and accounting records within such devices;
(7) Dealer;
(8) Pit boss;
(9) | Croupier;
(10) Approval of Credit; or

If not otherwise included, any other person whose total cash compensation from the
Gaming Operation is in excess of $50,000 per year; or, if not otherwise included, the four
most highly compensated persons in the Gaming Operation.

(s) "Management Contract" means a management contract within the meaning
of 25 U.S.C. §§ 2710(d)(9) and 2711.

(t) "Management Contractor" means a natural person or entity that has entered into
a Management Contract with the Nation or a Gaming Facility Operator which has been
approved pursuant to 25 U.S.C. §§ 2710(d)(9) and 2711.

(u) “Manufacturer” means a natural person or entity that manufactures Gaming
Devices and/or component parts thereof as defined by this Ordinance for use or play in the
Gaming Facilities.

(v) "Nation" means the Navajo Nation.

(w) “Navajo Nation Council" means the Navajo Nation Council of the Navajo
Nation.

(x) "Net Revenue" means the gross revenues of any gaming activity less amounts
paid out as, or paid for, prizes and total operating expenses.

(y) "Office of Attorney General" means the Office of the Attorney General of the
Navajo Nation. -

(z) "Person" includes a corporation, company, partnership, firm, association or
society as well as a natural person. When “person” is used to designate the violator or
offender of any law, it includes a corporation, company, partnership, firm, association, or
society of persons.

(aa) "Primary Management Official" means the person having management
responsibilities under a Management Contract; or any person who has authority to hire and
fire employees or to set up working policy for a Gaming Operation; or the chief financial
officer or other person who has financial management responsibility for a Gaming


Office or the Act.

(d) Each person or entity to whom a notice of violation is issued shall submit a
written response to the Gaming Regulatory Office together with any additional written
information the person believes the Gaming Regulatory Office should consider. Such
response and supporting documentation must be received by the Gaming Regulatory
Office within 15 days of the receipt of the notice of violation. Upon receipt of the written
response, the Gaming Regulatory Office shall issue a written decision within 15 days. Such
written decision shall constitute final action of the Gaming Regulatory Office with respect
to such notice of violation. No action to enforce the notice of violation shall be taken by the
Gaming Regulatory Office until the Gaming Regulatory Office issues its written decision;
provided that, the Gaming Regulatory Office may summarily suspend any license issued
under this ordinance or take such other immediate action if the continued licensing of, or
conduct by, a person or entity constitutes an immediate threat to the public health, safety
or welfare. The notice of violation is the final action of the Gaming Regulatory Office if no
written response to the notice of violation is submitted to the Gaming Regulatory Office
within the time prescribed in Section 1202(b)(6).

(e) The Gaming Regulatory Office may employ a Hearing Officer to hear and decide
matters to be heard by the Gaming Regulatory Office in accordance with the provisions of
this ordinance; provided, sufficient funds are appropriated or made available for a Hearing
Office and appropriate staff.

Section 1203. Investigation of Complaints.

(a) The Gaming Regulatory Office shall investigate all sworn complaints that are
filed with the Gaming Regulatory Office alleging that a licensee is acting in violation of the
terms of any license, or a Gaming Facility is not being maintained in accordance with the

terms of any license or does not adequately protect the health, safety and welfare of the
employees or patrons.

(b) The Gaming Regulatory Office shall give written notice of and provide a copy
of the sworn complaint to the licensee. The licensee shall file with the Gaming Regulatory
Office a written reply to the complaint within 15 days of receipt of the notice and complaint.

(c) Following receipt of the licensee’s response to the complaint, the Gaming
Regulatory Office shall cause a full investigation to be made of the allegations. If the
Gaming Regulatory Office determines that a violation of the Ordinance or the Act has
occurred or is occurring, the Executive Director shall issue a notice of violation in
accordance with the provisions of this Chapter.

Section 1204. Judicia1 Review.

(a) Any person or entity who has been issued a notice of violation by the Executive
Director of the Gaming Regulatory Office and who has submitted a written response to the
Gaming Regulatory Office in compliance with the provisions of Section 1202(d) of this


é

established by the Commission, the Gaming Regulatory Office shall provide to the
Commission a complete report on the results of the background investigation. In the
event the Gaming Regulatory Office receives any information from the Commission
concerning the applicant, such information shall be taken into account by the Gaming
Regulatory Office in its action on the application. The Gaming Regulatory office shall
notify the Commission if the Gaming Regulatory Office does not license an applicant.

(b) Upon issuance of a license under this ordinance, the Gaming Regulatory Office
shall give notice thereof to the Commission. Should the Gaming Regulatory Office receive
information from the commission indicating that a Primary Management Official or Key
Employee does not meet the standards established it this ordinance or in the Act for
issuance of such a license, the Gaming Regulatory Office shall immediately suspend such
license and give written notice thereof to the licensee. The Gaming Regulatory Office shall
also notify the licensee that the licensee has 15 days following receipt of the notice of
suspension to request that the Gaming Regulatory Office reconsider the notice of
suspension. Upon such request for reconsideration, the Gaming Regulatory Office shall
consider such oral statement(s) or written documentation as the licensee may present to
the Gaming Regulatory Office at the time and place designated by the Gaming Regulatory
Office. Within 15 days of receipt of such statement(s) or documentation, or the licensee's
request for reconsideration, whichever is later, the Gaming Regulatory Office shall issue
a written decision. The written decision of the Gaming Regulatory Office shall constitute
final action of the Gaming Regulatory Office. The Gaming Regulatory Office shall notify the
Commission of its decision.

Chapter 11. Gaming Facility License.

Section 1101. Requirement of License. No person or entity may commence any
Gaming Activities subject to regulation hereunder at any facility or location within the Nation
until such facility or location has received a Gaming Facility License under the provisions
of this Chapter, nor shall any person or entity offer any new or different Gaming Activities,
as, defined by regulations to be issued by the Gaming Regulatory Office, at any facility or
location that is already licensed, without first obtaining an amended license for, such new
and different Gaming Activities from the Gaming Regulatory Office.

Section 1102. Standards for Issuance of License. The Gaming Regulatory Office
shall not issue a Gaming Facility license for any facility or location at which Gaming
Activities are. to be offered within the Nation unless the Gaming Facility meets the
following requirements:

(a) the physical facility within which the Gaming Activities are to be conducted is
designed and constructed in compliance with the laws of the Nation and the requirements
of the Act, so as to ensure the health and safety of all employees and patrons of such
activities, and the protection of the natural environment from any contamination due to
discharge of waste or unreasonable disturbance of the land surface;

(b) the Gaming Activities to be conducted within the facility will lawfully be carried


persona holding an office elected or to be elected at an election covered by New Mexico's
Campaign Reporting Act.

Section 1303. Employee and Player Age Limit. No person under 21 years of age
shall be permitted to place any wager, directly or indirectly, in any Gaming Activity. No
person under 18 years of age shall be employed by a Gaming Facility Operator or by the
Gaming Regulatory Office. The Gaming Regulatory Office shall by regulation establish
measures by which licensees shall enforce the provisions of this section.

Section 1304. Management: Security.

(a) The Gaming Facility Operator shall have the responsibility for the on-site
operation, management and security of the Gaming Facility, and shall comply with all
requirements of this ordinance and the Act. The Gaming Facility Operator shall adopt
reasonable procedures, consistent with this ordinance and the Act, designed to provide for
the following: the physical safety of its employees; the physical safety of patrons in the
Gaming Facility; the physical safeguarding of assets transported to and from the Gaming
Facility and cashier's cage department; and the protection of the patrons’ and the Gaming
Operation's property from illegal activity.

(b) The Gaming Facility Operator shall designate an agent for service of any official
determination, order or notice of the Commission.

Section 1305. Internal Controls.

(a) The Gaming Regulatory Office shall by regulation establish and the Gaming
Facility Operators shall implement minimum standards of internal controls to be in place
at each licensed Gaming Facility, which shall include systems of accounting and
administrative controls. Internal controls include the plan of organization and all of the
coordinate methods and measures adopted within a Gaming Operation to safeguard its
assets, check the accuracy and reliability of its accounting data, promote operational
efficiency and encourage adherence to prescribed managerial policies.

(b) The system of accounting controls shall provide a plan of organization and a
description of procedures and records that will permit reasonable assurance that the
following objectives will be maintained:

(1) safeguarding of assets;

(2) __ reliability of financial records;

(3) execution of transactions in accordance with management's
general or specific authorization;

(4) _ recording of transactions as necessary to permit recording of gaming
revenue and to maintain accountability for assets;

(


EXHIBIT "A".
ORDINANCE FOR THE REGULATION OF 9128/00 aw @
GAMING ACTIVITIES WITHIN THE NAVAJO NATION
Chapter 1:Findings and Purposes

101 - Legislative Findings ......... 6. cee cece eee ee eee eee 3
102-PurposeS ....... cece eee eee eee 3

Chapter 2: Definitions
201-Definitions 2.0.6... cece eee eee 4

Chapter 3: Tribal Ownership and Use of Net Revenues

301 -Tribal Ownership of Gaming Activities ..................0. 7
302 -Use of Net Revenues ....... 0... cece eee cee eee eee 8
Chapter 4: Navajo Gaming Regulatory Office
401 -Establishment of the Gaming Regulatory office............... 8
402 -Personnel 0.0.0.0. cece cee eee eee eee 8
403 -Powers and Duties of the Gaming Regulatory
Office eee eect renee 10

404 -Issuance of Regulations ....
405 -Petition for Self-Regulation ................

406 -Independence of Gaming Regulatory Office - 13
407 -Relationship to Management ............. 0... ccc cece eee 13
Chapter 5: Gaming Facility Operator's License
501 -Requirement of License ........... 02. c eee eee eee eee 13
502 -Standards of Suitability 2.0.0... 2. eee eee 14
Chapter 6: Gaming Manager's License
601 -Requirement of License ........... 0... e cece eee eee 14
602 -Standards of Suitability ©. 0... eee eee eee eee 15

Chapter 7: Manufacturers Suppliers License

701 -Requirement of License
702 -Standards of Suitability

Chapter 8: Gaming Employee’s License

801 -Requirement of License ........... ccc cece eee cece evens 18 q
802 -Standards of Suitability ............... 0.00 0c c cece eee 18
Chapter 9: License Application Procedure


Gaming Activities within the Nation, as provided in this Ordinance and the Act.

(b) To enter at any time any Gaming Facility within the Nation for the purpose of
inspecting the facility, its employees and operations, its equipment and supplies, and its
business records, books-of account, and any and all other financial records or documents
pertaining to the business operations of the facility, and to make such summaries or copies
of any and all such documents or other records for the purpose of ensuring compliance
with the provisions of this Ordinance or the Act;

(c) To issue subpoenas and compel the attendance of witnesses at any place within
the Nation, to administer oaths and to require testimony under oath;

(d) To seize and remove from any Gaming Facility and impound any equipment,
supplies, documents or records for the purpose of examination in connection with an
investigation;

(e) To review for compliance with all applicable laws and regulations and to make
recommendations thereon to the Department of Justice for their approval:

(1) the terms of any and all proposed contracts between the Nation or a
Tribal Gaming Enterprise and any person or entity which provide for
the management or operation of any Gaming Facility within the
Nation:

(2) _ the provisions of any and all Gaming Services: and,

(3) _ the terms of any lease of land which is the site or proposed site of
such Gaming Facility;

(f) To investigate any aspect of Gaming Activities within the Nation in order to
protect the public interest in the integrity of such Gaming Activities and to prevent improper
or unlawful conduct in the course of such Gaming Activities, and to investigate any report
of a failure of any Gaming Operation within the Nation to comply with the provisions of this
ordinance or the Act and to require such Gaming Operation to take any corrective action
deemed necessary by the Gaming Regulatory Office upon such terms and conditions as
the Gaming Regulatory Office may determine appropriate;

(g) To establish a list of persons who, because of their criminal history or
association with career offenders or career offender organizations pose a threat to the
integrity of the Gaming Activities of the Nation, or are barred from any Gaming Operation
within the Nation pursuant to § 1401(f) of this Ordinance;

(h) To approve the rules of each game of chance operated by the Nation
pursuant to Section 301 of this ordinance;

(i) To require that all contracts for supplies, services, or concessions in an amount


(a) The Executive Director of the Gaming Regulatory Office shall issue a notice of
violation to any person or entity determined by the Gaming Regulatory Office to be in
violation of any provision of this Ordinance or the Act.

