SAC & FOX TRIBAL RESOLUTION

No. 1 -

1995

WHEREAS, the Sac and Fox Tribe of the Mississippi in Iowa is

organized in accordance to Section 16 of the Indian

Reorganization Act of June 18, 1934 (48 Stat. 984),

and, as amended by the Act of June 15, 1935, (49 Stat.

378), and

WHEREAS, the Sac and Fox Tribal Council of the Sac and Fox Tribe

of the Mississippi in Iowa is responsible for the

general welfare, health, education, and government of

the Sac and Fox Tribe and their lands, and

WHEREAS, the Sac and Fox Tribe of the Mississippi in Iowa

adopted a Gaming Ordinance by Resolution No. 56-1992

dated December 10, 1992, and

WHEREAS, the Tribal Council has authorized and approved the

attached amendment to the Gaming Ordinance.

BE IT RESOLVED that the attached amendment to the Gaming

Ordinance is hereby adopted.

CERTI FICATE

We do hereby certify that the foregoing resolution was duly

presented and enacted upon at the Special meeting of the Sac

and Fox Tribal Council, duly called and held on Janu~y_L&,

1995 , with a quorum present, by a vote of 4 for, p

against, and 0 abstentions at the Sac and Fox Settlement,

Tama, Iowa.

~

1)

~ ~ _______

SECRETARY, S C & FOX TRIBAL COUNCIL

jms2l9. LLB
AMENDMENT TO GAMING ORDINANCE OF THE

SAC AND FOX TRIBE OF THE MISSISSIPPI IN IOWA

(ADOPTED DECEMBER 10, 1992)

1. AMEND SECTION 1.03 OF THE GAMING ORDINANCE BY DELETING IT

IN ITS ENTIRETY AND INSERTING THE FOLLOWING:

Section 1.03 Definitions.

For purposes of this Ordinance -

(1) The term class I gaming means- (RESERVED).

(2) The term class II gaming means -

(A) the game of chance commonly known as bingo (whether

or not electronic, computer, or other technologic aids are used

in connection therewith) -

(1) which is played for prizes, including monetary

prizes, with cards bearing numbers or other

designations,

(ii) in which the holder of the card covers such

numbers or designations when objects, similarly

numbered or designated, are drawn or electronically

determined, and

(iii) in which the game is won by the first person

covering a previously designated arrangement of numbers

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

(B) card games that are -

(i) explicitly authorized by the laws of the State

of Iowa, or

(ii) are not explicitly prohibited by the laws

of the State of Iowa and are played at any location in

the State of Iowa,

but only if such card games are played in conformity

with those laws and regulations (if any) of such State

regarding hours or periods of operation of such card

games or limitations on wagers or pot sizes in such

card games.
(C) The term class II gaming does not include -

(i) any banking card games, including baccarat,

chemin de fer, or blackjack (21), or

(ii) electronic or electromechanical facsimiles of

any game of chance or slot machines of any kind.

(3) The term class III gaming means all forms of gaming

that are not class 11 gaming and includes but is not limited to,

gambling devices, dice games, wheel games, card games,

pari-mutuel wagering on horses and dogs, lotteries, sports

betting pools and sports betting includirig parlay cards.

(4) The term commission means the Sac and Fox Tribe of

the Mississippi in Iowa Gaming Commission.

(5) The term distributor means a person or entity that

sells, leases, markets or otherwise distributes gambling games or

implements of gambling which are usable in the lawful conduct of

gambling games pursuant to this Ordinance, to a licensee

authorized to conduct gambling games pursuant to this Ordinance.

(6) The term gambling device means video games of chance,

progressive slot machines and slot machines.

(7) The term gross receipts means the total sums wagered

and, when applicable, shall include the total sums received from

non-gambling sales made on the premises of or in connection with

the Tribes gaming operation;

(8) The term Indian land means -

(A) all lands within the limits of the Mesquakie

Settlement and such other lands of the Sac and Fox Tribe as may

have Indian reservation status under federal law;

(B) all lands title to which is held in trust by the

United States for the benefit of the Sac and Fox Tribe or any

member of the Tribe, provided that the trust title existed on or

before October 17, 1988;

(C) all lands held by the Sac and Fox Tribe or any

member of the Tribe subject to a restriction by the United States

against alienation and over which the Sac and Fox Tribe exercises

governmental power; and

(D) all lands which may be acquired by the Sac and Fox

Tribe in the future which meet the requirements, if applicable,

of 25 U.S.C. S2719.

(9) The term key employee means:
(a) A person who performs one or more of the

following functions:

(1) Bingo caller;

(2) Counting room supervisor;

(3) Chief of security;

(4) Custodian of gaming supplies or cash;

(5) Floor manager;

(6) Pit boss

(7) Dealer;

(8) Croupier:

(9) Approver of credit; or

(10) Custodian of gambling devices including

persons with access to cash and accounting records within such

devices;

(b) If not otherwise included, any other person

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

or,

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

compensated persons in the gaming operation.

(d) If not otherwise included, a person who has

access to cash, tokens or chips, machine components or other

gaming supplies or who has management, security or accounting

responsibilities.

(10) The term lottery means a game for which chances are

sold, the winning chance or chances being secretly predetermined

or later selected in a chance drawing and in which the holders of

winning chances receive money or something of value. The term

chance drawing includes the identification of winning numbers

or symbols by a mechanical, electronic or electromechanical

device which makes the selection in a random manner. The term

lottery includes Reno, if conducted as a class Ill game, and

the types of games actually being conducted by the Iowa Lottery

unless the game is by definition a video game of chance or slot

machine.

(11) The term 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 part

of a gambling operation.

(12) The term manufacturer means a person or entity that

designs, assembles, fabricates, produces, constructs, or who

otherwise prepares a product or a component part of a product of

any implement of gambling usable in the lawful conduct of

gambling games pursuant to this Ordinance.
(13) The term pari-mutuel means a betting system in which

all persons who bet share in an established prize pool of similar

bets -

(14) The term parlay cards means a form of sports betting

in which the player must correctly select the winners in a

specified minimum number of events in order to win.

(15) The term person having management responsibility for

a management contract means the person designated by the

management contract as having management responsibility for the

gaming operation, or a portion thereof.

(16) The term primary management official means:

(a) The person having management responsibility for a

management contract; or

(b) Any person who has authority:

(1) To hire and fire employees; or

(2) To set up working policy for the gaming

operation; or

(c) The chief financial officer or other person who

has financial management responsibility; or

(d) If not otherwise included, a person who has access

to cash, tokens or chips, machine components or other gaming

supplies or who has management, security or accounting

responsibilities.

(17) The term progressive slot machine means a slot

machine with a payoff which increases as the slot machine is

played.

(18) The term slot machine means a mechanical or

electronic gaming device into which a player deposits coins or

tokens and from which certain numbers or coins are paid out when

a particular, random configuration of symbols appears on the

reels or screen of the device.

(19) The term sports betting means the placing of bets or

wagers on the outcome of any athletic event, sporting event or

similar contest including, but not limited to, the playing of

parlay cards.

(20) The term sports betting pool, means a game in which

numbers are randomly selected by the participants, and winners

are determined by whether the numbers selected correspond to

numbers relating to an athletic event in the manner prescribed by

the rules of the game.
(21) The term tribe means the Sac and Fox Tribe of the

Mississippi in Iowa.

(22) The term video game of chance means a game of chance

played on microprocessor-controlled devices that simulate games

commonly referred to as poker, blackjack, craps, hib, keno,

roulette, line-up symbols and numbers, puiltabs, or other

electronic or electromechanical facsimiles of any game of chance

which are activated by the insertion of a coin, token or currency

and which award coins, additional plays or a written or displayed

statement of the amount of a prize which is redeemable for cash.

EXPLANATION OF AMENDMENT

Additional definitions are required to conform the Ordinance

to federal regulations and to casino operations.

Definitions of the following terms have been added to the

prior Ordinance definitions (numbers in parentheses refer to

amendment sub-paragraphs) under Section 1.03:

(4) Commission

(9) Key employee

(11) management contract

(15) person having management responsibility for a

management contract

(16) primary management official

jms2l7 .

LLB
SAC AND FOX TRI8AL RESOLUTiON

NO. 56 -

1992

WHEREAS, the Sac avid Fox t~be o~ the M~i~ ~y3p~i ~vi iowa -~ o-~gavi-~zed -~

accotdavLce to Sect-~ovi 16 o~ the Reo/tgavi.~zat-~ovi Act o~ iuvie 18,

1934 (48 Stat. 984), avid, a~ amevided btj The Act o~ luvie 15, 1935,

(49 Stat. 378), avid

WHEREAS, the Sac avid Fox Tt)baI. CouvicAif o~ The Sac avid Fox Tt-~be o~ the.

~vi iowa -<i-s /te.~povi~b~e tco/t the qeb-teAat we!~aAe, health,

and educatiiovi o(~ The Sac avid Fox T-t-~be avid the~it tavid-5, avid

WHEREAS, the Sac avid Fox Tt-be o~ the M~~-~pp-~ -~vi Iowa adopted the

Ganu.ing Otd~viavice b~ Re.~o~utxiob-t No. 31-1992, dated Auqw~t 27, 1992,

avid tecornmevided chaviqe-~ weite appitoved bt~ Re.~.soFut-~iovi No. 46-1992,

dated Octoboit 15, 1992, avid

WHEREAS, the Tt-bal Couvic~i autho,tx~zed avid appiioved chaviqe.~ ovi the Gam-~vtg

O/td-tviavice.

~E iT RESOLVED, that the appkove.d chaviqe~~ -<in the Gaim<iviq O-td-<iviavLce cute

hvzebu adopted.

CERTIF 1CATION

We do hoitebti ceAtit~q that the ~oiteqoAivig /t~oJi~ut~<iovi wa4 du&~ pte._evite.d avid

enacted upon at the Spec-at meet-<ivig o,( the Sac avid Fox T/LAibaF Couvtc-<il,

du/q ca~P~ed avid he~!don Decembvi 10 , 1992, w-<ith a quo/turn p-te-~e.vit, bq a

vote o~ 2 -

~oii, 0 -

aqaJn~.st, avid -

2 ab–,tevit-iov~ at the Sac g Fox

Sett~e.ment, Tama, Iowa.

ASSISTA~! IE1-. SAC ~JOX TRI6AL COUNCIL

_____-

SECRETARY, SAC ~ 1-OX t~j5i COUNCIL

Ai
GAMING ORDINANCE OF THE

SAC AND FOX TRIBE OF THE MISSISSIPPI IN IOWA

(ADOPTED DECEMBER 10, 1992)

CHAPTER 1

GENERAL PROVISIONS

Title.

Purpose.

Definitions.

Gaming activity ownership.

Allocation of gaming net revenues.

Gaining facility construction and maintenance.

Withholding tax on winnings.

Civil jurisdiction.

Federal law and Tribe-State compact compliance.

Gaming Commission; establishment; background

investigation; waiver of background investigation;

ineligibility.

Restrictions on Commissioners and Commission

employees; conflict of interest; removal from

office.

Gaming Co]mnission; powers.

Commission approval of nonmanagement contracts.

Minimum standards for inspection and approval

of gambling devices and other gaming equipment.

Monthly commission reports.

Employee, agent, contractor employment records.

Commission records.

Public availability of Commission rules and

regulations.

Licensing; employees, agents, contractors;

management, security and accounting personnel;

gambling equipment distributors.

License eligibility requirements.

License ineligibility; suspension; revocation;

employment ineligibility.

License application requirements.

License application fees.

Commission background investigation; federal

notification of results; waiver of background

investigation.

Classes of licenses.

Section

Section

Section

Section

Section

Section

Section

Section

Section

1.01

1.02

1.03

1. 04

1.05

1.06

1. 07

1.08

1.09

CHAPTER 2

GAMING COM1~ISSION

Section 2.01

Section 2.02

Section

Section

Section

Section

Section

Section

Section

2. 03

2. 04

2. 05

2.06

2 . 07

2. 08

2 . 09

CHAPTER 3

LICENSING

Section 3.01

Section 3.02

Section 3.03

Section

Section

Section

3.04

3.05

3.06

Section 3.07

I
Machine licenses.

Licensing of gaming activity.

