San Juan Pueblo Gaming Commission

P0. Box 1521 (Highway 68, behind the old casino.)

San Juan Pueblo, New Mexico 87566

(505) 753-8101 FAX (505) 753-5803

RESOLUTION OF THE TRIBAL COUCIL

OF THE PUEBLO OF SAN JUAN

AMENDING GAMING ORDINANCE

RESOLUTION 2002-027

The following Resolution was considered and adopted by the Tribal Council of the

Pueblo of San Juan at a meeting held on the 26 day of June , 2002, at

which a quorum was present.

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

the Tribal Council of the Pueblo of San Juan (Pueblo) is the governing

body of the Pueblo; and

Congress has enacted the Indian Gaming Regulatory Act of 1988, 25

U.S.C. §~ 2701-2721 and 18 U.S.C. §~ 1166-1168 (IGRA) to regulate

Class I and Class II Gaming on Indian Lands subject to oversight by the

National Indian Gaming Commission (N.1.G.C.) and to authorize Class

III Gaming on Indian Lands by Indian tribes and states pursuant to tribalstate compacts; and

the Tribal Council enacted the Pueblo of San Juan Class II Gaming

Ordinance No. 94-27 (June 15, 1994) (Class II Gaming Ordinance) and

the Pueblo of San Juan Gaming Ordinance No. 95-06 (January 22, 1995)

and revised those Ordinances in the Pueblo of San Juan Class III Gaming

Ordinance No. 95-13 (Class III Gaming Ordinance ); and

the Tribal Council, pursuant to Tribal Council Resolution 2002-0 10, dated

March 13, 2002 approved a new ordinance known as the Pueblo of San

Juan Gaming Ordinance that incorporated certain procedures required

under the 2001 Tribal State Compact and other necessary changes; and

the Pueblo submitted the Pueblo of San Juan Gaming Ordinance to the

Nation indian Gaming Commission (NIGC) for review and approval;

and
Tribal Council Resolution No. 2002-027

Page 2

Amending Gaming Ordinance

WHEREAS,

WHEREAS,

the NIGC declined approval of the Ordinance because certain items

pertaining to Class II gaming were not included in the Pueblo of San Juan

Gaming Ordinance; and

the Tribal Council finds that it is in the best interest of the Pueblo to

approve the revisions to the Pueblo of San Juan Gaming Ordinance that

address the concerns of the NIGC.

Council Member

CoUncil Member

ncil Member

NOW, THEREFORE, BE IT ORDAINED by the Tribal Council that the Tribal

Council approves and enacts the amendments to the Pueblo of San Juan Gaming

Ordinance, attached hereto as Exhibit A.

BE IT FURTHER OBTAINED by the Tribal Council that the Governor of the Pueblo is

hereby authorized to resubmit the Pueblo of San Juan Gaming Ordinance for review and

approval by the National Indian Gaming Commission and to do all things necessary and

proper to accomplish the purposes of this ordinance.

CERTIFICATION

The foregoing Resolution was considered by the Tribal Council of the Pueblo of

San Juan at a duly called meeting and was adopted and enacted by the Tribal Council

with a quorum being present at such meeting on the ~h~ day of~(a.-,t ,2002.

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Tribal Council Resolution 2002-027

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Amending Gaming Ordinance

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SAN JUAN PUEBLO

GAMING ORDINANCE

RESOLUTION 2002-27
PUEBLO OF SAN JUAN

GAMING ORDINANCE

Table of Contents

Page

PART I - San Juan Pueblo Gaming Ordinance 1

1-1 PURPOSE AND INTENT

1-1-1 Short Title I

1-1-2 Purpose and Interpretation 1

1-2 DEFINITIONS 1

1-3 NATURE AND SCOPE OF GAMING 5

1-3-1 Authorized Gaming 5

1-3-2 Forms of Payment 6

1-3-3 Prohibition on Certain Financial Transactions with Patrons 6

1-3-4 Wagering Limitations 6

1-3-5 Hours of Operation 6

1-3-6 Prohibition of Minors 6

1-3-7 Operation of Games 7

1-4 COMPLIANCE WITH THE ACT 7

1-4-1 Ordinance Consistent with Act 7

1-4-2 Proprietary Interest 7

1-4-3 Use of Net Revenues 7

1-4-4 Annual Audit 8

1-4-5 Public Safety Standards 8

1-5 COMPLIANCE WITH THE COMPACT 8

1-6 LICENSING 11

1-6-1 Class II and Class 111 Licensing Requirements 11

1-6-2 Applications for Gaming Licenses 13

1-6-3 Suitability Determination 14

1-6-4 Granting a Gaming License 15

1-6-5 License Suspension and Revocation 15

1-6-6 Licensing Providers of Gaming Equipment, Devices, or Supplies 16

1-7 BACKGROUND INVESTIGATIONS 16

1-7-1 Commission Authority 16

1-7-2 Required Information 16

1-7-3 Release Form 17

1-7-4 Procedures for Conducting Background Investigations 18

1-7-5 Fingerprint Check 18

1-7-6 Procedure for Processing Fingerprint Cards 18

1-7-7 Criminal History Record Information 19
Page

1-8 MANAGEMENT CONTRACTS 19

1-8-1 Requirement for Review and Approval 19

1-8-2 Required Provisions 19

1-9 DISPUTE RESOLUTION 21

1-9-1 Patron Dispute Resolution Procedures Regarding Payouts 21

1-9-2 Other Patron Disputes 22

1-10 GAMING COMMISSION 22

1-10-1 Establishment of the Commission, Appointment, Term 22

1-10-2 Compensation 23

1-10-3 Removal 23

1-10-4 Vacancies 23

1-10-5 Designation as Agent and Tribal Gaming Agency 23

1-10-6 Powers and Duties 23

1-10-7 Assuring Compliance with Compact 24

1-10-8 Executive Director 24

1-10-9 Certificate of Self Regulation 24

1-10-10 Procedures of the Commission 24

1-11 PROHiBITED ACTS 25

1-12 PENALTIES 26

1-13 SEVERABILITY 27

1-14 SOVEREIGN IMMUNITY 27

1-15 REPEAL 27

1-16 AMENDMENTS 27

PART II - Indian Gaming Compact 28

2-0 INTRODUCTION 28

2-1 TERMS AND CONDITIONS SECTION 28

2-1-1 PURPOSE AND OBJECTIVES 28

2-2 DEFINITIONS 29

2-3 AUTHORIZED CLASS ifi GAMING 31

2-4 CONDUCT OF CLASS ifi GAMING 31

2-4-1 Tribal Gaming Agency 31

2-4-2 Regulations 32

2-4-3 Copies of Tribal Laws to State Gaming Representative 35

2-4-4 Audit and Financial Statements 35

2-4-6 Violations 36

2-4-7 State Gaming Representative 36

2-4-8 Compliance with Bank Secrecy Act 39

2-5 LICENSING REQUIREMENTS 39

2-5-1 License Required 39

2-5-2 License Application 39

11
Page

2-5-3 Background Investigations 39

2-5-4 Provision of Information to State Gaming Representative 40

2-6 PROVIDERS OF CLASS Ill GAMING EQUIPMENT OR DEVICES OR SUPPLIES

40

2-7 DISPUTE RESOLUTION 40

2-8 PROTECTION OF VISITORS 41

2-8-1 Policy Concerning Protection of Visitors 41

2-8-2 Insurance Coverage for Claims Required 42

2-8-3 Limitation on Time to Bring Claim 42

2-8-4 Specific Waiver of Immunity and Choice of Law 42

2-8-5 Election by Visitor 42

2-8-6 Arbitration 42

2-8-7 Increase in Liability Limits 43

2-8-8 Public Health and Safety 43

2-9 CONDITIONS FOR EXECUTION; EFFECTIVE DATE 43

2-10 CRIMINAL JURISDICTION 44

2-11 REVENUE SHARING 45

2-1 1-1 Consideration 45

2-1 1-2 Revenue to State 46

2-1 1-3 Calculation of Payment Amounts 46

2-1 1-4 Limitations 47

2-1 1-5 Third-Party Beneficiaries 47

2-12 DURATION; TERMINATION FOR NON-PAYMENT 48

2-13 NOTICE TO PARTIES 48

2-14 ENTIRE AGREEMENT 48

2-15 FILING OF COMPACT WITH STATE RECORDS CENTER 49

2-16 COUNTERPARTS 49

2-17 SEVERABILITY 49

ill
PUEBLO OF SAN JUAN

GAMING ORDINANCE

PART I - San Juan Pueblo Gaming Ordinance

1-1 PURPOSE AND INTENT

1-1-1 Short Title This ordinance may be cited as the San Juan Pueblo Gaming Ordinance.

1-1-2 Purpose and Interpretation This ordinance shall be deemed as exercise of the police power

of SAN JUAN PUEBLO for the protection of the public welfare, health, peace and morals of the

people of the SAN JUAN PUEBLO and all provisions of this ordinance shall be liberally construed

to accomplish the following purposes:

A. To legalize and regulate the conduct of Gaming on Pueblo Lands;

B. To maintain the highest standards of integrity in the conduct of Gaming on Pueblo

Lands;

C. To produce revenue to fund tribal governmental operations and programs;

D. To promote the health education and welfare of the Pueblo and its members; and

E. To promote tribal economic development.

1-2 DEFINITIONS In this ordinance, unless the context otherwise requires:

1-2-1 Act means the Indian Gaming Regulatory Act of 1988, Pub. L. No. 100-497, 25 U.S.C. §~

2701-2721 and 18 U.S.C. §~ 1166-1168, as amended, and all regulations promulgated thereunder.

1-2-2 Bingo Game means: the Class II gaming activity commonly known as bingo wherein

participants pay a sum of money for the use of one or more cards. When the games commence,

numbers are drawn by chance, one by one, and announced. The players cover or mark those numbers

on the cards which they have purchased until a player receives a given order of numbers in sequence

that has been pre-announced for that particular game. The first player to call out bingo and be

declared the winner will receive a predetermined prize.

1-2-3 Class I Gaming means Class I gaming as defined in the Act and as regulated by the customary

law of the Pueblo of San Juan.

1-2-4 Class II Gaming means Class II gaming as defined in the Act.

1-2-5 Class ff1 Gaming means Class ifi gaming as defined in the Act and 25 C.F.R. §502.4.

1
1-2-6 Commission means the Pueblo of San Juan Gaming Commission as established by this

Ordinance.

1-2-7 Compact means the Tribal-State Compact set out in Part II ofthis Ordinance, and entered into

pursuant to the Act.

1-2-8 Council means the Tribal Council of San Juan Pueblo.

1-2-9 Gaming Activity means all forms of Class II Gaming and Class III Gaming conducted by a

Gaming Enterprise on Pueblo lands.

1-2-10 Gaming Device means any gambling device as defined in 15 U.S.C.A. §1171(a).

1-2-11 Gaming Employee means a person connected directly with the conduct of Class II or Class

III Gaming or handling the proceeds thereof or handling any Gaming Machine; but Gaming

Employee does not include:

A. Bartenders, cocktail serves or other persons engaged solely in preparing or serving

food or beverages;

B. Secretarial or janitorial personnel;

C. Stage, sound and light technicians;

D. Other nongaming personnel.

1-2-12 Gaming Enterprise means any tribal entity created and designated by the Pueblo of San Juan

as having authority to conduct Class II or Class Ill gaming pursuant to the Compact.

1-2-13 Gaming Equipment means any equipment, device, or contrivance used to conduct gaming.

1-2-14 Gaming Facility means the building, room or location at which Class II or ifi gaming is

conducted.

1-2-15 Gaming Machine means a mechanical, electromechanical or electronic contrivance or

machine that, upon insertion ofa coin, token or similar object, or upon payment ofany consideration,

is available to play or operate a game, whether the payoff is made automatically from the gaming

Machine or in any other manner.

1-2-16 Gaming-Related Contract means a contract or agreement providing for any goods, services

or concessions to the Pueblo, a Gaming Enterprise, or Management Contractor in connection with

the conduct of Class II or Class ifi Gaming in a Gaming Facility in an amount in excess of $25,000

annually, except for professional, legal or accounting services. No Gaming-Related Contract may

2
be broken up into parts for the purpose of avoiding this definition and any requirement of licensure

or certification.

1-2-17 Gross Receipts means, in relation to Class II gaming, receipts from the sale of shares, tickets

or rights in any manner connected with participation in a game of bingo or the right to participate

therein, including any admission fee or charge, the sale of equipment or supplies and all other

income from any other Class II gaming source.

1-2-18 Key Employee means that term as defined in 25 C.F.R. §502.14, or, if more comprehensive,

a Person employed by a Gaming Enterprise or Management Contractor and

A. Who performs one or more of the following functions:

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. Custodian of gambling devices, including Persons with access to cash and

accounting records within such devices;

B. If not otherwise included, any Persons whose total cash compensation is in excess of

$50,000 per year; or

C. If not otherwise included, the four most highly compensated Persons employed by

a Gaming Enterprise or Management Contractor.

1-2-19 Management Contract means a contract as defined in 25 U.S.C.A. § 2710(d)(9) and any

contract, subcontract, or collateral agreement between the Pueblo and a Management Contractor or

between a Management Contractor and a subcontractor if such contract or agreement provides for

the management of all or part of a Gaming Enterprise.

1-2-20 Management Contractor means any Person who enters into a Management Contract with the

Pueblo.

1-2-21 Net Revenues means gross revenues of any Gaming Activity less amounts paid out as, or

paid for prizes and total operating expenses, but excluding management fees paid to a Management

Contractor.

1-2-22 Net Win means Class ifi Gamingnet win as that term is defined in the Compact set out in

Part II of this Ordinance.

3
1-2-23 N.I.G.C means National Indian Gaming Commission.