(b) A notice of violation shall contain:

(1)

(2)

(3)
(4)
(5)

(7)

A citation to the ordinance, regulation or federal law that has been
or is being violated;

A description of the circumstances surrounding the violation, set forth
in common and concise language;

The action which must be taken to correct the violation;

Notice that the violation must be corrected within 15 days from
receipt of the notice of violation;

Notice of a civil fine or other enforcement action that will or may be
imposed if the violation is not corrected;

Notice that a written response to the notice of violation must be
submitted to, and received by, the Gaming Regulatory Office within
15 days of the receipt of the notice of violation; and

Notice that the cited violation shall be the written decision of the
Gaming Regulatory Office if no written response to the notice of
violation is submitted to the Gaming Regulatory Office within the time
prescribed in Section 1202(b)(6).

(c) In the event the violation is not corrected, or a written response to the notice of
violation is not made within 15 days following receipt of the notice of violation, the Gaming
Regulatory Office may take one or more of the following actions:

(1)

Suspend or revoke the license of the person or entity to whom the
notice of violation was directed;

Assess a civil penalty in accordance with the provisions of this
ordinance;

Forcibly eject the violator from the premises of the Gaming Facility

Seize the Gaming Facility and all equipment, records, and proceeds
of Gaming Activities located within the Gaming Facility; or

Upon consultation with the Nation's Attorney General, initiate in the
District Court of the Navajo Nation a civil action or criminal complaint
to enforce the Ordinance, regulations of the Gaming Regulatory


Apr-up-ve ~~- tu,

a

4

a

, Kelsey A. Begaye, President

Page 2 eee

3. The Ordinance definition of “net revenues” is inconsistent with the definition
found in 25 CF.R.§ 502.16. The Ordinance defines net revenues as “the gross
revermes of any gaming activity less amounts paid out as, or paid for, prizes and
total operating expenses.” Section 20}(x). The definition at 25 C-F.R. § 502.16
inchudes the language, “excluding management fees” following the words, “total
operating expenses.” :

‘We note thal Section 1310 of the Ordinance provides that non-profit organizations may
conduct siifhil bingo games on the reservation. Please be advised that the only form of

__gaming conducted on Indian lends that is not subject to the regulatory provisions of the
IGRA is class I gaming -- social gatning for prizes of minima} value and taditional _
Indian gesting conducted during tribal ceremonies or celebrations. 2$ U-S.C. §§ 2703(6),
271 0{aX(1). AD other forms of gaming (class II and closs 1) conducted on Indian lands,
tegardless of whether for commercial, governmental or charitable purposes, are subject to
the regulatory provisions of the IGRA. “Any class [] gaming on Indian lands shal)
continue to be witbin the jurisdiction of the Indian tribes, but shal} be subject to the
provision of this Act.” 25 U.S.C. § 2710(aX2).

The Tribe may resubmit its ordinance when it has revised the Ordinance to cure the
deficiencics listed above. My staff is directed to work with you to cure the deficiencies.

The Tribe may appeal this disapproval within 30 days after service of this letter by Gling
an appeal with the NIGC pursuant to 25 C.F.R. Part 524. The appeal must state why this
disapproval is erroneous and include supporting documentation. Failure to file an appeal
within the 30-day period results in a waiver of the opportunity to appeal. An
administrative appeal must be submitied and considered by the Commission before
appeal to a federal district court.

If you have any questions conceming this letter or the ordinance review process, please

contact staff attorney Maria Getoff at (202) 632-7003. We look forward to working with
you in implementing the IGRA.

ks

Montie R. Deer
Chairman

@


(C) Third Party Fi Financier: $ 1.,000.
(2) | Annual renewal fee:

(A) Manufacturer/Distributor of Gaming Devices:

$ 500.
(B) Supplier of Gaming Services: $ 50.
(C) Third Party Financier: $ 500.

(d) Gaming Employee’s License:

(1) Initial application fee of $25.00.
(2) Annual renewal fee of $10.00.

(e) Other Fees. The Gaming Regulatory Office may by regulation prescribe
--such other fees as it deems appropriate.

Section 903. License Terms: Renewal.

(a) Each Gaming Facility Operators License, Gaming Manager's License,
Manufacturers/Suppliers License and Gaming Employee's License issued by the Gaming
Regulatory Office hereunder shall have a primary term of one year. Such license may be
renewed for subsequent one-year periods upon proper application therefor, on forms
specified by the Gaming Regulatory Office, but no licensee shall have any vested right to
renewal of any license issued hereunder.

(b) The Gaming Regulatory Office shall issue a temporary license within 60 days
of the receipt of a completed application for licensing pursuant to Chapters 5, 6, 7 or 8 of
this Ordinance unless the background investigation undertaken by the Gaming Regulatory
Office discloses that the applicant has a criminal history, or unless other grounds sufficient
to disqualify the applicant pursuant to this Ordinance are apparent on the face of the
application. The temporary license shall become void and be of no effect upon either the
issuance of a license or upon the issuance of notice of denial of the license in accordance
with the provisions of this Ordinance.

Section 904. Reserved

Section 905. Non-transferability of License. Each Gaming Facility Operator's
License, Gaming Manager's License, Manufacturer's/Suppliers License, and Gaming
Employee’s License issued by the Gaming Regulatory Office hereunder is valid only for the
person-or entity at the place of business shown on the license. The license is not

transferable or otherwise assignable without prior approval from the Gaming Regulatory
Office.


Operation.
(bb) "Principal" means with respect to any entity:
(i) Each of its officers and directors;
(ii) | Each of its principal management employees, including any chief
executive officer, chief financial officer, chief operating officer, or
general manager,

(ii Each of its owners or partners, if an unincorporated business;

(iv) | Each of its shareholders who own more than five percent (5%) of the
shares of the corporation, if a corporation; and

(v) | Each person other than a banking institution who has provided
financing for the entity constituting more than five percent (5%) of the
entity; and

(vi) Each of the beneficiaries, or trustees of a trust.

(cc) "Privacy Act" means the Privacy Act of 1974, as amended (P.L. 93-579, as
amended; 5 U.S.C. § 552(a), and the obligations and responsibilities placed on the United
States government under the Privacy Act as applied to the Commission pursuant to the
Indian Gaming Regulatory Act.

(dd) "Public Employee" means a Public Employee within the meaning of the Navajo
Nation Ethics in Government Law, 2 N.N.C. Sections 3751 et. seq.

(ee) “Public Official" means a Public official within the meaning of the Navajo Nation
Ethics in Government Law, 2 N.N.C. Sections 3751 et. seq.

(ff) "State" means the State of Arizona, New Mexico, or Utah and any of their
authorized officials, agents and representatives.

(gg) "Tribal Gaming Enterprise" means the Nation, an enterprise of the Nation, or
such other entity of the Nation designated by the Navajo Nation Council to conduct a
Gaming Operation.

Chapter 3. Tribal ownership and Use of Net Revenues.

Section 301. Tribal Ownership of Gaming Activities. All Gaming Activities within the
Nation shall be owned entirely by the Nation and conducted-and operated by a Tribal
Gaming Enterprise, with the following exceptions:

(a) Class | Gaming; and


to the Commission an application for a certificate of Self -Regulation, under the provisions
of 25 U.S.C. § 2710 (c) (4). The Gaming Regulatory Office shall do everything necessary
and appropriate to obtain such Certificate and to maintain the Certificate in good standing.

Section 406. Independence of Gaming Regulatory Office. The Gaming Regulatory
Office is constituted as an independent regulatory agency of the Nation. The Gaming

Regulatory Office shall not be subject to political direction or influence in the performance
of its duties from any public official or public employee of the Nation.

Section 407. Relation to Gaming Management. Neither the Executive Director of
the Gaming Regulatory Office nor any other public official or public employee of the Nation
(individually or collectively) shall have any role in the management of any licensed gaming
establishment. Aside from the specific duties of the Executive Director as defined in this
ordinance all decisions, policies, and actions with regard to the operation of any licensed
gaming establishment are the prerogative and responsibility of the gaming management
as described in Chapter 5 and 6 of this ordinance.

Chapter 5. Gaming Facility Operator's License.

Section 501. Requirement of License. Each Tribal Gaming Enterprise established
by the Navajo Nation Council to conduct a Gaming operation within the territorial
jurisdiction of the Nation shall obtain a Gaming Facility operator's License from the Gaming
Regulatory Office before the Tribal Gaming Enterprise may commence operation of a
Gaming Activity. Each appointee for the position of member of the Board of Directors of
such Tribal Gaming Enterprise shall also obtain a Gaming Facility Operator's License from
the Gaming Regulatory Office before submission of the appointment to the Navajo Nation
Council for approval.

Section 502. Standards of Suitability.

(a) Tribal Gaming Enterprise. No Tribal Gaming Enterprise shall be issued a
Gaming Facility Operator's License by the Gaming Regulatory Office unless the Gaming
Regulatory Office is satisfied that the Tribal Gaming Enterprise is ‘established and
organized pursuant to a plan of operation adopted by the Navajo Nation Council.

(b) Board ef Directors. No member of the Board of Directors of a Tribal Gaming Enterprise
established by the Navajo Nation Council to conduct a Gaming operation shall be issued
a Gaming Facility Operator's License or have his License re-need by the Gaming
Regulatory Office if the Gaming Regulatory Office determines that such person:

(1) Has been convicted of any felony or gaming offense;

(2) Has knowingly and willfully provided materially important false
statements or information on his license application;

(3) | Has been determined to be a person whose prior activities, criminal

record, if any, or reputation, habits or associations pose a threat to
the public interest or to the effective regulation and control of gaming,


bY (c) | The Executive Director shall be a person of the utmost honesty and integrity,
shall not have been convicted of a felony or a misdemeanor involving theft, embezzlement
or a crime involving moral turpitude, whose prior activities, reputation, habits and
associations shall not pose a threat to the public interest or to the effective regulation of
gaming, or create or, enhance the dangers of unsuitable, unfair, or illegal practices and

methods and activities in the conduct of gaming.

(d) The contract of the Executive Director shall require the Executive Director to be
the Nation's designated agent for service of any official determination, order or notice of
the Commission. The contract shall further require the Executive Director to have a
bachelor’s degree in business administration or related field and at least six years of
experience in gaming management and/or regulation, or the contract shall require the
Executive Director to have a master's degree in business administration or related field and
at least four years of experience in gaming management and/or regulation.

(e) Inspectors shall act under the authority and supervision of the Executive
Director. Inspectors shall have the right to inspect any Gaming Facility at any time and shall
have immediate and unrestricted access to any and all areas of a Gaming Facility.