Licensing of distributors ~nd manufacturers;

management contractor ineligible; suspension;

revocation.

License contents.

Legal effect of licensure.

Licensee consent to search.

License nontransferable.

License as revocable privilege.

Notification of license issuance.

CHAPTER 4

MANAGEMENT CONTRACTS

Management contract contents; approval.

Management contract disapproval; termination.

Management contractor records.

Management contractor bond.

CHAPTER 5

AUDITING AND ACCOUNTING

Section 5.01 Audits of gaming operation; accounting requirements.

Section 5.02 Accounting records.

Section 5.03 Gaming enterprise reports.

CHAPTER 6

INTERNAL CONTROLS

Section 6.01

Section 6.02

Section 6.03

Section 6.04

Section 6.05

Section 6.06

Section 7.01

Section 7.02

Section 7.03

Section 7.04

Internal control systems.

Computer recording requirements. and monitoring

of slot machines or video games of chance.

Security and surveillance procedures.

Gambling equipment and games acquisition;

distributors notice.

Games and game rules; approval and posting.

Name tags.

CHAPTER 7

PROHIBITED AND UNLAWFUL ACTIVITIES

Prohibited activities.

Wagering by minors prohibited.

Gambling on credit unlawful; licensee loans

unlawful.

Possession of firearms and dangerous weapons

prohibited.

Section

Section

Section

Section

Section

Section

Section

Section

Section

3 . 08

3 . 09

3.10

3.11

3.12

3.13

3.14

3 . 15

3.16

Section 4.01

Section 4.02

Section 4.03

Section 4.04

ii
Section 7.05 Alcohol prohibited; exception.

Section 7.06 Penalties and fines.

Section 7.07 Forfeiture of property.

1.13.
CHAPTER i.

GENERAL PROVISIONS

Section 1.01 Title.

This Ordinance shall be known as the Sac and Fox Tribe of the

Mississippi in Iowa Gaming Ordinance.

Section 1.02 Purpose.

The purpose of this Ordinance is to regulate the conduct of class

II and class III gaming activities conducted on Indian lands of the

Sac and Fox Tribe to generate revenue f or the operation of tribal

government programs and services, promote tribal selfsufficiency

and economic development, shield the operation of gaming from

organized crime and other corrupting influences, and assure that

gaming is conducted fairly and honestly by both the operator and

players. This Ordinance shall supersede any prior gaming Ordinance.

Section 1.03 Definitions.

For purposes of this Ordinance -

(1) The term class I gaming means (RESERVED).

(2) The term class II gaming means

(A) the game of chance commonly known as bingo (whether or

not electronic, computer, or other technologic aids are used in

connection therewith)

(1) which is played for prizes, including monetary

prizes,, with cards bearing numbers or other

designations,

(ii) in which the holder of the card covers such

numbers or designations when objects, similarly numbered

or designated, are drawn or electronically determined,

and

(iii) in which the game is won by the first person

covering a previously designated arrangement of numbers

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

(B) card games that are -

(1) explicitly authorized by the laws of the State
of Iowa, or

(ii) are not explicitly prohibited by the laws of

the State of Iowa arid are played at any location in the

State of Iowa,

but only if such card games are played in conformity with

those laws and regulations (if any) of such State

regarding hours or periods of operation of such card games

or limitations on wagers or pot sizes in such card games.

(C) The term class II gaming does not include

(i) any banking card games, including baccarat,

chemin de fer, or blackjack (21), or

(ii) electronic or electromechanical facsimiles of

any game of chance or slot machines of any kind.

(3) The term class III gaming means all forms of gaming that

are not class II gaming and includes but is not limited to,

gambling devices, dice games, wheel games, card games, parimutuel

wagering on horses and dogs, lotteries, sports betting pools and

sports betting including parlay cards.

(4) The term distributor means a person or entity that

sells, leases, markets or otherwise distributes gambling games or

implements of gambling which are usable in the lawful conduct of

gambling games pursuant to this Ordinance, to a licensee authorized

to conduct gambling games pursuant to this Ordinance.

(5) The term gambling device means video games of chance,

progressive slot machines and slot machines.

(6) The term gross receipts means the total sums wagered

and, when applicable, shall include the total sums received from

nongambling sales made on the premises of or in connection with

the Tribes gaming enterprise;

(7) The term lottery means a game for which chances are

sold, the winning chance or chances being secretly predetermined or

later selected in a chance drawing and in which the holders of

winning chances receive money or something of value. The term

chance drawing includes the identification of winning numbers or

symbols by a mechanical, electronic or electromechanical device

which makes the selection in a random manner. The term lottery

includes keno, if conducted as a class III game, and the types of

games actually being conducted by the Iowa Lottery unless the game

is by definition a video game of chance or slot machine.

(8) The term Indian land means

2
(A) all lands within the limits of the Mesquakie

Settlement and such other lands of the Sac and Fox Tribe as may

have Indian reservation status under federal law;

(B) all lands title to which is held in trust by the

United States for the benefit of the Sac and Fox Tribe or any

member of the Tribe, provided that the trust title existed on or

before October 17, 1988;

(C) all lands held by the Sac and Fox Tribe, or any member

of the Tribe subject to a restriction by the United States against

alienation and over which the Sac and Fox Tribe exercises

governmental power; and

(D) all lands which may be acquired by the Sac and Fox

Tribe in the future which meet the requirements, if applicable, of

25 U.S.C. §2719.

(9) The term manufacturer means a person or entity that

designs, assembles, fabricates, produces, constructs, or who

otherwise prepares a product or a component part of a product of

any implement of gambling usable in the lawful conduct of gambling

games pursuant to this Ordinance.

(10) The term pari-inutuel means a betting system in which

all persons who bet share in an established prize pool of similar

bets.

(11) The term parlay cards means a form of sports betting in

which the player must correctly select the winners in a specified

minimum number of events in order to win.

(12) The term progressive slot machine means a slot machine

with a payoff which increases as the slot machine is played.

(13) The term slot machine means a mechanical or electronic

gaming device into which a player deposits coins or tokens and from

which certain numbers or coins are paid out when a particular,

random configuration of symbols appears on the reels or screen of

the device.

(14) The term sports betting means the placing of bets or

wagers on the outcome of any athletic event, sporting event or

similar contest including, but not limited to, the playing of

parlay cards.

(15) The term sports betting pool means a game in which

numbers are randomly selected by the participants, and winners are

determined by whether the numbers selected correspond to numbers

relating to an athletic event in the manner prescribed by the rules

of the game.

(16) The term tribe means the Sac and Fox Tribe of the

Mississippi in Iowa.

(17) The term video game of chance means a game of chance

3
played on microprocessor-controlled devices that simulate games

commonly referred to as poker, blackjack, craps, hib, keno,

roulette, lineup symbols and numbers, pulitabs, or other

electronic or electromechanical facsimiles of any game of chance

which are activated by the insertion of a coin, token or currency

and which award coins, additional plays or a written or displayed

statement of the amount of a prize which is redeemable for cash.

Section 1.04 Gaming activity ownership.

The Tribe shall have the sole proprietary interest in and the sole

responsibility for the conduct of any gaming activity on Indian

lands. The Tribe shall have the sole control over any bank accounts

holding any financial assets related to the Tribes gaming

enterprise.

Section 1.05 Allocation of gaming net revenues.

The net revenues from any gaming enterprise conducted by the Tribe

pursuant to this ordinance shall be allocated only to -

(1) fund tribal government operations or programs;

(2) provide for the general welfare of the Tribe and

its members;

(3) promote tribal economic development;

(4) donate to charitable organizations; or

(5) help fund operations of local government agencies.

Section 1.06 Gaming facility construction and maintenance.

The construction and maintenance of any gaming facility, as well as

the operation of any gaining, by the Tribe shall be conducted in a

manner which adequately protects the environment and the public

health and safety.

Section 1.07 Withholding tax on winnings.

All winnings received or prizes awarded by a licensed class II or

class III gaming enterprise are Sac and Fox Tribe earned income and

are subject to Tribe and federal income tax laws. An amount

deducted from winnings, or from a cash prize awarded to an

individual, for payment of a tribal tax shall be remitted to the

Tribe on behalf of the individual who won the wager or prize.

Section 1.08 Civil jurisdiction.

(a) The Tribe shall exercise civil jurisdiction concurrent

with the State of Iowa over all civil matters involving players of

authorized class II or class III gaming, licensees and other

persons and entities and that involve the transaction of any

4
business or the commission of tortious acts on or within Indian

land or on or within any other property related to class III gaming

on Indian land. The Tribe shall also exercise such concurrent civil

jurisdiction over any person who commits a tortious act outside of

Indian land provided that such person regularly does or solicits

business, or engages in any other persistent course of conduct, or

derives substantial revenue from goods used or consumed or services

rendered on Indian land, or expects or should reasonably expect the

act to have consequences on Indian land and derives substantial

revenue from interstate or international commerce or from commerce

with the Tribe.

(b) The Commission may require any person or entity licensed

pursuant to this Ordinance or any other person or entity employed

by or doing business with the Tribes gaining enterprise as a patron

or otherwise to contractually or otherwise agree, as a condition of

employment or of doing business with the Tribes gaming enterprise,

that the Tribe shall have exclusive jurisdiction to determine any

civil matter within the civil jurisdiction of the Tribe conferred

by paragraph (a) of this section.

(c) Unless the Tribe has established an adjudicatory mechanism

for the determination of civil matters in a manner that complies

with the due process of law provisions of the Indian Civil Rights

Act, 25 U.S.C. §1302(8), the Tribe shall not exercise the

concurrent civil jurisdiction authorized under paragraph (a) of

this section and the Commission shall not require any person or

entity to agree that the Tribe shall have exclusive civil

jurisdiction pursuant to paragraph (b) of this section.

Section 1.09 Federal law and TribeState compact compliance.

Any provision of this Ordinance or of any rule or regulation issued

pursuant thereto notwithstanding, the requirements of any

applicable federal law or regulation or of any class III gaming

compact between the Tribe and the State of Iowa shall govern

whenever there is an inconsistency between this Ordinance and any

rule or regulation issued thereunder and such federal law or

regulation, or compact.

CHAPTER 2

GAMING COMMISSION

Section 2.01 Gaming commission; establishment; background

investigation; waiver of background investigation;

ineligibility.

(a) There is hereby created the Sac and Fox Tribe of the

Mississippi in Iowa Gaming Commission. The Commission shall consist

of three members of the Tribe, all of whom shall be appointed by

the Tribal Council for such term as the Council may determine. The

5
Tribal Council shall designate one of the three commissioners to be

the chairperson of the Commission.

(b) Appointments to the Conunission shall be temporary pending

the completion of a background investigation and verification that

the appointee is eligible to serve on the Commission. Each person

appointed by the Tribal Council to serve on the Commission shall

file a sworn statement with the Tribal Council, within twenty (20)

days following appointment, containing the information described in

section 3.04(a). A current photograph and two (2) sets of

fingerprints on forms commonly used by the Federal Bureau of

Investigation shall be submitted with the sworn statement. The

sworn statement shall include a waiver of any right of

confidentiality and shall allow access to law enforcement records

of the United States, any state and any tribe, extend to any

financial or personnel record wherever maintained, and authorize

the Commission to obtain information from other state and tribal

gaming jurisdictions regarding license or permit applications or

disciplinary actions, or conduct of the appointee in those

jurisdictions. An appointee who knowingly makes a false, misleading

or erroneous statement in the sworn statement or in any other

information provided to the Tribal Council is guilty of a serious

misdemeanor.

(c) Upon receipt of the sworn statement, photograph, and

fingerprints, the Council shall caus~ a thorough background

investigation to be conducted to verify the truthfulness of the

information provided and to ensure that the appointee is eligible

for appointment. Background investigations may be conducted by the

Federal Bureau of Investigation, by the Division of Criminal

Investigation of the State of Iowa or by another agency qualified to perform such an investigation. In conducting a background

investigation, the identity of each person interviewed in the

course of the investigation shall be kept confidential.