1-2-24 Non-profit organization means an organization not for profit, and operated for charitable,

religious, educational or public purposes within Pueblo lands and which has been so engaged for two

(2) years immediately prior to conducting or operating a bingo game.

1-2-25 Occasion means a gathering at which Class II games, including, but not limited to bingo, are

played.

1-2-26 Ordinance means the Pueblo of San Juan Gaming Ordinance, as amended.

1-2-27 Premises means any room, hail, building, enclosure or outdoor area used for the purpose of

playing a game of bingo.

1-2-28 Person means a natural person, firm association, corporation or other legal entity, except the

Pueblo of San Juan.

1-2-29 Primary Management Official means that term as defined in 25 C.F.R. §502.19, or, if more

comprehensive:

A. The person having management responsibility for a Management Contract;

B. Any person who has authority to:

1. Hire and fire employees;

2. Set up working policy for a Gaming Enterprise;

3. Exercise financial management responsibility for a Gaming Enterprise,

including, but not limited to the chief financial officer.

1-2-30 Pueblo means the Pueblo of San Juan, a federally recognized Indian Pueblo, its authorized

officials, agents and representatives.

1-2-31 Pueblo Lands means (a) all land within the exterior boundaries of the San Juan reservation

and its confirmed grants from prior sovereigns, or (b) land over which the Pueblo exercises

governmental power and that is either (i) held in trust by the United States for the benefit of the

Pueblo or its members, or (ii) held by the Pueblo or its members subject to restrictions by the United

States against alienation, but does not include any land within the boundaries of a municipality

outside the boundaries of the Tribes reservation or confirmed grants from prior sovereigns as those

boundaries existed on October 17, 1988.

1-2-32 Secretary means the Secretary of the Interior or his duly authorized representative.

1-2-33 State means the State of New Mexico, its authorized officials, agents and representatives.

4
1-2-34 Tribal Bingo Game means a bingo game or other Class II games conducted or operated by

the Pueblo or a Management Contractor in accordance with the provisions of Part I ofthe Ordinance

applicable to Class II gaming.

1-3 NATURE AND SCOPE OF GAMING

1-3-1 Authorized Gaming

A. A Gaming Enterprise may conduct all forms of Gaming in any Gaming Facility,

subject to the provisions ofthe Compact limiting how and where Class III gaming can take place and

other applicable law. All other gaming must be conducted pursuant to applicable laws ofthe Pueblo.

B. Small Bingo Games This ordinance is not intended to prevent community

organizations and residents ofthe Pueblo from conducting a bingo game as defined in this ordinance

in their home as part of a private social occasion which is played by for prizes of minimal value.

Social gaming shall include gaming sponsored by a non-profit entity organized for governmental,) charitable, or religious put-poses. Such entity may conduct or operate a small bingo game on Pueblo

lands subject to the following restrictions:

a. The non-profit organization shall maintain such status and no member,

director, officer, employee or agent of the non-profit organization may receive any direct or indirect

pecuniary benefit other than being able to participate in the game on a basis equal to all other

participants.

b. The non-profit organization shall have been in existence continuously

on the Pueblo for a ten year period immediately prior to conducting the game.

c. The gross receipts from the game shall not exceed Two Thousand

Dollars ($2,500) in the aggregate on any occasion.

d. The sponsoring organization must apply for and receive a permit for

each occasion it wishes to conduct a small bingo game. Such application shall be to, and such permit

shall be issued by the Commission, which may in its discretion set a fee for issuance ofsuch permits.

e. The sponsoring organization proposing to conduct or operate a small

bingo game and the G~~ii~g rvlanager of a ~1bi~go game shall designate one or more officers or

employees to be in charge of and primarily responsible for the conduct of gaming on each occasion.

The officer in charge shall supervise all activities on the occasion of which he is in charge and shall

be present on the premises continuously during the games and for a period of at least thirty minutes

after the last game.

f. All persons who hold, operate, or conduct or assist in holding or

conducting a small bingo game shall be bona fide local members of the sponsoring organization.

5
g. Within sixty (60) days after the end ofthe fiscal year for the non-profit

entity conducting a small bingo game, the organization shall provide to the Commission a statement

showing:

(1) Gross receipts;

(2) Net win as defined in this Title; and

(3) The use of all net revenues, consistent with § 1-4-3(B).

h. In any year where the non-profit entity conducts more than ten (10)

game events, an audit prepared by a certified public accountant (CPA) must be submitted withing

five (5) months the fiscal year end.

i. Failure to comply with the provisions ofthis subsection shall be a basis

for denying a permit under §l-3-1(B)(6).

1-3-2 Forms of Payment All payment for wagers made in any Class II or III Gaming conducted

by a Gaming Enterprise shall be made by cash, chips or tokens. A Gaming Enterprise shall not

extend credit including, but not limited to, the acceptance of lOUs or markers from patrons. Unless

otherwise prohibited by applicable law or the Compact, chips or tokens may be purchased using

cash, checks or credit card.

1-3-3 Prohibition on Certain Financial Transactions with Patrons No Gaming Enterprise shall cash

any paycheck or any type ofgovernment assistance check, including Social Security TANF, pension

and other similar checks for any patron.

1-3-4 Wagering Limitations The Commission may set by regulation the maximum wager for any

type of Gaming on Pueblo lands.

1-3-5 Hours of Operation The Commission may set by regulation the days and hours ofoperation

for any Class II or Class III gaming on the Pueblo. For the purposes of Class 111 gaming, The

operation of any Class III Gaming Activity is prohibited for at least four consecutive hours daily,

Monday through Thursdays (except federal holidays).

1-3-6 Prohibition of Minors No person under the age of 18 shall participate in any Class II

Gaming. No person under the age of2 1 shall participate in any Class Ill gaming. However, a person

under the age of 21 may be employed by a Gaming Enterprise or Management Contractor for

positions excepted from the definition of Gaming Employee in this Ordinance.

1-3-7 Operation of Games

A. Inspections

6
I. The premises where any gaming is being held and any gaming facility,

operated and conducted shall at all times be open to inspection by the Commission and its agents,

Pueblo Administration, Council, and upon authorization by the Pueblo Governor or his designee, by

the Pueblos Accounting Manager, auditors, N.I.G.C. representatives, and Pueblo Police Chief.

2. Inspection ofcash and cash counting activities must take place in the presence

of a member of the Commission, Tribal Administration or a person with written authorization of the

Pueblo Governor or Commission.

3. The State Gaming Representative shall have access to inspect all aspects of

the Class III gaming operations as provided by this Ordinance and the Compact.

B. Value ofPrizes When any merchandise prize is awarded, its value shall be its current

retail price.

1-4 COMPLIANCE WITH THE ACT

1-4-1 Ordinance Consistent with Act This Ordinance shall be construed in a manner that conforms

to the Act in all respects, and, if the Ordinance is inconsistent with the Act in any manner, the

provisions of the Act shall govern.

1-4-2 Proprietary Interest The Pueblo shall have the sole proprietary interest in and responsibility

for the conduct of any Class ifi or Tribal Class II Gaming on Pueblo lands; however, nothing in this

Ordinance shall prevent the Pueblo from entering into a Management Contract.

1-4-3 Use of Net Revenues -

A. From Class I Gaming Any revenues derived from Tribal Class I games, after

payment of operating, if any, and after provisions for reserves, investment in and improvement of

Class I games in accordance with the yearly Gaming business plan and budget has been made, shall

be used in accordance with Tribal Council directives. The business plan and budget shall be

reviewed by the San Juan Gaming Commission and sent to the Governor and Tribal Council for final

approval.

B. From Any Class H and ifi Gaming Net Revenues from any Class II and ifi Gaming

shall be used for the following purposes:

1. To fund the Pueblos government operations or programs;

2. To provide for the general welfare of the Pueblo and its members;

3. To promote the Pueblos economic development;

4. To donate to charitable organizations;

5. To help fund operations of local government agencies; or

6. Any other purposes permitted under the Act.

7
1-4-4 Annual Audit Each Gaming Enterprise shall be audited at least annually by a certi fled public

accountant (CPA) selected by the Commission.

A. Copies ofthe independent audit reports for each year (including financial statements

and management letters) will be provided to the Governor ofthe Pueblo and the Commission by May

15 of the following year. A copy of each annual audit report of gaming activities shall be provided

to the Council and then to the N.I.G.C.

B. The scope of each audit shall include but not be limited to all Gaming Related

Contracts, as that term is defined in this Ordinance.

1-4-5 Public Safety Standards Each Gaming Facility shall be constructed and maintained in a

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

1-5 COMPLIANCE WITH THE COMPACT

1-5-1 Any Class III Gaming Enterprise and Management Contractor shall comply with standards

and requirements equivalent to or more stringent than those contained in the federal Fair Labor

Standards Act of 1938, the federal Occupational Safety and Health Act of 1970, and any other

federal laws generally applicable to Indian tribes relating to wages, hours of work and conditions of

work, and the regulations issued thereunder.

1-5-2 Any construction project involving any Gaming Facility or related structure that is funded

in whole or in part by federal funds, shall pay all workers wages meeting or exceeding the standards

established for New Mexico under the federal Davis-Bacon Act.

1-5-3 The Pueblo, the Gaming Enterprise and any Management Contractor are prohibited from

discriminating in the employment of persons to work for the Gaming Enterprise or in the Gaming

Facility on the grounds of race, color, national origin, gender, sexual orientation, age or handicap,

provided however, that nothing herein shall be interpreted to prevent the Pueblo from granting Indian

preference in employment actions to Pueblo members or other Indians in accordance with established

tribal laws and policies.

1-5-4 All employees of a gaming establishment must be provided with employment benefits

including, at a minimum, sick leave, life insurance, paid annual leave and medical and dental

insurance as well as providing unemployment insurance and workers compensation insurance

through participation in programs offering benefits at least as favorable as those provided by

comparable State programs.

1-5-5 In cases of disciplinary or punitive action taken against an employee in a gaming

establishment, the gaming employee must be permitted (1) a reasonable period of time to submit a

grievance to the employees immediate supervisor, and (2) a process for an appeal to persons of

greater authority than the immediate supervisor of the employee. The Gaming Enterprise and any

8
Management Contractor, or other employer of employees in a gaming establishment shall provide

a copy of their grievance process to the Commission for approval.

1-5-6 No Gaming Facility shall prohibit or otherwise take action to prevent the state Department

of Environment inspectors from inspecting the Gaming Facilitys food service operations during

normal Gaming Facility business hours to assure that standards and requirements equivalent to the

States Food Service Sanitation Act Chapter 25, Article 1 NMSA 19781 are maintained.

1-5-7 Each electronic or electromechanical gaming device in use at a Gaming Facility must pay out

a mathematically demonstrable percentage of all amounts wagered which must not be less than

eighty percent (80%).

1-5-8 A Gaming Enterprise shall post on each Gaming Machine the odds of a player achieving a

winning outcome from the games available on that Gaming Machine.

1-5-9 To the extent technically feasible, any automatic teller machines on Gaming Facility premises

shall be programmed so that the machines will not accept cards issued by the State to TANF

recipients for access to TANF benefits.

1-5-10 All Gaming Machines on the premises of the Gaming Facility shall be connected to a central

computerized reporting and auditing system on the Gaming Facility premises, which shall collect

on a continual basis the activity of each Gaming Machine in use at the Gaming Facility. No later

than ninety (90) days after the Compact takes effect, the wager and payout data ofeach machine, one

it is fed into the Gaming Enterprises central computer, may be accessed electronically by the State

Gaming representative by a dedicated telecommunications connection, on a read-only basis, upon

entry of appropriate security codes.

1-5-11 An employee of the Gaming Enterprise is prohibited from selling, serving, giving or

delivering an alcoholic beverage to an intoxicated person or from procuring or aiding in the

procurement of any alcoholic beverage for an intoxicated person at the Gaming Facility.

1-5-12 All Gaming Enterprise employees that dispense, sell, serve or deliver alcoholic beverages

must first attend Alcohol Server Education Classes similar to those classes provided for in the New

Mexico Liquor Control Act.

1-5-13 Any Gaming Enterprise that dispenses, sells, serves or delivers alcoholic beverages shall

purchase and maintain a liquor liability insurance policy that will provide, at a minimum, personal

injury coverage ofone million dollars ($1,000,000) per incident and two million dollars ($2,000,000)

aggregate per policy year.

1-5-14 No Alcoholic Beverages shall be sold, served, delivered or consumed in that part ofa Gaming

Facility where Class Ill gaming is allowed.

9
1-5-15 Each Gaming enterprise shall spend an amount that is no less than one-quarter ofone percent

(.25%) of its Net Win annually to fund or support programs for the treatment and assistance of

compulsive gamblers in New Mexico or who patronize New Mexico gaming facilities, and for the

prevention of compulsive gambling in New Mexico. A substantial portion of such funds shall be

distributed to an organization that has expertise in and provides counseling, intervention or other

services for compulsive gamblers in New Mexico and whose services are available to all persons

without regard to race or tribal membership.

1-5-16 No Gaming Enterprise or the Pueblo shall provide, allow, contract to provide or arrange to

provide alcoholic beverages for no charge or at reduced prices. No Gaming Enterprise, or the Pueblo

shall provide or allow, contract to provide or arrange to provide food or lodging for no charge or at

nominal prices, at a Gaming Facility or lodging facility as an incentive or enticement for patrons to

game.

