L ~ ~

~1~4N C(4RL1J~ ~tP~LtIE11~:.L1~L.

~:t L. 4kLU~.i ~-~PiuLH~ £ ~II) i. c-~ k~.:..L~VA TI J~1

SAN CARLOS, ARIZONA

RESOLUTION

Mo. JA-94-04

WHEREAS, the San. Carlos Apache Tribe is a Federally recognized

Indian Tribe organized pursuant to the provisions of

the Indian Reorganization Act of June 18, 1934. (48

Stat. 984); and

WHEREAS, the San Carlos Apache Tribe made a decision to initiate

gaming on the Reservation for the economic benefit of

the ~an Canoe Apache Tribe; and

WHEREAS,. the San Canlos Apache Tribe pasaed a gaming ordinance

pursuant to the Indian Gaming Regulatory Act (IGRA) and

submitted it to the National Indian Gaming Commission

and

WHEREAS, the National Indian Gaming Commission has reviewed the

ordinance and finds that one addition needs to be made

to the ordinance; and

WHEREAS, the National Indian Gaming Commission advises that the

following clause be added to the ordinance;

~Section 2.04. Licenee Required A

tribal licenses shall be required

for each place, facility, or

location on tribal lands where

gaming occurs pursuant to 25 C.F.R.

Stat. ~22.4(b) (6).~

WHEREAS, the San Carlos Apache Tribal Council desires Tribal

Gaming Commission members who have legal and Law en

forceinent backgrounds so they can follow through with

regulations and investigative duties prescribed under

the Gaming Ordinance.

NOW, THEREFORE, BE IT RESOLVED: by the Tribal Council of the San

Carlos Apache Tribe that the San Canoe Apache Tribe

hereby amends the San Carlos Gaming Ordinance o in

clude the following language:

~Sectiort 2.04. License Required A

tribal J.icense shall be required for

each place, facility, or location on

tribal lands where gaming occurs

pursuant to 25 C.F.R. Stat. 522.4

(b) (6). ~
~. ~ ~ I~lJ_-~~~ L-O ~/

4

Page 2 -

Resolution No. JA-94-~4

BE IT FURTHER RESOLVED: that the sentence in Section 3.03 Sstab

lishment of Gaming Ofifice on page 21 of the Gaming

Ordinance which reads 4Only enrolled members of the

Tribe may be appointed to the Gaming Office. is

hereby deleted so the Tribe can appuint Gaming

Commissioners with legal or law enforcement backgrounds

from the population at large.

BE IT FURThER RESOLVED: that the Chairman, Vice Chairman, or his

designee, are authorized to execute aJ.J. documents

pertaining to this amendment.

CERTIFICATION

I, the undersigned Secretary ci the San Caries Apache

Tribal Council, hereby certify that the San Carlos

Apache Tribal Council is presently composed of eleven

(11) members, of whom eleven (11) constituting a

quorum, were present at a Special Council Meeting

hereto held on the t~th day of January, 1994, and that

the foregoing Resolution No. JA-94-04 was duly adopted

by a vote of For: 8; Opposed: 0; Abstained: 2; of

the Tribal Council pursuant to the provisions of Arti

cle V. section 1 (a), Amended Constitution and Bylaws

of the SAN CARLOS APACHE TRIBE, effective February 24,

1954.

(12~~/. ~

SAN CA~LOS APACHE TRIBAL COUNCIL
Tribal Gaming Ordinance

of the

San Carlos Apache Tribe

Adopted on

January 18, 1994
TRIBAL GAMING ORDINANCE

SAN CARLOS APACHE TRIBE

TABLE OF CONTENTS

Chapter I Definitions

Chapter II -

Ordinance

Purpose

Gaming Authorized

Ownershipof Gaming

License Required Use of Gaming Revenues

Audit

Protection of the Environment and Public

Health and Safety

Licenses for Class II Key Employees and

Primary Management Officials

Definitions

Application Forms

Background Investigation

Background Investigation of Key Employees

and Primary Management Officials Pursuant

to Section 522.2(b) of the Rules and

Regulations of the National Indian

Gaming Commission

Application Fee

Eligibility Determination

Procedures for Forwarding Applications and

Reports for Key Employees and Primary

Management Officials to the National

Indian Gaming Commission

Report to the National Indian Gaming

Commission

Granting a Gaming License

License Suspension

Class III Gaming

Repeal

Chapter III - Administration and Enforcement

Unauthorized Gaming

Ownership -

Revenues to Benefit Tribe

Establishment of Gaming Office

Restrictions on Gaming Officers . . .

Compensation for Gaming Officers

Selection of Chairperson

Meetings Open to Public

Quorum Majority Vote

Monthly Report

Page No

. . 17

. . . 8

. . . 8

8

. . . 9

. . . 9

. . . 9

10

10

10

11

13

15

16

16

17

17

18

19

19

19

20

20

21

21

21

22

22

22

22

i
Issuance of Tribal Gaming Licenses;

Objections

NonTransferability of License

Granting of License -

Majority Vote .

Licenses and Regulation of Class III Gaming

Activities; Tribal-State Compact Required

Failure of Applicant to Disclose Material

Information

Temporary Employment Licenses

Parameters of Licenses

Licensing of Distributors

Chapter V Management Contracts

23

23

24

24

24

25

25

25

26

26

26

28

30

30

31

31

31

32

32

33

Gaming Office Approval Required

Approval of Management Contracts

Percentage of Net Revenue Fees

Contract Disapproval

Modifying or Voiding Contract

Conveying Interest in Land

Fee for Investigation Cost

Dispute Resolution

38940123

Page No

TABLE 0F CONTENTS

Powers

Prior Notice of Actions

Request for Gaming Office Action .

Voting on Licensing

Gaming Office Findings

Notification of Gaming Office Decision

Right to Appeal

Appointment of Director

Directors Contract

Termination of Director

Duties of Director

Right of Inspection

Confidentiality of Information . .

Powers of Delegation

Sanctions .

Limitations Period

Violations of Code Punishment .

Due Process Regarding Enforcement Actions

Patron Disputes

Independence of Gaming Office

Chapter IV -

Licensing of Games

35

35

35

35

36

36

36

37

ii
TABLE OF CONTENTS

Chapter VI -Auditing and Internal Control

Minimum Procedures for Control of Internal

Fiscal Affairs

Gaming Office Oversight of Internal Fiscal

Affairs

Gaming Offices Right to Conduct Audit

Prohibition Against Embezzlement

Chapter VII -

Authorization of Gaming

Prohibition Against Gaming Grace Period

Authorization of Gaming

Approval of Gaming Equipment .

Posting of Rules

Page No

. . 45

Chapter VIII -

Exclusion or Ejection of Individuals

List of Undesirables

Notice and Opportunity to be Heard . .

Prohibition Against Listed Individuals

Prohibition Against Certain Individuals

Chapter IX -

Cheating

Unlawful Acts

Prohibition Against Electronic Aids .

Chapter X -

National Indian Gaming Commission

and Tribal-State Compacts

National Indian Gaming Commission

Regulations

National Indian Gaming Commission

Assessment

Compact with the State of Arizona

Chapter XI - Miscellaneous

46

47

47

Security

Maintenance of Code and Regulations

Compliance with Other Laws

Amendments

Severability

Designated Agent

Law Enforcement

55

55

55

55

55

56

48

48

48

48

49

. 50

. 50

. 50

50

. 52

52

54

54

54

iii
TRIBAL GAMING ORDINANCE

for the

SAN CARLOS APACHE TRIBE

CHAPTER I

DEFINITIONS

Section 1.01 Definitions Unless a different code meaning is

clearly indicated, the terms used in this Code shall have the same

meaning as defined in the Indian Gaming Regulatory Act, Public

Law 100 §497, 102 Stat. 2467, codified at 25 U.S.C. §S 2701 et.

seq. (Oct. 17, 1988).

Section 1.02 Calendar Year means the period beginning on the

first day of January at 12:00:01 and ending the immediately

following December 31 at 12:00 oclock midnight

Section 1.03 Chairman means the Chairman of the National

Indian Gaming Commission.

