MORONGO BAND OF MISSION INDIANS

GAMING ORDINANCE

I. Purpose

The Morongo Band of Mission Indians. as the beneficial owner of the Morongo

Indian Reservation, and acting pursuant to Tribal law in the exercise of its inherent sovereign

power to enact ordinances and otherwise safeguard and provide for the health, safety and

welfare of the Morongo Indian Reservation and the members of the Morongo Tribe, hereby

ordains and establishes this Ordinance for the purpose of authorizing and comprehensively

and preemptively regulating the terms and conditions under which Class II and Class III

gaming may be conducted within the boundaries of the Morongo Indian Reservation.

II. Definitions

A. Morongo Tribal Council or Tribal Council means the elected governing

body of the Morongo Tribe as established and defined by Morongo Tribal Law.

B. Gaming or gambling means the offering of any games authorized by the

Morongo Tribe Gaming Ordinance, except card games played in private homes in which no

person makes money for operating the game other than as a player, and to bona tide

traditional Indian gambling games. so long as such games are conducted by and for Indian

persons at Tribal celebrations or gatherings.

C. Gaming operation means each economic entity that operates games. receives

the revenues, issues the prizes, and pays the expenses of the games. cz~

D. License means a written approval of the Morongo Tribal Council authorizing

a specific individual to engage in certain gaming activities which may also require approval

from the federal government.

E. Permit means a written approval of the Morongo Tribal Council authorizing

a specific individual to engage in certain gaming activities that do not require a separate ~ approval from the federal government. (N

F. Employee has the same meaning as the term is used by the United States

Internal Revenue Service. Key employee has the meaning defined herein.

G. National Indian Gaming Commission or NIGC means the federal gaming

regulatory body created by the Indian Gaming Regulatory Act (Public Law lO0~497, 25

U.S.C. §2701 et seq.) and as that Act may hereafter be amended.

H. Net Revenues means gross gaming revenues of any gaming operation

authorized by the Tribe, less: (1) amounts paid out as, or paid for, prizes: and (2) total
gaming-related operating expenses, excluding management fees.

ifi. Gaming Authorized

A. Class II gaming as defined in the Indian Gaming Regulatory Act, P.L. 100-447,

25 U.S.C. Section 2703(7)(A) (IGRA) and by regulations lawfully promulgated by the

National Indian Gaming Commission (NlGC), that now or hereafter may be in effect, is

hereby authorized.

B. Class 111 gaming as defined in IGRA. 25 U.S.C. Section 2703(8) and by

regulations promulgated by the NIGC, that now or hereafter may be in effect, is hereby

authorized, provided such gaming is also authorized by and consistent with a Tribal-State

Compact that has been approved by the Secretary of the Interior and is in effect, or otherwise

has been authorized by the Secretary of the Interior or federal law.

IV. Ownership of Gaming Facilities and/or Enterprises

The Morongo Tribe of the Morongo Indian Reservation shall have the sole proprietary

interest in and responsibility for the conduct of any gaming facilities and/or enterprise(s)

authorized by this ordinance.

V. Use of Gaming Revenue

A. Except as specifically authorized pursuant to Subsection B of this Section, net

revenues from Class II and Class Ill gaming on the Morongo Indian Reservation shall be

used only for the following purposes:

1) to fund Morongo Indian Reservation Tribal government operations and

programs:

2) provide for the general welfare of the Morongo Tribe of the Morongo Indian

Reservation and its members:

3) promote Morongo Indian Reservation economic development;

4) donate to charitable organizations; or

5) help fund operations of local government agencies.

B. If the Morongo Tribal Council elects to make per capita payments to Morongo

Tribe members, it shall authorize such payments only in conformity with a plan submitted to

and approved by the Secretary of the Interior pursuant to 25 U.S.C. §2710(b)(3).