1-5-17 The Pueblo, the Gaming Enterprise and the Management Contractor shall report to the

Secretary of State, in the same manner and at the same times as are required of political committees

under the provisions ofthe States Campaign Reporting Act (NMSA 1978 § § 1-19-25 through 1-19-

36) any and all contributions, whether directly or through an agent, representative or employee, of

any moneys derived from revenue from the Gaming Enterprise, or of anything of value acquired with

that revenue, to a candidate, political committee or person holding an office elected or to be elected

at an election covered by the States Campaign Reporting Act. In the event any report required to

be made hereunder is not made within the time specified herein, or is false or incomplete in any

respect, the Pueblo shall be liable to pay to the Secretary of State a penalty in the amount of fifty

dollars ($50.00) for each working day after the day on which the report was due until the day on

which the complete or true report is fled, up to a maximum of five thousand dollars ($5,000), except

that with respect to the report due on the Friday before an election the penalty shall be five hundred

dollars ($500) for the first working day after the due date and fifty dollars ($50.00) per working day

thereafter, up to a maximum of five thousand dollars ($5,000).

1-5-18 In the event that the Pueblo is held liable to pay the Secretary of State a penalty incurred as

a result of the actions of the Gaming Enterprise or the Management Contractor, whether directly or

through an agent, representative or employee, upon written notice from the Pueblo, the Gaming

Enterprise or the Management Contractor shall pay to the Pueblo an amount equal to twice the

penalty incurred by the Pueblo.

1-5-19 The Pueblo, either through the Gaming Enterprise, the Management Contractor or the

Commission shall maintain the following records for not less than five (5) years:

A. Revenues, expenses, assets, liabilities and equity for each Gaming Enterprise;

B. Daily cash transactions for each Class ifi Gaming activity at each Gaming Facility,

including but not limited to transactions relating to each gaming table bank, game dropbox and

gaming room bank;

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C. Individual and statistical game records, except for card games, to reflect statistical

drop and statistical win; for electronic, computer, or other tecimologically assisted games, analytic

reports which show the total amount of cash wagered and the total amount of prizes won;

D. Contracts, correspondence and other transaction documents relating to all vendors

and contractors;

E. Records of all tribal gaming enforcement activities;

F. Audits prepared by or on behalf of the Tribe; and

G. Personnel information on all Class H and Class III Gaming employees or agents,

including rotation sheets, hours worked, employee profiles and background checks.

1-6 LICENSING

1-6-1 Class II and Class ifi Licensing Requirements

A. Key Employees and Primary Management Officials The Commission shall license

each Primary Management Official and Key Employee of a Class II or a Class III Tribal Gaming

Enterprise and any Management Contractor.

B. Persons Employed in Gaming The Commission shall license any person, other than

a Key Employee or Primary Management Official employed by a Gaming Enterprise or Management

Contractor.

C. Management Contractor Pursuant to the Act, the N.I.G.C. shall license a

Management Contractor and any Person having a direct or indirect financial interest in a

Management Contract. The Commission shall also license such contractor or person.

D. Gaming Devices. Machines and Gaming Equipment The Commission shall license

each Gaming Device, Machine or other Equipment.

E. Gaming-Related Contractors The Commission shall license each Person proposing

to enter into a Gaming-related contract.

F. Other Persons The Commission may require licensure of such other Persons as it

deems necessary to carry out the purposes of this Ordinance.

G. Gaming Facilities Any Gaming Facility within San Juan Pueblo must be licensed

by the Commission to conduct gaming activity. A separate license is required for each gaming

facility.

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H. Licenses Required for All Employees Every regular employee involved in gaming

at Sari Juan Pueblo must have a valid San Juan Gaming License. Until an employee receives a San

Juan Pueblo Gaming License that individual shall be considered on probation subject to dismissal

with or without cause.

I. Authority A San Juan Pueblo Gaming License is valid after signature by the

Commission.

J. Standards The Commission may not issue a San Juan Pueblo Gaming License to

any person whose prior activities, criminal record, if any, or reputation, habits or associations pose

a threat to the public interest or to the effective regulation of gaming at San Juan Pueblo. No license

shall be issued to any person who may create or enhance the dangers of unsuitable, unfair, or illegal

practices and methods and activities in the conduct of gaming at San Juan Pueblo.

K. License Conditions

1. Term A San Juan Pueblo Gaming Employee License shall be valid for two

(2) years. A San Juan Pueblo non-gaming employee license shall be valid for one (1) year. Any

employee license will be automatically revoked upon termination of employment. A San Juan

Pueblo gaming vendor license shall be valid for one (1) year. Any license for a Management

Contractor shall be renewed automatically each year during the term of the Management Contract

unless the Commission determines that the Management Contractor is in violation of applicable law.

A licensee who has submitted the required application for renewal and any other information

required by the Commission at least thirty (30) days before the expiration ofhis license may continue

to be employed under the expired license or until final action is taken on the renewal application by

the Commission or, ifrequired by the Act, the N.I.G.C., Such licensee shall provide updated material

and information as requested on the appropriate renewal application, but shall not be required to

resubmit historical data already provided or otherwise available to the Commission.

2. Form Each San Juan Pueblo Gaming License shall be in the form of an

identification Card with a photograph, and the first and last name of the license holder, employee

number, signature, the words SAN JUAN PUEBLO GAMING LICENSE clearly shown, and date

of expiration.

3. Must Be Worn Every holder of a San Juan Pueblo Gaming License must

have their license clearly visible while they are working at any San Juan Gaming site permitted

pursuant to this Ordinance.

L. Fees for Licenses The fees for licenses shall be set by the Commission. If the actual

costs incurred by the Commission for a background investigation exceed the amount deposited by

the applicant, those costs may be assessed to the applicant in the discretion of the Commission. In

such cases, the Commission shall submit a detailed billing of the costs and an explanation as to why

the excess costs were incurred.

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1-6-2 Applications for Gaming Licenses

A. A Person applying for a license shall provide all the information required by Section

1-7-2 of this Ordinance and the Act on an application form adopted by the Commission for that

purpose. The applicant shall pay any fees required by the Commission or the N.I.G.C.

B. The Commission shall require each applicant to sign and submit a Privacy Act notice

on an application form as required by the Act that consist of:

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.A. 2701 et seq. The purpose of the requested

information is to determine the eligibility of individuals to be employed in the San Juan Pueblo 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, Tribal, State, local, or foreign law enforcement and regulatory agencies

when relevant to civil, criminal or regulatory investigations or prosecutions or when pursuant to a

requirement by the Pueblo of San Juan 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 Pueblo of San Juan Gaming Enterprise or its management

contractor 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.

C. The Commission shall require each applicant to sign and submit a notice regarding

false statements on an application form as required by the Act.

A false statement on any part ofyour application may be grounds for not hiring you, or for firing you after you begin work. Also,

you may be punished by line or imprisonment. (US. Code, title 18, section 1001.)

D. The Commission shall notify in writing each Person who is required to be licensed

pursuant to Section 1-6-1 of this Ordinance, but who has not signed and submitted an application

form containing the Privacy Act Notice or the False Statements Notice, to either complete a new

application form that contains the Privacy Act Notice and the False Statements Notice; or sign a

statement that contains the Privacy Act Notice and the False Statements Notice.

E. On its application, a Gaming Enterprise or Management Contractor shall designate

an agent to accept service on its behalf of any official determination, order, subpoena or notice of

violation that may be served by the Commission or N.I.G.C. pursuant to the Act.

1-6-3 Suitability Determination

A. The Commission shall review a persons prior activities, criminal record, if any,

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

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including, but not limited to an applicant for a key employee or primary management official 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, San Juan Gaming Enterprises shall not employ that person, or otherwise issue the license

applied for.

B. Procedures for Forwarding Applications and Reports for Key Employees and Primary

Management Officials to the National Indian Gaming Commission

1. Unless otherwise directed by N.I.G.C., When a key employee or primary

management official begins work at a gaming enterprise authorized by this ordinance, the

Commission shall forward to the N.I.G.C. a completed application for employment, conduct the

background investigation, and make the determination referred to in this section.

2. The Commission shall forward the report referred to in subsection 4 of this

section to the N.I.G.C. within sixty (60) days after a key employee or primary management official

begins work or within sixty (60) days of the approval of this initial approval of a Pueblo of San Juan

Gaming Ordinance by the Chairman of the N.I.G.C., whichever is later.

3. A Gaming Enterprise shall not employ as a key employee or primary

management official a person who does not have a license within ninety (90) days after applying for

a Gaming License.

4. Report to the National Indian Gaming Commission Pursuant to the

procedures set out in Section 1-7, the Commission shall receive or prepare and forward to the

N.I.G.C. an investigative report on each background investigation. An investigative report shall

include all of the following:

a. Steps taken in conducting a background investigation;

b. Results obtained;

c. Conclusions reached; and

d. The bases for those conclusions.

5. The Commission shall submit, with the report, a copy of the suitability

determination made under this section.

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

a. Shall notify the N.I.G.C.; and

b. May forward copies of its suitability determination and investigative

report (if any) to the N.I.G.C. for inclusion in the Indian Gaming Individuals Records System.

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

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

investigations for inspection by the chairman of the N.I.G.C. or his designee for no less than five (5)

years, from the date of termination of employment.

1-6-4 Granting a Gaming License

A. If, within a thirty (30) day period after the N.I.G.C. receives a report, the N.I.G.C.

notifies the Commission 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 the Commission may issue

a license to such applicant.

B. The Commission shall respond to a request for additional information from the

Chairman of the N.I.G.C. concerning a key employee or a primary management official who is the

subject of a report. Such a request shall suspend the thirty (30) day period under paragraph (C) of

this section until the Chairman of the N.I.G.C. receives the additional information.

C. If, within the thirty (30) day period described above, the N.I.G.C. provides the

Commission with a statement itemizing objections to the issuance of a license to a key employee or

to a primary management official, the Commission shall reconsider the application, taking into

account the objections itemized by the N.I.G.C. The Commission shall make the final decision

whether to issue a license to such applicant.

1-6-5 License Suspension and Revocation

A. If, after the issuance ofa gaming license, the Commission obtains reliable information

from the N.I.G.C. or other source indicating that a licensee is not eligible for a license under the

standard set forth in Section 1-6-3 ofthis Ordinance, the Commission shall suspend such license and

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

B. The Commission shall also notify the licensee of a time and a place for a hearing on

the proposed revocation of a license.

C. After a revocation hearing, the Commission shall decide to revoke or to reinstate the

license. The Commission shall notify the N.I.G.C. of its decision.

D. Any San Juan Pueblo gaming license may be suspended or revoked for cause.

1-6-6 Licensing Providers of Gaming Equipment. Devices, or Supplies

A. Required

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1. The Commission shall have responsibility for licensing providers of gaming

devices and supplies, including those required by the Compact. The Commission shall obtain

sufficient information and identification from the proposed seller or lessor and all persons holding

any direct and indirect financial interest in the lessor or the lease/purchase agreement concerning

gaming equipment, devices or supplies, to allow the Commission to make an informed decision.

2. All providers of supplies, services, and concessions with one or more

contracts which in total exceed $25,000 annually (except contracts for professional legal or

accounting services) relating to San Juan gaming shall be subject to licensure. The Commission

shall also have authority to license a small vendor if that is in the best interest of the Pueblo.

B. Licensing Standards The Commission will apply the same standards for the licensing

of vendors as are applicable under this ordinance for gaming employee licenses.

C. License suspension and revocation The provisions of this ordinance applicable to

employee license, suspension and revocation shall apply to the suspension and revocation of any

vendors license issued by the Commission.

D. License Fee Each person applying to the Commission for a vendors license shall

pay a fee pursuant to a fee schedule established by the Commission.

1-7 BACKGROUND INVESTIGATIONS

1-7-1 Commission Authority The Commission shall conduct a background investigation of each

Person required to be licensed pursuant to Section 1-6-1 of this Ordinance.

1-7-2 Required Information Each Person required to be licensed pursuant to Section 1-6-1 of this

Ordinance shall provide to the Commission the following information on an application form for that

purpose:

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 ten (10) years: business and employment positions

held, ownership interests in those businesses, business and residence addresses, and drivers license

numbers;

C. The names and current addresses of at least three (3) personal references, including

one personal reference who was acquainted with the applicant during each period ofresidence listed

under paragraph B of this section;

D. Current business and residence telephone numbers;

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E. A description of any existing and previous business relationships with Indian tribes,

including ownership interests in those businesses;

F. A description of any existing and previous business relationships with the gaming

industry generally, including ownership interests in those businesses;

G. The name and address of any licensing or regulatory agency with which the person

has filed an application for a license or permit related to gaming, whether or not such license or

permit was granted;

H. For each felony for which there is an ongoing prosecution or a conviction, the charge,

the name and address of the court involved, and the date and disposition if any;

I. For each misdemeanor conviction or ongoing misdemeanor prosecution (excluding

minor traffic violations), within ten (10) years of the date of the application, the name and address

of the court involved and the date and disposition;

J. For each criminal charge (excluding minor traffic charges), whether or not there is

a conviction, if such criminal charge is within ten (10) years of the date of the application and is not

otherwise listed pursuant to paragraph H or 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 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;

L. A current photograph;

M. Any other information the Commission deems relevant; and

N. Fingerprints consistent with procedures set out in this Ordinance

1-7-3 Release Form The Commission shall obtain from each applicant a release form signed by

the applicant authorizing the Commission and N.I.G.C. to obtain any information related to the

applicants activities, including schools, property interests (real and personal), employment, criminal

justice agencies, regulatory agencies, businesses, financial institutions, lending institutions, medical

institutions, hospitals, and health care professionals.

1-7-4 Procedures for Conducting Background Investigations The Commission shall conduct a

background investigation of each Person required to be licensed pursuant to Section 1-6-1 of this

Ordinance sufficient to enable the Commission to make a determination of suitability pursuant to

the requirements of this Ordinance.

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A. An applicant for a license shall provide to the Commission all the information

required pursuant to Section 1-7-2 of this Ordinance and copies of the applicants birth certificate,

social security card, drivers license, passport and other documents deemed necessary by the

Commission to conduct a background investigation of the applicant.

B. The Commission shall confirm, verify, and investigate the information provided by

the applicant and obtain any additional information pursuant to the signed release form. In

conducting a background investigation, the Commission or its agent shall promise to keep

confidential the identity of each person interviewed in the course of the investigation.

