StiIIaguam~sh Tribe of Indians

P.O. Box 277

3439 Stotuckquamish Lane

Arlington, WA 98223-0277

STILLAGUAMISH TRIBE OF INDIANS

BOARD OF DIRECTORS

RESOLUTION 2000/116

Approve Stillaguamish Gaming Act of 2000

and Authorize Tribal Chair to Seek Approval from

National Gaming Commission

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WFIEREAS, the Stillaguamish Tribe of Indians is a party to the Point Elliott Treaty of

January 22, 1855; and has been Federally Recognized since October, 1976; and

WHEREAS, the Stillaguamish Tribal Board of Directors is the duly constituted

Governing Body of the Stillaguamish Tribe of Indians, in accordance with Articles IV

and VII of the Stillaguamish Constitution; and

WHEREAS, the Stillaguamish Tribal Board of Directors acting in the best interest of its

people is embarked on a course of self determination; and

WFIEREAS, the Stillaguamish Tribe intends to conduct gaming activities on it~ tribal

lands and to regulate such gaming activities consistent with requirements under

applicable law; and

WHIER.EAS, the Stillaguamish Tribal Board of Directors wishes to take all actions

necessary to conduct such gaming activities, including the adoption of a gaming

ordinance to assure the proper regulation of such gaming activities;

NOW THEREFORE, BE IT RESOLVED, that the Stillaguamish Tribal Board of

Directors does hereby adopt the Stillaguamish Gaming Act of 2000 to establish

procedures to regulate the Tribes gaming activities and directs the Tribal Chairman to

seek its approval from the National Gaming Commission.

Resolution 2000/116

Page 1 of 2.

(360) 652-7362 FAX (360) 435-7689 (360) 435-2755 (Fisheries) SCAN 464-701 2
BE IT FURTHER RESOLVED, that the Stillaguainish Tribal Board of Directors hereby authorizes its

Chairperson, and in his absence the Vice-Chairperson or Executive Director to negotiate and execute this

resolution which shall continue until revoked by the Board of Directors.

CERTIFICATION

As Chair and Secretary of the Stillaguamish Tribal Board of Directors, I hereby certify that the above

resolution was duly adopted at a meeting of the Stillaguamish Tribal Board of Directors held on the 2O~

day of September, 2000, at which time a quorum was present and a vote of Three (3) for and Zero (0)

opposed was cast.

Z~~4/

Edward L. GOOdri~~

~

Sr., Chai4nan

Resolution 2000/116

Page 2 of 2.

Board of Directors

Edward L. Goodridge, Sr., Chair

Edward L. Goodridge, Jr., Secretary

Marlice J. DeLys, Board Member

Shawn Yanity, Vice-Chair

Sara L. Milliron, Treasurer

LaVaun Tatro, Board Member

Edward L. Goodridge,
STILLAGUAMISH TRIBE OF INDIANS

STILLAGUAMISH GAMING ACT OF 2000

The Stillaguamish Tribe of Indians, a federally recognized Indian Tribe

(Tribe), hereby enacts the following Ordinance to govern gaming activities on

Stillaguamish Tribal Lands. The Ordinance shall be known as the Stilaguamish

Gaming Act (Gaming Act). This Gaming Act and any regulations promulgated

thereunder shall constitute the entire gaming regulations for the Tribe.

Section 1. Findings and Policy

This Gaming Act is adopted by the Stilaguamish Tribal Council, pursuant to

its authority under the Tribes Constitution and By-Laws, for the purpose of

establishing the terms for gaming on Stillaguamish Tribal Lands for tribal

governmental and charitable purposes, and to develop and operate such gaming

consistent with the findings herein and in conformity with the federal Indian

Gaming Regulatory Act (25 U.S.C. § 2701 et seq (IGRA)) and regulations

promulgated thereunder, as well as other applicable laws.

The Tribe finds that:

1.1 Gaming on its Tribal Lands is a valuable means of generating

revenues that are needed for economic development, to promote Tribal selfsufficiency, economic development, employment, job training, and a strong tribal

government, and to fund and ensure essential social programs and services;

1.2 The Tribe desires to conduct certain forms of gaming to provide needed

revenues to the Tribe, and to regulate and control such gaming in a manner that

will protect the environment, the Tribes reservation, the health, security and

general welfare of the Tribe, the players, and the community; and

1.3 The Tribe desires to own all gaming on Tribal Lands, and to manage

and regulate such gaming in a manner that will adequately address such special

interests and needs of the Tribe.

Section 2. Definitions

Unless specified otherwise, terms used herein shall have the same meaning

as in IGRA, including but not limited to references to Net Revenues, Class I,

Class II, and Class III gaming, except for references to Commissioners,

Commission, or Gaming Commission, which shall mean the Stillaguamish

Gaming Commission or its Commissioners, established and described herein.

2.1 Applicant means an individual or entity that applies for a tribal

license or certification.
2.2 Closely associated independent contractor shall mean any contractor

that shares common ownership, officers or directors with any management principal

or person related thereto.

2.3 Gaming shall mean an activity in which a person stakes or risks

something of value on the outcome of a contest of chance or a future contingent

event, not under his or her control or influence, upon an agreement or

understanding that the person, or someone else, will receive something of value in

the event of a certain outcome, but shall not include bona fide business

transactions.

2.4 Gaming Activities shall mean any class I, class II, or class III gaming

activity conducted by or under the jurisdiction of the Tribe.

2.5 Gaming Commission or Tribal Gaming Agency shall mean the

Stillaguamish Gaming Commission as established herein under tribal law and

designated responsibility for carrying out the Tribes regulatory responsibilities

under IGRA, this Gaming Act, and the Gaming Compact.

2.6 Gaming Compact or Compact shall mean a class III tribal-state

gaming compact adopted by the Tribe to govern the conduct of certain Gaming

Activities on its Tribal Lands.

2.7 Gaming Contractor shall mean any person or entity that supplies

gaming devices or other gaming equipment, personnel, or services (including

gaming management or consulting services) to any gaming activity or enterprise.

2.8 Gaming Enterprise shall mean any gaming business, event,

enterprise or activity conducted by or under the jurisdiction of the Tribe.

2.9 Immediate Family or Related to shall mean persons who are the

subject individuals spouse, parents, siblings, and children (either adopted or

biological).

