FILE No.686 12/20 00 11:29 ID:RINCON INDIPN R~S. F~X:76D 749 ~9Ci P~GE 1 2

~7~C 2 1

Rincon Ir~dian Reservation SOX ~E. VA~.LEY ~ENTE~.CAL.I~C~NI,. ~6 ~ j 7i~.~9~I

RESOLUTION NO.2000- Jo7

A RESOLUTION OF THE RINCON TRIBAL BUSINESS COMMITTEE APPROVING TH~

RINCON TRIBAL GAMING ORD~NAUCE

WHEREAS. the RInc~on Band of Luiseno MissiOn Indians of the Rincon ReservatIon.

Calftornia (Rincon)~is a federaUy recognized Indian tribe organized pursuant to

Articles of Associaf!on adopted February 14. 1960 and approved by the

Commissioner of Indian Affairs on March 15. 1960: and

WHEREAS. the Rincon Tribal Business Committee is empowered pursuant to

Section 6. subsection c of the Articles of Association to enact ordinances that

govern activities within the Tribes re allan; and

WHEREAS, the Rinc~on Tribal Business Committee approved the Tribal-State

Compact between Rincon and the State of California by Reso!uflon 99-33,

dated September12. 999; and

WHEREAS, The Rincon General Council at its September 12, 1999 rneetng

directed that the compact be implemented by the Rincon Tribal Business

Committee; and

WhEREAS. the Rincbn Tribal business Committee has reviewed a new Rincori

Tribal Gaming Ordinance, which incorporates changes desired by the National

Indian Gaming Commission (N!GC}.

NOW, THEREFORE 3E IT RESOLVED that the Rincon Tubal Business Committee at a

duly convened meeting with a quorum present hereby approves the attached

Rincori Tribal~amirg Ordinance, which Ordinance shall supersede the existing

Rincon Gaming Ordinance No. 94-O1A, and upon approval by the NIGC shall

govern the conduct of Class II ond Class 111 gaming conducted on tribal lands

within the Rincon lndan Reservation: and

BE IT FINALLY RESOLVED that the Rincon ThbcI Business Committee hereby

COfl~OOl~j ,y~ Hdd ~I6 Ci.9 Ci)C~2~ ~I:LT OO,O~/~t
FILE No.686 1220 00 11;29~ ID:RINCON 1NDI~ RES. FPX:760 749 S~C1 P~GE 2 2

authorizes and dir~cts the TtlbaI Chairman to sign the Rincon Tribal Gaming

Ordinance and su~mif it to the r~IGC for approval.

CERTIFICATION

This is to certify that the above Resolution was adopted at a regularly scheduled

meeting of the ~iricon Tribal Council on Dc~~ ii 2000 with a vote of ~

ayes~ays ~ absent, and o ~b~ioining.

John D. Currier, Chairman

Gilbert Parc,d~, Vice Chairman Bo Maetti, Committee Member

Vernon Wright CommitteeJ~ember Sher~l Gr~n. Committee Member

Atte~~,

Lj~cebedo. Acting Secretary

a

C(~O/CUO~j .~ Hdd ~t6 C1.9 ~OC~2. ~t:LL t)O(1t.~t
j T

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DEC 2 ~

RINCON SAN LUISENO BAND OF

MISSION INDIANS

TRIBAL GAMING ORDINANCE

ORDINANCE #
TABLE OF CONTENTS

DEFINITIONS

Applicant

Application

Business Committee

Chairman

Class II Gaming

Class III Gaming

Compact

Commission

Commissioner

Fiscal Year

Gaming

Gaming Device

Gaming Establishment

Gaming Operation

Gross Revenue

Key Employee

License

Licensee

Management Contract

Management Entity or Controlling

Management Fee

Net Revenue

NIGC

Operating Expense

Ordinance

Patron

Person

Primary Management Officials .

Reservation

Rules

Secretary

Supplier of Gaming Goods and Services

Tribe and Tribal

I

1

1

I

1

1

1

1

1

1

1

1

2

2

2

2

3

3

4

4

4

4

4

4

4

5

5

5

5

5

5

5

5

5

PURPOSE,

Section 1.01

Section 1.02

Section 1.03

Section 1.04

PUBLIC POLICY, APPLICABILITY AND

Short Title

Purpose

Public Policy

Class II Gaming Authorized

AUTHORIZATIONS

Shareholder

CHAPTER I

–
Class III Gaming Authorized

Location of Gaming

Ownership of Gaming

Use of Gaming Revenue

Unauthorized Gaming

Conduct of Games

Applicability of Ordinance

7

7

7

7

7

7

8

ESTABLISHMENT, ADMINISTRATION AND POWERS OF COMMISSION

CHAPTER III

Establishment of Commission

Independence of Commission

Licensing of Commissioners

Restrictions on Commissioners

No Financial Interest in Gaming

Compensation of Commissioners

Commission Meetings

Commission Offices

Quorum

Organization of Commission

Commission Record-Keeping

Reports

Budget

Powers

Promulgation of Gaming Rules

EXECUTIVE

Section 3.01

Section 3.02

Section 3.03

Section 3.04

DIRECTOR

Qualifications of Executive Director; Salary

Authority of Executive Director

Files and Records to be Maintained by the Executive

Confidentiality of Information

Removal of Executive Director from Office

15

15

15

Director;

16

17

CHAPTER IV

18

18

18

18

1.05

1.06

1.07

1.08

1.09

1.10

1.11

Section

Section

Section

Section

Section

Section

Section

CHAPTER II

Section 2.01 9

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

2.02

2.03

2.04

2.05

2.06

2.07

2.08

2.09

2.10

2.11

2.12

2.13

2.14

2.15

2.16

2.17

Qualifications and Appointment of Commissioners 9

10

10

10

11

11

11

11

12

12

12

12

13

13

1.)

Promulgation of Auditing and Internal Control Rules 14

LICENSES, APPLICATIONS AND LICENSE PROCEDURES

Section 4.01 Gaming License Required

Section 4.02 Standard for License

Section 4.03 Application for License

ii
Section 4.04

Section 4.05

Section 4.06

Section 4.07

Section 4.08

Section 4.09

Section 4.10

Section 4.11

Section 4.12

Section 4.13

Section 4.14

CHAPTER V

Required Application Forms 20

Fingerprint Cards Required 21

Withdrawal of Application 21

Continuing Duty to Provide Information 21

Term of License; License Fees; Parameters of License 22

Conditions of License 23

Facility License 23

Certification of Gaming Devices 24

Provisional License 24

Provisional Employment Pending Issuance of License and During

Temporary License Period 24

Assignment or Transfer 25

BACKGROUND INVESTIGATIONS AND LICENSE DECISIONS 26

CHAPTER VI

Required Background Investigations 26

Standards for Background Investigations 26

Information Required for Background Investigations 26

Completion of Investigation 28

Issuance of License 28

Denial of a License Application 28

Cancellation or Suspension 28

Eligibility Determination and Procedures for Forwarding

Applications and Reports for Key Employees and Primary

Management Officials to the National Indian Gaming Commission .

29

Granting a Gaming License 30

License Revocation and Suspension Following Receipt of

Information from NIGC 31

Show Cause Hearing for Manager and Primary Management

Officials 31

RULES

Section

Section

Section

Section

Section

Section

Section

Section

Section

32

32

32

32

33

33

34

34

36

36

Section 5.01

Section

Section

Section

Section

Section

Section

Section

5.02

5.03

5.04

5.05

5.06

5.07

5.08

Section 5.09

Section 5.10

Section 5.11

OF PROCEDURE FOR HEARINGS

6.01 Scope of Rules of Procedure

6.02 Hearings

6.03 Notice of Hearing

6.04 Ex Parte Communications

6.05 Appearance through Counsel

6.06 Discovery Procedures for Enforcement

6.07 Confidential Materials

6.08 Subpoenas

6.09 Hearing Procedures

Hearings

iii
Section

Section

6.10

6.11 Determinations

Evidence .

by the Commission

Section 6.12 Sanctions

CHAPTER VII

APPEALS

Section 7.01

Section 7.02

Section 7.03

Right of Appeal; Appeals Procedures .

Sovereign Immunity of the Commission

Limited Waiver of Sovereign Immunity of the Commission

40

40

40

40

CHAPTER VIII

AUDITING AND INTERNAL CONTROL

Section 8.01 Minimum Procedures for Control of Internal Fiscal Affairs

Section 8.02 Oversight of Internal Fiscal Affairs

Section 8.03 Conduct of Audit

Section 8.04 Prohibition Against Embezzlement

Section 8.05 Non-Compliance

CHAPTER IX

41

41

41

42

42

43

EXCLUSION OR REJECTION OF INDIVIDUALS

Section 9.01 Prohibition Against Certain Individuals

Section 9.02 Right to Exclude or Remove

CHAPTER X

PROHIBITED ACTS

Section 10.01 Prohibited Acts

Section 10.02 Prohibition Against Electronic Aids

CHAPTER XI

NATIONAL INDIAN GAMING COMMISSION AND COMPACT 47

CHAPTER XII

e

44

44

44

45

45

46

GENERAL REQUIREMENTS

Section 12.01 Security and Surveillance .

Section 12.02 Compliance with Other Laws

Section 12.03 Amendments

Section 12.04 Severability

Section 12.05 Words and Terms

48

48

48

48

48

48

iv
Section

Section

Section

Section

Section

Section

Section

Section

Section

Section

12.06

12.07

12.08

12.09

12.10

12.11

12.12

12.13

12.14

12.15.

48

48

49

49

49

49

50

50

50

51

Repeal

Unclaimed Winnings

Patron Disputes

Patron Rights Regarding Disputes

Gaming Commission Action on Patron Disputes

Agent for Service of Process

Consent to Jurisdiction

Comity and Concurrent Jurisdiction

Other Powers of Commission

Enforcement Provisions

V
RINCON SAN LUISENO BAND OF MISSION INDIANS

TRIBAL GAMING ORDINANCE

DEFINITIONS

Definitions Unless a different meaning is set forth below, the terms used in this Ordinance

shall have the same meaning as defined in the Indian Gaming Regulatory Act, Public Law

100-497, 102 Stat. 2467 (Oct. 17, 1988), 25 U.S.C. 2701, et seq (IGRA).

means any person, partnership, corporation, joint venture or other entity applying

for, or requesting renewal of, any License described in or required by this Ordinance.

means a request for the issuance or renewal of a License described in or

required by this Ordinance.

Committee means the Business Committee of the Rincon San Luiseno Band of

Mission Indians.

means the Chairman of the National Indian Gaming Commission.

II Gaming means Class II gaming as defined at 25 U.S.C. §2703(7)(A), and any

regulations promulgated thereunder.

III Gaming means Class III gaming as defined in 25 U.S.C. §2703(8), and any

regulations promulgated thereunder.

means the Tribal State Compact including all renewals, amendments,

appendices, exhibits and other attachments thereto between the Rincon San Luiseno Band of

Mission Indians and the State of California providing for the Conduct of Tribal Class III

Gaming by the Rincon San Luiseno Band of Mission Indians.

means the Rincon Tribal Gaming Commission.

means an individual member of the Rincon Tribal Gaming Commission.

Year means the period beginning at 12:01 am on January 1 of each year and ending

at midnight, December 31 of the same year.

means any Class II Gaming or Class III Gaming activity, either individually or

collectively, whether authorized or unauthorized.