Section 1.04 Class I Gaming means:

(a) Social games played solely for prizes of minimal value; or

(b) Traditional forms of Indian gaming when played by

individuals in connection with tribal ceremonies or celebrations.
Section 1.05 Class II Gaming means:

(a) Bingo or lotto (whether or not electronic, computer, or

other technologic aids are used) when players:

(1) Play for prizes with cards bearing numbers or other

designations;

(2) Cover numbers or designations when object, similarly

numbered or designated, are drawn or electronically determined; and

(3) Win the game by being the first person to cover a

designated pattern on such cards;

(b) If played in the same location as bingo or lotto, pulltabs, punch boards, tip jars, instant bingo, and other games

similar to bingo;

(c) Nonbanking card games that:

(1) State law explicitly authorizes, or does not

explicitly prohibit, and are played legally anywhere in the state;

and

(2) Players play in conformity with state laws and

regulations concerning hours, periods of operation and limitations

on wagers and pot sizes;

Section 1.06 Class III Gaming means all forms of gaming that

are not Class I gaming or Class II gaming including but not limited

to:

(a) Any house banking game including but not limited to:

(1) Card games such as baccarat, chemin de fer,

blackjack (21), and pai gow (if played as house banking games);

(2) Casino games such as roulette, craps, and keno;

(b) Any slot machines as defined in 15 U.S.C. 117 (a)(1) and

electronic or electromechanical facsimiles of any game of chance;

(c) Any sports betting and parimutuel wagering including but

not limited to wagering on horse racing, dog racing or jai alai; or

(d) Lotteries.

2
Section 1.07 Collateral agreement means any contract,

whether or not in writing, that is related, either directly or

indirectly, to a management contract or to any rights, duties or

obligations created between a tribe (or any of its members,

entities, or organizations) and a management contractor or

subcontractor (or any person or entity related to a management

contractor or subcontractor).

Section 1.08 Commission means the National Indian Gaming

Commission.

Section 1.09 Electronic, computer or other technologic aid

means a device such as a computer, telephone, cable, television,

satellite or bingo blower and that when used--

(a) is not a game of chance but merely assists a player or

the playing of a game;

(b) is readily distinguishable from the playing of a game of

chance on an electronic or electromechanical facsimile; and

(c) is operated according to applicable Federal

communications law.

Section 1.10 Electronic or electromechanical facsimile means

any gambling device as defined in 15 U.S.C. 117 (a}(2) or (3).

Section 1.11 Game similar to bingo means any game that meets

the requirements for bingo under § 502.3(a) of this part and that

is not a house banking game under § 502.11 of this part.

Section 1.12 Gaming operation means each economic entity

that is licensed by a tribe, operates the games, receives the

revenues, issues the prizes, and pays the expenses. A gaming

operation may be operated by a tribe directly; by a management

contractor, or, under certain conditions, by another person or

other entity.

3
Section 1.13 House banking game means any game of chance

that is played with the house as a participant in the game, where

the house takes on all players, collects from all losers, and pays

all winners, and the house can win.

Section 1.14 Indian lands means:

(a) Land within the limits of an Indian reservation; or

(b) Land over which an Indian tribe exercises governmental

power and that is either--

(1) Held in trust by the United States for the benefit

of any Indian tribe or individual; or

(2) Held by an Indian tribe or individual subject to

restriction by the United States against alienation.

Section 1.15 Indian tribe means any Indian tribe, band,

nation, or other organized group or community of Indians that the

Secretary recognizes as-

(a) Eligible for the special programs and services provided

by the United States to Indians because of their status as Indians

and

(b) Having powers of selfgovernment.

Section 1.16 Key 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

4
(10) Custodian of gambling devices including persons with

access to cash and accounting records within such devices;

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

cash compensation is in excess of $50,000 per year; or

Cc) If not otherwise included, the four most highly

compensated persons in the gaming operation.

Section 1.16 Management contract means any contract,

subcontract, or collateral agreement between an Indian tribe and a

contractor or between a contractor and a subcontractor if such

contract or agreement provides for the management of all or part of

a gaming operation.

Section 1.17 Net revenues means gross gaming revenues of an

Indian gaming operation less

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

(b) Total gaming-related operating expenses, excluding

management fees.

Section 1.18 Person having a direct or indirect financial

interest in a management contract means:

(a) When a person is a party to a management contract, any

person having a direct financial interest in a management contract;

(b) When a trust is a party to a management contract, any

beneficiary or trustee;

(c) When a partnership is a party to a management contract,

any partner;

(d) When a corporation is a party to a management contract,

any person who is a director or who holds at least 10% of the

issued and outstanding stock alone or in combination with another

stockholder who is a spouse, parent, child or sibling; or

(e) When an entity other than a natural person has an

interest in a trust, partnership or corporation that has an

interest in a management contract, all parties of that entity are

5
deemed to be persons having a direct financial interest in a

management contract.

Section 1.19 Person having management responsibility for a

management contract means the person designated by the management

contract as having management responsibility for the gaming

operation, or a portion thereof.

Section 1.20 Primary management official means

(a) The person having management responsibility for a

management contract;

(b) Any person who has authority:

(1) To hire and fire employees; or

(2) To set up working policy for the gaming operation;

or

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

financial management responsibility.

Section 1.21 Secretary means the Secretary of the Interior.

Section 1.22 TribalState compact means an agreement between

a tribe and a state about Class III gaming under 25 U.S.C. 2710(d).

Section 1.23 San Carlos Gaming Office (also known as the

Carlos Commission means the San Carlos Apache Tribe Gaming

Office.

Section 1.24 San Carlos Gaming Officer (also known as San

Carlos Commissioner means one of the members of the San Carlos

Apache Tribe Gaming Office.

Section 1.25 Council means the San Carlos Apache Tribal

Council.

6
Section 1.26 Director means the Director of the San Carlos

Apache Tribal Gaming Office appointed by the Council as the chief

administrator of San Carlos Apache Tribe gaming.

Section 1.27 Tribe means the San Carlos Apache Tribe.

Additionally, the definition set forth on pp.2-il of the compact

signed by the Tribe and the State of Arizona under date of August

ii, 1993 are adopted as if set forth at this point.

Section 1.28 Words and Terms Tense, number and gender. In

constructing the provisions of this Code, 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;

(c) words in the singular shall include the

plural, and in the plural shall include the

singular.

Section 1.29 Working Days means Monday through Friday except

for Federal or Tribal holiday.

7
CHAPTER II

ORDINANCE

Section 2.01 Purpose

The San Carlos Apache Tribe (hereinafter Tribe), empowered

by its Constitution and Bylaws to enact ordinances, hereby enacts

this ordinance in order to set the terms for Class II and Class III

gaming operations on tribal lands.

Section 2.02 Gaming Authorized

Class II gaming as defined in the Indian Gaming Regulatory

Act, P.L. 100447, 25 U.S.C. Section 2703 (7)(a) (IGRA) and by the

regulations promulgated by the National Indian Gaming Commission at

25 C.F.R. § 502.3 (as published in the Federal Register at 57 FR

1238212393, April 9, 1993) is hereby authorized. Additionally,

all forms of Class III gaming set forth in the Compact between the

Tribe and the State of Arizona under date of August 11, 1993 are

authorized.

Section 2.03 Ownership of Gaming

The Tribe shall have the sole propriety interest in and

responsibility for the conduct of any gaming operation authorized

by this ordinance (unless the Tribe elects to allow individually

owned gaming).

8
Section 2.04 License Required

A tribal license shall be required for each place, facility,

or location on tribal lands where gaming occurs pursuant to 25

C.F.R. § 522.4(b)(6).

Section 2.05 Use of Gaming Revenues

A. Net revenues from Class II and Class III gaming shall be

used only for the following purposes: to fund tribal government

operations and programs; provide for the general welfare of the

Tribe and its members; promote tribal economic development; donate

to charitable organizations; or help fund operations of local

government agencies.

B. If the Tribe elects to make per capita payments to tribal

members, it shall authorize such payments only upon approval of a

plan submitted to the Secretary of the Interior under 25 U.S.C. §

2710 (b)(3).

Section 2.06 Audit

A. The Tribe shall cause to be conducted annually an

independent audit of gaming operations and shall submit the

resulting audit reports to the National Indian Gaming Commission.

B. All gaming related contracts that result in the purchase

of supplies, services, or concessions in excess of $25,000.00

annually, except contracts for professional legal and accounting

services, shall be specifically included within the scope of the

audit that is described in subsection A. above.

9
Section 2.07 Protection of the Environment and Public Health

and Safety

Class II and Class III gaming facilities shall be constructed,

maintained and operated in a manner that adequately protects the

environment and the public health and safety.

Section 2.08 Licenses for Class II Key Employees and Primary

Management Officials

The Tribe shall ensure that the policies and procedures set

out in this section are implemented with respect to key employees

and primary management officials employed at any Class II gaming

enterprise operated on Indian lands:

A. Definitions

For the purposes of this section, the following

definitions apply:

1. Key employee means:

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

following functions:

(1) Bingo caller;

(2) Counting room supervisor;

(3) Chief of security;

(4) Custodian of gaming supplies or cash;

(5) Floor manager;

(6) Pit boss;

(7) Dealer;

(8) Croupier;

(9) approver of credit; or

(10) Custodian of gambling devices including

persons with access to cash and accounting

records within such devices;

(b) If not otherwise included, any other person

whose total cash compensation is in excess of

$50,000 per year; or

10
(c) If not otherwise included, the four most highly

compensated persons in the gaming operation.

