THE SAULT STE. MARIE TRIBE OF

C1flN~tWA IWI~lAW~

206 GREENOUGH STREET

SAULT STE. MARIE, MICHIGAN

49783

(906) 635-6050

~ 1~.L RESOLUTION NO: ~ /

ADOPTION OF TRIBAL CODE CHAPTER 42: GAMING ORDINANCE

WHEREAS, the Sault Ste. Marie Tribe of Chippewa Indians is in need

of a new gaming ordinance to comply with the Indian Gaming

Regulatory Act, the National Indian Gaming Commission Regulations

and the Tribal-State Compact.

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the

Sault Ste. Marie Tribe of Chippewa Indians hereby adopts the

attached Tribal Code, Chapter 42: Gaming Ordinance, to take effect

as provided in the ordinance.

CERTIFICATION

We the undersigned, as Chairman and Secretary of the Sault Ste.

Marie Tribe of Chippewa Indians, hereby certify that the Board of

Directors is composed of 13 members, of whom /E3 members

constituting a quorum were present at a meeting thereof duly

called, noticed, convened and held on the ~ day of~~Ve/~Aef~

1993; that the foregoing resolution was duly adopted at said

meeting by an affirmative vote of /~ members for, ~ members

against, ~ abstaining; and that said resolution has not been

rescinded or amended in any way

Bernard Bou~schor, Chairmah

Sault Ste. Marie Tribe

of Chippewa Indians

~r~ara i~ine, ~ecrecary

Sault Ste. Marie Tribe

of Chippewa Indians

i~IcA~
t .

CONTENTS

42. 101

42.102

42. 103

42.104

42.105

42.106

42. 107

42.108

TRIBAL CODE

CHAPTER 42:

GAMING ORDINANCE

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42-7

42-7

42-7

42-8

42-8

42-8

42-8

SUBCHAPTER II: DEFINITIONS

42.20 1 General Provisions

42.202 Board of Directors

42.203 Class I Gaming

42.204 Class II Gaming

42.205 Class ifi Gaming

42.206 Commission

42.207 Commissioner

42.208 Director

42.209 Electronic Games of Chance

42.210 Game and Gambling Game

42.211 Gaming and Gamblin&

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42-9

42-9

42-9

42-10

42-10

42-10

42-11

42-11

42-11

42-11

SUBCHAPTER I: PRELIMINARY MATFERS

Scope

Purpose

Authority

Interpretation and Relation to Other Laws

Severability and Non-Liability

Implied Consent

Effective Date

Repealer

42-1
42.212 .

42-11

42.213 .

42-12

42.214 42-12

42.215 42-13

42.216 42-13

42.217 42-13

42.218 42-14

42.219 42-14

42.220 42-14

42.221 42-15

42.222 42-15

42.223 42-15

42.224 42-15

42.225 42-15

42.226 42-15

42.227 42-16

42.228 42-16

42.229 42-16

42.230 42-16

42.231 42-16

42.232 42-16

42.233 42-17

SUBCHAPTER ifi: OWNERSHIP AND OPERATION OF LICENSED GAMING

ESTABLISHMENTS

42.301 Tribal Ownership ofLicensed Gaming Establishments 42-17

42.302 Revenues to Benefit Tribe 42-17

42.303 Management by Economic Development Commi~si 42-18

42.304 Gaming Managers 42-18

SUBCHAPTER 1V: TRIBAL GAMING COMMISSION

42.401 Establishment ofCommission 42-19

42.402 General Powers and Duties ofCommission 42-19

42.403 Compensation fbr Commissioners 42-2 1

42-2

Gaming Consuhant

Gaming D~4ce

Gaming Employee

Gross Revenue

IGRA

Indian Land

Key Employee

License

Licensed Gaming Establishment

Licensee

Management Contract

Native American or Indian

Net Revenue

NIGC

Operating Expense

Patron

Person

Primaiy Management Official

Reservation

Tribal Court

Tribal - State Compact or Compact

Tribe
42.4O5

42.406

42.407

42.408

42.409

42.410

42.411

42.412

42.413

42.414

42.4 15

42.416

42.417

42.418

42.419

42.420

42.42 1

42.422

42.423

42.506

42.507

42.508

42.509

42.510

Employees,

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42-21

42-22

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42-22

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42-24

42-24

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42-25

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42-26

42-27

42-27

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42-28

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42-31

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42-32

42.404 Selection of Chairperson

Meetings

Quarterly Report

Appointment of Director

Directo?s Contract

Teiuunation of Director

Duties ofDirector

Commission Budget

Restrictions on Commissioners and Director

Applications and Investigations

Licensing Decisions

Right to a Hearmg

Confidentiality

Commission Regulations

Prior Notice ofActions

Request for Commission Action

Independence ofCommission

Relation to Gaming Management

Legal Advisor

Approval of Gaming Devices

42.424 List ofUndesirables

SUBCHAPTER V: LICENSES

42.501 Types of licenses

42.502 Class IGaming

42.503 Licensing of Class H Gaming

42.504 Licensing of Class ifi Gaming

42.505 Licensing of Primary Management Officials, Key

and Gaming Consultants

Licensing of Gaming Device Suppliers

Non-Transferability ofLicense

Granting ofLicense

Consultation With Law Enforcement

Fees

42-3
42-32

42-33

42-33

42-34

42-34

SUBCHAPTER VI: MANAGEMENT CONTRACTS

42.601 _____

. .

42-35

42.602 42-37

42.603 42-3 8

42.604 42-39

42.605 42-39

42.606 42-40

42.607 42-40

42.608 42-40

42.609 42-40

42-40

42-41

42-41

42.704 _______

42-42

42.705 42-42

42.706 42-42

42.707 42-42

42.708 42-43

42.709 42-43

42.710 42-44

42.711 ______

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42.712 42-44

42.713 42-44

42.714 _____

42-44

42.715 42-45

42.716 42-45

42.511

42.5 12

42.5 13

42.514

42.5 15

Ninety Day Limitation; Grace Period

Reports to NIGC; Processing ofApplications.

Disclosure by Applicant

Violations by Licensee

Suspension or Revocation ofLicense.

Commission Approval Required

Requirements for Approval

Contract Disapproval

Modif~ing or Voiding Contract

Conveying Interest in Land

Fee for Costs of Investigation

Approval by Board ofDirectors

Submission to NIGC

Notice to State of Michigan

SUBCHAPTER VII: GENERAL PROVISIONS

42.701 Accounting Records

42.702 Independent Audit

42.703 Notices to Patrons

Minimum Standards for Gaming Devices

Installation of Gaming Devices

Compliance With Bank Secrecy Act...

Sale ofAlcoholic Beverages

Native American Preference

Employee Benefits

Altered Gaining Devices

Mmimum Age ofGaming Participants and Patrons

Visibly Intoxicated Patrons

Compliance with Federal Law and Regulations..

Envfronme~nt, Health and Safety

Internal Controls

Background Checks on Vendors and Lessors...

42-4
42.717 Oilers and Gifts to Officials and Employees .

SUBCHAPTER Vifi: ENFORCEMENT AND PENALTIES

42.801 Permitted Activity

42.802 Prohibited Activity -

Generally

42.803 Exceptions

42.804 Enumeration of Unlawful Acts

42.805 Jurisdiction and Procedure

42.806 Enforcement

42.807 Remedies

42.808 Limitations Period.

42.809 Parties to a Violation

Current Ordinance

Effective date December 9, 1994.

AdoptedbyTnbalResolutionNo. 93-143, November 2, 1993.

Section 42.224 was amended prior to the ordinance taking effect by Resolution No. 94-152, December 2,

1994.

Apçnwed ,as amended, by the Cimirinan of the National Indian Gaming Commmioa under 25 CFR Pail

522 on December 9, 1994.

Compact

A Tribal-State Compact for the Conduct of Tribal Class III Gaming by the Tribe was executed on August

20, 1993.

The Conçat was approved by the Seaietaiy of the Interior wider 25 USC §271(kdX8) on November 19,

1993, and notice was published in the Federal Register on November 30,1993,58 FR 63262.

Pthr Ord~

1. Blip Control Ordinance

The Bingo Control Ordinance~ Tribal Code Chapter 43, was ad~pted by Tribal Resolution 2-19-85 on

Fcbnmxy 19,1985. It was repealed by §42.107 ofthe cwruzt ordinance.

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42-46

42-47

42-47

42-47

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42-51

HISTORY NOTE

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Amendments

Tribal Resolution 12-04-89A, adopted December 4, 1989, amended §~ 8D, 43.103 and 43.403 to allow

non-tribal members to conduct bingo.

2. MiWonaire Party Gaming Ordinance

11~ Millionaire Party Gaining Ordinance, Tribal Code Chapter 42, was adopted by Tribal Resolution 11-

04-85C on November 4, 1985. It was repealed by §42.107 of the ~nrmt ordinance.

Amendments

Tribal resolution 5-15-86, adopted May 20, 1986, provided for limited non-Indian employment by

amending former §42.504.

Tribal resolution 7-26-86B, adopted July 26, 1986, amended f~nner §42. 703.

Tribal resolution 1-1547, adopted January 20, 1987, am~led former §42.703.

Tribal resolution 3-2148, adopted March 21, 1988, amended former §42.203 to authorize raffles and

pedltab&

Tribal resolution 5-2Z-88B, adopted May 28, 1988, amended former §42.201 to provide for the Kewadin

She~ Casin~

Tribal resolution 4-9-91, adopted April 9, 1991, and reaffirmed by ihe Board of Directors on April 23, 1991,

amended former §~ 42.504,42.702 and 42. 703.

Cases:

United States v. Dakota 666 F Supp 959 (WD Mich 1985) - casino operated by Fred Dakota enjoined as

violative of the Organized Crime Control Act

United States v. Dakota 796 F2d 186(6th Cir 1986) - affirms above decision.