C. Once the Commission has satisfied itselfof the accuracy ofthe information provided

by the applicant and other information obtained pursuant to a signed release form, the Commission

shall analyze such information to make the Suitability Determination. The Commission may conduct

any further background investigation should the circumstances warrant.

1-7-5 Fingerprint Check

A. The Chairman of the Commission is authorized to negotiate and enter into an

agreement with the N.I.G.C. or a State or federal law enforcement agency for the purpose of

processing fingerprint cards to obtain criminal history record information (CHRI) of Persons

required to be licensed pursuant to Section 1-6-1 of this Ordinance.

B. The San Juan Pueblo Police Department is hereby designated as the law enforcement

agency responsible for taking fingerprints of applicants for licenses. The Chairman of the

Commission is also authorized to negotiate and enter into an agreement with a State or federal law

enforcement agency to take such fingerprints. Such law enforcement agency shall designate an

individual for the purpose of communicating with the Commission and the N.LG.C. regarding the

taking of fingerprints.

C. The Commission shall impose a fee sufficient to cover the cost of the processing of

the fingerprint cards.

1-7-6 Procedure for Processing Fingerprint Cards

A. Upon receipt o fa completed application for a license and the payment of any required

fees, the Commission is authorized to take fingerprints. The Commission shall take the applicants

fingerprints on cards provided by the N.LG.C. for that purpose. The fingerprint cards shall be

printed by a certified print technician and shall be of a quality as to be classifiable. The fingerprint

cards shall be signed by the person taking the prints and the applicant. After taking the applicants

fingerprints, the Commission shall forward the fingerprint cards directly to the N.I.G.C. for an FBI

fingerprint check.

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B. The Commission shall also send to the N.I.G.C. a check in an amount sufficient to

cover the cost of processing each applicants fingerprint card and a list containing the following

information:

1. The names of each applicant whose fingerprint cards will be sent to the

N.I.G.C. by the law enforcement agency;

2. The social security number for each applicant;

3. The date of birth of each applicant; and

4. The name of the law enforcement agency taking the fingerprints.

1-7-7 Criminal History Record Information The Commission may use the CHRI for the purpose

of making a Suitability Determination and any other lawful purpose permitted by an agreement with

the N.I.G.C. or a State or federal law enforcement agency. The Commission shall abide by all

conditions or limitations imposed by such agreement on the release, dissemination or use of the

CHRI. The Commission shall further ensure that the CHRI is restricted to the personnel directly

involved in the licensing deliberations. The Commission shall maintain records of the identities of

all personnel receiving access to the CHRI and shall furnish such records to the N.I.G.C. upon

request.

1-8 MANAGEMENT CONTRACTS

1-8-1 Requirement for Review and Approval The Pueblo may enter into a Management Contract

subject to approval of the Commission and the N.I.G.C.

1-8-2 Required Provisions

A. Governmental Authority The Pueblo shall not enter into a Management Contract

unless it provides that all Class III Gaming conducted by a Management Contractor be conducted

in accordance with this Ordinance, as amended or restated, the Compact, the Act and all applicable

federal regulations.

B. Assignment of Responsibilities A Management Contract shall identify the

responsibilities of each party for each identifiable function set forth in the Act, and Parts I and H of

this Ordinance.

C. Accounting and Record Keeping A Management Contract shall provide for the

establishment and maintenance of satisfactory accounting systems and procedures that shall include

an adequate system ofinternal accounting controls and permit the preparation offinancial statements

in accordance with generally accepted accounting principles. The Management Contractor shall

maintain adequate written records of bingo, and other Class II gaming activities on the premises for

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a period of at least four (4) years. Records for Class IH gaming activities shall be maintained for a

period of at least five (5) years. These records shall include:

1. Gross Receipts.

2. Records of prizes, maintain pursuant to paragraph E above.

3. Any and all expenses.

4. Capital expenditures

5. Contract.

6. Net profits.

7. Payments to Pueblos general fund.

8. Documents and calculations required to be maintained to satisfy terms of the

Compact.

D. The Management Contract shall require the Management Contractor, at its own cost

and expense to provide monthly verifiable financial reports to the Pueblo, the Commission, and if

required by the Act, the N.I.G.C., including any reports that the Compact requires the Management

Contractor to make to the New Mexico Secretary of State or other State agencies or representatives.

E. Access

1. A Management Contract shall require a Management Contractor to allow

immediate access to a Gaming Facility or Enterprise, including its books and records, by authorized

officials ofthe Pueblo, the Commission, or N.I.G.C. who shall have the right to verify the daily gross

revenues and income from the Gaming Facility or Enterprise and agree to any other gaming-related

information that such authorized officials deem appropriate.

2. A Management Contract shall provide that the State Gaming Representative

shall have access to inspect all aspects of the gaming operations as provided by the Compact.

F. Guaranteed Payment A Management Contract shall provide for a minimum

guaranteed monthly payment in a sum certain to the Gaming Enterprise that has preference over the

retirement of any development and construction costs.

G. Development and Construction Costs A Management Contract shall provide for an

agreed upon maximum dollar amount per month ofrevenues for the recoupment ofdevelopment and

construction costs.

H. Term Pursuant to the Act, a Management Contract shall not be for a term exceeding

five (5) years unless, upon request of the Pueblo, the N.I.G.C. authorizes a longer contract term not

to exceed seven (7) years.

I. Compensation Pursuant to the Act, a Management Contract shall not provide for

more than thirty percent (30%) of the Net Revenues of a Gaming Enterprise to be paid to a

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Management Contractor unless, upon request of the Pueblo, the N.I.G.C. authorizes a higher

percentage not to exceed forty percent (40%). The balance of any Net Revenues shall be paid to the

Treasurer of the Pueblo or other Pueblo entity as set forth in a Management Contract.

J. Termination: Disputes A Management Contract shall provide the grounds and

mechanisms for modifying or terminating such contract and include a mechanism to resolve disputes

between a Gaming Enterprise or Facility and Management Contractor, Management Contractor and

patrons, and Management Contract andlor its employees. Such grounds and mechanisms must

comply with applicable provisions of the Compact and this Ordinance. In the event of any conflict,

the provisions of the Compact shall prevail.

K. Assignments and Subcontracting A Management Contract shall provide to what

extent contract assignments and subcontracting are permissible. A Management Contract shall also

provide that any assignment or subcontract, assignee or subcontractor, must agree to comply with

all provisions of the Act, applicable federal regulations, this Ordinance and the Compact.

L. Ownership Interest A Management Contract shall provide that changes in the

ownership interest in such contract shall require the advance approval of the Pueblo, the

Commission, and if required by the Act, the N.I.G.C.

M. Prohibited provisions A Management Contract shall not transfer or convey any

interest in Pueblo Lands unless consistent with the Act and authorized by the Pueblo, federal law,

including, but not limited to applicable federal regulations.

1-9 DISPUTE RESOLUTION

1-9-I Patron Dispute Resolution Procedures Regarding Payouts If a Gaming Enterprise or

Management Contractor refuses to pay alleged winnings to a patron engaged in Gaming and a

Gaming Enterprise or Management Contractor are unable to resolve the dispute the following

procedures shall be used:

A. If the dispute involves at least $250, the Gaming Enterprise or Management

Contractor shall notif~ the Commission in writing ofthe dispute within five calendar days ofthe date

the dispute arises, or the date of the written complaint, which ever is later (Notice of Dispute), and

shall provide a copy of this Section of the Ordinance (Section 1-9-1) to the patron.

B. If the dispute involves less than $250, the Gaming Enterprise or Management

Contractor shall inform the patron that the patron has the right within five calendar days of the date

the dispute arises to make a written request to the Commission to conduct an investigation (Request

for Investigation).

C. The failure of a patron to make a Request for Investigation within the five day period

shall bar the claim to any money in dispute.

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D. The failure of the Gaming Enterprise or Management Contractor to give a Notice of

Dispute within the five (5) day period set forth in paragraph A above, absent a showing of good

cause, shall bar the Gaming Enterprise or Management Contractor from contesting any patron

dispute regarding payouts later submitted to the Commission in writing by the patron.

E. Investigation and Hearing Upon receipt of Notice of Dispute, Request for

Investigation or written notice of a patron dispute submitted by a patron, the Commission shall

conduct whatever investigation it deems necessary to resolve the dispute. The Commission shall

hold a hearing on the matter within ten calendar days after concluding the investigation of the

dispute. At the hearing, the Gaming Enterprise or Management Contractor and patron may submit

any documentation or other evidence to the Commission to support their respective positions.

F. Decision Within ten (10) calendar days after the hearing, the Commission shall

issue a written decision resolving the dispute and shall mail the written decision, by certified mail,

return receipt requested, to the patron and the Gaming Enterprise or Management Contractor. The

effective date of a decision of the Commission made under this Section is the date the decision is

received by the aggrieved party as reflected on the return receipt (Effective Date).

G. Review of Decision The decision of the Commission shall be final and subject to

review by the Tribal Court, if the aggrieved party files a petition for review with the Tribal Court

within ten calendar days of the Effective Date.

1-9-2 Other Patron Disputes All other patron disputes that are recognized in the Compact shall

be resolved pursuant to the dispute resolution procedures set forth in the Compact.

1-10 GAMING COMMISSION

1-10-1 Establishment of the Commission, Appointment. Term The terms of this ordinance, as

previously adopted by the Pueblo in Resolution 95-13, provided for the establishment of a Board to

be known as the Pueblo of San Juan Gaming Board, consisting of three (3) members appointed by

the Council to serve staggered terms ofthree (3) years commencing on the date oftheir appointment.

Henceforth the Pueblo of San Juan Gaming Board shall be designated the Pueblo of San Juan

Gaming Commission, and Members of the Pueblo of San Juan Gaming Board shall be designated

as the Pueblo of San Juan Gaming Commissioners. The Commission shall continue to have three

members who shall be appointed by the Council to serve staggered terms ofthree years commencing

on the date of their appointment.

1-10-2 Compensation The Council shall establish the compensation, if any, for the Pueblo of San

Juan Gaming Commissioners.

1-10-3 Removal The Council may remove any Commissioner for any reason at any time.

1-10-4 Vacancies The Council may fill any vacancies in the Commission.

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1-10-5 Designation as Agent and Tribal Gaming Agency The Commission is hereby appointed as

the agent for the Pueblo to accept on behalfofthe Pueblo service ofany official determination, order,

notice of violation that may be served by the N.I.G.C. pursuant to the Act. The Commission is also

designated as the Tribal Gaming Agency for purposes of the Compact.

1-10-6 Powers and Duties The Commission shall have the following powers:

A. To monitor and regulate any Gaming Activity conducted on Pueblo Lands except as

provided by applicable law or the Compact;

B. To inspect and examine all Gaming Enterprises, Facilities or Premises on Pueblo

lands on which any Gaming Activity is conducted.

C. To conduct background investigations as maybe necessary and to conduct such other

investigations to protect the public interest in the integrity of any Gaming Activity and to prevent

improper or unlawful conduct in the course of any Gaming Activity.

D. To demand access to, inspect, examine, photocopy, or audit or to cause an audit to

be conducted on all papers, books, and records ofany Gaming Enterprise or Management Contractor

relating to any Gaming Activity conducted on Pueblo Lands and any matters necessary to carry out

its duties pursuant to this Ordinance, the Compact, and applicable law.

E. To compel any Person to appear before it and provide such information, documents

or other materials as may be in such persons possession and to administer oaths or affirmations to

witnesses appearing before it.

F. To promulgate such regulations and guidelines as it deems appropriate to implement

the provisions of this Ordinance, the Compact or other applicable law.

G. To issue, suspend and revoke licenses in accordance with this Ordinance.

H. To enforce the health and safety standards applicable to any Gaming Facility.

I. To levy and collect fees and to impose any penalties and fines for violations of this

Ordinance.

J. To adopt an annual operating budget subject to the approval of the Council, and, in

accordance with such budget, to employ a staff as it deems necessary to fulfill its responsibilities

under this Ordinance, and to retain legal counsel, consultants and other professional services,

including investigative services, to assist it in canying out its powers.

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K. To issue any order or make any decision which the Commission has the power to

issue or make pursuant to applicable law and to take any action as may be required to protect the

public interest in any Gaming Activity.

L. To conduct any hearing, take testimony, and receive any evidence and to compel the

production of any information or documents.

M. To enter into such contracts and agreements with State, federal and private entities

for activities necessary to the discharge of its duties.

N. To take any other action necessary and proper to carry out its powers set forth in this

Ordinance.

1-10-7 Assuring Compliance with Compact In addition to the powers and duties set out in Section

1-9-6, the Commission will assure that the Pueblo will comply with all of the provisions set out in

the Compact for the Conduct of Class ifi Gaming, and that the Pueblo shall adopt laws as set forth

in the Compact.

1-10-8 Executive Director The Commission may appoint and retain an individual to serve as

executive director of the Commission to administer and execute its duties and responsibilities

hereunder and other staff as the Commission may deem necessary to carry our such duties and

responsibilities. The Executive Director shall be responsible for coordination of the functions with

the N.I.G.C. and other federal, state, and local agencies as necessary.

1-10-9 Certificate of Self Regulation As provided in the Act, the Commission on behalf of the

Pueblo may petition the N.I.G.C. for a certificate of self regulation.

1-10-10 Procedures of the Commission

A. Regular Meetings Regular meetings of the Commission may be held upon such

notice, or without notice, and at such time and place as shall from time to time be fixed by the

Conmiission. Unless otherwise specified by the Commission, no notice of such regular meetings

shall be necessary.

B. Special Meetings Special meetings of the Commission may be called by the

Chairman of the Commission or may be held by teleconference of by polling. The chairman of the

Commission shall fix the time and place ofthe special meeting. Neither the business to be transacted

at, nor the purposes of, any regular or special meeting of the Commission need to be specified in the

notice of the meeting.