(d) The Tribal Council may waive the background investigation

for persons appointed to the Commission whenever the Federal Bureau

of Investigation, the Division of Criminal Investigation of the

State of Iowa or another agency qualified to perform such an

investigation has completed a background investigation on the

appointee, within the one year preceding the appointment, for and

on behalf of

(1) the Iowa Racing and Gaming Commission, or

(2) a gaming regulatory body of the states of Nevada,

South Dakota or New Jersey,

and the results of such background investigation have been provided to the Tribal Council in sufficient detail to assure that the

appointee is eligible to serve on the Commission. Whenever a full

background investigation is waived under this paragraph, the Tribal

6
Council may require that a background investigation be conducted to

update and make current the background investigation report

recei.~ed from another gaming jurisdiction.

(e) A person shall be ineligible to serve as a Commissioner or

as an employee of the Commission if such person has violated any

rule or regulation of the Commission or has pled guilty to or has

been convicted of any of the offenses listed below, if the Tribal

Council determines that the circumstances of the violation of such

rule or regulation or of the offense giving rise to the conviction

make the persons service as a Commissioner or as an employee of

the Commission a hazard to the regulation and conduct of gaming or

may reasonably undermine the public confidence in the integrity of

the gaming conducted by the Tribe.

(1) Offenses related to bookkeeping; or

(2) Offenses related to gambling; or

(3) Offenses related to cheating, theft, or to any fraud or

deception while participating in gaming activities or otherwise; or

(4) Offenses related to the use of an alias; or

(5) Offenses that are felonies and are drugrelated; or

(6) Offenses that are a serious or aggravated misdemeanor,

including violations of this Ordinance.

If a conviction occurred within the last five (5) years, the person

shall be ineligible to serve as a Commissioner or to be employed by

the Commission. In the event that the Tribal Council determines

that sufficient evidence of rehabilitation exists, the Tribal

Council may appoint a person to the Commission or authorize the

Commission to employ a person who has been convicted within the

last five (5) years of one of the offenses described herein.

If charges are pending against a Commissioner or an employee of the

Commission which, if resulting in a conviction, would disqualify

the Commissioner or employee from serving on or employment with the

Commission, the Commissioner or employee shall be suspended pending

the disposition of the charges.

(f) The Tribal Council shall not appoint to the Commission

and the Commission shall not employ any person 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 of gaming, or create or

enhance the dangers of unsuitable, unfair, or illegal practices,

methods and activities in the conduct of gaming. If the Tribal

Council makes such a determination with respect to a person

temporarily appointed to the Commission, the appointment shall be

7
immediately terminated and such person shall not be entitled to the

hearing provided for in section 2.02(f).

(g) The Tribal Council shall not appoint to the Commission and

the Commission shall not employ any person who has knowingly made

a false statement to the Tribal Council.

(h) If, after the end of any period of temporary appointment

to or after employment by the Commission, the Tribal Council

receives reliable information indicating that a Commissioner or

employee of the Commission, is not eligible to serve oh the

Commission or to be employed by the Commission, the Tribal Council

shall suspend such Commissioner or employee and shall notify such

Commissioner or employee in writing of the suspension and~ proposed

termination of appointment or employment. The notice shall include

a time and place for a hearing, in accordance with section 2.02(f)

on the proposed termination.

(i) The Tribal Council, after the end of any period of

temporary appointment to the Commission, shall revoke any

appointment to the Commission and the Commission shall terminate

the appointment of any employee upon the happening of any event

which would have made the Commissioner or employee ineligible for

appointment or employment if the event had occurred prior to such

appointment or employment, or if the Commissioner or employee of

the Commission violates or permits a violation of a provision of

this Ordinance or of a rule or regulation adopted by the

Commission. Whenever termination of the appointment of a

Commissioner or of the employment of an employee of the Commission

is based on ineligibility for such appointment or employment, the

Commissioner or employee, as the case may be, shall not be entitled

to the hearing provided for in section 2.02(f).

Section 2.02 Restrictions on Commissioners and Commission

employees; conflict of interest; removal from

office.

(a) No member of the gaming Commission or any employee of the

Commission or a member of their immediate family may be a license

holder under this Ordinance, except that such immediate family

members shall be eligible to apply for an employee license under

section 3.07 of this Ordinance. Commissioners and Commission

employees may not gamble in an establishment licensed by the

Commission and shall have no personal financial interest in any

gambling by any patron other than the financial interest shared

equally with all other members of the Tribe.

(b) No member of the Commission or any employee of the

Commission or a member of their immediate family, directly or

indirectly, individually, or as a member of a partnership or other

association, or as a shareholder, director, or officer of a

corporation shall have an interest in a business which contracts

8
for the operation and management of the Tribes gaming enterprise,

or any marketing or supplying of equipment and materials in

connection therewith.

(c) A member of the Commission or any employee of the

Commission or a member of their immediate family shall not ask for,

offer to accept, or receive a gift, gratuity, or other thing of

value from a person or entity licensed under this Ordinance or from

a person or entity contracting or seeking to contract with the

Tribes gaming enterprise for the operation and management of such

enterprise or to supply gaming equipment or materials.

(d) A person or entity licensed under this Ordinance or a

person or entity contracting or seeking to contract with the

Tribes gaming enterprise for the operation and management of such

enterprise or to supply gaming equipment or materials shall not

offer a member of the Commission or any employee of the Commission

or a member of their immediate family a gift, gratuity, or other

thing of value.

(e) As used in this section, member of their immediate

family means a spouse, child, stepchild, brother, brotherinlaw,

stepbrother, sister, sisterinlaw, stepsister, parent, parentin

law, or stepparent of the Commissioner or employee.

(f) Whenever there is reasonable cause to believe that a

Commissioner or employee of the Commission has violated any

provision of this Ordinance or any rule or regulation promulgated

pursuant thereto, the Tribal Council shall immediately suspend such

Commissioner or employee. Within five (5) days following any

suspension, the Tribal Council shall notify the Commissioner or

employee of the alleged violation and of a hearing before the

Tribal Council or its designee. Unless a suspended Commissioner or

employee resigns or is cleared of any wrongdoing before a hearing

is held, the Tribal Council or its designee shall conduct a hearing

on the alleged violation no later than thirty (30) days following

the date of suspension, provided that the Tribal Council may extend

this time for not more than an additional thirty (30) days if an

investigation of the alleged violation has not been completed.

(1) At any hearing, a suspended Commissioner or employee

shall have an opportunity to be heard, including an opportunity to

present oral and documentary evidence, cross-examine witnesses and

present oral arguments within limits established by the Tribal

Council.

(2) When holding a hearing under this subsection, the

Tribal Council or the Tribal Councils designee may administer

oaths and affirmations, issue subpoenas to compel the attendance of

witnesses or procure the production of documents, and take such

other action as may be necessary to conduct the hearing in a manner

most likely to result in a fair disposition.

9
(3) Whenever a preponderance of the evidence introdjiced

at a hearing supports the conclusion that a Commissioner or an

employee of the Commission has violated any provision of this

Ordinance or any rule or regulation promulgated pursuant thereto,

such Commissioner or employee shall be permanently removed the

office of Commissioner or the position of employee, as the case may

be, and shall be permanently ineligible from appointment as a

Commissioner and from employment by the Commission.

(g) A violation of paragraphs (a), (b), (c) and (d) of this

section is a serious misdemeanor.

section 2.03 Gaming Commission; powers.

The Commission shall supervise all gambling operations governed by

this Ordinance. The commission may adopt such rules and regulations

as it may deem necessary to carry out the provisions of this

Ordinance and shall have the following powers:

(1) To identify occupations within the Tribes gaming

enterprise which require licensing and adopt standards for

licensing the occupations including establishing fees and

durational terms for the occupational licenses;

(2) To investigate applicants and determine the eligibility of

applicants for a license;

(3) To license any person, employee, agent or contractor

working in or for the Tribes gaming enterprise who requires a

license, to license an~ person, organization or entity selling,

leasing or otherwise distributing gambling equipment to the Tribes

gaming enterprise, including establishing fees and durational terms

for such licenses;

(4) To investigate and approve any contractors of the Tribes

gaming enterprise, or any ancillary contractors of any management

contractor, who provide supplies, services, concessions or property

to the Tribes gaming enterprise or to any management contractor in

connection therewith;

(5) To limit, condition, suspend, restrict or revoke any

license it may issue, and assess fines;

(6) To adopt standards, including game rules, under which all

gambling operations shall be held, including regulation of the

prize and wagering structure in accordance with the applicable

provisions, if any, of any class III gaming compact between the

Tribe and the State of Iowa entered into pursuant to federal law;

(7) To inspect and examine all premises wherein gaming is

conducted or gambling devices or equipment are manufactured, sold,

or distributed;

10
(8) To inspect all equipment and supplies in, upon or about a

gaming establishment, or inspect any equipment or supplies,

wherever located, which may or have been used in the gaining

establishment;

(9) To summarily seize and remove from a gaming establishment

and impound equipment, supplies, and other property for the purpose

of examination, inspection, evidence or forfeiture;

(10) To enter th~ office, facilities, or other places of

business of a licensee to determine compliance with this Ordinance;

(11) To access upon demand and inspect, examine, copy and

audit all papers, books and records of applicants and licensees

respecting any revenue or income produced by any gaming business;

(12) To require verification of the daily gross revenues and

income of any licensed gaming activity, and verification of all

other matters affecting the enforcement of the policy of or any of

the provisions of this Ordinance;

(13) To seize and impound any patrons winnings which the

Commission may have reason to believe may have been won or obtained

in violation of this Ordinance or any other law pending a civil

forfeiture hearing on such seizure and/or a criminal proceeding in

connection therewith;

(14) To investigate alleged violations of this Ordinance, the

Commission rules, regulations, orders or final decisions, any class

III gaming compact entered into between the Tribe and the State of

Iowa, and any other applicable laws, and to take appropriate

disciplinary action, including the imposition of civil fines,

against a licensee or any employe.e of a licensee for the violation,

or institute appropriate legal action for enforcement, or both;

(15) To require the suspension, revocation or other

appropriate disposition of the license of a licensee for a

violation by the licensee or an employee of the licensee of this

Ordinance or a Commission rule or regulation or for engaging in a

fraudulent practice;

(16) For the purpose of enforcing the provisions of this

Ordinance, to exercise the powers of a peace officer of the Tribe;

(17) To issue subpoenas for the attendance of witnesses and

subpoenas duces tecum for the production of books, records and

other pertinent documents, and administer oaths and affirmations to

the witnesses, when, in the judgment of the Commission, it is

necessary to enforce this Ordinance or the rules and regulations of

the Conunission;

(18) To determine the payouts from the gambling games

11
authorized under this Ordinance and to set the payout rate for all

slot machines, such payout rate to be in accordance with any

applicable requirements of the compact between the Tribe and the

State of Iowa governing class III gaming on Indian lands of the

Tribe;

(19) To provide for the continuous videotaping of all gambling

activities conducted at the Tribes gaming enterprise under

guidelines set by rule of the Commission;

(20) To provide for adequate security at the Tribes gaming

enterprise;

(21) To adopt such rules and regulations as may be necessary

to carry out the provisions of this Ordinance and the

responsibilities of the Tribe under any applicable federal law and

any class III gaming compact entered into between the Tribe and the

State of Iowa; and

(22) To take any other action as may be reasonable and

appropriate to enforce this Ordinance and the rules and regulations

of the Commission.

Section 2.04 Commission approval of nonmanagement contracts.

All contracts entered into by the Tribes gaming enterprise or by

any management contractor on behalf thereof must be approved by the

Commission if the contract:

(1) Exceeds the value of $5,000.00 in any 12month period.

(2) Is a contract in which any employee, agent or contractor,

including any management contractor employed by the Tribe or by the

Tribes gaming enterprise, or any officer or director of any such

management contractor or of any parent company thereof has either

a direct or indirect economic or beneficial interest.

Section 2.05 Minimum standards for inspection and approval of

gambling devices and other gaming equipment.

(a) Prior to the installation and use of a gambling device and

other gaming equipment, the Commission shall inspect, test and

consider the gambling device or other gaming equipment for

approval. The Commission shall not approve a gambling device or

other gaming equipment unless the tests or inspection conducted

indicate that such gambling device or other gaming equipment meets

the minimum standards established by the Commission consistent with

any applicable provisions of a class III gaming compact entered

into between the Tribe and the State of Iowa.