United States v. Bay Mills Indian Community 692 F Supp 717 (WD Mich 1988) - suit by US to ergoin

casino gaining by Michigan tribes dismissed; US remedy is criminal prosemtions.

United Slates v. Bay Mills Indian Community 880 F2d 415(6th Cir. 1989) -

grants dismissal of appeal in the above case after a sottlernent by d~ parties.

Sault S~ Mario Tribe v. Michigan No.92-1683(6th Cir 9/15/93), 1993 US App LEXIS 23460 -

gaining

case under IGRA regarding bad faith in negotiating a ~npact appeal of dismissal of the state from the case on 11th

Amendment grc*mds was dismissed as interlocutory.

42-6
TRIBAL CODE

CHAPTER 42:

GAMING ORDINANCE

SUBCHAPTER L~ PRELIMINARY MATFERS

42.101 Scope

This Chapter governs the conduct of gaming within the jurisdiction of the Tribe,

provides for the op~tion ofTribal licensed gaming establishments, prohibits non-complying

gaming activities and provides remedies for violations ofthis Chapter.

42.102 Purpose

The Board ofDirectors hereby finds that the gaming industiy is vitally important to

the economy ofthe Tribe and the general welfare ofits members. The continued growth and

success of gaming is dependent upon public confidence and trust that gaming is conducted

honestly, and that gamiJIg is free from ~nniiia1 and corruptive demerits. 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.

Therefore, all estabhshments where gaming is conducted and where gaming devices are

operated niust be licensed, controlled and operated to protect public safety, morals, good

order and general welfare, and to foster the stability and ~iccess of gaming.

42.103 Authority

The authority lbr this Chapter is Ailicle VII, Sections 1(d), (g), (h), (k) and (m) ofthe

Tribal Constitution; the Organized Crime Control Act, 18 U.S.C. § 1855(e); and the I(RA.

42.104 Jnterpretation and Relation to Other Laws

(1) In its intapi~aiion and apphcation the provisions ofthis Chapter shall be held to

be minimum requirements and shall be liberally construed in favor ofthe Tribe.

42-7
(2) This Chapter is enacted pursuant to and intended to be in conformity with the

IGRA, NIGC regulations and the Tribal-State Compact. The applicable provisions of IGRA,

NIGC regulation and the Compact control over any conflicting provision of this Chapter.

42.105 Severability and Non-Liability

(1) If any section, provision, or portion of this Chapter is adjudged to be

unconstitutional or invalid by a court ofcompetent jurisdiction, the remainder ofthis Chapter

will remain unaffected.

(2) The Tribe declares that there is no liability on the part ofthe Tribe, its agencies,

agents, or employees for any damages which may occur as a result of reliance upon or

confomnty with the requirements ofthis Chapter. The Tribe by adoption ofthis Chapter does

not waive its sovereign immunity in any respect.

42.106 Implied Consent

Entry upon Indian land without the permission of the Tribe is prohibited. Such

pennission where given is expressly conditioned upon the consent ofthe person entering such

land to the jurisdiction ofthe Tribe for purpose of enforcing this Chapter. Entiy made in any

manner which is not in conformity with the provisions of this Chapter is made without

consent. Any person who enters upon Indian land shall be deemed to have given consent to

the jurisdiction ofthe Tribe for purposes of enforcing this Chapter.

42.107 Effective Date

This Chapter shall take effect upon its approval or substitute approval by the

Chairman of the NICIC under 25 CFR Part 522.

42.108 Repealer

(1) The fbllowing Tribal ordinances, together with all amendments and additions to

those ordinances, are hereby repealed in their entirety:

(a) the Millionaire Party Gaming Ordinance, adopted November 4, 1985

by Tribal Resolution 1 l-04-85C; and

(b) the Bingo Control Ordinance, adopted February 19, 1985 by Tribal

Resolution 2-19-85.

42-8
(2) When this Chapter imposes greater restrictions than those contained in other

previously enacted Tribal ordinances, codes, or resolutions, the provisions of this Chapter

shall govern.

SUBCHAPTER I: DEFD4ITIONS

42.201 General Provisions

In construing the provisions of this Chapter, unless otherwise plainly declared or

clearly apparent from the context:

(1) words in the present tense shall include the future tense;

(2) words in the masculine, femrnme and neuter genders shall include all genders; and

(3) words in the singular shall include the plural, and in the plural shall include the

sm~.

42.202 Board of Directors

Board of Directors means the Board of Directors ofthe Tribe.

42.203 Class I Gaming

Class I Gaming means social gaines played solely for prizes of minimal value or

traditional forms of Indian gaming engaged in by individuals as a part of; or in connection

with, Tribal ceremonies or celebrations.

42.204 Class II Gaming

uClass II Gaming means:

(1) the game of chance commonly known as bingo (whether or not electronic,

computer, or other technologic aids are used in connection therewith):

(a) which is played for prizes, including monetaly prizes, with cards bearing

numbers or other designations;

42-9
(b) in which the holder ofthe card covers such numbers or designations when

objects, similarly numbered or designated, are shown or electronically determined; and

(c) in which the game is won only by the first person covering a previously

designated arrangement ofnumbers or designations on such cards, including (if played

in the same location) pull tabs, lotto, punch boards, tip jars, instant bingo, and other

games similar to bingo; and,

(2) those card games actually operated by the Tribe on or before May 1, 1988, to

the extent ofthe nature and scope ofthe card games on or before such date.

(3) card games that are:

(a) explicitly authorized by the State of Michigan; or

(b) are not explicitly prohibited by the laws ofthe State of Michigan and are

played at any location in the State of Michigan;

but only if such card games are played hi conformity with those laws and regulations (if any)

of the State of Michigan regarding hours and periods of operation of such card games or

limitations on wagers or pot sizes in such card games.

(4) The term class II gaming does not include:

(a) any banking card games which are not included in sub. (2); or

(b) electronic or electromechanical f~csimiles of any game of chance or slot

machines of any kind.

42.205 Class Ill Gaming

Class ifi Gaming means all forms of gaming that are not class I or class II gaming.

42.206 Commission

Commission means the Tribal Gaming Commission.

42.207 Commissioner

Commissioner means one ofthe members ofthe Commission..

42-10
42.208 Director

Director means the Director ofthe Commis~ion appointed by the Board of Directors

as provided in §42.407.

42.209 Electronic Games of Chance

Electronic Games ofChance means gambling games of chance featuring coin drop

and payout as well as printed tabulations, whereby the software of the device predetermines

the presence or lack of a winning combination and payout. Electronic games of chance are

defined as a microprocessor-controlled electronic device which allows a player to play games

of chance, which may be affected by an element of skill, activated by the insertion of a coin

or currency, or by the use of a credit, and awards game credits, cash, tokens, or replays, or

a written statement of the players accumulated credits, wbich written statements are

redeemable for cash.

42.210 Game and Gambling Game

Game and Gambling Game means any game played with cards, dice, equipment

or any mechanical, electromechanical or electronic device or machine for money, property,

checks, credit or any representative ofvalue, including, without limiting the generality of the

foregoing, faro, monte, roulette, keno, bingo, fin-tan, blackjack (21), seven-and-a-haIf~

kiondike, craps, poker, chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,

cheniin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or

percentage game or any other game or device approved by the Commission, but does not

include games played with cards in private homes or residences in which no person makes

money for operating the game, except as a player.

42.211 Gaming and Gambling

Gaming and Gambling means to deal, operate, carry on, conduct, maintain or

expose for play any game as defined by this Chapter.

42.212 Gaming Consultant

Gaming Consultant means any person paid by the Tribe, the Commission, a licensed

gaming establishment, or a management contractor for professional, consulting or advisory

services related to gaming, or to perform any of the functions of a primary management

official or key empioyee, as an independent contractor and not an employee. However, the

term does not include an attorney wiith a contract approved under 25 USC §81 or §476.

42-11
42.2 13 Gaming Device

Gaining Device means any equipm~it or mechanical, electromechanical or electronic

contrivance, component or machine used remotely or directly in connection with gaming or

any game which affects the result of a wager by determining win or loss. The term includes

a system for processing information which can alter the normal criteria for random selection,

which affects the operation of any game or which determines the outcome of a game. The

term does not includes a system or device which affects a game solely by stopping its

operation so that the outcome remains undetermined.

42.214 Gaming Employee

(1) Gaming Employee means any person connected directly with the operation of

a licensed gaming establishment, including:

(a) accounting or internal auditing personnel who are directly involved in any

recordkeeping or the examination of records associated with revenue from gaming;

(b) boxmen;

(c) cashiers;

(d) change personnel;

(e) counting room personnel;

(f) dealers;

(g) employees of manufacturers or distributors of gaming devices operated on

any gaming establishment who have keys for slot machines or who accept and

transport revenue from the slot drop;

(f) floormen;

(g) hosts or other persons empowered to extend credit or complimentary

services;

(h) keno runners;

(i) machine mechanics;

(j) secuætypersonnel

42-12
(k) s)~iifl or pit bosses;

(1) shills;

(m) supervisors or managers; and

(n) ticket writers.

(2) Gaming employee does not include bartenders, cocktail waitresses or other

persons engaged exclusively in preparing or serving food or beverages.

42.2 15 Gross Revenue

Gross revenue means the total revenue from all sources of a gaming operation

before operating expenses but after all gaming wins. The rules and regulations of the

American Institute of Certified Public Accountants defining gross revenues in a gaming

operation are adopted by this Chapter as if filly set forth herein. This definition may be

further defined by regulations promulgated by the MGC.