VI. Audit

A. The Morongo Tribal Council shall cause to be conducted at least annually an

independent audit of all gaming operations and shall submit the resulting audit reports to the

National Indian Gaming Commission, and to such other agencies as may be required by the

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terms and conditions of any Class Ill compact or other document authorizing Class Ill

gaming on the Morongo Indian Reservation.

B. All gaming-related contracts that result in the purchase of supplies, services,

or concessions in excess of $25,000.00 annually, except contracts for professional legal and

accounting services, shall be specifically included within the scope of the audit that is

described in Subsection A above.

VII. Protection of the Environment and Public Health and Safety

Class II and Class Ill gaming facilities on the Morongo Indian Reservation shall be

constructed, maintained and operated in a manner that adequately protects the environment

and the public health and safety. with the Morongo Tribal Council having primary

responsibility for assessing the environmental impact of all construction and gaming

operations. and taking such measures as it determines may be reasonably necessary to

mitigate any adverse environmental impacts as it may identify.

VIII. Licenses for Key Employees and Primary Management Officials

The Tribal Council or its designated gaming regulatory agency is authorized to:

conduct or oversee necessary personal background and criminal history investigations of

license and permit applicants: approve and deny applications for gaming licenses and

permits; issue gaming licenses and permits: restrict, suspend, or revoke licenses and permits

or impose penalties or other sanctions established by these regulations against the holder of a

license or permit: conduct hearings or other inquiries to consider an applicants request for a

waiver of permit standards: and perform other Tribal Council duties as the Tribal Council

may decide. Any designated gaming regulatory agency does not have the authority to

contract with the State of California or any other third party, without the prior approval of

the Tribal Council. for the performance of background and criminal history investigations.

The Morongo Tribal Council or its designated gaming regulatory agency shall ensure

that the policies and procedures set out in this section are implemented with respect to key

employees and primary management officials employed at any Class II and/or Class III

gaming enterprise operated on Indian lands within the boundaries of the Mororigo Indian

Reservation:

A. Definitions

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

1. Key employee means

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

functions:

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(1) Bingo Caller;

(2) Counting Room Supervisor

(3) Chief of Security

(4) Custodian of gaming supplies or cash;

(5) Floor Manager

(6) Pit Boss

(7) Dealer

(8) Croupier

(9) Approver of Credit; or

(10)~ Custodian of gambling devices including persons

with access to cash and accounting records within

such devices:

(b) If not otherwise included, any other person whose total

cash compensation is in excess of S50,000 per year; or

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

compensated persons in the gaming operation.

2. Primary management official means

(a) The person having management responsibility for a

management contract:

(b) Any person who has authority:

(1) To hire and fire employees: or

(2) To set up working policy for the gaming

operation: or

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

financial management responsibility.

A primary management official may or may not be an employee of the

Tribe.

B. Application Forms

The following notice shall be placed on the application form of

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

applicant:

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

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

U.S.C. §270 1 et seq The purpose of the requested information is to

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

The information will be used by National Indian Gaming Commission

members and staff who have need for the information in the performance of

their official duties. The information may be disclosed to appropriate Federal.

Morongo Tribal Council, State, local, or foreign law enforcement and

regulatory agencies when relevant to civil, criminal or regulatory investigations

or prosecutions. or when pursuant to a requirement by a tribe or the National

Indian Gaming Commission in connection with the hiring or firing of an

employee, the issuance or revocation of a gaming license, or investigations of

activities while associated with a tribe or a gaming operation. Failure to

consent to the disclosures indicated in this notice will result in the 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.

2. Existing key employees and primary management officials shall be

notified in writing that they shall either:

a. Complete a new application form that contains a Privacy Act notice: or

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

routine uses described in that notice.

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

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

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

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

be punished by fine or imprisonment.

(18 U.S.C. § 1001).