1
Device means any equipment or mechanical, electromechanical or electronic

contrivance, component or machine, used remotely or directly in connection with any Gaming

which affects the result of a wager by determining or predicting the outcome of such game or

the odds of winning or losing such game. The term shall be broadly construed to promote the

purposes of this Ordinance and shall also include any devices, machines, components or

contrivances which do or are capable of affecting, in any way, the playing of any Gaming.

Establishment means any premises where Gaming is operated or conducted on

the Tribes Reservation, and includes all buildings, improvements, appurtenances, equipment

and facilities used or maintained in connection with such gaming.

Operation means any business enterprise owned by the Tribe, the revenues of

which are primarily derived from Gaming or from any Gaming Establishment.

Revenue means the total of all of the following, less the total of all cash paid out as

losses to patrons and any items made deductible as losses by calculation of Gross Revenues:

(a) cash received as winnings;

(b) cash received in payment for credit extended by a licensee to a patron for the

purposes of gaming; and

(c) compensation received for conducting any game in which the licensee is not a

part to a wager.

For the purposes of this definition, cash or the value of noncash prizes awarded to patrons in

a contest or tournament are not losses.

The term does not include:

(a) counterfeit money or tokens,

(b) coins of other countries which are received in gaming devices or gaming

devises;

(c) cash taken in fraudulent acts perpetrated against a licensee for which the

licensee is not reimbursed; or

(d) cash received as entry fees for contests or tournaments in which the patrons

compete for prizes.

Calculation of Gross Revenues. Certain expenses not deductible.

2
(a) In calculating gross revenue, any prizes, premiums, drawings, benefits or

tickets which are redeemable for money or merchandise or other promotional

allowance, except money or tokens paid at face value directly to a patron as the

result of a specific wager and the amount of cash paid to purchase an annuity

to fund winnings must not be deducted as losses from winnings.

(b) In calculating gross revenue from gaming devices, the actual cost to the

licensee of any personal property distributed to a patron as the result of a

legitimate wager may be deducted as a loss, but not travel expenses, food,

refreshments, lodging or services. For the purposes of this section, as the

result of a legitimate wager means that the patron must make a wager prior to

receiving the personal property, regardless of whether the receipt of the

personal property is dependent on the outcome of the wager.

Employee means:

(a) a person 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) approver of credit, or

(10) custodian of gambling terminals or other devices operated by the

management of any Gaming Operation, including persons with access to

cash and accounting records for such devices;

(b) if not otherwise included, any other person whose total cash compensation from

employment in any Gaming Operation exceeds $50,000 per year;

(c) if not otherwise included, the four most highly compensated persons in any

Gaming Operation; or

(d) any other employee of any Gaming Operation that the Commission designates

by its Rules as a Key Employee.

means any authorization granted by the Commission, pursuant to this Ordinance, to

any Person which is required for such Person to perform certain acts or engage in certain

activities. The issuance of a License shall not create a property or liberty interest in such

License for the benefit of the Licensee.

3
means any Person who has been issued a valid and current License pursuant to

the provisions of this Ordinance.

Contract means any contract, agreement or other document, including all

collateral agreements, establishing a relationship between the Tribal government and any

Person, pursuant to which such Person has managerial responsibilities in or for any Gaming

Operation.

Entity or Shareholder means:

(a) any Person having a direct financial interest in any Management Contract,

including those Persons who own five (5) percent or more of any Management

Entitys outstanding capital stock;

(b) when a trust is a party to a Management Contract, any beneficiary or trustee of

such trust;

(c) when a partnership is a party to a Management Contract, any partner, general

or limited, in such partnership;

(d) when a corporation is a party to a Management Contract, any Person who is an

officer or director of such corporation, or who holds five (5) percent or more

of the issued and outstanding capital stock of such corporation either alone or

in combination with a spouse, parent, child or sibling; or

(e) with respect to any non-natural Person with an interest in a trust, partnership or

corporation that has an interest in a Management Contract, all beneficiaries,

trustees, partners, or directors of, and five (5) percent stockholders of, such

non-natural Person.

Fee means any monies paid from Gaming revenue to any Person pursuant to

an NIGC approved contract to operate a Gaming Establishment. Such term shall not include

monies paid for the operating expenses of such Gaming Establishment.

Revenue means Gross Revenue of any Gaming Operation minus amounts paid for, or

paid out as prizes, winnings, and related operating expenses, excluding Management Fees.

NIGC means the National Indian Gaming Commission.

Expense means any expense incurred in the operation of Gaming that is

specifically designated as an Operating Expense in any Management Contract or which by

operation of Generally Accepted Accounting Principles, consistently applied, is so treated.

4
means this Tribal Gaming Ordinance of the Rincon San Luiseno Band of

Mission Indians, as amended from time to time, and any Rules promulgated hereunder.

means any Person who participates in Gaming, or who is physically present on

premises wherein or whereon Gaming is conducted.

means any association, partnership, corporation, firm, trust or other form of

business association or entity, as well as a natural person.

Management Officials means:

(a) the Person(s) having management responsibility over all or any part of any

Gaming Operation;

(b) any Person who has authority;

(i) to hire and fire employees of a Gaming Operation, or

(ii) to establish working policy for a Gaming Operation;

(c) the chief financial officer or other Person who has financial management

responsibility for any Gaming Operation;

(d) any Person who is considered a Controlling Shareholder; or

(e) any Person the Commission designated by Commission Rules as a Primary

Management Official.

means any Indian lands as defined in 25 C.F.R. § 502.12.

Rules means any Rules governing the conduct of games or the control of internal fiscal

affairs of Gaming Operations as may be promulgated by the Commission established pursuant

to this Ordinance.

means the Secretary of the United States Department of the Interior.

of Gaming Goods and Services means any Person who manufactures, sells,

leases, distributes, supplies or makes modifications to, any Gaming Device of the Tribe and

all Persons holding any direct or indirect financial interest in such Gaming Device Supplier.

Tribe means, and shall refer to, the Rincon San Luiseno Band of Mission

Indians.

5
CHAPTER I

PURPOSE, PUBLIC POLICY, APPLICABILITY AND AUTHORIZATIONS

Section 1.01 Short Title This Ordinance shall be known and may be cited as the Rincon

Gaming Ordinance.

Section 1.02 Purpose The Business Committee of the Rincon San Luiseno Band of

Mission Indians, empowered to enact ordinances by the Tribes Articles of Association passed

and approved by the Commissioner of Indian Affairs on March 15, 1960, hereby enacts this

Ordinance in order to regulate all forms of Gaming on the Tribes Reservation.

Section 1.03 Public Policy

(a) All Gaming which is conducted within the Tribes Reservation and which is

otherwise authorized by law shall be regulated and licensed pursuant to the

provisions of this Ordinance.

(b) The Business Committee hereby finds, and declares it to be the public policy of

the Tribe, that:

(1) Regulation of licensed Gaming is important in order that licensed

Gaming is conducted honestly and that Gaming is free from criminal

and corruptive elements.

(2) Public confidence and trust can only be maintained by strict regulation

of all Persons, locations, practices, associations and activities related to

the operation of licensed Gaming Establishments and the manufacture or

distribution of Gaming Devices.

(3) All Management Entities or Controlling Shareholders, Primary

Management Officials, Key Employees, Gaming Establishments and

Suppliers of Gaming Goods and Services must therefore be licensed and

controlled to protect the public health, safety, morals, good order and

general welfare of the Tribe.

(c) To ensure that the environment and the public safety and welfare are

adequately protected, the Gaming Operation shall be constructed and

maintained in compliance with applicable tribal and federal laws, including but

not limited to fire codes, safety codes and building codes. Tribal ordinances

and regulations governing health and safety standards applicable to the Gaming

Operation shall comply with the standards set forth in the Rincon Tribal/State

Compact.

6
(d) The Gaming Operation shall be subject to inspection to ensure compliance,

annually or on such basis as the tribal building inspector, or if none, the Tribal

Gaming Commission, determines is necessary and appropriate.

Section 1.04 Class II Gaming Authorized Class II Gaming as defined in the Indian

Gaming Regulatory Act. P.L. 100-447, 25 U.S.C. § 2703(7)(A) (IGRA), and by regulations

promulgated by the National Indian Gaming Commission at 25 C.F.R. § 502.3 (57 FR 12382-

12393, April 9, 1992), is hereby authorized to be conducted on lands within the Tribes

Reservation; provided, however, that such Class II Gaming shall be conducted only in

accordance with the provisions of this Ordinance, the Rules, and IGRA.

Section 1.05 Class HI Gaming Authorized Class III Gaming as defined in the Indian

Gaming Regulatory Act, P.L. 100-447, 25 U.S.C. § 2703(8) (IGRA), and by regulations

promulgated by the National Indian Gaming Commission at 25 C.F.R. § 502.3 (57 FR 12382-

12393, April 9, 1992), is hereby authorized on lands within the Tribes Reservation; provided,

however, that Class III Gaming shall be conducted only in accordance with the provisions of

this Ordinance, the Rules, and IGRA.

Section 1.06 Location of Gaming The Commission shall ensure that (i) such Gaming as it

authorizes and licenses pursuant to this Ordinance is conducted on lands within the Tribes

Reservation, and (ii) such gaming is not otherwise specifically prohibited by Federal law.

Section 1.07 Ownership of Gaming The Tribe shall have the sole proprietary interest in

any Gaming Operation authorized by this Ordinance. The Tribe shall receive, at a minimum,

not less than seventy (70) percent of the Net Revenues from any Gaming Operation.

Section 1.08 Use of Gaming Revenue

(a) Net Revenues from any form of Gaming authorized under this Ordinance shall

be used only for the following purposes: to fund Tribal government operations

and programs; to provide for the general welfare of the Tribe and its members;

to promote Tribal economic development; to make donations to charitable

organizations; or to help fund operations of local government agencies.

(b) If the Tribe elects to make per capita payments to Tribal members, it shall

authorize such payments only upon approval of a plan submitted to the

Secretary of the Interior under 25 U.S.C. § 2710(b)(3).

Section 1.09 Unauthorized Gaming Any person who commits any act of unauthorized

Gaming on the Reservation or any other Tribal land shall be guilty of a crime and shall be

prosecuted in Tribal Court or any other court of competent jurisdiction.

Section 1.10 Conduct of Games All Gaming shall be conducted by persons duly Licensed

by the Commission. No Person licensed by the Commission shall engage in, conduct or

7
condone any Gaming that is not conducted in accordance with such Rules governing the

conduct of games as may be promulgated by the Commission under this Ordinance.

Section 1.11 Applicability of Ordinance Unless specifically indicated otherwise, all

provisions of this Ordinance shall apply to both Class II Gaming and Class III Gaming

including, but not limited to, all licensing and background investigation procedures.

8
CHAPTER II

ESTABLISHMENT, ADMINISTRATION AND POWERS OF COMMISSION

Section 2.01 Establishment of Commission The Rincon Tribal Gaming Commission

having been previously established under prior Gaming Ordinances shall consist of a

minimum of three (3) members and a maximum of seven (7) members of which a minimum

of thirty percent (3 0%) will be Tribal members.

Section 2.02 Oualifications and Appointment of Commissioners

(a) The Gaming Commission members shall be appointed by the Business

Committee and shall possess and demonstrate as minimum qualifications:

(1) Knowledge and experience in the commercial gaming industry;

(2) Familiarity with the Indian Gaming Regulatory Act of 1988 as

amended;

(3) Knowledge, experience or familiarity with law enforcement; or

(4) Experience in and knowledge of administration and administrative

procedure.