C. Quorum At any meeting ofthe Commission, a majority ofthe Commission members

shall constitute a quorum for the transaction of business. The vote of a majority of the members

present at a meeting at which a quorum is present shall be the act of the Commission. The chairman

24
of the Commission shall preside at all meetings of the Commission unless the chairman of the

Commission designates another member to preside in his absence. Approval ofaction telephonically

or by polling is also authorized.

D. Notice of Commission Action: Hearings No action of the Commission taken

pursuant to this Ordinance shall be valid unless the Person affected is given notice of the proposed

action and the opportunity to appear and to be heard before the Commission and to submit such

evidence as the Commission deems relevant to the matter at issue. Any hearing conducted may, at

the direction of the Commission be conducted by the Executive Director or by one or members of

the Commission designated by the Commission for that purpose.

E. Rules and Procedures The Commission may adopt such additional procedures and

rules as it deems necessary or convenient to govern its affairs consistent with applicable law.

1-1 1 PROHIBITED ACTS It shall be a violation of this Ordinance for any Person to:

1-11-1 Conduct or participate in any Gaming Activity on Pueblo Lands other than at a licensed

Gaming Facility.

1-11-2 Receive, distribute, apply or divert any property, funds, proceeds, or other assets of a Gaming

Facility or Enterprise to the benefit of any Person except as authorized by this Ordinance, the

Compact or other applicable law.

1-11-3 Tamper with any Gaming Device, Machine or other Gaming Equipment used in the conduct

of any Gaming Activity with the intent to cause any Person to win or lose any wager other than in

accordance with the publicly-announced and approved rules of a Gaming Operation.

1-11-4 Do any act in connection with the conduct of any Gaming Activity with the intent to affect

the outcome of any wager other than in accordance with the publicly-announced and approved rules

of a Gaming Facility or Gaming Enterprise.

1-11-5 Alter or misrepresent the outcome of any event on which wagers have been made after the

outcome is made sure but before it is revealed to the players.

1-11-6 Place, increase or decrease a bet or to determine the course of play after acquiring

knowledge, not available to all players, of the outcome of the game or any event that affects the

outcome of the game or which is subject of the bet or to aid anyone in acquiring such knowledge for

the purpose of placing, increasing or decreasing a bet or determining the course of play contingent

upon that event or outcome.

1-1 1-7 Claim, collect or take, or attempt to claim, collect or take, money or anything of value in or

from a Gaming Device, Gaming Machine or other Gaming Equipment, with intent to defraud,

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without having made a water thereon, or to claim, collect or take an amount greater than the amount

won.

1-1 1-8 Place or increase a wager or bet after acquiring knowledge of the outcome of the game or

other event which is the subject of the bet, including post-posting and pressing bets.

1-1 1-9 Reduce the amount wagered or cancel the bet after acquiring knowledge of the outcome of

the game or other event which is the subject of the bet, including pinching bets.

1-11-10 Manipulate, with the intent to cheat, any Gaming Device, Gaming Machine or Gaming

Equipment, including but not limited to manipulating a Gaming Device, Gaming Machine or

Gaming Equipment with knowledge that the manipulation affects the outcome of such device,

machine or equipment.

1-11-11 Knowingly use other than coins or tokens approved by the Commission or other lawful

coin, legal tender of the United States of America, or to use a coin not of the same denomination as

the coin intended to be used in the Gaming Device, Gaming Machine or Gaming Equipment.

1-11-12 Possess, with the intent to use, any device to assist in projecting the outcome of the game,

in keeping track of the cards played, in analyzing the probability of the occurrence of an event

relating to Gaming Activity or in analyzing the strategy for playing or betting to be used in the

Gaming Activity.

1-1 1-13 Use any device or means to cheat, or to possess any such device or means while at a

Gaming Facility.

1-11-14 Knowingly entice or induce another to go to any place where Gaming Activity is being

conducted or operated in violation ofthe provisions ofthis Ordinance, the Act, the Compact, or other

applicable law with the intent that the other person play or participate in that Gaming Activity.

1-12 PENALTiES

1-12-1 Any person who violates any provision of this Ordinance shall be subject to civil penalties,

termination of employment by the Gaming Facility, Gaming Enterprise or Management Contractor,

denial, suspension or revocation ofa license, exclusion from any Gaming Facility, or exclusion from

Pueblo Lands. The Commission may impose a fine of not more than Five Thousand Dollars

($5,000) for each violation. The Commission shall have thejurisdiction to impose any penalties on

any Person within the jurisdiction of the Pueblo.

1-13 SEVERABILITY

1-13-1 In the event that any section or provision of Part I of this Ordinance or its application to any

particular activity is held to be invalid, the remaining sections and provisions of Part I of this

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Ordinance and the remaining applications of such section or provision shall continue in full force

and effect.

1-14 SOVEREIGN IMMUNITY

1-14-1 Unless required under the Compact or the Act, the Pueblo does not in any way waive its

sovereign immunity from suit in any court. However, decisions ofthe Commission may be appealed

to and shall be subject to final appellate review only in the Tribal Court. No decision of the

Commission shall be reversed unless the San Juan Pueblo Tribal Court finds that the Commissions

action was arbitrary, capricious or not in accordance with the law. No compensatory, punitive,

monetary or exemplary damages may be awarded against the Commission for any action taken or

decision made by the Commission.

1-15 PROTECTION OF COMMISSION

1-15-1 The Pueblo sovereign immunity protects the Commissioners, employees and agents against

any suit arising from their official actions or employment. The Pueblo of San Juan will defend,

protect, and indemnify any person in any legal action arising from performing acts set out in this

ordinance while serving for the Pueblo Gaming Commission.

1-16 REPEAL

1-16-1 To the extent inconsistent with this Ordinance, all prior ordinances, regulations or parts

thereof adopted by the Council are hereby repealed. Nothing in this section is intended to repeal

regulations adopted by the Commission unless inconsistent with the provisions of this Ordinance.

1-17 AMENDMENTS

1-17-1 Part I of this Ordinance may be amended by the Council.

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PART II - Indian Gaming Compact

2-0 INTRODUCTION

A. The State of New Mexico (State) is a sovereign State of the United States of

America, having been admitted to the Union pursuant to the Act of June 20, 1910, 36 Statutes at

Large 557, Chapter 310, and is authorized by its constitution to enter into contracts and agreements,

including this Compact, with the Tribe;

B. The Pueblo of San Juan (Tribe) is a sovereign federally recognized Indian tribe and

its governing body has authorized the officials of the Tribe to enter into contracts and agreements

of every description, including this Compact, with the State;

C. The Congress of the United States has enacted the Indian Gaming Regulatory Act of

1988, 25 U.S.C. §~ 2701-272 1 (hereinafter IGRA), which permits Indian tribes to conduct Class

ifi Gaming on Indian Lands pursuant to a tribal-state compact entered into for that purpose;

D. The 1999 State legislature has enacted SB 737, as 1999 N.M. Laws, ch. 252, known

as the Compact Negotiation Act, creating a process whereby the State and the Tribe have engaged

in negotiations leading to this Compact, with review by ajoint legislative committee, and with final

approval by a majority vote in each house of the legislature;

E. The Tribe owns or controls Indian Lands and by Ordinance has adopted rules and

regulations governing Class ifi games played and related activities at any Gaming Facility; the State

and the Tribe, in recognition of the sovereign rights of each party and in a spirit of cooperation to

promote the best interests of the citizens of the State and the members of the Tribe, have engaged

in good faith negotiations recognizing and respecting the interests of each party and have agreed to

this Compact.

NOW, THEREFORE, the State and the Tribe agree as follows:

2-1 TERMS AND CONDITIONS SECTION

2-1-1 PURPOSE AND OBJECTIVES

The purpose and objectives ofthe State and the Tribe in making this Compact are as follows:

A. To evidence the good will and cooperative spirit between the State and the Tribe;

B. To continue the development ofan effective government-to-government relationship

between the State and the Tribe;

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C. To provide for the regulation of Class UT Gaming on Indian Lands as required by the

IGRA;

D. To fulfill the purpose and intent of the IGRA by providing for tribal gaming as a

means of generating tribal revenues, thereby promoting tribal economic development, tribal

self-sufficiency, and strong tribal government;

E. To provide revenues to fund tribal government operations or programs, to provide

for the general welfare of the tribal members and for other purposes allowed under the IGRA;

F. To provide for the effective regulation of Class ifi Gaming in which the Tribe shall

have the sole proprietary interest and be the primary beneficiary; and

G. To address the States interest in the establishment, by the Tribe, of rules and

procedures for ensuring that Class III Gaming is conducted fairly and honestly by the owners,

operators, employees and patrons of any Class ifi Gaming enterprise on Indian Lands.

H. To settle and resolve certain disputes that have arisen between the Tribe and the State

under the provisions of the Predecessor Agreements.

2-2 DEFiNITIONS For purposes of this Compact, the following definitions pertain:

A. Class ifi Gaming means all forms of gaming as defined in 25 U.S.C. § 2703(8), and

25 C.F.R. § 502.4.

B. Compact means this compact between the State and the Tribe.

C. Gaming Employee means a person connected directly with the conduct of Class III

Gaming, or handling the proceeds thereof or handling any Gaming Machine; but Gaming

Employee does not include:

I. Bartenders, cocktail servers or other persons engaged solely in preparing or

serving food or beverages;

2. Secretarial or janitorial personnel;

3. Stage, sound and light technicians; or

4. Other nongaming personnel.

D. Gaming Enterprise means the tribal entity created and designated by the Tribe as

having authority to conduct Class ifi Gaming pursuant to this Compact.

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E. Gaming Facility means the buildings or structures in which Class ifi Gaming is

conducted on Indian Lands.

F. Gaming Machine means a mechanical, electromechanical or electronic contrivance

or machine that, upon insertion of a coin, token or similar object, or upon payment of any

consideration, is available to play or operate a game, whether the payoff is made automatically from

the Gaming Machine or in any other maimer.

G. Indian Lands means:

1. All lands within the exterior boundaries of the Tribes reservation and its

confirmed grants from prior sovereigns; or

2. Any other lands title to which is either held in trust by the United States for

the exclusive benefit of the Tribe or a member thereof or is held by the Tribe or a member thereof

subject to restrictions against alienation imposed by the United States, and over which the Tribe

exercises jurisdiction and governmental authority, but not including any land within the boundaries

of a municipality that is outside of the boundaries of the Tribes reservation or confirmed Spanish

grant, as those boundaries existed on October 17, 1988.

H. Key Employee means that term as defined in 25 C.F.R. Section 502.14.

I. Management Contract means a contract within the meaning of 25 U.S.C. §~

2710(d)(9) and 2711.

J. Management Contractor means any person or entity that has entered into a

Management Contract with the Tribe.

K. Ordinance means the gaming ordinance and any amendments thereto adopted by

the Tribal Council of the Tribe.

L. Predecessor Agreements means the tribal-state class Ill gaming compact and the

accompanying revenue sharing agreement entered into between the Tribe and the State pursuant to

1997 Laws, ch. 190, §~ 1,2.

M. Primary Management Official means that term as defined in 25 CC.F.R. Section

502.19.

N. State means the State of New Mexico.

0. State Gaming Representative means that person designated by the gaming control

board pursuant to the Gaming Control Act 60-2E-1 to 60-2E-60 NIMSA 1978] who will be

responsible for actions of the State set out in the Compact. The State Legislature may enact

30
legislation to establish an agency of the State to perform the duties of the State Gaming

Representative.

P. Tribal Gaming Agency means the tribal governmental agency which will be

identified to the State Gaming Representative as the agency responsible for actions of the Tribe set

out in the Compact. It will be the single contact with the State and may be relied upon as such by the

State.

Q. Tribe means any Indian Tribe, Nation or Pueblo located within the State of New

Mexico entering into this Compact as provided for herein.

2-3 AUTHORIZED CLASS ifi GAMING

2-3-1 The Tribe may conduct, only on Indian Lands, subject to all of the terms and conditions of

this Compact, any or all forms of Class ifi Gaming.

2-3-2 Subject to the foregoing, the Tribe shall establish, in its discretion, by tribal law, such

limitations as it deems appropriate on the number and type of Class ifi Gaming conducted, the

location of Class ifi Gaming on Indian Lands, the hours and days of operation, and betting and pot

limits, applicable to such gaming.

2-4 CONDUCT OF CLASS III GAMING

2-4-1 Tribal Gaming Agency The Tribal Gaming Agency will assure that the Tribe will:

A. Operate all Class III Gaming pursuant to this Compact, tribal law, the IGRA and other

applicable Federal law;

B. Provide for the physical safety of patrons in any Gaming Facility;

C. Provide for the physical safety of personnel employed by the Gaming Enterprise;

D. Provide for the physical safeguarding of assets transported to and from the Gaming

Facility and cashiers cage department;

E. Provide for the protection of the property of the patrons and the Gaming Enterprise

from illegal activity;

F. Participate in licensing ofprimary management officials and key employees of a Class

ifi Gaming Enterprise;

G. Detain persons who may be involved in illegal acts for the purpose of notifying law

enforcement authorities; and

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H. Record and investigate any and all unusual occurrences related to Class ifi Gaming

within the Gaming Facility.