(f) The background of every employee, Inspector, and the Executive Director of the
Gaming Regulatory Office shall be investigated by the Nation’s Personne! Department to
ensure qualification for employment in-the Gaming Regulatory Office. Except for the
Executive Director, who shall be subject to section 402(c), no person shall be employed
by the Gaming Regulatory Office if the Nation’s Personnel Department determines that
such person:

(1) | Has been convicted of any felony within the past ten (10) years or
any gaming offense;

(2) Has knowingly and willfully provided materially important false
statements or information on his or her license application; or

(3) | Has been determined to be a person whose prior activities, criminal
record, if any, or reputation, habits or associations pose a threat to
the public interest or to the effective regulation and control of gaming,
or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods and activities in the conduct of gaming or the

carrying on of the business and financial arrangements incidental
thereto.

Section 403. Powers and Duties of the Gaming Regulatory Office. Subject to all
of the provisions of this Ordinance, the Gaming Regulatory Office shall have the following

powers and duties, which it may exercise directly or through such agents or employees as
it deems appropriate:

$ (a) To have and to exercise full authority and responsibility for the regulation of


Chapter 10. Background Investigations; Notifications.

Section 1001. Background Investigations.

(a) The Gaming Regulatory Office shall at all times have in place, and shall
regularly update and improve, a system for conducting background investigations of every
applicant for licensing under this ordinance. Such system shall comply with the
requirements of this Ordinance and the Act, and shall include, at a minimum, utilization of
records of all available, tribal, state and federal law enforcement agencies, resources of
the Commission, communications with other Indian tribes engaged in gaming activities,
and any and all other sources of information accessible to the Gaming Regulatory Office
for this purpose. Such system shall ensure that all applicants are notified of their rights
under the Privacy Act as specified in 25 C.F.R. Part 556.

(b) Every applicant for licensing under this ordinance shall be subjected to a
thorough background investigation, and such investigations shall be updated upon
application for renewal of a license, and at such other times as the Gaming Regulatory
Office may determine appropriate.

(c) The Gaming Regulatory Office shall prepare a background investigation report
on every applicant for licensing under this ordinance which shall include all of the following:

(1) | Steps taken in conducting a background investigation;
(2) Results obtained;

(3) | Conclusions reached; and

(4) The bases for those conclusions.

(d) The cost of performing the background investigations on Gaming Employees

shall be an expense of the Gaming Facility operator who has hired or proposes to hire
the employee.

(e) The Gaming Regulatory Office shall at all times maintain files containing the
results of any background investigations conducted by it. Such files shall be retained for
no less than three years from the date of termination of employment or expiration of the
license. Such files shall contain systems designed to safeguard the identities of confidential
informants from inadvertent disclosure.

Section 1002. Notification to the Gaming Commission.

(a) _ Within the'time requirements established by the Commission the Gaming
Regulatory Office shall transmit to the Commission a complete copy of license
applications or such other information as may be required by the Commission. After
-completion of the background. check of the applicant, and within the time requirements


Chapter 2. Definitions.
Section 201. Definitions. For Purposes of this Ordinance:

(a) "Act" means the Indian Gaming Regulatory Act of 1988, Public Law 100-497,
25 U.S.C. SS 2701-2721 and 18 U.S.C. §§ 1166-1168, and all regulations promulgated
pursuant thereto.

(b) "Class 1 Gaming" means all forms of gaming defined as Class | in section
4(6) of the Act, 25 U.S.C. § 2703(6)

(c) "Class Il Gaming" means all forms of gaming defined as Class Il in
section 4(7) of the Act, 25-U.S.C. § 2703(7)

(d) “Class Il] Gaming" means all forms of gaming as defined in section 4(8)
of the Act, 25 U.S.C. § 2703(8).

(e) | “Commission" means the National Indian Gaming Commission
established pursuant to 25 U.S.C. § 2704.

(f "Compact" means a Tribal-State Compact entered into between the Navajo
Nation and a State pursuant to section 11(d) of the Act, 25 U.S.C. § 2710(d), for purposes
of regulating Class !I1 gaming activities conducted within the Nation, and all amendments
and modifications thereto.

(g) "Distributor" means a person who distributes Class II and Class Ill
Gaming Devices and/or component parts thereof.

(h) “Executive Director" means the Executive Director of the Gaming
Regulatory Office.

(i) “Gaming Activity" means all forms of Class II and Class Ill Gaming owned and
operated by the Nation and conducted within the territorial jurisdiction of the Nation.

(j) “Gaming Device" or "Electronic Game of Chance” means a
microprocessor-controlled electronic device which allows a player to play games of chance,
some of which are affected by skill, which device is activated by the insertion of a coin,
currency,, tokens or by the use of a credit, and which awards game credits, cash, tokens,
or replays, or a receipt that can be redeemed by the player for any of the foregoing. Game
play may be displayed by:

(i) Video facsimile; or,
(i) | Mechanical rotating reels whereby the software of the device

predetermines the stop positions and the presence, or lack thereof,
of a winning combination and pay out, if any.


EDCAP-34-02

2. The Economic Development Committee of the Navajo Nation Council
further recommends that the Navajo Nation Council adopt the Technical
Amendments to the Navajo Nation Gaming Ordinance, as set forth in Exhibit “B”.

CERTIFICATION
I hereby certify that the foregoing resolution was duly considered by the

Economic Development Committee of the Navajo Nation Council at a duly called
meeting in Window Rock, Navajo Nation (Arizona), at which a quorum was present

--and-that-same was-passed by a vote of 4 in favor, 0 opposed and 0 abstained, this

11" day of April 2002.

Tim Good luck, Chairperson Pro Tem
Economic Development Committee

Motion: Ralph Bennett
Second: Robert Ortiz


(J)

(K)

(L)

(M)
(N)
(0)

The name and address of any licensing or regulatory agency
with which the person has filed an application for a license or
permit related to gaming, whether or not such license or permit
was granted;

The name and address of any licensing or regulatory agency
with which the person has filed an application for an
occupational license or permit, whether or not such license or
permit was granted;

All criminal proceedings, except for minor traffic offenses, to
which the applicant has been a party including description of
the charge, the name and address of the court involved and
the date and disposition;

A set of fingerprints;

A current photograph; and

A complete and current financial disclosure statement.

(2) Inthe case of corporations, partnerships or other entities applying-for
a license under Chapters 5, 6, 7 or 8 of this Ordinance:

(A)

(B)

(C)

(0)

The name, address, and other additional pertinent background
information on each of the Principals;

The name, address, and other additional pertinent background
information on each of its related, associated, affiliated, parent
or subsidiary corporations, partnerships, entities or individuals;

A description of any previous experience that each Principal
has had with other Indian tribes involving gaming, any
management contract, or with the gaming industry generally,
including specifically the name and address of any licensing or
regulatory agency with which such person has had contact
relating to gaming; and

A complete financial statement of each Principal.

(b) The Gaming Regulatory Office and its staff may assist any applicant in
assembling all information required for processing of the application, but no application will
be processed until itis complete. The Gaming Regulatory Office staff may at any time after
an application is submitted request the applicant in writing to supply additional’ information
to enable the Gaming Regulatory Office to complete the processing of the application,
which request must be complied with forthwith.


a Gaming Facility Operator licensed under this Ordinance. In addition, any person,
corporation, partnership or other entity extending or guarantying financing for the Gaming
Operation or the Gaming Facilities shall be licensed by the Gaming Regulatory Office,
unless such person, corporation, partnership or entity is an agency of the United States or
a lending institution licensed and regulated by the State or the United States.

Section 702. Standards of Suitability.

(a) Individuals. No person shall be issued a license or have his license re-need
under this chapter if the Gaming Regulatory Office determines that such person:

(1)
(2)

(3)

(4)

Has been convicted of any felony or gaming offense;

Has knowingly and willfully provided materially important false
statements or information on his license application;

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 regulations and control or
gaming, or create or enhance the dangers of unsuitable, unfair, or
illegal practices, methods, and activities in the conduct of gaming or
carrying on of the business and financial arrangements incidental
thereto; or

Has a conflict of interest or a potential for a conflict of interest. Any
Public Official or Public Employee of the Nation shall be deemed to
have a conflict of interest.

(b) Corporations, Partnerships, and Other Entities.

(1)

No corporation, partnership, or other entity shall be issued a license
or have its license re-need under this Chapter unless the Gaming
Regulatory Office is satisfied that such corporation, partnership or
other entity:

(A) Is organized and in good standing under the laws of the
jurisdiction where it was established, and is qualified to do
business within the Nation and the State;

(B) Is in sound financial condition, as shown by a financial
statement certified by a certified public accountant to be a
current, complete and accurate depiction of the organization's
financial status;

(C) Is not now and has not been in the past five years the subject
of any criminal investigation by an tribal, federal, or state law


(b)_ As part of the background investigation, the applican=
will be required to disclose whether they have ever been prosecuted
or convicted of a felony or a misdemeanor. In addition, unless
otherwise provided in a tribal-state compact entered into between
the Navajo Nation and the State of New Mexico or the State of
Arizona, the Navajo Nation Department of Public Safety will review
the records of the Tribal Court and also the statewide district

supreme and superior courts for New Mexico and Arizona for any

Criminal records a prospective employee may have. a
vf

And renumber as noted above:

-—_. __Section-10023.--- Notification to the Gaming-Commission —

(a) Within the time requirements established by the Commission
the Gaming Regulatory Office shall transmit to the Commission a
complete copy of license applications or such other information as
may be required by the Commission. After-completion of the
background check of the applicant, and within the time requirements
established by the Commission, the Gaming Regulatory Office shall
provide to the Commission a complete report on the results of the
background investigation. In the event, the Gaming Regulatory
Office receives any information from the Commission concerning the
applicant, such information shall be taken into account by the
D Gaming Regulatory Office in its action on the application. The
Gaming Regulatory Office shall notify the Commission if the Gaming
Regulatory Office does not license an applicant.

(b) Upon issuance of a license under this ordinance, the
Gaming Regulatory Office shall give notice thereof to the
Commission. Should be Gaming Regulatory Office receive information
from the commission indicating that a Primary Management official
or Key Employee does not meet the standards established it this
ordinance or in the Act for issuance of such a license, the Gaming
Regulatory Office shall immediately suspend such license and give
written notice thereof to the licensee. The Gaming Regulatory
Office shall also notify the licensee that the licensee has 15 days
following receipt of the notice of suspension to request that the
Gaming Regulatory Office reconsider the notice of suspension.

4. Amend Section 1102 (a) as follows:

Section 1102. Standards for Issvance of License. The Gaming
Regulatory Office shall not issue a Gaming Facility license for any
facility or location at which Gaming Activities are to be offer d
within the Nation unless the Gaming Facility meets the following
requirements:


EXHIBIT B

Exhibit “B”
PROPOSED TECHNICAL AMENDMENTS
NAVAJO NATION GAMING ORDINANCE
1. Amend Section 201(x) as follows:
(x) “Net Revenue” means the gross revenues of any gaming

activity less amounts paid out as, or paid for, prizes and total
Gaming relatéd operating expenses, excluding management fees.

2. Amend Section 1001 as follows:

Section 1001. Background Investigations.