2.10 Key Employee shall mean a person who performs one or more of the

following functions: bingo caller, counting room supervisor, chief of security,

custodian of gaining supplies or cash, floor manager, pit boss, dealer, croupier,

approver of credit, or custodian of gaming devices including those persons with

access to cash and accounting records within such devices. If not otherwise

included, any other person whose total cash compensation is in excess of $50,000

per year, and the four most highly compensated persons in the gaming enterprise

are included in the definition of key employees. At the discretion of the Gaming

Commission, other positions or persons may be included under and subject to the

requirements for key employees.

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2.11 National Indian Gaming Commission (NIGC) shall mean the

commission established under IGRA.

2.12 Person shall mean any natural person or entity, including but not

limited to corporations, partnerships and trusts.

2.13 Primary Management Official shall mean the person who has

management responsibility for a management contract; any person who has

authority to hire and fire employees or to set up working policy for the gaming

enterprise; any chief financial officer or other person who has financial management

responsibility. At the discretion of the Gaming Commission, other positions or

persons may be included under and subject to the requirements for primary

management officials.

2.14 State shall mean the State of Washington.

2.15 State Gaming Agency shall mean the person, agency, board, or

commission, or official which the State has duly authorized to fulfill the functions

assigned to it under an applicable Gaming Compact.

2.16 Tribal Chairperson shall mean the person duly elected or selected

under the Tribes organic documents, customs, or traditions to serve as the primary

spokesperson for the Tribe.

2.17 Tribal Council shall mean the governing body of the Tribe, as set

forth in the Tribes Constitution.

2.18 Tribal Court shall mean any court established by the Tribe to hear

disputes or, if there is none, the Tribal Council.

2.19 Tribal Lands shall mean those lands on which the Tribe is authorized

under IGRA to conduct gaming.

2.20 Tribal Member shall mean any duly enrolled member of the Tribe.

Section 3. Ownership of Gaming

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

conduct of any gaming operation authorized by this Gaming Act, except to the

extent the Tribe may contract with and license a person or entity to own, operate or

manage the enterprise pursuant to the provisions of IGRA or as otherwise

permitted by law.

Section 4. Gaming Commission

4.1 Establishment of Gaming Commission There is established by the

Tribe hereby a Commission, acting under the authority of the Tribe, to be known as

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the Stillaguamish Gaming Commission. The Gaming Commission shall be

composed of three (3) members of the Tribe, all of whom shall be elected by the

Tribe. Gaming Commissioners must meet the qualifications established under this

Gaming Act and any Gaming Compact adopted by the Tribe.

4.2 Disciualifications for Office The following persons may not serve as

Commissioners:

4.2.1 Persons employed in or in connection with the management,

supervision, or conduct of any Gaming Activity on Tribal Lands;

4.2.2 Persons related to any gaming contractor (including any

principal thereof or closely associated independent contractor);

4.2.3 Persons who would not be eligible to be officers of the Tribe

pursuant to the Tribes Constitution;

4.2.4 Unless specifically provided herein, officers of the Tribe

pursuant to the Tribes Constitution are not eligible to serve on the Gaming

Commission during their term.

4.3 Terms of Office The Commissioners shall serve for three (3) year

terms, except that immediately after enactment of this Gaming Act two (2) of the

Commissioners shall serve for three (3) years, and one (1) Commissioner shall serve

for two (2) years. Commissioners may serve for more than one term.

4.4 Removal from Office Commissioners may only be removed from office

before the expiration of their terms by the Tribal Council for neglect of duty,

malfeasance or other good cause shown. The procedure for removing a

Commissioner shall be the same as for removing an officer of the Tribe.

4.5 Quorum Two (2) members of the Gaming Commission shall constitute

a quorum.

4.6 Officers and Duties The Gaming Commission shall select, by

majority vote, a Chairman, Vice-Chairman and Secretary. The Chairman shall

preside over meetings of the Gaming Commission and the Vice-Chairman shall

preside in absence of the Chairman. The Secretary shall record in writing the

minutes of all Gaming Commission meetings and all official actions taken by the

Gaming Commission.

4.7 Voting All actions of the Gaming Commission shall be taken by

majority vote. The Commission Chairperson may vote on any issue.

4.8 Meetings Meetings shall be held at least once per month, on the

second Monday of the month at 6:00 p.m. at the Tribes primary meeting facility

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(Scheduled Meetings). Any tribal member may attend Scheduled Meetings.

Scheduled Meetings may be changed at any time by the Gaming Commission, with

notice of such change posted prominently at least five (5) business days in advance

at the Office of the Gaming Commission. Additional meetings shall be held as

called by the Chairman or by at least two (2) other Commissioners. Notice of

meetings shall be given in writing to each Commissioner, served by first class mail

or personal delivery at least three (3) business days prior to such meeting; however,

meetings may be called at any time, by any means, with unanimous consent of the

Commissioners. All Commission discussions, deliberations, and votes taken

regarding specific license applications and related background investigations, or

any other investigations, and any other matter the Commission deems must be kept

confidential in order to preserve the integrity of the Gaming Enterprise or the Tribe

or to protect the privacy of the applicant, shall be held in executive session.

4.9 Compensation for Serving; Fringe Benefits; Reimbursement of

Expenses Commissioners may be compensated for serving on the Commission at

rates to be set by the Tribe. Such rates shall be approved by the Tribe or through

the Gaming Commission budget process and shall be identical for all

Commissioners. Step increases may be allowed based on length of service.

Commissioners may be entitled, at the discretion of the Tribe, to receive fringe

benefits which are available to other employees of the Tribe to the extent the

provider of such benefits qualifies Gaming Commission positions for such benefits.

Subject to approval by the Tribe and in accordance with its procedures,

Commissioners shall be reimbursed for expenses incurred in connection with the

performance of their Gaming Commission duties.

4.10 Powers and Duties

The Gaming Commission shall have the power, duty, and primary

responsibility to carry out the Tribes regulatory responsibilities under federal or

tribal law and the Compact; to enforce those requirements; and to protect the

integrity of the gaming activities and the reputation of the Tribe and the gaming

operation for honesty, fairness, and confidence of patrons, under provisions to

include the following:

4.10.1 Inspect, examine and monitor Gaming Activities and gaming

facilities, including the power to demand access to and inspect, examine, photocopy

and audit all papers, books and records respecting such.