2-4-2 Regulations Without affecting the generality of the foregoing, the Tribe shall adopt laws:

A. Prohibiting participation in any Class ifi Gaming by any person under the age of

twenty-one (21);

B. Prohibiting the employment of any person as a Gaming Employee who is under the

age of twenty-one (21) or who has not been licensed in accordance with the applicable requirements

of federal and tribal law;

C. Requiring the Tribe to take all necessary action to impose on its gaming operation

standards and requirements equivalent to or more stringent than those contained in the federal Fair

Labor Standards Act of 1938, the federal Occupational Safety and Health Act of 1970, and any other

federal laws generally applicable to Indian tribes relating to wages, hours of work and conditions of

work, and the regulations issued thereunder;

D. Requiring that on any construction project involving any Gaming Facility or related

structure that is funded in whole or in part by federal funds, all workers will be paid wages meeting

or exceeding the standards established for New Mexico under the federal Davis-Bacon Act;

E. Prohibiting the Tribe, the Gaming Enterprise and a Management Contractor from

discriminating in the employment of persons to work for the gaming Enterprise or in the Gaming

Facility on the grounds of race, color, national origin, gender, sexual orientation, age or handicap,

provided, however, that nothing herein shall be interpreted to prevent the Tribe from granting

preference in employment actions to tribal members or other Indians in accordance with established

tribal laws and policies;

F. Providing to all employees of a gaming establishment employment benefits,

including, at a minimum, sick leave, life insurance, paid annual leave and medical and dental

insurance as well as providing unemployment insurance and workers compensation insurance

through participation in programs offering benefits at least as favorable as those provided by

comparable state programs;

G. Providing a grievance process for an employee in cases of disciplinary or punitive

action taken against an employee that includes a process for appeals to persons of greater authority

than the immediate supervisor of the employee;

H. Permitting State Department ofEnvironment inspectors to inspect Gaming Facilities

food service operations during normal Gaming Facility business hours to assure that standards and

requirements equivalent to the States Food Service Sanitation Act Chapter 25, Article I NIMSA

1978] are maintained;

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I. Prohibiting a gaming enterprise from cashing any paycheck or any type of

government assistance check, including Social Security, TANF, pension and other similar checks,

for any patron;

J. Prohibiting a gaming enterprise from extending credit by accepting JOUs or markers

from its patrons;

K. Requiring that the Gaming Enterprise post on each Gaming Machine the odds of a

player achieving a winning outcome from the games available on that Gaming Machine;

L. Requiring that automatic teller machines on Gaming Facility premises be

programmed so that the machines will not accept cards issued by the State to TANF recipients for

access to TANF benefits;

M. Providing that each electronic or electromechanical gaming device in use at the

Gaming Facility must pay out a mathematically demonstrable percentage of all amounts wagered,

which must not be less than eighty percent (80%);

N. Providing that all gaming machines on the premises of the Gaming Facility will be

connected to a central computerized reporting and auditing system on the Gaming Facility premises,

which shall collect on a continual basis the activity of each Gaming Machine in use at the Gaming

Facility, and that by no later than ninety days after this Compact takes effect, the wager and payout

data of each machine, once it is fed into the Gaming Enterprises central computer, may be accessed

electronically by the State Gaming Representative by a dedicated telecommunications connection,

on a read-only basis, upon entry of appropriate security codes; but provided that in no event shall

the State Gaming Representative be able to alter or affect the operation of any Gaming Machine or

other device on the premises of the Gaming Facility, or the data provided to the central computer,

and provided further that the system for electronic access to the machine wager and payout data

collected by the Gaming Enterprises central computer shall be constructed and installed at the States

cost, and shall be designed in conjunction with Gaming Enterprise technical staff so as to preserve

the integrity ofthe system and the data contained therein, to minimize any possibility ofunauthorized

access to the system or tampering with the data, and to minimize any access by the State Gaming

Representative to information other than machine wager and payout data residing in the central

reporting and auditing system;

0. Enacting provisions that:

1. Prohibit an employee of the Gaming Enterprise from selling, serving, giving

or delivering an alcoholic beverage to an intoxicated person or from procuring or aiding in the

procurement of any alcoholic beverage for an intoxicated person at the Gaming Facility;

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2. Require Gaming Enterprise employees that dispense, sell, serve or deliver

alcoholic beverages to attend Alcohol Server Education Classes similar to those classes provided for

in the New Mexico Liquor Control Act; and

3. Require the Gaming Enterprise to purchase and maintain a liquor liability

insurance policy that will provide, at a minimum, personal injury coverage of one million dollars

($1,000,000) per incident and two million dollars ($2,000,000) aggregate per policy year;

P. Prohibiting alcoholic beverages from being sold, served, delivered or consumed in

that part of a Gaming Facility where gaming is allowed;

Q. Requiring the gaming enterprise to spend an amount that is no less than one-quarter

of one percent (.25%) of its net win as that term is defined herein annually to fund or support

programs for the treatment and assistance ofcompulsive gamblers in New Mexico or who patronize

New Mexico gaming facilities, and for the prevention of compulsive gambling in New Mexico; and

requiring that a substantial portion of such funds be distributed to an organization that has expertise

in and provides counseling, intervention or other services for compulsive gamblers in New Mexico,

and whose services are available to all persons without regard to race or tribal membership;

R. Governing any Management Contract regarding its Class ifi Gaming activity so that

it conforms to the requirements of tribal law and the IGRA and the regulations issued thereunder;

S. Prohibiting the operation of any Class ff1 Gaming for at least four (4) consecutive

hours daily, Mondays through Thursdays (except federal holidays);

T. Prohibiting a Tribal Gaming Enterprise and the Tribe from providing, allowing,

contracting to provide or arranging to provide alcoholic beverages for no charge or at reduced prices,

or from providing, allowing, contracting to provide or arranging to provide food or lodging for no

charge or at nominal prices, at a Gaming Facility or lodging facility as an incentive or enticement

for patrons to game; and

U. Requiring the Tribe, the Tribal Gaming Enterprise or a Management Contractor to

report to the secretary of state, in the same manner and at the same times as are required of political

committees under the provisions of the States Campaign Reporting Act (NMSA 1978 §~ 1-19-25

through 1-19-36) any and all contributions, whether directly or through an agent, representative or

employee, of any moneys derived from revenue from the Gaming Enterprise, or of anything ofvalue

acquired with that revenue, to a candidate, political committee or person holding an office elected

or to be elected at an election covered by the States Campaign Reporting Act and provided that in

the event any report required to be made hereunder is not made within the time specified herein, or

is false or incomplete in any respect, the Tribe shall be liable to pay to the secretary of state a penalty

in the amount of fifty dollars ($50.00) for each working day after the day on which the report was

due until the day on which the complete or true report is filed, up to a maximum of five thousand

dollars ($5000), except that with respect to the report due on the Friday before an election the penalty

34
shall be five hundred dollars ($500) for the first working day after the due date and fifty dollars

($50.00) per working day thereafter, up to a maximum of five thousand dollars ($5000).

2-4-3 Copies of Tribal Laws to State Gaming Representative The Tribal Gaming Agency will

provide true copies of all tribal laws and regulations affecting Class ifi Gaming conducted under the

provisions of this Compact to the State Gaming Representative within thirty (30) days after the

effective date of this Compact, and will provide true copies of any amendments thereto or additional

laws or regulations affecting gaming within thirty (30) days after their enactment or approval, if any.

2-4-4 Audit and Financial Statements The Tribal Gaming Agency shall require all books and

records relating to Class III Gaming to be maintained in accordance with generally accepted

accounting principles. All such books and records shall be retained for a period of at least five (5)

years from the date of creation, as required by 25 C.F.R. § 57 1.7(c). Not less than atmually, the

Tribal Gaming Agency shall require an audit and a certified financial statement covering all financial

activities of the gaming enterprise by an independent certified public accountant licensed by the

State. The financial statement shall be prepared in accordance with generally accepted accounting

principles and shall be submitted to the Tribal Gaming Agency within one hundred twenty (120)

days of the close of the Tribes fiscal year. Copies of the financial statement and the audit shall be

furnished to the State Gaming Representative and the state treasurer by the Tribal Gaming Agency

within one hundred twenty days of the agencys receipt of the documents, but such documents shall

be subject to the provisions of § 4(E)(3) of this Compact. The Tribe will maintain the following

records for not less than five (5) years:

A. Revenues, expenses, assets, liabilities and equity for each Gaming Enterprise;

B. Daily cash transactions for each Class Ill Gaming activity at each Gaming Facility,

including but not limited to transactions relating to each gaming table bank, game dropbox and

gaming room bank;

C. All markers, lOUs, returned checks, hold checks or other similar credit instruments;

D. Individual and statistical game records, except for card games, to reflect statistical

drop and statistical win; for electronic, computer, or other technologically assisted games, analytic

reports which show the total amount of cash wagered and the total amount of prizes won;

E. Contracts, correspondence and other transaction documents relating to all vendors

and contractors;

F. Records of all tribal gaming enforcement activities;

G. Audits prepared by or on behalf of the Tribe; and

35
H. Personnel information on all Class ifi Gaming employees or agents, including rotation

sheets, hours worked, employee profiles and background checks.

2-4-6 Violations The agents of the Tribal Gaming Agency shall have unrestricted access to the

Gaming Facility during all hours of Class III Gaming activity, and shall have immediate and

unrestricted access to any and all areas of the Gaming Facility for the purpose of ensuring

compliance with the provisions of this Compact and the Ordinance. The agents shall report

immediately to the Tribal Gaming Agency any suspected violation of this Compact, the Ordinance,

or regulations of the Tribal Gaming Agency by the gaming enterprise, Management Contractor, or

any person, whether or not associated with Class III Gaming.

2-4-7 State Gaming Representative

A. Upon written request by the State to the Tribe, the Tribe will provide information on

primary management officials, key employees and suppliers, sufficient to allow the State to conduct

its own background investigations, as it may deem necessary, so that it may make an independent

determination as to the suitability of such individuals, consistent with the standards set forth in

Section 5 of this Compact. The Tribe shall consider any information or recommendations provided

to it by the State as to any such person or entity, but the Tribe shall have the final say with respect

to the hiring or licensing of any such person or entity.

B. Notwithstanding that the Tribe has the primary responsibility to administer and

enforce the regulatory requirements ofthi s Compact, the Tribal Gaming Agency will certify annually

to the State Gaming Representative that the Tribal Gaming Agency has met its obligations under this

Compact. Additionally, the State Gaming Representative shall have the right to inspect a Gaming

Facility, Class ifi Gaming activity, and all records relating to Class ifi Gaming of the Tribe, subject

to the following conditions:

1. With respect to public areas of a Gaming Facility, at any time without prior

notice during normal Gaming Facility business hours;

2. With respect to private areas of a Gaming Facility not accessible to the public,

at any time during normal Gaming Enterprise business hours, immediately after notifying the Tribal

Gaming Agency and Gaming Enterprise ofhis or her presence on the premises and presenting proper

identification, and requesting access to the non-public areas of the Gaming Facility. The Tribe, in

its sole discretion, may require an employee of the Gaming Enterprise or the Tribal Gaming Agency

to accompany the State Gaming Representative at all times that the State Gaming Representative is

on the premises of a Gaming Facility, but if the Tribe imposes such a requirement, the Tribe shall

require such an employee of the Gaming Enterprise or the Tribal Gaming Agency to be available at

all times for such purpose;

3. With respect to inspection and copying of all management records relating

to Class ifi Gaming, at any time without prior notice between the hours of 9:00 a.m. and 4:00 p.m.

36
Monday through Friday, excluding official holidays. The reasonable costs of copying will be borne

by the State; and

4. Whenever the State Gaming Representative, or his designee, enters the

premises of the Gaming Facility for any such inspection, such Representative, or designee, shall

identif~ himself to security or supervisory personnel of the Gaming Enterprise.

The State Gaming Representative may contract with private persons, firms or other entities

for the purpose of performing certain of his functions, but the State Gaming Representative will be

the single contact with the Tribe and may be relied upon as such by the Tribe.

C. Documents and Communications

1. Any information, documents or communications provided to the State

Gaming Representative, his agents or contractors, or to any other official, agency or entity of the

State (all of which are collectively hereinafter referred to as the State entities) by the Tribe, the

Tribal Gaming Agency or the Gaming Enterprise, or prepared from information obtained from the

Tribe, the Tribal Gaming Agency or the Gaming Enterprise, under the provisions of this Compact

or under the provisions of the Predecessor Agreements, are confidential. Any State entity that has

received any information, documents or communications from the Tribe, the Tribal Gaming Agency

or the Gaming Enterprise: i) may release or disclose the same only with the prior written consent of

the Tribe or pursuant to a lawful court order after timely notice of the proceeding has been given to

the Tribe; ii) shall maintain all such information, documents and communications in a secure place

accessible only to authorized officials and employees of the State entity that has received the same;

and iii) shall adopt procedures and regulations to protect the confidentiality of the information,

documents and communications provided by the Tribe, Tribal Gaming Agency or Gaming

Enterprise.

2. These prohibitions shall not be construed to prohibit:

a. The furnishing of any information to a law enforcement or regulatory

agency of the Federal Government;

b. The State from making known the names of persons, firms, or

corporations conducting Class ifi Gaming pursuant to the terms of this Compact, locations at which

such activities are conducted, or the dates on which such activities are conducted;

c. Publishing the terms of this Compact;

d. Disclosing information as necessary to audit, investigate, prosecute

or arbitrate violations of this Compact or other applicable laws or to defend suits against the State;

and

37
e. Complying with subpoenas or court orders issued by courts of

competent jurisdiction.

3. Notwithstanding the foregoing, the Tribe agrees that:

a. The following documents and information may be released by a State

entity to the public: the Tribes gaming ordinance and regulations of the Tribal Gaming Agency;

official rulings ofthe Tribal Gaming Agency in matters not subject to a confidentiality order imposed

by the Agency; other information and documents of the Tribal Gaming Agency or the Gaming

Enterprise ordinarily available to the public; quarterly Net Win figures used as the basis for

computation of the Tribes revenue sharing payment under the provisions of Section 11 of this

Compact; and correspondence between the Tribe or a tribal entity and a State entity, unless such

correspondence is specifically labeled Confidential;

b. A State entity may release to the public aggregate figures compiled

by totaling comparable figures from the annual financial statements of all of the New Mexico

gaming tribes; and

c. The report of the annual audit of the Gaming Enterprise that is

provided by the Tribe to the State Gaming Representative shall be available to the public to the same

extent that similar information that is required to be provided to the State by non-Indian gaming

entities is available to the public, pursuant to the provisions of applicable law and the policies and

regulations of the Gaming Control Board, at the time the request for the report of the annual audit

is made.