(b) Appointments of the Commission members shall be for a period of four (4)

years, except that, of the terms of the initial members, one for two (2) years,

and two for four (4) years, respectively, which shall result in staggered

appointments and provide continuity within the Commission. The Commission

members may be re-appointed for one or more successive terms. The

Commission shall select annually, from the membership, a Commission

Chairman. New Commissioners will serve a twelve (12) month probationary

period provided such probationary period will not affect their right to benefits

under the tribal employee personnel policies then in effect.

(c) No person shall be appointed to the Gaming Commission unless the Business

Committee is satisfied that:

(1) He or she is a person of good character, honesty and integrity, whose

prior activities, criminal record, if any, reputation, habits and

associations do not pose a threat to the public interest of the Tribe, its

members or to the effective regulation of gaming, or create or enhance

the dangers of unsuitable, unfair, or illegal practices and methods and

activities in the conducting of gaming or the carrying on of the business

and financial arrangements incidental thereto; and

9
(2) He or she meets or exceeds the licensing standards set forth in Chapters

IV and V of this Ordinance; and

(3) He or she has no interest in any private gaming activity on Rincon

Indian Lands or any activity which may have interests in conflict with

the Tribal Gaming Operation.

(d) The Gaming Commission members may be removed for good cause, after

written notice and opportunity to be heard by a majority vote of the Business

Committee. Good cause shall exist when any condition occurs or is discovered

which would exclude a person from appointment. Vacancies on the

Commission shall be filled within thirty (30) days by nomination and majority

vote of the Business Committee.

Section 2.03 Independence of Commission In all matters within its purview and

responsibilities, the Commission shall be and shall act independently and autonomously from

the Business Committee.

Section 2.04 Licensing of Commissioners Nominees for the position of Commissioner

must meet the requirements of Chapters 4 and 5 of this Ordinance. A Commissioner shall

complete a License Application and shall be subject to the same background investigation as a

Key Employee under this Ordinance. Such background investigation shall be performed at

the direction of the Business Committee by a duly appointed agent of the Business

Committee. Upon completion of the background investigation, the Business Committee shall,

by majority vote, either (i) issue a License, or (ii) notice the Commissioner for a hearing

before the Business Committee. All investigations and hearings under this Section shall be

conducted as provided in Chapter 6 of this Ordinance, except that all hearings shall be

conducted by and before the Business Committee.

(a) Failure to Meet License Requirements or License Violations If the

Business Committee has reason to believe that a Licensed Commissioner fails

at any time to meet the License requirements under this Ordinance or that the

Commissioner has violated this Ordinance, the Rules, the Compact, or the

IGRA and regulations promulgated thereunder or any other applicable law, the

Tribal Business Committee shall direct an investigation to be conducted and

may notice the Commissioner for a hearing before the Business Committee.

All investigations and hearings under this Section shall be conducted as

provided in Chapters 5 and 6 of this Ordinance and a Commissioner shall have

all of the rights and obligations given to a Licensee or Applicant therein, except

that all hearings shall be conducted by and before the Business Committee.

Section 2.05 Restrictions on Commissioners No person shall serve on the Commission if

that:

10
(a) persons other employment or responsibilities conflict or could potentially

conflict with the duties and responsibilities of a member of the Commission;

(b) person is an employee of the Gaming Operation or the persons other

employment or responsibilities create an impression or appearance of

impropriety in the fulfillment of the duties and responsibilities of a member of

the Commission; or

(c) person is a:

(1) Member or officer of the Business Committee; or

(2) Judge in any Tribal Court.

Section 2.06 No Financial Interest in Gaming No Commissioner shall have any direct or

indirect financial interest in any Gaming Operation. For purposes of this section, indirect

financial interest shall not include ownership of any mutual funds which holds stock in a

publicly traded company but shall include direct ownership of such stock. No Commissioner

may accept gratuities or any other thing of value from any Licensee or Applicant.

Commissioners may not gamble in any Tribal Gaming Establishment.

Section 2.07 Compensation of Commissioners Commissioners shall be compensated at a

rate to be established annually by the Business Committee. Commissioners shall be

reimbursed for actual expenses incurred on Commission business, including necessary travel

expenses.

Section 2.08 Corn mission Meetings

The Commission shall meet at least once a month at the Commissions main office or at any

other designated meeting place.

Special meetings shall be convened by the Commission Chair as necessary to carry out the

official duties of the Commission. Notice of each special meeting shall be given by the

Commission Chair by telephone or mail to each Commissioner. Notice shall be received at

least 24 hours in advance of such meeting and shall include the date, time and place of the

proposed meeting.

Section 2.09 Commission Offices The Commission shall maintain an administrative office.

Such office shall serve as the Commissions main business office and shall be the site at

which Commission records and documents are maintained and stored on a permanent basis.

No individual except a Commissioner or other authorized employee or agent of the

Commission may possess a key to or may enter any Commission office without the

permission of the Commission. No person may access such records except a Commissioner, a

person duly authorized by the Commission or an attorney for the Commission.

11
Section 2.10 Quorum A quorum of the Commission shall consist of 51% Commissioners.

All decisions shall be made by a majority vote of a quorum of the Commission, unless

indicated otherwise in this Ordinance.

Section 2.11 Organization of Commission The Commission may organize itself into any

functional division it deems necessary, and may alter such plan of organization as it deems

expedient.

Section 2.12 Commission Record-Keeping The Commission shall maintain complete

records regarding the following:

(a) Applications, financial statements, fingerprints, contracts, Licenses, suspension

and cancellation notices and correspondences of all Applicants, including

Management Entities or Controlling Shareholders, Key Employees, Primary

Management Officials, Gaming Establishments and Suppliers of Gaming Goods

and Services;

(b) Commission Licenses;

(c) Meeting minutes from all Commission meetings;

(d) Compact compliance;

(e) Reports relating to customer disputes, complaints or other issues that affect the

integrity of the Gaming Operation;

(f) Commission budget and expenditures;

(g) Business Committee communications and correspondences;

(h) Gaming Device list pursuant to Section 4.11 of this Ordinance;

(i) Copies of Commissioners signed Conflict of Interest Codes; and

(j) Any other records or documents the Commission deems necessary or

appropriate.

Section 2.13 Reports The Commission shall provide reports to the Business Committee as

the Business Committee deems necessary. Such Reports shall contain but not be limited to

the following information:

(a) number and types of Licenses issued during the previous quarter;

(b) infbrmation regarding License denials, suspensions or revocations;

12
(c) report of any events of non-compliance, breach or violations of this Ordinance,

the Rules, the Compact, IGRA, License or any other law or regulation;

provided, however, that these reports are not the subject of or relating to a

pending investigation being conducted by the Commission, or hearing before

the Commission;

(d) a report of Commission expenditures for the prior quarter;

(e) a summary of any Commission travel and training;

(g) all other information which the Commission deems relevant in order to keep

the Business Committee informed and current on all Gaming regulatory

matters.

Section 2.14 Budget The Commission shall establish a budget for its operations and submit

such budget to the Business Committee for final approval.. It shall acquire such furnishings,

equipment, supplies, stationery, books and other items as it deems necessary or desirable to

carry out its functions, and incur such other expenses, within the limit of funds available to it.

as it deems necessary.

Section 2.15 Powers The Commission shall exercise all powers necessary to effectuate the

purposes of this Ordinance and all other powers provided for in this Ordinance. The

Commission shall have the power to promulgate Rules pursuant to this Ordinance, for the

operation of games and the control of internal fiscal affairs of Gaming Operations and the

conduct of all business properly brought before the Commission. In all decisions, the

Commission shall act to promote and ensure the integrity, security, honesty and fairness of the

operation and administration of all Gaming. In accordance with this Ordinance, the

Commission shall have the power and authority to deny any application for License, to limit,

cancel, revoke, terminate, condition, modify, suspend, or restrict any License, to make

findings of suitability, and to impose fines or sanctions for any cause deemed reasonable by

the Commission upon any Licensee. The Commission shall conduct, or cause to be

conducted, background investigations on all Applicants and Licensees. The Commission shall

hold administrative licensing hearings under this Ordinance. Within the limits of its

budget, the Commission shall employ and fix the salaries of, or contract for the services of,

such professional, technical and operational personnel and consultants as the execution of the

Commissions duties may require.

Section 2.16 Promulgation of Gaming Rules The Commission may promulgate Rules

governing the conduct of all games authorized by the Compact or IGRA, including Rules

governing the equipment, (chips, cards, tiles, etc.), used in such games. The Rules of each

authorized game offered at any duly licensed Gaming Establishment shall be posted in a

conspicuous location in such Gaming Establishment.

13
Section 2.17 Promulgation of Auditing and Internal Control Rules The Commission

may promulgate Rules governing the control of internal fiscal affairs of Gaming Operations as

provided in Chapter 8 of this Ordinance.

14
CHAPTER III

EXECUTIVE DIRECTOR

Section 3.01 Qualifications of Executive Director; Salary

(a) The position of Executive Director of the Commission is hereby created. The

Commission shall appoint the Executive Director, and the Executive Director

shall serve at the will and pleasure of the Commission.

(b) No member of the Business Committee, no person holding any elective office,

nor any officer or official of any political party is eligible for the appointment

of Executive Director.

(c) The Executive Director must have at least five (5) years of responsible

administrative experience in public or business administration and possess broad

management skills and have as a minimum a degree in Business

Administration, Law, Accounting, Criminal Justice or like degree from an

accredited college or university.

(d) The Executive Director shall devote his or her entire time and attention to the

duties imposed under this Ordinance and the business of the Commission and

shall not pursue any other business or occupation or hold any other office of

profit unless approved by the Business Committee.

(e) The Executive Director shall not be pecuniarily interested in any businesses or

company holding a license under this Ordinance or doing business with any

person licensed under this Ordinance.

(f) The Executive Director is entitled to an annual salary recommended by the

Commission and approved by the Business Committee.

Section 3.02 Authority of Executive Director

(a) The Executive Director shall furnish to the Commission such administrative and

clerical services and such furnishings, equipment, supplies, stationery, books

and all other things that the Commission may deem necessary or desirable in

carrying out its functions.

(b) The Executive Director shall employ division directors that possess at least two

(2) years of training and experience in the fields of accounting, investigation,

law enforcement, law or gaming.

15
(c) The Executive Director in pursuit of the attainment of the objectives and the

purposes of this Ordinance may:

(1) Direct and supervise all administrative actions of the Commission.

(2) Sue on behalf of the Commission.

(3) Make, execute and effectuate any and all agreements or contracts,

including contracts for the purchase of good and services as are

necessary.

(4) Employ the services of such person as is considered necessary for the

purposes of consultation or investigation and fix the salaries of or

contract for the services of such legal, professional, technical and

operational personnel and consultants within the annual budget as

approved by the Commission.

(5) Perform such other duties which he or she may deem necessary to

effectuate the purposes of this Chapter or from time to time assigned by

the Commission.

Section 3.03 Files and Records to be Maintained by the Executive Director;

Confidentiality of Information

(a) The Executive Director shall maintain a file of all applications for licenses

under this Ordinance, together with a record of all actions taken with respect to

those applications.

(b) The Commission and Executive Director may maintain such other files or

records as they deem desirable.