2. Primary management official means

(a) The person having management responsibility for

a management contract;

(b) Any person who has authority:

(1) to hire and fire employees; or

(2) to set up working policy for the gaming

operation; or

(c) The chief financial officer or other person who

has financial management responsibility.

B. Application Forms

1. The following notice shall be placed on the

application form for a key employee or a primary management

official before that form is filled out by an applicant:

In compliance with the Privacy Act of 1974,

the following information is provided:

Solicitation of the information on this form

is authorized by 25 U.S.C. 2701 et seq. The

purpose of the requested information is to

determine the eligibility of individuals to be

employed in a gaming operation. The

information will be used by 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

U
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.

The disclosure of your Social Security Number

(SSN) is voluntary. However, failure to

supply a SSN may result in errors in

processing your application.

2. Existing key employees and primary management

officials shall be notified in writing that they shall either:

(a) Complete a new application form that contains

a Privacy Act notice; or

(b) Sign a statement that contains the Privacy Act

notice and consent to the routine uses described in

that notice.

3. The following notice shall be placed on the

application form for a key employee or a primary official before

that form is filled out by an applicant.

A false statement on any part of your

application may be grounds for not hiring you,

or for firing you after you begin work. Also,

you may be punished by fine or imprisonment.

(U.S.Code, title 18, section 1001.)

12
4. The Tribe shall notify in writing existing key

employees and primary management officials that they shall either:

a. Complete a new application form that contains

a notice regarding false statements; or

b. Sign a statement that contains the notice

regarding false statements.

C. Background Investigation No license shall be granted to

any person or entity who has been determined to be a person or

entity whose prior activities, criminal record, if any, or

reputation, habits, and 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, and activities in the conduct of gaming or by

the carrying on of the business and financial arrangements

incidental thereto.

1. Class II Gaming

(a). The Tribe shall request from each primary management

official and from each key employee all of the following

information:

(1). Full name, other names used (oral or written),

social security number(s), birth date, place of birth, citizenship,

gender, all languages (spoken or written);

(2). Currently and for the previous 5 years:

business and employment positions held, ownership interests in

those businesses, business and residence addresses, and drivers

license numbers;

(3). The names and current addresses of at least

three personal references, including one personal reference who was

acquainted with the applicant during each period of residence

listed under paragraph (1)(b) of this section;

(4). Current business and residence telephone

numbers;

13
(5). A description of any existing and previous

business relationships with Indian tribes, including ownership

interests in those businesses;

(6). A description of any existing and previous

business relationships with the gaming industry generally,

including ownership interests in those businesses;

(7). The name and address of any licensing or

regulatory agency with which the person has filed an application

for a license or permit related to gaining, whether or not such

license or permit was granted;

(8). For each felony for which there is an ongoing

prosecution or a conviction, the charge, the name and address of

the court involved, and the date and disposition if any;

(9). For each misdemeanor conviction or ongoing

misdemeanor prosecution (excluding minor traffic violations),

within 10 years of the date of the application, the name and

address of the court involved and the date and disposition;

(10).For each criminal charge (excluding minor

traffic charges), whether or not there is a conviction, if such

criminal charge is within 10 years of the date of the application

and is not otherwise listed pursuant to paragraph (1)(h) or (1)(i)

of this section, the criminal charge, the name and address of the

court involved and the date and disposition;

(11).The name and address of any licensing or

regulatory agency with which the person has filed an application

for an occupational license or permit, whether or not such license

or permit was granted;

(12).A current photograph;

(13) .Any other information the Tribe deems relevant;

and

(14) . Fingerprints consistent with procedures adopted

by the Tribe according to 25 C.F.R. § 522.2(h).

14
Section 2.09 Background Investigation of Key Employees and

Primary Management Officials Pursuant to Section 522.2(b) of the

Rules and Regulations of the National Indian Gaming Commission The

Tribe shall conduct an investigation sufficient to make a

determination under Section 2.11. below. In conducting a

background investigation, the Tribe or its agent shall promise to

keep confidential the identity of each person interviewed in the

course of the investigation.

1. Pursuant to Section 5 of the Compact between the Tribe

and the State of Arizona entered into on August 11, 1993, the

procedures for tribal licensing and state certification of all

gaming employees for the conduct of Class III gaming are adopted

and incorporated by reference in this paragraph.

2. The procedures for conducting background investigations

on key employees and primary management officials for Class II

gaming in order to determine their eligibility for employment are:

a. Criminal history check;

b. Civil history check;

b. Financial and credit check;

c. Reference check;

d. Previous business and employment check;

e. Relative check;

f. Business and personal associates check;

g. Educational verification;

h. Document the disposition of all potential problem

areas noted and disqualifying information needed.

The data for such investigations is set forth in the

attached form marked Exhibit A to this ordinance.

3. The Tribal Gaming Office is primarily responsible for the

conduct of the background investigations and suitability

determinations in consultation with the National Indian Gaming

Commission;

4. The Director of the Tribal Gaming Office in association

with the State of Arizona shall be responsible for conducting,

15
reviewing and either approving or disapproving the investigative

work;

5. The Director of the Tribal Gaming Office is responsible

for reporting the results of the background investigations to the

National Indian Gaming Commission;

6. The San Carlos Apache Tribal Police Department will

obtain the fingerprints for processing;

7. Suitability determination and selection of Gaming Office

members is more specifically set forth in the rules and regulations

of the Tribal Gaming Office attached as Exhibit C to these

documents;

8. The investigative report shall set forth, in detail, the:

a. Steps taken in conducting the background

investigation;

b. Results obtained;

c. Conclusions reached;

d. The basis for those conclusions.

Section 2.10 Application Fee The Gaming Office shall set a

fee for applications, background investigations and licenses. All

such fees shall be made payable to the San Carlos Apache Tribe and

delivered to the San Carlos Apache Tribe Accounting office.

Section 2.11 Eligibility Determination The Tribe shall

review a persons prior activities, criminal record, if any, and

reputation, habits and associations to make a finding concerning

the eligibility of a key employee or primary management official

for employment in a gaming operation. If the Tribe determines that

employment of the person poses a threat to the public interest or

to the effective regulation of gaming, or creates or enhances

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

activities in the conduct of gaming, a tribal gaming operation

shall not employ that person in a key employee or primary

management official position.

16
Section 2.12 Procedures for Forwarding Applications and

Reports for Key Employees and Primary Management Officials to the

National Indian Gaming Commission

1. When a key empthyee or primary management official begins

work at a gaming operation authorized by this ordinance, the Tribe

shall forward to the National Indian Gaming Commission a completed

application for employment and conduct the background investigation

and make the determination referred to in Section 2.11.

2. The Tribe shall forward the report referred to in Section

2.13 to the National Indian Gaming Commission within 60 days after

an employee begins work or within 60 days of the approval of this

ordinance by the Chairman of the National Indian Gaming Commission.

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

or primary management official a person who does not have a license

after 90 days.

Section 2.13 Report to the National Indian Gaming Commission

1. Pursuant to the procedures set out in section 2.09, the

Tribe shall prepare and forward to the National Indian Gaming

Commission an investigative report on each background

investigation. An investigative report shall include all of the

following:

a. Steps taken in conducting a background

investigation;

b. Results obtained;

c. Conclusions reached; and

d. The bases for those conclusions.

2. The Tribe shall submit, with the report, a copy of the

eligibility determination made under Section 2.11.

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

17
a. Shall notify the National Indian Gaining Commission;

and;

b. May forward copies of its eligibility determination

and investigative report (if any) to the National

Indian Gaming Commission for inclusion in the

Indian Gaming Individuals Records System.

4. With respect to key employees and primary management

officials, the Tribe shall retain applications for employment and

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

Chairman. of the National Indian Gaming Commission or his or her

designee for no less than three (3) years from the date of

termination of employment.

Section 2.14 Granting a Gaming License

1. If, within a thirty (30) day period after the National

Indian Gaming Commission receives a report, the National Indian

Gaming Commission 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 for whom the

tribe has provided an application and investigative report to the

National Indian Gaining Commission, the Tribe may issue a license to

such applicant.