4. To the fullest extent allowed by State law, the Tribe shall have the right to

inspect State records concerning all Class ifi Gaming conducted by the Tribe; the Tribe shall have

the right to copy such State records, with the Tribe bearing the reasonable cost of copying.

5. The Tribe shall reimburse the State for the costs the State incurs in carrying

out any functions authorized by the terms of this Compact. The Tribe and the State agree that to

require the State to keep track of and account to the Tribe for all such costs would be unreasonably

burdensome, and that a fair estimate of the States costs of such activity as of the date on which this

Compact takes effect is one hundred thousand dollars ($100,000) per year, and that those costs will

increase over time. The Tribe therefore agrees to pay the State the sum of one hundred thousand

dollars ($100,000) per year as reimbursement of the States costs of regulation, which amount shall

increase by three percent (3%) each year, beginning as of January 1 of the first calendar year after

this Compact has been in effect for at least twelve (12) months, in quarterly payments of one-fourth

of the annual amount due each, in advance, beginning with the first day of the first full calendar

quarter after this Compact takes effect, and on the first day of each quarter thereafter, for as long as

this Compact remains in effect. The Tribe and the State further agree that such amount fairly reflects

the States costs of regulation during the period of time that the Predecessor Agreements were in

effect, and that the Tribe should pay the State that amount for such period, but no more. The Tribe

38
therefore agrees that with its first quarterly payment due to the State under the provisions of this

Paragraph, it will also pay to the State an amount equal to the number of full calendar quarters that

the Predecessor Agreements were in effect, times twenty-five thousand dollars ($25,000), less the

total amount that the Tribe actually paid to the State during such period under the provisions of

Section 4(E)(5) of the compact portion of the Predecessor Agreements. If the amount thus

determined is a negative number, such amount shall be credited against the payments due to the State

under the provisions of this Paragraph until the Tribe has recouped such amount in full, but in such

case the Tribe shall nevertheless provide to the State, on or before the due date for each quarterly

payment, a statement of the amount of the overpayment still to be recouped, and the amount credited

for the current payment.

6. In the event the State believes that the Tribe is not administering and enforcing

the regulatory requirements set forth herein, it may invoke the procedures set forth in Section 7 of

this Compact.

2-4-8 Compliance with Bank Secrecy Act The Tribe shall comply with all applicable provisions

oftheBank SecrecyAct, P.L. 91-508, October26, 1970,31 U.S.C. §~ 531 1-5314, and all reporting

requirements of the Internal Revenue Service.

2-5 LICENSING REQUIREMENTS

2-5-1 License Required The Gaming Facility operator, but not including the Tribe, including its

principals, primary management officials, and key employees, the Management Contractor and its

principals, primary management officials, and key employees (if the Tribe hires a Management

Contractor); any person, corporation, or other entity that has supplied or proposes to supply any

gaming device to the Tribe or the Management Contractor; and any person, corporation or other

entity providing gaming services within or without a Gaming Facility, shall apply for and receive a

license from the Tribal Gaming Agency before participating in any way in the operation or conduct

of any Class III Gaming on Indian Lands. The Tribal Gaming Agency shall comply fully with the

requirements of this Section and of the Indian Gaming Regulatory Act, especially at 25 U.S.C. §~

27 10-271 1, and the regulations issued thereunder at 25 C.F.R. Parts 550-559, as well as the

requirements of the Tribes gaming ordinance and any regulations issued thereunder, in processing

license applications and issuing licenses.

2-5-2 License Application Each applicant for a license shall file with the Tribal Gaming Agency

a written application in the form prescribed by the Tribal Gaming Agency, along with the applicants

fingerprint card, current photograph and the fee required by the Tribal Gaming Agency.

2-5-3 Background Investigations Upon receipt of a completed application and required fee for

licensing, the Tribal Gaming Agency shall conduct or cause to be conducted a background

investigation to ensure that the applicant is qualified for licensing.

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2-5-4 Provision of Information to State Gaming Representative Whenever the Tribal Gaming

Agency is required by federal or tribal law or regulations to provide to the National Indian Gaming

Commission any information, document or notice relating to the licensing of any key employee or

primary management official of the Gaming Enterprise, a copy of such information, document or

notice shall also be provided to the State Gaming Representative. The State Gaming Representative

shall be entitled to the same right to request additional information concerning an applicant licensee,

to comment on the proposed licensing of any applicant licensee, and to supply the Tribal Gaming

Agency with additional information concerning any applicant licensee, as is enjoyed by the

Commission.

2-6 PROVIDERS OF CLASS ifi GAMING EQUIPMENT OR DEVICES OR SUPPLIES

2-6-1 Within thirty (30) days after the effective date of this Compact, if it has not already done so,

the Tribal Gaming Agency will adopt standards for any and all Class ifi Gaming equipment, devices

or supplies to be used in any Gaming Facility, which standards shall be at least as strict as the

comparable standards applicable to Class ifi Gaming equipment, devices or supplies within the State

of Nevada. Any and all Class III Gaming equipment, devices or supplies used by the Tribe shall

meet or exceed the standards thereby adopted.

2-6-2 Prior to entering into any future lease or purchase agreement for Class ifi Gaming

equipment, devices or supplies, the Tribe shall obtain sufficient information and identification from

the proposed seller or lessor and all persons holding any direct or indirect financial interest in the

lessor or the lease/purchase agreement to permit the Tribe to license those persons in accordance

with applicable federal and tribal law.

2-6-3 The seller, lessor, manufacturer or distributor shall provide, assemble and install all Class

III Gaming equipment, devices or supplies in a manner approved and licensed by the Tribe.

2-7 DISPUTE RESOLUTION

2-7-1 In the event either party believes that the other party has failed to comply with or has

otherwise breached any provision of this Compact, such party may invoke the following procedure:

A. The party asserting noncompliance shall serve written notice on the other party. The

notice shall identify the specific Compact provision believed to have been violated and shall specify

the factual and legal basis for the allegation of noncompliance. The notice shall specifically identify

the date, time and nature of the alleged noncompliance.

B. In the event an allegation by the complaining party is not resolved to the satisfaction

of such party within twenty (20) days after service of the notice set forth in Paragraph A(1) of this

section, the complaining party may serve upon the other party a notice to cease conduct of the

particular game(s) or activities alleged by the complaining party to be in noncompliance. Upon

receipt of such notice, the responding party may elect to stop the game(s) or activities specified in

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the notice or invoke arbitration and continue the game(s) or activities pending the results of

arbitration. The responding party shall act upon one of the foregoing options within ten (10) days of

receipt of notice from the complaining party, unless the parties agree to a longer period, but if the

responding party takes neither action within such period the complaining party may invoke

arbitration by written notice to the responding party within ten (10) days of the end of such period.

C. The arbitrators shall be attorneys who are licensed members in good standing of the

State Bar ofNew Mexico or of the bar of another state. The State will select one arbitrator, the Tribe

a second arbitrator, and the two so chosen shall select a third arbitrator. If the third arbitrator is not

chosen in this manner within ten (10) days after the second arbitrator is selected, the third arbitrator

will be chosen by the American Arbitration Association. The arbitrators thereby selected shall

permit the parties to engage in reasonable discovery, and shall establish other procedures to ensure

a full, fair and expeditious hearing on the matters at issue. The arbitrators shall determine, after

hearing from each party, whether the arbitration proceeding or any portions thereof shall be closed

to the public, but in the absence of such determination the proceedings shall be open to the public.

The arbitrators shall make determinations as to each issue presented by the parties, but the arbitrators

shall have no authority to determine any question as to the validity or effectiveness of this Compact

or of any provision hereof.

D. All parties shall bear their own costs of arbitration and attorneys fees.

E. The results of arbitration shall be final and binding, and shall be enforceable by an

action for injunctive or mandatory injunctive relief against the State and the Tribe in any court of

competent jurisdiction. For purposes of any such action, the State and the Tribe acknowledge that

any action or failure to act on the part of any agent or employee of the State or the Tribe, contrary

to a decision of the arbitrators in an arbitration proceeding conducted under the provisions of this

section, occurring after such decision, shall be wholly unauthorized and ultra vires acts, not protected

by the sovereign immunity of the State or the Tribe.

2-7-2 Nothing in Section 2-7-1 Subsection 7(A)] shall be construed to waive, limit or restrict any

remedy that is otherwise available to either party to enforce or resolve disputes concerning the

provisions of this Compact. Nothing in this Section shall be deemed a waiver of the Tribes

sovereign immunity. Nothing in this Section shall be deemed a waiver of the States sovereign

immunity.

2-8 PROTECTION OF VISITORS

2-8-1 Policy Concerning Protection of Visitors The safety and protection of visitors to a Gaming

Facility is a priority of the Tribe, and it is the purpose of this Section to assure that any such persons

who suffer bodily injury or property damage proximately caused by the conduct of the Gaming

Enterprise have an effective remedy for obtaining fair and just compensation. To that end, in this

Section, and subject to its terms, the Tribe agrees to carry insurance that covers such injury or loss,

agrees to a limited waiver of its immunity from suit, and agrees to proceed either in binding

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arbitration proceedings or in a court of competent jurisdiction, at the visitors election, with respect

to claims for bodily injury or property damage proximately caused by the conduct of the Gaming

Enterprise. For purposes of this Section, any such claim may be brought in state district court,

including claims arising on tribal land, unless it is finally determined by a state or federal court that

IGRA does not permit the shifting ofjurisdiction over visitors personal injury suits to state court.

2-8-2 Insurance Coverage for Claims Required The Gaming Enterprise shall maintain in effect

policies of liability insurance insuring the Tribe, its agents and employees against claims, demands

or liability for bodily injury and property damages by a visitor arising from an occurrence described

in Paragraph A of this Section. The policies shall provide bodily injury and property damage

coverage in an amount of at least fifty million dollars ($50,000,000) per occurrence and fifty million

dollars ($50,000,000) annual aggregate. The Tribe shall provide the State Gaming Representative

annually a certificate of insurance showing that the Tribe, its agents and employees are insured to

the required extent and in the circumstances described in this Section.

2-8-3 Limitation on Time to Bring Claim Claims brought pursuant to the provisions ofthis section

must be commenced by filing an action in court or a demand for arbitration within three years of the

date the claim accrues.

2-8-4 Specific Waiver of Immunity and Choice of Law The Tribe, by entering into this Compact

and agreeing to the provisions of this section, waives its defense of sovereign immunity in

connection with any claims for compensatory damages for bodily injury or property damage up to

the amount of fifty million dollars ($50,000,000) per occurrence asserted as provided in this section.

This is a limited waiver and does not waive the Tribes immunity from suit for any other purpose.

The Tribe shall ensure that a policy of insurance that it acquires to fulfill the requirements of this

section shall include a provision under which the insurer agrees not to assert the defense ofsovereign

immunity on behalf of the insured, up to the limits of liability set forth in this Paragraph. The Tribe

agrees that in any claim brought under the provisions of this Section, New Mexico law shall govern

the substantive rights of the claimant, and shall be applied, as applicable, by the forum in which the

claim is heard, except that the tribal court may but shall not be required to apply New Mexico law

to a claim brought by a member of the Tribe.

2-8-5 Election by Visitor A visitor having a claim described in this section may pursue that claim

in any court of competent jurisdiction, or in binding arbitration. The visitor shall make a written

election that is final and binding upon the visitor.

2-8-6 Arbitration Arbitration pursuant to an election by a visitor as provided in Subsection E of

this section shall be conducted as follows:

A. The visitor shall submit a written demand for arbitration to the Gaming Enterprise,

by certified mail, return receipt requested;

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B. The visitor and the Gaming Enterprise shall each designate an arbitrator within thirty

(30) days of receipt of the demand, and the two arbitrators shall select a third arbitrator, but in the

event the two arbitrators cannot agree on the selection of the third arbitrator within thirty (30) days

of their appointment, they shall apply to the American Arbitration Association to appoint the third

arbitrator;

C. The arbitration panel shall permit the parties to engage in reasonable discovery, and

shall establish other procedures to ensure a full, fair and expeditious hearing on the claim; and

D. The award of the arbitration panel shall be final and binding, and may be enforced

in a court of competent jurisdiction.

2-8-7 Increase in Liability Limits As of the fifth anniversary of this Compact, and at five-year

intervals thereafter, the liability insurance coverage requirements set forth in Paragraph B of this

Section, and the limit on the Tribes waiver of sovereign immunity set forth in Paragraph D of this

Section, shall be increased by a percentage equal to the percentage increase in the CPI-U published

by the Bureau of Labor Statistics of the United States Department of Labor, for the same period,

rounded to the nearest one hundred thousand dollars ($100,000).

2-8-8 Public Health and Safety The Tribe shall establish for its Gaming Facility health, safety and

construction standards that are at least as stringent as the current editions of the National Electrical

Code, the Uniform Building Code, the Uniform Mechanical Code, the Uniform Fire Code and the

Uniform Plumbing Code, and any and all Gaming Facilities or additions thereto constructed by the

Tribe hereafter shall be constructed and all facilities shall be maintained so as to comply with such

standards. Inspections will be conducted with respect to these standards at least annually. If the State

Gaming Representative requests sufficiently in advance of an annual inspection, the State Gaming

Representative may be present during such inspection. The Tribe agrees to correct any deficiencies

noted in such inspections within a time agreed upon between the State and Tribe. The Tribal Gaming

Agency will provide copies of such inspection reports to the State Gaming Representative, if

requested to do so in writing.