(a) Unless otherwise provided in a tribal-state compact
entered into between the Navajo Nation and a State. #the Gaming

Regulatory Office shall at all times have in place, and shall
regularly update and improve, a system for conducting background
investigations of every applicant for licensing under this
ordinance. Such system shall comply with the requirements of this
Ordinance and the Act, and shall include, at a minimum, utilization
of records of all available, tribal, state and federal law
enforcement agencies, resources of the Commission, communications
with other Indian tribes engaged in gaming activities, and any and
all other sources of information accessible to the Gaming
Regulatory Office for this purpose. Such system shall ensure that
all applicants are notified of their rights under the Privacy Act
as specified in 25 C.F.R. Part 556.

3. Amend Section 1002 by renumbering current Section 1002 to
Section 1003 and inserting the New Section 1002, entitled Criminal
History Checks:

Unie (2) wi vid i tribal-st
entered into between the Navajo Nation and the State of New Mexico
or_the State of Arizona, the Navajo Nation Department of Public
Safety will take fingerprints when required and send them to the
wi se i whi w
view a c yv.
nd _m eano ‘BI w.: b
N 1 ba


(k) | "Gaming Employee" means any person employed as a Primary
Management Official or Key Employee of a Gaming Operation of the Nation and any
person employed in the operation or management of a Gaming Operation, including,
but not limited to, any person whose employment duties require or authorize access to
restricted areas of a Gaming Facility not otherwise open to the public. Gaming
Employee does not mean janitors, cooks, waitresses or waiters, and other employees
not directly involved in the Gaming Operation within a Gaming Facility.

(I) "Gaming Facility" means the buildings or structures licensed and approved by
the Nation in which Gaming Activities are conducted.

(m) "Gaming Facility Operator" means the Nation, a wholly owned Tribal Enterprise,
or such other entity of the Nation~as the Nation may from time to time designate as the
wholly-owned tribal entity having full authority and responsibility for the operation and
management of Class Il or Class Ill Gaming Activities.

(n) "Gaming Operation" means any Gaming Activity conducted within a
Gaming Facility.

(0) "Gaming Ordinance" means this Ordinance which governs the conduct of
Gaming Activities within the Navajo Nation, all amendments thereto, and all regulations
promulgated thereunder.

(p) “Gaming Services" means the providing of any goods or services, except for
legal services, to a Gaming Facility Operation in connection with the operation of Class Il
or Class Ili gaming in a Gaming Facility, including but not limited to, equipment,
transportation, food, linens, janitorial supplies, maintenance, or security services for the
Gaming Facility, in an amount in excess of $10,000 in any-single month.

(q) “Indian Lands" means land as defined in 25 U.S.C. § 2703 (4)(A) and (B),
subject to the provisions of 25 U.S.C. § 2719.

(r) “Key Employee" means a Gaming Employee 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) | Custodian of Gaming Devices including persons with access to cash


LAG We

EDCAP-34-02

RESOLUTION OF THE
ECONOMIC DEVELOPMENT COMMITTEE
OF THE NAVAJO NATION COUNCIL

Approving Technical Amendments To the Navajo Nation Gaming Ordinance
And Recommending That the Navajo Nation Council Adopt the Technical
Amendments To the Navajo Nation Gaming Ordinance

WHEREAS:

____1.__ Pursuant _to.2-N.N.C.§§721_and_722, the- EEconomic— Development
Committee is established as a standing committee of the Navajo Nation Council with
the purpose of establishing, amending, regulating, enforcing and fostering policies
pertaining to the development of the economy of the Navajo Nation; and

2. The Navajo Nation Council by passage of Resolution CO-75-01 adopted
the Navajo Nation Gaming Ordinance; and

3. On November 21, 2001, the Navajo Nation in accordance with provisions
of the Indian Gaming Regulatory Act (GRA) 25 U.S.C. §2701 et. seq. submitted the
Gaming Ordinance to the National Indian Gaming Commission (NIGC) for review
and approval; and

4. On January 30, 2002, the NIGC acting through its Chairman Montie R.
Deer, disapproved the Navajo Nation Gaming Ordinance citing several technical
deficiencies as set forth and attached as Exhibit “A”; and

5. Technical Amendments designed to correct the deficiencies noted by the
NIGC have been drafted and submitted to amend the Navajo Nation Gaming
Ordinance, as set forth and attached as Exhibit “B”; and

6. The Economic Development Committee of the Navajo Nation Council
finds that it is in the best interests of the Navajo Nation to further the passage of
Resolution CO-75-01 and to approve the Technical Amendments to the Navajo
Nation Gaming Ordinance.

NOW THEREFORE BE IT RESOLVED THAT:
1. The Economic Development Committee of the Navajo Nation Council

hereby approves the Technical Amendments to the Navajo Nation Gaming
Ordinance, as set forth in Exhibit “B”.


in excess of $10,000 annually (except contracts for professional legal or accounting
services) relating to such gaming be subject to annual audits by an independent certified
public accountant licensed in a state;

(j) To perform background investigations on every applicant for a Gaming Facility
Operator's License, a Gaming Manager's License, a Manufacturers/Supplier's License, a
Gaming Employee's License and every applicant for a position of Primary Management
Official or Key Employee with a Gaming Facility Operator;

(k) To approve or deny applications for licenses or to limit, condition, restrict, revoke
or suspend any license which it has granted;

(I) To issue licenses and employee identification cards on such forms as may
be designated by the Gaming Regulatory Office;

(m) To issue a notice of violation to, or impose a civil penalty upon, any person or
entity for violation(s) of any provision(s) of this Ordinance or-the Act;

(n) To detain persons who may be involved in illegal activities, for purposes of
notifying and summoning appropriate law enforcement authorities; and

(0) To do all other things reasonably necessary for the proper and efficient
fulfillment of the powers and responsibilities of the Gaming Regulatory Office under this
ordinance or the Act.

(p) To create and establish a revolving account to deposit the fees collected from
the license applicants. The account shall be used to pay for the expenses of operating the
Office including, but not limited to the salaries of additional personnel, equipment, vehicles,
travel, and other expenses related to the operation of the Office. The Plan of Operation for
the revolving account shall be approved by the Economic Development Committee and
Budget and Finance Committee of the Navajo Nation Council.

Section 404. Issuance of Regulations.

(a) The Gaming Regulatory Office shall from time to time promulgate and issue
regulations governing any aspect of its responsibilities under this Ordinance, which, so long
as they are in furtherance of and not in conflict with any provision of this Ordinance, shall
have the force of law. Without limitation, the matters to be addressed by such regulations
may include the following:

(1) The time and manner for applying for a Gaming Operator's License
under this ordinance, and the specific information to be provided in
connection with such application, including information’ necessary for
adequate assessment of the applicant’s background, and the manner
in which such applications will be processed;


AL
ao ‘No,

2 Y
a 2
% ©

3
Ye comm”
DEC -9 a

Lawrence T. Morgan, Speaker
Navajo Nation Council

P.O. Box 3390

Window Rock, Arizona 86515

RE: Navajo Nation Gaming Ordinance
Dear Mr. Morgan:

This letter responds to your request to the National Indian Gaming Commission (NIGC) to
review and approve the Navajo Nation Gaming Ordinance (Ordinance) adopted by the Navajo
Nation Council by Resolution CAP 34-02 on April 18, 2002. The Ordinance was received by
the NIGC on October 16, 2003. Under the Indian Gaming Regulatory Act (ACT) and the
regulations promulgated by the NIGC, the Chairman has 90 days to review an ordinance and
either approve or disapprove it pursuant to 25 C.F.R. § 522.4.

The Ordinance is a revision of a prior ordinance submitted by the Navajo Nation (Nation) on
November 29, 2001, and disapproved by the Chairman on January 30, 2002. In our disapproval
letter, we advised the Nation of the deficiencies which resulted in the disapproval. The Nation
has corrected those deficiencies. Therefore, this letter constitutes approval of the revised
Ordinance submission under the IGRA. It is important to note that the Ordinance is approved
for gaming only on Indian lands, as defined in the IGRA, over which the Tribe exercises
jurisdiction: ;

Chairman

NATIONAL HEADQUARTERS 1441 L St_ NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 Www.NIGc.cov

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St, Paul, MN: Tulsa, OK


of all transactions pertaining to any Gaming Activities and any other revenue producing
activities conducted by the licensee at or in conjunction with any licensed Gaming Facility.
Such records as well as all original entry transaction records shall be maintained for at
least five years from the date on which they are made, and during the pendency of any
litigation arising thereunder. Such records shall be maintained on the licensed premises
or at a location approved by the Gaming Regulatory Office.

(c) Each licensed Gaming Facility Operator shall maintain general accounting
records on a double entry system of accounting with detailed, supporting subsidiary.
records sufficient to furnish the information required for the standard financial reports. to
adequately reflect gross income and expenses related to gaming and subsidiary
operations.

(d) The Gaming Regulatory Office shall from time to time prescribe a uniform chart
of accounts and accounting classifications in order to assure consistent and effective
disclosure of financial information.

(e) The Gaming Regulatory Office, when it deems necessary, may request
additional information from either the licensee, or its independent accountant through the
licensee, regarding either the financial statements, the audit or both. The licensee shall
provide to the Gaming Regulatory Office copies of all letters from the independent
accountant to the licensee regarding internal control matters within thirty days after receipt
by the licensee.

(f) The Gaming Regulatory Office shall provide copies of all annual audits of
Gaming Activities and licensees to the Commission as required under the Act, within the
time requirements established by the Commission, and shall cooperate with the
Commission with respect to any additional information required.

Section 1307. Public Disclosure of Payouts. A schedule of
payout information as to all Gaming Activities carried on within a license’ d Gaming Facility

shall be displayed at all times within the facility at a location clearly visible to patrons, and
shall be updated regularly.

Section 1308. Patron Disputes.

(a) Refusal to Pay Winnings. Whenever the Gaming Facility Operator refuses
payment of alleged winnings to a patron, and the Gaming Facility Operator and the
patron are unable to resolve the dispute to the satisfaction of the patron and if the
dispute involves:

(1) At least five hundred dollars ($500), the Gaming Facility Operator shall
notify the Gaming Regulatory Office as soon as possible; or

(2) Less than five hundred dollars ($500), the Gaming Facility Operator shall
inform the patron of his or her right to request that the Gaming Regulatory
Office conduct an investigation.


CO-75-01

8. In an effort to formally adopt a Navajo Nation Gaming
Ordinance, it is agreed that the issue of revenue sharing
between the Navajo Nation and To’Hajiilee Chapter, from any
gaming casino established by or on behalf of To’Hajiilee
Chapter, shall be resolved prior to the approval of a Gaming
Compact between the Navajo Nation and the State of New Mexico;
and

9. Pursuant to Resolution EDCO-119-01, the Economic
Development Committee of the Navajo Nation Council has reviewed
the proposed Navajo Nation Gaming Ordinance and recommends its
adoption by the Navajo Nation Council, attached as Exhibit “D”
herein; and

10. The Navajo Nation Council supports the adoption of the
Navajo Nation Gaming Ordinance to allow To’Hajiilee Chapter to
develop and establish gaming casinos as an economic development
initiative and to protect any future Navajo Nation gaming rights
in the State of Arizona, which is in the best interest of the
Navajo Nation.

NOW THEREFORE BE IT RESOLVED THAT:

1. The Navajo Nation Council hereby adopts a Navajo
Nation Gaming Ordinance, attached as Exhibit “A” herein.

2. The Navajo Nation Council directs that any gaming
casino established by or on behalf of To’Hajiilee Chapter shall

prohibit the transportation, sale, delivery and consumption of
alcohol.

