4.02.012 Severability

In the event that any section or provision of this Code is held invalid, it is the intent of the Tribal
Council that the remaining sections or provisions of this Code shall continue in full force and effect,

TRIBAL GAMING COMMISSION

4.02.013 Establishment

The Tribe hereby charters, creates and establishes the Skokomish Tribal Gaming Commission as a
governmental subdivision of the Tribe.

4.02.014 Purpose

The purpose of the Tribal Gaming Commission is regulatory in nature. The Commission will conduct
oversight to ensure compliance with applicable tribal, federal and state law and regulation. The
Commission will serve as the licensing authority for all Gaming facilities and operations, individuals
employed in Gaming and persons doing business with Gaming facilities and operations within the
jurisdiction of the Tribe. The Commission will monitor compliance with Internal Controls for all
Gaming operations and have enforcement authority for all licensing and compliance matters under the
Commission’s jurisdiction within this Code.

4.02.015 Location and Place of Business

The Commission shall be a resident of and maintain its headquarters, principal place of business, and
offices on the Skokomish Reservation. The Commission may, however, establish other places of
business in such other locations as the Commission may from time to time determine to be in the best
interest of the Tribe.

4.02.016 Duration

The Commission shall have perpetual existence and succession in its own name, unless dissolved by
the Tribe pursuant to Tribal law.

4.02.017 Attributes

Asa governmental subdivision of the Tribe, the Commission has been delegated the right to exercise
one or more of the substantial governmental functions of the Tribe, including regulation of tribal
Gaming pursuant to the IGRA and tribal law. It is the purpose and intent of the Tribe in creating the
Commission that the operations of the Commission be conducted on behalf of the Tribe for the sole
benefit and interests of the Tribe, its members, and the residents of the Reservation. In carrying out its
purposes under this Code, the Commission shall function as an arm of the Tribe. Notwithstanding any
authority delegated to the Commission under this Code, the Tribe reserves to itself the right to bring
Suit against any person or entity in its own right, on behalf of the Tribe or on behalf of the
Commission, whenever the Tribe deems it necessary to protect the sovereignty, rights, and interests of
the Tribe or the Commission.

4.02.018 Recognition as a Political Subdivision of the Tribe

S.T.C. 4.02 GAMING CODE - 14


©

@

(9)

®

(g)

S.T.C. 4.02

(xvi)

(xvii)

(xviii)

(xix)

Written permission giving the Commission or its designee the right to
investigate the applicant's background, including his criminal record, civil
and criminal judgments, and credit history.

A complete disclosure of any pending or anticipated civil or criminal action
against the applicant, including the name and address of the police
department and court involved.

A disclosure of any civil or criminal judgments rendered against the
applicant, including the case number, a description of the judgment, and the
name and address of the court involved.

Any other information which might bring into question the applicant’s
fitness to serve as a Primary Management Official, Key Employee or
Gaming Employee of a Gaming Operation.

Each application shall be accompanied by a sworn statement that if the License is
issued, the applicant will submit to the jurisdiction of the Tribe and the Tribal Court.

Each application shall be accompanied by a photograph of the applicant taken within
the last year.

Each application shall be accompanied by a sworn statement that the applicant will
abide by this Code and all other applicable Laws.

Each application shall be accompanied by a written statement that the applicant has

read, understands and approves of the following Privacy Act notice:

In compliance with the Privacy Act of 1974, the following information is
provided: Solicitation of the information on this form is authorized by 25
U.S.C. 2701 et seq. The purpose of the requested information is to
determine the eligibility of individuals to be employed in Gaming Activities.
The information will be used by National Indian Gaming Commission
members and staff who have need for the information in the performance of
their official duties. The information may be disclosed to appropriate
federal, tribal, state, local, or foreign law enforcement and regulatory
agencies when relevant to civil, criminal, or regulatory investigations or
prosecutions or pursuant to a requirement by a tribe or the National Indian
Gaming Commission in connection with the hiring or firing of an employee,
the issuance or revocation of a Gaming license, or investigations of activities
while associated with a tribe or a Gaming Operation. Failure to consent to
the disclosures indicated in this notice will result in a tribe's being unable to
hire you in a Primary Management Official or Key Employee position.

The disclosure of your Social Security Number (SSN) is voluntary.
However, failure to supply a SSN may result in errors in processing your

application.

Each application shall include the following notice to applicants:

GAMING CODE - 35


(b) Binding law or regulation requires immediate Adoption of a Rule to protect the
public or the Gaming Operation.

4.02.054 Emergency Rulemaking Procedure

(a) Emergency Rulemaking is exempt from the Notice Requirement given in Section
4.02.049 to address the emergency. The Commission will vote on a proposed
Emergency Rule as soon as possible, without a comment period.

(b) Upon adoption of an Emergency Rule by the Commission, the Emergency Rule
shall be submitted to the Tribal Council for consideration and vote.

(c) Upon Adoption of the Emergency Rule by the Tribal Council, the Commission
shall publish the Rulemaking Order of Adoption. The Order of Adoption must
contain an Effective Date, and the Effective Date will be the day of Adoption. The
Order of Adoption shall contain a notice that interested parties may petition for
the Amendment or abrogation of the Emergency Rule.

4.02.055 Petition for Rulemaking

An interested party may at any time petition for the issuance, Amendment, or abrogation of a Rule.
The petition must be signed and filed with the Commission. The Commission shall consider the
petition and may, at its discretion, begin a tulemaking.

4.02.056 Rulemaking-Commission Discharge of Duties

The Commission shall diligently discharge the duties imposed by this section, but a minor failure
of publication or a failure to mail any notice or copy of a Proposed rule does not necessarily
invalidate any Rule.

4.02.057 Computation of Time

For the purposes of this section, in computing any period of time prescribed or allowed by
Commission regulation, an order of the Director or Commission, or by an applicable statute, the
day of the act, event, or default after which the designated period of time begins to run is not to be
included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday
or a legal holiday, in which event the period runs until the end of the next day which is not a
Saturday, Sunday, or a holiday. This section shall not apply to periods of license suspension.

LICENSES
4.02.058 Applicability

The Commission will perform background investigations and issue Licenses to Key Employees and
Primary Management Officials according to requirements at least as stringent as those in 25 CFR Parts
556 and 558. Any application for License pursuant to this Code and participation in any Gaming
Activity within the jurisdiction of the Tribe shall be deemed to be a consent to the jurisdiction of the
Tribe and the Tribal Court in all matters arising from the conduct of such Gaming and all matters
arising under any of the provisions of this Code or other Tribal Laws.

S.T.C. 4.02 GAMING CODE - 31


Non-Gaming Employee Licenses

4,02.073 Current and Valid License Required

Every Non-Gaming Employee employed at a Tribal Gaming Facility under the jurisdiction of the
Tribe shall possess a current, valid Non-Gaming Employee license.

4.02.074 Application for Non-Gaming Employee License

(a) A person seeking a Non-Gaming Employee License must be at least 18 years of age.
All applicants shall submit an application to the Commission on such form and in
such manner as the Commission may require.

(b) Such application shall include the following information:

@

(i)

(iii)
(iv)

(vy)

(vi)

(vii)

(viii)

(ix)

S.T.C. 4.02

The applicant's name, including all other names used, current home and
work addresses and telephone numbers, social security number, place of
birth, date of birth, citizenship, and driver's license number, as well as the
address of his personal residences over the past five years.

The name, address, and telephone number of the Gaming Facility and of the
Gaming Operator for whom the applicant intends to work and the specific
location in which the applicant will be employed.

The name and job description of the applicant's position.

The names and addresses of each of the applicant's relatives employed at the
Gaming Facility or by the Commission

A statement as to whether or not the applicant has ever been charged with a
crime, and if so, the charge, the name and address of the court involved, and
the applicant's explanation of the outcome of the case, including the date of
final disposition.

The names, current addresses, and telephone numbers of three references
who are not related to the applicant and who were acquainted with the
applicant when the applicant was residing at each of the addresses listed in
subsection (b)(1) of this section.

A list of the applicant's previous jobs over the preceding five years,
including the name, address and telephone number of applicant’s employer,
and the position held.

The names and addresses and a brief description of all businesses in which
the applicant currently holds, or has within the last five years held, an
ownership interest.

A description of any previous employment relationship with an Indian tribe,
including the employee position held, name of the tribe involved and the

GAMING CODE - 40


(v)

(w)

(x)

(y)

(2)

(aa)

(bb)

(cc)

(dd)

(ee)

(ff)

S.T.C. 4.02

"Gaming Employee" means any natural person employed in the operation or
management of each Gaming Activity or Operation, whether employed by or
contracted to the Tribe or by any person or enterprise providing on or off-site services
to the Tribe within or without the Gaming Facility regarding any Gamin, ig Activity or
Operation, including, but not limited to, Gaming Operation managers and assistant
managers; accounting personnel; cashier supervisors; dealers or croupiers; box men;
floormen; pit bosses; shift bosses; cage personnel; collection personnel; Gaming
consultants, management companies and their principals; and any other natural
person whose employment duties require or authorize access to restricted areas of
each Gaming Activity or Operation not otherwise open to the public.

"Gaming" or "Gaming Activity" means any activity, operation or game in which
valuable consideration is wagered upon the outcome determined in whole or in part
by chance, skill, speed, strength, or endurance or any combination of strength or
endurance, and in which something of value is awarded to a person or persons so
wagering, and any activity in furtherance thereof, including owning, financing,
managing, participating in, conducting, or assisting in any way in any such activity at
the site at which it is being conducted, directly or indirectly, whether at the site in
person or off the Reservation.

"Gaming Apparatus" or "Equipment" means any device, machine, paraphernalia, or
equipment that is used or usable in the playing phases of any Gaming Activity,
whether or not specifically designed for the purpose, but excluding tables and chairs
normally used in the occupancy of any Gaming Facility.

"Gaming Facility" means any location or structure, stationary or movable, where
Gaming is permitted, promoted, performed, conducted, or operated. Gaming Facility
does not include the site of a fair, carnival, exposition, or similar occasion.
"Gaming Operator" means a person who has obtained a Gaming License under this
Code or who is otherwise permitted by this Code to perform, promote, conduct, or
operate any Gaming Activity on Indian Lands.

"Gross proceeds" means any money collected or received from any Gaming Activity.

“Housekeeping rule” means a rule that corrects typographical, grammatical,
gender, or spelling errors, or changes the format of a rule.

"Indian Gaming Regulatory Act" or "IGRA" means Public Law 100-497, 102 Stat.
2426, 25 U.S.C. §§2701, et. seq. (1988), as amended.

"Immediate Family" means, with respect to the person under consideration, a spouse,
father, mother, son, daughter, brother, or sister.

"Indian Lands" means lands as defined by 25 U.S.C. §2703(4) “Skokomish Tribal
Lands” has the same meaning as Indian Lands under this Code.

"IRS" means the United States Internal Revenue Service.

GAMING CODE - 8


(b)

(c)
(d)

()
()

(g)

(h)

@

@

S.T.C. 4.02

Each License shall be applicable only to one Gaming Facility and the Gaming
Operator named on such License.

No License shall be sold, lent, assigned or otherwise transferred.

Each Primary Management Official and Key Employee of a licensed Gaming
Activity shall possess a current and valid Tribal Class I & II Gaming License.

A License shall be issued only to a Person who qualifies under this Code.

Each Gaming Operator shall have a copy of this Code and regulations readily
available for inspection by any person at each authorized Gaming Facility.

Each Gaming Facility shall post, in a prominent place in each room where Gaming is
conducted, a sign stating the following:

This Facility is regulated by the Skokomish Indian Tribe, The Washington
State Gambling Commission and the National Indian Gaming Commission.

Each Facility that houses one or more card games shall post, in a prominent place in
each card room, the Rules of each card game played. These Rules shall notify the
public of the following:

@ The maximum rake-off percentage, time buy-in and other fees charged;
(ii) The number of raises allowed;

(iii) The monetary limit of each raise

(iv) The amount of ante; and

(v) Other rules as may be necessary.

No Class III Gaming Equipment or Supplies shall be operated, purchased, leased or
otherwise acquired by the Tribe unless that Class III Equipment or Supplies meet the
technical equipment standards as required by the Compact.

All accounting records of each tribally licensed Gaming Facility shall be kept on a
double entry system of accounting, maintaining detailed, supporting, subsidiary
records. The Operator and the Tribe shall maintain the following records for not less
than three (3) years:

(i) Revenues, expenses, assets, liabilities and equity for each location at which
Class Il and Class III Gaming is conducted;

(ii) Daily cash transactions for each Class II and Class III game at each location

at which Gaming is conducted, including but not limited to transactions
relating to each Gaming table bank, game drop box, and Gaming room bank;

GAMING CODE - 50


Each Gaming Vendor and Non-Gaming Vendor, as defined by this Code must possess a current, valid
Vendor License. A Vendor License encompasses both Gaming and Non-Gaming Vendors. The
License shall indicate whether the Vendor is Gaming or Non-Gaming. If an unlicensed Vendor sells
to, or otherwise transacts business with, facilities or enterprises covered by this Code, the TGA
Director shall impose a fine recover any loss of revenue or damages sustained.

4.02.090 Application for Vendor License

(a) All applicants for a Vendor License shall submit an application to the Commission
on such form and in such manner as the Commission may require.

(b) The application shall include the following information:

(0) The Vendor’s name, and the names and contact information for certain
Vendor Key Employees as determined by the Commission;

(ii) Current contact information, including addresses and telephone numbers;

(iii) Any business license number or numbers held by the applicant, and other
business identification information as determined by the Commission;

(iv) The nature of the business the applicant intends to conduct with the Tribe, an
agency of the Tribe, and/or any tribal enterprise; and

(v) All other information the Commission deems necessary.

(c) Each application shall be accompanied by a sworn statement that if the License is
issued, the applicant will submit to the jurisdiction of the Tribe and the Tribal Court.

(d) Each application shall be accompanied by a sworn statement that the applicant and its
employees and agents will abide by this Code and all other applicable laws.

(e) Each application shall be accompanied by a non-refundable application fee. The
amount of this fee shall be determined by the Skokomish Tribal Gaming Commission
to recover the costs of processing License applications.

(69) Each application shall be accompanied by two copies of any contract executed
between the Vendor and Gaming Facility.

4.02.091 Review Procedure for Vendor License Application

Before issuing a Vendor License, the Commission shall review the application materials, and
investigate issues of concern, if any. The Commission shall then either grant or deny the License. The
applicant shall be notified in writing of the Commission’s decision. If the Commission votes to deny
the License, it shall include in such notice the specific reasons for its decision.

4.02.092 Standards of Denial of a Vendor License

The Commission shall not License any Vendor that:

S.T.C. 4.02 GAMING CODE - 48


(gg) All net revenues of any Gaming Activity shall be used only in a manner prescribed by
this Code.

(hh) Every Gaming Operator shall comply with all applicable tribal and federal revenue
reporting laws.

(ii) Each Gaming Operator shall immediately suspend any employee who, during the

course of employment, is charged with a crime of theft, embezzlement, fraud or other
Gaming crime, or any offense related to the sale, possession, manufacture, or
transport of illegal drugs. The Gaming Operator shall also immediately notify the
Commission in writing of the name of the person and the pending charge and advise
the Commission of the outcome of the case. If the employee is convicted or pleads
no contest to the charge, the employee's employment shall be terminated.

4.02.095 Licensing Period

A License issued pursuant to this Code shall be effective for a period of one year from the date of

issuance and shall state on its face the date that the License became effective and the date that it

expires.

4.02.096 Renewals

A holder ofa License issued pursuant to this Code shall apply to the Commission for a renewal before
his original License has expired, updating all information contained in the original application.

4.02.097 License Application Fees

No application fee shall be required for a tribally owned or tribally operated Class II or Class II
Gaming Activity.

4.02.098 License Tax

No annual License tax shall be required for a tribally owned or tribally operated Class II or Class III
Gaming Operation.

4.02.099 Form of Gaming License.

Every Gaming License issued by the Commission shall include the name and address of the authorized
Licensee and the signature of an authorized officer of the Commission.

ENFORCEMENT
4.02.100 Jurisdiction
Except as provided in this Code or in the executed Class III Gaming Tribal-State Compact and its
Amendments under IGRA, Tribal Law Enforcement and the Tribal Court shall have jurisdiction over

all violations of this Code.

4.02.101 Prohibited Acts

S.T.C. 4.02 GAMING CODE - 54


Subsequent occurrences: Suspension or Revocation

(k) Has been charged with a violation of any gaming law:
Ist occurrence: Suspension or Revocation
Subsequent occurrences: Revocation

(0) Has made it such that the continued operation under its license poses a threat to the
safety of the Gaming patrons and/or the integrity of the Gaming Activity:
Ist occurrence: Fine, Suspension, or Revocation
Subsequent occurrences: Suspension or Revocation

(m) Participated in Gaming Activity not authorized by its License:
Ist occurrence: Fine or Suspension
Subsequent occurrences: Fine, Suspension, or Revocation

(n) Refused to comply with any lawful order of the Commission, the Tribal Council, the
Tribal Court, or the NIGC:
Ist occurrence: Fine or Suspension
Subsequent occurrences: Fine, Suspension, or Revocation

4.02.103 Criminal Violation

Any Person who violates or fails to comply with any provision of this Code, or who fails to comply
with any order or decision of the Commission, shall be guilty of a crime and shall be required to pay a
maximum fine of $5,000 or 1 year imprisonment, or both. Each day during which such violation or
failure to comply continues shall constitute a separate violation of this Code.