4. The Morongo Tribal Council or its designated gaming regulatory

agency shall notify in writing existing key employees and primary management officials that

they shall either:

a. Complete a new application form that contains a notice regarding false

statements; or

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

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C. Background Investigations

1. The Morongo Tribal Council or its designated gaming regulatory

agency shall perform background investigations at least as stringent as is required by federal

law, and shall request from each primary management official and from each key employee

all of the following information:

a. Full name, other names used (oral or written), Social Security

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

spoken or written;

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

positions held, ownership interests in those businesses, business and

residence addresses, and drivers license numbers;

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

including one personal reference who was acquainted with the applicant

during each period of residence listed under paragraph (l)(b) of this

Subsection:

d. Current business and residence telephone numbers:

e. A description of any existing and previous business relationships with

the Morongo Tribe or any other Indian Tribe, including ownership

interests in those businesses:

f. A description of any existing and previous business relationships with

the gaming industry generally, including ownership interests in those

businesses;

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

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

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

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

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

the date and disposition if any;

i. For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations) within ten years of the date of the

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

and disposition;

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

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not there is a conviction, if such criminal charge is within ten years of

the date of the application and is not otherwise listed pursuant to

paragraph (l)(h) or (l)(i) of this Subsection, the criminal charge, the

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

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

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

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

1. A current photograph:

m. Any other information the Morongo Tribal Council may deem relevant

under the circumstances; and

n. Fingerprints consistent with procedures adopted by the Morongo Tribal

Council or its designated gaming regulatory agency in accordance with

25 C.F.R. §522.2(h).

2. The Morongo Tribal Council or its designated gaming regulatory

agency shall conduct an investigation sufficient to make a determination under Subsection D.

below. In conducting a background investigation, the Morongo Tribal Council or its agent(s)

shall promise to keep confidential the identity of each person interviewed in the course of the

investigation.

D. Eligibility Determination

The Morongo Tribal Council or its designated gaming regulatory agency shall

review an applicants prior activities, criminal record, if any. and reputation, habits and

associations to make a finding concerning the eligibility of a key employee or primary

management official for employment in a gaming operation. If the Morongo Tribal Council

or its designated gaming regulatory agency 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, the gaming operation shall not license or employ that person in a key employee or

primary management official position.

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

Prmary Management Officials to the National Indian Gaming Commission

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

a gaming operation authorized by this Ordinance, the Morongo Tribal Council

or its designated gaming regulatory agency shall forward to the National Indian

Gaming Commission a completed application for employment and conduct the

background investigation and make the determination referred to in Subsection

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D of this Section.

2. The Morongo Tribal Council or its designated gaming regulatory

agency shall forward the report referred to in Subsection F of this Section to

the National Indian Gaming Commission within 60 days after an employee

begins work or within 60 days of the approval of this Ordinance by the

Chairman of the National Indian Gaming Commission.

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

management official a person who does not have a license after 60 days.

F. Report to the National Indian Gaming Commission

1. Pursuant to the procedures set out in Subsection E of this Section, the

Morongo Tribal Council or its designated gaming regulatory agency shall prepare and

forward to the National indian Gaming Commission an investigative report on each

background investigation. An investigative report shall include all of the following:

a. Steps taken in conducting the background investigation;

b. Results obtained:

c. Conclusions reached; and

d. The bases for those conclusions.

2. The Morongo Tribal Council or its designated gaming regulatory

agency shall submit, with the report, a copy of the eligibility determination made under

Subsection D of this Section.

3. If a license is not issued to an applicant, the Morongo Tribal Council

or its designated gaming regulatory agency:

a. Shall notify the National Indian Gaming Commission; and

b. May forward copies of its eligibility determination and

investigative report (if any) to the National Indian Gaming

Commission for inclusion in the Indian Gaming Individuals

Records System.

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

Morongo Tribal Council or its designated gaming regulatory agency shall retain applications

for employment and reports (if any) of background investigations for inspection by the

Chairman of the National Indian Gaming Commission or his or her designee for no less than

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three (3) years from the date of termination or denial of employment.