4.10.2 Investigate any suspicion of wrongdoing or violations in

connection with any Gaming Activities, and require correction of violations as the

Gaming Commission deems necessary, including establishing and imposing fines or

other sanctions against licensees or other persons who interfere with or violate the

Tribes gaming regulatory requirements under applicable federal or tribal law or the

Compact.

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4.10.3 Conduct, or cause to be conducted, such investigations in

connection with any Gaming Activity as may be necessary to determine compliance

with law, including this Gaming Act, or with any contracts, agreements, goods,

services, events, incidents, or other matters related to the Gaming Activities.

4.10.4 Conduct, or cause to be conducted, background investigations

regarding any person in any way connected with any Gaming Activities and issue

licenses to, at minimum, all Key Employees and Primary Management Officials

according to requirements at least as stringent as those in 25 C.F.R. parts 556 and

558, as well as any employees, investors, contractors, or others required to be

licensed under standards established by the Gaming Act, IGRA, or the Compact.

4.10.5 Hold such hearings, sit and act at such times and places,

summon persons on Tribal Lands to attend and testify at such hearings, take such

testimony, and receive such evidence as the Gaming Commission deems relevant in

fulfiffing its duties.

4.10.6 Administer oaths or affirmations to witnesses appearing

before the Gaming Commission.

4.10.7 Implement and administer a system for investigating,

licensing, monitoring, reviewing, and license renewal for the gaming facility,

employees, gaming contractors and vendors, suppliers, investors, and others

connected with Gaming Activities, as described below, including the issuance of

licenses to gaming facilities, individuals and entities as required under this Gaming

Act, IGRA, or the Compact;

4.10.8 Hear disputes against the gaming establishment, in

accordance with the procedures established in this Gaming Act or the Compact.

4.10.9 Hire such staff and support services as deemed necessary,

subject to a budget approved by the Tribe.

4.10.10 To the extent required, comply with any reporting

requirements established under this Gaming Act, a Compact to which the Tribe is a

party, or other applicable law, including IGRA and regulations promulgated

thereunder.

4.10.11 Issue such regulations as it deems appropriate in order to

implement the provisions of this Gaming Act, IGRA, or the Compact, and to

promulgate rules and regulations for operation and management and ensure their

effective enforcement in areas including: enforcement of relevant laws and rules;

conduct of hearings and investigations; physical safety of patrons, employees, and

other persons in the gaming facility; physical safeguarding of assets; prevention of

illegal activity within the facility or in respect to the gaming operation including

employee procedures and surveillance systems; detention of persons who may be

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involved in illegal acts for notification of law enforcement authorities; recording of

any and all occurrences within the gaming facility; detection of employee theft,

cheating or fraud; listing of persons barred from the gaming facility; conduct of

audits; submission, approval, and maintenance of class III game rules; maintenance

and approval of surveillance system consistent with industry standards; cashiers

cage maintenance consistent with industry standards; staffing and supervisory

requirements; and technical standards for operation of gaming terminals and other

games consistent with gaming testing laboratory standards.

4.10.12 Establish and impose license fees, sanctions, fines, and

conditions, and renew licenses; deny, suspend or revoke licenses; and issue

temporary or conditional licenses as appropriate under the provisions of this

Gaming Act, IGRA, or the Compact.

4.10.13 Investigate and report violations and compliance failures as

required under this Gaming Act, IGRA, or Compact.

4.10.14 Investigate and assure compliance with any requirements for

tribal ownership, management, and control of the gaming facility and gaming

operation, including use of gaming revenues, as set forth in tribal or federal law or

the Compact.

4.10.15 Investigate and assure compliance with age restrictions for

patrons including provisions prohibiting minors in the gaming facility and age

limits on service of alcoholic beverages as provided under applicable law.

4.10.16 Issue identification cards or badges to those persons required

to be licensed and require such cards or badges to be worn at all times while in the

gaming facility.

4.10.17 Review and monitor gaming facilities on Tribal Lands, issue

certifications, and assure gaming facility compliance with any inspection and

licensing requirements under federal or tribal law, and the Compact.

4.10.18 Carry out any requirements under tribal or federal law or the

Compact for the protection of the health and safety of gaming facility patrons,

guests, and employees, including requirements that gaming facilities meet building

and safety codes duly adopted by the Tribe.

4.10.19 Carry out such other duties with respect to Gaming Activities

on Tribal Lands as this Gaming Act, IGRA, or the Compact shall direct.

4.11 Annual Reports On or before February 15 of each year, the Gaming

Commission shall provide to the Tribal Council an Annual Report summarizing its

activities during the prior twelve (12) month period ending on December 31, and

accounting for revenues, receipts and disbursements. The Tribal Council shall

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cause copies of the Annual Report to be made available to the tribal membership

within thirty (30) days after receipt.

Section 5. Permitted Gaming Activities

5.1 Unauthorized Gaming Prohibited All gaming activities on Tribal

Lands (whether class I, II or III) are prohibited except as expressly authorized

under this Gaming Act.

5.1.1 Class I Gaming Class I gaming activities are hereby permitted

to the extent consistent with tribal custom and practice. The Gaming Commission

may prohibit and prevent any conduct which is claimed to be class I gaming if the

Tribe finds that such conduct is not in accordance with tribal customs or practices

or violates IGRA or other applicable law.

5.1.2 Class II and Class III Gaming Class II and class III gaming on

Tribal Lands is hereby authorized, provided the Tribe has the sole proprietary

interest in and responsibility for the conduct of any gaming enterprise, or to the

extent the Tribe may contract with and license a person or entity to own, operate or

manage the enterprise pursuant to the provisions of IGRA or as otherwise

permitted by law. Nothing herein shall prohibit the Tribe from engaging the

services of non-tribal persons as employees thereof or engaging any person or entity

to assist the Tribe in the management of a gaming activity pursuant to a

management agreement entered into under the provisions of IGRA. Class III

gaming shall be conducted in accordance with the Compact, or any alternative

thereto as provided by IGRA.