(b) The Commission may waive the inspection and testing

requirements of this section for any gambling device whenever an

12
identical gambling device is currently approved for use by the

(1) Iowa Racing and Gaming Commission, or

(2) by a gaming regulatory body of the states of Nevada,

South Dakota or New Jersey, and the test results from such

jurisdictions show that the gambling device meets the

standards established pursuant to subsection (a) . The test

results indicating that the device complies with the

applicable standards must be submitted to the Commission and

the manufacturer of the gambling device must certify to the

Commission and, if required by a class III gaming compact

entered into between the Tribe and the State of Iowa, to the

State of Iowa that each gambling device to be shipped

complies in all respects with such standards.

(c) The Commission may require a prototype or sample of any

model of gambling device or other gaming equipment used in the

Tribes gaming enterprise to be placed and retained in its custody

as a control for comparison purposes.

(d) Any evidence that gambling devices or other gaining

equipment used in the Tribes gaming enterprise has been tampered

with or altered in any way that would affect the integrity,

fairness, honesty or suitability of the device or equipment shall

be reported to the Commission.

Section 2.06 Monthly commission reports.

The gaming commission shall make a monthly report to the Tribal

Council. The report shall include a full and complete statement of

gaming revenues paid to the Tribe and to any management contractor,

expenses and all other financial transactions of the commission, a

summary of all licensing and enforcement actions, such other

information as to which the Commission may wish to advise the

Council, and information on any other matters requested by the

Council.

Section 2.07 Employee, agent, contractor employment records.

The Commission shall retain applications for licensure or other

employment in connection with the Tribes gaining enterprise,

reports of background investigations, if any, and other employee,

agent or contractor records for at least the term of employment as

an employee, agent or contractor but in no event for a period less

than 3 years from the date of such employment.

Section 2.08 Commission records.

(a) Gaming information and records enumerated in this section

are confidential and may not be disclosed except pursuant to court

order. No person may use a subpoena, discovery or other applicable statutes to obtain such information or records. Information and

13
records considered confidential include:

(1) Tax returns of individual licensees;

(2) Applications, credit, medical and security reports of

applicants for licenses and of other persons seeking or doing

business with the Conmiission;

(3) Marketing, financial or sales data, the disclosure of

which may be harmful to the competitive position of the Tribes

gaming enterprise, its licensees or persons seeking or doing

business with the Commission; and

(4) Audit work papers, worksheets and auditing procedures

used by the Commission, its agents or employees.

(b) Nothing in this section shall be construed to prohibit the

Commission from disclosing information and records in accordance

with the provisions of any class III gaming compact entered into

between the Tribe and the State of Iowa, or with any applicable

federal law or regulation.

Section 2.09 Public availability of Commission rules and

regulations.

All rules and regulations, including game rules, issued or approved

by the Commission shall be available to any person making a request

for such.

CHAPTER 3

LICENSING

Section 3.01 Licensing; employees, agents, contractors;

management, security and accounting personnel;

gambling equipment distributors.

Any employee, agent or contractor working in or for the Tribes

gaming enterprise who has access to cash, tokens or chips, machine

components or other gaming supplies or who has management, security

or accounting responsibilities, or any person, organization or

entity selling, leasing, marketing or otherwise distributing

gambling equipment, games or implements of gambling to the Tribes

gaming enterprise shall be required to have and display

prominently, or display upon request, an appropriate, valid and

current tribal license to do business at or with the Tribes gaming

enterprise.

For the purposes of this section, each person or entity having a

direct financial interest in or management responsibility for a

management contract, including

14
(1) each member of the board of directors and each officer of

a management contractor,

(2) the ten (10) persons who have the greatest direct or

indirect financial interests in an entity that is a party to a

management contract,

(3) in the case of a corporation that is a party to a

management contract, each shareholder who directly or indirectly

owns 10 percent or more of the issued and outstanding stock of the

corporation alone or in combination with another stockholder who is

a spouse, parent, child or sibling,

(4) in the case of a trust that is a party to a management

contract, each beneficiary or trustee,

(5) in the case of a partnership that is a party to a

management contract, each partner

shall be considered to have management responsibilities.

Section 3.02 License eligibility requirements.

In order to be eligible for a license to conduct business at the

Tribes gaming enterprise, applicants must:

(1) be at least eighteen (18) at the time of their employment

at the Tribes gaming operation;

(2) be of good repute and moral character;

(3) not have been denied a gaming license by the Tribe, the

State of Iowa or any other gaming licensing jurisdiction, or

currently have a gaming license which has been suspended by the

Tribe, the State of Iowa or any other gaming licensing

jurisdiction, or have had a gaming license revoked by the Tribe,

the State of Iowa or any other gaming licensing jurisdiction;

(4) not be employed in any part-time or fulltime employment

with a government or private employer in any capacity which would

create a conflict of interest between the applicants- employment

and the interests and objectives of the licensed employment; and

(5) not be ineligible for a license under section 3.03 of this

Ordinance.

Section 3.03 License ineligibility; suspension; revocation;

employment ineligibility.

(a) The Commission shall not issue a license to any person or

entity that has refused to sign the waiver of confidentiality

required under section 3.04(a).

15
(b) The Commission may find an applicant ineligible for a

license and deny, suspend, or revoke the license of any applicant

who has violated any rule or regulation of the Commission or has

pled guilty to or has been convicted of any of the offenses listed

below, if the Commission determines that the circumstances of the

violation of such rule or regulation or of the offense giving rise

to the conviction make the applicants presence at the Tribes

gaming enterprise a hazard to the regulation and conduct of gaming

or may reasonably undermine the public confidence in the integrity

of the gaming conducted at such enterprise.

(1) Offenses related to bookkeeping; or

(2) Offenses related~ to gambling; or

(3) Offenses related to cheating, theft, or to any fraud

or deception while participating in gaming activities or otherwise;

or

(4) Offenses related to the use of an alias; or

(5) Offenses that are felonies and are drugrelated; or

(6) Offenses that are a serious or aggravated

misdemeanor, including violations of this Ordinance.

If a conviction occurred within the last five (5) years, the

license shall be denied. If conviction occurred within the last ten

(10) years, a license may be issued if the Commission determines

that sufficient evidence of rehabilitation exists.

The Commission shall temporarily deny a license and shall suspend

an existing license if charges are pending against an applicant

which, if resulting in a conviction, would disqualify the applicant

from receiving or holding a license.

(C) The Commission shall not issue a license to any person or

entity determined to be a person or entity whose prior activities,

criminal record, if any, or reputation, habits and associations

pose a threat to the public interest or to the effective regulation

of gaming, or create or enhance the dangers of unsuitable, unfair,

or illegal practices, methods and activities in the conduct of

gaming. No licensed gaming enterprise shall employ such a person in

any capacity.

(d) The Commission shall not issue a license to any person or

entity that has knowingly made a false statement of a material fact

to the Commission and may deny a license to any person or entity

that has made any false statement in the license application.

(e) The Commission shall fine, revoke, suspend, limit or

refuse to renew the license of any person or entity upon a

16
determination that such person or entity delayed, maneuvered or

took any action, or attempted to delay, maneuver or take any action

to unlawfully divert gaming or other proceeds properly belonging to

the Tribe.

(f) The Commission shall fine, revoke, suspend, limit or

refuse to renew the license of any person or entity having

management responsibilities at the Tribes gaming enterprise upon

a determination that such person or entity failed to notify the

Commission of any new prospective employee, agent or contractor

who, upon employment is to have access to cash, tokens or chips,

machine components or other gaming supplies or who is to have

management, security or accounting responsibilities.

(g) The Commission shall fine, revoke, suspend, limit or

refuse to renew the license of any person or entity having

management responsibilities at the Tribes gaming enterprise upon

a determination that such person or entity failed to notify the

Commission of any proposed or actual ancillary contractors who

provide supplies, services, concessions or property to the Tribes

gaming enterprise or to the management contractor in connection

therewith, as the case may be, and secure the approval of the

Commission for the employment of such contractor.

(h) The employment of any person required to have a license in

order to conduct business at the Tribes gaming enterprise as an

employee, agent or contractor shall automatically terminate if such

employee, agent or contractor is not licensed 90 days following the

commencement of employment.

(1) If, after the issuance of a gaming license, the Commission

receives reliable information indicating that an employee, agent or

c.ontractor is not eligible to have a license to conduct business at

the Tribes gaming enterprise, the Commission shall suspend such

license and shall notify the licensee in writing of the suspension

and proposed revocation. When the suspension involves an employee,

agent or contractor who has access to cash, tokens or chips,

machine components or other gaming supplies or who has management,

security or accounting responsibilities, the notice shall include

a time and place for a hearing on the proposed license revocation.

After a revocation hearing, the Commission shall notify the

National Indian Gaming Commission of its decision to revoke or to

reinstate the license. The Commission may act to revoke or

reinstate the license of any other licensee under such procedures

as it may determine appropriate.

(j) The Commission shall revoke and refuse to renew an

existing license upon the happening of any event which would have

made the licensee ineligible for a license if the event had

occurred prior to the issuance of the license, or if the licensee

knowingly made a false statement on the license application, or if

the licensee or an agent of the licensee violates or permits a

17
violation of a provision of this Ordinance or of a rule or

regulation adopted by the Commission.

(k) A former licensee whose license is revoked is not eligible

to receive another license.

Section 3.04 License application requirements.

Any person, organization or entity required under section 3.01 to

secure a license in order to conduct business at the Tribes gaming

enterprise must apply for the appropriate license at least thirty

(30) days prior to conducting such business or as otherwise allowed

in the discretion of the Commission. The application shall be

sworn.

(a) Employee, agent or contractor license application. The

license application of any person or entity required to have a

license in order to conduct business at the Tribes gaming

enterprise as an employee, agent or contractor shall contain, at a

minimum, the following information about the applicant:

(1) Full name, including other names used (oral or

written);

(2) Date of birth and place. of birth;

(3) Social security number(s);

(4) Citizenship(s), including tribal affiliation(s);

(5) Gender;

(6) All languages (spoken or written);

(7) Whether the applicant has an addiction to alcohol or

a controlled substance;

(8) Whether the applicant has a history of mental illness

or repeated acts of violence;

(9) Physical description;

(10) Residence(s) addresses since age eighteen (18);

(11) Employment history since age eighteen (18),

including for the previous 5 years, businesses and employment

positions held, ownership interests in those business, and business

addresses;

(12) Drivers license numbers for the previous 5 years;

(13) Current business and residence telephone numbers;

18
(14) Criminal history, including major traffic offenses,

and including the date and place of any felony or misdemeanor

(excluding minor traffic violations) arrest, the charge, details

surrounding any arrest or charges, the name and address of the

court involved, the disposition of any charges filed and the date

of disposition;

(15) Whether the applicant has ever held or applied for

a professional or occupational license or permit issued by any

state, Indian tribe or any other jurisdiction, the jurisdiction in

which the license or permit was issued or applied for, the type of

license or permit, the license or permit number, and the details

surrounding any denial of the license or permit or the withdrawal

of the application therefor, the details surrounding any

suspension, revocation, or other disciplinary action taken based on

the license or permit, and if not current, the reason it is not

current;

(16) Whether the applicant has ever held or applied for

a gambling related license or permit issued by any state, Indian

tribe or any other jurisdiction, the jurisdiction in which the

license or permit was issued or applied for, the name and address

of any licensing or regulatory agency with which the application

for a license or permit related to gaming was filed, the type of

license or permit, the license or permit number, the details

surrounding any denial of the license or permit or the withdrawal

of the application theref or, the details surrounding any

suspension, revocation, or other disciplinary action taken based on

the license or permit, and if not current, the reason it is not

current;

(17) Whether the applicant has ever had any experience

related to any agreement with any gaming operation, the exact

nature of the applicants role in the operation, the name and

address of all parties to the agreement, the place the agreement

was performed, and the dates covered by the agreement;

(18) A description of any previous business relationships

with the gaming industry generally, including ownership interests

in those businesses;

(19) A description of any previous business relationships

with Indian tribes, including ownership interests in those

businesses;

)

(20) A complete financial statement showing all sources

of income for the previous three (3) years, and including assets,

liabilities, and net worth as of the date of submission;

(21) Whether the applicant has ever been an investor in

any gaming operation, the exact nature of the investment, the name

and address of all other investors holding (directly or indirectly)

19
an interest of ten (10) percent or more in the gaming operation,

and the name and address of the gaming operation; and

(22) Names and current addresses of at least three (3)

personal references, including one personal reference who was

acquainted with the applicant during each period of residence

listed under paragraph (a) (10) of this section.