G. Granting a Gaming License

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

Commission receives a report. the National Indian Gaming Commission notifies the Morongo

Tribal Council or its designated gaming regulatory agency that it has no objection to the

issuance of a license pursuant to a license application filed by a key employee or a primary

management official for whom the Morongo Tribal Council or its designated gaming

regulatory agency has provided an application and investigative report to the National Indian

Gaming Commission, the Morongo Tribal Council or its designated gaming regulatory

agency may issue a license to such applicant.

2. The Morongo Tribal Council or its designated gaming regulatory

agency shall respond to a request for additional information from the Chairman of the

National Indian Gaming Commission concerning a key employee or a primary management

official who is the subject of a report. Such a request shall suspend the 30-day period under

Subsection G. 1. of this Section until the Chairman of the National Indian Gaming

Commission receives the additional information.

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

Indian Gaming Commission provides the Morongo Tribal Council with a statement itemizing

its objection(s) to the issuance of a license to a key employee or to a primary management

official for whom the Morongo Tribal Council or its designated gaming regulatory agency

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

Commission, the Morongo Tribal Council or its designated gaming regulatory agency shall

reconsider the application, taking into account the objection(s) itemized by the National

Indian Gaming Commission. The Morongo Tribal Council shall make the final decision

whether to issue a license to such applicant.

H. License Suspension

1. If, after the issuance of a gaming license, the Morongo Tribal Council

or its designated gaming regulatory agency receives from the National Indian Gaming

Commission reliable information indicating that a key employee or a primary management

official is not eligible for employment under Subsection D above, the Morongo Tribal

Council or its designated gaming regulatory agency shall suspend such license and shall

notify in writing the licensee of the suspension and the proposed revocation.

2. The Morongo Tribal Council or its designated gaming regulatory

agency shall notify the licensee of a time and a place for a hearing on the proposed

revocation of a license.

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3. After a revocation hearing, the Morongo Tribal Council or its

designated gaming regulatory agency shall decide whether to revoke or to reinstate a gaming

license. The Morongo Tribal Council shall notify the National Indian Gaming Commission

of its decision.

IX. Licensing of Gamma Places, Facilities and Locations

A separate license shall be required for each place, facility, or location on any lands

subject to the gaming jurisdiction of the Tribe, where Class II and/or Class Ill gaming is to

be conducted.

X. Creation of Morongo Tribe Gaming Commission

A. There is hereby created the Morongo Tribe Gaming Commission, which shall

consist of no less than three persons who would themselves qualify for licensing under this

Ordinance.

B. The members of the Morongo Tribe Gaming Commission shall be appointed by

the Morongo Tribal Council at such time as the Tribal Council determines that the best

interests of the Tribe require that the Gaming Commission be activated, and said appointees

shall not be removed during their terms of office except for misconduct, neglect of duties or

other acts that would render such persons unqualified for licensure hereunder. An

affirmative vote of at least four members of the Morongo Tribal Council. taken in an open

meeting after a duly-noticed hearing at which the member charged with misconduct shall

have the right to hear and present evidence concerning his/her removai, shall be required to

remove a member of the Commission. At the request of the member whose removal is at

issue, the hearing may be held in executive session. The Morongo Tribal Council also may

elect to receive in executive session any evidence public disclosure of which might

compromise any on-going law-enforcement investigation, or which might jeopardize any

privilege or immunity possessed by the Morongo Tribal Council.

C. There shall be a Chairperson of the Morongo Tribe Gaming Commission, who

shall be appointed for a term of two years. The remaining members of the Commission shall

be appointed for terms of one year. The Tribal Council shall determine and authorize the

compensation to be paid to members of the Morongo Tribe Gaming Commission based upon

the Tribal Councils determination of the time required to be expended upon Commission

duties and the qualifications of the appointed Commissioners.