42.216 IGRA

IGRA means the Indian Gaming Regulatory Act, Pub.L. 100-497, 102 Stat. 2467,

the main provision of which are codified at 25 USC §2701 ~t ~and any subsequent

amendments.

42.2 17 Jndian Land

Indian land means:

(1) land within the limits of the Reservation; or

(2) land over which the Tribe exercises governmental power and that is either:

(a) held in trust by the United States for the benefit of the Tribe or a

member of the Tribe; or

(b) held by the Tribe or a member of the Tribe subject to restriction by

the United States against alienation.

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.._

-

....~-.,..... .

-......~...; r .~ ,.~ ~_--._ - .-.---r:,.pt~rt..-

42.218 Key employee

Key employee means:

(1) A person who performs one or more of the following functions:

(a) bingo caller;

(b) counting room supervisor;

(c) chief of security;

(d) custodian of gaming supplies or cash;

(e) floor manager;

(f) pit boss;

(g) dealer;

(h) croupier;

(i) approver of credit; or

(j) custodian of gaming devices including persons with access to cash and

accounting records within such devices.

(2) Ifnot otherwise included, any other person whose total cash compensation is in

excess of$50,000 per year.

(3) If not otherwise included, the four most highly compensated persons in the

gaming operation.

42.2 19 License

License means any license issued under Subchapter V ofthis Chapter.

42.220 Licensed Gaming Establishment

Licensed Gaming Establishment means any premises licensed under §42.503 or

§42.504 in or upon which gaming takes place.

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42.22 1 Licensee

Licensee means any person to whom a license has been issued under the provisions

of this Chapter.

42.222 Management Contract

Management Contract means any contract, subcontract or collateral agreement

between the Tribe and a contractor or between a contractor and a subcontractor if such

contract or agreement provides for the management of all or a part of a licensed gaming

establishment that has been approved under Subchapter VI ofthis Chapter.

42.223 Native American or Indian

~Native American or Indian means any person who is subject to federal criminal

jurisdiction under the Major Crimes Act, 18 USC § 1153.

42.224 Net Revenue

Net Revenue means gross gaming revenues of an Indian gaming operation less:

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

(2) total gaming-related operating expenses, excluding management fees.

42.225 NIGC

NIGC means the National Indian Gaming Commission, established by IGRA, 25

USC §2704.

42.226 Operating Expense

Operating expense means any expense incurred in the daily operation of a licensed

gaming establishment, including items specifically designated as operating expenses in a

management contractor regulation adopted by the Commission.

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42.227 Patron

Patron means any person or group of persons on Indian land who participate as

players in gaines as defined by this Chapter, or use a gaining device, or who are physically

present on premises in or upon which such games are being played or such devices are used.

42.228 Person

Person means any association, partnership, corporation, limited liability company,

firm, trust or other form ofbusiness association as well as a natural person.

42.229 Primary Management Official

Primary Management Official means:

(1) the person having management responsibilities for a management contract;

(2) any person who has authority;

(a) to hire and fire employees; or

(b) to set up working policy for a licensed gaming establishment; or

(3) the chief financial officer or other person who has financial management

responsibility.

42.230 Reservation

Reservation, when not qualified, means the Sault Ste. Marie Tribe of Chippewa

Indians Indian Reservation and any other lands designated for the Tribe as reservation lands

by the Secretary ofthe Interior.

42.231 Tribal Court

Tribal Court means the Tribal Cowl of the Sault Ste. Marie Tribe of Chippewa

Indians, as established by Tribal Code Chapter 80.

42.232 Tribal-State Compact or Compact

Tribal-State Compact or Compact means the agreement between the Tribe and

the State ofMlthigan providing for the conduct of Class ifi gaming under 25 USC §2710(d)

executed on August 20, 1993, together with any subsequent amendments or agreements.

42-16
42.233 Tribe

Tribe means the Sault Ste. Mane Tube of Chippewa Indians.

SUBCHAPTER ifi: OWNERSHIP AND OPERATION OF LICENSED GAMING

ESTABLISHMENTS.

42.301 Tribal Ownership of Licensed Gaming Establishments

Each licensed gaming establishment shall be wholly owned by the Tribe. No part or

share of the proceeds of the operation of a Tribal gaming establishment shall inure to the

benefit of any person except as provided in a management contract approved in accordance

with Subchapter VI No gaming employee shall have any interest in the ownership or leasing

of any property, gaming device or premises used by a licensed gaming establishment.

42.302 Revenuàs to Benefit Tribe

(1) The Tribe shall have the sole proprietary interest and responsibility for the

conduct ofany gaming, subject to any management contract approved under Subchapter VI

under which net profits are divided between the Tribe and other parties to the contract.

(2) A licensed gaming establishment shall be operated so as to produce the maximum

amount of net revenue to the Tribe.

(3) The net revenue shall be used solely for one or more of the following purposes:

(a) to fluid Tribal governmental operations or programs;

(b) to provide for the general welfare ofthe Tribe and its members;

(c) to promote Tnl,al economic development;

(d) to donate to charitable organizations;

(e) to help find operations oflocal governn~nt agencies;

(1) fir per capita payments to Tribal members upon adoption of a plan to

do so by the Board of Directors and approval of the plan by the Secretary of the

Interior under 25 USC §2710(bX3).

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42.303 Management by Economic flevelopment Commission

(I) Subject to the provision of any management contract, each licensed gaming

establishment thali be operated as a Tribal enterprise under the supervision and management

of Sault Ste. Marie Tribe Economic Development Commission, as provided in its

Charter,Tribal Code Chapter 40.

(2) Within the limitations imposed by this Chapter; the Economic Development

Commission Charter, Tribal Code Chapter 40; and other provisions of Tribal law, and subject

to the provision ofany management contract, the Economic Development Commission shall:

(a) exercise exclusive control over the management and conduct of the

business and operations of each licensed gaming establishment, including rules of

play for the games played;

(b) contract and incur liability for and on behalf of the licensed gaming

establishment;

(c) borrow for or on behalf of the licensed gaming establishment money

which in its discretion and judgment be necessary for the conduct of the business,

and pledge or encumber business assets to secure the repayment of money so

borrowed;

(d) make all contracts for and on behalf of the licensed gaming establishment

in the conduct of its business;

(e) employ, discipline and discharge employees and establish personnel

policies and terms and conditions of employment;

(f) cany on and transact or supervise and control all of the other gaming

business ofthe Tribe; and

(g) establish procedures for resolving disputes between the gaming public

and the licensed gaming establishment or management contractor.

42.304 Gaming Managers

The Economic Development Commission shall empioy one or more gaming managers

to operate the licensed gammg establishments The Economic Development Commission may

delegate to a gaming manager such ofits powers and duties as it deems appropriate, subject

to its supervisory authority. Any person employed as a gaming manager upon the effective

date shall continue in that capacity, provided such person obtains a license as required by

Subchapter V.

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SUBCHAPTER LV: TRIBAL GAMING COMMISSION

42.401 Establishment of Corn mission

(I) The Tribal Gaming Commission is hereby created. The Commission shall consist

of five (5) Commissioners appointed by a majority vote of the Board of Directors. One

commissioner shall be a member ofthe Board of Directors who is not also a member of the

Economic Development Commission. At least one Commissioner shall be selected from each

of the following: the business community, and the law enforcement community.

(2) A Commissioner shall serve for three (3) years and may be removed from office

prior to the expiration of that term only by a vote of an absolute majority of the Board of

Directors following a hearing.

(3) The first Commissioners shall be appointed by the Board of Directors as follows:

three (3) shall serve three (3) year terms, and two (2) shall serve two (2) year terms for the

initial terms only. Thereafler, all successive terms of appointment thall run for three (3) years.

(4) Vacancies shall be filled within thirty (30) days by the Board of Directors.

(5) The principal office of the Commission shall be maintained in Sault Ste. Marie,

Michigan.

42.402 General Powers and Duties of Commission

The Commission shall have the powers and duties granted or imposed by this Chapter,

which shall include the following:

(1) To inspect and examine all premises wherein gaming is conducted or gambling

or gambling devices, equipment or supplies are manufactured, sold or distributed.

(2) To inspect all gaming devices, equipment and supplies in, upon or about a

licensed gaming establishment, or inspect any gaming devices, equipment or supplies

wherever located, which may or have been used in the licensed gaming establishment.

(3) To summarily seize and remove and impound such gaming devices, equipment

or supplies for the purpose of examination or inspection.

(4) To demand access to and inspect, examine and audit all papers, books, and

records of all applicants and licensees or affiliates of an applicant or licensee respecting any

income produced or expenditures made by any licensed gaming establishment, and require

verification ofincome and all other matters affecting the enforcen~it ofany provision ofthis

Chapter vested in the Commission.

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(5) To demand access to and inspect, examine and audit all papers, books, and

records of any and all business conducted in a licensed gaming establishment whether or not

a license is required to conduct such business. I

(6) To refer to federal, state or Tribal prosecutors or the NIGC the results of any

investigation for possible prosecution, institution of civil remedial forfeiture proceedings, or

other remedial action.

(7) To conduct hearings authorized by this Chapter and to issue subpoenas and

compel the attendance ofwitnesses, to administer oaths and to require testimony under oath

at any such hearing. Any person making false oath in any matter before the Commission is

guilty ofperjury. Any process or notice may be served in the manner provided for service of

process and notices in a civil action. The Commission may pay such transportation and other

expenses of witnesses as it may deem reasonable and proper.

(8) To promulgate regulations as authorized in this Chapter.

(9) To meet at least quarterly with the Director.

(10) To organize itself into such functional divisions as it may deems necessary or

expedient from time to time.

(11) To receive and investigate complaints from patrons and other persons of

violations ofthis Chapter or Commission regulations.

(12) To employ staff and consultants in cany out its duties, and to make other

expenditures consistent with its budget approved under §42.411.