Section 6. Gaming Revenues

6.1 Tribal Property Except as provided for under the terms of an

agreement pursuant to the provisions of IGRA or as otherwise permitted by law, all

revenues generated from any class II or class III gaming activity are the property of

the Tribe. Any profits or net revenues from gaming activities shall be deposited

into the Tribes general treasury. Once becoming part of the treasury such funds

shall lose any identity as gaming revenues except to the extent necessary to identify

them as such in order to comply with applicable law. No tribal member shall be

deemed to have any interest in such profits or net revenues, provided that the Tribe

may adopt rules for distributing gaming proceeds to tribal members on a per capita

basis provided such plan meets the requirements of IGRA, 25 U.S.C. § 2710 (b) (3).

Payments from the general treasury funds to tribal members under other tribal

programs, including those related to health, welfare, education, elderly care, and

housing, shall not be deemed to be per capita payments.

6.2 Use of Net Revenues Net revenues from gaming activities shall not

be used for purposes other than:

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6.2.1 To fund Tribal government operations or programs;

6.2.2 To provide for the general welfare of the Tribe and its Members;

6.2.3 To promote economic development for the Tribe;

6.2.4 To donate to charitable organizations; or

6.2.5 To help fund operations of local government agencies.

Section 7. Operation of Gaming Establishments

7.1 Gaming Permitted as Licensed Except to the extent authorized by an

agreement pursuant to the provisions of IGRA or as otherwise permitted by law,

Gaming Activities shall only be conducted in tribally owned, operated and licensed

facilities pursuant to the provisions of this Gaming Act. Such activities shall be

conducted in accordance with the terms and conditions of any license issued by the

Gaming Commission for such purpose as to each facility before any Gaming

Activities may occur therein. Such license investigation shall include the hours of

operation, type and scope of gaming activities allowed therein, permitted uses of the

facility for other activities, rules of conduct for employees and patrons, regulation of

alcoholic beverages, food handling and entertainment, and such other matters as

the Gaming Commission may deem necessary to the conduct of Gaming Activities

therein.

7.2 Protection of Environment and Public Construction or maintenance of

any gaming facility, and the operation of gaming therein, shall be conducted in a

manner which adequately protects the environment and the public health and

safety.

7.3 Dispute Resolution Patrons who have complaints against the

gaming establishment shall have as their sole remedy the right to file a petition for

relief with the Gaming Commission. For such purposes, disputes with any

management contractor or its employees shall be made to the Gaming Commission,

and such shall be the exclusive remedy for patron complaints. Complaints shall be

submitted in writing and, at the discretion of the Gaming Commission, the

petitioner may be allowed to present evidence. The Gaming Commission will

render a decision in a timely fashion and all such decisions will be final when

issued. Any patron having a claim against the gaming establishment or a

management contractor or its employees must submit such claim to the Gaming

Commission within thirty (30) days of its occurrence. All claims by patrons shall be

limited to a maximum recovery of $10,000 per occurrence, and a cumulative limit of

$20,000 per patron in any twelve (12) month period.

Section 8. Audits

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Annual Audits Annual outside auditing by a recognized independent

accounting firm shall be conducted of each gaming activity and the results thereof

reported to the Tribal Members and, to the extent required by law, the Bureau of

Indian Affairs and the National Indian Gaming Commission (NIGC) or another

entity.

Section 9. Audit Requirements

All contracts for supplies, services, or concessions for a contract amount in

excess of $25,000 annually (except contracts for professional legal or accounting

services) relating to class II or class III gaming on Tribal Lands shall be subject to

independent audits, and such contracts shall so specify.

Section 10. Licenses

10.1 Licensing Requirements It is the declared policy of the Tribe that all

gaming activities be licensed and controlled so as to protect the morals, good order

and welfare of tribal members and other persons on Tribal Lands and to preserve

the honesty, fairness and integrity of such gaming activities. Accordingly, no

person shall engage in any class II or class III Gaming Activities on Tribal Lands

without an appropriate and valid independent class II or class III license which

meets the standards set forth in this Gaming Act, IGRA, and those established

under the Compact, and which license is issued by the Gaming Commission. Any

gaming license, or finding of suitability or approval, which is issued by the Gaming

Commission, shall be deemed a privilege subject to suspension or revocation. No

license shall be issued that would place the Tribe in violation of an applicable law or

the Compact.

10.2 Burden on Applicant The burden of proving an applicants

qualification to receive any license hereunder is at all times on the applicant.

Applicants must accept any risk of adverse public notice, embarrassment or other

action which may result from the application process and expressly waive any claim

for damages as a result thereof.

10.3 Applicant Claim of Privilege An applicant may claim any privilege

afforded by law in connection with a gaming license application or investigation, but

a claim of privilege with respect to any testimony or evidence pertaining thereto

may constitute sufficient grounds for denial, suspension or revocation.

10.4 Release of Information All persons applying for a license shall agree

to release all information necessary in order for the Gaming Commission to achieve

its goals under this Gaming Act, and to furnish such information to the Bureau of

Indian Affairs, the NIGC, or such other governmental agency as may be required by

law or the Compact.

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10.5 Types of Licenses Two classes of licenses (Class A and Class B) shaH

be issued to persons associated with gaming activities, and a facility license shall be

issued to any facility where gaming activities are conducted on Tribal Lands. All

licenses issued must be in compliance with the requirements of this Gaming Act,

IGRA, and any applicable Gaming Compact. The Gaming Commission, in its sole

discretion, may also require and issue a license to any person or entity associated

with other tribal businesses that are not part of the gaming facility and not

operated in conjunction therewith.

10.5.1 Class A Licenses Before permitting any person to become

permanently associated with any Gaming Activity as an investor or other person

owning or controlling 10% or more of any interest in any management entity, or any

primary management official, key employee, closely associated independent

contractor, or other individual or entity with influence over the management or

operation of the gaming, or a class II or III gaming employee, supplier,

manufacturer or distributor, such person shall obtain a class A license. The

Gaming Commission, in its sole discretion, is authorized to require persons

employed in any gaming related position to hold a valid class A license. The

Gaming Commission shall conduct or cause to be conducted a background

investigation to determine if such person has:

10.5.1.1 Any criminal record or any reputation, prior activities,

habits or associations which might pose a threat to the public interest or to

the effective regulation of gaming;

10.5.1.2 Anything else in their background which might create

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

and activities in the conduct of gaming.