(c) All information and data:

(1) Required by the Commission or the Executive Director to be furnished

to them under this Ordinance or which may otherwise be obtained

relative to the finances, earnings or revenue of any applicant or licensee;

(2) Pertaining to an applicants criminal record, antecedents and background

which have been furnished to or obtained by the Commission or the

Executive Director from any source;

(3) Provided to the members of the Commission or the Executive Director

or his employees by a governmental agency or an informer or on the

16
assurances that the information will be held in confidence and treated as

confidential; or

(4) Obtained by the Executive Director or the Commission from a supplier

relating to the manufacturing of gaming devices or gaming goods;

(5) The signed Conflict of Interest Codes of the Executive Director, all

Commissioners and employees;

are confidential and may be revealed in whole or in part only in the course of the

necessary administration of this Ordinance or upon the lawful order of a court of

competent jurisdiction.

Section 3.04 Removal of Executive Director from Office

The Executive Director being hired by the Commission may be removed from office by the

Commission upon a majority vote of the Commission.

17
CHAPTER IV

LICENSES, APPLICATIONS AND LICENSE PROCEDURES

Section 4.01 Gaming License Required The Commission is hereby authorized to issue all

Licenses for the conduct of all Gaming authorized under this Ordinance or any other License

related to Gaming which the Commission may, by Rule require.

(a) Persons The following Persons must obtain Licenses as a precondition to

employment in or management of any Gaming Operation:

(I) any Management Entity or Controlling Shareholder. Any Person

deemed a Controlling Shareholder must comply with the same licensing

requirements as if such Person were a Primary Management Official;

however, if any Controlling Shareholder is a non-natural person, such

Controlling Shareholder shall be subject to Management Entity licensing

procedures;

(2) all Primary Management Officials;

(3) all Key Employees;

(4) Suppliers of Gaming Goods and Services. Any Person who is a

Supplier of Gaming Goods and Services must comply with the same

licensing requirements as if such Person were a Primary Management

Official; however, if any Supplier is a non-natural person, such

Supplier shall be subject to Management Entity licensing procedures;

and

(5) any other employee or class of employees as determined by Commission

Rules.

(b) Gaming Establishments Each place, facility, or location where Gaming is

conducted must obtain a separate facility License from the Commission.

Section 4.02 Standard for License Licenses issued hereunder shall be issued according to

requirements at least as stringent as those set forth at 25 C.F.R parts 556 and 558, and any

amendments thereto, and also according to requirements at least as stringent as those set forth

in the Compact.

Section 4.03 Application for License

(a) No License shall be issued under this Ordinance except upon a sworn

Application filed with the Commission, in such form as may be prescribed by

18
the Commission, containing a full and complete showing, at a minimum, of the

following:

(1) satisfactory proof that the Applicant is of good character and reputation,

and is financially responsible;

(2) if applicable, a complete description of the premises at which Gaming

will be conducted;

(3) agreement by the Applicant to abide by all conditions of the License,

this Ordinance, the Rules, the Compact and IGRA;

(4) a separately sworn statement that the Applicant has never been

convicted of, or entered a plea of guilty or no contest to, any of the

following criminal offenses:

(i) any felony;

(ii) any gaming-related offense;

(iii) fraud, misrepresentation or any other crimes of moral turpitude

in any context; or

(iv) a violation of any provision of this Ordinance, the Rules, or any

other ordinance or rules of the Tribe or any state agency

regulating or prohibiting gaming; and

(5) the Applicants fulfillment of all applicable requirements of IGRA, all

provisions of this Ordinance, including, but not limited to, those in

Chapter 5, and the Compact.

(b) No License shall be issued to any Applicant who is determined by the

Commission to be a Person whose prior activities, criminal record, reputation,

habits or associations pose a threat to the public interest or to the effective

regulation and control of Gaming, or create or enhance the dangers of

unsuitable, unfair, or illegal practices, methods, or activities in the operation of

Gaming or the carrying on of the business and financial arrangements incidental

thereto.

(c) The issuance of Licenses shall also be subject to the provisions of Chapter 5 of

this Ordinance regarding background investigations.

19
(d) The following notices shall be placed on the application form for a Key

Employee, Management Entity, Primary Management Official or Supplier of

Gaming Goods and Services before such form is completed by an Applicant:

(I) In compliance with the Privacy Act of 1974, the following information

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

by Chapter 25 U.S.C. 2701 et seq. The purpose of the requested

information is to determine the eligibility of individuals to be employed

in a gaming operation. The information will be used by the

Commission, the State of California, andlor the 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 a tribe or the National Indian Gaming Commission in

connection with the hiring or firing of an employee, the issuance or

revocation of a gaming License, or investigations of activities while

associated with a tribe or a gaming operation. Failure to consent to the

disclosures indicated in this notice will result in a tribes being unable to

hire you in a Primary Management Official or Key Employee position.

(2) The disclosure of your Social Security Number (SSN) is voluntary.

However, failure to supply a SSN may result in errors in processing

your application.

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

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

be punished by fine or imprisonment. (U.S. Code, title 18, Section

1001).

Section 4.04 Required Application Forms

(a) Each individual applying for a License, whether as a Primary Management

Official or Key Employee, and any person who is subject to a background

investigation in connection with an entity application for a License, shall be

required to complete the following forms:

(1) Application for Gaming License by Individual, if applicable;

(2) Personal History Record, with attached Personal Financial

Questionnaire, including Statement of Assets and Statement of

Liabilities;

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(3) Two Complete Fingerprint Cards; and

(4) Request to Release Information -

including credit reports

(b) Each individual in subsection (a) of this Section applying for a License renewal

shall supplement the Personal History Record and shall also be required to

complete the following forms:

(1) Application for Gaming License, if applicable; and

(2) Request to Release Information.

(c) Each entity, including a Management Entity and Supplier of Gaming Goods

and Services, applying for a License must complete the following forms:

(1) Application for Gaming License; and

(2) Request to Release information.

(d) The Commission may request any additional forms or information from an

Applicant as it deems necessary or appropriate.

(e) Pursuant to the Compact the Commission shall create an individual file for each

applicant which includes the Applicants Personal History Record and all

background information compiled by the Commission.

Section 4.05 Fingerprint Cards Required All Applicants for a License are required to

submit fingerprint cards. The Tribal Gaming Commission is hereby identified as the

enforcement agency to take fingerprints. Pursuant to 25 C.F.R. §522.2(h), the Commission

shall forward an Applicants fingerprint cards to the NIGC to be processed by the Federal

Bureau of Investigation National Criminal Information Center pursuant to section 6.5.6 of the

California Tribal Gaming Compact. The Commission may submit an Applicants fingerprint

card to any additional tribal, local or state criminal history check system or center as the

Commission deems necessary or appropriate. Reports obtained from such fingerprint

processing shall be incorporated into the Applicants personnel file.

Section 4.06 Withdrawal of Application An Application may not be withdrawn without

the permission of the Commission. An Applicant may request to withdraw an Application by

submitting to the Commission a written request for withdrawal. The Commission retains the

right, in its sole discretion, to grant or deny a request for withdrawal.

Section 4.07 Continuing Duty to Provide Information Applicants and Licensees shall

have a continuing duty to provide any materials, assistance or other information required by

the Commission, and to fully cooperate in any investigation conducted by or on behalf of the

2].
Commission. If any information provided on the Application changes or becomes inaccurate

in any way, the Applicant or Licensee shall promptly notify the Commission of such changes

or inaccuracies.

Section 4.08 Term of License; License Fees; Parameters of License

(a) Licenses, except Provisional Licenses (see §4.12 Provisional License), shall be

for a term of one year, and shall expire on the armiversary of the effective date

of such License(s).

(b) In order for the Tribe to recover the costs of complying with federal, Tribal,

and state regulatory processes applicable to Class II Gaming and Class III

Gaming, annual License fees shall be imposed:

(1) as determined by the Gaming Commission from time to time;

(2) on any Person and/or Entity required to obtain a License pursuant to

subsection 4.0 1(a) of this Section, in accordance with a fee schedule to

be established by the Commission; and

(3) in addition to the License fees imposed pursuant to subsection (b)(l)

and (2) of this Section, the Commission may impose such fees on

Licensees as are reasonably related to costs of enforcement, including

investigations and proceedings before the Commission, and which will

in the aggregate be sufficient to enable the Tribe and the Commission to

recover its reasonable costs of enforcing this Ordinance. Such costs

may be estimated by the Commission and imposed prior to a final

Commission action regarding a particular Licensee or Applicant.

(c) Violations of any provision of this Ordinance or the Rules, or relevant License

provision(s), by a Licensee shall be deemed contrary to the public health,

safety, morals, good order and general welfare of the Tribe and the inhabitants

of the Reservation, and shall be deemed grounds for refusing to grant or renew

a License, suspension or revocation of a License. Acceptance of a License, or

renewal thereof by a Licensee, constitutes an agreement on the part of the

Licensee to be bound by the provisions of this Ordinance and the Rules as they

are now, or as they may hereafter be amended or restated, and to cooperate

fully with the Commission. It is the responsibility of the Licensee to remain

informed of the contents of this Ordinance, the Rules and all other applicable

regulations, amendments, provisions, and conditions, and ignorance thereof will

not excuse violations. A license issued hereunder is a privilege license and no

right shall attach thereto.

22
(d) All licenses issued remain the property of the Tribal Gaming Commission and

must be surrendered to the Tribal Gaming Commission upon termination of

employment or contract.

Section 4.09 Conditions of License All Licensees shall comply with such reasonable

conditions as may be fixed by the Commission, including but not limited to the following

conditions:

(a) Facility Licensees-

(1) the Licensee shall at all times maintain an orderly, clean and neat

Gaming Establishment, both inside and outside the premises of the

Gaming Establishment;

(2) the Gaming Establishment shall be subject to patrol by the Tribes

security and law enforcement persotmel and, when authorized, local and

state law enforcement, and the Licensee shall cooperate at all times with

such security and law enforcement officials;

(3) the Gaming Establishment shall be open to inspection by authorized

federal, state, and Tribal officials at all times during business hours;

(4) there shall be no discrimination in any Gaming Operations by reason of

race, color, sex or creed; provided, however, that nothing herein shall

prevent the Licensee from granting preferences to Native Americans as

permitted by law; and

(b) Persons, Management Entities and Suppliers of Gaming Goods and Services

licensed by the Commission shall comply with such conditions of the License

as the Commission, in its reasonable discretion, may require.

Section 4.10 Facility License The Commission may issue a two year Facility License to a

Gaming Establishment, if the Gaming Establishment:

(a) is a sound physical structure with adequate and safe plumbing, electrical,

heating, cooling and ventilation systems in place and operational;

(b) has been inspected and approved for safety by a building and fire inspector

designated by the Commission;

(c) is adequate in all respects to accommodate the Gaming intended to be carried

on within the structure;

23
(d) is equipped with security and surveillance equipment meeting or exceeding

provisions set forth in regulations established by the Commission;

(e) meets all requirements of applicable federal, tribal and state law; arid

(1) has paid all applicable License fees and costs.

Section 4.11 Certification of Gaming Devices All Gaming Devices purchased, leased or

otherwise acquired by the Tribe must, pursuant to Section 6 of the Compact, meet the

technical equipment standards set forth therein. The Commission shall maintain a complete

list of all Gaming Devices (whether or not such devices are in use) located at any Gaming

Establishment.