(13) To keep and maintain a file of all applications for licenses, together with a record

of all action taken with respect to such applications.

(14) To keep and maintain such other files and records as deemed necessary, to be

open to public inspections as deemed appropriate.

(15) To review and oversee implementation of internal controls adopted by

management as required by §42.7 15.

(16) To take other action necessary and incidental to the enumerated powers and

duties.

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42.403 Compensation for Commissioners I

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

Commission and approved by the Board of Directors. Commissioners shall be reimbursed for

actual expenses incurred on Commission business, including necessaiy travel expenses. In

no event shall compensation be based on the profitability of gaming operations.

42.404 Selection of Chairperson

The Commission shall select annually from its membership a chairperson, who shall

have the power to convene special meetings ofthe Commission. The chairperson shall be

entitled to vote on any matter.

42.405 Meetings

(1) The Commission shall hold a regular meeting at least quarterly. Regular meetings

shall be open to the general membership ofthe Tribe. Meetings shall be conducted according

to bylaws adopted by the Commission and approved by the Board of Directors for that

purpose.

(2) A quorum shall consist ofthree (3) Commissioners. All decisions shall be made

by a majority vote ofthe Commissioners attending a meeting, provided a quorum is present,

unless otherwise provided in this Chapter.

(3) Matters dealing with personnel, security, particular applicants or licensees,

enforcement, or the fiscal integrity ofthe licensed gaming establishment shall be conducted

in executive session and shall not be open to the public.

(4) A special meeting may be convened by the chairperson ofthe Commission on 48

hours written notice, but ifthe chairperson determines that a bona fide emergency exists, the

special meeting may be conducted by telephone.

(5) The Commission shall cause to be made and kept a record of all proceedings at

its regular and special meetings. Those records shall be open to inspection by the Board of

Directors.

42.406 Ouarterly Report

The Commkcion shall make quarterly reports to the Board of Directors within thirty

(30) days after the close ofthe quarter. The report shall include a suinmaly of all licensing

and completed investigative actions and a financial report on the Comniicsion budget.

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42.407 Appointment of Director

The Board ofDirectors, with the advice and consent ofthe Commission, shall appoint

a Director who shall be responsible for the day-to-day management of the affairs of the

Commission. A detailed background investigation shall be conducted on the Director before

his appointment and the Commission shall maintain oversight ofthe director on an ongoing

basis. Preference shall be given to applicants with experience in legal gaming or law

enforcement. The Director shall meet the requirements of~42.505(3). The Director shall not

have any personal interest in any Tribal gaming operations.

42.408 Directors Contract

The Director shall be hired on a contract for a period of at least two (2) years. The

terms of the contract, including compensation, shall be approved by the Board of Directors.

Compensation for the Director shall not be based, in whole or in part, on the profitability of

the gaming operations.

42.409 Termination of Director

The Director shall be terminated immediately and without the necessity of a vote or

hearing upon conviction of or entsy of a plea of guilty or no contest to any criminal offense.

Otherwise, the Director shall be suspended or terminated upon the same grounds and under

the same terms, conditions and procedures as are set forth in §42.5 15, except suspensions and

initiation oftermination proceedings shall be the flmction of the Commission, and the hearing

and decision shall be the function of the Board of Directors.

42.410 Duties of Director

The Director shall, subject to the supervision ofthe Commission, perform all duties,

exercise all powers, and assume and discharge all responsibilities imposed by this Chapter or

delegated by the Commission. The Directo?s duties shall include but not be limited to the

following:

(1) Serve as the chief executive officer ofthe Commission and supervise its staff

(2) Negotiate contracts for the provision of services necessaly for the operation of

the Commission as approved by the Commission and expend funds for its operation within

its budget.

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(3) Arrange for an ann~iaI outside audit of authorized gaining and provide a copy to

the NIGC and the Board of Directors.

(4) Provide for an adequate system which ensures that the background investigations

required by this Chapter are conducted in a manner which complies with this Chapter and

with NIGC regulations.

(5) Make a decision on all applications for licenses, subject to appeal to the

Commission.

(6) Provide for investigations and oversight of licensees, make decisions on

suspension of licenses, and initiate license revocation proceedings.

(7) Provide for investigation of complaints relating to activities which fall within the

regulatory authority ofthe Commission.

(8) Send notice to the NIGC of all actions or matters for which such notice is

required by this Chapter, IGRA or NIGC regulations.

(9) Prepare reports and make recommendations to the Commission about any other

matter within the Commicsions jurisdiction.

42.411 Commission Budget

(1) The Commission shall prepare an annual budget for operations, including the

Director, staff consulting services, equipment, supplies and such other items as are deemed

necessary or desirable in carrying out its fimctions.

(2) The budget shall be submitted to the Board of Directors for approval. The Board

of Directors shall appropriate such sums as are reasonable and necessary to allow the

Commission top~~ its dulies. The Board ofDirectors may review and modify the budget

from time to time.

42.412 Restrictions on Commissioners and Director

(I) The Director and the Cotnmis.sioners may hold another Tribal position or engage

in any business which does not conflict with their responsibilities under this Chapter.

However, neither the Director nor any Commissioner may be engaged in or have any

pecimiaiy terest in any business which is subject to the provisions ofthis Chapter or which

does business with any licensed gpming establishment.

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(2) Neither the Director, nor any Commissioner, nor any member of the household

of the Director or any Commissioner shall gamble in any licensed gaming establishment or

have any personal financial interest in any gambling by any patron.

42.413 Applications and Investigations,

(1) Each license application from a primary management official, key employee or

gaming consultant shall contain all of the information required by 25 CFR §556.4(a). The

application form shall contain the privacy notice and the notice regarding false statements

required by 25 CFR §556.2 and §5 56.3, respectively.

(2) The Director shall conduct a background investigation on each primaiy

management official, key employee or gaming consultant sufficient to make a licensing

determination under §42.505.

(3) The Director shall investigate the qualifications of each applicant under this

Chapter before any license is issued or any approval ofacts or transactions for which Director

or Commission approval is required or permission granted, and shall continue to observe the

conduct of all licensees and other persons having a material involvement directly or indirectly

with a licensed gaining establishment to ensure that licenses are not issued to or held by, nor

is there any material involvement directly or indirectly with a licensed gaming operation by,

unqualified, disqualified or unsuitable persons, or persons whose operations are conducted

in an unsuitable manner.

42.414 Licensing Decisions

The Director shall make the decision regarding the approval, disapproval, suspension,

initiation of revocation proceedings regarding, or imposition of limit or condition upon a

license. Any licensmg decision made by the Director may be appealed to the Commission as

provided in §42.4 15.

42.415 Right to a Hearing

(1) Any person aggrieved by a decision or determination made by the Director or by

the Commission without a hearing may appeal that decision or detennination to the

Commission by filing a written notice of appeal with the Commission within ten (10) days

after the decision or determination is made.

(2) The Commk~ion shall hold a hearing to review the matter within thirty (30) days

after receipt of a notice of appeaL At the hearing, the burden shall be upon the aggrieved

party to show wiiy the decision or determination was incorrect. The Commission shall issue

regulations providing procedures for such hearings.

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(3) The Commission shall make its decision and issue written findings and conclusions

$vithin eight (8) working days alter the hearing.

(4) The decision ofthe Commission shall be final, and no further appeal may be had.

The Tribal Couzt shall not have jurisdiction to hear appeals of Commission decisions, nor to

review the Commission actions in any other way.

42.416 Confidentiality

The Commission and the Director may refuse to reveal in any court proceeding the

identity ofany informant, or the information obtained from the informant, or both the identity

and the information.

42.417 Commission Regulations

The Commission shall, from time to time, adopt, amend or repeal such regulations,

consistent with the policy, objects and purposes ofthis Chapter, as it may deem necessaly or

desirable in the public interest in cariying out the duties ofthe Commission as defined by this

Chapter. Commission regulations shall be submitted to the Board of Directors for review and

shall not take effect until approved by resolution of the Board of Directors, except as

provided in §42.418(2). These regulations must at a minimum include the following:

(1) The method and form of application which any applicant for a license must follow

and complete before consideration of the application by the Director.

(2) The inlbnnation to be furnished by any applicant or licensee concerning his or her

antecedents, habits, character, associates, criwinal record, business activities and financial

affairs, past or present and any additional information required by the IRGA, NIGC

regulations, the Tribal-State Compact, or this Chapter.

(3) The information to be furnished by a licensee relating to employees.

(4) Fmgerprinting of an applicant or licensee or employee of a licensed gaming

establishment and other methods of identification as the Commission deems appropriate.

(5) The mpnner and method of collection and payment of fees and issuance of

licenses.

(6) Requiring an applicant to pay all or any part ofthe fees and costs of investigation

of such applicant as may be determined by the Commission.

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(7) Prescribing the manner and procedure of all hearings conducted by the

Commission.

(8) Protecting due process rights of all individuals subject to the enforcement ofthis

Chapter by the Commission. Such regulations shall, at a minimum:

(a) provide standards for emergency or summary suspension of license;

and

(b) provide fair notice and opportunity fbi hearing regarding any revocation

or suspension of license, and regarding any enforcement action taken pursuant

to this Chapter by the Director or the Commission.

42.418 Prior Notice of Actions

(1) In adopting, amending, and repealing regulations, the Commission shall give prior

notice of the proposed action to all licensees and other persons whom the Commission or

Director has reason to believe have a legitimate and bona fide interest in such proposed

action. The notice shall inform such persons as to the general nature ofthe proposed action

and advise them as to the manner in which cominaits on the proposed action shall be received

by the Commission.