Persons who do not meet the above qualifications shall be denied a Class A

license.

10.5.2 Class B Licenses Persons who are not among those identified

in subsection 10.5.1 above, but are to be employed at a gaming facility on Tribal

Lands in other gaming related positions or in non-gaming activities, shall be

required to obtain a Class B license from the Gaming Commission. Such persons

must establish that they have not been convicted of a crime, or engaged in any

activity, which the Gaming Commission, in its sole discretion, deems would render

such person a danger to the safety or integrity of the Gaming Activities or the safety

or property of the Tribe, any tribal member, gaming employee, patron or the public.

10.5.3 Facility Licenses Any tribal gaming facility shall be inspected,

licensed, certified and monitored under the provisions of this Gaming Act, IGRA,

and the Compact.

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10.5.4 Vendor Licenses Vendors, suppliers, and other entities doing

business with the gaming enterprise shall be required to obtain a license from the

Gaming Commission under the process established in the Stilaguamish Gaming

License Regulations and Background Investigation Procedures. Vendor licenses

shall meet all requirements of tribal and federal laws and regulations and the

Compact.

10.6 License Renewal All Class A and Class B licenses shall be subject to

renewal at least every two years, and more frequently if so required by the Gaming

Commission, other applicable law, or the Compact. Such licenses may be revoked or

suspended upon the occurrence of any act which, if known during the application

process, would have tended to disqualify such person for such a license.

10.7 Temporary Licenses Pending completion of an investigation for a

license, temporary licenses of no more than ninety (90) days duration may be issued

by the Gaming Commission if, in its sole discretion, it deems it appropriate to do so.

Such licenses shall permit the licensee to engage in such activities and pursuant to

such terms and conditions as may be specified by the Gaming Commission. Such

temporary licenses shall expire ninety (90) days from date of issuance, upon

issuance of a regular license, or until an established expiration date, whichever

occurs first.

10.8 License Investigations The Gaming Commission may employ all

reasonable means, including engaging outside services and investigators, and

convening hearings, to acquire the information necessary to determine whether or

not a license should be issued. Applicants shall also agree to release all information

necessary in order for the Gaming Commission to achieve its goals under this

section and to furnish such information to the Gaming Commission, the NIGC or

other federal agency, or such other agency as may be required by law or the

Compact.

10.9 License Fees Unless specifically waived in advance by the Gaming

Commission, all persons applying for a class A or B license shall be required to pay

all applicable license fees and costs when due, including a reasonable deposit for

costs incurred in obtaining information in connection with the license application.

Estimates of licensing costs shall be provided to applicants within a reasonable

period of time after a request is made. Unless otherwise provided for in advance, all

fees and costs must be received by the Gaming Commission prior to issuance of the

license.

10.10 Standards All persons engaged by or associated with any gaming

activity on Tribal Lands shall conduct themselves with honesty, integrity, and with

such decorum and manners as may be necessary to reflect positively on the Tribe,

its members and the Gaming Activities. Any failure to abide by such standards, or

any violation of any rule, ordinance, custom or tradition of the Tribe, the

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reservation, or the Gaming Activities, or the terms or conditions of the license, may

be grounds for immediate suspension or revocation of any license issued hereunder.

10.11 Appeals All decisions of the Gaming Commission regarding the

issuance of licenses shall be final and effective when issued; provided, within fifteen

(15) days of the receipt of the written decision regarding denial of the license, the

applicant may file a petition for reconsideration with the Gaming Commission. Any

Tribal Member denied a license has thirty (30) days from receipt of the written

decision to appeal the denial to the Gaming Commission. No license may be issued

on appeal if such issuance would place the Tribe in violation of the Compact or

other applicable law.

10.12 Background Investigations

10.12.1 The Gaming Commission shall request from each primary

management official, each key employee, and all other Class A license applicants,

all of the information set forth in subsections 10.12.1.1 through 10.12.1.14 below, as

well as any other information required on the gaming license application. The

Gaming Commission reserves the right, at any time, to request additional

information either prior to, during, or subsequent to the initial application or any

background investigation.

10. 12.1.1 Full name, other names used (oral or written), social

security number(s), date of birth, place of birth, citizenship, gender, all languages

(spoken or written);

10. 12.1.2 Currently and for at least the previous five (5) years:

business and employment positions held, ownership interests in those businesses,

business and residence addresses and drivers license number(s);

10. 12.1.3 Names and current addresses of at least three (3)

personal references, including one personal reference who was acquainted with the

applicant during each period of residence as listed under subsection 10.12.1.2 above;

10.12.1.4 Current business and residence telephone numbers;

10. 12.1.5 Description of any existing and previous business

relationships with the gaming industry generally, including ownership interests in

those businesses;

10. 12.1.6 A description of any existing and previous business

relationships with Indian tribes, including ownership interests in those businesses;

10. 12.1.7 Name and address of any licensing or regulatory

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

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

13
10.12.1.8 For each felony for which there is an on-going

prosecution or a conviction: the charge, the name and address of the court involved,

and the date and disposition, if any, of the case;

10.12.1.9 For each misdemeanor conviction or on-going

misdemeanor prosecution (excluding minor traffic violations) within ten (10) years

of the date of the application: the name and address of the court involved, and the

date and disposition, if any, of the case;

10.12.1.10 For each criminal charge (excluding minor traffic

charges), whether or not there is or was a conviction, if such criminal charge is

within ten (10) years of the date of the application and is not otherwise listed above

pursuant to subsections 10.12.1.8 or 10.12.1.9 above: the criminal charge, the name

and address of the court involved and the date and disposition, if any, of the case;

10.12.1.11 Name and address of any licensing or regulatory

agency (federal, tribal, state, local or foreign) with which the person has filed an

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

permit was granted;

10.12.1.12 Current photograph;

10.12.1.13 Any other information the Tribe or Gaming

Commission deems relevant; and

10.12.1.14 Fingerprints consistent with procedures adopted by

the Gaming Commission according to 25 C.F.R. § 522.2(h).

10.12.2 The Gaming Commission shall conduct or cause to be

conducted an investigation sufficient to make a determination of eligibility as

required under this Gaming Act. In conducting the background investigation, the

Gaming Commission and its agents shall promise to keep confidential the identity

of each person interviewed in the course of the investigation.