3. The Navajo Nation Council further directs that the
President of the Navajo Nation, or his designee, negotiate a
revenue sharing agreement between the Navajo Nation = and
To’Hajiilee Chapter prior to Navajo Nation Council’s approval of

a Gaming Compact between the Navajo Nation and the Stat of New
Mexico.



CO-75-01

RESOLUTION OF THE
NAVAJO NATION COUNCIL

Adopting a Navajo Nation Gaming Ordinance

WHEREAS:

1. Pursuant to 2 N.N.C. §102(A), the Navajo Nation
Council is the governing body of the Navajo Nation; and

2. Pursuant to Resolution CJY-55-00, attached as Exhibit
“A" herein, the Navajo Nation Council removed criminal liability
for the conduct of gaming activities within the boundaries of
the To’Hajiilee Chapter. The purpose of this resolution was to
allow casino gaming within the Chapter as an_ economic
development initiative of the Navajo Nation; and

3. Pursuant to the Indian Gaming Regulatory Act of 1988,
25 U.S.C. §§2701-2721 and 18 U.S.C. §§166-1168, the Navajo
Nation must adopt a Navajo Nation Gaming Ordinance governing the
conduct of gaming within the Navajo Nation for gaming to occur
within the To’Hajiilee Chapter (25 U.S.C. Section 2710 9(d)),
attached as Exhibit “A” herein; and

4. The passage of a Navajo Nation Gaming Ordinance is a
condition precedent to requesting a compact with the State of
Arizona; such a compact is necessary to protect any future
gaming initiatives within the State of Arizona; and

5. Pursuant to resolutions passed by To’Hajiilee Chapter,
To'Hajiilee Chapter members support gaming at To’Hajiilee,
attached as Exhibit “B” herein; and

6. The feasibility of gaming at To’Hajiilee Chapter is
substantiated by the attached Feasibility Study which was done
by Johnson and Associates and was finalized on Friday, September
28, 2001, attached as Exhibit “C” herein; and

7. The transportation, sale, delivery and consumption of
alcohol at any gaming facility established by or on behalf of
To’Hajiilee Chapter is strictly prohibited; and

At


operation standards and requirements equivalent to or more stringent than those contained
in the federal Fair Labor Standards Act of 1938, the federal Occupation Safety and Health
Act of 1970, and any other federal laws relating to wages, hours of work and conditions of
work, and the regulations issued thereunder;

(2) On any construction project involving any Gaming Facility or related
structure that is funded in whole or in part by federal funds, all workers will be paid wages
meeting or exceeding the standards established for New Mexico under the federal Davis-
Bacon Act;

(3) The Navajo Nation, the Gaming enterprise and a Management Contractor
shall not discriminate in the employment of persons to work for the gaming Enterprise or
in the Gaming Facility on the grounds of race, color, national origin, gender, sexual
orientation, age or handicap. This provision shall not be deemed to prohibit the application
of the Navajo Preference in Employment Act.

(4) All employees of a gaming establishment shall be provided employment
benefits, including, ata minimum, sick leave, life insurance, paid annual leave and medical
and dental insurance as well as providing unemployment insurance and workers
compensation insurance through participation in programs offering benefits at least as
favorable as those provided by comparable programs of the State of New Mexico;

(5) A grievance process shall be provided for an employee in cases
disciplinary or punitive action taken against an employee that includes a process for
appeals to persons of greater authority than the immediate supervisor of the employee;

(6) New Mexico State Department of Environment inspectors shall be
permitted to inspect gaming Facilities’ food service operations during normal gaming
Facility business hours to assure that standards and requirements equivalent to New
Mexico's Food Service Sanitation Act are maintained;

(7) Gaming enterprises are prohibited from cashing any paycheck or any type
of government assistance check, including Social Security, AFDC , pension and other
similar checks, for any patron.

(8) Gaming enterprise are prohibited from extending credit by accepting lIOUs
or markers from its patrons;

(9) Odds shall be posted on each electronic and electromechanical gaming
device.

(10) Automatic teller machines on Gaming Facility premises shall be
programmed so that the machines will not accept cards issued by New Mexico to AFDC
recipients for access to AFDC benefits.

(11) Each electronic or electromechanical gaming device in use at the
Gaming Facility shall pay out a mathematically demonstrable percentage of all amounts


(d) Has a conflict of interest or a potential for a conflict of interest if a Gaming
Employee. Any Public Official or Public Employee of the Nation shall be
deemed to have a conflict of interest.

Chapter 9. License Application Procedure.

Section 901. Application Requirements: Processing.

(a) Each application for a license under Chapters 5, 6, 7 or 8 of this Ordinance must
be submitted to the Gaming Regulatory Office on forms prescribed by the Gaming
Regulatory Office, and must be accompanied by the required fee and such supporting
information as the Gaming Regulatory Office prescribes by regulation which shall include:

(1) In the case of individual persons:

(A) Full name, including any aliases by which applicant has
ever been known;

(B) Social security number;

(C) Date and place of birth, gender, current citizenship, and: all
languages spoken or written;

(D) Currently and for the previous 5 years: business and
employment positions held, ownership interests in those
businesses, business and residence addresses, and drivers
license numbers;

(E) The names and current addresses of at least three personal
teferences, including one personal reference who was
acquainted with the applicant during each period of residence
listed under paragraph |(D) of this subsection (a) ;

(F) | Education history;

(G) Current business or employment and residence telephone
numbers;

(H) A description of any existing and previous business
relationships with Indian tribes, including ownership interests
in those businesses;

(I) A description of any existing and previous business
relationships with the gaming industry generally, including
ownership interests in those businesses;


The Gaming Regulatory Office shall conduct whatever investigation it deems necessary
and shall determine whether payment should be made.

(b) Notice to Patrons. The Gaming Regulatory Office shall mail written notice by
certified mail, return receipt requested, to the Gaming Facility Operator and the patron
of its decision resolving the dispute within 30- days after the date that the Gaming
Regulatory Office first receives notification from the Gaming Facility Operator or a
request to conduct an investigation from the patron.

(c) Effective Date of Decision. The decision of the Gaming Regulatory Office is
effective on the date it is received by the aggrieved party as reflected on the return
receipt.

(d) Review of Decision. - Within 30 days after the date of receipt of the written
decision, the aggrieved party may file a petition with the Gaming Regulatory Office
requesting a review of the decision. The Gaming Regulatory Office may set a hearing on
the matter or may make a decision based solely upon the prior decision and other
documentation provided to it by the patron and the Gaming Facility operator. The Gaming
Regulatory Office shall then issue a written decision and mail it to the parties pursuant to.
the procedures set forth inSection 1308 (b) . The written decision of the Gaming Regulatory
Office shall be the final decision of the Gaming Regulatory Office.

Section 1309. Play by Employees. No Primary Management Official, Key
Employee, member or staff of the board of directors of a Tribal Gaming Enterprise,
Management Contractor, employee of a Gaming Facility, and no employee of the Gaming
Regulatory Office shall play or be permitted to play either in person or through an agent in
any Gaming Activity carried on in any Gaming Facility licensed by the Gaming Regulatory
Office pursuant to this Ordinance.

Section 1310. Small Bingo Games and Raffles. Any non-profit organization, upon
proper application to the Gaming Regulatory Office, may conduct or operate a small bingo
game or raffle within the territorial jurisdiction of the Nation, in accordance with regulations
issued by the Gaming Regulatory Office specifying the manner in which such games may
be conducted, provided that such games shall at a minimum comply with the following:

(a) the organization conducting the game shall provide satisfactory evidence to the
Gaming Regulatory Office of its nonprofit status, and no member, director, officer,
employee or agent of the organization shall receive any direct or indirect pecuniary benefit
from the small bingo games or raffles, other than being able to participate in the games on
a basis equal to that of all other participants;

(b) the organization shall have been in existence continuously and conducting

activities within the Nation for a period of no less than two years immediately prior to
conducting the games;


enforcement authorities, as shown by an affidavit of Principals
of the organization having personal knowledge thereof;

(D) Has established a reputation for financial integrity and sound
business practices, or, if the organization was recently formed,
that all persons having any role in its formation, including
persons supplying financing, are persons qualified to be
licensed individually under the terms of this chapter;

(E) Has established that any person having a role in the formation
or acting as a Principal of the organization is not a Public
Official or Public Employee of the Nation; and

(F) Is in all other respects reliable and trustworthy, and whose
involvement in Gaming Activities within the Nation will be in the
best interests of the Nation as set forth in this Ordinance.

As a condition of any such license, the Gaming Regulatory Office shall
require that any licensed corporation, partnership or other entity give notice
to the Gaming Regulatory Office within 10 days of any material change in
any information disclosed in the application for which prior notice was not
feasible, including but not limited to, any change in its Principals.

Chapter 8. Gaming Employee's License.

Section 801. Requirement of License. Every Gaming Employee of a Gaming

Facility Operator shall be licensed by the Gaming Regulatory Office prior to
commencement of employment.

Section 802. Standards of Suitability. No person shall be issued a Gaming
Employee’s License or have his License re-need under this Chapter if the Gaming
Regulatory Office determines that such person:

(a)

(b)

(c)

Has been convicted of any felony within the past ten (10) years or any
gaming offense;

Has knowingly and willfully provided materially important false statements
or information on his or her license or employment application; or

Has been determined to be a person whose prior activities, criminal record
if any, or reputation, habits, and associations pose a threat to the public
interest or to the effective regulation and control of gaming, or create or
enhance the dangers of unsuitable, unfair, or illegal practices, methods, and
activities in the conduct of gaming or the carrying on of the business and
financial arrangements incidental thereto.


(a) the physical facility within which the Gaming Activities
are to be conducted is de igre aid CONSTIUcTes ane MS Tee Loess

“.
thre—tews—of tire Hetron-end ther qarTenent Streets CesT

Serge — berger hte a TS lores
ersure the neaitn ane afety of—ait employees EN Pace = T

aotivities;—ond-the-protection of theneturei environment rom any

contaminet ten cue te discharge of waste or anzens Tabptesstospans
cf—tthe—temd—surfeace constructed, maintained and operated in a

mann that adeouat rotects the environment and tne pubdiic

health and safety;

5. Amend Section 1310 as follow:

Section 1310. Small Bingo Games and Raffles. Any non-profit
organization, upon proper application to the Gaming. Regulatory
Office, may conduct or operate a small bingo game or raffle within
the territorial jurisdiction of the Nation, an accordance with the

u °. rovisions 0 Indi i dat id
regulations issued by the. re Reguiatesy” Office specifying the
manner in which such games may be conducted,

games—sheid—at—a—mirimum—compiy—with—the—foltowings

atisfactory evidence to— the —Seming—Reyuistory—office—of—its
nonprofit—steatus;—eamd—ne—member;—director; vttrcery empioyee a
agent ofthe —orgeniration—shait receive—any—direct—or—imdirect
pecuniary benefit from the smati bingo-games—or_reftte;other—thet

being abte—to parts tpate—in-the-games—on—2-besis—equai—to—that—of

ati-ether—perticipants?

. . : . . 4
th} the-orgenizetion-sheithevebeenirentstence ontinucusty

4 : ben arene , ~ x 3
amd-conducting activities within the hation-foraperiod-of ne—tess

+ + eh. 5 A A +
than—two—years—_immedietet rror—to_conducting—the—games+
i)

ce A o +, 33
top —tie—gross—receipts from _tte—smait vemge or—refftte—sheit

se 5—+ +
TOT exceed FI, SUS So an the aggregate on-any _singie—oceasiornrs

et +. : f+ . oe 3 33
Var vire requirements—of_this—section shaii-not—appiy—te—-smatt

+e. -} 3 3. ran 33. . A . oan
pinge games ana rarities conducted—by haveyo nation Tror—Citizen
> Serroray 3 3 5 4 3
enters; fre—~scneei—and _‘headstart—programs; r——otter—schoot


(b) | Small bingo games and raffles as provided in Section 1310 of this
Ordinance.