2. The Tribe shall respond to a request for additional

information from the Chairman of the National Indian Gaming

Commission concerning a key employee or a primary management

official who is the subject of a report. Such a request shall

suspend the 30-day period under paragraph 1. of this section until

the Chairman of the National Indian Gaming Commission receives the

additional information.

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

the National Indian Gaining Commission 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 Tribe

18
has provided an application and investigative report to the

National Indian Gaming Commission, the Tribe shall reconsider the

application, taking into account the objections itemized by the

National Indian Gaming Commission. The Tribe shall make the final

decision whether to issue a license to such applicant.

Section 2.15 License Suspension

1. If, after the issuance of a gaming license, the Tribe

receives from the National Indian Gaming Commission reliable

information indicating that a key employee or a primary management

official is not eligible for employment under subsection 3. above,

the Tribe shall suspend such license and shall notify in writing

the licensee of the suspension and the proposed revocation.

2. The Tribe shall notify the licensee of a time and a place

for a hearing on the proposed revocation of a license.

3. After a revocation hearing, the Tribe shall decide to

revoke or to reinstate a gaming license. The Tribe shall notify

the National Indian Gaming Commission of its decision.

Section 2.16 Class III Gaming In addition to the above, the

Tribal-State licensing and certification requirements (~ 4) and

Procedures for Tribal Licensing and State Certification (~ 5) of

the Compact between the Tribe and the State of Arizona set forth in

the Compact signed on August 11, 1993 are adopted and incorporated

herein by reference.

Section 2.17 Repeal

To the extent that they are inconsistent with this ordinance,

all prior gaming ordinances are hereby repealed.

19
CHAPTER III

ADMINISTRATION AND ENFORCEMENT

Section 3.01 Unauthorized Gaming Any Indian who commits any

act of unauthorized gaming on this reservation or any Indian land

shall be guilty of a crime and shall be prosecuted in Tribal Court.

Prosecution for such a crime in Tribal Court is not meant to be

exclusive; a finding of guilt or innocence shall not deprive the

federal government from criminal jurisdiction. However, it is

hereby declared that Class I, Class II and Class III gaming

conducted on this reservation or on any Indian land, that fully

complies with the provisions of this Code, shall not be subject to

any criminal penalties.

Section 3.02 Ownership -

Revenues to Benefit Tribe The Tribe

shall have the sole proprietary interest in, and the sole

responsibility for, the conduct of the gaming activity. Such

provision does not, however, limit the Tribes ability to enter

into a management contract wherein net profits are divided between

the Tribe and other parties to the contract. A gaming

establishment shall be operated so as to produce the maximum amount

of net profit to the Tribe. The Tribes share of net revenues will

go entirely to the Tribe and will be used solely for the following

purposes:

(a) to fund tribal government operations or

programs;

(b) to provide for the general welfare of the

Tribe and its members;

(c) to promote tribal economic development;

20
(d) to donate to charitable organizations; or

(e) to help fund operations of local

government agencies. Net revenues from the

gaming establishment may be used to make per

capita payments to members of the Tribe upon

the preparation of a plan to allocate revenues

to the above uses and approval of this plan by

the Secretary of the Interior.

Section 3.03 Establishment of Gaming Office The San Carlos

Apache Tribal Gaming Office is hereby established. The Gaming

Office shall consist of five (5) members appointed by a majority

vote of the Council. A gaming officer shall serve for three (3)

years and may be removed from office prior to the end of his term

only for cause and by a unanimous vote of Council following a

public hearing. In order to establish an annually staggered Gaming

Office appointment schedule similar to that of the Council, the

first gaming officers shall be appointed by the Council as follows:

three (3) members shall serve three (3) year terms, two (2) shall

serve two (2) year terms and two (2) shall serve a one (1) year

term for the initial appointment terms only. Thereafter, all

successive terms of appointment shall run for three (3) years.

Vacancies shall be filled within thirty (30) days by the Council.

Section 3.04 Restrictions on Gaming Officers Gaming officers

may hold other tribal positions and may engage in business,

provided however, that they shall not engage in any business which

is subject to the provisions of this Gaming Code. Gaming officers

shall not gamble in the gaming establishment nor have any personal

financial interest in any gambling by any patron.

Section 3.05 Compensation for Gaming Officers Gaming officers

shall be compensated at a rate to be established annually by the

Gaming Office, and approved by the Tribal Council. Gaming officers

21
shall be reimbursed for actual expenses incurred on Gaming Office

business, including necessary travel expenses. In no event shall

compensation be based on a percentage of net profits from gaming

operations of the Tribe.

Section 3.06 Selection of Chairperson The Gaming Office

shall select annually from its membership a chairperson, who shall

have the power to convene special meetings of the Gaming Officers

upon forty-eight (48) hours written notice to members of the Gaming

Office. If the chairperson determines that a bona fide emergency

exists, the chairperson may conduct special meeting(s) by

telephone.

Section 3.07 Meetings Open to Public General meetings of

the Gaming Office may be open to the general membership of the San

Carlos Apache Tribe and all meetings shall be governed by Roberts

Rules of Order. Upon a majority vote as defined in Section 2.09,

matters dealing with personnel, security or the fiscal integrity of

the gaming operation shall be conducted in executive session and

not be open to the public.

Section 3.08 Quorum -

Majority Vote A quorum shall consist

of three (3) members of the Gaming Office. All decisions shall be

made by a majority vote of the Gaming Officers, unless indicated

otherwise in this Code.

Section 3.09 Monthly Report The Gaming Office shall make

monthly reports to the Council within thirty (30) days after the

close of the month for which the information is being required.

The report shall include a full and complete statement of gaming

revenues paid to the Tribe, expenses and all other financial

transactions of the Gaming Office and a summary of all licensing

and enforcement actions.

22
Section 3.10 Powers The Gaming Office shall exercise all

powers necessary to effectuate the purposes of this Code. The

Gaming Office may exercise any proper power and authority necessary

to perform the duties assigned to it by this Code, and is not

limited by the enumeration of powers in this chapter. The Gaming

Officers shall meet with the Director not less than once each month

to make recommendations and set policy, to approve or reject

reports of the Director and transact other business that may be

properly brought before it. The Gaming Office shall promulgate

rules and regulations for the operation of any gaming establishment

and shall hear and resolve all disputes regarding any provision of

the Code. In all decisions, the Gaming Office shall act to promote

and ensure integrity, security, honesty, and fairness of the

operation and administration of gaming and ancillary activities of

the gaming operation. The Gaming Office shall have the power and

authority to deny any application; to limit, condition, suspend, or

restrict any license; make a finding of suitability or approval of

a license, or find suitable the imposition of a fine upon any

person licensed, for any cause deemed reasonable by the Gaming

Office.

Section 3.11 Prior Notice of Actions In adopting, amending,

and repealing regulations, the Gaming Office shall give prior

notice of the proposed action to all licensees and other persons

whom the Gaming Office or Director has reason to believe have a

legitimate and bona fide interest in such proposed action. Said

notice shall inform such persons as to the general nature of the

proposed action and advise them as to the manner in which comments

on said proposed action shall be received by the Gaming Office. In

emergencies, the Gaming Office may summarily adopt, amend or repeal

any regulation if at the time the Gaming Office determines such

action is necessary for the immediate preservation of the public

peace, health,safety, morals, and good order or general welfare,

together with a statement of facts constituting the emergency;

provided the Gaming Office shall schedule such emergency action for

23
a regular hearing within sixty (60) days after any such emergency

meeting.

Section 3.12 Request for Gaming Office Action Any person who

is determined by the Gaming Office or Director to be a bona fide

interested party may file a petition in a manner and form approved

by the Gaming Office requesting the adoption, amendment or repeal

of a regulation. Upon receipt of the petition, the Gaming Office

shall within thirty (30) days deny the request in writing or

schedule the matter for action pursuant to this chapter.

Section 3.13 Voting on Licensing Any Gaming Office vote

resulting in approving, disapproving, revoking, suspending,

limiting or conditioning a license under this Code shall be by

ballot only; provided that in an emergency a phone vote may be

polled pursuant to Gaming Office Regulations. Should an applicant

disagree with the determination of the Gaming Office, the Gaming

Office shall hold a hearing to review its decision, within three

(3) working days from the date an applicant files his/her

disagreement with the Gaming Office. At the hearing, the burden

shall be the applicant to show cause why the Gaming Offices

disagreement was incorrect.

Section 3.14 Gaming Office Findings Following such hearing,

the Gaming Office shall, within three (3) working days reach a

determination concerning:

(a) the accuracy of the preliminary

certification of facts; and

(b) whether the license in question should be

granted, continued, suspended, revoked,

conditioned, or limited; and

24
(C) whether or not any other action

recommended to the Gaming Office including,

but not limited to forfeitures, should be

taken.