(2) hi emergencies, the Commission may summarily adopt, amend or repeal any

regulation if at the time the Commission detennmes such action is necessary for the immediate

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

together with a statement of facts constituting the emergency. Such regulation shall take

effect immediately but shall expire ten days after the date of adoption unless reviewed and

approved by the Board of Directors within that ten day period. The Commission shall

schedule such emergency action for regular comment and action within sixty (60) days after

any such emergency action.

42.419 Request for Commission Action

Any person who is determined by the Commission or Director to be a bona fide

interested party may file a petition in a manner and form approved by the Commission

requesting the adoption, amendment or repeal of a regulation. Upon receipt ofthe petition,

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

requested action.

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42.420 Independence of Commission

The Commisszon is constituted as an independent regulato!y agency of the Tnbe. It

shall not be ~ibject to political direction or influence in the performance or its duties from the

Board of Directors or any member of the Board or officer of the Tribe.

42.421 Relation to Gaming Management

Neither the Commission nor the Director has any role in the management of any

licensed gaming establishment. Aside from the specific duties of the Commission and

Director as defined in this Chapter all decisions, policies and actions with regard to the

operation of any licensed gaming establishment are the prerogative and responsibility of

gaming management as described in Subchapter Ill of this Chapter.

42.422 Legal Advisor

The Board ofDirectors shall appoint an attorney as legal advisor for the Commission.

Such attorney shall represent the Commission in any proceedings to which the Commission

is a party.

42.423 Approval of Gaming Devices

The Commission may, in its discretion., review and approve all gaming devices used

in any licensed gaming establishment to assure compliance with the minimum standards

imposed in §42.704.

42.424 list of Undesirables

(I) The Commission shall, by regulation, provide for the establishment of list of

persons who are to be excluded or ejected from any licensed gaming establishment. The list

may include any person whose presence is deteiwiued by gaming management to pose a

threat to the interests ofthe Tribe or to licensed gaming.

(2) The Commission shall promulgate regulations providing fair notice and

oppoitunity to be heard to any individual whose name has been placed on the list by gaming

managenient. Such regulations must provide the person an opportunity to show cause why

the persons name thould be deleted from the list.

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SUBCHAPTER V: LICENSES

42.501 Types of IAcenses

(1) Each gaming establishment on Indian land shall obtain a license. Any person

wishing to conduct class II or class ifi gaming on Indian land shall apply for a license

authorizing such gaming.

(2) Any person who has been hired for a position in or is employed in any licensed

gaming establishment as a primaiy management official or a key employee, and all gaming

consultants shall apply for a license authorizing such employment or consulting.

(3) Any gaming device supplier shall apply for and obtain a license before supplying,

assembling, or installing any gaming device, equipment or supply to or in a licensed gaming

establishment.

(4) Any person seeking to conduct, operate or manage any gaming on Indian land

shall apply for, and receive, all required licenses prior to engaging in such activity, except as

provided in §42.511.

42.502 Class I Gaming

Class I gaming may be conducted on Indian land without a license. The Commission

may investigate such activity to insure that it meets all requirements for class I gaming, and

may promulgate regulations concerning such gaining.

42.503 LIcensing of Class H Gaming

(1) A separate license shall be required for each place, facility, or location on Indian

land at which any class II gaming is conducted.

(2) The Director or Commission may license a Tribally owned class II gaming

establishment if

(a) such establishment is located on land as provided in §42.80 1;

(b) the State of Michigan continues to permit such gaming for any purpose

by any person, org2niz~tion or entity, and such gaming is not otherwise specifically

prohibited on Indian land by federal law;

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(c) subject to an~y management contract approved under Subchapter VI, the

Tribe has the sole proprietary interest and responsibility for the conduct of such

gaming;

(d) net revenues from such gaming are used in accordance with §42.302(3);

(e) such gaming activity is subject to annual outside audits, which may be

encompassed within existing independent Tribal audit systems, and provided to the

Board of Directors;

(f) all contracts for supplies, services or concessions for any aggregated

amount in excess of $25,000 annually relating to such class H gaming (except

contracts for professional legal or accounting services) are also subject to independent

audits;

(g) the construction and maintenance of the gaming f~cility, and the

operation of the gaming, is conducted in a manner which adequately protects the

environment and the health and safety ofthe public;

(h) background investigations are conducted on all primary management

officials, key employees and gaming consultants of the class II gaming operation in

the manner provided in §42.4 13 and this Subchapter; and

(i) oversight of pnmary management officials, key employees and gaming

consultants, and their management, is conducted on an ongoing basis.

42.504 Licensing of aass Ill Gaming

(1) The Director or Commission may license class ifi gaming if such gaming is

conducted in conformity with the ICIRA, NIGC regulations, the Tribal-State Compact, and

this Chapter. In addition, the applicant shall meet and comply with all of the requirements of

§42.503(2). Any gaining establishment wishing to conduct class ifi gaming must be licensed.

(2) A class ifi licensed gaming establLchment may lawfiully conduct the following

games:

(a) craps and related dice games;

(b) wheel games, including Big Wheel and related games;

(c) roulette;

42-29
(d) banking card games that are not otherwise treated as class II gaming in

Michigan pursuant to 25 Usc §2703(7Xc), and non-banking card games played by

any Michigan tribe on or before May 17, 1988;

(e) electronic games of chance; and

(f) keno.

(3) Additional class 111 games may be played by the licensee only if they have been

authorized under §3(B) of the Tribal-State compact.

42.505 Licensing of Primary Management Officials. Key Employees, and Gaming

Consultants

(1) Any person determined by the Director to be qualified to receive a license shall

be issued a license. No license shall be issued unless a background investigation has been

completed on the applicant.

(2) The Director shall review an applicants prior activities, criminal record, if any,

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

primary management official, key employee or gaming consultant for a license.

(3) No license shall be granted to any person who:

(a) is under the age of 18; or

(b) has been convicted of or entered a plea of guilty or no contest to a

gambling related offense, fraud or misrepresentation; or

(c) has been convicted of or entered a plea of guilty or no contest to any

offense not specified in sub. (b) within the immediately preceding five years. This

provision shall not apply if that person has been pardoned by the Governor of the

state where the conviction occurred or, if a Tribal member, is determined to be

a person who is not likely again to engage in any offense or criminal course of

conduct and the public good does not require that the applicant be denied a gaming

license; or

(d) is determined to have participated in organized crime or unlawflul

gambling or 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 enh~mce the dangers ofunsuitable, imf~ir or illegal

practices, methods and activities in the conduct of gaming or the carr~thig on ofthe

business and financial arrangements incidental thereto.

42-30
42.506 Licensing of Gaming Device Suppliers

(I) Any person who supplies gaming devices to any licensed gaming establishment

shall have a license issued by the Director or Commission. A person is a gaming device

supplier if the person sells, leases, assembles or installs any gaming device, equipment or

supplies for use at any licensed gaming establishment.

(2) Prior to entering into any lease or purchase agreement, the licensed gaming

establishment or the proposed gaining device supplier, and all persons holding a direct or

indirect financial interest in the gaming device supplier or the lease or purchase agreement,

shall provide to the Director such information as the Commission shall prescribe to permit the

Director to conduct a background investigation on those persons or entities. The Director

shall be provided any additional information that the Director may request.

(3) The Director shall review the information submitted and determine from the

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

whether to make a finding of the eligibility of the gaming device supplier for a license. No

license shall be issued if the applicant, or any manager or person holding direct or indirect

financial interest in the supplier or the proposed lease or purchase agreement is determined

to have:

(a) participated in or have involvement with organized crime; or

(b) been convicted of or entered a plea of guilty or no contest to a gambling

related offense, fraud or misrepresentation; or

(c) been convicted of or entered a plea of guilty or no contest to any other

felony offense within the immediately preceding five years, unless that person has been

pardoned.

42.507 Non-Transferability of License

Any lic~ise issued pursuant to the provisions ofthis Subchapter is valid only for the

person or establishment at the place of business shown on its f~ce. It is not assignable or

otherwise transferable.

42.508 Granting of License

(1) Subject to appeal to the Commission as provided in Subchapter IV, all licenses

shall be issued by the Director.

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(2) No license shall be issued to a person whose license has previously been revoked

pursuant to this Chapter, or to whom the issua~ice or renewal of a license has been denied,

except with the unanimous approval of the Commission members.

42.509 Consultation with Law Enforcement

The Director shall consuk with appropriate law enforcement officials concerning any

application for a license before the license is issued.

42.510 Fees

The Commission shall set a fee for applications, background investigations and

licenses. All such fees shall be made payable to the Tribe.

42.511 Ninety Day Limitation: Grace Period

(1) No licensed gaming establishment shall employ a primary management official or

key employee who does not obtain a license within ninety (90) days of being hired. No such

person may begin employm~it without having had completed an application for a license. No

gaming consultant shall perform any services for a licensed gaming establishment prior to

issuance of a license.

(2) Notwithstanding any other provision of this Chapter, primary management

officials, key employees and gaming consultants employed by the Tribe in gaming prior to the

effective date of this Chapter shall not be required to have a license upon the effective date.

All such persons shall apply for a license within ten (10) working days afler the effective date.

The Director shall make a determination whether to grant a license within ninety (90) days

ofthe efiŁctive date; provided, that if the Director needs additional time, a temporary license

may be issued to an applicant for thirty (30) days, so long as such action will not endanger

the effective regulation of gaming under this Chapter.

(3) Notwithstanding any other provision ofthis Chapter, gaming facilities operated

bytheTrlbeontheefioctivedateofthisChaptershallnotberequiredtobelicenseduponthe

effective date. Each Tribal facility shall apply for a license within five (5) working days afler

the effective date. The Director shall make a determination to grant a license within thirty

(30) days ofthe effective date. Upon issuance ofthe license the gaming facility shall comply

flifly with all provisions ofthis Chapter.