The applicant will also be required to submit with the application

a current photograph and two (2) sets of fingerprints on forms

commonly used by the Federal Bureau of Investigation, as well as

any other information deemed relevant or requested, either orally

or in writing, by the Commission.

The application shall include a waiver of any right of

confidentiality and shall allow access to law enforcement and

regulatory agency records of the United States, any state, any

tribe, and any foreign government, extend to any financial or

personnel record wherever maintained, and authorize the Commission

to obtain information from other state and tribal gaming

jurisdictions regarding license or permit applications or

disciplinary actions, or conduct of the applicant or any of its

shareholders, partners, agents, or employees in those

jurisdictions. The waiver shall also authorize the Tribe to

disclose any of the information contained in the application to

appropriate federal, tribal, state, or foreigu law enforcement and

regulatory agencies in connection with a background investigation

or when relevant to civil, criminal or regulatory investigations or

prosecutions or investigations of activities associated with a

gaming .operat ion.

For the purposes of this subsection, applicant includes each member

of the board of directors and each officer of a management

contractor.

A person who knowingly makes a false, misleading or erroneous

statement on the applicatiQn or in any statement attached to the

application is guilty of a serious misdemeanor.

(b) Management contractor license application.

(1) In addition to the applicable information required

under subsection (a), where the applicant for a management contract

is an entity, the applicatior shall state:

(1) Applicants name and address;

(ii) Name and address of applicants parent company,

if any;

(iii) Names and addresses of each person comprising

such entity or parent entity who has a direct financial interest

20
in, or management responsibility for, the management contract. For

each such person, the application shall include the information

required under subsection (a);

(iv) Names and addresses of each director, officer,

stockholders who hold (directly or indirectly) 10 percent or more

of the issued and outstanding stock, and other owners who hold

(directly or indirectly) 10 percent or more of the ownership

interest in such applicant entity and in the applicants parent

company, if any, including the beneficiary or trustee of any trust,

and any partner. For each such person, the application shall

include the information required under subsection (a);

(v) Whether the applicant has ever failed to meet a

monetary obligation in connection with any gambling enterprise;

(vi) Name and address of all proposed or actual

ancillary contractors who provide supplies, services, concessions

or property to the Tribes gaming enterprise or to the management

contractor in connection therewith. If the identity of any such

contractor is not known at the time the application is submitted,

the management contractor shall have a continuing duty throughout

the term of any management contract to provide this information to

the Commission;

(vii) Any previous business relationships with

Indian tribes, including ownership interests in those businesses;

(viii) Any previous business relationships with the

gaming industry generally, including ownership interests in those

businesses;

(ix) Criminal history, including the date and place

of any felony or misdemeanor charge, details surrounding any arrest

or charges, the name and address of the court involved, the

disposition of any charges filed and the date of disposition; and

(x) Whether the entity has ever held or applied for

a gambling related license or permit issued by any state, Indian

tribe or any other jurisdiction, the jurisdiction in which the

license or permit was issued or applied f or, the name and address

of any licensing or regulatory agency with which the application

for a license or permit related to gaming was filed, the type of

license or permit, the license or permit number, the details

surrounding any denial of the license or permit or the withdrawal

of the application therefor, the details surrounding any

suspension, revocation, or other disciplinary action taken based on

the license or permit, and if not current, the reason it is not

current;

(2) The application shall also include

21
(i) Copies of documents establishing the existence

of the entity, such as the partnership agreement, the trust

agreement, or the articles of incorporation;

(ii) Copies of documents designating the person who

is charged with acting on behalf of the entity;

(iii) Copies of bylaws or other documents that

provide the day-to-day operating rules for the organization; and

(iv) Complete financial statements for the previous

three (3) fiscal years.

Cc) Seller, lessor or distributor license application. The

license application of any person, organization or entity for a

license to sell, lease, market or otherwise distribute gambling

games, implements or equipment to the Tribes gaming enterprise

shall contain, at a minimum, the following information about the

applicant:

(1) Name(s) and mailing address of the person or entity making

the application;

(2) Names and addresses of all parties having a direct or

indirect financial interest in or with respect to the applicant and

their interest in and connection to the applicant;

(3) Type of activity to be engaged in under the license;

(4) Explicit and detailed disclosure of any criminal record,

including any delinquent taxes owed to the federal or any state

government by the applicant, any person holding a managerial

position or ownership interest in the applicant organization, and

any party of interest whose name appears on the application;

(5) Whether the applicant is licensed by any Indian tribe, the

State of Iowa or any other State to sell, lease or otherwise

distribute gambling equipment together with proof that the

applicant holds a current and valid distributor or manufacturer

license from either the States of Iowa, New Jersey, Nevada or South

Dakota;

(6) Whether the applicant has ever had a distributor or

manufacturer license revoked or suspended by an Indian tribe or by

the state that issued the license and, if so, the circumstances

surrounding the Indian tribes or states action; and

(7) A statement of waiver authorizing the Commission and/or

the State of Iowa to conduct a background investigation of the

applicant and any person whose name is required to appear on the

application.

22
The Commission, in its discretion, may waive the requirements of

this subsection if the applicant presents proof and the Commission

verifies that the applicant holds a current and valid distributor

or manufacturer license from either the States of Iowa, New Jersey,

Nevada or South Dakota, provided that such applicant is not the

subject of any investigation or other action that could result in

the suspension or revocation of such license.

(d) The application for each type of license described in this

section shall require the applicant to execute an acknowledgement

that licensure pursuant to the provisions of this Ordinance

constitutes the applicants formal acquiescence to the civil

jurisdiction of the Tribe. Whenever the applicant is an Indian not

a member of the Tribe, the acknowledgement shall express the

applicants formal acquiescence to the civil and criminal

jurisdiction of the Tribe. The acknowledgement shall be stated in

bold face and with each letter of each word capitalized.

Section 3.05 License application fees.

The Commission shall set a fee to defray the costs associated with

application processing, the search and classification of

fingerprints and background investigations. The Commission shall

not authorize the search and classification of fingerprints or

begin any background investigation until it receives a deposit from

the license applicant to cover the initial costs of the background

investigation, including the search and classification of

fingerprints. The fees may be periodically adjusted for each

application to assure that the administrative and other costs of

reviewing and investigating each application are covered by the

license applicant. The license applicant shall be billed for the

costs of the investigation as it proceeds. The investigation shall

be stopped if the unpaid costs exceed the amount of the deposit

available. All fees shall be made payable to the Tribe.

Section 3.06 Commission background investigation; federal

notification of results; waiver of background

investigation.

(a) Upon receipt of an application for a license to conduct

business at or with the Tribes gaming enterprise as an employee,

agent or contractor, the Commission, prior to the issuance of any

license, shall cause a thorough background investigation to be

conducted on the applicant to verify the truthfulness of the

information provided by the applicant and to ensure that persons

and entities licensed by the Commission are eligible for licensure.

Background investigations may be conducted by the Federal Bureau of

Investigation, by the Division of Criminal Investigation of the

State of Iowa or by another agency qualified to perform such an

investigation. In conducting a background investigation, the

identity of each person interviewed in the course of the

investigation shall be kept confidential. Upon completion of any

23
background investigation and before the issuance of a license to

any employee, agent or contractor, the Commission shall notify the

National Indian Gaming Commission of the results of such background

investigation, including whether the license applicant was found

eligible for licensure and the basis for such finding. The

Conunission shall also submit management contractor background

investigation results to the State of Iowa in accordance with the

applicable provisions of any class III gaming compact entered into

between the Tribe and the State.

(b) The Commission may waive any background investigation

required under this section whenever the Federal Bureau of

Investigation, the Division of Criminal Investigation of the State

of Iowa or another agency qualified to perform such an

investigation has completed a background investigation on the

license applicant, within the one year preceding the date of the

application, for and on behalf of

(1) the Iowa Racing and Gaming Commission, or

(2) a gaming regulatory body of the states of Nevada,

South Dakota or New Jersey,

and the results of such background investigation have been provided

to the Commission in sufficient detail to assure that the applicant

is eligible for licensure. Whenever a full background investigation

is waived under this paragraph, the Commission may require that a

background investigation be conducted to update and make current

the background investigation report received from another gaming

jurisdiction.

Section 3.07 Classes of licenses.

Upon proper application and approval, the following classes of

licenses may be issued by the Commission:

(i.) Class II gaming activity license. There shall be no fee

for this license. The license shall be site specific and shall be

valid until revoked or cancelled by the Commission or the Tribal

Council.

(2) Class III gaming activity license. There shall be no fee

for this license. The license shall be site specific and shall be

valid until revoked or cancelled by the Commission or the Tribal

Council.

(3) Hanagenient contractor license. The fee for such a license

shall be $1,000.00. The license shall be site specific and shall be

valid for a period of one year subject to renewal for the term of

any valid management contract. The holder of such a license shall

be entitled to manage and operate the Tribes class II or class III

gaming enterprise on Indian lands subject to the ordinances and

24
regulations of the Tribe and the Commission.

(4) Key employee or primary management official license. Any

employee, agent or contractor working in or for the Tribes gaming

enterprise who has access to cash, tokens or chips, machine

components or other gaming supplies or who has management, security

or accounting responsibilities must obtain such a license. The

license shall be valid for a period of one year and shall have a

license fee of $50.00.

(5) Employee license. Any employee, not licensed as a key

employee or primary management official, must obtain such a

license. The license shall be valid for a period of one year and

shall have a license fee of $20.00.

(6) Manufacturer or distributor license. Any manufacturer or

distributor of gambling equipment, games or implements of gambling

to be used in the Tribes gaming enterprise must obtain such a

license. The license shall be valid for a period of one year. The

manufacturers license shall have a fee of $100.00. A distributors

license shall have a fee of $400.00.

(7) Machine license. Any person or entity entering into a

lease or sales agreement with the Tribe regarding slot machines or

video games of chance must obtain, for each slot machine or video

game of chance to be placed in the Tribes gaming enterprise, such

a license for any period of time during which the Tribe is not the

100% owner of such slot machine or video game of chance. The

license shall have the fee of $1.00 for each day during which the

Tribe is not the 100% owner of such slot machine or video game of

chance.

All fees shall be made payable to the Tribe.

Section 3.08 Machine licenses.

In addition to a distributor license provided for in sections 3.01

and 3.10, any person or entity entering into a lease or sales

agreement with the Tribe regarding slot machines or video games of

chance must obtain, and maintain throughout the duration of any

such agreement, an annual nontransferable license for each slot

machine and video game of chance to be placed in the Tribes gaming

enterprise. The license application of any person or entity

entering into such lease or sales agreement shall contain, at a

minimum, the following information about the applicant and the

machines:

(1) Name and address of the applicant with proof of a current

and valid distributor or manufacturer license issued by the Tribe

and by either the States of Iowa, New Jersey, Nevada or South

Dakota;

25
(2) Identification numbers or codes for each slot machine or

video game of chance placed in the Tribes gaming enterprise,

including the manufacturer, the serial number and the model number;

and

(3) Proof that the slot machine or video game of chance is

currently approved for use by the Iowa Racing and Gaming

Commission; or proof that the slot machine or video game of chance

has been tested and approved by a gaming regulatory body of the

States of New Jersey, Nevada or South Dakota and that such test

shows that the machine meets the standards set forth in Appendix

A of the Tribal/State Compact between the Tribe and the State of

Iowa; or proof of approval and certification by an approved gaming

test laboratory that the slot machine or video game of chance or a

prototype thereof meets the standards set forth in Appendix A of

the Tribal/State Compact between the Tribe and the State of Iowa.

Section 3.09 Licensing of gaming activity.

Class II and class III gaming activities may be conducted on Indian

lands only if licensed.

(a) Licensing of class II gaming activity. The Commission may

license and regulate a tribally owned class II gaming activity if

the State of Iowa permits such gaming for any purpose by any

person, organization or entity (and such gaming is not otherwise

specifically prohibited on Indian lands by Federal law).