Section 302. Use of Net Revenues. All net revenues received by the Nation from all
Gaming Activities shall be utilized according to applicable Navajo Nation laws and in
accordance with the National Indian Gaming Regulatory Act and CFR 25.

Chapter 4. Navajo Gaming Regulatory Office.

Section 401. Establishment of the Gaming Regulatory Office. There, is hereby
established the Navajo Gaming Regulatory Office within the Executive Branch of the
Navajo Nation government, with legislative oversight by the Economic Development
Committee of the Navajo Nation Council, and shall have overall civil regulatory authority
over Gaming Activities within the Nation as specifically provided herein.

Section 402. Personnel.

(a) The Navajo Gaming Regulatory Office (hereinafter "the Gaming Regulatory
Office"), shall consist of an Executive Director, Inspectors and such assistants and other
staff as the Executive Director shall determine are required from time to time, subject to
funding provided by the Navajo Nation Council.

(1) No employee of the Gaming Regulatory Office shall:
(A) be employed by a Gaming Facility Operator.

(B) have an immediate family member employed by a Gaming
Facility Operator.

(2) No former employee-of the Gaming Regulatory Office shall be
employed by a Gaming Facility Operator within six (6) months of
leaving employment of the Gaming Regulatory Office.

(3) | No employee of the Gaming Regulatory Office shall be employed by
= orhold, directly or indirectly, a financial interest in an organization or
entity which has entered into a Management Contract with the
Nation or a Gaming Facility Operator; (ii) is a Distributor; (iii) provides
Gaming Services; or (iv) provides financing to the Nation or a
Gaming Facility Operator for purposes of conducting Gaming
Operations within the Nation.

(b) The Executive Director of the Gaming Regulatory Office shall be retained by
contract by the President of the Navajo Nation, such contract being approved by the
Navajo Nation Council for a four year term, and such contract being executed by the
President. The job performance of the Executive Director shall be reviewed periodically by
the President who shall submit a written report of each such review to the Speaker of the
Navajo Nation Council. The Executive Director of the Gaming Regulatory office shall be
removable only for breach of contract.


(5)

(6)

(7)

(8)

(9)

(10)

(11)

ensuring the accuracy and reliability of its accounting data, promoting
operational efficiency and encouraging adherence to prescribed
managerial policies;

Detailed plans for the facility, including landscaping. traffic controls,
parking, food and drink services, and other physical aspects of the
building;

A detailed description of how security will be maintained at the facility,
identifying the persons, agencies or entities that will provide such
security;

A detailed description of how gaming proceeds will be accounted
for and disposed of on a daily basis;

A copy of any proposed Management Contract or other contractual
arrangement by which the activities at the facility are to be managed;

A description of provisions for dealing with fire or other potential
emergencies at the facility;

A detailed description of how sewage and other waste products from
the facility will be handled and disposed of; and

Any other information relevant to the proposed operation of the
facility or requested by the Gaming Regulatory Office as part of the
application.

(c) An application for an amended license to conduct new or different Gaming
Activities at a licensed location or to otherwise alter the terms or conditions of an existing
license, shall, at a minimum, include the following information:

(1)

(2)

(3)

(4)

Any change in information previously provided in the original license
application or any previous application for an amended license for the
facility;

A detailed description of the changes in the facility or in the activities
to be carried on therein for which the amended license is required,
together with a statement of the reasons for such change;

If a proposed change will require any change in the existing
Management Contract with respect to the facility, a copy of the
proposed amendment to such contract or new contract; and

Any other information relevant to the changes or new activities
requiring the amendment.


(d) In its decision to license any facility, or to amend any existing license to permit
the conduct of new or different Gaming Activities at a licensed facility, the Gaming
Regulatory Office may specify, consistent with the provisions of this ordinance, terms or
conditions it believes necessary or appropriate to ensure the health and safety of patrons
and employees of any such facility, the integrity of the Gaming Activities carried on at such
facility, and the security of gaming proceeds. if dissatisfied with any such condition, the
applicant may request that the Gaming Regulatory Office reconsider its determination.
Upon such request for reconsideration, the Gaming Regulatory Office shall issue a written
decision within 15 days of its receipt of the request for reconsideration. The written decision
of the Gaming Regulatory Office shall constitute final action of the Gaming Regulatory
Office.

Section 1104. Fees. The Gaming Regulatory Office shall collect the following fees
in connection with the processing of applications and the issuance of licenses: - -

(a) Gaming Facility License:
(1) Annual fee of $ 30,000.

(2) Application for amendment of an
existing Gaming Facility License: $ 15,000.

(b) The annual fee shall be payable in equal quarterly installments, the first of which
shall be payable within 15 days of receipt of notice of approval of the Gaming Facility
License. The remaining installments shall be paid on the first day of each succeeding
calendar quarter.

(c) | The Gaming Regulatory Office may by regulation prescribe such other
fees.as it deems appropriate.

Section 1105. License Terms: Renewal. Each Gaming Facility License issued by
the Gaming Regulatory Office shall be for a term of two years. Such license may be
renewed for subsequent three year terms upon proper application on forms specified by
the Gaming Regulatory Office.

Chapter 12: Facility Inspection; Notice of Violation; Complaints; Judicial Review.

Section 1201. Facility Inspection. The Gaming Regulatory Office shall, no less than
monthly and at such other times as it believes are warranted, cause detailed inspections
to be made of each Gaming Facility licensed under the provisions of this ordinance, to
assure that such facility is being operated in accordance with the terms of the license and
of the provisions of this ordinance and the Act.

Section 1202. Notice of Violation.


or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods and activities in the conduct of gaming or the
carrying on of the business and financial arrangements incidental
thereto; or

(4) | Has a conflict of interest or a potential for a conflict of interest if a
member of the Board of Directors. Any Public Official or Public
Employee of the Nation shall be deemed to have a conflict of
interest.

Chapter 6. Gaming Manager's License.

Section 601. Requirement of License. No person, corporation, partnership, or other
entity shall manage any Gaming Operation as the general manager of a Tribal Gaming
Enterprise without first obtaining a Gaming manager's License from the Gaming Regulatory
Office. In the case of a corporation, partnership or other entity, each Principal of the
corporation, partnership or other entity must also obtain a Gaming Manager's License from
the Gaming Regulatory Office.

Section 602. Standards of Suitability.

(a) Individuals. No person shall be issued a Gaming Manager's License or have his
License renewed under this Chapter if the Gaming Regulatory Office determines that such
person:

(1) | Has been convicted of any felony or gaming offense;

(2) Has knowingly and willfully provided materially important false
statements or information on his license application;

(3) | Has been determined to be a person whose prior activities, criminal
record if any, or reputation, habits, and associations pose a threat to
the public interest or to the effective regulation and control of gaming,
or create or enhance the dangers of unsuitable, unfair, or illegal

= practices, methods, and activities in the conduct of gaming or the
"carrying on of the business and financial arrangements incidental
thereto; or

(4) Has a conflict of interest or a potential for a conflict of interest if a
Gaming Manager. Any Public Official or Public Employee of the
Nation shall be deemed to have a conflict of interest.

(b) Corporations, Partnerships,- and other Entities.

(1) No corporation, partnership, or other entity shall be issued a Gaming
Manager's License or have its License re-need by the Gaming


‘Apr. 08-02 O5:36A

~

8 ,

Vt

FEB 0 7 2002

This letter responds to your request to the National Indian Gaming Commission (NIGC)
for the review and approval of the Navajo Nation’s (Tribe) Triba} Gaming Ordinance
(Ordinance). The Tribal Council enacted the Ordinance by Resolution No. CO-75-01 on
November 21, 2001. Under the Indian Gaming Regulatory Act (IGRA) and the
regulations promulgated by the NIGC, the Chairman has 90 days to review an ordinance
and either spprove or disapprove it. 25 CF.R. § 522.4. :

After careful review, the Tribe's Ordinance is disapproved based on the following
deficiencies:

1. Section 522.2(h) of 25 CFR. requires the Tribe to both identify a law
enforcement agency that will take fingerprints and provide a description of
procedures for conducting a criminal history check by a law enforcement
agency, The Ordinance does not include these provisions.

2. 25 CFR. § 522.4(bX7) requires that the Ordinance provide that the Tribe
shall conduct, maintain, and operate the gaming facility in a manner that
adequately protects the environment and the public health and safery. Section
1102{a) of the Ordinsncs addresses heals; end safety concerns only with
respect to the design and ion of garning facilities. The Ordinance.
must specifically provide the Tribe will conduct, maintain, and operate
the facility in a manner, adequately protects both public health and safety
and the environment. ‘urthermore, Section 1102(a) also provides for the
protection of the environment from any contamination due to
discharge of waste or unreasonabic disturbance of the tand surface.” These
provisions are insufficient to meet the broad requirements of section
522.4(oX(7). No limitations may be placed on protection of the environment.

NATIONAL HEADQUARTERS 1441 L Street NW, Suite 9100, Washington. DC 20005 Tet: 202.632.7003 fax: 202.632.7066 WHWICECOV
REGIONAL OFFICES. Portiond, OR: Sacrarwenco, CA: Proenen, AZ: St. Pail, MN; Tutse, OK


(5) access to assets only in accordance with management's
authorization;

(6) | comparison of records of assets with existing assets at reasonable
intervals with provision for appropriate action with respect to any
differences.

(c) The system of administrative controls shall include a complete plan of
organization that will provide appropriate segregation of functional responsibilities and
sound practices to be followed in the performance of those duties by competent and
qualified personnel. The plan of organization shall be diagrammatic and narrative
describing the interrelationship of functions and the division of responsibilities upon
which the system of internal control relative to gaming operations is based.

(d) Upon written application to the Gaming Regulatory Office, the licensee may
request any material change in the internal control system it determines appropriate. The
Gaming Regulatory Office shall notify the licensee in writing that such application is
accepted or rejected, within thirty days of receiving such application. The written decision
of the Gaming Regulatory Office shall constitute final action of the Gaming Regulatory
Office.

(e) The system of accounting controls shall include a detailed system for counting
cash receipts at least daily, and shall be appropriate to the types of Gaming Activities
carried on at the facility and the physical characteristics of the system utilized for collecting
cash.

(f) The Gaming Regulatory Office shall require that all bank accounts maintained
by the operators of the Gaming Facility shall be identified by bank and account number and
that all signatories to such accounts be identified by name.

Section 1306. Annual Independent Audit.

(a) Each licensed Gaming Facility Operator shall provide at its own expense an
audited financial-statement for its licensed Gaming Facilities to the Gaming Regulatory
Office at least annually, on a date to be established by the Gaming Regulatory Office, and
at such other times as the Gaming Regulatory Office may require.