D. The Morongo Tribe Gaming Commission shall be authorized and hereby is

directed to promulgate, subject to review and approval by the Tribal Council, detailed and

comprehensive regulations for the implementation and enforcement of this Ordinance. Said

regulations shall describe and establish the rules for each specific Class II and Class III

gaming activity to be authorized to be conducted on the Morongo Indian Reservation, and no

form of such gaming may be conducted on the Morongo Indian Reservation without prior

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approval by the Morongo Tribe Gaming Commission. Pending approval of the Morongo

Tribe Gaming Commissions regulations by the Morongo Tribal Council, any interim

regulations that the Morongo Tribal Council may adopt shall govern gaming on the Morongo

Indian Reservation.

E. The Morongo Tribe Gaming Commission, independent of the Tribal Council,

shall have full authority to monitor compliance with this Ordinance and its Regulations. and

to investigate and act to prevent any violation(s) thereof.

F. Subject to the approval of the Tribal Council and the appropriation of funds

therefor, the Morongo Tribe Gaming Commission shall be authorized to employ such staff as

reasonably may be required to fulfill its responsibilities under this Ordinance. Compensation

of Commission employees shall be limited to that which is comparable to compensation paid

to persons performing similar duties in other governmental gaming regulatory agencies.

G. Subject to the approval of the Tribal Council. the Morongo Tribe Gaming

Commission hereby is authorized to establish and impose upon gaming facilities, permittees.

applicants and licensees such application, permit and license fees as may be necessary to

fully reimburse the Morongo Tribal Council for its actual costs of operating the Morongo

Tribe Gaming Commission, enforcing this Ordinance and Morongo Tribe Gaming

Commission regulations. processing of licensing and permit applications, and otherwise

fulfilling its regulatory responsibilities under IGRA. All such fees shall be collected by the

Morongo Tribe Gaming Commission and hereby are continuously appropriated solely for the

purposes enumerated in this Subsection.

H. Failure to timely pay any gaming-related fee imposed by the Tribal Council or the

Morongo Tribe Gaming Commission, or to comply with any Commission regulation or

order, or any other violation of this Ordinance or the terms of any Class III gaming compact

authorizing and regulating gaming on the Morongo Indian Reservation, shall be grounds for

suspension or revocation of any license or permit issued pursuant to this Ordinance.

exclusion of any non-member of the Morongo Tribe from the Morongo Indian Reservation,

and imposition of such other sanctions as the Morongo Tribe Gaming Commission may deem

appropriate.

I. Any person or entity subject to any sanction or penalty by the Morongo Tribe

Gaming Commission shall have the right to appeal such sanction or penalty to the Morongo

Tribal Council in accordance with such rules and regulations as may be promulgated by the

Tribal Council for that purpose. The decision of the Tribal Council on any appeal shall be

final and not otherwise reviewable.

Xl. Amendments

The Morongo Tribal Council is hereby delegated the authority to amend this

Ordinance in any manner deemed appropriate to protect what the Morongo Tribal Council

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determines to be the best interests of the Morongo Tribe; provided that the Morongo Tribal

Council shall have no authority to enact any amendment to this Ordinance that is less

restrictive than the original terms of this Ordinance, or that would constitute a violation of

federal law or would be inconsistent with the terms of an approved Tribal-State Class Ill

compact that is in effect.

XIII. Severability

The provisions of this Ordinance are severable. If any part or provision hereof is

held void by tribal or federal court or federal agency. the decisions of the court or agency so

holding shall not affect or impair any remaining provision of the Ordinance.

XIV. Repeal

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

previously enacted or amended by the Morongo Tribe General Council or Tribal Council are

repealed.

CERTIFICATION

This is to certify that the foregoing Ordinance was adopted on ~~ at a

duly-called meeting of the Morongo Tribe General Council at which a quorum was present,

by a vote of S in favor, 2 opposed and abstaining.

Dated: ~ - ~

(~See~ctary

Triba1~hairperson

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