Section 4.12 Provisional License The Commission may issue Provisional Licenses pending

the satisfactory completion of all background investigations and other requirements of this

Ordinance, IGRA, or the Compact, and, if applicable, pending expiration of the thirty (30)

day NIGC review period provided for at 25 C.F.R part 558. In no event shall a Provisional

License be valid for greater than ninety (90) days, subject to the issuance of another

Provisional license if such background investigations are not completed so long as no

information to date has been received which would otherwise disqualify the applicant for a

License.

Section 4.13 Provisional Employment Pending Issuance of License and During

Temporary License Period As provided in Section 4.12, Primary Management Officials

and Key Employees may be employed in Gaming Operations prior to the issuance of a

License hereunder and during the period that a License shall be effective on a provisional

basis, but such employment shall be provisional only and subject to the requirements of this

Section. Employment may begin prior to issuance of a License only if the Commission has

made a preliminary finding of eligibility for employment in Gaming Operations, which shall

require a preliminary determination that the Primary Management Official or Key Employee

in question is not a person whose prior activities, criminal record or reputation, habits or

associations pose a threat to the public interest or to the effective regulation and control of

Gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods,

or activities in the operation of Gaming or the carrying on of the business and financial

arrangements incidental thereto. Provisional employment shall be terminated upon the

occurrence of any of the following:

(a) denial of a relevant License by the Commission;

(b) unsatisfactory completion of a background investigation or NIGC review

resulting in nullification of a provisional License, as described in Section 5.10;

or

24
(c) to the extent required under 25 C.F.R part 558 and, at the end of thirty (30)

days after the starting date of provisional employment, if at the end of such

period no License has been issued hereunder or if a License issued hereunder

remains effective only on a provisional basis, as provided in Section 4.12;

provided, however, that provisional employees terminated for the reason

described in this subsection shall be qualified for reemployment upon the

satisfactory completion of background investigations and NIGC reviews.

Section 4.14 Assignment or Transfer No License issued under this Ordinance may be

assigned or transferred unless the proposed assignee or transferee would independently be

qualified to hold the License proposed to be assigned or transferred ~ the Commission

approves of such assignment or transfer.

25
CHAPTER V

BACKGROUND INVESTIGATIONS AND LICENSE DECISIONS

Section 5.01 Required Background Investigations Background investigations shall be

conducted by the Commission, or other agent retained by the Commission, under the

supervision and direction of the Commission, on all Persons specified in Section 4.01 of this

Ordinance.

Section 5.02 Standards for Background Investigations All background investigations

shall be conducted to ensure that Gaming Operations shall not employ or contract with

persons whose prior activities, or reputation, habits and associations pose a threat to the public

interest or to the effective regulation of Gaming, or create or enhance the dangers of

unsuitable, unfair or illegal practices and methods and activities in the conduct of such

Gaming. Such investigations shall be conducted according to requirements at least as

stringent as those set forth at 25 C.F.R. parts 556 and 558, the Compact, and this Chapter 5.

Background investigations shall be conducted in a manner which takes all reasonable steps to

ensure the confidentiality of the information generated by the investigation as well as that

submitted by the Applicants. Any willful or careless breach of this requirement may result in

a penalty ranging from censure, suspension removal from office and a fine of up to a $5,000.

The Commission shall have jurisdiction to hear and decide upon any such claims.

Section 5.03 Information ReQuired for Background Investigations

(a) Each Person subject to a background investigation under Section 4.01 of this

Ordinance shall be required to provide, subject to the Privacy Act of 1974, at a

minimum, and in such form as designated in Section 4.04, or as may be

prescribed by the Commission or the Executive Director, all of the following

information:

(1) full name, other names used, social security number(s), birth date, place

of birth, citizenship, gender, all languages (spoken or written);

(2) currently and for the previous 10 years, all business and employment

positions held, ownership interests in those businesses, business and

residence addresses, and drivers license numbers;

(3) the names and current addresses of at least three (3) personal references,

including one personal reference who was acquainted with the Applicant

during each period of residence listed under subsection (a)(2) of this

Section;

(4) current business and residence telephone numbers;

26
(5) a description of any existing and previous business relationships with

any Native American Indian tribe, including but not limited to a

description of the amount and type of ownership interest in those

businesses;

(6) a description of any existing and previous business relationships with

gaming, including but not limited to a description of the amount and

type of ownership interest in those businesses;

(7) the name and address of any licensing or regulatory agency with which

the Person has filed an application for a license or permit related to any

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

(8) for each felony for which there is an ongoing prosecution or conviction,

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

disposition, if any;

(9) for each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), within ten (10) years of the date of

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

and disposition;

(10) for each criminal charge (excluding misdemeanor traffic charges, but

including any DUI, DWI, reckless or careless driving 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, the type

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

date and disposition of such charge;

(11) the name and address of any licensing or regulatory agency with which

the person has filed an application for an occupational license or permit,

whether or not such license or permit was granted;

(12) a current photograph;

(13) any other information the Commission deems relevant; and

(14) fingerprints consistent with the provisions of Section 4.05.

(b) Background investigations conducted by the Commission must be sufficient to

make the determination described in Section 5.08(a). In conducting a

background investigation, the Commission or its agents, shall make every

reasonable effort to maintain the confidentiality of the identity of each Person

interviewed in the course of the investigation. Willful or careless violations of

27
this requirement are subject to penalty ranging from censure, suspension

removal from office and a fine of up to $5,000.

Section 5.04 Completion of Investigation Upon completion of the investigation, the

Commission may either (i) grant a License to the Applicant, or (2) notice the Applicant for a

hearing under Chapter 6 of this Ordinance. The Commission may notice the Applicant for a

hearing at any time during the investigation.

Section 5.05 Issuance of License The Commission after a hearing conducted under

Chapter 6 of this Ordinance, may, subject to the requirements of Section 5.09, issue a

License only after it has determined that the following minimum requirements have been met:

(a) the Applicant has fully completed all required Application forms and has

provided the Commission with all other information that the Commission has

requested;

(b) the Applicant meets all of the licensing requirements of this Ordinance;

(c) the Applicant meets all of the licensing requirements and criteria contained in

the Compact;

(d) the Commission has reviewed the Applicants criminal record and deems the

Applicants criminal record to be satisfactory to hold a License; and

(e) all applicable License fees and costs have been paid.

Section 5.06 Denial of a License Application The Commission, after a hearing conducted

pursuant to Chapter 6 of this Ordinance, may deny an Applicant a License only after it has

determined that the minimum requirements contained in Section 5.05 have not been met by

the Applicant or the Applicants Application, or if the Commission determines that the

Applicant is a Person whose prior activities, criminal record, reputation, habits or associations

pose a threat to the public interest or to the effective regulation and control of Gaming, or

create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, or activities

in the operation of Gaming or the carrying on of the business and financial arrangements

incidental thereto.

Section 5.07 Cancellation or Suspension Licensees and Applicants shall be legally

responsible for any violation of this Ordinance, any relevant License provisions, the Rules, the

Compact or IGRA. Any License issued hereunder may be canceled, limited, revoked,

suspended, terminated or modified by the Commission, after a hearing as provided in Chapter

6, for the breach of any of the provisions of the License, this Ordinance, or Rules. In

addition:

28
(a) unless otherwise stated in this Ordinance or the Rules, a Licensees attorney has

the right to be present and to participate in any proceeding concerning the

cancellation, limitation, revocation, suspension, termination or modification of a

License;

(b) a License may be summarily suspended. without a prior hearing, only upon

notice to that effect from the NIGC; and

(c) all decisions of the Commission regarding the cancellation, limitation,

revocation, suspension, termination or modification of Licenses shall be final,

unless appealed as provided in Chapter 6 of this Ordinance. No Gaming shall

be conducted by the Licensee after cancellation, even during the pendency of

an appeal.

Section 5.08 Eligibility Determination and Procedures for Forwarding Applications and

Reports for Key Employees and Primary Management Officials to the National Indian

Gaming Commission

(a) The Commission shall review an Applicants prior activities, criminal record,

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

of a Key Employee or Primary Management Official for employment in a

Gaming Operation. If the 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, the Gaming Operation

shall not employ that Person.

(b) When a Key Employee or Primary Management Official commences work at a

Gaming Operation, the Commission shall within a reasonable period of time

forward to the NIGC a completed application for employment for such Key

Employee or Primary Management Official, and shall conduct all necessary

background investigations. The Commission shall make the eligibility

determination referred to in subsection (a) of this Section.

(c) A report shall be submitted to the NIGC within sixty (60) days after a Key

Employee or Primary Management Official commences work at a Gaming

Operation or within sixty (60) days of the approval of this Ordinance by the

Chairman. Such report shall, at a minimum, include all of the following:

(1) steps taken in conducting the background investigation;

(2) results obtained;

(3) conclusions reached by the Commission;

29
(4) the Commissions basis for those conclusions; and

(5) a copy of the eligibility determination made pursuant to Section 5.08(a).

(d) Subject to the provisions of §4.12 No Gaming Operation shall continue to

employ as a Key Employee or Primary Management Official any Person who

does not have a License within ninety (90) days of commencing work at a

Gaming Operation.

(e) If a License is not issued to an Applicant, the Commission:

(1) shall notify the NIGC; and

(2) may forward copies of its eligibility determination and any relevant

report regarding a background investigation of the Applicant to the

NIGC for inclusion in the Indian Gaming Individuals Records System.

(f) With respect to Key Employees and Primary Management Officials,

applications for employment and reports of background investigations shall be

retained by the Commission for inspection by the Chairman or his designee for

no less than three (3) years from the date of termination of employment of each

Key Employee or Primary Management Official.

Section 5.09 Granting a Gaming License

(a) If, within a thirty (30) day period after the NIGC receives all required

Applications and reports, the NIGC notifies the Tribe 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 in a timely manner to requests for additional

information from the Chairman concerning Key Employees or Primary

Management Officials who are the subject of any report filed with the NIGC by

the Commission. Any such request by the Chairman shall suspend the thirty

(30) day period referred to in this Section until the Chairman receives the

additional information requested.

(c) If, within a thirty (30) day period after the NIGC receives all required

applications and reports, the NIGC provides the Tribe with a statement

itemizing objections to the issuance of a License to a Key Employee or to a

Primary Management Official for whom the Commission has submitted an

application and all required reports to the NIGC, the Commission shall

reconsider the application, taking into account the objections itemized by the

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NIGC. The Commission shall make the final decision whether to issue a

License to such Applicant.

Section 5.10 License Revocation and Suspension Following Receipt of Information from

NIGC

(a) If, after the issuance of a License, the Tribe receives information from the

NIGC indicating that a Management Entity or Controlling Shareholder, Key

Employee, or Primary Management Official is not eligible for employment

under Section 4.02 of this Ordinance, the Commission shall suspend such

License, shall notify the Licensee in writing of such suspension and the

potential revocation of the Licensees License, and shall conduct a hearing in

accordance with the Rules regarding the proposed License revocation.

(b) After a hearing, the Commission shall revoke or reinstate a License suspended

pursuant to subsection (a) of this Section. The Commission shall notify the

NIGC of its decision. A decision of the Commission to revoke a License after

the hearing called for by subsection (a) of this Section shall be final and there

shall be no appeal. A Management Entity whose License has been revoked or

suspended pursuant to this Section may not operate a Gaming Operation.