(b) The audit shall be conducted by an independent certified public accountant
licensed in a state, who shall submit an audit report expressing an unqualified or qualified
opinion or, if appropriate, disclaim an opinion on the statement taken as a whole in
accordance with generally accepted auditing standards of the accounting profession. The
examination and audit shall disclose whether the accounts, records, and internal controls.
and accounting procedures maintained by the licensed Gaming Facility are in compliance
with this Ordinance and the Act. To facilitate the completion of such audits, each licensed
Gaming Facility operator shall make and maintain complete, accurate and legible records


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

(12) No later than ninety days after this compact takes effect, all gaming
machines on the premises of the Gaming Facility will be connected to a central
computerized reporting and auditing system on the Gaming Facility premises, which shall
collect on a continual basis the activity of each gaming machine in use at the Gaming
Facility, and that such data shall be electronically accessible to New Mexico Gaming
Representative upon entry of appropriate security codes;

(13) Employees of a Gaming Facility are prohibited from selling, serving,
giving or delivering an alcoholic beverage to an intoxicated person or from procuring or
aiding in the procurement of any alcoholic beverage for an intoxicated person at the
Gaming facility.

(14) Gaming Facility employees that dispense, sell, serve or deliver alcoholic
beverages shall attend alcohol server Education Classes similar to those classes provided
for in the New Mexico Liquor Control Act;

(15) Gaming Facility operators shall purchase and maintain a liquor liability
insurance policy that will provide, at a minimum, personal injury coverage of one million
dollars ($1,000,000) per incident and two million dollars ($2,000,000) aggregate per policy
year;

(16) Alcoholic beverages shall not be sold, served, delivered or consumed
in that part of a gaming Facility where gaming is allowed;

(17) The Tribal Gaming Enterprise shall spend an amount that is no less than
on-quarter of one percent (25%) of its net win as that term is defined herein annually to
fund or support programs for the treatment and assistance of compulsive gambling;

(18) Governing any Management Contract regarding its Class II] gaming
activity such that it conforms to the requirements of tribal law and the IGRA and the
regulations issued thereunder,

(19) The operation of any class Ill Gaming shall be prohibited for at least four
(4) consecutive hours daily, Monday through Thursdays (except federal holidays);

(20) Gaming Facility Operators and the Navajo Nation shall not provide,
allow, contract to provide or arrange to provide alcoholic beverages, food or lodging for no
charge or at reduced prices at a Gaming Facility or lodging facility as an incentive or
enticement for patrons to game; and

(21) The Navajo Nation, the Navajo Gaming Regulatory Office or a
Management Contractor shall be prohibited from contributing directly, or through an agent,
Tepresentative or employee, revenue fro a Gaming Enterprise owned by the Navajo Nation,
or anything of value acquired with that revenue, to a candidate, political committee or


901 - Application Requirements; Processing ....... .. 19

902 - FOCS..... ei eeeeeceeeeteeseetteeetete cee eee eee . 21
903 - License Terms; Renewal eee eee ee tenes 22
904 - Reserved ... 1... cece ee tenes 23
905 - Non-transferability of License ..................... eee 23
Chapter 10: Background Investigations; Notifications

1001 - Background Investigations .................0 0. eee eee ee 23
1002 - Notification to the National Indian Gaming

Commission... 2... cece tee ete tees 24

Chapter 11: Gaming Facility License

1101 - Requirement of License ...............
1102 - Standards for Issuance of License
1103 - Application for a New or Amended Gaming

Facility License; Procedure
1104-Fees ........... 0. eee eee
1105 - License Terms; Renewal

Chapter 12: Facility Inspection; Notice of Violation;
Complaints; Judicial Review

1201 - Facility Inspection ...................
1202 - Notice of Violation ........
1203 - Investigation of Complaints
1204 - Judicial Review

Chapter 13: Gaming Operation

1301 - Scope of Permissible Gaming
1302 - Hours, Days, Other Standards................
1303 - Employee and Player Age Limit...
1304 - Management; Security
1305 - internal Controls .....
1306 - Annual Independent Audit. . . .
1307 - Public Disclosure of Payofts . .
1308 - Patron Disputes............
1309 - Play by Employees............... 0.2.

1310 - Small Bingo Games and Raffles . . . eee
1311 - Processing of Contracts ....... .. cece eee eee eee 36

Chapter 14: Violations and Remedies

1401 - Violations


ORDINANCE FOR THE REGULATION OF GAMING ACTIVITIES
WITHIN THE NAVAJO NATION

Chapter 1. Findings and Purposes.

Section 101. Legislative Findings. The Navajo Nation Council of the Navajo Nation
hereby finds:

(a) That the orderly and honest conduct of gaming activities within the Navajo
Nation will be of vital importance to the economy of the Nation, and to the general welfare
of its members;

(b) That the growth and success of gaming within the Navajo Nation is dependent
upon public confidence and trust that such activities are conducted honestly and that they
are free from criminal and corrupt elements, and that the facilities in which such activities
are conducted are designed and maintained to assure the safety and comfort of patrons
of the gaming activities;

(c) | That such public confidence and trust can only be maintained by the
comprehensive regulation of all persons, practices, and activities related to the
operation of the Nation’s gaming facilities; and

(d) All of the Nation's establishments where gaming is conducted, and all
persons holding positions of responsibility with respect to any such activity, must
therefore be licensed, and their activities monitored, to assure that the public health,
safety and general welfare of the inhabitants of the Nation and the patrons of its gaming
facilities are fully protected, and so as to assure the economic success of-gaming
activities within the Nation.

Section 102. Purposes. This Ordinance is enacted, and shall be interpreted, so as
to accomplish the following purposes:

(a) The maintenance of the highest standards of honesty and integrity in the
operation of any and all gaming activities within the Navajo Nation;

(b) The maintenance of public confidence and trust in the honesty and integrity of
such gaming activities, and in the persons engaged in such activities;

(c) The maximum reasonable economic return to the Navajo Nation as the owner
of gaming facilities within the Nation consistent with the fair and reasonable expectations
of patrons of such activities and the assurance of their safety and comfort in participating
in gaming activities; and

(d) Compliance with all applicable laws of the Navajo Nation and the United States
of America, including but not limited to the Indian Gaming Regulatory Act of 1988.


CAP-34-02
CERTIFICATION

I hereby certify that the foregoing resolution was duly
considered by the Navajo Nation Council at a duly called meeting
in Window Rock, Navajo Nation (Arizona) at which a quorum was
present and that the same was passed by a vote of 37 in favor,
10 opposed and 0 abstained, this 18‘ day of April 2002.

Gp Clay

_ Edward T. Begay, Speaker —
Navajo Nation Council
t

Date
Motion: Mark Maryboy
Second: Ralph Bennett
ACTION BY THE NAVAJO NATION PRESIDENT:
1. I hereby give notice that I will not veto

the foregoing legislation, pursuant to

2 N.N,C. Section ,1005.. (C) (10), on this
40-day of "Abarat 2002.
Kea pA

Kelsey A. Bégaye, President
Navajo Nation

2. I hereby veto the foregoing legislation,
pursuant to 2 N.N.C. Section 1005(C) (10)
this day of _ tC :Cid2000022:«sECO”

the reason(s) expressed in the attached
letter to the Speaker.

Kelsey A. Begaye, President
Navajo Nation


on by the Nation under the Act, and that the facilities are appropriate to the carrying on of
such activities;

(c) the Gaming Facility Operator will adequately staff and equip the facility to ensure
the safety, comfort and convenience of the patrons thereof, and that the Gaming Facility
Operator has taken adequate measures to provide for traffic, emergency service
accessibility, food, drink and sanitary needs for patrons and employees, security, law
enforcement and other concerns raised by the type of Gaming Activities proposed to be
undertaken in compliance with this ordinance and the Act;

(d) the Nation or Tribal Gaming Enterprise has agreed to a Management Contract
or has made provision for management of the facility under terms and provisions that
ensure that the activities will be carried out in a manner consistent with the requirements
of this Ordinance, that the contracting party or parties have received appropriate licenses
issued under the provisions of this Ordinance, and that all employees hold Gaming
Employee’s Licenses issued under the provisions of this ordinance; and

(e) in all other relevant respects, the facility will be operated in a way that is fully
consistent with the provisions of this Ordinance, and that its operation will further the
interests of the Nation with respect to its operation of Gaming Activities.

Section 1103. Application for_a New or Amended Gaming Facility License
Procedure

(a) An application for a new or amended Gaming Facility License shall be submitted
by the Tribal Gaming Enterprise prior to the commencement of operations at the facility or
the commencement of the new activity at the facility for which an amended license is
required.

(b) The Gaming Regulatory Office shall prescribe the information required to be
submitted with such applications, but at a minimum, such application for licensing a new
facility shall include the following:

(1} The name, specific position and job description of all persons to be
employed as Primary Management Officials or Key Employees at the
facility;

(2) Job descriptions for every other position in which persons will be
employed at the facility;

(3) | Adetailed description of each Gaming Activity to be engaged in at the
facility, together with expected payouts to winners;

(4) A description of the internal controls, plan of organization and all
coordination methods and measures for the safeguarding of assets,


(2) | The procedure by which applicants for licenses under this ordinance
shall apply for such licenses, including the information to be provided
by the applicant necessary for adequate assessment of the
applicant’s background, and the manner in which such applications
will be processed; and

(3) The specific types of accounting, security, record keeping and
reporting measures required by this Ordinance or the Act to be in
place and functioning at any Gaming Facility licensed under this
Ordinance.

(b) Except in emergency situations addressed in subsection (c) below, prior to
promulgating a final regulation the Gaming Regulatory Office shall publish the regulation
in proposed form. The proposed regulation shall be provided directly to the President of
the Nation, the Speaker of the Navajo Nation Council, the Chairperson and each member
of the Economic Development Committee of the Navajo Nation Council, the Office of the
Attorney General, and to any other interested person or interested office or agency of the
Nation. The proposed regulation shall be accompanied by a notice stating that the Gaming
Regulatory Office will accept written comments for no less than thirty (30) days following
the date of publication. As provided in this section, "publish" shall mean publication in
newspaper(s) of general circulation within the Nation. in the event of significant public
interest with respect to any regulation, the Gaming Regulatory Office may hold a public
hearing prior to issuing a final regulation. Notice of such hearing shall be given as set forth
above, and in addition shall be mailed directly to any person submitting comments on the
proposed regulation. Except as provided in subsection (c) of this section, no final regulation
shail be issued until the Gaming Regulatory Office has reviewed all comments received by
the close of the comment period, as well as all presentations made at any hearing held
pursuant to this subsection.

(c) In the event the Gaming Regulatory Office determines that an immediate
rule-making is necessary to avoid serious jeopardy to the integrity of any Gaming
Activity within the Nation, or otherwise to deal with an emergency situation affecting the
responsibilities of the Gaming Regulatory Office, the Gaming, Regulatory Office may,
upon making an express written finding as to such emergency, issue a final regulation
to take effect immediately; provided, that the Gaming Regulatory Office shall publish
notice and-request comments on such regulation in the same manner as is provided
above, and upon consideration of any comments received, shall make such
amendments to such final regulation as the Gaming Regulatory Office deems
appropriate.

(d) All final regulations adopted by the Gaming Regulatory Office shall be officially
filed with the Reporting Section of the Navajo Nation Council, the Office of the President,
the Office of the Attorney General, and Records and Communications.