10.13 Eligibility Determination The Gaming Commission shall review a

persons prior activities, criminal record, if any, and reputation, habits and

associations to make a finding concerning the eligibility of a key employee or

primary management official for employment in a gaming operation. If the Gaming

Commission determines that employment of the person poses a threat to the public

interest or to the effective regulation of gaming, or creates or enhances dangers of

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

gaming, that person shall not be employed by the gaming facility in a key employee

or primary management official position or in any other position for which a class A

license is required, unless otherwise specifically approved by the Gaming

Commission.

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10.14 Forwarding Licensing Applications and Reports to NIGC

10.14.1 Unless otherwise provided by the NIGC, on or before the date

any key employee or primary management official is employed by a Gaming

Enterprise authorized under this Gaming Act, the Gaming Commission shall

forward to the NIGC the persons completed application for employment containing

the information required above under section 10.12.1 of this Gaming Act.

10.14.2 Prior to issuing a license to a primary management official or

key employee, the Gaming Commission shall forward to the NIGC, together with a

copy of the eligibility determination made under subsection 10.13 above, an

investigative report on each background investigation. The investigative report on

each background investigation shall be forwarded to the NIGC within sixty (60)

days after the employee begins work, or within sixty (60) days of the approval of

this Gaming Act by the NTGC. The Gaming Enterprise shall not employ or continue

to employ any person as a key employee or primary management official who does

not have a license within ninety (90) days of beginning work.

The investigative report shall include the following information:

10.14.2.1 Steps taken in conducting a background

investigation;

10.14.2.2 Results obtained;

10.14.2.3 Conclusions reached; and

10.14.2.4 The bases for those conclusions.

10.14.3 The Tribe shall provide to the NIGC, or other agency as

required, any other reports and information required by IGRA and regulations

promulgated thereunder. Further, with respect to key employees and primary

management officials, the Gaming Commission shall retain applications for

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

NIGC for no less than three (3) years from the date of termination of employment.

10.14.4 If a license is not issued to an applicant, the Gaming

Commission shall notify the NIGC and may forward copies of its eligibility

determination and investigative report (if any) to the NIGC for inclusion in the

Indian Gaming Individuals Records System.

10.15 Granting a Gaming License

10.15.1 If, within a thirty (30) day period after the NIGC receives a

report as required under subsection 10.14 above, the NIGC notifies the Tribe that it

has no objection to the issuance of a license pursuant to the license application filed

15
for a key employee or primary management official for whom the Tribe has provided

an application and investigative report, the Gaming Commission may issue the

license.

10.15.2 The Gaming Commission shall provide any additional

information requested by the NIGC concerning a key employee or primary

management official who is the subject of a report as required under this

subsection. An NIGC request for additional information shall suspend the thirty

(30) day period established under subsection 10.15.1 above until the NIGC receives

the additional information.

10.15.3 If, within the thirty (30) day period established under

subsection 10.15.1 above, the NIGC provides a statement itemizing objections to

issuance of a license to a key employee or primary management official, the Gaming

Commission shall reconsider the application, taking into account such objections.

The Gaming Commission retains the right to make the final determination whether

to issue the license to such applicant.

10.16 License Suspension

10.16.1 If, after issuance of a gaming license, the Tribe receives

reliable information from the NIGC or other reliable source indicating that a key

employee or a primary management official is not eligible for employment under the

eligibility criteria established in section 10 above, the Gaming Commission shall

suspend the license and shall notify the licensee in writing of the license suspension

and proposed revocation.

10.16.2 The Gaming Commission shall notify the licensee of a time

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

10.16.3 After the revocation hearing, the Gaming Commission shall

determine whether to revoke or to reinstate the gaming license. For actions taken

in response to information provided by the NIGC, the Gaming Commission shall

notify the NIGC of its decision.

10.17 Facilities Licenses Before gaming activities can be conducted therein,

the Gaming Commission shall inspect and license each such facility in compliance

with the requirements of this Gaming Act, IGRA, and the Compact.

Section 11. Application Forms

11.1 Each application form for a key employee or a primary management

official, as well as for all other Class A license applicants unless otherwise

specifically exempted by the Gaming Commission, shall contain the notices set forth

in subsections 11.1.1 and 11.1.2 below:

16
11.1.1 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 a gaming operation. The information will be used

by National Indian Gaming Commission members and staff who have need for the

information in the performance of their official duties. The information may be

disclosed to appropriate Federal, Tribal, State, local, or foreign law enforcement and

regulatory agencies when relevant to civil, criminal or regulatory investigations or

prosecutions or when pursuant to a requirement by a Tribe or the National Indian

Gaming Commission in connection with the hiring or firing of an employee, the

issuance or revocation of a gaming license, or investigations of activities while

associated with a Tribe or a gaming operation. Failure to consent to the disclosures

indicated in this notice will result in a Tribes being unable to hire you in a primary

management official or key employee position.

The disclosure of your Social Security Number (SSN) is voluntary.

However, failure to supply a SSN may result in errors in processing your

application.

11.1.2 Notice ReEarding False Statements

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, § 1001)

11.2 Any existing key employee or primary management official, or other

class A licensee unless otherwise specifically exempted by the Gaming Commission,

shall be notified that they shall either:

11.2.1 Complete a new application form that contains the Privacy Act

notice and the notice regarding false statements; or

11.2.2 Sign a statement that contains the Privacy Act notice and

consent to the routine uses described in that notice, and sign a statement that

contains the notice regarding false statements.

Section 12. Class III Gaming; Tribal-State Compacts

In addition to the provisions set forth above, no class III gaming shall be

engaged in on Tribal Lands unless a Gaming Compact has first been obtained in

accordance with the IGRA. All negotiations for such compacts shall be conducted

through the Chairperson of the Tribe, with the advice and suggestion of the Gaming

Commission, and shall be finalized only upon the majority vote of the tribal

membership after consideration of the terms of such Gaming Compact. In the event

17
the Tribe approves a Gaming Compact, the provisions of such Gaming Compact,

once approved under IGRA, shall govern over the provisions herein, to the extent

the Gaming Compact is inconsistent herewith.