Section 5.11 Show Cause Hearing for Manager and Primary Management Officials

Excepting the provisions of §5.10 and notwithstanding the foregoing, in the event that the

Tribal Gaming Commission obtains reliable information that the duly licensed Manager and/or

a Primary Management Official may have breached any provision of this Ordinance, the

Compact, IGRA, or its license, the Tribal Gaming Commission shall issue a Notice for Show

Cause to the licensee prior to any action of suspension or the giving of notice of a revocation

hearing with respect to its/their license(s). The Notice for Show Cause shall describe the

alleged breach, shall describe the steps necessary to effect a cure and shall provide the

licensee with an opportunity to meet with the Tribal Gaming Commission to discuss the

matter. The discontinuance or correction of the alleged breach shall constitute a cure thereof,

except where such alleged breach constitutes a criminal violation by the Manager or the

Primary Management Official. If the alleged breach is not corrected or discontinued as

required herein, then the Tribal Gaming Commission shall institute the notice and hearing

procedure set forth above.

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CHAPTER VI

RULES OF PROCEDURE FOR HEARINGS

Section 6.01 Scope of Rules of Procedure All License hearings, enforcement hearings and

exclusion hearings conducted pursuant to this Ordinance shall be governed by this Chapter.

Section 6.02 Hearings

(a) The Commission shall afford an Applicant an opportunity for a hearing prior to

any final action by the Commission on an Application, other than an

unconditional grant of a License.

(b) The Commission shall afford a Licensee the opportunity for a hearing prior to

taking final action resulting in the revocation of the License or the imposition

of any penalties which the Commission is authorized to impose pursuant to this

Ordinance, and the rules and regulations promulgated thereunder.

(c) Nothing in this Section shall limit the Commissions authority to summarily

suspend or revoke a License without a hearing pursuant to Section 5.07(b) of

this Ordinance.

Section 6.03 Notice of Hearing

(a) The Commission shall provide written notice to the Applicant or Licensee of

the hearing at least ten (10) business days excluding weekends and holidays

prior to the date set for the hearing. The day the Applicant or Licensee

receives the notice shall be considered a full days notice under this Section.

The notice shall be sent by registered or certified mail, or may be personally

served upon the Applicant or Licensee. The notice shall state the date, time

and place of the hearing. The notice shall also contain an indication of the

action(s) being considered by the Commission, including, but not limited to:

(1) whether the Commission is holding the hearing for the purpose of

obtaining further information from the Applicant;

(2) whether the Commission will be considering the grant or denial of the

License Application;

(3) whether the Commission will be examining any alleged violations of the

Ordinance, the Compact, the IGRA, the conditions of any License

issued by the Commission, any order by the Commission, or any other

applicable laws, regulations or agreements; or

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(4) whether any other sanctions or penalties will be considered.

The notice shall also contain a short, plain statement of the reasons the Commission

determines the hearing is necessary.

Section 6.04 Ex Parte Communications

(a) No ex parte communication relative to the action(s) being considered by the

Commission, or a threat or offer of reward shall be made, before a decision is

rendered, to any member of the Commission by or on behalf of the Applicant

or Licensee, or any legal representative or counsel of the Applicant or Licensee.

(b) Nothing in this Section shall prohibit the Applicant, Licensee or its authorized

agent from communicating with the Commissions legal counsel, its

investigators or other authorized agents.

(c) Any member of the Commission who receives an ex parte communication shall

immediately report such communication to the Commissions legal counsel.

(d) For purposes of this Section only, the action(s) being considered by the

Commission shall be those matters identified in the written notice as provided

in Section 6.03(a) of this Ordinance, as well as any other matters that are

actually considered by the Commission during a hearing. All matters identified

in the written notice shall be subject to the prohibition against ex parte

communications. Al! matters not identified in the written notice that are

considered by the Commission during a hearing become subject to the

prohibition against ex parte communications as soon as they are discussed

during the hearing.

(e) The Commission shall have the power to impose any sanction pursuant to this

Chapter upon its determination that an Applicant or Licensee has made an ex

parte communication in violation of this Section.

Section 6.05 Appearance through Counsel

(a) Parties to all hearings governed by this Chapter may appear personally or

through an attorney, except that a party must personally attend any hearing on

the merits unless his attendance has been waived, in writing, by the

Commission.

(b) When a party has appeared through an attorney, service of all notices, motions,

orders, decisions and other papers shall thereafter be made upon the attorney,

unless the party requests otherwise in writing.

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(c) When a party is represented by an attorney, the attorney shall sign all motions,

notices, requests, and other papers on behalf of the party, including a request

for subpoenas.

(d) Upon the establishment of a Rincon San Luiseno Band of Mission Indians Bar,

any attorney appearing before the Commission must be duly admitted and

licensed by the Rincon San Luiseno Band of Mission Indians Bar to practice

law on the Tribes Reservation or before this Commission. Until such Bar is

established any attorney appearing before the Commission must be duly

admitted and licensed by the State of California or any other state Bar to

practice law.

Section 6.06 Discovery Procedures for Enforcement Hearings

(a) The Commissions legal counsel and the Licensee shall exchange a list of

persons that each party intends to call as witnesses no later than five (5)

business days before a scheduled enforcement hearing. The day the list is

received shall be considered a full days notice under this Section. Each

witness shall be identified by name, if known, position, and business address.

If no business address is available, a home address for the witness shall be

provided. Any witness not identified in accordance with this Section may be

prohibited from testifying at a hearing in the Commissions discretion.

(b) The Commissions legal counsel and the Licensee shall exchange a copy of all

documents or tangible things that they intend to offer as evidence in support of

the partys case in chief. This exchange shall be made to the opposing party

no later than five (5) business days before a scheduled enforcement hearing.

The day the documents are received shall be considered a full days notice

under this Section. Failure to make available any document or tangible thing in

accordance with this section may, in the Commissions discretion, be grounds

to deny the admission into evidence of such document or tangible thing.

Section 6.07 Confidential Materials

(a) Prior to making any documents available to the Commissions legal counsel or

designated agent, the Applicant or Licensee may designate any document it

believes to contain confidential information as Subject to a Confidentiality

Claim by so marking the document prior to providing a copy of the document

to the Commissions legal counsel.

(b) Documents provided to the Commissions legal counsel or designated agent

which have been marked in accordance with Paragraph (a) above, and any

non-public information contained within the document, shall not be made a part

of the public record of the Commission proceedings otherwise disclosed by the

34
CommissiOn to any person (except as may be required under any applicable

law, rule, regulation, court or administrative order, or the Compact), without

first providing the applicant or licensee with the opportunity to seek a ruling by

the Commission that the document or non-public information contained therein

should not be made public. The request for such a ruling and any discussions

relating to the document shall be heard and ruled upon by the Commission in

an Executive Session meeting. If the request for such a ruling is made during a

public hearing session, the hearing session shall be adjourned and the

Commission shall conduct an Executive Session meeting in order to hear and

rule upon the applicants or respondents request. The Applicant or Licensee

may present to the Commission in Executive Session written and oral argument

regarding the confidentiality claim, along with any facts the Applicant or

Licensee believes to be relevant to such argument.

(c) In determining whether a document marked in accordance with subsection (a)

above should be made part of the public record of the Commission proceedings

on the Application, the Commission will balance the Applicants claimed

confidentiality concerns against the materiality of the information to the

Application, the publics right to be made aware of the information, and the

Commissions need to make the information part of the public record in order

to remain fully accountable for the licensing decision. In making this

determination, the Commission shall consider all facts and circumstances

relevant to making a proper ruling.

(d) In the event that the Commission rules during Executive Session that the

document in question and/or information contained therein should be made part

of the public record of the Commissions proceedings on the Application, the

document and/or information contained therein will be made part of the public

record unless the Applicant withdraws the document from the Commissions

possession. In the event the Applicant chooses to withdraw the document from

the Commissions possession, the Commission will then weigh the withdrawal

along with the other evidence in making its determination on the Application.

Withdrawal of documents from the application process shall be looked upon by

the Commission with disfavor, and, depending on the facts and circumstances,

the Commission may deem the withdrawal of any document to be sufficient

cause in and of itself for denial of the License.

(e) In the event that the Commission rules during Executive Session that the

document and/or information contained therein should not be made part of the

public record, the document shall be designated Confidential and will not be

made part of the public record. The Commission may consider the document

and information contained therein camera in making its determination on the

Application.

35
(f) At the conclusion of the Commission proceedings on the License application,

the Commission will return to the Applicant all documents marked as Subject

to a Confidentiality Claim pursuant to Paragraph (c) above that were not (i)

made part of the public record of the gaming License application or (ii)

designated as Confidential and considered by the Commission camera.

Section 6.08 Subpoenas

(a) The Commission has the power and discretion to issue subpoenas and to

impose reasonable penalties for noncompliance.

(b) Subpoenas may be issued to compel any person to appear at the hearing on the

merits of the case, to give oral testimony, or to produce documents or other

tangible things.

Section 6.09 Hearing Procedures

(a) The Chair of the Commission shall preside over all hearings, and shall call the

proceedings to order, control the presentation of evidence, the appearance of

witnesses, and the order of the proceedings.

(b) The Commission may require any person, including, but not limited to, any

Applicant or Licensee, or any agent, employee or representative of any

Applicant or Licensee, to appear and testify before it with regard to any matter

within its jurisdiction at such time and place as it may designate. Such

testimony shall be under oath and may include any matters which the

Commission deems relevant to the discharge of the Commissions official

duties. Testimony shall be recorded by a duly certified court reporter and may

be used by the Commission as evidence in any proceeding or matter before the

Commission. Failure to appear and testify fully at the time and place

designated shall result in sanctions. Failure to appear may constitute grounds

for:

(1) the refusal to grant a License to the person summoned, and br that

persons principal, or employer;

(2) the revocation or suspension of a License held by the person

summoned, and/or that persons principal, or employer; or

(3) the inference that the testimony of the person

summoned would have been adverse to that person and/or that

persons principal or employer.

36
(c) Any party to the hearing may call and examine witnesses. The Commission

shall exercise its discretion to limit the testimony of witnesses where that

testimony is argumentative or repetitive.

(d) The Commission shall have the authority to eject from the hearings any person

who is disruptive, disorderly, or who shows a lack of proper respect for the

Commission or the nature of the proceedings.

(e) Persons shall be permitted to speak only when recognized by the Chair.

(f) Any member of the Commission may ask questions of witnesses, and may

request or allow additional evidence at any time.

(g) Any party to the hearing may conduct cross-examinations reasonably required

for a full and true disclosure of the facts.

(Ii) All hearings held under this Ordinance shall be open to the public.

(i) The Commission, in its discretion, has the power to sequester witnesses.

Section 6.10 Evidence

(a) In hearings governed by this Chapter, the Commission shall not be bound by

technical rules relating to evidence and witnesses. The Commission shall admit

all testimony having reasonable probative value, but shall exclude immaterial,

irrelevant or unduly repetitious testimony. The Commission shall give effect to

the rules of privilege unless such privilege is waived. Basic principles of

relevancy, materiality and probative force shall govern the proof of all

questions of fact. Objections to evidentiary offers and offers of proof of

evidence not admitted may be made and shall be noted in the record.

(b) All evidence, including records and documents in the possession of the

Commission or which the Commission desires to avail itself, shall be duly

offered and made a part of the record in the case. Every party shall be

afforded adequate opportunity to rebut or offer countervailing evidence.