Section 405. Petition for Self Regulation. Upon the Gaming Regulatory Office’s
determination that the Nation is eligible therefor, the Gaming Regulatory Office may submit


RESOLUTION OF THE 067
NAVAJO NATION COUNCIL Pope

Approving Technical Amendments to the
Navajo Nation Gaming Ordinance

WHEREAS :

1. Pursuant to 2 N.N.C. §102 (A), the Navajo Nation
Council is the governing body of the Navajo Nation; and

2. The Navajo Nation Council by passage of Resolution CO-
75-01 adopted the Navajo Nation Gaming Ordinance; and

3. On November 21, 2001, the Navajo Nation in accordance
with provisions of the Indian Gaming Regulatory Act (IGRA) 25
U.S.C. §2701 et seg., submitted the Gaming Ordinance to the
National Indian Gaming Commission (NIGC) for review and
approval; and

4a. On January 30, 2002, the NIGC acting through its
Chairman Montie R. Deer, disapproved the Navajo Nation Gaming
Ordinance citing several technical deficiencies as set forth and
attached as Exhibit “A”; and

5. Technical Amendments designed to correct the
deficiencies noted by the NIGC have been drafted and submitt d
to amend the Navajo Nation Gaming Ordinance, as set forth and
attached as Exhibit “B”; and

6. The Economic Development Committee of the Navajo
Nation Council passed Resolution EDCAP-34-02 approving the
Technical Amendments and recommending that the Navajo Nation
Council adopt the Technical Amendments, attached as Exhibit “Cc”.

NOW THEREFORE BE IT RESOLVED THAT:
The Navajo Nation Council hereby approves the Technical

Amendments to the Navajo Nation Gaming Ordinance, as set forth
in Exhibit °B”.


(c) the gross receipts from the small bingo game ¢ or raffle shall not exceed
$5,000.00 in the aggregate on any -single occasion;

(d) the requirements of this section shall not apply to small bingo games and raffles
conducted by Navajo Nation Senior Citizen Centers, Pre-School and Headstart Programs,
or other school organizations.

Section 1311. Processing of Contracts. The Department of Justice shail review the
recommendation of the Gaming Regulatory Office and, if in compliance with applicable law
and regulation, approve the terms of any and all proposed contracts between the Nation
ora Tribal Gaming Enterprise and any person or entity which provide for the management
or operation of any Gaming Facility within the Nation, the provision of any and all Gaming
Services, as well as the terms of any lease of land which is the site or proposed site of
such Gaming Facility.

Chapter 14. Violations and Remedies.
Section 1401. Violations. It shall be a violation of this ordinance for-any person to:

(a) conduct or operate any Gaming Activities within the Nation except as
provided in this Ordinance;

(b) receive, distribute, apply or direct any property, funds, proceeds or other asset
of any Gaming Activity to the benefit of any individual or other person except as authorized
by this Ordinance or by any duly enacted Resolution of the Navajo Nation Council;

(c) tamper with any equipment used in the conduct of Gaming Activities with the
intent to cause any person to win or lose any wager other than in accordance with the
publicly announced rules of such Gaming Activities;

(d) do any other act in connection with the conduct of any Gaming Activities with
the intent to affect the outcome of any wager other than in accordance with the publicly
announced rules-of such Gaming Activities;

(e) participate as a player in any Gaming Activities if such person is prohibited
under Section 1309 from participating in such Gaming Activities; or

(f) participate as a player in any Gaming Activities while such person is listed as a
person barred from the Nation’s Gaming Facilities as provided in Section 403(g).

Section 1402. Civil Penalties. Any person who violates any provision of this
Ordinance or the Act shall be subject to civil penalties including exclusion from
employment by a Gaming Facility operator, exclusion from attendance at any
Gaming Facility, exclusion from the Nation if the person is a non-member of the


(c) The application forms used by the Gaming Regulatory Office shall contain the
Privacy Act notice and the notice regarding false statements, and in the form required by
the Commission, pursuant to 25 C.F.R. Part 556, and each applicant shall consent in
writing to the release of any information that may be relevant to the Gaming Regulatory
Office’s inquiry into the applicant’s background from any person or entity. Any and all
information obtained by the Gaming Regulatory Office in the course of reviewing an
application will remain confidential, and will not be released by the Gaming Regulatory
Office to any other person or agency (other than the commission if disclosure is required
under the Act) without the applicant’s consent, or pursuant to an order of court or other
body of competent jurisdiction.

(d) The Gaming Regulatory Office shall issue a decision on the application in
writing. The written decision of the Gaming Regulatory Office shall constitute final action
of the Gaming Regulatory Office on such application. tn the event any application for a
license is denied, the decision shall specify the reason for such denial.

Section 902. Fees. The Gaming Regulatory Office shall collect the following fees
in connection with the processing of applications and the issuance of licenses:

{a) | Gaming Facility Operator's License:
(1) Initial application fee:

(A) Tribal Gaming Enterprise: $50,000.
(B) Member, Board of Directors: $ 500.

(2) Annual renewal fee:

(A) Tribal Gaming Enterprise: $15,000.
(B) Member, Board of Directors: $ 100.

(b) Gaming Manager's License:

(1). _ Initial application fee: $ 1,000.
(2) Annual renewal fee: $ 500.

(c) | Manufacturers/Suppliers License:
(1) _ Initial application fee:
(A) Manufacturer/Distributor of Gaming Devices:
$ 1,000.

(B) Supplier of Gaming Services: $ 100.


Chapter, may apply to the District Court of the Navajo Nation for review of such notice of
violation. Any applicant for a license under this ordinance, any person or entity licensed
pursuant to this Ordinance, and any patron of a Gaming Operation may apply to the District
Court of the Navajo Nation for review of a final action of the Gaming Regulatory Office.

(b) Any such application for court review must be made within 15 days of receipt
of notice of the final action of the Gaming Regulatory Office. The person or entity
requesting judicial review shall be the moving party and shall have the burden of proof by
clear and convincing evidence.

(c) The reviewing court shall decide all relevant questions of law presented,
interpret statutory provisions, and determine the basis for the action of the Gaming
Regulatory Office. The reviewing court shall uphold the action of the Gaming Regulatory
Office unless the court determines that such action was:

(1) Arbitrary, capricious, an abuse of discretion, or otherwise not in
accordance with law;

(2) Contrary to statutory right, power, privilege, or immunity;

(3) In excess of statutory jurisdiction, authority, or limitations, or in
violation of statutory right;

(4) | Without observance of procedure required by faw; or
(5) | Unsupported by substantial evidence.
Chapter 13: Gaming Operation.
Section 1301. Scope of Permissible Gaming. The Gaming Activities permitted to be
conducted in a licensed Gaming Facility are those which may lawfully be carried on by the

Nation under applicable provisions of federal law including, but not limited to, the Act,
-subject to any limitations which may be imposed by this Ordinance.

Section 1302. Hours. Days, Other Standards.

(a) For all activities on Indian lands located outside the State of New Mexico the
Gaming Regulatory Office may by regulation establish the permissible hours and days of
operation of Gaming Activities. The regulations may authorize a licensed Gaming Facility
to remain open and conduct Gaming Activities twenty-four hours a day, seven days a
week. The Gaming Regulatory Office may also, by regulation, establish other standards
of operation for such facilities, as the Gaming Regulatory Office deems appropriate.

(b) For all activities on Indian lands located within the State of New Mexico, the
following standards shall apply:

(1) The Navajo Nation shall take all necessary action to impose on its gaming


(A)

(B)
(C)
(D)

3 ©

(F)

Regulatory Office unless the Gaming Regulatory Office is satisfied
that such corporation, partnership or other entity:

ls organized and in good standing under the laws of the
jurisdiction where it was established, and is qualified to do
business within the Nation and the State;

fs in sound financial condition, as shown by a financial
statement certified by a certified public accountant to be a
current, complete and accurate depiction of the organization’s
financial status;

1s not now and has not been in the past five years the subject
of any criminal investigation by any tribal, federal, or state law
enforcement authority, as shown by an affidavit of Principals
of the organization having personal knowledge thereof;

Has established a reputation for financial integrity and sound
business practices, or, if the organization was recently formed,
that all persons having any role in its formation, including
persons supplying financing, are persons qualified to be
licensed individually under the terms of this Chapter;

Has established that any person having a role in the formation
or acting as a Principal of the organization is not a Public
Official or Public Employee of the Nation; and

in all other respects will be reliable and trustworthy, and
whose involvement in Gaming Activities within the Nation will
be in the best interests of the Nation.

(2) As a condition of any such license, the Gaming Regulatory Office
shall require that any licensed corporation, partnership or other entity:

(A)

(B)

Maintain an office within the Nation; and

Give notice to the Gaming Regulatory Office within 10 days of
any material change in any information disclosed in the

‘application for which prior notice was not feasible, including

but not limited to, any change in its principals.

Chapter 7. Manufacturers/Suppliers License.

Section 701. Requirement of License. Each Manufacturer and each Distributor of
Gaming Devices, and each supplier of Gaming Services shall be licensed by the Gaming
Regulatory Office prior to the sale or lease of any Gaming Devices or Gaming Services to


CO-75-01
CERTIFICATION

I hereby certify that the foregoing resolution was duly
considered by the Navajo Nation Council at a duly called me ting
in Window Rock, Navajo Nation (Arizona) at which a quorum was
present and that the same was passed by a vote of 44 in favor,
17 opposed and 1 abstained, this 16° day of October 2001.

LEAT (Arwen

Edward T. Begay, Speaker
Navajo Nation Council
Of 17,2001
Date

Motion: Lawrence Morgan
Second: Duane Tsinigine

ACTION BY THE NAVAJO NATION PRESIDENT:
1. I hereby give notice that I will not veto
the foregoing legislation, pursuant to
2, N,N.C. Section 00 C) (10), on this
16 aay of 2001.
yer os

Kelsey A. Begayp/\ President
Navajo Nation

2. I hereby veto the foregoing legislation,
pursuant to 2 N.N.C. Section 1005(C) (10)
this day of 2001 for

the reason(s) expressed in the attached
letter to the Speaker.

Kelsey A. Begaye, President
Navajo Nation

qt


Nation, or a civil fine of not more than $10,000.00 for each such violation.

Section 1403. Civil Remedies. The Gaming Regulatory Office may in the
name of the Nation bring any civil action in the courts of the Nation to enforce the
provisions of this Ordinance or the Act or to enjoin or otherwise prevent any violation
of this Ordinance or the Act occurring within the territorial jurisdiction of the Nation.

Chapter 15. Amendments; Compliance with Applicable Laws; etc.

Section 1501. Amendments. This Ordinance may be amended by action of
the Navajo Nation Council.

Section 1502. Compliance with the Act. All Gaming Activities conducted
pursuant to this Ordinance shall comply with the terms and-conditions of the Act.

Section 1503. Severability. If any section, provision, or portion of this
Ordinance is adjudged to be invalid by a court of competent jurisdiction, the
remainder of this ordinance will remain valid.

Section 1504. Non-liability. The Nation declares that there is no liability on the
part of the Nation, its agencies, agents, or employees for any damages which may
occur as a result of reliance upon or conformity with the requirements of this
ordinance. The Nation by adoption of this ordinance does not waive its sovereign
immunity in any respect.

Section 1505. Navajo Preference. Preference in employment and contracting at
licensed gambling establishments shall be in compliance with the Navajo Preference in
Employment Act, 15 N.N.C. Section 601 et. seg., and the Navajo Nation Business
Preference Law, 5 N.N.C. Section 201 et. seq.

Section 1506. Prior Inconsistent Law. All prior laws inconsistent with this Ordinance
are hereby expressly repealed to the extent of-their inconsistency.

:


1402 - Civil Penalties
1403 - Civil Remedies

Chapter 15: Amendments and Compliance with Applicable Laws

1501 -Amendments........... 0... cece cece eee

1502 - Compliance with the Compact and the Act
1503 - Severability
1504 - Non-liability 2.0.0.0... ....000..0.000.
1505 - Navajo Preference