(b) Licensing of class Ill gaming activity. The Commission may

license and regulate a tribally owned class III gaming activity if

the State of Iowa permits such gaming activity for any purpose by

any person, organization or entity and the gaming is conducted in

conformance with a Tribal-State compact entered into by the Tribe

and the State of Iowa that is in effect.

(c) Separate license for each facility. The commission shall

issue a separate license for each place, facility, or location on

Indian lands at which class II or class III gaming is conducted.

The license shall be displayed in a prominent place on the premises

where the class II or class III gaming activity is conducted.

Section 3.10 Licensing of distributors and manufacturers;

management contractor ineligible; suspension;

revocation.

(a) A manufacturer or distributor of gambling games or

implements of gambling shall annually apply for a license upon a

form prescribed by the Commission before the first day of April in

each year and shall submit the appropriate license fee. An

applicant shall provide the necessary information as the Commission

requires.

26
(b) A management contractor or any person or entity licensed

for employment in the Tribes gaming enterprise shall not be a

manufacturer or distributor of gambling games or implements of

gambling.

(c) The Commission shall suspend, revoke or refuse to renew

the license of any manufacturer or distributor of gambling games or

implements of gambling if the State of Iowa or any other state

gaming jurisdiction has suspended, revoked or refused to renew the

similar license of such manufacturer or distributor.

Section 3.11. License contents.

Each license shall set forth the name of the licensee, the type of

license granted, and the expiration date of the license. The

license shall also contain a statement that in accordance with the

licensees license application, the licensee has formally

acciuiesced to the civil jurisdiction or, in the case of an Indian

licensee not a member of the Tribe, to the civil and criminal

jurisdiction of the Tribe as a condition for licensure.

Section 3.12 Legal effect of licensure.

Any person or entity who accepts a license or the renewal thereof

pursuant to the provisions of this Ordinance shall be deemed to

have agreed to be bound by the provisions of this Ordinance, any

rules and regulations issued in accordance therewith, the

provisions of any class III gaming compact entered into between the

Tribe and the State of Iowa, and any amendments to such Ordinance,

rules or regulations and compact. It is the responsibility of the

licensee to be informed regarding the provisions of this Ordinance,

the rules and regulations issued pursuant thereto and any class III

gaming compact entered into between the Tribe and the State of

Iowa. Ignorance of such provisions will not excuse violations.

Section 3.13 Licensee consent to search.

Each licensee shall consent to the employees or agents of the

Commission to the search without a warrant of the licensees

person, personal property and effects, and premises which are

located within the Tribes gaming enterprise or adjacent facilities

under control of or utilized by the licensee to inspect for or

investigate violations of this Ordinance or violations of rules or

regulations adopted by the Commission.

Section 3.14 License non-transferable.

Any license issued by the Commission authorizing any person,

organization, or entity to conduct business at the Tribes gaming

enterprise shall be nontransferable and shall prohibit the

licensee from transferring, subcontracting or assigning to any

other person, organization or entity any of its rights or duties

27
relating to the license either directly or indirectly or, in the

case of a management contractor, any ownership interest in the

management contract.

Section 3.15 License as revocable privilege.

Any license issued by the Commission to any person, organization or

entity for the conduct of business at the Tribes gaming enterprise

is a revocable privilege. No holder thereof shall be deemed to have

a part in any vested rights therein or thereunder. The burden of

proving that a person, organization or entity is qualified to hold

any license issued by the Commission rests at all times with the

licensee. The Commission shall continually monitor the conduct of

all licensees to assure that licenses are not held by unqualified

or disqualified persons or by any qualified person or persons whose

operations are conducted in an unsuitable manner.

Section 3.16 Notification of license issuance.

The Commission shall notify the National Indian Gaming Commission

of the issuance of a license to any person, organization or entity

required under section 3.01 to secure a license in order to conduct

business at the Tribets gaming enterprise.

CHAPTER 4

MANAGEMENT CONTRACTS

Section 4.01. Management contract contents; approval.

The Tribal Council may approve and, on behalf of the Tribe, enter

into any management contract if it determines that such contract

provides at least:

(1) for compliance with this Ordinance in the conduct of all

gaming covered by the contract;

(2) for an enumeration of the responsibilities of each of the

parties for each identifiable function, including:

(i) Maintaining and improving the gaining facility;

(ii) Providing operating capital;

(iii) Establishing operating days and hours;

(iv) Hiring, firing, training and promoting employees;

(v) Maintaining the gaming operations books and records;

(vi) Preparing the gaming operations financial

statements and reports;

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(vii) Hiring and scheduling auditors;

(viii) Hiring and supervising security personnel;

(ix) Providing fire protection services;

(x) Setting the advertising budget and placing

advertising;

(xi) Paying bills and expenses;

(xii) Establishing and administering employment

practices;

(xiii) Obtaining and maintaining insurance coverage,

including coverage of public liability and property loss or damage;

and

(xiv) Complying with all applicable provisions of the

Internal Revenue Code;

(2) for adequate accounting systems and procedures whenever

the contractor is responsible f or the establishment or maintenance

of such systems and procedures. At a minimum, the accounting

systems and procedures shall

(1) Include an adequate system of internal accounting

controls;

(ii) Permit the preparation of financial statements in

accordance with generally accepted accounting principles;

(iii) Be susceptible to audit;

(iv) Allow a class II gaming operation, the Tribe, and

the National Indian Gaming Commission to calculate the annual fee

under 25 C.F.R. §514.1;

(v) Permit the calculation and payment of the managers

fee; and

(vi) Provide for the allocation of operating expenses or

overhead expenses among the Tribe, the tribal gaming operation, the

contractor, and any other user of shared facilities and services;

(3) for verifiable financial reports that are prepared by or

for the Council on a monthly basis, or for the contractor to

provide the Tribe with all information necessary to prepare such

reports, whenever the contractor is responsible for the preparation

of such reports or for maintaining such information as may be

necessary to prepare such reports;

29
(4) for immediate access to the daily operations of the gaming

enterprise, including its books and records whenever these are

maintained by the contractor, by the Commission and other

appropriate tribal officials who shall also have the right to

verify the daily gross revenues and income from any tribal gaming

activity and access to any other gaming-related information the

Tribe deems appropriate;

(5) for a minimum guaranteed payment to the Tribe in a sum

certain that has preference over the retirement of development and

construction costs;

(6) for an agreed ceiling for the repayment of development and

construction costs;

(7) that the contract term not exceed five years, provided

that the Tribal Council may request the National Indian Gaming

Commission to authorize a contract term that exceeds five (5) years

but does not exceed seven (7) years if the Council determines that

the capital investment required, and the income projections, for

the particular gaming activity require the additional time;

(8) for grounds and mechanisms for modifying or terminating

such contract;

(9) for mechanisms to resolve disputes between the management

contractor and

(i) customers;

(ii) the Tribe; and

(iii) the gaming operation employees;

(10) for preference to members of the Tribe in hiring

employees for the gaming enterprise;

(11) that the method of compensating and reimbursing the

management contractor be detailed and that any fee based upon a

percentage of the net revenues of the tribal gaming activity is

reasonable in light of surrounding circumstances and, in no event,

shall exceed 30 percent of the net revenues, provided that the

Tribal Council may request the National Indian Gaming Commission to

approve a fee not to exceed 40 percent of the net revenues if the

Council determines that the capital investment required, and the

income projections, for such tribal gaming activity require the

additional fee; and

(12) that the management contractor cannot transfer,

subcontract or assign any of its rights and duties under the

contract or, without advance approval of the Tribe, any ownership

interest in the contract.

30
Section 4.02 Management contract disapproval; termination.

The Tribal Council shall not approve and may terminate any

management contract if it determines that:

(1) Any principal, director, agent or employee of a management

contractor or any person having an investment or ownership interest

in a management contract, either directly or indirectly, is an

elected member of the Tribal Council; or

(2) Any principal, director, agent or key employee of a

management contractor or of any parent company of a management

contractor, any person having a direct investment or ownership

interest in a management contract, and, in the case of a management

contractor that is a corporation, any person who holds (directly or

indirectly) 10 percent or more of the issued and outstanding stock

of the corporation or of any parent company of the corporation has

been or is subsequently convicted of any felony or gaming offense;

or

(3) Any principal, director, agent, employee, or (directly or

indirectly) 10 percent or more shareholder of a management

contractor or of any parent company of a management contractor, any

person having an investment or ownership interest in a management

contract, or the management contractor entity or its parent

company, if any, has provided materially important false statements

or information to the Commission or other tribal officials,

pertaining to matters where a provision of this Ordinance or of any

rules or regulations promulgated by the Commission requires the

submission of information to the Tribe or an agency thereof, or has

refused to respond to questions by the Commission or other tribal

officials propounded for the purpose of carrying out their duties

and responsibilities under this Ordinance or the rules and

regulations promulgated thereunder; or

(4) Any principal, agent, employee, or (directly or

indirectly) 10 percent or more shareholder of a management

contractor or of any parent company of a management contractor, or

any person having an investment or ownership interest in a

management contract 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 in the carrying on of

the business and financial arrangements incidental thereto; or

(5) The management contractor or its parent company, if any,

has or has attempted to unduly interfere with or influence for its

gain or advantage any decision or process of tribal government

relating to gaming activity; or

31
(6) The management contractor or its agents have deliberately

or substantially failed to comply with the terms of the management

contract, the provisions of this Ordinance, any rules or

regulations adopted pursuant to this Ordinance, any applicable

federal law, any rules or regulations of the National Indian Gaming

Commission, or any of the requirements of a TribalState compact

entered into between the Tribe and the State of Iowa governing

gaming on Indian lands; or

(7) The management contract is inconsistent with any of the

requirements of a TribalState compact entered into between the

Tribe and the State of Iowa governing gaming on Indian lands; or

(8) The background investigation of the management contractor

warrants disapproval or termination of the management contract; or

(9) A trustee, exercising the skill and diligence to which a

trustee is commonly held, would not approve the contract.

Section 4.03 Management contractor records.

In addition to other records and information~ required by this

Ordinance or by any rules or regulations of the Commission, a

licensed management contractor shall maintain the following

records:

(a) If a corporation:

(1) A certified copy of articles of incorporation and any

amendments thereto both for itself and any parent corporation;

(2) A copy of bylaws and any amendments thereto both for

itself and any parent corporation;

(3) A current list of officers and directors both for

itself and any parent corporation;

(4) Minutes of all meetings of stockholders and directors

both for itself, and, whenever the Tribes gaming enterprise is the

subject of discussion, for any parent corporation;

(5) A current list of all stockholders and stockholders

of affiliates, including their names and the names of beneficial

owners of shares;

(6) A complete record of all transfers of stock;

(7) A record of amounts paid to the corporation for

issuance of stock and other capital contributions and dates

thereof;

(8) A record, by stockholder, of all dividends

32
distributed by the corporation; and

(9) A record of all salaries, wages, and other

remuneration (including perquisites), direct and indirect, paid

during the calendar or fiscal year, by the corporation, to all

officers, directors, and stockholders with an ownership interest at

any time during the calendar Or fiscal year, equal to or greater

than 5 percent of the outstanding stock of any class of stock.

(b) If a partnership:

(1) A schedule showinc~ the amounts and dates of capital

contributions, the names and addresses of the contributors, and

percentage of interest in net assets, profits and losses held by

each;

(2) A record of the withdrawals of partnership funds or

assets;

(3) A record of salaries, wages, and other remuneration

(including perquisites), direct and indirect, paid to each partner

during the calendar or fiscal year; and

(4) A copy of the partnership agreement and certificate

of limited partnership, if applicable;

(c) If a sole proprietorship:

(1) A schedule showing the name and address of the

proprietor and the amount and date of their original investment;

(2) A record of dates and amounts of subsequent additions

to the original investment and withdrawals therefrom; and

(3) A record of salaries, wages, and other remuneration

(including perquisites), direct and indirect, paid to the

proprietor during the calendar or fiscal year;

(d) Federal and state tax returns showing income and losses in

connection with the Tribes gaming enterprise.

All records shall be located in a place approved by the Commission.