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42.5 12 Reports to NJGC: Processing of Applications

(1) At the time a primary management official or key employee is employed by a

licensed gaming establishment~ the Director shall forward to the NIGC a completed

application containing the information required by §42.413(1).

(2) Before issuing a license to a primary management official or key employee, and

in no event more than sixty (60) days after an employee begins work or of the effective date

of this Chapter, the Director shall forward to NIGC an investigative report on the

background investigation for that employee, together with a copy of the determination on

eligibility for licensing. The investigative report shall include the following:

(a) steps taken in conducting a background investigation;

(b) results obtained;

(c) conclusions reached; and

(d) the basis for those conclusions.

(3) No license shall be issued until the happening of the first of these events:

(a) receipt of notification that the NIGC has no objection to the issuance

ofa license; or

(b) the expiration of the thirty (30) day period for NIGC review under 25

CFR §558.3(c).

(4) If, within the thirty (30) day period provided for NIGC review under 25 CFR

§558.3(c), NKIC provides the Director with a statement itemizing objections to the issuance

ofthe license, the Director shall reconsider the application, taking into account the objections

itemized by NIGC. The Director may refer the matter to the Commission for reconsideration.

The Director or the Commission shall make the final decision whether to issue a license to the

applicant.

(5) If the Director or Commission does not license an applicant, the Director shall

notify NIGC ofthat action.

42.513 Disclosure by Applicant

The burden of providing eligibility to receive any lic~ise is on the applicant. An

applicant fbr lic~ng shall make tnie and full disclosure of all information to the Director as

required by this Chapter, necessary and appropriate in the public interest or as required in

42-33
order to carry out the policies of the Tribe relating to licensing and control of the gaming

industry. It is tl~e 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.

42.514 Violations by Licensee

(1) Violation of any material provision of this Chapter or of any Commission

regulation by a licensee or its agent or employee shall be deemed contrary to the public health,

safety, morals, good order, and general well~re ofthe Tribe, and shall be deemed grounds for

refusing to grant or renew a license or suspension or revocation of a license.

(2) Acceptance ofa 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 Commission

and Director and by the provisions of this Chapter and any amendments hereafter

promulgated, and to cooperate fully with the Director and Commission. It is the

responsibility of the Licensee to keep informed of the contents of such regulations,

amendments, provisions, and conditions, and ignorance will not excuse violations.

(3) The management ofany licensed gaming establishment shall report to the Director

any known or suspected violation of this Chapter, regulations under this Chapter or any

criminal activity, whether related to gaming or otherwise, by any person licensed under this

Subchapter as soon as the information becomes known to management. The report must be

made regardless of whether disciplinary action or referral for prosecution is contemplated.

42.515 Suspension or Revocation of License

(1) it; after issuance of a license, the Director receives reliable information that a

person licensed under this Chapter has violated or been charged with a violation of any

criminal law, any provision of this Chapter or regulation promulgated under this Chapter, or

is otherwise not eligible fbr a license, the Director shall conduct an investigation to determine

whether revocation proceedings should be initiated.

(2) The persons license shall be suspended and revocation proceedings shall be

initiated if

(a) the person has been convicted of or pled guilty or no contest to any

criminal offense; or

(b) the information came to the Director by notification from the NILOC

pursuant to 25 CFR §558.5; or

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(c) the person has been charged with a criminal offense related to gambling,

fraud or activities arising during the course of employment.

(3) In all other cases, the Director may suspend the persons license pending

completion of the investigation if circumstances warrant. The Director shall notify the

licensee in writing of any suspension.

(4) In any case governed by sub. (2) and in other cases if the Director determines that

circumstances warrant, the Director shall notify the licensee of a proposed revocation of the

license. The notice shall include the time and place for a hearing on the proposed revocation

before the Commission.

(5) At the hearing, the burden shall be on the licensee to establish continued eligibility

fbr a license. Afler the hearing, the Commission shall make one of the following dispositions:

(a) revoke the license;

(b) reinstate the license; or

(c) reinstate the license with conditions or limitations.

(6) The decision of the Commission is finaL The Commission may revoke a license

regardless of whether

(a) the licensee has been disciplined or discharged by the licensed gaming

establishment;

(b) criminal or civil remedial forfeiture proceedings have been initiated;

or

(c) if criminal charges were brought, they resulted in dismal or acquittal.

SUBCHAPTER VI: MANAGEMENT CONTRACTS

42.601 Commission Approval Required

(1) Any management contract entered into by the Tribe or by any licensed gaming

establishment for the operation and management of class II or ifi gaming activity must be

submitted to the Commission for approval and a finding a suitability. Before approving such

contract, the Commin~ion shall require and obtain the following information:

(a) The name, address of each ofthe following:

42-35
(i) each person with management responsibility for a management

contract;

(ii) each person who is the director of a corporation that is a party

to a management contract;

(iii) each member of the Board of Directors of a corporation that

is a party to a management contract;

(iv) each stockholder of a corporation who holds either directly or

indirectly 10% or more of its issued and outstanding stock;

(v) each person who has a direct or indirect financial interest in an

entity that is a party to a management contract; and

(vi) each person who has a direct or indirect financial interest in

a management contract.

(b) For each of the individuals identified in sub. (a), the management

contractor shall provide to the Commission:

(i) full name, other names used, social security number(s), birth

date, place ofbirth, citizenship and gender;

(ii) a current photograph, drivers license number, and which

state(s) issued a drivers license;

(iii) business and employment positions held, and business and

residence addresses currently and for the previous ten (10) years; the city,

state and countly of residence from age eighteen (18) until the present;

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

references, including one personal reference who was acquainted with the

person at each different residence for the past five (5) years;

(v) current residence and business addresses and telephone

numbers;

(vi) a description of any previous business relationships with Indian

tribes, including ownership interests in those businesses;

(vii) a description of any previous business relationships with the

gainhig industry generally, including ownership interests in those businesses;

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(viii) the name and address of any licensing or regulatory agency

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

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

(ix) for each gaming related offense and for each felony for which

there is an ongoing prosecution or a conviction, or for which a plea of guilty

or no contest was entered, the name and address of the court involved, the

charge, and the dates of the charge and of the disposition;

(x) 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 ofthe court involved, and the

dates of the prosecution and the disposition;

(xi) a complete financial statement showing all sources of income

for the previous three years, and assets, liabilities, and net worth as of the

date of the submission; and

(xii) the management contractor shall arrange with an appropriate

federal, state or Tribal law enforcement authority to supply the Commission

with a completed fingerprint form (form FD-258) which is supplied by the

NTGC for each of the individuals identified in sub. (a).

(2) The management contractor shall supply any further or additional information as

may be required by the IGRA, NIGC regulations or the Tribal-State Compact.

(3) The management contractor and any other person listed in sub. (lXa) shall be

required to respond to such written or oral questions as the Commission may propound in

accordance with its responsibilities under this section.

(4) For purposes ofthis Chapter, any reference to the management contract described

in sub. (1) shall be considered to include all collateral agreements to such contract that relate

to the gaming activity.

42.602 Requirements for Approval

The Comnm~sion may approve any management contract entered into by the Tribe or

a licensed gaming establishment under this Subchapter only if it determines that such contract

provides at a minininm~

(1) That all gaming covered by the contract will be conducted in accordance with the

IGRA, NIGC regulations~ the Tribal-State Compact and this Chapter.

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(2) For the establishment and maintenance of satisf~ctoiy accounting systems and

pwcedures that shall, at a minimum.:

(a) include an adequate system of internal accounting controls;

(b) include the preparation of financial statements in accordance with

generally accepted accounting principles.

(3) For immediate access to the gaming operation, including its books and records,

by appropriate Tribal officials who shall have a zight to verif~~ the daily gross revenues and

income made from any gaming activity.

(4) For verifiable financial reports that are prepared by or for the Board of Directors

on a monthly basis.

(5) For a minimum guaranteed payment to the Tribe that has preference over the

retirement of development and construction costs.

(6) For an agreed ceiling for repayment ofdevelopment and construction costs.

(7) For a contract tenn not to exceed five years, except that, upon the request of the

Tribe, a contract term of not more than seven years may be approved where the capital

investment required and the income projections for the gaming activity require the additional

time.

(8) For grounds and mechanisms for terminating such contract.

(9) For preference to Native Americans in the hiring of employees for the licensed

g~mng establishment in accordance with §42.708.

(10) For alec based upon a percentage of the net revenues of a licensed gaming

establishment that is reasonable in light of surrounding circumstances. Such fee shall not

exceed thirty (30%) ofthe net revenues except that a management fee ofnot more than forty

percent (40%) of net revenues may be approved when requested by the Tribe only if the

capital investment required and income projections for such gaming activity require the

additional fee.

42.603 Contract Disapproval

The Commission shall not approve any management contract Wit determines that:

(1) Any person listed in §42.601(lXa):

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-

(a) is an elected member of the Board of Directors; or

(b) has been or subsequently is convicted of any felony or gaming offense;

or

(c) has knowingly and willfully provided materially important false statements

or information to the Commission or Tribal officials or has refused to respond to

questions propounded under §42.601(1 Xb); or

(d) 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 gaming or create or enhance

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

conduct of gaming or the canying on of the business and financial arrangements

thereto;

(2) the management contractor has, or has attempted to, unduly interfere with or

influence for its gain or advantage any decision or process ofTribal government relating to

gaming activity; or

(3) the management contractor has deliberately or substantially failed to comply with

the terms ofthe management contract or the provisions of the KIRA, NIGC regulations, the

Tribal-State Compact or this Chapter.

42.604 Modify or Voiding Contract

(1) The Commission, afler notice and hearing, shall have the authority to require

appropriate contract modifications or may void any contract if I subsequently determines that

any ofthe provisions ofthis Subchapter have been violated.