4.02.104 Civil Violation

Any Person who violates or fails to comply with any provision of this Code, or who fails or neglects to
comply with any order of the Commission, shall be liable for a civil fine not to exceed $5,000 for each
violation thereof. Each day during which such violation or failure to comply continues shall constitute
a separate violation of this Code. The amount of any such civil fine may be recovered in a civil action
in the Tribal Court.

4.02.105 Cumulative Fines

All civil fines accruing under this Code shall be cumulative, and a suit for the recovery of one fine
shall not bar or affect the recovery of any other fine, judgment, penalty, forfeiture, or damages, nor bar
the power of the Tribal Court to punish for contempt, nor bar any criminal prosecution.

4.02.106 Purpose of Civil Penalties

The civil fines imposed under this Code are intended to be remedial and not punitive, and are designed
to compensate the Tribe for the damage done to the peace, security, economy, and general welfare of
the Tribe and the Reservation, and to compensate the Tribe for costs incurred by the Tribe in enforcing
this Code. The civil fines under this Code are also intended to coerce persons into complying with this
Code and Commission regulations and not to punish such persons for violation of such laws and
regulations.

S.T.C. 4.02 GAMING CODE - 58


4.02.085 Scope of Gaming License

A License issued by the Commission shall be effective only for the Gaming Activity and location
specified in the application. Such License may be transferred only upon prior approval of the
Commission upon written request that details the proposed new Gaming Activity, its location, and
proposed Gaming Operator.

4.02.086 Posting of Licenses

Each Gaming Operator shall post its License in a conspicuous location at the Gaming Operator's
Gaming Facility. If a Gaming Operator has more than one Gaming Facility, the Gaming Operator
must obtain and post a separate License for each Gaming Facility. A Gaming Operator licensed to sell
raffle tickets outside a Gaming Facility shall carry a copy of the Gaming License under which such
Person is employed.

4.02.087 Annual Reports
Each Gaming Operator must file an annual report with the Commission and the Tribal Council
consistent with the Tribe’s Budget Code. The report shall be submitted to the Commission on the
annual report form provided by the Commission and shall include the following information:

(a) The name, address, and telephone number of the Gaming Operator;

(b) The names, addresses, and titles of its current general manager and all sub-managers;

(c) A description of each Gaming Activity that it is operated and the total gross proceeds
of each;

(d) A written copy of any changes the Gaming Operator Proposes to initiate in its rules;

(e) A statement of the specific dates and times during which the Gaming Activity will be
operated during the next license period;

(f) The name and address of the person who will be the general manager and the names
and addresses of all persons who will be the Primary Management Officials during
the next license period;

(g) A statement of any changes in the general manager or in the Primary Management
Officials or Key Employees who will operate the Gaming Activity over the next
license period;

(h) The names and addresses of any employees who the Commission may determine to
be Key Employees during review of the application;

(i) Written proof that the Gaming Operator has paid to the National Indian Gaming

Commission such fees as federal and tribal law may require it to pay, and will
continue to do so;

S.T.C. 4.02 GAMING CODE - 46


4.02.029 Organization

The Commission shall develop its own operating procedures and shall elect from within itself a
Chairman to direct meetings, a reporter to be responsible for keeping Commission minutes and
transmitting to the Tribal Council a copy of those minutes, handling correspondence and reporting
Commission decisions, and such other officers as the Commission deems advisable.

4.02.030 Removal of Members or Vacancies

(a) Removal. A Commissioner may be removed by the Council for serious inefficiency,
neglect of duty, malfeasance, misfeasance, nonfeasance, misconduct in office, or for
any conduct which threatens the honesty or integrity of the Commission or otherwise
violates the letter or intent of this Code. Except as provided below, no Commissioner
may be removed without notice and an opportunity for a hearing before the Council,
and then only after the Commissioner has been given written notice of the specific
charges at least ten days prior to such hearing. At any such hearing, the
Commissioner shall have the opportunity to be heard in person or by counsel and to
Present witnesses on his behalf. If the Council determines that immediate removal of
a Commissioner is necessary to protect the interests of the Tribe, the Council may
immediately remove the Commissioner temporarily, and the question of permanent
removal shall be determined thereafter pursuant to Commission hearing procedures.
A written record of all removal proceedings together with the charges and findings
thereon shall be kept by the Tribal Secretary. The decision of the Council upon the
removal of a Commissioner shall be final.

(b) Vacancies. If any Commissioner shall die, resign, be removed, or for any reason be
unable to serve as a Commissioner, the Council shall declare his position vacant and
shall appoint another person to fill the position. The terms of office of each person
appointed to replace an initial Commissioner shall be for the balance of any
unexpired term for such position, provided, however, that any prospective appointee
must meet the qualifications established by this Code.

4.02.031 Ethics

The Tribe recognizes that the duties of the Commission include making important decisions on highly
sensitive issues. As such, the Tribe has determined that Commissioners shall be held to extremely
high ethical standards. Prior to taking their positions on the Commission, Commissioners shall agree
to be bound by the following principles:

(a) Commissioners shall not hold financial interests that conflict with the conscientious
performance of their duties as regulators.

(b) Commissioners shall not engage in financial transactions using nonpublic
information or allow the improper use of such information by others on their behalf
to further any private interest.

(c) Commissioners shall not solicit or accept any gift or other item of monetary value,

including complimentary items or services from any person or entity seeking official
action or inaction from, doing business with, or conducting activities regulated by the

S.T.C. 4.02 GAMING CODE - 18


(hy

@

4.02.066

‘A false statement on any part of your application may be grounds for not
hiring you, or for firing you after you begin work. Also, you may be
punished by fine or imprisonment. (U.S. Code, Title 18, Section 1001)’

Primary Management Officials and Key Employees employed at the time of
the adoption of this Code, shall sign a statement that contains the above
notice regarding false statements.

Each application for a Class II & I Gaming License shall be accompanied by a non-
refundable application fee. The amount of this fee shall be determined by the
Skokomish Tribal Gaming Commission to recover the costs of processing Gaming
License applications.

The disclosure of an applicant's social security number (SSN) is voluntary. However,
failure to supply a SSN may result in errors in processing the application.

Review Procedure for Class II & II Gaming License Application

Before issuing a Class II & I Gaming License, the Commission shall:

(a)

()

(d)

()

4.02.067

S.T.C. 4.02

Perform or arrange to have performed the necessary background investigation of the
applicant required by this Code. Such investigation shall include contacting each
reference provided in the application and taking all appropriate steps to verify the
accuracy of information contained in the application, and arranging for the Tribal
Law Enforcement Agency to take the applicant's fingerprints and forward them
directly to the National Indian Gaming Commission to be forwarded to the Federal
Bureau of Investigation, National Criminal Information Center, for a criminal records
search. There shall be a written report of the findings and conclusions of the
investigation. The Commission shall then review the findings and conclusions and
either grant or deny the License. The applicant shall be notified in writing of the
Commission's decision. If the Commission votes to deny the License, it shall include
in such notice the specific reasons for its decision and shall notify the NIGC of the
decision.

For Primary Management Officials and Key Employees, forward to the National
Indian Gaming Commission a copy of the application, the results of the background
checks performed, and the Commission's findings and decision.

All applications, background checks, and Commission decisions shall be retained in
the Commission files for as long the Licensee is employed at the Facility or for a
period of 10 years, whichever is greater.

Following the termination of a Primary Management Official or Key Employee, the
Commission shall retain the applications and Background Investigations reports for
inspection by the NIGC for at least three years from the date of termination.

All Class III Gaming Licenses shall be certified by the Washington State Gambling
Commission as required by the Class III Gaming Tribal-State Compact.

Standards of Denial for a Class I & II Gaming License

GAMING CODE - 36


3 ren 4 ss 7 &o

SKOKOMISH TRIBAL GAMING COMMISSION
RESOLUTION NO. 09-02

A RESOLUTION TO REQUEST A MODIFICATION TO SKOKOMISH GAMING
CODE SECTION 4.02.067 “Standards of Denial for a Class II & IIT Gaming License”

WHEREAS, the Skokomish Indian Tribe is a federally recognized Indian tribe organized under
its Constitution and by-laws first adopted on April 2, 1938 and approved by the Secretary of the
Interior May 3, 1938, amended January 15, 1980 as approved by the Secretary of the Interior
March 17, 1980; and

WHEREAS, pursuant to Article IV, Section | and Article V, Sections (d), (e), and (j) of the
Constitution, the Skokomish Tribal Council is the governing body of the Skokomish Indian tribe
which has the authority to charter and regulate political subdivisions; license and regulate the
conduct of business activities within the Tribe’s jurisdiction; and to enact laws and ordinances to
maintain order and to protect the safety and welfare of all persons within the Skokomish Tribe’s
jurisdiction; and to provide for the enforcement of laws and ordinances of the Skokomish Tribe;
and

WHEREAS, the Skokomish Tribal Council enacted the Skokomish Gaming Code by Resolution
No. 95-103 (October 18, 1995) and amended by Resolution Nos. 96-12 (February 28, 1996), 00-
51 (May 18, 2000), 01-63 and 01-64 (May 16, 2001), 01-132 (October 18, 2001), 02-153
(December 11, 2002), 04-96 (July 28, 2004), 05-20 (February 16, 2005), and 06-63 (June 7,
2006), and Revised and Restated by Resolution No. 07-144 (October 31, 2007), and amended by
Resolution No. 07-153 (November 7, 2007); in order to satisfy those purposes as specified in
S.T.C. §4,02.002; and

WHEREAS, Section 4.02.080 of the Skokomish Gaming Code establishes the creation of a
Tribal Gaming Commission, a governmental subdivision of the Tribe, to carry out the purposes
of the Skokomish Gaming Code; and

WHEREAS, the Skokomish Tribal Gaming Commission recognizes that the Skokomish
Gaming Code Section 4.02.002(e) which states that one of the purposes of the code is to
“Promote and strengthen tribal economic development and self-determination and enhance
employment opportunities for its members.” and

WHEREAS, the Skokomish Tribal Gaming Commission finds it is in the best interest of the
Tribe to revise the Skokomish Gaming Code to enhance employment opportunities for Tribal
members who have made mistakes in the past as long as the assets of the Tribe and Casino are
still being protected; and


(d) Be accompanied by appropriate numbered findings of fact and conclusions of law
and a statement from the presiding officer of the credibility of the witnesses, and
that the decision is based, all or in part, upon such findings;

(e) Include the reason or reasons for the particular order or remedy afforded.
Findings shall be accompanied by a concise and explicit statement of the
underlying evidence of record to support the findings;

( Reference specific authority or rules and provisions considered or relied upon.
4.02.047 Judicial Review

The Commission’s decision may be appealed to the Tribal Court. The Court’s review should be
based on and limited to a review of the Commission’s record of decision. The Court may vacate a
decision made by the Commission only if it is arbitrary and capricious or contrary to applicable
law.

4.02.048 Computation of Time

For the purposes of this section, in computing any period of time prescribed or allowed by
Commission Regulation, an order of the Director or Commission, or by an applicable statute, the
day of the act, event, or default after which the designated period of time begins to run is not to be
included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday
or a legal holiday, in which event the period runs until the end of the next day which is not a
Saturday, Sunday, or a holiday. This section shall not apply to periods of License suspension.

RULEMAKING
4.02.049 Notice of Rulemaking

In Adopting Rules under this Code, the Commission shall, before adopting any rule, except an
Emergency Rule or a Housekeeping Rule, do each of the following:

(a) Publish a Notice of Proposed Rulemaking at least twenty-five (25) calendar days
before the expiration of the public hearing and comment period for the proposed
rulemaking action. In addition to publication, a copy of the notice shall be sent via
first-class mail or hand delivered on or before the date of publication to any
existing Licensee or pending applicant for a License whose rights or duties will be
substantially affected by the Proposed rule.

(b) Conduct, on the date and at the time and place designated in the notice, a public
hearing at which any person affected by the Proposed Rule, including
organizations, may appear and be heard in person, by attorney, or both, and may
present the person’s or organization’s position or contentions orally or in writing.
The hearing date should be the last day of the public hearing and comment period.

4.02.050 Public Hearing

The Public Hearing for rulemaking except those given in Section 4.02.049(b) above:

S.T.C. 4.02 GAMING CODE - 29


The Tribe, on behalf of the Commission, shall take all necessary steps to acquire recognition of the
Commission as a political subdivision of the Tribe, recognized by all branches of the United States
Government as having been delegated the right to exercise one or more substantial governmental
functions of the Tribe.

4.02.019 Sovereign Immunity of the Commission

The Commission is hereby clothed with all the privileges and immunities of the Tribe, except as
specifically limited by this Title or other tribal law, including sovereign immunity from suit in any
tribal, federal, or state court. Except as provided in Section 4.02.021, nothing in this Code nor any
action of the Tribe or the Commission shall be deemed or construed to be a waiver of sovereign
immunity from suit of the Commission, or to be a consent of the Tribe or the Commission to the
jurisdiction of the United States or of any state or any other tribe with regard to the business or affairs
of the Tribe or the Commission to any cause of action, case, or controversy, or to the levy of any
judgment, lien or attachment upon any property of the Tribe or the Commission, or to be a consent of
the Tribe or the Commission to suit in respect to any Indian land, or to be a consent of the Tribe or the
Commission to the alienation, attachment, or encumbrance of any such land.

4.02.020 Sovereign Immunity of the Tribe

All inherent sovereign rights of the Tribe as a federally recognized Indian tribe with respect to the
existence and activities of the Commission are hereby expressly reserved, including sovereign
immunity from suit in any tribal, federal or state court. Except as provided in Section 4.02.021,
nothing in this Code nor any action of the Commission shall be deemed or construed to be a waiver of
sovereign immunity from suit of the Tribe, or to be a consent of the Tribe to the jurisdiction of the
United States or of any state or of any other tribe with regard to the business or affairs of the
Commission or the Tribe, or to be a consent of the Tribe to any cause of action, case, or controversy,
or to the levy of any judgment, lien, or attachment upon any property of the Tribe, or to be a consent to
suit in respect to any Indian land, or to be a consent to the alienation, attachment, or encumbrance of
any such land.

4.02.021 Waiver of Sovereign Immunity of the Commission

Sovereign immunity of the Commission may be waived only by express resolutions of both the
Commission and the Tribal Council after consultation with the Tribe's attorneys. All waivers of
sovereign immunity must be preserved by resolution of the Commission and the Tribal Council of
continuing force and effect. Waivers of sovereign immunity are disfavored and shall be granted only
when necessary to secure a substantial advantage or benefit to the Commission. Waivers of sovereign
immunity shall not be general but shall be specific and limited as to duration, grantee, transaction,
property, or funds, if any, of the Commission subject thereto, court having jurisdiction pursuant
thereto, and law applicable thereto. Neither the power to sue and be sued provided in nor any express
waiver of sovereign immunity by resolution of the Commission shall be deemed a consent to the levy
of any judgment, lien, or attachment upon property of the Commission other than property specifically
pledged or assigned, or a consent to suit in respect of any land within the exterior boundaries of the
Reservation or a consent to the alienation, attachment, or encumbrance of any such land.

4.02.022 Credit of the Tribe or Commission
Nothing in this Code or any activity of the Commission shall implicate or any way involves the credit

of the Tribe or the Commission.

S.T.C. 4.02 GAMING CODE - 15


(p)

(q)

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(s)

()

(u)

(vy)

(w)
(x)

(y)

2)

(aa)

S.T.C. 4.02

To grant, revoke, suspend, restrict, expand, and approve or disapprove any
application for any license under this Code..

To consult with and make recommendations to the Tribal Council regarding changes
in tribal Gaming laws and policies.

To examine under oath, either orally or in writing, in hearings or otherwise, any
person or agent, officer or employee of any person, or any other witness, with respect
to any matters related to this Code, including enforcement of tribal Gaming laws,
regulations, and policies, and to compel by subpoena the attendance of witnesses and
the production of any books, records, and papers with respect thereto.

When necessary or appropriate, to request the assistance and utilize the services of
the courts, law enforcement and government officials and agencies, and private
parties in exercising its powers and carrying out its responsibilities.

To delegate to an individual member or members of the Commission or Commission
staff, such of its functions as may be necessary to administer this Code efficiently;
provided that the Commission may not re-delegate its power to exercise any
substantial governmental function of the Tribe or its power to promulgate rules and
regulations; and provided further that the Commission may not delegate to anyone
the power to permanently revoke a tribal Gaming license.

To permanently close, after notice and hearing, any game or games which are
operating in violation of tribal law.