Section 3.15 Notification of Gaming Office Decision Within

three (3) working days following this determination, the Gaming

Office shall inform the subject in writing of that determination.

Section 3.16 Right to Appeal Unless otherwise contractually

agreed to, the subject shall have the right to appeal the

determination of the Gaming Office to the Tribal Court. Such

appeal must be filed with the Tribal Court in written form on or

before the tenth (10th) day following receipt of the written

determination of the Gaming Office. A determination of such appeal

by the Tribal Court shall be final and no further appeal may be

had. In any appropriate case which has been referred to the Tribal

Court for final action. The Tribal Court shall review, de novo,

the determination of the Gaming Office. The Courts action shall

be final and no further appeals may be had.

Section 3.17 Appointment of Director The Council, with the

advice and consent of the Gaming Office, shall appoint a Director

who shall be responsible for the day-to-day management of the

affairs of the Gaming Office as well as overseeing the

establishment and operation of all gaming activities. A detailed

background investigation shall be been conducted on the Director

before his appointment and the Gaming Office shall maintain

oversight of the Director on an ongoing basis. Preference will be

given to applicants with experience in legal gaming or law

enforcement. No one convicted of a felony of any kind or

misdemeanor related to illegal gambling or bribery can serve as

Director. The Director shall not have any personal interests in

the gaming activity. The Director may not gamble in the gaming

25
establishment nor have any personal financial interest in any

gambling by any gaming establishment patron.

Section 3.18 Directors Contract The Director shall be hired

on a contract for a period of at least two (2) years. The terms of

the contract will be negotiated with the Gaming Office and approved

by the Council. The Directors compensation shall be part of the

negotiations. Compensation for the Director shall not be based, in

whole or in part, on the profitability of the gaming operation.

Section 3.19 Termination of Director The Director shall be

terminated immediately and without the necessity of a vote of the

Council upon the Directors conviction of a federal or state court

of competent jurisdiction for any felony or for any misdemeanor

related to illegal gambling or bribery or upon conviction in the

Tribal Court of any charge that the Council finds relates to the

Directors honesty or ability to fulfill his duties. If the

Director is convicted of violating any part of this code, he shall

be immediately terminated. Additionally, the Director may be

terminated for inadequate performance of the duties required to be

performed or may additionally be terminated for associations or

conduct that would tend to bring the gaming operation into

disrepute.

Section 3.20 Duties of Director The Director shall, subject

to the approval of the Gaming Office, perform all duties, exercise

all powers, assume and discharge all responsibilities, and carry

out and effect all purposes of this Code relating to the regulation

of all gaming activity. In all decision, the Director shall act to

promote and ensure integrity, security, honesty, and fairness of

the operation and administration of all gaming activity. The

Directors duties shall include but not be limited to the

following:

26
(a) Negotiating contracts for payments by the

Tribe for the provision of security and other

professional services. Such contracts must be

approved by the Gaming Office and the Council

and shall not constitute a waiver of

jurisdiction by the Tribe;

(b) Correspond with the National Indian Gaming

Commission and do whatever is necessary to

complete compliance with the rules and

regulations of that agency. Specifically, the

Director shall arrange for an annual outside

audit of authorized gaming and will provide a

copy to the National Indian Gaming Commission.

(c) The Director will assure that all gaming

activity is conducted in a manner which

adequately protects the environment and the

publics health and safety;

(d) The Director will ensure that background

investigations are conducted pursuant to

section 2.09 on all primary management

officials and key employees of any gaming

establishment and that oversight of such

officials and their management is conducted on

an ongoing basis. The Director will recommend

to the Gaming Office, which shall have final

authority, on the granting of tribal licenses

for primary management officials and key

employees. The Director shall immediately

notify the National Indian Gaming Commission

of the issuance of such licenses. The

Director will review all applications and

background investigations to ensure that no

27
person shall be eligible for employment in or

with any part of the gaming operation if that

persons prior activities, criminal record (if

any), 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 gaming. The Director shall

notify the National Indian Gaming Commission

of the results of such background checks

before the issuance of such licenses.

(e) Hiring, pursuant to the approval of the

Gaming Office, such professional, clerical,

technical and administrative personnel as may

be necessary to carry out the provisions of

this Code.

(f) Reviewing all records, documents, and

anything else necessary and pertinent to

enforcement of any provisions of this Code.

(g) Recommend to the Gaming Office whether

sanctions should be imposed on any person

subject to the jurisdiction of this Code.

Section 3.21 Right of Inspection The Gaming Office, the

Director and their agents, inspectors, and employees have the

authority:

(a) To inspect and examine all premises

wherein gaming is conducted or gambling

devices or equipment are manufactured, sold or

distributed;

28
(b) To inspect all equipment and supplies in,

upon or about a gaming establishment, or

inspect any equipment or supplies wherever

located, which may, or have been used in the

gaining establishment;

(c) Summarily to seize and remove from a

gaming establishment (or whatever located) and

impound such equipment or supplies for the

purpose of examination, inspection, evidence

or forfeiture;

(d) To demand access to and inspect, examine

and audit all papers, books, and records of

applicants and licensees respecting any income

produced by any gaming business, and require

verification of income and all other matters

affecting the enforcement of the policy of or

any of the provisions of this Code;

(e) To seize and impound any patrons winnings

which the Gaming Office may have reasons to

believe may have been won or obtained in

violation of this Code pending a civil

forfeiture hearing on such seizure;

(f) For the purpose of administration and

enforcement of this Code the Gaming Office,

the Director and their investigative personnel

may, if deemed necessary by the Tribal

Council, have the powers of the peace officer

of the San Carlos Apache Tribe for purposes of

this Code only;

29
(g) Gaming Officer and the Director shall each

have full power and authority to issue

subpoenas and compel the attendance of

witnesses for hearing at any place within the

Reservation, to administer oaths and to

require testimony under oath. Any process or

notice may be served in the manner provided

for service of process and notices in civil

actions. The Gaming Office and the Director

may pay such transportation and other expenses

of witnesses as it may deem reasonable and

proper.

Section 3.22 Confidentiality of Information The Gaming

Office and the Director may refuse to reveal, in any court

proceeding the identity of any informant, or the information

obtained from the informant, or both the identify and the

information.

Section 3.23 Powers of Delegation The Gaming Office may

organize itself into a functional division as it may deem necessary

and from time to time alter such plan of organization as it may

deem expedient. The Gaming Office shall establish its own budget

for operations, including a budget for the Director, and acquire

such furnishings, equipment, supplies, stationery, books, motor

vehicles, and other things as it may deem necessary or desirable in

carrying out is functions, and incur such other expenses within the

limit of funds available to it, as it may deem necessary. With in

the limits of a Council approved budget, the Gaming Office 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 its duties and the operation of the Director

and Gaming Office may require. At the Councils discretion, said

budget may be reviewed and modified by the Council every six (6)

months. Upon the end of the budget year, any surplus which might

30
exist shall be refunded by the Council at their discretion. The

Gaming Office and the Director shall each keep and maintain a file

of all applications for licenses under this chapter, together with

a record of all action taken with respect to such applications.

The Gaming Office and the Director shall keep and maintain such

other files and records as they may deem desirable and all such

records may be open to public inspection as they may deem

appropriate, provided that the annual Gaming Office budget shall be

made available to any tribal member upon demand.

Section 3.24 Sanctions Any person who engages in activities

on property subject to the provisions of this Gaming Code without

a license, in violation of any license or terms imposed thereon, in

violation of terms of suspension, or in violation of the Code,

including any person who unlawfully trespasses upon any premises

licensed by this Code without the consent of the licensee and/or

the Gaming Office shall be guilty of a crime and be punished in

accordance with the provisions of Section 3.26 hereinafter.

Section 3.25 Limitations Period No fine shall be assessed

nor any action taken for any violation under the preceding section

unless a charge is filed in proper form with the Tribal Court

within two (2) years of the commission of the offense.

Section 3.26 Violations of Code - Punishment Any violation

of this Code shall be punished by a fine of no more than Five

Thousand Dollars ($5,000.00) for each separate count or violation,

or one (1) year in jail, or both. Each day of violation shall

constitute a separate count or violation under this Code. A

violator may also be required to pay court costs, storage fees, and

auction or sales fees. All property used or which may be used in

activities in each and every separate violation of this Code may

become the property of the Tribe; persons may be prohibited from

trespassing on premises licensed under this Code, licenses may be

suspended, revoked, or limited and/or establishments may be

31
forcibly closed. All such action shall be taken at the discretion

of the Gaming Office, subject to the right of appeal to the Tribal

Court. Winnings found to have been received in violation of this

Code are forfeited and become the property of the Tribe.