Section 4.04 Management contractor bond.

A management contractor shall post a bond to the Tribe before the

effective date of any such contract in a sum as the Commission or

the Tribal Council shall fix, with sureties to be approved by the

Commission or Council. The bond shall be used to guarantee that the

management contractor faithfully executes the management contract,.

keeps its books and records and makes reports, and conducts all

gaming operations in conformity with this Ordinance, any rules and

33
regulations adopted by the Commission, the provisions of any

compact entered into between the Tribe and the State of Iowa, and

applicable federal law. The bond shall not be cancelled by a surety

on less than 30 days notice in writing to the Commission or

Council. If a bond is cancelled and the management contractor fails

to file a new bond in the required amount on or before the

effective date of cancellation, the management contract shall be

terminated. The total and aggregate liability of the surety on the

bond is limited to the amount specified in the bond.

CEAPTER 5

AUDITING AND ACCOUNTING

Section 5.01 Audits of gaming operation; accounting requirements.

(a) The gaming enterprise books and records shall be audited

annually by an independent auditor. The annual independent audit

will include an audit of all gaming related contracts for supplies,

services, or concessions for a contract amount in excess of

$25,000.00 (except contracts for professional legal or accounting

services). The audit will also include an audit of gaming and cash

procedures and equipment and an audit of conformance with this

Code, applicable laws and regulations, and any compact entered into

between the Tribe and the State of Iowa governing class III gaming. All audits shall be conducted pursuant to the AICPA Standards for

Audits of Casinos when applicable. A copy of this audit will be

provided to the National Indian Gaming Commission.

(1) Whenever the annual or any other audit indicates a

material weakness in the internal accounting control procedures or

other internal control systems, or nonconformance with this Code,

applicable laws and regulations, and any compact entered into

between the Tribe and the State of Iowa governing class III gaming, the Tribes gaming enterprise, within 90 days from receipt of the

audit report, shall indicate to the Commission the corrective

actions taken.

(b) The gross receipts and adjusted gross receipts from

gambling shall be separately handled and accounted for from all

other moneys received from operation of the Tribes gaming

enterprise. The Commission may designate a representative to

directly supervise the handling and accounting of all gross

receipts and adjusted gross receipts from gambling and related

activities of the Tribes gaming enterprise. The compensation of

such representative shall be fixed by the Commission but shall be

paid by the Tribes gaming enterprise. The Commission shall also

have access to any bank records pertaining to the Tribes gaming

enterprise including those bank records of any management

contractor showing deposits received from or withdrawals of monies

in connection with the Tribes gaming enterprise.

34
(c) The Tribe shall perform such additional audits of the

books, records, equipment and procedures of any licensed class III

gaming enterprise and of any management contractor thereof as the

Conunission may deem necessary or as may be required under the terms

of any class III gaming compact entered into between the Tribe and

the State of Iowa.

(d) The books of account, records and documents pertaining to

the Tribes gaining enterprise and of any management contractor or

other person or entity licensed in connection therewith shall be

made available to the Commission, any other authorized agency of

the Tribe, or any authorized agency of the federal government or

the State of Iowa for inspection and audit at reasonable times,

with or without notice. Such books of account, records and

facilities pertaining to any class III gaming enterprise of the

Tribe shall also be made available to authorities of the State of

Iowa, under applicable provisions of any class III gaming compact

between the Tribe and the State, for the purpose of conductingsuch

routine facility inspections, including equipment testing, casino

surveillance, review and copying of records and other information

as may be permitted under such compact. Such books of account,

records and documents shall be organized and indexed in such a

manner to provide immediate accessibility to the Commission or

other authorized agency.

(e) A failure to permit inspection or any falsification of any

books or records related to any transaction connected with the

holding, operating, and conducting of any gaming activity is a

serious misdemeanor.

(f) Throughout the term of any class III gaming compact

between the Tribe and the State of Iowa and for at least one year

following the termination of any such compact, all books, records

and documents pertaining to any authorized class III gaming

activities, including the records of any management contractor and

the Tribe, shall be separately maintained pursuant to generally

accepted accounting principles under standards of the AICPA in

order to facilitate auditing to ensure compact compliance.

(g) In no event shall the books, records, and documents

pertaining to any authorized class II or class III gaming

activities be removed from the premises of the Tribes gaming

enterprise prior to audit.

(h) All original books, records and documents may be copied

and stored on a microfilm, microfiche or other suitable media

system approved by the Commission.

(i) No original book, record or document may be destroyed by

the Tribes gaming enterprise or any licensee thereof without the

prior approval of the Commission, unless the particular book,

record or document has first been copied and stored on microfilm,

35
microfiche or other suitable media in accordance with subsection

(h) of this section.

For the purpose of this section, books, records and documents

shall be defined as any book, record or document pertaining to,

prepared or generated by the Tribes gaming enterprise or any

licensee thereof including, but not limited to, all forms, reports,

accounting records, ledgers, subsidiary records, computergenerated

data, internal audit records, correspondence and personnel records.

Section 5.02 Accounting records.

(a) A licensed class II or class III gaming enterprise of the

Tribe shall maintain complete and accurate books of account and

records showing in addition to any other information required by

the Commission or the Tribal Council, gross receipts and the amount

of any taxes collected or accrued in connection with any gambling

activities, all expenses, charges, fees and other deductions, the

cash amounts or the cost to the gambling enterprise of goods or

other noncash valuables distributed to participants in the licensed

activity, and evidences of indebtedness.

(b) General accounting records shall be maintained on a double

entry system of accounting with transactions recorded on an accrual

basis.

(c) Detailed, supporting, and subsidiary records shall be

maintained. These records include, but are not necessarily limited

to:

(1) Statistical game records to reflect drop (amount of

cash wagered by patrons) and win (amount of cash won by the gaming

enterprise) amounts for each type of game on a daily basis;

(2) Records of all investments, advances, loans and

receivable balances, due to the licensed class II or class III

gaming enterprise or any management contractor thereof;

(3) Records related to investments in property and

equipment;

(4) Records which identify the handle, payout, win

amounts and percentages, theoretical win amounts and percentages,

and differences between theoretical and actual win amounts and

percentages, for each slot machine or video game of chance on at

least a weektodate, monthto-date, and yeartodate basis;

(5) Records of all loans and other amounts payable by the

licensed class II or class III gaming enterprise;

(6) Records which identify the purchase, receipt and

destruction of gaming chips and tokens; and

36
(7) Other records required by the Commission.

Section 5.03 Gaming enterprise reports.

(a) A licensed class II or class III gaming enterprise of the

Tribe shall file monthly reports with the Commission indicating

adjusted gross receipts from gambling games and from other related

activities conducted on the premises of the Tribes gaming

enterprise. These reports will be by calendar month and will be

filed within 15 days following the end of each month.

(b) A licensed class II or class III gaming enterprise of the

Tribe shall file an annual financial statement with the Commission

covering all financial activities of the Tribes gaming enterprise.

This statement shall be filed within 90 calendar days following the

end of the fiscal year.

(1) Any adjustments resulting from the annual audit shall

be recorded in the accounting records of the year to which the

adjustment relates. In the event the adjustments were not reflected

in the annual report of the Tribes gaming enterprise and the

Commission concludes the adjustments are significant, the

Commission may require a revised annual report to be filed within

30 calendar days following notification.

(2) Required financial statements shall include a

footnote reconciling and explaining any differences between the

financial statements included in the annual report of the Tribes

gaming enterprise and the audited financial statements. Such

footnote shall disclose the effect of such adjustments on:

a. Casino revenues;

b. Revenues net of complimentary services;

c. Total costs and expenses;

d. Income before extraordinary items; and

e. Net income.

CRAPTER 6

INTERNAL CONTROLS

Section 6.01 Internal control systems.

A licensed class II or class III gaming enterprise of the Tribe

shall operate all gaming under a system of adequate and effective

internal controls. Internal control systems and any changes therein

shall be approved by the Commission before any gaming operations

may be commenced by a licensed class II or class III gaming

37
enterprise. Once approved, no system of internal controls may be

altered until the Commission has approved the changes. At a

minimum, internal control systems shall include procedures or

standards for

(1) Training personnel to understand prescribed

procedures;

(2) segregating incompatible functions so that no

employee is in a position to perpetrate and conceal errors or

irregularities in the normal course of their duties;

(3) Accounting controls within the cashiers cage;

(4) Use of drop boxes and drop buckets;

(5) Transportation of drop boxes to and from gaming

tables;

(6) Storage of drop boxes;

(7) Accepting cash or prepaid vouchers at gaming tables;

(8) Distributing gaming chips to gaming tables;

(9) Removing gaming chips from gaming tables;

(10) Closing gaming tables;

(11) Count room security;

(12) Opening, counting and recording contents of drop

boxes;

(13) Slot machine or video game of chance identifying and

nonidentifying features and capabilities;

(14) Jackpot payouts;

(15) Filling payout reserve containers of slot machines

or video games of chance; and

(16) Counting and recording contents of slot machine or

video game of chance drop buckets.

Section 6.02 Computer recording requirements and monitoring of

slot machines or video games of chance.

(a) A licensed class III gaming enterprise will have a

computer connected to slot machines or video games of chance to

record and monitor the activities of such machine. The computer

will be designed and operated to automatically perform the function

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relating to slot machine or video game of chance meters as follows:

(1) Record the number and total value of coins or tokens

placed in the slot machine or video game of chance for the purpose

of activating play;

(2) Record the number and total value of coins or tokens

in the drop bucket of the slot machines or video games of chance;

(3) Record the number and total value of slot tokens,

cash or chips to be paid manually as the result of a jackpot; and

(b) The computer shall store in machine-readable form all

information required under this section and such stored data shall

not be susceptible to change or removal by any personnel prior to

submission to the Commission.

Section 6.03 Security and surveillance procedures.

The Commission shall establish security and surveillance procedures

and equipment standards consistent with any applicable security and

surveillance requirements of a class III gaming compact entered

into between the Tribe and the State of Iowa. At a minimum, these

procedures shall include the employment of a reasonably adequate

security force and providing for a certified peace officer with the

power to arrest all persons committing gaming violations to be

present at all times when gambling is being conducted.

Section 6.04 Ga.nibIing equipment and games acquisition;

distributor s notice.

(a) A licensed class II or class 111 gaming enterprise shall

acquire all gambling equipment, games or implements of gambling from a distributor licensed pursuant to this Ordinance.

(b) Prior to delivery to a gaming enterprise licensed under

this Code, the manufacturer or distributor shall provide the

Commission with a copy of the invoice showing the items shipped and

a copy of the bill of lading.

Section 6.05 Games and game rules; approval and posting.

The Commission will approve all games and game rules. Before any

game may be played in the Tribes gaming enterprise, the game must

be authorized by the Commission and the game rules must be publicly

posted in the gaming facility at such conspicuous locations, near

where such gaming activity is conducted, so as to make them readily

available and accessible to the public.

Section 6.06 Name tags.

All persons operating or assisting the operation or conduct of any

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class II or class III gaming activity shall wear legible tags

evidencing their names and the legend of the Sac and Fox Tribe.

Tags must be visible and worn or otherwise affixed to all persons

operating or assisting in the operation of such gaming activities.

CHAPTER 7

PROHIBITED AND UNLAWFUL ACTIVITIES

Section 7.01 Prohibited activities.

(a) A person or entity is guilty of an aggravated misdemeanor

for any of the following:

(1) Engaging in any class II gaming, or in class III

gaming where wagering is used or to be used, without a license

issued by the Commission; or

(2) Acting or employing a person to act as a shill or

decoy to encourage participation in a gambling game.

(b) A person or entity knowingly permitting a person under the

age of eighteen years to make a wager is guilty of a simple

misdemeanor.

(c) A person or entity wagering or accepting a wager at any

location outside a gaming enterprise licensed under this Code is

guilty of a simple misdemeanor.