To sue or be sued in courts of competent jurisdiction within the United States,
subject to the provisions of this Code and other tribal laws relating to sovereign
immunity; provided that no suit shall be brought by the Commission without the prior
explicit written approval of the Tribal Council.

To use the seal of the Tribe with the approval of the Tribal Council.

To sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of
all or any part of its personal property and assets. Real property is expressly excluded
from this authority.

With the prior permission of the Tribal Council, to borrow money and to make,
accept, endorse, execute and issue bonds, debentures, promissory notes, guarantees,
and other obligations of the Commission for moneys borrowed, or in payment for
property acquired or for any of the purposes of the Commission and to secure
payment of any obligations by secured interest, mortgage, pledge, deed, indenture,
agreement, or other instrument of trust or by other lien upon, assignment of, or
agreement in regard to all or any part of the property, rights, or privileges of the
Commission.

To arbitrate, compromise, negotiate, or settle any dispute to which it is a party
relating to the Commission's authorized activities.

To enter into, make, perform, and carry out any agreement, partnership, joint venture

GAMING CODE - 21


The Tribal Council shall appoint members to the Commission during the first regular Tribal
Council meeting in November. The Council's appointment of any Commission member shall
be by resolution

4.02.025
(a)
(b)

(©)

4.02.026

Commissioner Prohibitions
No member of the Tribal Council may serve on the Commission.

Commissioners are prohibited from Gaming at any Gaming Facility under the

jurisdiction of the Tribe.

Commissioners are prohibited from accepting complimentary items from the
Gaming Operation.

Commissioner Required to Display Badge

Upon being appointed to the Commission and successful performance of a background check, a
Commissioner shall be issued a badge which must be displayed on the Commissioner’s person at all
times when on Commission business or in the “back of the house” at the Gaming Facility. The
Commissioner Badge shall display the Commissioner’s name, term of Gaming Commission
membership and clear indication that badge holder is a Commissioner.

4.02.027

(a)

(b)

(©
4.02.028

(a)

(b)

(©)

(d)

(e)

S.T.C. 4.02

Term of Office

Each Commissioner shall serve a four year term, provided the first rotation shall have
one appointed Commissioner with a two year term, two appointed Commissioners
with three year terms and two appointed Commissioners with four year terms.

The term of office of the Commission shall begin during the first official
Commission meeting after the first regular Tribal Council meeting in November.

No member of the Commission shall serve more than five terms
Meetings
Regular Meetings. The Commission shall hold at least one regular monthly meeting.

Special Meetings. Special meetings may be called at the request of the Tribal
Council, the Chairman of the Commission or 3 or more members of the Commission.

Compensation of Commissioners. An honorarium may be paid for attendance at each
meeting.

Quorum. A quorum for all meetings shall consist of two members and the Chairman
or Acting Chairman.

Voting. All questions arising in connection with the action of the Commission shall

be decided by majority vote. The Chairman of the Commission shall only be entitled
to vote to break a tie.

GAMING CODE - 17


(b)
(©)
4.02.051

(a)

(b)

(@)

4.02.052

Shall be held on Skokomish Tribal Lands. The Commission shall make effort to
allow all interested parties to make a full presentation of their oral comments, but
the Commission may, at its discretion, limit the time available to each commenter
to whatever extent is necessary to conclude the meeting by the end of the business
day. The Commission may, if necessary and at its discretion, extend a hearing for
an additional day.

May be held as a part of a regular or special meeting of the Commission.
Shall be recorded or detailed minutes shall be taken.
Review and Consideration of All Submitted Comments

Interested parties may submit written comments during the Public hearing and
comment period. The comments must be received by the Commission before the
comment period ends. Oral comments may be made in lieu of, or in addition to,
written comments. The oral comments may be made only at the scheduled
hearing.

If substantial changes to the proposed rule are made after the hearing and review
of the submitted comments, a Supplemental Notice will be issued. An additional
comment period shall be open for at least twenty-five (25) days. An additional
hearing may be held at the discretion of the Commission.

If substantial changes to the proposed rule are not made, or they have been made
and the additional comment period has passed and no additional substantial
changes are made, then the Commission shall vote on the Final Rule. If the Final
Rule passes the Commission, the Commission shall submit the final rule to the
Tribal Council for the Council’s consideration and vote.

If the Tribal Council passes the Final Rule, then the Commission shall publish the
Rulemaking Order of Adoption. The Order of Adoption must contain an
Effective Date, and the Effective Date must be at least ten (10) days after the
Adoption date.

Housekeeping Rulemaking

The Commission may hold a Public Hearing for a proposed Housekeeping rule at its discretion. If
the Commission chooses to hold a Public Hearing, the hearing is subject to the requirements
contained herein.

402.053

Emergency Rulemaking Criteria

Emergency Rulemaking is appropriate under the following circumstances:

(a)

S.T.C. 4.02

The circumstances call for immediate action to protect the public safety, general
welfare, or the integrity of the Gaming Operation, and observing the notice and
hearing requirements of regular rulemaking would be contrary to the public
interest; or

GAMING CODE - 30


(fff) “Vendor” means any Person or enterprise that sells goods or services under this
Code, and the employees and agents of that Person or enterprise.

(ggg) "Wager" means the bet made or consideration or value given by a player in any game.
(hhh) “WSGC” means the Washington State Gambling Commission

GENERAL PROVISIONS

4.02.006 Authority and Sovereign Powers and Responsibilities

This Code is enacted pursuant to the inherent sovereign powers of the Tribe and the powers expressly
delegated to the Tribal Council by Article V of the Tribal Constitution.

4.02.007 Application of Federal Policy

In 1970, President Nixon announced the policy of the United States government to promote self-
determination for Indian tribes. At the heart of this policy is a commitment by the federal government
to foster and encourage tribal self-government, economic development, and self-sufficiency. That
commitment was signed into law in 1975 as the Indian Self-Determination and Education Assistance
Act, Public Law 93-638, 88 Stat. 2203, 25 U.S.C. §§450-450n. In 1983 President Reagan reaffirmed
that commitment in his Indian policy statement, encouraged tribes to reduce their dependence on
federal funds by generating more of their own revenues, and pledged to assist tribes in that endeavor.

In 1988 the federal commitment to promote tribal economic development, tribal self-sufficiency, and
strong tribal government was expressly legislated in the Indian Gaming Regulatory Act ("IGRA"),
Public Law 100-497, 102 Stat. 2426, 25 U.S.C. §§ 2701, et seq. (1988), which recognized the inherent
sovereign right of tribes to operate and regulate on Indian Lands Gaming which is not specifically
prohibited by federal law and is conducted within a state which does not, as a matter of criminal law
and public policy, prohibit such Gaming, and provided a federal statutory basis for operation and
regulation of Indian Gaming.

4.02.008 Skokomish Tribal Policy of Self-Government

The Tribe is firmly committed to the principle of tribal self-government. Consistent with federal
policy, tribal government provides a wide range of public services on the Reservation, including
general governmental services, the maintenance of peace and good order, the establishment of
educational systems and programs, and the promotion and regulation of economic activities within the
sovereign jurisdiction of the Tribe.

4.02.009 Title, Repeal of Prior Laws, and Effect of Repeal

This Code may be cited as the Skokomish Gaming Code. The Code shall be appropriately inserted in
the Skokomish Tribal Code.

All ordinances of the Tribe and all titles, chapters, and sections of the Tribal Code that pertain to

Gaming and are in effect as of the effective date of this Code are hereby repealed, and all other tribal
laws or parts thereof inconsistent with the provisions of this Code are hereby repealed.

S.T.C. 4.02 GAMING CODE - 12


(0)

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4.02.102

To operate, use, or make available to the public any illegal Gaming Apparatus,
material, or Equipment.

To sell or hold out for sale or transport into or out of the jurisdiction of the Tribe any
illegal Gaming Apparatus, material, or Equipment.

To assist or allow a person who is under age to participate in any Gaming Activity.

To possess any illegal narcotics or controlled substances on any Licensed Gaming
Facility.

To steal or attempt to steal funds or other items of value from any Gaming Facility or
from the Commission.

To conspire with or induce any person to violate any of the provisions of this Code or
any tribal or federal law.

For an Operator or any of his employees or agents to engage in any act, practice, or
course of operation which could result in a fraud or deceit upon any Person.

To use bogus or counterfeit chips or charitable Gaming tickets, or to substitute or use
any game, cards, charitable Gaming tickets, or Gaming Equipment that have been
marked or tampered with.

To employ or have on the Reservation any device to facilitate Cheating in any game
of chance, except that which may be utilized for training purposes by the
Commission only.

To knowingly use any fraudulent scheme or technique, or to solicit, provide, or
receive inside information about any Gaming Activity with the intent of benefiting

any person.

To take, solicit, or encourage any action which undermines the integrity of any game
of chance.

Table of Penalties

The following table of penalties is provided as guidance to the selection of the appropriate
disciplinary action to be taken for select offenses. The table is not all-inclusive and does not
consider the extenuating circumstances which may apply to any one particular case. The table
is a list of actions most addressed; it is not a complete listing, but is rather a guide designed to
convey the types of misconduct potentially worthy of licensing action. Licensing action may
be initiated when the Licensee:

(a)

(b)

S.T.C. 4.02

Withheld pertinent information or made a false statement on his or her application:
1st occurrence: Fine
Subsequent occurrences: Suspension or revocation

Participated in Gaming Activity that was not authorized by any Tribal Gaming

GAMING CODE - 56


4.02.106 Purpose of Civil Penalties

4.02.107 Civil Action for Penalties
4.02.108 Seizure and Forfeiture of Property
4.02.109 Reporting Offenders
OPERATION OF TRIBALLY OWNED OR TRIBALLY OPERATED GAMES
4.02.110 Management by a General Manager
4.02.111 Use of Net Revenues of Tribally Owned or Tribally Operated
Gaming Activities
4.02.112 Maintenance of Records
402.113 Audit Requirements
4.02.114 Management Contracts
4.02.115 Additional Requirements for Operation of Tribally Owned or
Tribally Operated Games
AUTHORIZED GAMES AND INTERNAL CONTROL STANDARDS
4.02.116 Authorized Games
4.02.117 Internal Control Standards

PATRON DISPUTE RESOLUTION
4.02.118 Patron Dispute Resolution

FINDINGS, PURPOSES AND POLICY
4.02.01 Findings
The Skokomish Tribal Council on behalf of the Skokomish Tribe finds that:
(a) Tribal regulation and control of Gaming Activity within the jurisdiction of the
Skokomish Indian Tribe is essential for the protection of public health and welfare,
and the interests of the Tribe and the residents of and visitors to the tribal community.

(b) The Tribe has the legal authority to license and regulate all Gaming Activity, not
specifically prohibited by federal law, within the jurisdiction of the Tribe.

(c) Properly licensed and regulated Gaming Activities conform to announced federal
policy promoting Indian self-government and Indian tribal economic self-sufficiency.

(d) It is essential that the Tribe, through its Tribal Council, regulate Gaming in a manner
commensurate with applicable federal and tribal law and policy.

(e) The present needs of the Tribe include increased employment, job and skills training,
housing, quality health care, improved nutrition, educational opportunities, social
services, law and order, public safety and judiciary, and community and economic
development; needs that are not adequately addressed by present tribal, federal and
state programs.

( Tribal operation and licensing of Gaming Activities on the Reservation are
appropriate means of generating revenue to address the needs of the Tribe.

S.T.C. 4.02 GAMING CODE - 4


regardless of method of delivery. Documents may be transmitted for filing by
hand-delivery, U.S. mail, or courier. The Director will not accept documents
transmitted electronically or by facsimile. The Director shall stamp all documents
with the date and time of receipt. Delivery of documents to any office of the
Commission other than the Director’s office when said office is not occupied by a
Commission employee who can personally accept the documents shall not
constitute a lawful filing of papers for any matter under the jurisdiction of the
Commission.

4.02.044 Informal Proceedings—Discovery Limitations

In all proceedings before the Commission, discovery requests to the Director shall be
limited to requests for production of written reports and supporting documents relevant to
the charges. Interrogatories and depositions shall not be allowed.

4.02.045 Official Notice

(a) Matters of Law. The Director and the Commission, upon request made before or
during a hearing, or upon its own motion will officially notice:

(0) Federal Law. The Constitution; congressional acts, resolutions, records,
journals and committee reports; decisions of federal courts and
administrative agencies; executive orders and proclamations; and all rules,
orders and notices published in the Federal Register.

(ii) Tribal Law. The Constitution of the Skokomish Tribe; the Compact; the
Skokomish Tribal Code; all duly enacted ordinances, regulations and
resolutions of the Tribal Council; and resolutions of the General Council.

(iii) State Law. The Constitution of the State of Washington; acts, resolutions,
records, journals, and committee reports of the legislature; decisions of
the courts and administrative agencies of the State of Washington;
executive orders and proclamations by the governor; and all rules, orders
and notices filed with the Code reviser.

(iv) Commission Organization. The Commission’s organization
administration, officers, personnel, and official publications.

(b) Material Facts. In the absence of controverting evidence, the Director and
Commission, upon request made before or during a hearing, or upon its own
motion, may officially notice:

@ Commission Proceedings. The pendency and disposition of any
proceeding then pending before or concluded by the Agency or
Commission; and the issues and position of the parties in any other
proceeding.

(ii) Business Customs. General customs and practices followed in the
transaction of business;

S.T.C. 4.02 GAMING CODE - 27


special or punitive damages, or damages for mental distress.

S.T.C. 4.02 GAMING CODE - 63


4.02.035 Commission Regulations

(a) Commission Regulations necessary to carry out the orderly performance of its duties
and powers shall include, but shall not be limited to:

(i) Internal operational procedures of the Commission and its staff;

(ii) Interpretation and application of this Code as may be necessary to carry out
the Commission's duties and exercise its powers;

(iii) A regulatory system for all Gaming Activity, including accounting,
contracting, management, and supervision;

(iv) The findings of any reports or other information required by or necessary to
implement this Code; and

(vy) The conduct of inspections, investigations, hearings, enforcement actions,
and other powers of the Commission authorized by this Code.

(b) No regulation of the Commission shall be of any force or effect unless it is adopted
by the Commission by written resolution and subsequently approved by a resolution
of the Tribal Council and both resolutions filed for record in the Office of the Tribal
Attorney.

(c) The Tribal Court and any other court of competent jurisdiction shall take judicial
notice of all Commission Regulations adopted pursuant to this Code.

4.02.036 Right of Entrance; Inspection

The Commission and duly authorized officers and employees of the Commission, during regular
business hours, may enter upon any premises of any Gaming Operator or Gaming Facility for the
purpose of making inspections and examining the accounts, books, papers, and documents of any such
Gaming Operator or Gaming Facility. Such Gaming Operator shall facilitate such inspection or
examinations by giving every reasonable aid to the Commission and to any properly authorized officer
or employee. The results of such inspection shall be duly reported by the Commission and a copy of
such report given to the Gaming Operator.

4.02.037 Investigations

The Commission, upon complaint or upon its own initiative or whenever it may deem it necessary in
the performance of its duties or the exercise of its powers, may investigate and examine the operation
and premises of any person who is subject to the provisions of this Code. In conducting such
investigation, the Commission may proceed either with or without a hearing as it may deem best, but it
shall make no order without affording any affected party notice and an opportunity for a hearing
pursuant to Commission regulations.

4.02.038 Bank Account for Gaming Facility

‘The Tribal Council shall ensure that the Tribe opens a separate bank account for each tribally owned
or Gaming Activity, and all money of such Facility shall be deposited in that account. The Tribal

S.T.C. 4.02 GAMING CODE - 24


SEP 7 7 2m
SKOKOMISH GAMING CODE

A law to authorize, license and regulate Gaming within the jurisdiction of the Skokomish
Indian Tribe of Washington.

