursuant to the
Compact and any subsequent revisions or amendments to the Compact.

[History: Public Law No. SF-08-1 801]

(AB) “Tort Claim” means a claim for personal injury or property damage brought
by a patron against a Gaming Operation pursuant to the Compact and any subsequent
revisions or amendments to the Compact.

{History: Public Law No. SF-08-1 80.]
Section 1-103. Gaming Authorized

(A) Class |, Class Il and Class III Gaming are hereby authorized within the
jurisdiction of the Nation.

[25 C.F.R. §522.6(b)-(c)}

(B) Class | Gaming shall continue to be exercised and controlled in the
traditional manner, and shall not be regulated by this Title.

(C) Class II Gaming on Indian lands of the Nation shall continue to be within
the jurisdiction of the Nation, but shall be subject to the applicable provisions of the Act
of October 17, 1988, P.L. 100-497, 102 Stat. 2467.

[25 U.S.C. §2710(a})(2)]

(D) _ Class Ili Gaming on Indian lands of the Nation shall continue to be within
the jurisdiction of the Nation, but shall be subject to the provisions of any Compact
which is in effect, or any Secretarial procedures approved by the Secretary of the
Interior in lieu of a compact, and applicable provisions of the Act of October 17, 1988,
P.L. 100-497, 102 Stat. 2467. In any conflict between this Law and the Compact or
Secretarial procedures, the relevant Compact provision(s) or Secretarial procedures
shall govern.

[25 U.S.C. §§2710(d)(1)(C), 2710(d)(5)}
[History: Public Law No. SF-08-180.]

Chapter Two—PROVISIONS REQUIRED BY P.L. 100-497
Section 1-201. Ownership of Gaming

(A) The Nation shall have the sole proprietary interest in and responsibility for
the conduct of any Gaming Operation authorized by this Title. For purposes of this
section, the term “Nation” includes the Sac and Fox Tribe, Inc., other political and