Section 3.27 Due Process Regarding Enforcement Actions The

Gaming Office shall promulgate regulations protecting due process

rights of all individuals subject to the enforcement of this Code.

Such regulations shall, at a minimum:

(a) provide standards for emergency or summary

suspension of license;

(b) provide fair notice and opportunity for

hearing regarding any revocation or suspension

of license, and regarding any enforcement

action taken pursuant to this Code; and

(c) provide the right to appeal, de novo, of

any Gaming Office disciplinary or enforcement

action to the Tribal Court.

Section 3.28 Patron Disputes

(a) Refusal to Pay Winnings Whenever the Gaming

Facility Operator refuses payment of alleged winnings to a patron,

and the Gaming Facility Operator and the patron are unable to

resolve the dispute to the satisfaction of the patron and the

dispute involves:

(1) At least five hundred dollars ($500), the

Gaming Facility Operator shall immediately notify

the Tribal Gaming Office. The Tribal Gaming Office

shall conduct whatever investigation it deems

necessary and shall determine whether payment should

be made; or

32
(2) Less than five hundred dollars ($500), the

Gaming Facility Operator shall inform the patron of

his or her right to request that the Tribal Gaming

Office conduct an investigation. Upon request of

the patron, the Tribal Gaming Office shall conduct

whatever investigation it deems necessary and shall

determine whether payment should be made.

(b) Notice to Patrons The Tribal Gaming Office shall

mail written notice by certified mail, return receipt requested, to

the Gaming Facility Operator and the patron of the decision

resolving the dispute within thirty (30) days after the date that

the Tribal Gaming Office first receives notification from the

Gaming Facility Operator or a request to conduct an investigation

from the patron.

(c) Effective Date of Decision The decision of the

Tribal Gaming Office is effective on the date it is received by the

aggrieved party as reflected on the return receipt.

(d) Review of Decision Within thirty (30) days after

the date of receipt of the written decision, the aggrieved party

may file a petition with the Tribal Gaming Office requesting a

review of the decision. The Tribal Gaming Office may set a hearing

on the matter or may make a decision based solely upon the prior

decision and other documentation provided to it by the patron and

the Gaming Facility Operator. The Tribal Gaming Office shall then

issue a written decision and mail it to the parties pursuant to the

procedures set forth in Section 3.28(b). The decision of the

Tribal Gaming Office shall be final and binding upon the patron and

the Gaming Facility Operator and shall not be subject to judicial

review, dispute resolution or other legal action.

Section 3.29 Independence of Gaming Office The Director,

Gaming Officers, members of the Council and their immediate

33
families shall receive no personal compensation, gift,

reimbursement or payment of any kind from any person doing or

wishing to do business with the Tribe relating to gaming nor with

any person wishing to obtain an unfair advantage in any authorized

wager on gaming. Any property received in violation of this

provision, including cash payments, shall be immediately forfeited

to the Tribe and the offending persons shall be prosecuted to the

fullest extent possible under the tribal law for accepting a bribe.

The Gaming Office shall cooperate to the fullest extent possible

with any Federal or State law enforcement agency to pursue

prosection under applicable Federal or State law.

34
CHAPTER IV

LICENSING OF GAMES

Section 4.01 Issuance of Tribal Gaming Licenses; Objections

The Gaming Office shall consult with appropriate law enforcement

officials concerning any gaming licenses it may issue. If, after

issuance of a gaming license by the Gaming Office, reliable

information is received that a primary management official or key

employee does not meet the standard established under Section 2.11

of this Code, the Gaming Office shall suspend such license and,

after notice and hearing, may revoke such license.

Section 4.02 Non-Transferability of License Any license

issued pursuant to the provision of this Code is valid only for the

person or entity at the place of business shown on the face

thereof. It is not assignable or otherwise transferable to any

other person or entity for any other location without approval of

the Director or Gaming Office.

Section 4.03 Granting of License -

Majority Vote To approve

of any license issued pursuant to this Code, a quorum of the Gaming

Office must be present with a majority vote of approval by said

quorum required. A license will not be issued to a person whose

license has previously been revoked pursuant to this code, or to

whom the issuance of renewal of a license has been denied, except

with the unanimous approval of the Gaming Office members.

Section 4.04 Licenses and Regulation of Class III Gaming

Activities; Tribal-State Compact Required The Gaming Office shall

follow each, every, and all of the requirements for licensing and

regulation of Class III gaming pursuant to the terms and conditions

of its compact with the State of Arizona entered into on August 11,

1993.

35
Section 4.05 Failure of Applicant to Disclose Material

Information An applicant for licensing shall make true and full

disclosure of all information to the Director and Gaming Office as

necessary or appropriate in the publics interest or as required in

order to carry out the policies of this Tribe relating to licensing

and control of the gaming industry. It is the duty of the

applicant to disclose all information material to whether the

applicants involvement with gaming would jeopardize or compromise

the Tribal interest, whether or not the applicant has been

specifically requested to provide that information. It shall

constitute a violation of this Code to fail to disclose, to mislead

or to misstate any such material information to the Director of the

Gaming Office, or to any licensees employer.

Section 4.06 Temporary Employment Licenses The Gaming Office

may issue a temporary employment license to any person or entity

applying for a license to work in a licensed gaming establishment

which shall be valid pending the background investigation of the

applicant. In no event shall such temporary license be valid for

longer than 180 days.

Section 4.07. Parameters of Licenses Violation of any

material provision of this Code or any of the Gaming Offices

regulations by a licensee, its agent, or employee shall be deemed

contrary to the public health, safety, morals, good order and

general welfare of the San Carlos Apache Tribe and the inhabitants

of the San Carlos Apache Reservation, and shall be deemed grounds

for refusing to grant or renew a license, suspension or revocation

of a license, or shall constitute grounds for the filing of charges

by the Gaming Office or Director. If the Tribe elects to

contractually agree to resolve disputes in a manner other than

revocation of a license, such contractual agreement shall supersede

any conflicting provisions of this section, so long as the

agreement provides a reasonable avenue for the Tribe to insure a

licensees compliance with all other aspects of this Gaming Code.

36
Acceptance of a gaining license or renewal on the part of the

licensee shall constitute the licensees agreement to be bound by

all of the regulations and conditions of the Director or Gaming

Office and by the provisions of this Code as the same are now, or

may hereafter be amended or promulgated, and to cooperate fully

with the Director and Gaming Office. It is the responsibility of

the licensee to keep informed of the contents of such regulations,

amendments, provisions, and conditions, and ignorance thereof will

not excuse violations.

Section 4.08. Licensing of Distributors The Gaming Office

may authorize, require and issue such annual licenses as the Gaming

Office by regulation may provide, to any person or entity to engage

in the selling, distributing, or otherwise supplying of gambling

equipment or paraphernalia for use in connection with licensed

gaming activity.

37
CHAPTER V

MANAGEMENT CONTRACTS

Section 5.01 Gaming Office Approval Required

(a) Any management contract entered into by the Tribe

for the operation and management of Class II and Class

III gaming activity must be submitted to the Gaming

Office for approval, but before approving such contract,

the Gaming Office shall require and obtain the following

information:

(1) the name, address, and other additional

pertinent background information on each

person or entity (including comprising such

entity) having direct financial interest in,

or management responsibility for such contract

and in the case of a corporation, those

individuals who serve on the board of

directors of such corporation and each of its

stockholders who hold (directly or indirectly)

10% or more of its issued and outstanding

stock;

(ii) a description of any previous experience

that each person listed pursuant to subsection

(i) has had with other gaming contracts with

Indian tribes or with the gaming industry

generally, including specifically the name and

address of any licensing or regulatory agency

with which such person has had a contract

relating to gaming.

38
(iii) Any further or additional information as may

be required under the Tribal/State compact entered

into between the Tribe and the State;

(iv) Any further or additional information as may

be required under existing rules and regulations for

management contracts required pursuant to IGRA;

(b) Any person listed pursuant to subsection (a) (i) shall

be required to respond to such written or oral questions

that the Gaming Office may propound in accordance with

its responsibilities under this section.

(c) For purposes of this Code, any reference to the

management contract described in Section 5.01(a) shall be

considered to include all collateral agreements to such

contract that relate to the gaming activity.

(d) After the Gaming Office has given its approval of a

management contract, the Gaming Office shall submit such

contract to the National Indian Gaming Commission for its

approval. Any such contract shall be void until the

National Indian Gaming Commission has approved it.