Adopted by Resolution No. 95-103 (October 18, 1995)
Amended by Resolution No. 96-12 (February 28, 1996)
Amended by Resolution No. 00-51 (May 18, 2000)
Amended by Resolution No. 01-63 (May 16, 2001)
Amended by Resolution No. 01-64 (May 16, 2001)
Amended by Resolution No. 01-132 (October 18, 2001)
Amended by Resolution No. 02-153 (December 11, 2002)
Amended by Resolution No. 04-96 (July 28, 2004)
Amended by Resolution No. 05-20 (February 16, 2005)
Amended by Resolution No. 06-63 (June 7, 2006)

Revised and Restated by Resolution No. 07-144 (October 31, 2007)
Amended by Resolution No. 07-153 (November 7, 2007)
Revised and Restated by Resolution No. 08-004 (January 14, 2008)

Amended by Resolution No. 09-136 (September 2. 2009)

TABLE OF CONTENTS
FINDINGS, PURPOSES AND POLICY
4.02.001 Findings
402.002 Purposes
4.02.003 Tribal Policy of Self-Government
4.02.004 Tribal Gaming Policy
GENERAL PROVISIONS
4.02.005 Definitions
4.02.006 Authority and Sovereign Powers and Responsibilities
4.02.007 Application of Federal Policy
4.02.008 Skokomish Tribal Policy of Self-Government
4.02.009 Title, Repeal of Prior Laws, and Effect of Repeal
4.02.010 Classes of Gaming
4.02.011 Construction
4.02.012 Severability
TRIBAL GAMING COMMISSION
4.02.013 Establishment
4.02.014 Purpose
4.02.015 Location and Place of Business
4.02.016 Duration
4.02.017 Attributes
4.02.018 Recognition as a Political Subdivision of the Tribe
4.02.019 Sovereign Immunity of the Commission
4.02.020 Sovereign Immunity of the Tribe
4.02.021 Waiver of Sovereign Immunity of the Commission
4.02.022 Credit of the Tribe or Commission
4.02.023 Assets of the Commission

S.T.C. 4.02 GAMING CODE - 1


NOW THEREFORE BE IT RESOLVED, that the Skokomish Tribal Gaming Commission
requests that the Skokomish Tribal Council revise Skokomish Tribal Gaming Code section
4.02.067(b) and (c) to read:

(b) Has been convicted of or entered a plea of no contest to a gambling offense, theft,
embezzlement, fraud or misrepresentation, unless 7 years have passed since the offense,
and the person is a member of a federally recognized tribe who has been determined by
the Tribe to be a person who is not likely again to engage in any offensive or criminal
course of conduct

(c) Has been convicted of or entered a plea of guilty or no contest to any other offense
related to honesty, violence, or drugs; this provision shall not apply if that person has
been pardoned by the Governor of the State where the conviction occurred or, ifa
member of a federally recognized tribe, has been determined by the Tribe to be a person
who is not likely again to engage in any offensive or criminal course of conduct and the
public good does not require that the applicant be denied a license as a Key Employee or
Primary Management Official; or

BE IT FURTHER RESOLVED, that this recommendation shall be submitted to the Tribal
Council for consideration and vote at their next regular meeting.

*** CERTIFICATION***

Bid, Adieu cou Ce
Lf) SK (Ades > _, Chairperson of the Skokomnist Tribal Gaming Commission,
: 7 04-02
hereby certify that the above foregoing Resolution No. 08-04-was adopted at a meeting of the
Skokomish Tribal Gaming Commission held on August 4", 2009, at which a quorum was present

by a vote of _3 FOR, © AGAINST, C/ ABSTAINING.

ATTEST:

Chairperson Ss
Skokomish Tribal Gaming Commission


Repeal of this Code or any portion thereof shall not have the effect of reviving any prior tribal law
theretofore repealed or suspended.

4.02.010

Classes of Gaming

There are three classes of Gaming on Indian Lands under this Code:

(a)

(b)

©)

4.02.011

"Class I Gaming” means social Gaming solely for prizes of minimal value or
traditional forms of Indian Gaming engaged in by individuals as a part of or in
connection with tribal ceremonies or celebration.

"Class II Gaming" means:

(6) The game of chance commonly known as bingo (whether or not electronic,
computer, or other technologic aids are used in connection therewith), which
is played for prizes, including monetary prizes, with cards bearing numbers
or other designations, in which the holder of the card covers such numbers or
designations when objects similarly numbered or designated are drawn or
electronically determined, and in which the game is won by the first person
covering a previously designated arrangement of numbers or designations on
such cards, including (if played at the same location) pull-tabs, lotto, punch.
boards, tip jars, instant bingo, and other games similar to bingo; and

(ii) All card games, including those pot and wager limits, operated by the Tribe
prior to May 1, 1988; and

(iii) All non-banked card games explicitly authorized or not explicitly prohibited
by the laws of the State and which are played at any location in the State, if
played in conformity with State laws and regulations regarding hours or
periods of operation of such card games or limitations on wagers or pot size
in such card games.

"Class I Gaming" means all forms of Gaming that are not Class I or Class I
Gaming.

Construction

In construing the provisions of this Code, unless the context otherwise requires, the following rules

shall apply:

(a)

(b)
(c)

(ad)

S.T.C. 4.02

This Code shall be liberally construed to effect its purpose and to promote substantial
justice.

Words in the present tense include the future and past tenses.

Words in the singular number include the plural, and words in the plural number
include the singular.

Words of the masculine gender or neuter include masculine and feminine genders
and the neuter.

GAMING CODE - 13


4.02.066 Review Procedure for Class II & III Gaming License

4.02.067 Standards of Denial of a Class II & III Gaming License
4.02.068 Scope of Class II & III Gaming License
4.02.069 Requirement to Produce License Upon Request
4.02.070 Permanent License Revocation of Class I & III Gaming License
4.02.071 Temporary Suspension of Class II & II Gaming Licenses
4.02.072 Tribal Non-Gambling Related Offenses
Non-Gaming Employee Licenses
4.02.073 Current and Valid License Required
4.02.074 Application for Non-Gaming Employee License
4.02.075 Review Procedure for Non-Gaming Employee License
4.02.076 Scope of Non-Gaming Employee License
4.02.077 Requirement to Produce License Upon Request
4.02.078 Permanent License Revocation of Non-Gaming Employee License
4.02.079 Temporary Suspension of Non-Gaming Employee License
4.02.080 Tribal Non-Gambling Related Offenses
Facility and Operations Licenses
4.02.081 Criteria Which a Gaming Facility Must Meet
4.02.082 License Application Fees
4.02.083 License Tax
4.02.084 Form of Gaming License
4.02.085 Scope of Gaming License
4.02.086 Posting of Licenses
4.02.087 Annual Reports
4.02.088 Procedure to Remedy Gaming License Violation
Vendor Licenses
4.02.089 Current and Valid Gaming or Non-Gaming Vendor License Required
4.02.090 Application for Vendor License
4.02.091 Review Procedure for Vendor License Application
4.02.092 Standards of Denial of a Vendor License
4.02.093 Revocation or Suspension of a Vendor License and Other Penalties
Provisions of General Applicability to Gaming Licensees
4.02.094 Provisions of General Applicability to All Gaming Operators
4.02.095 Licensing Period
4.02.096 Renewals
4.02.097 License Application Fees
4.02.098 License Tax
4.02.099 Form of License
ENFORCEMENT
4.02.100 Jurisdiction
4.02.101 Prohibited Acts
4.02.102 Table of Penalties
4.02.103 Criminal Violation
4.02.104 Civil Violation
4.02.105 Cumulative Fines

S.T.C. 4.02 GAMING CODE - 3


(d)

(e)

109)

(g)

(h)

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(ky)

4.02.032

Commissioner’s organization, or whose interests may be substantially affected by the
performance or nonperformance of the Commissioners’ duties.

Commissioners shall make no unauthorized commitments or promises of any kind
purporting to bind the Tribe.

Commissioners shall not use their positions for private gain.

Commissioners shall act impartially, in accordance with all relevant and applicable
Tribal, Federal and State laws, and shall not give preferential treatment to any private
organization or individual, including any persons related to Commissioners.

Commissioners shall ensure that Tribal property and Gaming assets shall be properly
segregated and safeguarded, and that such property and assets shall not be used for
unauthorized activities.

Commissioners shall not engage in outside employment or activities which conflict
with their official duties and responsibilities.

Commissioners shall disclose waste, fraud, abuse and corruption to appropriate
authorities.

Commissioners shall endeavor to avoid any actions creating the appearance that they
are violating the law or the ethical standards listed herein.

Commissioners shall disclose any real or apparent financial or personal conflicts. If
there is a real conflict or the appearance of one, the member shall not take part in any
decision related to the conflict.

Powers of the Commission

In furtherance, but not in limitation, of the Commission's purposes and responsibilities, and subject to
any restrictions contained in this Code or other applicable law, the Commission shall have and is
authorized to exercise by majority vote and through an issued resolution the following powers in
addition to all powers already conferred by this Code:

(a)

(b)

(©)

(@)

S.T.C. 4.02

To regulate and inspect all Gaming activities, regulate and protect all Gaming assets
within the jurisdiction of the Tribe.

To promote the full and proper enforcement of this Code and other applicable law
regarding Gaming Activities within the jurisdiction of the Tribe.

To enact and enforce such rules and regulations regarding its activities and governing
Commission internal affairs as the Commission may deem necessary and proper to
effectuate the powers granted by this Code and the powers granted and duties
imposed by applicable law.

To publish and distribute copies of this Code and Commission Rules and any

Council, Commission, or Tribal Court decisions, including resolutions, regarding
Gaming matters.

GAMING CODE - 19


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Ve comm?

SEP 2 5 2009

Amy Pivetta Hoffman

Tribal Attorney

Skokomish Indian Tribe

N. 80 Tribal center road
Skokomish Nation, WA 98584

RE: Amendment to the Skokomish Gaming Code
Dear Ms. Hoffman:

This letter responds to your request to the National Indian Gaming Commission (NIGC) to
review and approve the Skokomish Indian Tribe’s (Tribe) amendment to its Gaming Code
(Amendment). The Skokomish Tribal Council adopted the Amendment by Resolution No. 09-
136 adopted on September 2, 2009, and the NIGC received the ordinance on September 17,
2009.

The Ordinance is consistent with the requirements of the Indian Gaming Regulatory Act
(IGRA) and NIGC regulations, and it is therefore approved. It is important to note that
the Ordinance is approved for gaming only on Indian lands, as defined in the IGRA, over
which the Tyibe tas Uyisdiction. 25 U.S.C. § 2703(4); 25 C.F.R. § 502.12

Thgatk you for youysubmission. If you have any questions or require assistance, please
Ontact Melissa Schlichting in the Office of the General Counsel, at 202-632-7003.

Sincerely,

NATIONAL HEADQUARTERS — 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.GoV

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


4.02.075 Review Procedure for Non-Gaming Employee License
Before issuing a Non-Gaming Employee License, the Commission shall:

(a) Perform or arrange to have performed the necessary background investigation of the
applicant required by this Code. Such investigation shall include contacting each
reference provided in the application and taking all appropriate steps to verify the
accuracy of information contained in the application. The Commission shall then
review the findings and conclusions and either grant or deny the License. The
applicant shall be notified in writing of the Commission's decision. If the
Commission votes to deny the License, it shall include in such notice the specific
reasons for its decision.

(b) All applications, background checks, and Commission decisions shall be retained in
the Commission files for a period of at least 10 years.

(c) The Commission may License a Non-Gaming Employee if, in its good faith
determination, the potential Licensee presents a limited risk to the Gaming Operation.
This provision applies to Non-Gaming applicants who may have prior criminal
convictions or other behaviors that may show threat to the general public or Gaming
Operation. If the Commission Licenses an applicant under this provision, the
Commission must provide a written determination showing cause for granting a Non-
Gaming Employee License.

4.02.076 Scope of Non-Gaming Employee License

A Non-Gaming Employee License shall be effective only for the person to whom it is issued and only
with respect to the Gaming Facility specified in the application. Any such License may be transferred
to a new Gaming Facility only upon prior approval of the Commission, upon written request of the
Licensee identifying the proposed new Gaming Facility, its location, and the proposed Gaming
Operator thereof.

4.02.077 Requirement to Produce License Upon Request

Any person receiving a Non-Gaming Employee License must carry that License upon his or her person
during all working hours and must produce that License upon the request of any law enforcement
official with jurisdiction over the Gaming Activity or any agent of the Tribe, the Commission, WSGC
or NIGC.

4.02.078 Permanent License Revocation of Non-Gaming Employee License

(a) Grounds for Permanent Revocation

The Commission may permanently revoke a Non-Gaming Employee License, after notice and
an opportunity for a hearing, for any of the following reasons:

(i) The Licensee has withheld pertinent information on his application;

(ii) The Licensee has made false statements on the application;

S.T.C. 4.02 GAMING CODE - 42


The Tribe is firmly committed to the principle of tribal self-government. Consistent with federal
policy, tribal government provides a wide range of public services on the Reservation, including
general governmental services, maintenance of peace and good order, establishment of educational
systems and programs, and promotion and regulation of economic activities within the sovereign
jurisdiction of the Tribe.

4.02.004 Tribal Gaming Policy

The establishment, promotion, and operation of Gaming is necessary and desirable, provided that such
Gaming is regulated and controlled by the Tribe pursuant to tribal and federal law and any tribal-state
Gaming Compact entered into pursuant to the Indian Gaming Regulatory Act, and that all proceeds of
such Gaming are used for the benefit of the Tribe as required by the Indian Gaming Regulatory Act
and tribal law. When operated in accordance with the provisions of this Code, such Gaming will be
conducive to the general welfare of all residents of the Reservation.

4.02.005 Definitions

Under this Code, except where otherwise specifically provided or where the context otherwise
requires, the following terms and expressions shall have the following meanings:

(a) “Adoption” means the date listed on the rulemaking order of Adoption.

(b) "Adjusted Gross Proceeds" means gross proceeds less all cash prizes or the aggregate
price of merchandise prizes, except in the case of the games of draw poker and stud
poker. Regarding games of draw poker and stud poker, "Adjusted Gross Proceeds”
means the time buy-ins or tournament fees collected by the Gaming Operator.

(c) “Amendment” means an action that changes the language of an existing rule.

(d) “Charitable Gaming Ticket” means any game piece used in the play of a paper pull-
tab game, or jar ticket game, or raffle.

(e) "Cheating" means operating or playing in any game in a manner in violation of the
written or commonly understood rules of the game, with the intent to create for
oneself or someone in privity with one an advantage over and above the chance of the
game.

() "Code" means this Code, the Skokomish Gaming Code, as now or hereafter amended.

(g) "Compact" means the Class III Gaming Compact between the Tribe and the State of
Washington, entered into May 25, 1995 as authorized by the Indian Gaming
Regulatory Act (IGRA), and its amendments.

(bh) "Compensation" means all wages, salaries, bonuses, and all other forms of
remuneration for services rendered.

(i) “Continuance” means an extension of a hearing date or a rule’s Adoption date.

G) “Council” or "Tribal Council" means the governing body of the Skokomish Indian
Tribe.

S.T.C. 4.02 GAMING CODE - 6


(g)

The Tribe is vigorously pursuing its goal of self-sufficiency and self-determination
through the development of tribal businesses and enterprises. Because the
Skokomish Reservation lacks income-generating natural resources and because the
Tribe's tax base is almost non-existent, the Tribe must rely on tribal business
development to raise the funds necessary to expand its social, health, and education
programs, increase employment and improve its on-reservation economy. This effort
has recently become increasingly important as a result of cutbacks in federal and state
funding and the increased costs of self-government. It is therefore essential that the
Tribe develop new and expanded sources of revenue to support its ever-increasing
governmental needs and to provide much needed employment and training for tribal
members.

(bh) Asa result, the following new and expanded Gaming law is in the best interest of the

Skokomish Indian Tribe.
4.02.002 Purposes
The purposes of this Code are to:

(a) Regulate, control, and license the operation of all Gaming within the jurisdiction of
the Tribe.

(b) Make clear and explicit that a tribal license to operate a Gaming Activity is a
revocable privilege, not a right or property interest.

(c) Ensure that the operation of tribally regulated Gaming will continue as a means of
generating tribal revenue.

(@)) Ensure that tribally regulated Gaming is conducted fairly and honestly by both
Gaming Operators and players and that it remain free from corrupt, incompetent,
unconscionable and dishonest persons and practices.

(e) Promote and strengthen tribal economic development and self-determination and
enhance employment opportunities for its members.

(f) Generate revenue to strengthen and improve tribal self-government and the provision
of tribal governmental services.

(g) Ensure that all Gaming revenue is used for the benefit of the Tribe and the
Reservation community.

(h) Ensure that tribal Gaming laws are strictly and fairly enforced against all persons
involved in Gaming Activities within the jurisdiction of the Tribe.

(i) Ensure that the Tribe provides a fair and impartial forum for the resolution of
Gaming disputes.

4.02.003 Tribal Policy of Self-Government
S.T.C. 4.02 GAMING CODE - 5


In addition to other civil and criminal offenses provided for in this Code or under other applicable law,
the following acts are prohibited and subject any violator to the civil or criminal penalties specified

herein:

(a)

(b)

(©)

(d)

()

®

(2)

(h)

@

@

(k)

@

(m)
(n)

S.T.C. 4.02

Knowingly making a false statement in an application for employment with any
Gaming Operator or with the Commission.

Knowingly making a false statement in connection with any contract to participate in
any Gaming Activity.

Attempting to bribe any person participating in any Gaming Activity.

Offering or accepting a loan, financing, or other thing of value between a
Commission member or employee and any Person participating in any Gaming
Activity.

Failing to keep sufficient books and records to substantiate receipts, disbursements,
and expenses incurred or paid from any Gaming Activity authorized pursuant to this
Code.

Falsifying any books or records which relate to any transaction connected with any
Gaming Activity pursuant to this Code.

Conducting or Participating in any Gaming Activity which in any manner results in
Cheating or misrepresentation or which allows any other disreputable tactics that
detract from the fair nature and equal chance of participation between Gaming
players, or which otherwise creates an advantage over and above the chance of such
Gaming Activity and which affects its outcome.

To conduct a Gaming Activity with or to allow Participation in a Gaming Activity by
an intoxicated or disorderly player.