(d) A person or entity commits an aggravated misdemeanor and,

in addition, shall be barred for life from any gaming enterprise

under the jurisdiction of the Conunission, if the person or entity,

either alone or in concert with others, does any of the following:

(1) Offers, promises, or gives anything of value or

benefit to a person who is connected to a gaming enterprise owned

by the Tribe including, but not limited to, an officer or employee

of the Tribe, an officer or employee of a management contractor,

pursuant to an agreement or arrangement or with the intent that the

promise or thing of value or benefit will influence the actions of

the person to whom the offer, promise, or gift was made in orderto

affect or attempt to affect the outcome of a gambling game, or to

influence official action of a member of the Commission; or

(2) Solicits or knowingly accepts or receives a promise

of anything of value or benefit while the person is connected with

a gaming enterprise owned by the Tribe including, but not limited

to, an officer or employee of the Tribe, an officer or employee of

a management contractor, pursuant to an understanding or

arrangement or with the intent that the promise or thing of value

or benefit will influence the actions of the person to affect or

attempt to affect the outcome of a gambling game, or to influence

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official action of a member of the Commission; or

(3) Uses a device, including any calculator, computer, or

other electronic, electrical or mechanical device to assist in any

of the following:

(A) In projecting the outcome of a game; or

(B) In keeping track of the cards played; or

(C) In analyzing or changing the probability of the

occurrence of an event relating to the gambling game;

or

(D) In analyzing or changing the strategy for

playing or betting to be used in the game except as

permitted by the Commission; or

(4) Cheats at a gambling game; or

(5) Manufactures, sells, or distributes any cards, chips,

dice, game or device which is intended to be used to violate any

provision of this Ordinance; or

(6) Instructs a person in cheating or in the use of a

device for that purpose with the knowledge or intent that the

information or use conveyed may be employed to violate any

provision of this Ordinance; or

(7) Alters or misrepresents the outcome df a gambling

game on which wagers have been made after the outcome is made sure

but before it is revealed to the players; or

(8) Places, increases, decreases or cancels a bet after

acquiring knowledge, not available to all players, of the outcome

of the gambling game which is the subject of the bet or to aid a

person in acquiring such knowledge for the purpose of placing,

increasing, decreasing or cancelling a bet contingent on that

outcome; or

(9) Claims, collects, or takes, or attempts to claim,

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

gambling games, with intent to defraud, without having made a wager

contingent on winning a gambling game, or claims, collects, or

takes an amount of money or thing of value of greater value than

the amount won; or

(10) Knowingly entices or induces a person to go to any

place where a gambling game is being conducted or operated in

violation of the provisions of this Code with the intent that the

other person plays or participates in that gambling game; or

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(11) Uses counterfeit chips, tokens, coins or other

currency in a gambling game; or

(12) Knowingly uses other than chips, tokens, coin,

currency or other methods or credit approved by the Commission or

uses coin not of the denomination as the coin intended to be used

in the gambling games; or

(13) Has in the persons possession any device intended

to be used to violate a provision of this Ordinance; or

(14) Has in the persons possession, except a licensee or

employee of a licensee acting in furtherance of the employees

employment at a licensed gaming enterprise, any key or device

designed for the purpose of opening, entering, or affecting the

operation of a gambling game, drop box, or an electronic or

mechanical device connected with the gambling game or for removing

coins, tokens, chips or other contents of a gambling game; or

(15) Uses any fraudulent scheme or technique; or

(16) Has located on the premises of the Tribes gaming

enterprise any gaming equipment or implements of gaming not

authorized under this Code or by the Commission; or

(17) Manipulates with intent to cheat (whether with or

without a device), any component of a gaming device in a manner

contrary to the designed and normal operational purpose for the

component, with knowledge that the manipulation affects the outcome

of the game or with knowledge of any event that affects the outcome

of the game.

(e) The possession of more than one of the devices described

in subsection (d), paragraphs 3, 5, 13 or 14, permits a rebuttable

inference that the possessor intended to use the devices for

cheating.

Section 7.02 Wagering by minors prohibited.

A person under the age of eighteen years shall not make a wager On

any gambling activity conducted at the Tribes gaming enterprise

and shall not be allowed in the area of such enterprise where

gambling is being conducted. If an~y person below the age of

eighteen plays and otherwise qualifies to win any prize, the prize

shall not be paid and the estimated amount wagered during the

course of the game shall be returned to the player.

Section 7.03 Gambling on credit unlawful; licensee loans unlawful.

(a) Any class II or class III gaming operation shall be

operated for cash only. A person who, in connection with the

Tribes gambling enterprise, tenders and a person who receives any

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promise, agreement, note, bill, bond, contract, mortgage or other

security, or any negotiable instrument, as consideration for any

wager or bet commits a misdemeanor.

(b) Any licensee or any employee of any licensee who loans to

any person money or any other thing of value for the purpose of

permitting that person to place any wager or bet at the Tribes

gaming enterprise commits a misdemeanor. However, a bingo

participant may make payment by personal check for any entry or

participation fee assessed by the Tribe.

(c) Any licensee or any employee of any licensee who engages

in pawnbroking or who takes goods or materials in hock from any

person for the purpose of permitting that person to place any wager

or bet at the Tribes gaming enterprise commits a misdemeanor.

(d) Nothing in this section shall be construed to prohibit the

Tribe or a management contractor from offering check cashing and

credit card transactions as routinely offered by other businesses.

Credit card transactions may be consuriunated only through a bona

fide credit card company whose services are offered to other

businesses located within the Tribes jurisdiction or within the

State of Iowa.

(e) Nothing in this section shall apply to credits won by

players who activate play on slot machines or video games of chance

after inserting coins, currency, or tokens into the game.

(f) Personal checks accepted by the Tribes gaming enterprise

must be deposited into a financial institution on the banking day

following the receipt of such check.

Section 7.04 Possession of firearms and dangerous weapons

prohibited.

The possession of firearms or other dangerous weapons shall be

prohibited at all times within the gambling area of the Tribes

gaming enterprise and within adjacent facilities except for

certified tribal, State of Iowa, county, or federal law enforcement

officers carrying such weapons in the course of their official

duties and authorized to be on the premises of the Tribes gaming

enterprise.

Section 7.05 Alcohol prohibited; exception.

(a) The sale or possession of alcohol including, but not

limited to, beer, liquor or any other beverage containing alcohol,

on the premises of the Tribes gaming enterprise or adjacent

facilities is a serious misdemeanor.

(b) The sale or possession of alcoholic beverages may be

permitted on the premises of the Tribes gaming enterprise and

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adjacent facilities only if authorized under a liq-uor ordinance

approved by the Tribal Council and the Secretary of the Interior in

accordance with applicable federal law.

Section 7.06 Penalties and fines.

(a) Whenever a person within the criminal jurisdiction of the

Tribe is convicted of a misdemeanor or simple misdemeanor, such

person shall be sentenced to a term of imprisonment not to exceed

six months or to a criminal fine not to exceed two thousand five

hundred dollars, or both such imprisonment and fine.

(b) Whenever a person within the criminal jurisdiction of the

Tribe is convicted of an aggravated or serious misdemeanor, such

person shall be sentenced to, a term of imprisonment not to exceed

one year or to a criminal fine not to exceed five thousand dollars,

or both such imprisonment and fine.

(c) For purposes of paragraphs (a) and (b) of this section,

the term person shall mean a member of the Tribe or an Indian who

is not a member of the Tribe.

(d) Whenever a person or entity within the civil jurisdiction

of the Tribe violates any provision of this Ordinance, any rule or

regulation of the Commission, any provision of any class III gaming

compact entered into between the Tribe and the State of Iowa, or

engages in any activity proscribed under such Ordinance, rules or

reg-ulations or compact, such person or entity shall be subject to

a civil fine or license suspension or license revocation or both a

civil fine and license suspension or revocation. The Commission

shall establish, enforce, and impose such schedule of civil fines

as may be necessary to assure compliance with the provisions of

this Ordinance, the rules and regulations of the Commission, and

any class III gaming compact entered into between the Tribe and the

State of Iowa. Upon determining that a person or entity may be the

subject of a civil fine, the Commission or its agents or employees

may immediately attach the personal property of such person or

entity of a value sufficient to satisfy the applicable fine, and

hold such property until a final determination is made on whether

such person or entity shall be reg-uired to pay a civil fine.

Nothing in any schedule of fines established by the Commission

shall be deemed to limit the amount of any civil fine that may be

imposed by a tribal court or by the Commission upon a finding that

a person or entity has violated any provision of this Code, any

rule or regulation of the Commission, or any provision of any class

III gaming compact entered into between the Tribe and the State of

Iowa.

(e) A violator shall be required to pay court costs or

Commission costs, as the case may be, storage fees and auction or

sales fees.

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(f) No fine shall be assessed or any action taken for any

violation of this Ordinance, any rule or regulation issued pursuant

thereto, or any provision of a class III gaming compact entered

into between the Tribe and the State of Iowa unless a charge or

complaint is filed with the Commission or a tribal court, as the

case may be, within three years of the commission of the violation.

Section 7.07 Forfeiture of property.

(a) Anything of value, including all traceable proceeds,

including but not limited to, real and personal property, moneys,

negotiable instruments, securities, and conveyances belonging to

any person or entity, is subject to forfeiture to the Tribe if the

item was used for any of the following:

(1) In exchange for a bribe intended to affect the

outcome of a gambling game; or

(2) In exchange for, to facilitate, or in connection with

a violation of this Ordinance, any rule or regulation of the

Commission, any provision of any class III gaming compact entered

into between the Tribe and the State of Iowa, or in taking any

action proscribed under such Ordinance, rules or regulations or

compact; or

(3) In exchange for, to facilitate, or in connection with

a violation of any management contract with the Tribe.

(b) All moneys, coin, and currency found in close proximity of

wagers, or of records of wagers are presumed forfeited. The burden

of proof is upon the claimant of the property to rebut this

presumption.

(c) Subsections (a) and (b) do not apply if the act or

omission which would give rise to the forfeiture was committed or

omitted without the owners knowledge or consent.

(d) Upon determining that the property of a person or entity

may be subject to forfeiture, the Commission or its agents or

employees may immediately seize such personal property of the

person or entity as may be subject to forfeiture, and hold such

property until a final determination is made on whether such

property is to be forfeited to the Tribe.

(e) Within five (5) days following the seizure of any property

that may be subject to forfeiture, the Commission shall notify the

person or entity from whom such property was seized and, if

different, the owner of such property, if known, of a hearing

before the Commission to determine whether the property was used

for any of the purposes described in paragraph (a) of this section.

The hearing shall be held no later than fifteen (15) days following

the date of seizure of the property, provided that the Commission

45
may extend this time for not more than an additional fifteen (15)

days if an investigation into the circumstances of the use of the

property has not been completed.

(1) At any hearing, the person or entity from whom the

property was seized and, if different, the owner of the property

shall have an opportunity to be heard, including an opportunity to

present oral and documentary evidence, cross-examine witnesses and

present oral arguments within limits established by the Corrunission.

(2) When holding a hearing under this subsection, the

Chairman of the Commission or any presiding Commissioner may

administer oaths and affirmations, issue subpoenas to compel the

attendance of witnesses or procure the production of documents, and

take such other action as may be necessary to conduct the hearing

in a manner most likely to result in a fair disposition.

(3) Whenever a preponderance of the evidence introduced

at a hearing supports the conclusion that seized property was used

for any of the purposes described in paragraph (a) of this section,

the Commission shall issue an order forfeiting such property to the

Tribe.

(f) Upon receipt of forfeited property, the Tribe shall permit

an owner or lienholder of record having a nonforfeitable property

interest in the property the opportunity to purchase the property

interest forfeited. If the owner or lienholder does not exercise

the option under this subsection within thirty (30) days the option

is terminated, unless the time for exercising the option is

extended by the Tribe.

(g) A person having a valid, recorded lien or property

interest in forfeited property, which has not been purchased

pursuant to subsection (f), shall either be reimbursed to the

extent of the nonforfeitable interest or to the extent that the

sale of the item produces sufficient revenue to do so, whichever

amount is less. The sale of forfeited property should be conducted

in a manner which is commercially reasonable and calculated to

provide a sufficient return to cover the costs of. the sale and

reimburse any nonforfeitable interest. The validity of a Lien or

property interest is determined as of the date upon which property

becomes forfeitable.

(h) This section does not preclude a civil suit by an owner of

an interest in forfeited property against the party who, by using

the property for any of the purposes described in paragraph (a) of

this section, caused the property to become forfeited to the Tribe.

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