Section 5.02 Approval of Management Contracts The Gaming

Office may approve any management contract entered into by the

Tribe pursuant to this Chapter only if it determines that such

contract provides at least:

(a) for adequate accounting procedures that are

maintained, and for verifiable financial reports that are

prepared by or for the Council on a monthly basis;

39
(b) for access to the daily operations of the gaming to

appropriate tribal officials who shall also have a right

to verify the daily gross revenues and income made from

any such tribal gaming activity;

(C) for a minimum guaranteed payment to the Tribe that

has preference over the retirement of development and

construction costs;

(d) for an agreed ceiling for repayment of development

construction costs;

(e) for a contract term not to exceed five years, except

that, upon the request of the Tribe, the Gaming Office

may authorize a contract term that exceeds five years but

does not exceed seven years if the Gaming Office is

satisfied that the capital investment required, and the

income projections, for the particular gaming activity

require additional time;

(f) for grounds and mechanisms for terminating such

contract, but actual contract termination shall not

require the approval of the National Indian Gaming

Commission;

(g) for preference to Tribal members and nonmember

Indians in hiring of employees for the gaming

establishment.

(h) for all which may be required by the IGRA.

Section 5.03 Percentage of Net Revenue Fees

(a) A management contract providing for a fee based upon

a percentage of the net revenues of a tribal gaming

40
activity may be approved by the Gaming Office if such

percentage fee is reasonable in light of surrounding

circumstances. Except as provided in this Section, such

fee shall not exceed 30% of the net revenues;

(b) Upon request of the Council, the Gaming Office may

approve a management contract providing for a fee upon a

percentage of the net revenues of a tribal gaming

activity that exceeds 30% but not 40% of the net revenues

if the Gaming Office and Council are satisfied that the

capital investment required, and income projections, for

such tribal gaming activity require the additional fee.

Section 5.04 contract Disapproval The Gaming Office shall

not approve any contract if it determines that:

(a) Any person listed pursuant to Section 5.0l(a)(i):

(i) is an elected member of the Council;

(ii) has been or subsequently is convicted of

any felony or gaming offense;

(iii) has knowingly and willfully provided

materially important false statements of

information to the Gaming Office or the tribal

officials who negotiate such contracts or has

refused to respond to questions propounded

pursuant to Section 5.01(b); or

(iv) has been determined to be a person whose

prior activities, criminal record if any, or

reputation, habits, and associations pose a

threat to the public interest or to the

effective regulation and control of gaining, or

create or enhance the dangers of unsuitable,

unfair, or illegal practices, methods, and

activities in the conduct of gaming or the

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carrying on of the business and financial

arrangements incidental thereto;

(b) The management contractor has, or has attempted

unduly to interfere or to influence for its gain or

advantage any decision or process of tribal government

relating to gaming activity;

(c) The management contractor has deliberately or

substantially failed to comply with the terms of this

management contract or the provisions of this Code or any

regulations adopted pursuant to this Code or the Indian

Gaming Regulatory Act.

Section 5.05 Modifying or Voiding Contract The Gaming

Office, after notice and hearing, shall have the authority to

require appropriate contract modifications or may void any contract

if it subsequently determines that any of the provisions of this

Chapter have been violated. If the Tribe elects to contractually

agree to resolve disputes in a manner other than the revocation of

a license, such contractual agreement shall supersede any

conflicting provisions of this section, so long as the agreement

provides a reasonable avenue for the Tribe to insure a licensees

compliance with all other aspects of this Gaming Code.

Section 5.06 Conveying Interest in Land No management

contract for the operation of a gaming activity regulated by this

Code shall transfer or, in any other manner, convey any interest in

land or other real property, unless specific applicable statutory

authority exists and unless clearly specified in writing in said

contract.

Section 5.07 Fee for Investigation Cost The Gaming Office

shall require a potential contractor to pay a fee to cover the

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actual cost of the investigation necessary to reach a determination

required in Section 5.04 of this Chapter.

Section 5.08 Dispute Resolution If any dispute arises as to

the proper compliance with or interpretation of the foregoing

Sections and appendices, the procedures set forth in this Section

shall apply.

(a) Notice The party asserting noncompliance or seeking an

interpretation shall serve written notice on the other party or

parties. The notice shall identify the specific Ordinance

provision alleged to have been violated or in dispute and shall

specify in detail the factual basis for the alleged noncompliance

or the proffered interpretation of the Ordinance provision for

which interpretation is sought.

(b) Voluntary Resolution Representatives of the Tribe and

the other party or parties shall meet within ten (10) days

following receipt of the notice in an effort to resolve the

dispute.

(c) Arbitration Procedures If the dispute is not resolved

to the satisfaction of the parties within thirty (30) days after

service of the notice set forth above, the dispute shall be

adjudicated through arbitration in Arizona or such other place as

the parties may agree as follows:

(1) The parties shall attempt to agree upon one

arbitrator with expertise in the subject matter of

the dispute.

(2) If the parties are unable to agree on an arbitrator,

each party shall select an arbitrator within ten

(10) days of the commencement of the arbitration and

the two (2) arbitrators shall mutually appoint a

third arbitrator within twenty (20) days of their

appointment. If the two (2) arbitrators are unable

to agree on the appointment of a third arbitrator

within twenty (20) days, the third arbitrator shall

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be appointed by the American Arbitration

Association.

(3) The arbitrator(s) shall confer with the parties

immediately after appointment to determine an

arbitration schedule including whether and to what

extent discovery is required. The arbitrator(s) may

set the matter f or an evidentiary hearing or oral

argument, or may dispose of the dispute based upon

written submissions only.

(d) Arbitration Costs The cost of arbitration shall be

borne equally by the parties, with one-half of the expenses charged

to the Tribe and one-half charged to the other party or parties.

the parties shall bear their own costs and attorneys fees

associated with their participation in the arbitration unless the

decision of the arbitrator shall specify otherwise.

(e) Arbitration Decision The decision of the majority of

the arbitrator(s) shall be final, binding and unappealable.

Failure to comply with judgment upon the award entered in such

arbitration proceeding shall be deemed a breach of the Ordinance.

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CHAPTER VI

AUDITING AND INTERNAL CONTROL

Section 6.01 Minimum Procedures for Control of Internal Fiscal

Affairs The Gaming Office shall promulgate regulations for

control of internal fiscal audits of all gaming operations. At a

minimum, those regulations shall:

(a) Prescribe minimum procedures for safeguarding the

gaming operations assets and revenues, including

recording of cash and evidences of indebtedness,

mandatory count procedures. Such procedures shall

establish a control environment, accounting system, and

control procedures that safeguard the assets of the

organization, assures that operating transactions are

properly recorded, promote operational efficiency, and

encourage adherence to prescribed policies;

(b) Prescribe minimum reporting requirements to the Gaming

Office;

(c) Provide for the adoption and use of internal audits,

by internal auditors and Certified Public Accountants

licensed to practice accounting in the State of Arizona.

(d) Formulate a uniform code of accounts and accounting

classifications to assure consistence, comparability and

effective disclosure of financial information. Such code

shall require that records be retained that reflect

statistical drop (amount of cash wagered by patrons),

statistical win (amount of cash won by the gaming

operating) and the percentage of statistical win to

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statistical drop, or provide similar information, for

each type of game, or each gaming device.

(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 section (f) be maintained

for a minimum of five (5) years.

Section 6.02 Gaming Office Oversight of Internal Fiscal

Affairs The Gaming Office shall, by regulation, require audits of

the financial statements of all gaming operations. Such audits

must:

(a) be made by independent Certified Public Accountants

holding a permit issued by the State of Arizona to

practice public accounting;

(b) include an opinion that the financial statement

fairly and accurately present the financial condition of

the gaming operation in accordance with generally

accepted accounting principals (GAAP) and in accordance

with the standards of the accounting profession

established by rules and regulations of the Kansas State

Board of Accountancy and the American Institute of

Certified Public Accountants;

(c) disclose whether the accounts, records, and control

procedures maintained by the gaming operation are as

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required by the regulations promulgated by the Gaming

Office; and

(d) provide for a preliminary review of the internal

control structure, upon adoption of the polices and

procedures by the entity, to disclose any deviation from

prescribed rules and regulations and report such findings

to the Gaming Office and management.

Section 6.03 Gaming Offices Right to Conduct Audit The

Gaming Office shall be able to retain its own appointed

accountants, or direct an accountant employed by the Tribe to

conduct its own audit of any gaming operation.