To allow or Participate in the sale of liquor at Gaming sites when such sale is
prohibited by tribal law.

To accept consideration other than money, personal checks, or other approved
consideration for the chance to play or participate in any Gaming Activity.

To solicit, directly or indirectly, or to use inside information on the nature or status of
any Gaming Activity for the benefit of any Person.

To tamper with Gaming Equipment or conspire to tamper or manipulate the outcome
or the payoff of a Gaming Equipment, or otherwise interfere with the proper
functioning of the machine.

To alter or counterfeit a License.

To aid, abet, or conspire with another person knowingly or knowingly to cause any

person to violate any provision of this Code or any rules and regulations adopted
hereunder.

GAMING CODE - 55


(a) Grounds for Permanent Revocation

The Commission may permanently revoke a Gaming License, after notice and an Opportunity
for a hearing, for any of the following reasons:

(i)
(ii)
(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(ix)

(x)

(xi)

(xii)

S.T.C. 4.02

The Licensee has withheld pertinent information on his application;
The Licensee has made false statements on the application;

The Licensee has participated in Gaming Activity which was not authorized
by any tribal Gaming License;

The Licensee has attempted to bribe a Tribal Council member,
Commissioner, or other Person in an attempt to avoid or circumvent this
Code or any other applicable law;

The Licensee has offered something of value or accepted a loan, financing,
or other thing of value to a Commission member, a subordinate employee or
any person participating in any Gaming Activity;

The Licensee has knowingly promoted, played, or participated in any
Gaming Activity operated in violation of this Code or any other applicable
law;

The Licensee has been knowingly involved in the falsification of books or
records which relate to a transaction connected with the operation of Gaming
Activity;

The Licensee has violated any provision of this Code or the rules and
regulations of the Commission;

The Licensee has been convicted of, or has entered a plea of no contest to,
any crime involving Gaming, fraud, theft, embezzlement, or other activity
which, if perpetrated at his Gaming Operator's place of employment, would
injure or pose a threat to the public interest, or the integrity of the Gaming
Activity, or the effective regulation of Gaming or enhance the dangers of
unfair, unsuitable, or illegal Gaming practices;

The Licensee has been convicted of, or entered a plea of no contest to, a
crime involving the sale of illegal narcotics or controlled substances;

The Licensee has failed to comply with any lawful order, inquiry or directive
of the Commission, the Tribal Council, or any administrative or judicial
body of competent jurisdiction, arising from any Gaming Activity whether or
not subject to this Code; or

The Licensee is determined to have present or prior activities, including

criminal record, or reputation, habits or associations which pose a threat to
the public interest or to the effective regulation of Gaming, or create or

GAMING CODE - 38


(d)
(e)

(f)

4.02.042

A person representing him or herself.

Interpreters for persons with a limited understanding of the English language or
hearing-impaired persons.

Persons as may be permitted by the Commission upon a showing by a party that
necessity or hardship would make it unduly burdensome for the party to have a
representative as set forth under subsections (a), (b), and (c) above.

Notice of Hearing—Requirements

All parties that have filed a timely application for adjudicated proceeding shall be served
with a notice of hearing at least seven (7) days before the date set for the hearing unless all
parties consent to a shorter period. The notice shall state the time, place, and purpose of
the hearing.

4.02.043

Service of Process

Service of Process to effectuate notice shall be required for all hearings under this Code.

(a)

(b)

(©)

@

()

S.T.C. 4.02

By Whom Served. The Director shall cause to be served all orders, notices, and
other documents issued by the Director or the Commission, together with any
other documents, which the Director is required by law to serve. Every other
document shall be served by the party filing it.

Upon Whom Served. All papers served by either the Director or any party shall
be served upon all counsel of record at the time of such filing and upon parties not
represented by counsel or upon their agents designated by them or by law. Any
counsel entering an appearance after the initiation of the proceeding shall notify
all other counsel then of record and all parties not represented by counsel of such
fact.

Method of Service. Service of all orders, notices, and other documents shall be
made personally or by first-class or certified mail. Facsimile service by the
Director or the Commission is prohibited.

When Service is Complete. Service of notices and other documents shall be
regarded as complete as follows:

(i) By personal service, upon delivery to the person, attorney representing the
party, designated agent of the party, any person aged 18 or older residing
at the residence of the party or corporate officer.

(ii) By mail, upon deposit in the United States mail properly stamped and
addressed; service is complete on the third day after mailing, excluding
the date of mailing.

Filing with the Director or the Commission

Documents required to be filed with the Director or Commission shall be deemed
filed upon actual receipt of the documents by the Director or Commission,

GAMING CODE - 26


(iii)

(iv)

(v)

(vi)

(vii)

(viii)

(x)

(x)

(xi)

(xii)

The Licensee has participated in Gaming Activity which was not authorized
by any tribal Gaming license;

The Licensee has attempted to bribe a Tribal Council member,
Commissioner, or other person in an attempt to avoid or circumvent this
Code or any other applicable law;

The Licensee has offered something of value or accepted a loan, financing,
or other thing of value to a Commission member, or a subordinate employee;

The Licensee has knowingly promoted, played, or participated in any
Gaming Activity operated in violation of this Code or any other applicable
law;

The Licensee has been knowingly involved in the falsification of books or
records which relate to a transaction connected with the operation of Gaming
Activity;

The Licensee has violated any provision of this Code or the rules and
regulations of the Commission;

The Licensee has been convicted of, or has entered a plea of no contest to,
any crime involving Gaming, fraud, theft, embezzlement, or other activity
which, if perpetrated at his Gaming Operator's place of employment, would
injure or pose a threat to the public interest;

The Licensee has been convicted of, or entered a plea of no contest to,a
crime involving the sale of illegal narcotics or controlled substances within
the last three (3) years;

The Licensee has failed to comply with any lawful order, inquiry or directive
of the Commission, the Tribal Council, or any administrative or judicial
body of competent jurisdiction, arising from any Gaming Activity whether or
not subject to this Code; or

The Licensee is determined to have present or prior activities, including
criminal record, or reputation, habits or associations which pose a threat to
the public interest.

4.02.079 Temporary Suspension of Non-Gaming Employee License

The Commission may temporarily suspend a Non-Gaming Employee License for not more
than thirty days for any of the following reasons:

(a) The Licensee has been charged with a violation of any Gaming Law;

(b) The Licensee's continued employment poses a threat to the general public;

(c) The Licensee has made a material false statement in his license application;

S.T.C. 4.02

GAMING CODE - 43


Council shall determine who shall have check writing authority from such account.

4.02.039 Quarterly Report of Gaming Manager Reports

The Commission shall file a quarterly report with the Council summarizing regulatory reports received
from each manager of any tribally owned or managed Gaming Activity and make such comments as it
deems necessary to keep the Council fully informed as to the regulatory status of its various Gaming

Activities.

ADJUDICATIVE HEARINGS AND PROCEDURES

4.02.040 Hearings

(a) The Commission shall afford a Licensee the opportunity for an adjudicative
proceeding before suspending a Licensee except in cases where the circumstances
call for immediate action to protect the public safety, general welfare, or the
integrity of the Gaming Operation, and observing the hearing requirements would
be contrary to the public interest, in which case the Licensee shall be entitled to a
prompt post-suspension hearing.

(b) No hearing will be conducted with respect to any adjudicative proceeding unless
an application for an adjudicative proceeding and request for hearing is timely
filed by the Licensee with the Commission in compliance with this Code. The
application must be made in writing on a form to be obtained from the Tribal
Gaming Agency, or a facsimile thereof, and must be received within fifteen (15)
days of the party’s receipt of a notice of administrative charges and opportunity
for an adjudicative proceeding. An application for an adjudicative proceeding and
request for hearing shall accompany all notices of administrative charges.

(c) If an application for an adjudicative proceeding is not timely filed, then the party
affected shall have waived the right to a hearing on the allegations set forth in the
notice of administrative charges. The party shall be deemed to be in default and
the Commission may take action against the party not to exceed the maximum
penalty as stated in the notice of administrative charges and opportunity for an
adjudicative proceeding, which action shall be final.

4.02.041 Appearance Before the Commission—Who May Appear

No person may appear in a representative capacity before the Skokomish Gaming
Commission other than the following:

(a) Persons duly admitted to the bar of the Skokomish Tribal Court.

(b) Attorneys at law duly qualified and entitled to practice before the highest court of
record of any state.

(c) A bona fide officer, authorized manager, partner, or full-time employee of any

individual firm, association, partnership, or corporation who appears for such
individual firm, association partnership or corporation.

S.T.C. 4.02 GAMING CODE - 25


4.02.118

PATRON DISPUTE RESOLUTION

Patron Dispute Resolution

Should a Gaming patron bring a dispute to the Gaming Facility Management, the following
procedures shall apply:

(a)

(b)

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)

©

(g)

The patron shall submit a written complaint to the Gaming Facility

General Manager, or in his/her absence the Director of Operations, within four (4)
days of the incident giving rise to the complaint. The General Manager shall have
three (3) days to prepare and deliver a written response to the customer. The
General Manager shall seek to resolve the dispute in good faith and consistent
with the Gaming Facility operating policies.

In the event the patron is dissatisfied with the Gaming Facility
General Manager’s response, the patron may request a review of
the complaint by the Tribal Gaming Commission. The patron must
make the request within seven (7) days of receiving the Gaming
Facility General Manager’s response.

The TGA Director shall review the complaint for Facility
compliance with regulatory requirements and provide a written
recommendation to the Tribal Gaming Commission. The written
recommendation shall include a copy of the patron’s complaint and
all relevant documentation to support the recommendation.

The Commission may set a hearing on the matter or may make a
decision based solely on the TGA Director’s recommendation and
documentation provided by the parties. The Commission, upon
consideration of the matter, shall issue a written decision to be
mailed, certified with return receipt requested, to the patron,
Gaming Facility General Manager and Tribal Attomey.

Should the Commission determine a hearing is required, it shall
provide written notification of the date, time and place of the
hearing to the patron and the Gaming Facility General Manager at
least seven (7) days prior to the hearing.

At the hearing, the patron shall have an opportunity to submit
written evidence and present oral testimony in support of his or her
complaint. The Gaming Facility General Manager shall have the
opportunity to respond to the customer’s complaint with evidence
or testimony.

The decision of the Commission shall be final and not subject to
judicial review

The liability of the Gaming Facility in any dispute under this section shall be limited to the amount of
the alleged winnings. No complainant shall be entitled to any other award, including but not limited to

S.T.C. 4.02

GAMING CODE - 62


4.02.024 Membership

4.02.025 Commissioner Prohibitions
4.02.026 Commissioner Required to Display Badge
4.02.027 Term of Office
4.02.028 Meetings
4.02.029 Organization
4.02.030 Removal of Members or Vacancies
4.02.031 Ethics
4.02.032 Powers of the Commission
4.02.033 Tribal Gaming Agency Director
4.02.034 Annual Budget
4.02.035 Commission Regulations
4.02.036 Right of Entrance; Monthly Inspection
4.02.037 Investigations
4.02.038 Bank Account for Gaming Facility
4.02.039 Quarterly Report of Gaming Manager Reports
ADJUDICATIVE HEARINGS AND PROCEDURES
402.040 Hearings
4.02.041 Appearance and Practice Before the Commission
4.02.042 Notice of Hearing-Requirements
4.02.043 Service of Process
4.02.044 Informal Proceedings-Discovery Limitations
4.02.045 Official Notice
4.02.046 Initial or Final Order
4.02.047 Judicial Review
4.02.048 Computation of Time
RULEMAKING
4.02.049 Notice of Rulemaking
4.02.050 Public Hearing
4.02.051 Review and Consideration of All Submitted Comments
4.02.052 Housekeeping Rulemaking
4.02.053 Emergency Rulemaking Criteria
4.02.054 Emergency Rulemaking Procedure
4.02.055 Petition for Rulemaking
4.02.056 Rulemaking-Commission Discharge of Duties
4.02.057 Computation of Time
LICENSES
4.02.058 Applicability
4.02.059 Gaming Prohibited
4.02.060 License Required
4.02.061 Types of Licenses
4.02.062 No License Required for Class I Gaming
4.02.063 Application Procedures
Class I & U1 Gaming Licenses
4.02.064 Current and Valid License Required
4.02.065 Application for Class II & III Gaming License

S.T.C. 4.02 GAMING CODE - 2


4.02.023 Assets of the Commission

The Commission shall have only those assets specifically assigned to it by the Council or acquired in
its name by the Tribe or by the Commission on its own behalf. No activity of the Commission or any
indebtedness incurred by it shall implicate or in any way involve or affect any assets of tribal members
or the Tribe not assigned in writing to the Commission.

4.02.024 Membership

(a) Number of Commissioners

The Commission shall be comprised of five Commissioners, who shall be appointed by the
Tribal Council.

(b) Qualification of Commissioners

The majority of the Commissioners must be members of the Skokomish Indian Tribe.
Commissioners must be over the age of 18.

(c) Background Check
Prior to the time that any Commission member takes office on the Commission, the Tribe
shall perform or arrange to have performed a background check on each prospective member,

consistent with the policies of the Skokomish Tribal Government. No person shall serve asa
Commissioner if:

@ His prior activities, criminal record, if any, or reputation, habits or
associations:

(1) Pose a threat to the public interest; or
(2) Threaten the effective regulation and control of Gaming; or

(3) Enhance the dangers of unsuitable, unfair, or illegal practices,
methods, or activities in the conduct of Gaming; or

(ii) He has been convicted of or entered a plea of nolo contendere toa felony or
any Gaming offense in any jurisdiction or to a misdemeanor involving
dishonesty or moral turpitude; or

(iv) He or any member of his immediate family has a financial interest in any
Gaming activity or Facility; or

(v) A member of his immediate family is employed as a Primary Management

Official or Key Employee of a Gaming Facility located on Skokomish Tribal
Lands.

(d) Appointment of Commission

S.T.C. 4.02 GAMING CODE - 16


1)

(@)

(v)

(w)

(x)

(y)

@

(aa)

(bb)

(ce)

(ce)

(ff)

S.T.C. 4.02

grantor's business operation unless approved in writing by the Commission.

(vii) Any renegotiated agreement shall be submitted to the Commission for
approval prior to its effective date.

There shall be no sale of liquor at any Gaming Facility or site without the prior
approval of the Tribal Council.

Consideration for the chance to play in any Gamin, ig Activity shall only be cash or, if
allowed by the Gaming Operator, personal check and shall be presented at the time
the game is played. No other form of consideration shall be allowed unless the
Commission gives prior written approval.

Evidence of any win or loss incurred by a player must, upon request, be provided to
such player in such form as will be acceptable to the IRS. All Class II Gaming must
comply with the applicable provisions of the Bank Secrecy Act, P.L. 91 -508, October
26, 1970, 31 U.S.C. §§ 5312-5314.

Each Gaming Operator shall pay all fees and file all reports required by law within
the time prescribed.

Each Gaming Operator shall respond immediately to and obey all inquiries,
subpoenas, or orders of the Commission, the Tribal Council, the Tribal Court, the
WSGC, or the NIGC.

Each Gaming Operator shall prominently display at each Gaming Facility a current,
valid License.

Each Gaming Operator shall at all times maintain an orderly, clean, and neat Gaming
Facility, inside and out.

Each Gaming Operator shall provide adequate security to protect the public before,
during, and after any Gaming Activity.

Each Licensed Gaming Activity shall be subject to patrol by the tribal police force for
the purpose of enforcing tribal law, and each Gaming Operator shall cooperate at all
times with the tribal police force.

Each Gaming Operator shall make its premises and books and records available for
inspection during normal business hours by the Commission and members of the
Tribal Council or their designee.

No Gaming Operator may discriminate on the basis of sex, race, color, or creed in the
conduct of any licensed Gaming Activity, except where permissible under Tribal or
federal law.

Each Gaming Operator shall keep accurate books and records of all moneys received

and paid out and provide the Commission or its designee with copies of or access to
the same upon request.

GAMING CODE - 53


4.02.111

(a)

4.02.112

Use of Net Revenues of Tribally Owned or Tribally Operated Gaming Activities
All Net Revenues of a tribally owned or tribally operated Gaming Activity shall be
held in the name of the Tribe. Such Net Revenues may only be expended by the
Tribal Council by resolution and only for the following purposes:

@ To fund tribal government operations or programs.

(ii) To provide for the general welfare of the Tribe and its members.

(iii) To promote tribal economic development.

(iv) To donate to charitable organizations.

(v) To help to fund operations of local government agencies.