(2) If the Tribe elects to agree contractually to resolve disputes in a manner other

than by revocation of a management contract, such contractual agreement shall supersede

sub. (1), so long as the agreement provides a reasonable avenue for the Tribe to insure a

contractois compliance with all other aspects of this Chapter.

42.605 Conveying Interest in Land

No management contract transfer or in any manner convey any interest in land or

other real property, unless specific statutoiy authority exists and unless clearly specified in

writing in the contract.

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42.606 Fee for Costs of Investigation

The Commission shall require a potential contractor to pay a fee to cover the ~ost of

investigation necessary to reach a determination required in §42.602. I

42.607 Approval by Board of Directors

No management contract shall be approved by the Commission unless first reviewed

and approved by resolution ofthe Board of Directors.

42.608 Submission to NIGC

After the Commission has given its approval of a management contract, the

Commicsion shall submit such contract to the NIGC for its approvaL Any such contract shall

not take effect until the NIGC has approved it.

42.609 Notice to State of Michigan

If the Tribe enters into a management contract for the operation of any class ifi

gaining or component thereof; the State of Michigan shall be given fourteen (14) days prior

written notice of such contract.

SUBCHAPTER VII: GENERAL PROVISIONS

42.701 Accounting Records

All accounting records at any licensed gaming establishment shall be kept on a double

entzy system ofaccounting, maintaining detailed supporting, subsidiary records. The licensed

gaming establishment shall maintain the following records for not less than three (3) years:

(1) revenues, expenses, assets, liabilities and equity for each licensed gaming

establishment;

(2) daily cash transactions for each class ifi game, including but not limited to

transactions relating to each gaming table bank, game drop box and gaming room bank;

(3) all markers, IOUs, returned checks, hold checks or other similar credit

instruments;

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(4) individual and statistical game records (except card games) to reflect statistical

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

analytic reports which show the total amount of cash wagered and the total amount ofprizes

won;

(5) contracts, correspondence and other transaction documents relating to all vendors

and contractors;

(6) records of all Tribal gaming enforcement activities;

(7) internal audits prepared by internal auditors on behalf of the licensed gaming

establishment and provided to the Commission;

(8) personnel information on all class Ill gaming employees or agents, including

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

42.702 Independent Audit

Every licensed gaming establishment shall be audited by independent certified public

acountants. Such audit must include an opinion that the financial statement fairly and

accurately presents the financial condition of the gaming operation in accordance with

generally accepted accounting principles. The audit report must be provided to the Board of

Directors.

42.703 Notices to Patrons

(1) The niles of each class ifi card game shall be posted in a prominent place in each

card room and must designate:

(a) the maximum rake-offpercentage, time buy-rn or other fee charged;

(b) the number of raises allowed;

(c) the monetary limit of each raise;

(d) the amount of ante; and

(e) other rules as may be necessaiy.

(2) In each licensed gaming establishment where class ifi gaming is conducted the

gaming establishment shall post in a prominent position a notice to patrons at least two (2)

fe~ by three (3) feet in dimension with the following language:

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NOTICE

THIS FACILITY IS REGULATED BY ONE OR MORE OF THE FOLLOWING:

THE NATIONAL INDIAN GAMING COMMISSION, BUREAU OF INDIAN

AFFAIRS OF THE U.S. DEPARTMENT OF THE INTERIOR, AN]) THE GOVERN

MENT OF THE SAULT STE. MARIE TRIBE OF CHIPPEWA

INDIANS.

THIS FACILITY IS NOT REGULATED BY THE STATE OF MICHIGAN.

42.704 Minimum Standards for Gaming Devices

No class ifi gaming device, equipment or supplies may be purchased, leased or

otherwise acquired by a licensed gaming establishment unless:

(1) the gaming device supplier has obtained a license under §42.506;

(2) the class ifi gaming device, equipment or supplies meet the technical equipment

standards of either the State of Nevada or the State of New Jersey; and

(3) the gaming device has been reviewed and approved by the Commission under

§42.423, if the Commission has required such approvaL

42.705 Installation of Gaming Equipment

A gaming device supplier shall provide, assemble, and install all class ifi gaming

devices, equipment and supplies in a mpnner approved and licensed by the Commission.

42.706 Compliance with Bank Secrecy Act

Any licensed gaming establishment shall comply with all applicable provisions of the

Bank Secrecy Act, P.L. 91-50884 Stat. 1122,31 USC §5311-5314, as amended.

42.707 Sale of Mcoholic Beverages

(1) All licensed gaming establishments shall comply with the Tribal Liquor Control

Ordinance, Tribal Code Chapter 41. In addition, the Board of Directors hereby adopts the

following rules and regulations, applicable to licensed class ifi gaming establishments only,

underits authoritygranted in Tribal Code §41.113:

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Those laws ofthe State of Michigan, as amended, relating to the sale and regulation

of alcoholic beverages encompassing the following areas:

(a) sale to a minor; and i

(b) sale to a visibly intoxicated individual; and

(c) sale of adulterated or misbranded liquor; and

(d) hours of operation; and

(e) all similar substantive provisions.

(2) The above laws, which are defined by reference to the substantive areas of the

laws of the State of Michigan referred to above, shall apply to licensed class ifi gaming

establishments in the same manner and to the same extent as such laws apply elsewhere in the

State of Michigan to off-reservation transactions.

(3) The Tube, for resale at all licensed class ifi gaming establishments, shall purchase

spirits from the Michigan Liquor Control Commission, and beer and wine from distributors

licensed by the Michigan Liquor Control Commission, at the same price and on the same basis

that such beverages are purchased by Class C licensees, as those licensees are defined by

Michigan law.

42.708 Native American Preference

Preference in the hiring of all employees at licensed gaming establishments or the

Commission shall be given to Native Aineuicans in accordance with the Tribes employment

preference policy.

42.709 Employee Benefits

The Tribe shall provide to any employee who is employed in conjunction with the

operation of any licensed gaming establishment at which class ifi gaming is conducted

pursuant to the Tribal-State Compact, such benefits to which the employee would be entitled

by vutue ofMichigan Public Act No. 1 of 1936, as amended (being MCL 421.1 et. seq.), and

Michigan Public Act No. 317 of 1969, as amended (being MCL 418.101 et seq.) if the

employees employment services were provided to an employer engaged in a business

enterprise which is subject to, and covered by, the respective Public Acts of the State of

Michiga~

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42.710 Altered Gaming~ Devices

Any evidence that any gaming device, equipment or supply used in the conduct of

gaming has been tamper~d with or altered in any way which would affect its integrity,

fairness, honesty or suitability shall be immediately reported to the Commission.

42.711 Minimum Age of Gaming Participants and Patrons

(1) No person under the age of 18 may participate in any class ifi game or any class

II game other than bingo.

(2) No person under the age of 16 may participate in bingo.

(3) No person under the age of 16 may be physically present during the play of bingo,

except children over 12 years of age when accompanied by a parent.

(4) No person under the age of 18 may be physically present on or in those portions

ofthe premises ofa licensed gaming establishment where class ifi gaining or class II gaming

other than bingo or puiltabs is being played. Persons under the age of 18 may be physically

present on or in those portions ofthe premises of a licensed gaming establishment where such

gaming is not being played or in the restaurant area of such premises.

(5) This section establishes minimum age requirements. Nothing in this section shall

prevent the management of any licensed gaming establishment from imposing minimum ages

higher than those established in this section.

42.712 Visibly Intoxicated Patron

A licensed gaining establishment may exclude or eject any individual who appears

visibly intoxicated.

42.713 Compliance with Federal Law and Regulations

The Director, the Commission, and each Commissioner, licensed gaining establish

ment, licensee and management contractor shall comply with all provisions of the IGRA,

NIGC regulations, the Tribal-State Compact, and any other applicable provision of federal

law or regulations related to gaming.

42.714 Environment. Health and Safety

All gaming under this Chapter shall be conducted in a manner which adequately

protects the environment and the health and safety ofthe public.

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42.715 Internal Controls

Each gaming manager and management contractor shall develop and implement a

system of internal controls which will protect and ensure the integrity, security, safety,

honesty and fairness of gaming and an effective and honest accounting of all revenues. The

internal controls shall be subject to the review and oversight of the Commission.

42.716 Background Checks on Vendors and Lessors

(1) Each gaming manager and management contractor shall conduct a background

check on any vendor or lessor who:

(a) provides any equipment, supplies or services, directly or indirectly, to a

licensed gaming establicliment; and

(b) is not required to be licensed under Subchapter V; and

(c) is paid in excess of $25,000 in any one year period for the provision of

such equipment, supplies or services.

(2) No gaming manager or management contractor shall contract with or purchase

any equipment, supplies or services from any lessor or vendor if the background check reveals

that such vendor or lessor, or any manager of or person holding a direct or indirect financial

interest in the vendor or lessor or the proposed lease or contract:

(a) has been convicted of or pled guilty or no contest to any felony offense

within the immediately preceding five years; or

(b) has participated in or has involvement with organized crime or unlawful

gaming; or

(c) 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 ofgaming.

42.717 Offers and Gifts to Officials and Employees

(1) No person doing business or seeking to do business with the Tribe, a licensed

g~iiIiuIg establishment, or a management contractor relating to gaming or the operation of a

licensed g~mrng establishment shall give, provide, or offer to give or provide to any person

listed in sub. (2) any ofthe following:

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(a) any personal compensation, cash or payment of any kind;

(b) any gift, object, service or other thing whose value exceeds $100; or

(c) any number or series of gifts, objects, services or things of value within

a one year period whose aggregate value exceeds $500.