Section 6.04 Prohibition Against Embezzlement Any delay,

maneuver or action of any kind which in the opinion of the Director

is effectuated by any licensee to unlawfully divert gaming or other

proceeds properly belonging to the Tribe shall constitute grounds

for taking disciplinary action against that licensee. If the

Gaming Office finds an unlawful diversion was attempted, it shall

sanction the licensee. Sanctions may include fining, revoking,

suspending, limiting or refusing to renew the license.

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CHAPTER VII

AUTHORIZATION OF GAMING

Section 7.01 Prohibition Against Gaming No person duly

authorized by the Gaming Office shall engage, conduct or condone

any game unless such game is approved by this Gaming Office and

regulations for rules governing such game have been duly

promulgated by this Gaming Office.

Section 7.02 Grace Period The prohibition contained in

Section 7.01 shall not apply to those games already being played as

of the date of enactment of this Code, provided however, that the

licensee conform to the rules promulgated hereunder within five (5)

days of such promulgation.

Section 7.03 Authorization of Gaming The Gaming Office may

authorize the playing of any game not prohibited by the laws of the

State of Arizona. The Gaming Office shall promulgate regulations

for rules governing all authorized games,including regulations

governing the equipment (chips, dice, cards, tiles, etc.) used in

such game. Any provision in the Tribes Compact with the State of

Arizona providing for notice to and comment from the state, shall

be complied with before any game is authorized by the Gaming

Office.

Section 7.04 Approval of Gaming Equipment The Gaming Office

shall have the discretion to review and approve all gaming

equipment and other devices used in the gaming operation as to

quality, design, integrity, fairness, honesty and suitability.

(a) The Gaming Office may require a prototype or sample

of any model of gaming equipment or other device used in

the gaming operation to be placed in the custody of the

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Director and retained by him as a control for comparison

purposes.

(b) Any evidence that gaming equipment or other devices

used in the gaming operation has been tampered with or

altered in any way which would affect the integrity,

fairness, honesty or suitability of the equipment or

device shall be immediately reported to the Gaming

Office.

Section 7.05 Posting of Rules The Rules of each authorized

game offered at any duly licensed establishment shall be posted in

a conspicuous location and shall be clearly legible.

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CHAPTER VIII

EXCLUSION OR EJECTION OF INDIVIDUALS

Section 8.01 List of Undesirables The Gaming Office may, by

regulation, provide for the establishment of a list of persons who

are to be excluded or ejected from any duly licensed gaming

operation. The list may include any person whose presence in the

gaming establishment is determined by the Gaming Office to pose a

threat to the interests of the Tribe, the State of Arizona, or to

licensed gaming. Race, color, creed, national origin or ancestry

or sex must not be grounds for placing the name of a person on the

list.

Section 8.02 Notice and Opportunity to be Heard The Gaming

Office shall promulgate regulations providing fair notice and

opportunity to be heard to any individual whose name is being

contemplated by the Tribe to be placed on the list referred to in

section 8.01. Such regulations must provide the person an

opportunity to show cause why his name should be deleted from the

list. The individual may appeal any decision of the Gaming Office

to place his name on the list to Tribal Court.

Section 8.03 Prohibition Against Listed Individuals It shall

be a violation of this Code for any licensee to knowingly fail to

exclude or eject from the gaming establishment any persons placed

on the list referred to in section 8.01. It shall a violation of

this Code for any person whose name appears on the list referred to

in section 8.01 to enter into or engage in any game at a duly

licensed gaming establishment.

Section 8.04 Prohibition Against Certain Individuals It

shall be a violation of this Code for any licensee who knowingly

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fails to exclude or eject the gaming establishment any individual

who:

(a) is visibly under the influence of liquor or any

narcotic or such other substance; or

(b) is under the age of eighteen years.

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CHAPTER IX

CHEATING

Section 9.01 Unlawful Acts. It is unlawful for any person

(a) to alter or misrepresent the outcome of a game or

other event on which wagers have been made after the

outcome is made sure but before it is revealed to the

players;

(b) to place, increase or decrease a bet or to determine

the course of play after acquiring knowledge, not

available to all players, of the outcome of the game or

knowledge of any event that affects the outcome of the

game or knowledge that is the subject of the bet or

wager;

(c) to aid anyone in acquiring such knowledge as set

forth in subparagraph (b), for the purpose of increasing

or decreasing a bet or wager, or for the purpose of

determining the course of play contingent upon that event

or outcome;

(d) to claim, collect or take, or attempt to claim,

collect or take, money or anything of value in or from a

gambling game with intent to defraud, without having made

a wager contingent thereon, or to claim, collect or take

an amount greater than the amount won;

(e) knowingly to entice or induce another to go to any

place where a gambling game is being conducted or

operated in violation of the provisions of this chapter,

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with the intent that the other person play or participate

in that gambling game;

(f) to place or increase a bet or wager after acquiring

knowledge of the outcome of the game or event which is

the subject of the bet or wager, including past-posting

and pressing bets;

(g) to reduce the amount wagered or cancel the bet after

acquiring knowledge of the outcome of the game or other

event which is the subject of the bet or wager, including

pinching bets; and

(h) to manipulate with intent to cheat, any component of

a gaming device in a manner contrary to the designed and

normal operational purpose for the component, with

knowledge that the manipulation affects the outcome of

the game or with knowledge of any event that affects the

outcome of the game.

Section 9.02 Prohibition Against Electronic Aids Except as

specifically permitted by the Director with approval of the Gaming

Office, no person shall possess with the intent to use, or actually

use, at any table game, either by himself or in concert with others

any calculator, computer or other electronic, electrical, or

electromechanical device to assist in projecting an outcome at any

table game, to keep track of or analyze the cards having been

dealt, to change the probabilities of any table game or the playing

strategies to be utilized.

53
CHAPTER X

NATIONAL INDIAN GAMING COMMISSION

AND TRIBAL-STATE COltPACTS

Section 10.01 National Indian Gaming Commission -

Regulations

Notwithstanding any provision in this Gaming Code or any regulation

promulgated thereunder, the Gaming Office is fully empowered to

comply with all regulations promulgated by the National Indian

Gaming Commission, including but not limited to, all requirements

to report ordinances, contracts, license applications, background

checks, and other information to the National Indian Gaming

Commission.

Section 10.02 National Indian Gaming Commission -

Assessment

Notwithstanding any provision in the Gaming Code or any regulation

promulgated thereunder, the Gaming Office is fully empowered to

comply with all assessments authorized by the National Indian

Gaming Commission. Such assessments shall be paid from the

Treasury of the San Carlos Apache Tribe.

Section 10.03 Compact with the State of Arizona

Notwithstanding any provision in this Gaming Code or any regulation

promulgated thereunder, the Gaming Office is fully empowered to

comply with the provisions of the compact between the Tribe and the

State of Arizona executed on August 11, 1993.

54
CHAPTER XI

MISCELLANEOUS

Section 11.01 Security Each licensed gaming establishment

must provide for reasonable security. All security personnel must

be licensed by the Gaming Office.

Section 11.02 Maintenance of Code and Regulations Each

licensee shall obtain, maintain and keep current a copy of the

Gaming Code and regulations promulgated thereunder, which shall be

located at the premises used for the conduct of a licensed

activity. The Code and regulations shall be produced by the

licensee and shown to any person upon demand. That licensee may

not have a current copy of the Code, or each of the rules of the

Gaming Office, shall not in way diminish the licensees obligation

to abide by the Code and regulations.

Section 11.03 Compliance with Other Laws The construction,

maintenance and operation of any facility in which gaming

activities are to take place shall be in a manner which adequately

protects the environment and the publics health and safety and

shall comply with any otherwise applicable tribal and federal laws

relating to environmental protection and public health and safety.

Section 11.04 Amendments All provisions of this Gaming Code

are subject to amendment by the San Carlos Apache Tribal Council.

All regulations promulgated by the Gaming Office are subject to

proper revision, repeal or amendment by the Gaming Office.

Section 11.05 Severability If any provision of this Code, or

its application to any purpose or circumstance, is held invalid by

a court of competent jurisdiction, the full remainder of the

55
provision, or the application of the provision through another

person or circumstances, shall not be affected.

Section 11.06 Designated Agent The designated agent for

service of process as required by IGRA is the Director of the

Tribal Gaming Office;

Section 11.07 Law Enforcement The designated law

enforcement agency as required by IGRA is the San Carlos Apache

Police Department. The procedures set forth in Section 2.09 above

describe the steps taken for a complete investigation. Criminal

history checks shall be processed both on a State and Federal

level.

END OF THE TRIBAL GAMING CODE OF THE SAN CARLOS APACHE TRIBE DULY

ADOPTED THIS _________

DAY OF __________, 199_.

TRIBAL CHAIRPERSON

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