2-9 CONDITIONS FOR EXECUTION~ EFFECTIVE DATE

2-9-1 The parties acknowledge that they have been engaged in litigation, captioned State ofNew

Mexico v. Jicarilla Apache Tribe, et al., No. 00-0851 (D.N.M.) (the Lawsuit), that was initiated

by the State in United States District Court on June 13, 2000, in which the State seeks an injunction

against the Tribes conduct of Class ifi gaming under the Predecessor Agreements unless the Tribe

pays the State the full amount that the State claims it is owed under the revenue sharing provision

ofthe Predecessor Agreements. The Tribe disputes the validity of such provision of the Predecessor

Agreements, but the parties have agreed to settle the dispute addressed in the Lawsuit, and have

agreed to enter into this new Compact.

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2-9-2 This Compact may not be executed by the Governor of the State unless and until it has been

executed by the appropriate representative of the Tribe, and until the State Attorney General has

certified to the Governor in writing that the Tribe and the State have negotiated a complete

settlement of the issues in dispute in the Lawsuit (except that such settlement shall be contingent

upon this Compact going into effect under the provisions ofIGRA), and that the Tribe has either paid

in full the amount agreed to by the terms of the settlement, into the registry of the federal court, or

has entered into a binding and fully enforceable agreement for the payment of such amount that is

acceptable to the Attorney General. Upon receiving such certification, the Governor shall execute

the Compact and forward it to the Secretary of the Interior for approval. Upon the Secretarys

affirmative approval of this Compact, as set forth in Paragraph C of this Section, such sum, plus

interest, shall be immediately paid into the State General Fund. In the event the Secretary fails to

affirmatively approve this Compact, such sum, plus interest, shall be immediately repaid to the Tribe.

2-9-3 This Compact shall take effect upon publication of notice in the Federal Register of its

approval by the Secretary of the Interior, or of the Secretarys failure to act on it within 45 days from

the date on which it was submitted to him; provided, however, that notwithstanding its taking effect,

the parties expressly agree that the provisions of this Compact shall remain suspended, and shall

confer no rights or obligations on either party, and that the terms and provisions of the Predecessor

Agreements shall remain fully in force and effect, subject to the Tribes and the States claims in the

Lawsuit, unless and until the Secretary shall have affirmatively approved this Compact, pursuant to

25 U.S.C. § 27l0(d)(8)(A).

2-9-4 Upon the publication of notice of the Secretarys affirmative approval of this Compact in the

Federal Register, the Predecessor Agreements shall be and become null and void, and of no further

effect, and any and all actions as between the Tribe and the State arising out of the Predecessor

Agreements, including dispute resolution proceedings, shall thereafter be dismissed with prejudice

with no relief to either party, and the terms and provisions of this Compact shall go into full force

and effect, fully supplanting and replacing the Predecessor Agreements.

2-10 CRIMINAL JURISDICTION

2-10-I The Tribe and the State acknowledge that under the provisions of § 23 of the IGRA,

especially that portion codified at 18 U.S.C. § 1166(d), jurisdiction to prosecute violations of State

gambling laws made applicable by that section to Indian country is vested exclusively within the

United States, unless the Tribe and the State agree in a compact entered into pursuant to the IGRA

to transfer such jurisdiction to the State.

2-10-2 The Tribe and the State hereby agree that, in the event of any violation of any State gambling

law on Indian Lands or any other crime against the Gaming Enterprise or any employee thereof or

that occurs on the premises of the Tribal Gaming Facility, that is committed by any person who is

not a member of the Tribe, the State shall have and may exercise jurisdiction, concurrent with that

of the United States, to prosecute such person, under its laws and in its courts.

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2-10-3 Immediately upon becoming aware ofany such suspected crime by a nonmember ofthe Tribe

the Gaming Enterprise or the Tribal Gaming Agency shall notify the state attorney general and the

district attorney for the district in which the Gaming Facility is located, supplying all particulars

available to the tribal entity at the time. The Tribe agrees that its law enforcement and gaming

agencies shall perform such additional investigation or take such other steps in furtherance of the

investigation and prosecution of the violation as the district attorney may reasonably request, and

otherwise cooperate fully with the district attorney and any state law enforcement agencies with

respect to the matter, but once notice of a suspected violation has been given to the district attorney,

the matter shall be deemed to be under the jurisdiction of the State; provided, however, that in the

event of emergency circumstances involving a possible violation, the Tribe and its constituent

agencies shall have the discretion to act as they see fit, and to call upon such other agencies or

entities as they deem reasonable or necessary, in order to protect against any immediate threat to

lives or property. The State may, in its discretion, refer the matter to federal authorities, but it shall

notify the Tribal Gaming Agency upon doing so.

2-10-4 The State agrees that no less frequently than annually it will provide the Tribal Gaming

Agency with a written report of the status and disposition of each matter referred to it under the

provisions of this section since the last report or that was still pending at the time of the last report.

In the event the district attorney to whom a matter is referred under the provisions of this section

decides not to prosecute such matter, the district attorney shall promptly notify the Tribal Gaming

Agency of such decision in writing. The Tribal Gaming Agency may in that event ask the attorney

general of the state to pursue the matter.

2-10-5 The district attorney for the district in which the Gaming Facility is situated may decline to

accept referrals of cases under the provisions of this section unless and until the Tribe has entered

into a Memorandum ofUnderstanding with the office ofthe district attorney to which Memorandum

of Understanding the United States Attorney for the District of New Mexico may also be a party

addressing such matters as the specific procedures by which cases are to be referred, participation

of the Tribal Gaming Agency and tribal law enforcement personnel in the investigation and

prosecution of any such case, payments by the Tribe to the office of the district attorney to defray

the costs of handling cases referred under the provisions of this section, and related matters.

2-11 REVENUE SHARTh4G

2-11-1 Consideration The Tribe shall pay to the State a portion of its Class ifi Gaming revenues

identified in and under procedures of this Section, in return for which the State agrees that the Tribe

has the exclusive right within the State to conduct all types of Class 111 Gaming described in this

Compact, with the sole exception of the use of Gaming Machines, which the State may permit on

a limited basis for racetracks and for veterans and fraternal organizations as such organizations are

described in 1997 Laws ch. 190, §5(FF).

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2-11-2 Revenue to State The parties agree that, after the effective date hereof, the Tribe shall make

the quarterly payments provided for in Paragraph C of this Section. Each payment shall be made to

the State Treasurer for deposit into the General Fund of the State.

2-1 1-3 Calculation of Payment Amounts

A. As used in this Compact, Net Win means the total amount wagered in Class ifi

Gaming at a Gaming Facility, on all Gaming Machines less:

1. The amount paid out in prizes, including the cost to the Tribe of noncash

prizes, won on Gaming Machines;

2. The amount paid to the State by the Tribe under the provisions of Section

4(E)(5) of this Compact; and

3. The sum of two hundred seventy-five thousand dollars ($275,000) per year

as an amount representing tribal regulatory costs, which amount shall increase by three percent (3%)

each year beginning on the first day of January occurring after the Compact has been in effect for at

least twelve months.

B. The amount payable by the Tribe to the State shall be an amount equal to eight

percent (8%) of the Net Win, except that if the total Net Win in a calendar year is less than twelve

million dollars ($12,000,000), the amount payable by the Tribe shall be an amount equal to three

percent (3%) of the first four million dollars ($4,000,000) of Net Win, and eight percent (8%) of the

rest of the Net Win for the year.

C. Payments due pursuant to these terms shall be paid quarterly, no later than twenty-five

(25) days after the last day of each calendar quarter, and shall be based upon the Net Win during the

preceding quarter. If the Tribe reasonably believes that the total Net Win for the calendar year will

be less than twelve million dollars ($12,000,000), it may base its payment on the first four million

dollars ($4,000,000) on the lower rate as set forth in paragraph (C)(2) of this Section, but if the Net

Win exceeds twelve million dollars ($12,000,000) during the calendar year, the Tribe shall pay the

additional amount due on the first four million dollars ($4,000,000), plus interest as provided in this

paragraph, with its next quarterly payment. In the event the Tribe makes its quarterly payments

based on the rate of eight percent (8%), and its Net Win for the calendar year totals less than twelve

million dollars ($12,000,000), the Tribe may deduct the overpayment from its payment for the final

quarter of the year. Any payment or any portion thereof that is not made within ten (10) days of the

due date shall accrue interest at the rate often percent (10%) per annum, from the original due date

until paid. The Tribe shall accompany any payment to the State with a detailed breakdown of the

particular obligation to which such payment applies, and the basis for the calculation of such

payment.

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2-1 1-4 Limitations

A. The Tribes obligation to make the payments provided for in Paragraphs B and C of

this Section shall apply and continue only so long as this Compact remains in effect; and provided

that obligation shall terminate altogether in the event the State:

1. Passes, amends, or repeals any law, or takes any other action, that would

directly or indirectly attempt to restrict, or has the effect of restricting, the scope or extent of Indian

gaming;

2. Licenses, permits or otherwise allows any person or entity other than licensed

horse racetracks and veterans and fraternal organizations as described in 1997 Laws, ch. 190, §5(FF)

to operate Gaming Machines;

3. Licenses, permits or otherwise allows any non-Indian person or entity to

engage in any other form of Class III gaming other than a state-sponsored lottery, parimutuel betting

on horse racing and bicycle racing, operation of Gaming Machines, and limited fundraising by

non-profit organizations.

B. The parties agree that the States allowance of the following forms of Class ifi

Gaming, subject to the limitations expressly set forth herein, shall not be considered an expansion

of nontribal Class ifi gaming for purposes of this agreement, and shall have no effect on the Tribes

obligation to make the payments provided for in Paragraphs B and C of this Section:

1. The operation of a State lottery;

2. The operation of Gaming Machines by any fraternal or veterans organization

as described in 1997 Laws ch. 190, § 5(FF) but only for the benefit of such organizations members;

3. Limited fundraising activities conducted by nonprofit tax exempt

organizations;

4 The conduct by licensed horse racetracks and bicycle tracks of parimutuel

betting on races at such tracks, and on simulcast races at other tracks elsewhere in the country; and

5. The operation by a licensed horse racetrack of Gaming Machines on days on

which live or simulcast horse racing occurs.

2-1 1-5 Third-Party Beneficiaries The provisions of this Section are not intended to create any

third-party beneficiaries and are entered into solely for the benefit of the Tribe and the State.

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2-12 DURATION~ TERMINATION FOR NON-PAYMENT

2-12-1 This Compact shall have a term commencing on the date on which it goes into full force and

effect as provided in Section 9, and ending at midnight on June 30, 2015.

2-12-2 Notwithstanding the provisions of Paragraph A of this Section, if the Tribe fails to comply

with any of its payment obligations to the State under Sections 4(E)(5), 9(B) or 11 of this Compact,

and persists in such failure for a period of thirty (30) days after receipt, by certified mail, of a Notice

of Noncompliance sent by the State Gaming Representative, which Notice shall specify the amount

due and the provision of the Compact under which such payment is required, this Compact, and the

conduct of Class Ill Gaming by the Tribe hereunder, shall terminate automatically as of the end of

the thirty (30)-day period, unless within such thirty (30)-day period the Tribe shall have invoked

arbitration on a matter of fact as provided in Section 7(A)(2) of this Compact, and simultaneously

shall have placed into escrow, in an institution that is unaffihiated with either the Tribe or the State,

a sum of money equal to the amount claimed due by the State. In the event the Tribe invokes

arbitration, this Compact and the Tribes right to conduct Class III gaming shall terminate

automatically at the end of the thirtieth (30) day after the entry of a final, nonappealable decision

by the arbitrators or by a court having jurisdiction of the dispute, unless the Tribe has paid the full

amount determined by the arbitrators or by such court to be due the State, if any. The Tribe shall not

be entitled to avoid any pre-existing contractual obligations accruing to third parties under this

Compact solely by virtue of the termination of the Compact.

2-13 NOTICE TO PARTIES

2-13-1 Unless otherwise indicated, all notices, payments, requests, reports, information or demand

that any party hereto may desire or may be required to give to the other party hereto, shall be in

writing and shall be personally delivered or sent by first-class mail sent to the other party at the

address provided in writing by the other party. Every notice, payment, request, report, information

or demand so given shall be deemed effective upon receipt or, if mailed, upon receipt or the

expiration of the third day following the day of mailing, whichever occurs first, except that any

notice of change of address shall be effective only upon receipt by the party to whom said notice is

addressed.

2-14 ENTIRE AGREEMENT

2-14-1 This Compact is the entire agreement between the parties and supersedes all prior

agreements, whether written or oral, with respect to the subject matter hereof. Neither this Compact

nor any provision herein may be changed, waived, discharged or terminated orally, but only by an

instrument, in writing, signed by the Tribe and the State and approved by the Secretary of the

Interior. This Compact shall not be amended without the express approval ofthe Tribe, the Governor

of the State and the State Legislature, as provided in the Compact Negotiation Act.

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2-15 FILING OF COMPACT WITH STATE RECORDS CENTER

2-15-1 Upon the effective date of this Compact, a copy shall be filed by the Governor with the New

Mexico Records Center. Any subsequent amendment or modification of this Compact shall be filed

with the New Mexico Records Center.

2-16 COUNTERPARTS

2-16-1 This Compact may be executed by the parties in any number of separate counterparts with

the same effect as if the signatures were upon the same instrument. All such counterparts shall

together constitute one and the same document.

2-17 SEVERABILITY

2-17-1 Should any provision of this Compact be found to be invalid or unenforceable by any court,

such determination shall have no effect upon the validity or enforceability of any other portion of

this Compact, and all such other portions shall continue in full force and effect, except that this

provision shall not apply to Sections 2-4,2-5,2-6 ,2-9 and 2-1 1 hereof, or to any portions thereof~,

which the parties agree are nonseverable.

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