(2) The prohibition in sub. (1) shall apply to the following persons as recipients or

offerees:

(a) the Director;

(b) a Commissioner;

(c) a member of the Board of Directors;

(d) a member of the Economic Development Commission;

(e) a primary management official of any licensed gaming establishment; or

(f) a member of the immediate family of any ofthe above.

(3) No person listed in sub. (2) shall accept or receive anything listed in sub. (l)(a)

(c) if the person knows that the giver or offeror is violating sub. (1).

(4) No person shall offer, give or receive any compensation, cash, gift, service or any

other thing of value with the intent that the offeror or giver gain unfair advantage in any

authorized wager or gaming.

SUBCHAPTER Yffi: ENFORCEMENT AND PENALTIES

42.801 Permitted Activity

Class H and ifi gaming conducted in conformity with this Chapter is permitted at

tribally owned licensed gaming establishments located on the following lands:

(1) Indian land acquired by the Secretary ofthe Interior in trust on or before October

17, 1988; or

(2) land which is acquired by the Secretary ofthe Interior in trust for the benefit of

the Tribe after October 17, 1988 and which:

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(a) is located within or contiguous to the boundaries of the reservation as

they existed on October 17, 1988; or

(b) has been authorized for a gaming establishment by the Secretary of the

Interior under 25 Usc §2719(bXl) or meets the requirements of 25 USC

§2719(bX2).

42.802 Prohibited Activity -

Generally

All gaming except for that authorized by §42.801 is prohibited.

42.803 Exceptions

(1) Class I gaming on Indian land is permitted and is not regulated by this Chapter,

except as provided in §42.502.

(2) This Chapter does not apply to the conduct of games by the Michigan Bureau of

State Lottery, its agents and licensees, when such gaming is conducted in accordance with

State law.

42.804 Emuneration of Unlawful Acts

It shall be unlawfiul and a violation ofthis Chapter for any person to:

(1) Alter or misrepresent the outcome ofa game or other event on wirich wagers have

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

(2) Place, increase, or decrease a bet or to determine the course of play after

acquiring knowledge, not available to all players, ofthe outcome ofthe game or knowledge

of any event that affects the outcome ofthe game or knowledge that is the subject of the bet

or wager.

(3) Aid anyone in acquiring such knowledge as set forth in sub. (2), for the purpose

of increasing or decreasing a bet or wager, or for the purpose of deternuning the course of

play contingent upon that event or outcome.

(4) Knowingly entice or induce another to go to any place where a gambling game

is being conducted or operated in violation ofthe provisions ofthis Chapter, with the intent

that the other person play or participate in that gambling game.

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(5) Claim, collect, 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.

(6) Violate any regulation of the Commission.

(7) Conduct, participate in, permit, promote, or further in any way any gaming which

is prohibited under §42. 802 and not excepted under §42.803.

(8) Impede or obstruct the Director, Commission or any special agent or law

enforcement officer in any investigation, proceeding or other exercise of authority or duty

authorized by this Chapter.

(9) Fail to disclose or report to the Director or Commission, or attempt to conceal

or mislead regarding, any fact or matter when this Chapter requires the reporting of such fact

or matter.

(10) Make any material false statement in any application, report or submission to the

Director or Commission that is required by this Chapter.

(11) Violate any restriction upon the Director and Commissioners imposed by

§42.412.

(12) Breach any obligation of confidentiality imposed by this Chapter.

(13) Enter into any lease or purchase agreement for any gaming device, equipment or

supplies with a gaming device supplier does not hold a license under §42.506.

(14) Enter into or engage in any game at a licensed gaming establishment when ones

nan~ is in the list p.epared under §42.424, or fail to exclude or eject any person so listed from

any liceiised gaming establishment.

(15) Conduct, participate in, permit, promote or further in any way any class ifi game

not authorized under §42. 504.

(16) Perform services as a primaiy management official, key employee, gaming

consultant or gaming device supplier without a license, or while such license is suspended,

except as provided in §42.511.

(17) Employ, conhiact with, or pay for services as a primaiy management official, key

en~kyee or gaming consukant any person without a license issued under §42.505, or whose

license has been suspended, except as provided in §42.511.

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(18) Operate or participate in the operation of any gaming establishment which is not

licensed under §42.503 or §42.504, except as provided in §42.511.

(19) Use orpenmt the use of~ any class Ill gaining device, equipment or supply which

does not meet the minimum standards prescribed in §42.704.

(20) Provide, assemble or install any class ifi gaming device, equipment or supply in

violation of §42. 705.

(21) Fail to comply with the Bank Secrecy Act as required in §42.706.

(22) Purchase, sell, supply or consume any alcoholic beverage in violation of

§42.707.

(23) Tamper with or alter any gaining device, equipment or supply in any way which

would affect the integrity, fiirness, honesty or suitability ofthe device, equipment or supply.

(24) Participate in any gaming or be physically present on or in the premises of a

licensed gaming establishment if the person is less than the minimum age set in §42.71 1, or

fail to exclude or eject from a licensed gaming establishment any such person.

(25) Violate any prohibition relating to offers or gifts to officials and employees

contained in §42.717.

(26) Violate any other duty, obligation, responsibility or prohibition of this Chapter.

Nothing in this section shall prevent the prosecution of any person for the violation of any

provision of the Law and Order Code or any provision of Tribal law contained in any other

chapter of the Tribal Code.

42.805 Jurisdiction and Procedure

(I) Jurisdiction is hereby conferred upon the Tribal Court over criminal and civil

enforcement actions for violation of~42.8O4.

(2) A violation committed by a Native American shall constitute a crime, and

proceedings shall be governed by Chapters Two and Four of the Law and Order Code, Tnbal

Code Chapters 71 and 72.

(3) A violation committed by a person who is not a Native American shall constitute

a civil infraction ~ibject to civil remedial money penalty, civil forfeiture ofproperty, or both.

Proceedings shall be governed by Chapter Seven ofthe Law and Order Code, Tribal Code

Chapter 81, and the Civil Remedial Forf~iture Code, Tribal Code Chapter 84.

42-49
42.806 Enforcement

(I) The provisions of this Subchapter shall be enforced by Tribal law enforcement

officers, and by anyone authorized or deputized to enforce this Chapter or Tribal law

generally by ordinance or resolution of the Board of Directors.

(2) The Commission shall have the authority to authorize special agents to perform

services reasonably necessary to conduct investigations and surveillance within the scope of

Commission authority or monitor and assure compliance with the provisions of this Chapter

for which the Commission has responsibility. When acting as a special agent, a person shall

be accorded the privileges and protections of a Tribal law enforcement officer. The activities

of special agents shall be under the supervision and the direction of the Director, unless

otherwise determined by the Commission. Nothing in this subsection shall limit the normal

law enforcement functions ofany special agent. nor of other Tribal law enforcement officers.

(3) Any person authorized to enforce this Chapter, and any employee of a licensed

gaming establishment authorized by management to perform the function, may seize and

impound any patrons winnings if there is reason to believe that they were won or obtained

in violation of this Chapter, pending disposition of the winnings under the Civil Remedial

Forfeiture Code, Tribal Code Chapter 84.

42.807 Remedies

(I) A violation of~42.804 by a Native American shall be punished by a fine of up to

Five Thousand Dollars ($5,000), or up to one (I) year in jail, or both. Each day of a violation

shall constitute a separate count or offense.

(2) A violation of §42.804 by a person who is not a Native American shall be

remedied by a civil remedial money penalty of up to Five Thousand Dollars ($5,000). Each

day of a violation shall constitute a separate violation.

(3) In addition to the remedies in sub. (I) or (2), any property used in the commission

of any violation may be forfeited under the provisions of the Civil Remedial Forfeiture Code,

Tribal Code Chapter 84. Any vehicle employed in transporting a violator to or from the

location of the violation shall be deemed to have been used in the commission of such

violation. Any winnings of a patron won or obtained in violation of this Chapter shall also

be subject to civil remedial forfeiture.

(4) In addition to any other remedy imposed, the Tribal Court shall order payment

of $25.00 in court costs.

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(5) The Tribal Court may order any person found to have committed a violation to

be added to the list of undesirables banned from any licensed gaming establishpient under

§42.424.

(6) If a violator obtained winnings as a result of the violation or otherwise obtained

money to which the violator was not entitled, or a licensed gaining establishment lost revenue

as a result of the violation, such sum may be ordered to be repaid to the Tribe, Commission

or licensed gaming establishment as restitution, or the Tribe, Commission or licensed gaming

establishment may seek a civil judgment for such sum, together with costs and a reasonable

attorneys fee.

(7) The remedies in this section are not intended to be exclusive, but shall be in

addition to and independent of

(a) any applicable contractual remedy;

(b) any disciplinary action taken against a violator as an employee;

(c) any license action or other enforcement action taken by the Director

or Commission; and

(d) any prosecution or other enforcement action under federal or state law

or under the provisions of any other chapter of the Tribal Code.

42.808 Limitation Period

No remedial action shall be taken under this Subchapter unless such action is

commenced in the Tribal Court within the greater of

(I) two (2) years of the commission of the violation; or

(2) one (1) year of the discovery of the commission of the violation, provided that

such discovery is within five (5) years of the commission ofthe violation.

42.809 Parties to a Violation

(1) Any person who is concerned in the commis~cion of a violation remediable under

this Subchapter is a principal and may be adjudged to have committed the violation although

such p~son did not directly commit it and although the person who did directly do so has not

been subjected to a remedial action under this Subchapter.

(2) A person is concerned in the commission of a violation if such person:

42-5 1
(a) directly commits the violation; or

(b) aids and abets the commission of a violation; or

(c) is a party to a conspiracy with one or more others to commit the violation

or advises, hires, counsels or otherwise procures another to commit the violation.

JMJ/~ 103193

A.p52onicadskith~tr42.trc

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