Maintenance of Records

The Commission shall insure that all accounting records of each Gaming Facility are kept on a double
entry system of accounting, maintaining detailed, supporting, subsidiary records. The Tribal
Commission shall also insure that both the Operator and the Tribal Commission maintain the
following records for not less than three (3) years:

@

(b)

(©)
(d)

(e)

(
(g)

(h)

4.02.113

S.T.C. 4.02

Revenues, expenses, assets, liabilities and equity for each location at which Class II
and Class III Gaming is conducted;

Daily cash transactions for each Class II and Class III game at each location at which
Gaming is conducted, including but not limited to transactions relating to each
Gaming table bank, game drop box, and Gaming room bank;

All markers, IOU's, returned checks, hold checks or other similar credit instruments;
Individual and statistical game records (except card games) to reflect statistical drop
and statistical win; for electronic, computer, or other technologically assisted games,
analytic reports which show the total amount of cash wagered and the total amount of

prizes won;

Contracts, correspondence and other transaction documents relating to all Vendors
and contractors;

Records of all tribal Gaming enforcement activities;

All Gaming related audits prepared by or on behalf of the Tribe or one of its
subdivisions.

Personnel information on all Class II and Class III Gaming employees or agents
including rotation sheets, hours worked, employee profiles and background checks.

Audit Requirements

GAMING CODE - 60


4.02.063

Application Procedures

For any proposed activity requiring a License as described in this Code, the applicant shall
file with the Commission an application for the appropriate License. Before issuing a License
pursuant to this Code, the Commission shall:

(a)

(b)

(c)
@

4.02.064

Review the proposed Gaming Activity to ensure that all criteria required by this Code
shall be met.

Perform the necessary background checks on management contractors, Primary
Management Officials, and Key Employees required by this Code.

Review and approve the accounting procedures to be used in such Gaming Activity.
Take any additional steps necessary to ensure the integrity of such Gaming Activity.

Review all aspects of the proposed Gaming Operation to ensure that it will be in
compliance with the provisions of the Compact.

Class II & Class Il Gaming Licenses

Current and Valid Gaming License Required

Every Primary Management Official and every Key Employee of any Class II or Class III Gaming
Activity subject to this Code shall possess a current, valid Class II & I Gaming License.

4.02.065

(a)

(b)

S.T.C. 4.02

Application for Class II & I Gaming License

A Person seeking a Tribal Gaming License must be at least 19 years of age. All
applicants shall submit an application to the Commission on such form and in such
manner as the Commission may require.

Such application shall include the following information:

(i) The applicant's name, including all other names used, current home and
work addresses and telephone numbers, social security number, place of
birth, date of birth, citizenship, and driver's license number, as well as the
address of his personal residences over the past five years.

(ii) The name, address, and telephone number of the Gaming Facility and of the
Gaming Operator for whom the applicant intends to work and the specific
location in which the applicant will be employed.

(iii) | The name and job description of the applicant's position.

(iv)  Thenames and addresses of each of the applicant's relatives employed at the
Gaming Facility or by the Commission.

(v) A statement as to whether or not the applicant has ever been charged with a
crime, and if so, the charge, the name and address of the court involved, and

GAMING CODE - 33


(vi)

(vii)

(viii)

(ix)

(&)

(xi)

(xii)

(xiii)

(xiv)

(xv)

S.T.C. 4.02

the applicant's explanation of the outcome of the case, including the date of
final disposition.

The names, current addresses, and telephone numbers of three references
who are not related to the applicant and who were acquainted with the
applicant when the applicant was residing at each of the addresses listed in
subsection (b)(1) of this section.

A list of the applicant's previous jobs over the preceding five years,
including the name, address and telephone number of, applicant’s employer,
and the position held.

The names and addresses and a brief description of all businesses in which
the applicant currently holds, or has within the last five years held, an
ownership interest.

A description of any previous employment relationship with an Indian tribe,
including the employee position held, name of the tribe involved and the
name and address of a person who can attest to the accuracy of the
information provided.

A description of any current or past non-employee business arrangement
which the applicant has had with an Indian tribe, including the name of the
tribe involved and the name and address of a person who can attest to the
accuracy of the information provided.

A statement as to whether the applicant has had any past employment with,
or ownership interest in, any Gaming business. If so, the applicant shall
provide a written statement describing the applicant’s position, the dates
during which that position was held, a description of the applicant's
ownership interest or job responsibilities, the name, address, and phone
number of the business, and the name of a person who can attest to the
accuracy of the information provided.

A list of all Gaming-related licenses the individual has ever applied for,
whether or not those licenses were granted, and the name, address, and
phone number of the regulatory agency involved.

A list of all professional or business licenses the applicant has applied for,
whether or not those licenses were granted, and the name, address, and
phone number of the regulatory agency involved.

A statement of all languages written or spoken.

A sworn statement that neither the applicant nor any member of the
applicant’s immediate family has a past or current financial interest, other
than a salary interest, in any Gaming-related enterprise anywhere. If the
applicant has any relative who has such a relationship, the applicant shall
fully disclose that relative's name and the nature of the relationship.

GAMING CODE - 34


(a) Has Key Employees who have been convicted of, or entered a plea of no contest to,a
gambling offense, theft, embezzlement, fraud or misrepresentation within the
immediately preceding seven years;

(b) The Commission has determined has Key Employees who have participated in
organized crime or unlawful gambling, or whose prior activities, criminal record,
reputation, habits, and/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 and methods and activities in the conduct of
Gaming or to the carrying on of the business and financial arrangements incidental to
the conduct of Gaming; or

(c) Is found to have knowingly supplied false or misleading information or has
knowingly omitted material information on the License application.

The Commission may, by regulation, add additional limitations and conditions for denial of an
application for a Vendor License.

4.02.093 Revocation or Suspension of a Vendor License and Other Penalties
(a) Types of Licensing Action and When Each May Be Taken
Only the following licensing actions may be taken:

(i) The Commission may revoke a License in the circumstances provided in
subsection (b). A fine may be imposed under subsection (3) in conjunction
with a License revocation.

(ii) The Commission may suspend a Vendor License for up to 30 days in the
circumstances provided in subsection (b). A fine may be imposed under

subsection (3) in conjunction with a License suspension.

(iii) | The Commission may fine a Vendor for a Violation of any of the
circumstances listed in subsection (b). No fine shall exceed $1,000.

Under no circumstances may a Facility be closed, or a Gaming Activity or Gaming Operation
be shutdown or ordered to stop, for the purpose of a Licensing action.

(b) Grounds for Licensing Action
The TGA Director may initiate a licensing action based upon any action of the Licensee that

tends to indicate that the Licensee’s behavior is a threat to the integrity of Gaming under the
jurisdiction of the Skokomish Indian Tribe.

Provisions Of General Applicability To All Licensees
4.02.094 Provisions of General Applicability to All Gaming Operators

(a) Each Class II or Class II Gaming Activity within the jurisdiction of the Tribe shall
be conducted only by a Gaming Operator who Possesses a current and valid License.

S.T.C. 4.02 GAMING CODE - 49


(bb)

(cc)

(dd)

(ee)

(ff)

(gg)
(hh)

(ii)

Gi)

(kk)

cy)

(mm)

S.T.C. 4.02

contract, or other undertaking with any federal, state, or local governmental agency,
tribe, person, partnership, corporation, or other association or entity for any lawful
purpose pertaining to the business of the Commission or which is necessary or
incidental to the accomplishment of the purposes of the Commission.

To exercise the tribal power to tax authorized by the Skokomish Tribal Constitution
in accordance with a Tribal Council resolution delegating such power to the
Commission and in accordance with this Code and other applicable law.

To purchase insurance from any stock or mutual company for any property, or against
any risk or hazard.

To engage in any and all activities which directly or indirectly carry out the purposes
of the Tribe as set forth in this Code.

With prior approval of the Tribal Council, to make application and accept grants and
other awards from private and governmental sources in carrying out or furthering the
purposes of the Commission or the Tribe.

To exercise all authority delegated to it or conferred upon it by law and to take all
action which shall be reasonably necessary and proper for carrying into execution the
foregoing powers and all of the powers vested in this Code as permitted by the
purposes and powers herein stated and which are deemed to be in the best interests of
the Tribe, exercising prudent management and good business judgment, all in
compliance with applicable law.

To establish and maintain such bank accounts as may be necessary or convenient.

To require by regulation the filing of any records, forms, and reports and all other
information desired by the Council for implementation of this Code relating to any
Gaming Activity or operation or any investigation as required by tribal law and the
IGRA.

To provide for an internal system of recordkeeping with adequate safeguards for
preserving confidentiality as deemed necessary by the Commission. All applications,
background investigations and Commission decisions shall be retained in
Commission files for a period of at least 10 years.

To adopt a schedule of fees to be charged for licenses issued pursuant to this Code.

To adopt a schedule of fees and charges for services rendered relating to transcripts
and the furnishing or certifying of copies of proceedings, files, and records.

To conduct background investigations of all persons who propose to participate in
any Gaming Activity.

To compel obedience of its lawful orders by proceedings of mandamus or injunction
or other proper proceedings in the name of the Tribe in Tribal Court or in any other
court having jurisdiction of the parties and of the subject matter; provided that no suit
shall be brought by the Commission without the prior explicit written approval of the

GAMING CODE - 22


(s)

S.T.C. 4.02

permanent books of accounts and records, including inventory records of Gaming
Supplies, sufficient to establish the gross and net income, deductions, expenses,
receipts, and disbursements of the Operation.

A Gaming Operator who conducts a Gaming Activity at a site in which the Operator
does not have a legal ownership interest shall file with the Commission, prior to
conducting any Gaming Activity at such site, a written agreement, attested to by both
the Gaming Operator and the owner of such site, setting forth the terms under which
the Operator is permitted the use of such site.

(i)

(ii)

(iii)

(iv)

(v)

(vi)

Such agreement shall contain all of the following information:

Q)

(2)
3)
4)

G)
(6)
(7)

The name of the legal owner of the site. If the Gaming Operator is
to be a sub-lessee, then the name of the lessee must also be
included.

The name and License number of the Gaming Operator.
The term of such use of the site.

The monetary consideration to be paid for such use of the site, if
any.

A precise description of the location or premises.
A prohibition of advertising of the Gaming Activity by the owner.
The following provision:

The (grantor/lessor) hereby agrees that neither (he), (his)
spouse, nor any employee or agent of the (grantor/lessor)
shall participate in the selling, distributing, conducting,
assisting, or participating in Gaming Activity at the site
herein (granted/leased) without the prior written approval
of the Commission.

Any rent or lease provision of such agreement shall include a fixed monthly
rental dollar amount, unless otherwise approved in writing by the
Commission.

A graduated lease rate for use of the site is prohibited unless approved in
writing by the Commission.

Other remuneration in lieu of money for use of the site is prohibited unless
approved in writing by the Commission.

A percentage lease rate for use of the site is prohibited unless approved in
writing by the Commission.

No game of chance shall be operated in conjunction with the conduct of the

GAMING CODE - 52


(a)

(b)

4.02.114

The Commission and the General Manager of each Gaming Facility shall obtain an
annual independent audit of all Gaming Activity. A copy of such audit shall be
provided to the Commission, the Tribal Council, and the NIGC.

Each contract for Supplies, services (other than legal and accounting services) or
concessions for a contract amount in excess of $25,000 annually shall be subject to
an independent audit. A copy of such audit will be provided to the Commission, the
Tribal Council, and the NIGC.

Management Contracts

No Management Contract entered into by the Tribe and another entity shall be valid unless approved
by NIGC pursuant to 25 U.S.C. 2711(2005).

4.02.115

(a)

)

(©)

4.02.116

Additional Requirements for Operation of Tribally Owned or Tribally
Operated Games

Any cash winning of an amount under $500 shall be paid in cash or check and shall
be paid on the date it is won. Each patron's winnings of an amount over $500 may be
paid by check and shall be paid within 72 hours after it is won.

Each Gaming Facility shall carry sufficient liability insurance to protect the public in
the event of an accident. The Commission shall determine the amount of liability
insurance required for each Facility.

Each Gaming Activity shall post the rules of play of each game in a conspicuous
place where Gaming is conducted and shall make written copies of such rules
available to any member of the general public upon request.

AUTHORIZED GAMES AND INTERNAL CONTROL STANDARDS

Authorized Games

Consistent with applicable law, the Tribe authorizes all games of chance authorized under the Class III
Gaming Tribal-State Compact and its Amendments, pursuant to IGRA. The Tribe also authorizes all
forms of Class II gaming.

4.02.117

(a)

(b)

S.T.C. 4.02

Internal Control Standards

The Minimum Internal Control Standards (MICS) as stated in 25 CFR Part 542
are adopted as the Tribal Internal Control Standards for regulation of Class IL
Gaming pursuant to Tribal Council/Commission Joint Resolution No. 03-116.
Should the NIGC amend 25 CFR Part 542, those Amendments shall be deemed
automatically adopted and incorporated into the Commission Regulations.

The Compact and its Amendments provide Internal Controls for Class III Gaming.
Where an Internal Control deriving from the Compact provides a level of control that
equals or exceeds the level of control provided by the MICS, the Compact Internal
Control shall prevail.

GAMING CODE - 61


***CERTIFICATION***

I, Charles “Guy” Miller, Chairperson of the Skokomish Tribal Council, hereby certify that the
foregoing Resolution No. 09-|2G __ was adopted at a regular meeting of the Skokomish Tribal

Council held on = piembre 2 - , 2009, at which a quorum was present by

avoteof S For, © AGAINST, AND O ABSTAINING.
ATTEST:

Dodi Vordiiz 4 4 bu as Wy

Charles “Guy” Miller, Chairperson Alex Gouley, Secretat ary
Skokomish Tribal Council Skokomish Tribal Council

Resolution No. 09- Page 3 of 3


©)

@

(e)

(g)

(h)

S.T.C. 4.02

name and address of a person who can attest to the accuracy of the
information provided.

(x) A description of any current or past non-employee business arrangement
which the applicant has had with an Indian tribe, including the name of the
tribe involved and the name and address of a person who can attest to the
accuracy of the information provided.

(xi) A statement as to whether the applicant has had any past employment with,
or ownership interest in, any Gaming business. If so, the applicant shall
provide a written statement describing the applicant’s position, the dates
during which that position was held, a description of the applicant's
ownership interest or job responsibilities, the name, address, and phone
number of the business, and the name of a person who can attest to the
accuracy of the information provided.

(xii) _A list of all professional or business licenses the applicant has applied for,
whether or not those licenses were granted, and the name, address, and
phone number of the regulatory agency involved.

(xiii) __A statement of all languages written or spoken.

(xiv) Written permission giving the Commission or its designee the right to
investigate the applicant's background, including his criminal record, civil
and criminal judgments, and credit history.

(xv) A complete disclosure of any pending or anticipated civil or criminal action
against the applicant, including the name and address of the police
department and court involved.

(xvi) A disclosure of any civil or criminal judgments rendered against the
applicant, including the case number, a description of ‘the judgment, and the
name and address of the court involved.

Each application shall be accompanied by a sworn statement that if the License is
issued, the applicant will submit to the jurisdiction of the Tribe and the Tribal Court.

Each application shall be accompanied by a photograph of the applicant taken within
the last year.

Each application shall be accompanied by a sworn statement that the applicant will
abide by this Code and all other applicable Laws.

Each application for a Non-Gaming Employee License shall be accompanied by a
non-refundable application fee. The amount of this fee shall be determined by the
Skokomish Tribal Gaming Commission to recover the costs of processing License
applications.

The disclosure of an applicant's social security number (SSN) is voluntary. However,
failure to supply a SSN may result in errors in processing the application.

GAMING CODE - 41


4.02.071

(a)

enhance the dangers of unsuitable, unfair, or illegal practices and methods
and activities in the conduct of Gaming.

Temporary Suspension of Class II & III Gaming License

Grounds for Temporary Suspension

The Commission may temporarily suspend a Class II & II Gaming License for not more than
thirty days for any of the following reasons:

(b)

6) The Licensee has been charged with a violation of any Gaming Law;

(ii) The Licensee's continued employment as a Primary Management Official or
Key Employee of a Gaming Activity poses a threat to the general public;

(ii) | The Licensee has made a material false statement in his or her License
application;

(iv) The Licensee has participated in Gaming Activity unauthorized by his or her
License;

(v) The Licensee has refused to comply with any lawful order of the
Commission, the Tribal Council, the Tribal Court, the WSGC or the NIGC
arising from or relating to Gaming.

Immediate Temporary Suspension

The Commission shall immediately temporarily suspend a Class II & III Gaming License for
not more than thirty days upon receipt of notification from the NIGC pursuant to 25 C.F.R. §
558.5 that reliable information exists that such Gaming employee is not eligible for
employment. Upon receipt of such notification, the Commission shall notify the Licensee of
the suspension and proposed revocation and the time and place for hearing under this Code.

4.02.072

(a)

(b)

S.T.C. 4.02

Tribal Non-Gambling Related Offenses

Notwithstanding anything herein to the contrary, in the absence of other violations, it
shall not be automatic grounds for revocation, suspension or denial of a Class II & III
Gaming License for an Indian from a federally recognized Indian tribe to have been
charged and convicted of the following non-Gaming related offenses, the occasion of
which occurred prior to U.S. Supreme Court rulings on the subject:

(6) fishing or hunting offenses;

(ii) cigarette, fireworks or alcohol sales offenses; or

(iii) cases involving the exercise of trust or treaty rights

In the absence of other violations, activities or factors which would warrant denial,

revocation or suspension, these Indian individuals shall not be barred from licensing
solely as a result of such activities.