Section 13. Interest in Management Contracts by Tribal Officials

No elected official of the Tribe, including the Gaming Commission or any

other committee or agency of the Tribe, shall have a financial interest in or

management responsibility for, any management agreement entered into pursuant

to IGRA, nor shall such elected official serve on the board of directors or hold

(directly or indirectly) ten percent (10%) or more of the issued and outstanding stock

of any corporation, or 10% or more of the beneficial interest in any partnership,

trust, or other entity, in any such corporation, partnership, trust or other entity,

having a financial interest in, or management responsibility for, such contract.

Section 14. Service of Process

The Tribe designates as its agent for the service of any official determination,

order, or notice of violation, the Chairperson of the Tribe.

Section 15. Tribal Gaming Corporation

Nothing in this Gaming Act shall prevent the Tribe from delegating the

authority to conduct gaming to one or more tribal corporations, so long as the tribal

gaming enterprises to which such authority is delegated agree to meet all

requirements established under this Gaming Act.

Section 16. Repeal of Prior Gaming Ordinances; Effective Date

This Gaming Act and regulations promulgated thereunder shall constitute

the entire gaming regulations of the Tribe. All prior gaming ordinances and

regulations of the Tribe are repealed, and this Gaming Act shall become effective

upon its adoption.

Section 17. Severability

If any provision or application of this Gaming Act is determined by review to

be invalid, such determination shall not be held to render such provision

inapplicable to other persons or circumstances, nor shall such determination render

invalid any other provision of this Gaming Act.

Section 18. Amendments

Afl provisions of this Gaming Act are subject to amendment by the Tribal

Council. Regulations promulgated by the Gaming Commission under this Gaming

Act are subject to amendment by the Gaming Commission.

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Section 19. Sovereign Immunity Preserved

Nothing in this Gaming Act is intended or shall be construed as a waiver of

the sovereign immunity of the Tribe, and no manager, officer, or employee of the

Gaming Commission or the Tribe or the gaming facility shall be authorized, nor

shall they attempt, to waive the immunity of the Tribe.

19
p p *

STILLAGUAMISH GAMING COMMISSION

BACKGROUND INVESTIGATION

and

LICENSING REGULATIONS

Under the Stifiaguamish Gaming Act of 2000

Section 1. LICENSING PROGRAM OVERVIEW

The Stillaguamish Tribe of Indians (Tribe) gaming licensing program is

administered through the Stillaguamish Gaming Commission (Gaming

Commission). It is an investigative licensing process under which applicants for a

class III or class II gaming license are evaluated against the standards set forth in,

and subject to the following applicable laws:

1.1 Stillaguamish Gaming Act of 2000 (Gaming Act), and gaming

regulations promulgated thereunder;

1.2 Indian Gaming Regulatory Act (IGRA) and National Indian Gaming

Commission (NIGC) regulations;

1.3 Tribal-state compact requirements, to the extent applicable; and

1.4 Other applicable tribal, federal or state laws and regulations.

All class II and class III gaming activities shall be licensed and regulated.

All those engaged in gaming activities on the Reservation must have a valid license

issued by the Gaming Commission. As part of the licensing program, the Gaming

Commission may, at any time, require drug or alcohol testing for applicants and

licensees. Applicants who meet the standards for licensing will be granted a

license, which must be renewed at least every two years. A gaming license is

deemed a privilege that is subject to suspension or revocation at any time.

Section 2. LICENSE APPLICATION REQUIREMENTS

All key employees, primary management officials and employees and others

required under the Compact must be licensed by the Tribe. Persons and entities

seeking a license may obtain the Gaming Commission application forms at the

Gaming Commission office. The completed forms, with fees and other required

1
V

information and attachments must be returned to the Commission office. Unless

otherwise exempted by the Gaming Commission in compliance with all

requirements under the Ordinance, IGRA and regulations promulgated thereunder,

an individual or entity required to be licensed must obtain the required license

(regular, temporary, provisional, or conditional) prior to the commencement of their

employment at any Tribal Gaming Enterprise.

2.1 Completing Applications

An application is not deemed complete until the Gaming Commission

receives all information required or requested, and any applicable fees. If the

application is incomplete and applicant does not respond to written notification of

such, or fails to submit additional materials or fees within thirty (30) days of

written notice, the Gaming Commission may deny the license, revoke any license

held, and close the applicants file.

2.2 Signatures Required

Applications must be signed by the persons indicated below, under

oath, attesting that the information provided in the application and accompanying

materials is true, accurate and complete.

2.2.1 For a corporation (non-profit or for profit), the highest ranking

officer or official of the corporation.

2.2.2 For a sole proprietorship, the principal owner.

2.2.3 For a partnership, all partners; for a limited partnership, the

general partner.

2.2.4 For employee licenses, the person seeking a license.

2.3 Additional Signatures

The Gaming Commission may also require the signature of the

following persons on the application:

2.3.1 The chair or members of the board of directors or trustees.

2.3.2 The person in charge of financial records.

2.3.3 Any person with a substantial interest in the applicants

business, organization or corporation.

2.4 Class A and B License Application Information

2
All Class A and Class B license applicants, unless specifically

exempted by the Gaming Commission in compliance with IGRA, regulations

promulgated thereunder, and the Compact, shall provide licensing information

including but not limited to the following:

2.4.1 Full name, current address and telephone number(s) (both

business and residence), date and place of birth, social security

number(s), any other names used (oral or written), citizenship, gender,

and all languages spoken or written;

2.4.2 The name, address, and telephone number for businesses and

organizations in which the applicant has any financial interest and the

details of that financial interest;

2.4.3 Criminal, personal, and financial history information required

by the Gaming Commission;

2.4.4 Currently and for at least the previous ten (10) years: business

and employment positions held, ownership interests in those

businesses, business and residence addresses, and drivers license

numbers;

2.4.5 Names and current addresses of at least three (3) personal

references, including one personal reference who was acquainted with

the applicant during each period of residence listed in subsection 2.4.4

above;

2.4.6 Description of any existing and previous business relationships

with Indian tribes, including ownership interests in those businesses;

2.4.7 Description of any existing and previous business relationships

with the gaming industry generally, including ownership interests in

those businesses;

2.4.8 Name and address of any licensing or regulatory agency

(federal, tribal, state, local or foreign) with which the person has ever

filed either: (a) an application for a license or permit related to gaming,

whether or not such license or permit was granted, or (b) an

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

license or permit was granted;