(c) The Commission may take official notice of any generally recognized fact or

any established technical or scientific fact; but parties shall be notified either

before or during the hearing or by full reference in preliminary reports or

otherwise, of the facts so noticed, and they shall be afforded an opportunity to

contest the validity of the official notice.

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(d) Documentary evidence may be received in the form of copies or excerpts, if the

original is not readily available. Upon request, parties shall be given an

opportunity to compare the copy to the original.

(e) The record in a hearing governed by these Rules shall include:

(1) All Applications, intermediate rulings and exhibits and appendices

thereto.

(2) Evidence received or considered, stipulations and admissions, including

but not limited to confidential evidence received pursuant to Section

6.07 of this Ordinance.

(3) A statement of matters officially noticed.

(4) Questions and offers of proof, objections, and rulings thereon.

(5) Any decision, opinion, findings or report by the Commission.

(6) The transcript prepared by a duly certified court reporter.

Section 6.11 Determinations by the Commission

(a) The Commission shall make all determinations of issues before it by a majority

vote of the Commission.

(b) All determinations made by the Commission involving the grant, denial,

cancellation or revocation of a License, a finding of a violation of this

Ordinance, the Rules, the Compact, IGRA, the conditions of any License issued

by the Commission, any order by the Commission, or any other applicable

laws, regulations or agreements, and the imposition of any sanctions or

penalties shall be made by motion and on the record.

(c) A copy of any resolution reached pursuant to Section 6.11(b) of this Ordinance

shall be served upon the Applicant or Licensee by registered or certified mail,

or may be served personally.

Section 6.12 Sanctions If any party or its attorney fails to comply with any provision of

this Ordinance, the Rules and Regulations developed by the Commission pursuant to the

Ordinance (hereafter Rules), the Compact, IGRA, the conditions of any license issued by

the Commission, any order by the Commission, or any other applicable laws, regulations or

agreements, including, but not limited to any agreement, regarding any matter, including, but

not limited to, discovery matters and the failure to appear at a hearing at the scheduled time,

the Commission upon motion or upon its own initiative, may in its discretion impose upon

38
such party or attorney, or both, appropriate sanctions in regard to the failure(s) as are just,

including, but not limited to, the following:

(a) An order prohibiting the use of any witness, document or tangible thing which

should have been disclosed, produced, exhibited or exchanged pursuant to these

Rules or any order of the Commission;

(b) An order that designated facts shall be taken to be established;

(c) An order that the disobedient party may not support or oppose designated

claims or defenses;

(d) An order striking any pleadings or parts thereof, or staying further proceedings

or dismissing the proceeding or any part thereof, or entering a judgment by

default against the disobedient party;

(e) A finding against the disobedient party; or

(f) Any sanction otherwise set forth in this Ordinance.

39
CHAPTER VII

APPEALS

Section 7.01 Right of Appeal; Appeals Procedures A Person directly affected by any

finding of the Commission pursuant to Section 6.11 of this Ordinance, or any licensing

decision of the Commission under this Ordinance, shall have the right to appeal such finding

by filing for a rehearing before the Commission. Any such appeal must be filed with the

Commission in writing on or before the tenth (10th) day following receipt by such affected

Person of the written finding of the Commission. The Commission shall certify the hearing

record within thirty (30) days of the date of the filing of the appeal. In any case which

comes before the Commission for final action, the Commission may determine to review all

findings of fact and of law, or proceed pursuant to a de novo standard. The Commissions

decision on rehearing shall be final, and no further appeal may be had.

Section 7.02 Sovereign Immunity of the Commission The Rincon San Luiseno Band of

Mission Indians, acting through the Business Committee, confers on the Commission all of

the Tribes rights, privileges, immunities and sovereign immunity from suit, to the same

extent that the Tribe would have such rights, privileges, if it engaged in the activities

undertaken by the Commission.

Section 7.03 Limited Waiver of Sovereign Immunity of the Commission The

provisions of Section 17 of the Management Contract are incorporated herein by reference as

though set out verbatim. The Business Committee hereby expressly grants a limited waiver of

the Commissions sovereign immunity in any matter coming before the Commission provided

such relief is limited to injunctive or declaratory relief against the Commission. This limited

waiver is granted in favor only of the Tribes gaming Management Contractor and its Primary

Management Officials and is governed by Section 17 of the Management Agreement with the

Tribe as approved by the NIGC.

40
CHAPTER VIII

AUDITING AND INTERNAL CONTROL

Section 8.01 Minimum Procedures for Control of Internal Fiscal Affairs The

Commission shall promulgate Rules governing the control of internal fiscal affairs of all

Gaming Operations. At a minimum, such Rules shall require the consistent application of

Generally Accepted Accounting Principles, and shall:

(a) prescribe minimum procedures for the safeguarding of a Gaming Operations

assets and revenues, including recording of cash and evidence of indebtedness,

and mandatory count procedures. Such Rules shall establish a controlled

environment, accounting system, and control procedures that safeguard the

assets of the Gaming Operation, assure that operating transactions are properly

recorded, promote operational efficiency, and encourage adherence to

prescribed policies;

(b) prescribe minimum reporting requirements to the Commission;

(c) provide for the adoption and use of internal audits conducted in accordance

with generally accepted accounting principles by internal auditors licensed or

certified to practice public accounting in the State of California;

(d) require that records be retained that reflect statistical drop (amount of cash

wagered by Patrons), statistical win (amount of cash won by the Gaming

Operation), and the percentage of statistical win to statistical drop, or provide

similar information for each type of game in each Gaming Operation;

(e) prescribe the intervals at which such information shall be furnished;

(f) provide for the maintenance of documentation, (i.e., checklists, programs,

reports, etc.), to evidence all internal work performed as it relates to the

requirements of this Section; and

(g) provide that all financial statements and documentation referred to in this

Section be maintained for a minimum of five (5) years.

Section 8.02 Oversight of Internal Fiscal Affairs The Commission shall require

independent audits of the financial statements of all Gaming Operations. Such independent

audits must apply and require the consistent application of Generally Accepted Accounting

Principles, and shall:

41
(a) be conducted by independent accountants, knowledgeable in casino audits and

operations and licensed or certified to practice public accounting in the State of

California;

(b) include an opinion, qualified or unqualified, or if appropriate, disclaim an

opinion on the financial statements taken as a whole in accordance with

standards of the accounting profession established by rules and regulations of

the California State Business Committee of Accountancy, if any, and the

American Institute of Certified Public Accountants;

(c) disclose whether the accounts, records and control procedures maintained by the

Gaming Operation conform with this Ordinance ; and

(d) provide a review of the internal financial controls of the audited Gaming

Operation to disclose any deviation from the requirements of this Ordinance

and the Rules and report such findings to the Commission and the management

of the audited Gaming Operations; and

(e) provide such other information as the Commission deems necessary or

appropriate.

Section 8.03 Conduct of Audit

(a) The Business Committee shall cause to be conducted annually an independent

audit of Gaming Operations and shall submit the resulting audit reports to the

Commission, the NIGC, and the Manager.

(b) All Gaming related contracts that result in the purchase of supplies, services, or

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

legal and accounting services, and any other information the Commission

deems necessary or appropriate shall be specifically included within the scope

of the audit described in Section 8.03(a).

Section 8.04 Prohibition Against Embezzlement Any delay or action of any kind which,

in the opinion of the Commission, is effectuated by any Licensee to unlawfully or improperly

divert Gaming or other proceeds properly belonging to the Tribe, shall constitute grounds for

taking disciplinary action against that Licensee. If the Commission finds an unlawful

diversion was attempted, it may sanction the Licensee, report the matter to appropriate law

enforcement and gaming regulatory agencies for further action and take such other action as it

deems necessary or appropriate. Sanctions may include the imposition of fines, andlor the

revocation, suspension, or limitation of, or refusal to renew, any License.

42
Section 8.05 Non-Compliance Failure to comply with any of the requirements of this

Chapter, or the Rules promulgated hereunder may be found to constitute a violation of this

Ordinance.

43
CHAPTER IX

EXCLUSION OR

REJECTION OF INDIVIDUALS

Section 9.01 Prohibition Against Certain Individuals It shall be a violation of this

Ordinance for any Licensee to knowingly fail to exclude or eject from the gaming area of a

Gaming Establishment any individual who:

(a) is visibly under the influence of liquor, a drug or other intoxicating substance;

(b) is under the age of twenty-one years;

(c) is displaying disorderly conduct;

(d) is a person known to have committed a gaming related felony;

(e) is known to have a reputation for cheating or manipulation of games; or

(f) has been personally excluded, or is a member of any group or type of persons

which has been excluded, for cause from Gaming Establishments by a

resolution of the Commission.

Section 9.02 Right to Exclude or Remove If the Commission deems it in the best interest

of the Tribe, the Commission may exclude or remove any persons from the premises of any

Gaming Operation. Any person so excluded shall be entitled to a hearing as provided for by

Chapter 6 and shall have the rights provided to an Applicant therein. The Manager of any

Gaining Operation shall also have the authority to exclude or remove any person from the

Gaming Establishment, and all such actions shall be reported to the Commission within 24

hours of the taking of such action.

44
CHAPTER X

PROHIBITED ACTS

Section 10.01 Prohibited Acts In addition to other civil and criminal acts that may be

regulated or prohibited by this Ordinance, the Compact, other Tribal law or applicable federal

law, the following shall constitute prohibited activities and unauthorized Gaming under this

Ordinance and shall subject any perpetrator to Commission action, including, but not limited

to, the imposition of civil penalties, referral to appropriate law enforcement authorities for

criminal proceedings, and License suspension or revocation:

(a) altering or misrepresenting the outcome of Gaming or other event on which

wagers have been made after the outcome of such Gaming or event has been

determined but before such outcome is revealed to the players;

(b) placing or increasing a bet or wager after acquiring knowledge of the outcome

of the Gaming or event which is the subject of the bet or wager, including

past-posting and pressing bets;

(c) aiding anyone in acquiring such knowledge referred to in subsection (b) of this

Section for the purposes of increasing or decreasing any bet or wager, or for

the purpose of determining the course of play;

(d) claiming, collecting or taking, or attempting to claim, collect or take, money or

anything of value in or from a game with intent to defraud or claiming,

collecting or taking an amount greater than the amount actually won in such

game;

(e) knowingly to entice or induce another to go to any place where Gaming is

conducted or operated in violation of the provisions of this Ordinance, with the

intent that the other person play or participate in such Gaming;

(f) reducing the amount wagered or canceling a wager after acquiring knowledge

of the outcome of the game or other event which is the subject of the bet or

wager, including pinching bets;

(g) manipulating, with intent to cheat or defraud, any component or part of a game

in a manner contrary to the designed and normal operational purpose for such

component or part, with knowledge that such manipulation will affect the

outcome of the game, or with knowledge of any event that affects the outcome

of the game;

(h) defrauding the Tribe, any Licensee or any participant in any Gaming;

45
(i) participating in any Gaming not authorized under this Ordinance and the

Compact;

(j) knowingly providing false information or making any false statement with

respect to an application for employment or for any License, certification or

determination provided for in this Ordinance;

(k) knowingly providing false or misleading information or making any false or

misleading statement to the Tribe, the Commission or the Executive Director in

cormection with any contract for services or property related to Gaming;

(I) knowingly making any false or misleading statement in response to any official

inquiry by the Commission or its agents;

(m) offering or attempting to offer any thing of value, to a Licensee in an attempt

to induce the Licensee to act or refrain from acting in a manner contrary to the

official duties of the Licensee under this Ordinance, the Rules, Tribal and

Federal law or IGRA;

(n) acceptance by a Licensee of any thing of value with the expectation that receipt

of such thing of value is intended, or may be perceived as intended, to induce

the Licensee to act or refrain from acting, in a manner contrary to the official

duties of the Licensee under this Ordinance, the Rules, Tribal and Federal law

or IGRA;

(o) falsifying, destroying, erasing or altering any books, computer data, records, or

other information relating to a Gaming Operation in ways other than is

provided in approved internal control procedures;

(p) taking any action which interferes with or prevents the Commission or the

Business Committee from fulfilling its duties and responsibilities under this

Ordinance, the Rules, or IGRA; and

(q) entering into any contract, or making payment on any contract for the delivery

of goods or services to a Gaming Operation, when such contract fails to

provide for or result in the delivery of goods or services of fair value for the

payment made or contemplated.