GAMING CODE - 39




(gg)

"Key employee" means a person who performs one or more of the following
functions:

(i) Bingo caller;

(ii) Counting room supervisor;

(iii) Chief of security;

(iv) Custodian of Gaming supplies or cash;
(v) Floor manager;

(vi) Pit boss;

(vii) Dealer;

(viii)  Croupier;

(ix) Approver of credit;

(x) Custodian of Gaming Apparatus or Equipment including persons with access
to cash and accounting records within such devices;

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

(hh)

@

Gi)
(kk)

(ay

(mm)

S.T.C. 4.02

“Law” or “Statute” means a statement by a legislative body or court that must be
obeyed and followed, specifically the laws of the Tribe and, only to the extent
they are binding and applicable, the laws of the State of Washington and the
United States.

"License" means any official, legal, and revocable permission granted by the
Commission pursuant to this Code to an applicant to conduct any Gaming Activity on
Indian Lands.

“Licensee” means the holder of, or applicant for, a License.

"Lotto" means a form of Gaming in which all or a part of the proceeds derived from
the sale of tickets or chances are pooled and such proceeds are allotted by chance to
one or more chance takers or ticket purchasers. The amount of cash prizes or
winnings is determined by the Gaming Operator conducting the "lottery" and a
progressive pool is permitted.

“NIGC” means the National Indian Gaming Commission.
"Net revenues" means Gross Gaming Revenue of the tribal Gaming Operation less

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

GAMING CODE - 9


&

oO

(m)

(n)

(0)

(p)

(@

©

S.T.C. 4.02

(iii) All markers, IOU's, returned checks, hold checks or other similar credit
instruments;

(iv) Individual and statistical game records (except card games) to reflect
statistical drop and statistical win; for electronic, computer, or other
technologically assisted games, analytic reports which show the total amount
of cash wagered and the total amount of prizes won;

(v) Contracts, correspondence and other transaction documents relating to all
Vendors and contractors;

(vi) Records of all tribal Gaming enforcement activities;

(vii) All Gaming related audits prepared by or on behalf of the Tribe or one of its
subdivisions; and

(viii) Personnel information on all Class II and Class II Gaming Employees or
agents including rotation sheets, hours worked, employee profiles and
background checks.

No person under the age of 21 shall be employed as a Key Employee or Primary
Management Official of any Class III game, if the F: acility serves alcoholic beverages.

No person under the age of 21 years shall be permitted to conduct, assist in, or play
any Gaming Activity conducted at any location having an alcoholic beverage license
of any type or class.

Each Gaming Operator shall post in a conspicuous location near where each Gaming
Activity is being played or shall otherwise provide the public with an explanation of
the rules of play of every game in operation.

A Gaming Operator is prohibited from renting or lending Gaming Equipment to any
person without the prior written approval of the Commission.

A Gaming Operator is prohibited from exchanging pull-tabs, punch-boards, sports
pools, and shoes (including automatic/electronic shuffling devices) without the
approval of the Commission. All other Gaming Equipment may be exchanged
without prior approval. Any request for approval shall be made to the Commission at
least 5 days prior to the exchange.

Each Gaming Operator who anticipates the printing, manufacture, or construction of
any equipment for Gaming Activity shall first notify the Commission of his intention
and shall have the finished product approved by the Commission before it is placed
in service.

Gaming chips and other tokens of value, including coupons issued for promotional
Purposes, may be sold and redeemed only by the Gaming Operator and only for full

value.

Every Gaming Operation shall maintain and keep for not less than 10 years

GAMING CODE - 51


(©)

(d)

©)

(69)

(g)

(a)

@

0)

S.T.C. 4.02

License:
Ist occurrence: Fine
Subsequent occurrences: Suspension

Attempted to bribe a Tribal Council member, Commissioner, or other person in an
attempt to avoid or circumvent this Code or any other applicable law:

Ist occurrence: Suspension or revocation

Subsequent occurrences: Revocation

Accepted a loan, financing, or other thing of value from a Commissioner member or
any person participating in any Gaming Activity:

1st occurrence: Fine

Subsequent occurrences: Suspension or Revocation

Knowingly promoted, played, or participated in any Gaming Activity operated in
violation of this Code or any other applicable law:

1st occurrence: Fine or Suspension

Subsequent occurrences: Suspension or Revocation

Has been knowingly involved in the falsification of books or records which relate toa
transaction connected with the operation of Gaming Activity:

1st occurrence: Suspension or Revocation

Subsequent occurrences: Revocation

Has violated any provision of this Code or the rules and regulations of the
Commission:

Ist occurrence: Fine

Subsequent occurrences: Suspension or Revocation

Has been convicted of, or has entered a plea of nolo contendere to, any crime
involving gaming, fraud, theft, embezzlement, or other activity which, if perpetrated
at a Gaming Operator’s place of employment, would: injure or pose a threat to the
integrity of the gaming activity, the safety of the Gaming patrons, or the effective
regulation of Gaming; or enhance the dangers of unfair, unsuitable, or illegal gaming
practices:

1st occurrence: Suspension or Revocation

Subsequent occurrences: Revocation

Has failed to comply with any lawful order, inquiry or directive of the Director,
Commission, the Tribal Council, or any administrative or judicial body of
competent jurisdiction, arising from any Gaming Activity whether or not subject to
this Code:

1st occurrence: Fine or Suspension

Subsequent occurrences: Suspension or Revocation

Is determined to have present or prior activities, or reputation, habits or associations,
which: pose a threat to the integrity of the Gaming Activity, the safety of the Gaming
patrons, or the effective regulation of Gaming; or create or enhance the dangers of
unsuitable, unfair, or illegal practices and activities in the conduct of gaming:

1st occurrence: Fine or Suspension

GAMING CODE - 57


(uu)

(vw)

(ww)

(xx)

(yy)

(zz)

(aaa)

(bbb)

(ccc)

(ddd)

(eee)

S.T.C. 4.02

(iv) each of its shareholders who owns more than ten percent of the shares of the
corporation, if a corporation; and

(v) each person other than a banking institution who has provided financing for
the enterprise constituting more than ten percent of the total financing of the
enterprise.

"Progressive Gaming" means any game in which a cash prize not being won by
any player during any game is retained and further monetarily enhanced by the
Gaming Operator or eligible organization and offered as a prize to players in the
next game.

“Public Hearing and Comment Period” means the time period during which the
public may comment on the Proposed Rule, and participate in the Rulemaking
process.

“Publish” means posting the notice or other document at the offices of the Tribal
Gaming Commission, and providing a copy of the notice or other document to the
Office of the Tribal Attorney. An item shall not be considered published until it
has been posted and received by the Office of the Tribal Attorney.

“Rule” means an agency order, directive or regulation that: (1) imposes a penalty
on those who violate the Rule; or (2) establishes or revokes requirements or
standards relating to a matter under the Skokomish Tribal Gaming Commission’s
jurisdiction.

“Rulemaking” means the process used to develop, adopt, amend, or repeal a rule.

“Rulemaking Order of Adoption” means the notice that indicates the Skokomish
Tribal Gaming Commission has Adopted a Rule, and provides the Rule’s
language.

“Skokomish Tribal Lands” see Indian Lands.

“Supplemental notice” means a notice that informs interested parties that
significant changes are being made to a Proposed Rule. It reopens the Rulemaking
proceedings for additional Public comment on the substantive changes.

"State" means the State of Washington.

"Commission" means the Skokomish Tribal Gaming Commission described in this
Code.

"Tribe" and "Tribal" refers to the Skokomish Indian Tribe of Washington, a federally
recognized Indian tribe acting through the duly elected Tribal Council pursuant to the
Tribal Constitution and Bylaws, unless the context clearly indicates a general
meaning.

GAMING CODE - 11


operation and regulation of gaming on the Skokomish Indian Reservation, the Code having been
approved by the NIGC at adoption and each respective amendment, revision and restatement; and

WHEREAS, the Skokomish Gaming Code section 4.02.002(e) states that one of the purposes of
the code is to “Promote and strengthen tribal economic development and self-determination and
enhance employment opportunities for its members”; and

WHEREAS, the Skokgmish Tribal Gaming Commission has recommended to the Tribal Council
upon TGC, a Ng. 09-02 (August 4, 2009) to revise the Skokomish Gaming Code to
enhi 7 Opportunities for Tribal members who have made mistakes in the past as
long assthe assets of the Tribe and Casino are still being protected; and

WHEREAS, to achieve the goal of enhanced employment opportunities, the Skokomish Indian
Tribe finds it in the best interests of the Tribe to revise Skokomish Gaming Code Sections
4.02.067 (b) and (c) to read:

(b) Has been convicted of or entered a plea of no contest to a
gambling offense, theft, embezzlement, fraud or misrepresentation,
unless 7 years have passed since the offense, and the person is a
member of a federally recognized Tribe who has been determined
by the Tribe to be a person who is likely again to engage in any
offensive or criminal course of conduct

(c) Has been convicted of or entered a plea of guilty or no contest
to any other offense related to honesty, violence, or drugs; this
provision shall not apply if that person has been pardoned by the
Governor of the State where the conviction occurred or, if a
member of a federally recognized tribe, has been determined by the
Tribe to be a person who is not likely again to engage in any
offensive or criminal course of conduct and the public good does
not require that the applicant be denied a license as a Key
Employee or Primary Management Official; or

NOW THEREFORE IT BE RESOLVED, that the Skokomish Tribal Council hereby approves
the recommendation of the Skokomish Tribal Gaming Commission to modify Sections
4.02.067(b) and (c) of the Skokomish Gaming Code.

BE IT FURTHER RESOLVED, that the modified language shall be submitted to the National
Indian Gaming Commission (NIGC) for approval pursuant to 25 U.S.C. §2712, the effect of the
revision shall not commence until approval is granted by the NIGC.

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Resolution No 09- Pave 7 af


4.02.059 Gaming Prohibited

All Gaming within the reservation is hereby prohibited unless in compliance with this Code and other
applicable laws of the Skokomish Tribe. No person shall engage in Gaming Activity except in
compliance with this Code.

4.02.060 License Required

No person shall operate a Class II or Class III Gaming Facility, conduct Class II or Class III Gaming,
or conduct business with a Class II or Class III Facility Operator within the jurisdiction of the Tribe
unless such Gaming is licensed by the Tribe. A separate tribal Gaming License shall be obtained for
each game as authorized by this Code.

4.02.061 Types of Licenses
The Commission shall issue each of the following types of Gaming licenses:

(a) Class I & Class Ill Gaming-This type of License is required by any Primary
Management Official, Key Employee, Class I Gaming Employee, or Class III
Gaming Employee.

(b) Non-Gaming Employee..

(c) Facility and Facility Operator-This type of License is required for each Class II or
Class III Gaming Facility operated by the Skokomish Indian Tribe.

(d) Gaming Vendor-This type of License is required of all Vendors of ‘goods and services
directly related to Class II & II Gaming and Non-exempt Gaming Financiers. Non-
exempt Gaming financiers must meet all Tribal licensing and State Certification and
suitability requirements. Gaming Vendor licensing requirements may be more fully
set forth in the Commission regulations. The Tribe shall not enter into, or continue to
make payments pursuant to, any contract or agreement that would require licensing if
the Gaming Vendor has been denied a License or is deemed unsuitable, or the license
or suitability determination has expired without renewal.

(e) Non-Gaming Vendor-This type of License is required of all Vendors of goods and
services not related to Gaming and which:

(0) Supply more than $25,000 in goods and services annually; and

(ii) Supply only food, beverage, gift shop, advertising, promotional,
entertainment or marketing goods and services.

4.02.062 No License Required for Class I Gaming
A tribal License shall not be required for any Class I Gaming Activity or Operation provided,
however, that each Class I Gaming Activity or Operation must have written permission of the

Commission, and such permission must be on file with the Tribal Secretary before any such Class I
Gaming is conducted.

S.T.C. 4.02 GAMING CODE - 32


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S.T.C. 4.02

To prepare and submit for Council approval proposals, including budget and
monetary proposals, which could enable the Tribe to better carry forth the policies
and intent of this Code.

To work with the staff of any tribal department, program, project, or operation and to
cooperate with the Tribal Council or any Council Committee in regard to Gaming
issues.

To make or cause to be made by its agents or employees, an examination or
investigation of the place of business, equipment, facilities, tangible personal
property of any Gaming Activity or Facility operating, or suspected of operating,
within the jurisdiction of the Tribe. In undertaking such examination or
investigation, the Commission may request the assistance of Commission staff,
federal and local law enforcement officials, legal counsel, and other third parties.

To make or cause to be made by its agents or employees, quarterly examination of the
books, records, papers, vouchers, accounts, documents, and financial statements,
including all expenses and revenues of any Gaming Activity or Facility operating
within the jurisdiction of the Tribe, for the purpose of: monitoring budget compliance.
The Commission shall then report its quarterly findings, in writing, only to the
Council. In undertaking such examination, the Commission may request the
assistance of Commission staff and other third parties.

To maintain and keep current a record of new developments in the area of Indian
Gaming.

To request the assistance of the Tribal Court or Tribal Appellate Court in conducting
Gaming hearings, defining terms used in this Code or other tribal laws, or in any
other matter in which the Commission deems such assistance to be necessary or
proper.

To consider any Gaming regulatory matter brought before it by any person,
organization or business, and all regulatory matters referred to it by the Tribal
Council.

To obtain and publish a summary of federal revenue laws relating to Gaming and to
insure compliance with the same.

To arrange for training of Commission members, tribal employees and others in areas
relating to the regulation of Gaming.

Upon prior explicit written approval of the Council, to employ such advisors as it
may deem necessary. Advisors may include, but shall not be limited to, law
enforcement specialists and Gaming professionals, the Tribe's general or special
counsel, and the Tribe's accountants.

To promulgate rules and regulations to implement and further the provisions of this
Code.

GAMING CODE - 20


Skokomish Indian Tribe

Tribal Center (360) 426-4232
N. 80 Tribal Center Road FAX (360) 877-5943 Skokomish Nation, WA 98584

SKOKOMISH TRIBAL COUNCIL Copy

RESOLUTION NO. 09- | 46

A RESOLUTION TO APPROVE A MODIFICATION TO THE SKOKOMISH GAMING
CODE UPON THE RECOMMENDATION OF THE TRIBAL GAMING COMMISSION
AND AUTHORIZE SUBMISSION OF SUCH MODIFICATION TO THE NATIONAL
INDIAN GAMING COMMISSION FOR APPROVAL

WHEREAS, the Skokomish Indian Tribe is a federally recognized Indian tribe organized under
its Constitution and by-laws first adopted on April 2, 1938 and approved by the Secretary of the
Interior May 3, 1938, amended January 15, 1980 as approved by the Secretary of the Interior
March 17, 1980; and

WHEREAS, the Skokomish Tribal Council recognizes the need to enhance and strengthen the
development of the Skokomish Indian Tribe’s human and natural resources, and encourages
development of the Reservation, supporting community values and goals for achieving complete
self-determination as a Nation; and

WHEREAS, the Skokomish Tribal Council finds that an essential component of a truly sovereign
nation is financial self-reliance through the development of business and enterprises owned by
the Skokomish Indian Tribe to generate revenues for tribal programs benefiting the community as
a whole; and

WHEREAS, pursuant to Article IV, Section | and Article V, Sections 1(d), (e), (£), (m), (q) and
(t) of the Constitution, the Skokomish Tribal Council is the governing body of the Skokomish
Indian Tribe, and has the authority to charter and regulate corporations, cooperatives,
associations, special districts, educational and charitable institutions, political subdivisions, and
other entities; to license and regulate the conduct of business activities within the Tribe’s
jurisdiction; to establish business enterprises as branches or agencies of the Skokomish tribal
government; to enact laws and ordinances; to consult, negotiate and contract with agencies and
officers of federal, state, local and tribal governments; to provide services for the health,
education and welfare of all persons within the Tribe’s jurisdiction; and to delegate this
authority; and

WHEREAS, the Skokomish Tribal Council authorized the Skokomish Gaming Code by
Resolution No. 95-103 on October 18, 1995, and subsequent amendments to facilitate the

ORIGINAL

Resolution No. 09- \3@ Page | of 3



(d)

4.02.080

(a)

(b)

4.02.081

The Licensee has participated in Gaming Activity unauthorized by his License;
The Licensee has refused to comply with any lawful order of the Commission, the
Tribal Council, the Tribal Court, the WSGC or the WSGC arising from or relating to
Gaming.

Tribal Non-Gambling Related Offenses

Notwithstanding anything herein to the contrary, in the absence of other violations, it
shall not be automatic grounds for revocation, suspension or denial of a License for
an Indian from a federally recognized Indian tribe to have been charged and

convicted of the following non-Gaming related offenses, the occasion of which
occurred prior to U.S. Supreme Court rulings on the subject:

@ fishing or hunting offenses;

(ii) cigarette, fireworks or alcohol sales offenses; or

(iii) _ cases involving the exercise of trust or treaty rights

In the absence of other violations, activities or factors which would warrant denial,

revocation or suspension, these Indian individuals shall not be barred from licensing
solely as a result of such activities.