Section 10.02 Prohibition Against Electronic Aids Except as specifically permitted by the

Commission, no person shall possess, with the intent to use in connection with Gaming, either

individually, or in concert with others, any calculator, computer, or other electronic or

mechanical device to assist in projecting the outcome or odds of such Gaming, to keep track

of or analyze cards, or to change probabilities of any game or the playing strategies regularly

utilized in such Gaming.

46
CHAPTER XI

NATIONAL INDIAN GAMING COMMISSION AND COMPACT

Section 11.0! National Indian Gaming Commission-Regulation Notwithstanding any

provision in this Ordinance or the Rules, the Commission is hereby fully empowered to

comply with all regulations promulgated by the NIGC, including, but not limited to, reporting

requirements relating to ordinances, contracts, license applications, background checks, and

other information.

Section 11.02 National Indian Gaming Commission-Assessment Notwithstanding any

provision in this Ordinance or the Rules, the Commission is hereby fully empowered to

comply with all assessments authorized by the NJGC. Such assessments shall be payable

solely from funds of Gaming Operation revenues as an operating expense.

Section 11.03 Compact with the State of California Notwithstanding any provision in this

Ordinance or the Rules, the Commission is hereby fully empowered to comply with the

provisions the Compact, including, but not limited to, any licensing, approval, or monitoring

requirements contained in the Compact.

47
CHAPTER XII

GENERAL REQUIREMENTS

Section 12.01 Security and Surveillance Each Gaming Establishment must provide for full

security and surveillance within the Gaming Establishment at all times. All security and

surveillance personnel in a Gaming Establishment must be licensed by the Commission. The

security and surveillance departments shall interact when necessary to carry out their official

duties and to coordinate their activities in order to effectuate the best protection for the

gaming patrons and the Tribal and management interests and assets of the enterprise.

Section 12.02 Compliance with Other Laws The construction, maintenance and operation

of any Gaming Operation shall be in a manner which protects the environment, public health

and safety, and shall comply with all applicable Tribal and federal laws relating to

environmental protection and public health and safety including, but not limited to, 25 C.F.R.

§522.4(b)(7).

Section 12.03 Amendments All provisions of this Ordinance are subject to amendment by

the Business Committee. All Rules promulgated by the Commission are subject to proper

revision, repeal, or amendment by the Commission. All amendments to this Ordinance shall

be effective upon the date of passage by the Business Committee.

Section 12.04 Severability If any provision of this Ordinance, or any portion of any

provision to this Ordinance, is found to be invalid by any court of competent jurisdiction, the

full remainder of such provision(s) shall not be affected.

Section 12.05 Words and Terms Tense, number and gender. In interpreting the provisions

of this Ordinance, save when otherwise plainly declared or clearly apparent from the context:

(a) words in the present tense shall include the future tense;

(b) words in masculine, feminine and neuter genders shall include all genders; and

(c) words in the singular shall include the plural, and words in the plural shall

include the singular.

Section 12.06 Repeal To the extent that they are inconsistent with this Ordinance, all prior

gaming laws, rules, ordinances or regulations of the Tribe are hereby repealed.

Section 12.07 Unclaimed Winnings

(a) Any winnings, whether property or cash, which are due and payable to a

participant in any Gaming Activity, and which remain unclaimed at the end of

a Gaming session, shall be held in safekeeping for the benefit of such

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participant if his or her identity is known. Such winnings shall be held for

twelve months or such longer period as the Commission deems reasonable in

consideration of all relevant facts and circumstances. The Commission shall

make such efforts as are reasonable under the circumstances to locate such

participant. At the end of the safekeeping period, such winnings shall revert to

the ownership of the Tribe and shall be transferred to the account or place

designated by the Tribe.

(b) In the event the identity of a participant entitled to unclaimed winnings is

unknown, the Commission shall use its best efforts to learn the identity of such

individual and shall follow the procedure set forth in subsection (a) above if the

Commission is able to identify such individual with reasonable certainty;

provided however, if after six months from the time the winnings were

payable, the Commission has been unable to identify the individual entitled

thereto, such winnings shall revert to the ownership of the Tribe.

Section 12.08 Patron Disputes Any Person who has any dispute, disagreement or other

grievance (herein dispute) with the Gaming Operation that involves any decision made by

employees of the Gaming Operation related to the play of any Class II or Class III game shall

have their dispute resolved as provided in sections 12.09 and 12. 10. The general manager of

the Gaming Operation shall provide notice to any Person patronizing the Gaming Operation of

this dispute resolution procedure. In addition, the general manager shall also make forms for

filing a claim against the general manager available to patrons of the Gaming Operation.

Section 12.09 Patron Rights Regarding Disputes Any Person with a dispute shall file a

written statement of the facts or circumstances of the dispute with the general manager of the

Gaming Operation within five days of the dispute. The manager shall have three (3) days to

prepare its written response to the Person. The general manager shall provide copies of the

Persons statement and managements response to the Tribal Gaming Commission.

Section 12.10 Gaming Commission Action on Patron Disputes In the event any Person is

dissatisfied with the response from the general manager of the Gaming Operation such Person

may request a hearing before the Tribal Gaming Commission. This request must be submitted

to the Commission within seven days of the response from the general manager of the

Gaming Operation. The Commission shall notify such Person and the general manager of the

time and place set for the hearing in writing at least five days before the hearing. The

Commission shall hold a hearing within 20 days of its receipt of the request for a hearing.

The Person shall be authorized to submit written and oral evidence in support of his/her

claim. The general manager or his designee shall also attend the hearing to respond to the

claim(s) made by such Person. The decision of the Tribal Gaming Commission shall be final.

Section 12.11 Agent for Service of Process The Commission Chairman shall be designated

agent for service of process for the Rincon San Luiseæo Band of Mission Indians, its Business

Committee, or its Gaming Commission for any official notification of any determination, or

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4 

any notice of violation of law, regulation or procedure by any state, federal or other official

agency. having jurisdiction over Class II or III Gaming Operations on Rincon Indian lands.

The Chairman shall promptly report any such service to the Commission, and shall promptly

provide the Rincon Tribal Business Committee and the Gaming Commission with a copy of

any complaints, official determination, official notice of violation or other documents served.

Section 12.12 Consent to Jurisdiction Any person who applies for a License under this

Ordinance, applies for employment in any Gaming Establishment, enters into any contract or

agreement related to Gaming, or participates in any Gaming on the Reservation, shall be

deemed to consent to the civil jurisdiction of the Tribe, the Commission and any Tribal Court

of the Rincon San Luiseno Band of Mission Indians. Nothing in this Section shall limit the

jurisdiction of the Tribe, the Commission or the Tribal Court under any circumstances not

explicitly contemplated in the Section.

Section 12.13 Comity and Concurrent Jurisdiction The Commission is empowered to

seek comity and enforcement of the orders of the Commission by the courts of any other

jurisdiction whose assistance may be required to give effect to the orders of the Commission.

The Commission is also empowered to issue orders to enforce the lawful orders of other

gaming regulatory agencies and the courts of foreign jurisdictions.

Section 12.14 Other Powers of Commission In addition to and in conjunction with the

powers and responsibilities listed in this Ordinance, Rules and other applicable laws and

regulations the Commission shall have power to:

(a) issue orders of temporary closure of gaming activities for violations of this

gaming ordinance or of contractual obligations to the Tribe, the IGRA or the

approved class III compact or orders of permanent closure of gaming activities

for violations of this gaming ordinance, tribal gaming regulations or contractual

obligations to the Tribe;

(b) initiate civil and criminal actions in court to enforce provision of this

ordinance, tribal gaming regulations or the IGRA;

(c) negotiate and approve management agreements for class II gaming to be

submitted to the Business Committee for approval by Business Committee

resolution;

(d) approve, deny or revoke gaming licenses for class II or class III gaming;

(e) monitor all gaming activities conducted on Rincon San Luiseno Band of

Mission Indian lands on a continuing basis;

50
(1) insure that background investigations are conducted as required by this

ordinance and the IGRA as well as conduct such additional investigations as the

Commission may deem necessary;

(g) demand access to and inspect, examine, copy and audit all papers, books and

records concerning activities and revenues of any gaming activity conducted on

Rincon San Luiseno Band of Mission Indians lands and any other matters

necessary to carry out their duties under this ordinance;

(h) conduct such hearings as the Commission may deem appropriate in carrying out

its duties, including administering oaths or affirmations to witnesses and issuing

subpoenas to compel witnesses to appear at such hearings;

(i) when information is received through audits or other investigations that

indicates a violation of tribal, federal or applicable state ordinances, laws or

regulations, to treat as confidential and provide such information to the

appropriate law enforcement officials;

(j) adopt regulations deemed necessary to clarify or enforce provision of this

ordinance or tribal rights and interests established in approved management

agreements or an approved class III compact; and

(k) adopt a Rincon San Luiseno Band of Mission Indians class II and class III

gaming license application.

Section 12.15. Enforcement Provisions

(a) All matters and occurrences which indicate that a criminal act under the Tribal

Code, Federal Law or State Law may have occurred in or around any gaming

establishment shall be immediately reported to the appropriate law enforcement

agency and the Commission.

(b) All matters and occurrences contrary to this Ordinance, rules or regulations

promulgated by the Commission which are not covered under a Criminal Code

shall be deemed to be a Civil violation. The Commission is hereby authorized

to establish a civil violations list of penalties and fines which shall be imposed

by the Commission for all such civil violations with the violator afforded the

rights to a hearing as provided in Chapter 6 herein.

NOW THEREFORE, BE IT ORDAINED, by the Tribal Business Committee of the Rincon

San Luiseæo Band of Mission Indians in council assembled with quorum present that this

Ordinance is hereby approved and adopted on behalf of the Rincon San Luiseno Band of

Mission Indians and shall be effective upon ________________________,

2000.

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Done this /~~day of ~ecf~~en , 2000, by the following members of the

Rincon Tribal Business Committee.

John D. Currier, Chairperson Sheryl Gra ,

Committee Member

Rincon Tribal Busine s Committee Rincon Tribal Business Committee

Gilbert Parada, Vice-Chairperson Bo Mazzetti, Committee Member

Rincon Tribal Business Committee Rincon Tribal Business Committee

u~y~ /~?4~f~

~ir~c, Committee Membe~

Rincon Tribal Business Committee

V&~~v~i ~Vp~Il(~

IId\F:\RINCON\ORDINANC\GAMINORD FIN

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