Facility and Operator Licenses

Criteria Which a Gaming Facility Must Meet

The Commission shall issue a Facility and Operator License to any tribally owned or tribally operated
Class II or Class III proposed Gaming Facility only if all of the following criteria are met:

(a)

(b)

(d)

(e)

S.T.C. 4.02

The proposed Gaming Facility is to be located on "Indian Lands" as defined under
this Code and 25 U.S.C. § 2703(4), and shall be in compliance with 25 U.S.C. §
2719.

The proposed Gaming Facility will have Gaming Activities as defined by this Code,
IGRA and the Compact.

The proposed Gaming Facility is authorized by a Tribal Council resolution.

The Tribe will have the sole proprietary interest and the exclusive responsibility for
the conduct of the proposed Gaming Activities within the Facility.

The resolution authorizing the proposed Gaming Activity provides that:
(6) The revenues of the proposed Gaming Activity shall be audited annually and

copies of those audits will be provided to the Commission and the National
Indian Gaming Commission.

GAMING CODE - 44


(ii)

(iv)

(vy)

(vi)

(vii)

Notorious Facts. Facts so generally and widely known to all well-
informed persons as not to be subject to reasonable dispute, or specific
facts which are capable of immediate and accurate demonstration by
Tesort to accessible sources of generally accepted authority, including but
not exclusively, facts stated in any publication authorized or permitted by
law to be made by any federal, state, or tribal officer, commission or
agency;

Request or Suggestion. Any party may request, or the Commission or the
Director may suggest, that official notice be taken of a material fact,
which shall be clearly and precisely stated, orally on the record, at any
prehearing conference or oral hearing or argument, or may make such
request to suggestion by written notice, any pleading, motion,
memorandum, or brief served upon all parties at any time before a final
decision;

Statement. Where an initial or final decision of the Commission or
Director rests in whole or in part upon official notice of a material fact,
such fact shall be clearly and precisely stated in such decision. In
determining whether to take official notice of materials facts, the
Commission or Director may consult any source of pertinent information,
whether or not furnished as it may be, by any party and whether or not
admissible under the rules of evidence;

Controversion. Any party may controvert a request or a suggestion that
official notice of a material fact be taken at the time the same is made if it
be made orally, or by a pleading, reply or brief in response to the pleading
or brief or notice in which the same is made or suggested. If any decision
is stated to rest in whole or in part upon official fact by appropriate
exceptions if such notice be taken in an initial or intermediate decision or
by a petition for reconsideration if notice of such fact be taken in a final
report. Such controversion shall concisely and clearly set forth the
sources, authority and other data relied upon to show the existence or
nonexistence of the material fact assumed or denied in the decision;

Evaluation of Evidence. Nothing herein shall be construed to preclude
the Commission or Director from utilizing their experience, technical
competence, and specialized knowledge in the evaluation of the evidence
presented to them.

4.02.046 Initial or Final Order

Every decision and order, whether initial or final, shall:

(a) Be correctly captioned as to the name of the Commission and name of proceeding;

(b) Designate all parties and counsel to the proceeding;

(c) Include a concise statement of the nature and the background of the proceeding;

S.T.C. 4.02

GAMING CODE - 28


The Commission shall not License for a Class II or Class II Gaming License, any Person who:

(a) Is under the age of 19; provided, however, that if liquor is sold on the premises that
age limitation is raised to 21.

(b) Has been convicted of or entered a plea of no contest to a gambling offense, theft,
embezzlement, fraud or misrepresentation, unless seven (7) years have passed since
the offense, and the person is a member of a federally recognized Indian tribe who
has been determined by the Tribe to be a person who is not likely again to engage in
any offensive or criminal course of conduct; or

(c) Has been convicted of or entered a plea of guilty or no contest to any other offense
related to honesty, violence, or drugs; this provision shall not apply if that person has
been pardoned by the Governor of the State where the conviction occurred or, if a
member of a federally recognized Indian tribal tribe member, has been determined by
the Tribe to be a person who is not likely again to engage in any offensive or criminal
course of conduct and the public good does not require that the applicant be denied a
License as a Key Employee or Primary Management Official; or

(d) Ifthe Commission determines that the Person has participated in organized crime or
unlawful gambling or is a Person whose prior activities, criminal record, reputation,
habits, and/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 and methods and activities in the conduct of Gaming or to
the carrying on of the business and financial arrangements incidental to the conduct
of Gaming.

(©) If the applicant is found to have knowingly supplied false or misleading information
or has knowingly omitted material information on his License application.

(63) Provided further that the Commission may, by regulations, add additional limitations
and conditions for denial of said License.

4.02.068 Scope of Class II & Class III Gaming License

A Class II & III Gaming License shall be effective only for the person to whom it is issued and only
with respect to the Gaming Facility specified in the application. Any such License may be transferred
to a new Gaming Facility only upon prior approval of the Commission, upon written request of the
Licensee identifying the proposed new Gaming Facility, its location, and the proposed Gaming
Operator thereof.

4.02.069 Requirement to Produce License Upon Request

Any person receiving a Class II & III Gaming License must carry that license upon his person during
all working hours and must produce that License upon the request of any law enforcement official
with jurisdiction over the Gaming Activity or any agent of the Tribe, the Commission, the WSGC, or
the NIGC.

4.02.070 Permanent License Revocation of Class II & If Gaming License

S.T.C. 4.02 GAMING CODE - 37


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4.02.033

Tribal Council after consultation with the Tribal attorneys.

To discipline any licensee, or other person participating in any Gaming Activity, by
ordering immediate compliance with this Code or Commission regulations, and/or
issuing disciplinary action as authorized by this Code, whenever the Commission is
notified of a violation by any such person of this Code or any other applicable law.

To issue an order of temporary closure of any Gaming Activity in the event the
Commission determines that immediate closure is necessary to protect assets or
interests of the Tribe, pursuant to Commission regulations, or whenever the
Commission shall receive information from the NIGC that a Primary Management
Official or Key Employee of a Facility does not meet the standards for being
licensed under the IGRA. Immediately upon temporary closure, a hearing will be
scheduled to determine the necessity of continued closure.

To hire and advise a Tribal Gaming Agency Director, who shall have authority as
delegated by the Commission and as delegated in this Code.

Tribal Gaming Agency Director

The Tribal Gaming Agency Director (‘Director’) shall be hired by the Tribal Manager in
consultation with the Commission. The Director shall report to the Commission on all
regulatory matters, under the proper jurisdiction of the Commission. The Director shall report
to the Tribal Council on all administrative matters including, but not limited to Commission
personnel and budget matters. Director shall be licensed as a Class II & II Gaming Licensee.
The TGA Director shall be responsible for:

(a)

(b)
(©)
(d)
©

®

4.02.034

Carrying out the daily duties of the Commission including, but not limited to,
licensing, compliance and enforcement functions of the Commission as given in this
Code; and

Hiring, firing and managing necessary staff to carry out such daily duties; and
Developing and implementing policies and procedures for such staff; and

Preparing and implementing the Annual Budget for the Commission; and

Acting as Commission staff, including coordination of regular Commission
meetings and recording of minutes; and

Other such duties as may be delegated by the Commission.

Annual Budget

The Director shall prepare an annual operating budget for all Commission activities to be approved by
the Commission, and then presented to the Council for final approval according to the Budget Code of

the Tribe.

S.T.C. 4.02

GAMING CODE - 23


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S.T.C. 4.02

“Days” means calendar days.
“Director” means the Director of the Tribal Gaming Agency.

"Educational, charitable, patriotic, veteran's, fraternal, religious, civic, or public-
spirited uses" are:

@ Uses benefiting an indefinite number of people by bringing them under the
influence of educational or cultural programs.

(ii) Uses otherwise lessening the burden of tribal government.

(iii) | Uses benefiting one or more persons suffering from a seriously disabling
disease or injury causing severe loss of income or incurring extraordinary
medical expense that is uncompensated by insurance.

(iv) | Uses for community service projects that promote the common good,
enhance the social and economic welfare of the community, and benefit an
indefinite number of people.

“Effective date” means the date a rule goes into operation.

"Electronic Games of Chance" means electronic games featuring coin drop and
payout as well as printed tabulations, whereby the software of the device
predetermined the presence or lack of a wining combination and payout. Electronic
Games of Chance are microprocessor controlled electronic devices which allow a
player to play games of chance, which may be affected by an element of skill,
activated by the insertion of a coin or currency, or by the use of a credit, and awards
game credits, cash, tokens, or replays, or a written statement of the player's
accumulated credits, which written statements are redeemable for cash.

"Eligible organization” means any nonprofit organization operated for educational,
charitable, patriotic, veterans, fraternal, religious, civic, or public-spirited uses, or for
the relief of poverty, distress, or other condition on the Skokomish Reservation.

“Emergency rule” means a rule passed in an expedited manner in accordance with
this Code.

"Equipment for games of chance." See "Gaming Apparatus."

“Filing” means the process of submitting documents to the Skokomish Tribal
Gaming Commission.

“Final rule” means the final version of a Rule crafted after a Public hearing and
consideration of all submitted comments.

"Game" or "game of chance" means any activity which falls within the broad
definition of Gaming or Gaming Activity.

GAMING CODE - 7


4,02.107 Civil Action for Penalties

In enforcing the civil infraction provisions of this Code, the Commission shall proceed, in the name of
the Tribe, by civil complaint pursuant to the provisions of this Code. The Commission in such action
shall have the burden of showing, by the preponderance of the evidence, that such Person violated the
applicable provision of this Code.

4,08.108 Seizure and Forfeiture of Property

All property utilized in violation of this Code shall be subject to seizure and forfeiture by order of the
Tribal Court pursuant to S.T.C. 3.01.065.

4.08.109 Reporting of Offenders

Upon final order of the Tribal Court in any action for criminal or civil violation under this Section, the
Clerk of the Tribal Court shall notify the Commission in writing of the final court disposition.

OPERATION OF TRIBALLY OWNED OR TRIBALLY OPERATED GAMES
4.02.110 Management by a General Manager

(a) The Tribal Council may appoint one person to serve as General Manager of each
tribally owned or tribally operated Gaming Facility. Each General Manager shall
undergo a background check by the Commission and shall obtain a Class I & I
Gaming License before commencing work. The Tribal Council shall be the direct
supervisor of the General Manager and the Tribal Council shall retain the authority to
suspend or dismiss the General Manager as it deems necessary. This provision may
only be avoided by a valid and NIGC approved Management Contract pursuant to
S.T.C. 4.02.114.

(b) The General Manager shall be responsible for managing and overseeing the day-to-
day operations of the Gaming Operation. The General Manager shall have such
authority as the Tribal Council may delegate.

(c) The General Manager shall provide a written monthly report to the Tribal Council
and Commission which details the number of patrons served, the amount of income
generated, the numbers of employees working at the Facility, a detailed description of
any patron complaints and other problems experienced at the Facility, and a written
statement of any changes in Key Employees or Primary Management Officials and all
bills which are 30 days or more past due.

(d) The General Manager shall propose and the Commission shall approve a patron's
complaint process. Each tribally owned and tribally operated Gaming Facility shall
post at least one sign in each Gaming room informing patrons that they may file
complaints directly with the Commission, and advising them of the Commission's
address and phone number.

(e) The General Manager shall be personally responsible for seeing that all Gaming

Activities are managed in accordance with tribal and federal law and that all Gaming
Activities comply with all IRS reporting requirements.

S.T.C. 4.02 GAMING CODE - 59


(ii) The proposed Gaming Activity shall comply with all IRS reporting and
filing requirements.

(iii) All of the net proceeds of the proposed Gaming Activity shall be used for the
purposes stated in this Code.

(iv) All contracts for supplies, services, or concessions for an amount in excess
of $25,000 annually (except contracts for legal and consulting services) shall
be subject to an annual independent audit.

(v) The construction or maintenance of the Gaming Facility and the operation of
the proposed Gaming Activity shall be comply with all applicable Tribal,
State and Federal laws and ordinances.

(vi) The general manager, all Primary Management Officials, and all Key
Employees have passed the background investigations and obtained the
Licenses required by this Code. Each application must state in writing that
all future Primary Management Officials and Key Employees will be
tequired to pass background investigations and obtain Class II & III Gaming
Licenses before they are hired.

(vii) | The Commission shall have the authority to regulate the proposed Gaming
Activity.

(viii) The proposed Gaming Activity shall pay to the National Indian Gaming
Commission such fees as federal law may require to be paid.

(ix) If the Gaming Activity is Class III Gaming, such Gaming Activity meets all
other criteria established by the Compact and its Amendments.

() Renewal of a Facility and Operator License must occur annually, consistent with the
fiscal year schedule of the Tribe.

(g) The Tribe shall construct, maintain and operate all Gaming Facilities in a manner
that adequately protects the environment and the public health and safety.

4.02.082 License Application Fees

No application fee shall be required for a tribally owned or tribally operated Class II or Class III
Gaming Activity.

4.02.083 License Tax

No annual license tax shall be required for a tribally owned or tribally operated Class II or Class II
Gaming Operation.

4.02.084 Form of Gaming License

Every License issued by the Commission shall include the name and address of the authorized
Licensee and the signature of an authorized officer of the Commission.

S.T.C. 4.02 GAMING CODE - 45


() A sworn statement that the Gaming Operator has complied with the Internal Revenue
Code and regulations, including written notice of customer winnings, and a statement
that the Gaming Operator shall continue to obey all tribal and federal laws and shall
hold the Commission and the Tribe harmless for failure to do 80;

(k) The description of any location at which the Gaming Activity has been conducted
and any new location which is expected to be established during the next license
period;

(0) The number of full-time equivalent persons, on an annualized basis, employed by the
operation during the past 12 months, together with a projection of the number of full-
time equivalent persons who are expected to be employed during the next license
period;

(m) The total gross proceeds of the Gaming Operator attributable directly or indirectly to
tribally licensed Gaming Activity over the preceding 12 months;

(n) A sworn statement that the Gaming Operator will continue to comply with all tribal
and federal laws applicable to the Gaming Operation;

(0) A sworn statement that the Gaming Operator and all of its Key Employees and
Primary Management Officials continue to consent to Tribal Court jurisdiction and
service of process in all matters arising from the conduct of tribally licensed Gaming
Activity;

(p) The name, address, and signature of the agent who will accept service of process on
behalf of the Gaming Operator, who must reside on the Reservation; and

(0) If the Gaming Operator is a corporation, a copy of any amendment to its Articles of
Incorporation, properly certified by the incorporating government, unless a current
copy has already been filed with the Commission.

4.02.088 Procedure to Remedy Gaming License Violation

If the Commission finds that a tribally owned or operated Gaming Activity is being operated in
violation of this Code or otherwise presents a threat to the Tribe or to the public, the Commission shall
immediately take all necessary steps to bring such activity into compliance, including, but not limited
to, closing down such activity temporarily or permanently pursuant to enforcement procedures and
Regulations duly promulgated by the Commission under this Code. An Adjucative Hearing is
required prior to any closure of a Gaming Activity, including temporary and permanent. Nothing
contained in this Code shall be construed as limiting, restraining or effecting a waiver of the Tribe or
the Tribal Council's right and authority to take appropriate action to remedy any Gaming violation
pursuant to tribal and federal law.

Vendor Licenses

4.02.089 Current and Valid Gaming or Non-Gaming Vendor License Required

S.T.C. 4.02 GAMING CODE - 47


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S.T.C. 4.02

“Notice of Proposed Rulemaking” means a published notice that informs the
public of the specific purpose of the proposed rule, the language of the proposed
tule, and notice of the public hearing and comment period.

"Participate" in any Gaming Activity means to operate, direct, finance, or in any way
assist in the establishment or operation of any class of Gaming or any site at which
such Gaming is being conducted, directly or indirectly, whether at the site in person
or off the Reservation.

"Person" means any individual, partnership, joint venture, corporation, joint stock
company, company, firm, association, trust, estate, club, business trust, municipal
corporation, society, receiver, assignee, trustee in bankruptcy, political entity, and any
owner, director, officer, or employee of any such entity, or any group of individuals
acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or otherwise, the
government of the Tribe, any governmental entity of the Tribe, or any of the above
listed forms of business entities that are wholly owned or operated by the Tribe;
provided, however, that the term does not include the federal government and any
agency thereof.

“Petition” means the process that an interested party follows when requesting the
Adoption, Amendment, or abrogation of a Rule.

"Player" means a person participating in any game, but does not include a Gaming
Operator.

"Primary Management Official" means

@ The person having management responsibility for a management contract
approved by the National Indian Gaming Commission; or

(ii) Any person who has authority:
(1) To hire and fire Gaming Employees; or
(2) To set up working policy for a Gaming Operation; or

(iii) The chief financial officer or other person who has financial management
responsibility for a Gaming Activity.

"Principal" means with respect to any management contractor:
(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;

(iii) each of its owners or partners, if it is an unincorporated business;

GAMING CODE - 10