2.4.9 For each felony for which there is currently or has been, during

at least the previous ten (10) years, an on-going prosecution or a

3
conviction: the charge, the name and address of the court involved,

and the date and disposition, if any, of the case;

2.4.10 For each misdemeanor conviction or on-going prosecution

(excluding minor traffic violations for which the fine is no more than

twenty-five dollars ($25.00)), within at least ten (10) years of the date

of the application: the name and address of the court involved, and the

date and disposition, if any, of the case;

2.4.11 For each criminal charge (excluding minor traffic charges),

whether or not there is or was a conviction, if such criminal charge is

within no less than ten (10) years of the date of the application and is

not otherwise listed in 2.4.9 or 2.4.10 above: the criminal charge, the

name and address of the court involved and the date and disposition, if

any, of the case;

2.4.12 Current photographs;

2.4.13 Fingerprints consistent with procedures adopted by the Gaming

Commission under 25 C.F.R. § 522.2(h) and the Ordinance;

2.4.14 Corporate applicant articles of incorporation and by laws or, for

other business or organization, those documents which establish the

entitys organizational structure and purposes;

2.4.15 Details and copies of franchise or other agreements, whether

written or oral, between the applicant and distributors or

manufacturers or suppliers of equipment, or between the applicant and

any person or entity where those agreements related to gaming

activities or gaming equipment; and

2.4.16 Any other information the Gaming Commission deems relevant.

2.6 Release of Information / Waiver of Privilege

Applicants must provide a general release and waiver of any privilege

in connection with the release of information for the purpose of a background or

other investigation investigation so the Gaming Commission may obtain

information, including that which otherwise may be privileged.

2.7 Waiver of Liability

Applicants must expressly waive liability as to the Tribe and its

agencies, commissions, employees, and agents for any damages resulting from

4
disclosure or publication of the information acquired by the Gaming Commission

during licensing, or other investigation, inquiry or hearing.

2.8 Fingerprinting and Investigation

Background investigations (including fingerprinting) are required for

Class A license applicants. Class A may include but is not limited to employees;

persons or entities with an interest in supplies or equipment; financiers; suppliers;

consultants; distributors; vendors; and manufacturers. The Gaming Commission

may submit fingerprints to the Federal Bureau of Investigation (FBI), the NIGC, or

another tribal, federal, local, or state agency to obtain applicants criminal

information records, and may otherwise search records of such agencies for criminal

background information.

2.9 Supplemental Licensing Information

In addition to the completed application form and attachments,

applicants and licensees must submit any supplemental information requested by

the Gaming Commission. Information must be provided within thirty (30) days

from the date of request, unless a shorter time is otherwise established by the

Gaming Commission. Failure to submit requested information in a timely manner

shall be grounds for denial of the license sought, or revocation of any license held.

2.10 Drug and Alcohol Testing

The Tribe intends to operate its gaming activities in a drug and alcohol

free workplace. Drug or alcohol testing may be required at any time for any

applicant or licensee, under provisions of a drug and alcohol policy.

2.11 Continuing Duty to Provide Information

Applicants and licensees have a continuing duty to provide any

materials or other information required by the Gaming Commission, and to fully

cooperate in any investigation conducted by or on behalf of the Gaming

Commission. Any information relevant to the license applicant or licensees

suitability for gaming shall be provided to the Gaming Commission, with or without

a formal request. If information provided on the license application changes or is

inaccurate, applicants and licensees must promptly notify the Gaming Commission

of such changes or inaccuracies. If, subsequent to a formal request to respond or

produce information, evidence, or testimony, an applicant or licensee or a person

associated with the applicant or licensee, refuses or fails to comply with such

request, the Gaming Commission may deny the application or revoke the license.

5
2.12 License in Compliance with Law

No gaming license shall be granted in violation of the Gaming Act or

other applicable law, including IGRA and regulations promulgated thereunder, or a

Gaming Compact.

2.13 Burden of Proof- Licensing

The burden of proof with respect to the granting of any gaming license

is at all times upon the applicant or licensee. No license shall be granted unless

and until the applicant has satisfied the Gaming Commission of their suitability to

hold such license.

2.14 Determination of Suitability

Application for a gaming license constitutes a request for

determination of the applicants general character, honesty, integrity, and

suitability to participate or engage in or to be associated with the gaming operation.

Any written or oral statement made in the course of a Gaming Commission

investigation, proceeding, or process by any member, employee or agent of the Tribe

or by any witness, testifying under oath, which is relevant to the investigation,

proceeding, or process, is privileged and shall not impose any liability for slander,

libel or defamation, or constitute grounds for recovery in any legal action.

Applicants must accept all risk of adverse public notice, embarrassment or other

action which may result from the licensing process, and must waive any claim for

damages.

2.15 Applicant Claim of Privilege

During the licensing process or subsequent investigation, the applicant

or licensee may claim any privilege afforded by law in connection with the

application or investigation. Applicants claim of privilege, however, with respect to

any testimony or evidence, or the applicants failure to produce documents or

information required, may be grounds for denial, suspension, or revocation of a

license.

2.16 Withdrawal of Application

Gaming applicants may request withdrawal of the application by

submitting a written request to the Gaming Commission. The Gaming Commission

may, in its sole discretion, grant or deny a request for withdrawal. The written

request to withdraw an application should be received by the Gaming Commission

at least twenty-four (24) hours prior to issuance or denial of the license.

6
Section 3. AUTHORIZED GAMING LICENSE CLASSES

3.1 Class A

Any license issued to a person or entity for employment in, association

with, or to do business with any class II or class III gaming operation in a gamingrelated capacity, shall be considered a Class A license. Further, any person

associated with the Tribes class II or class III gaming activities as an investor or

other person owning or controlling ten percent (10%) of an interest in any

management entity, closely associated independent contractors, and primary

management officials and key employees must obtain a Class A license.

3.2 Class B

Persons or entities not otherwise subject to the provisions of Section

12.0 of these regulations who are associated with, or doing business with a gaming

activity or enterprise in a non-gaming related capacity may apply for a Class B

license. The Gaming Commission reserves the right to require such persons or

entities to be licensed under the requirements for a Class A license.

Section 4. LICENSING PROGRAM

All persons employed in class II or III gaming or gaming related activities

either within or outside of the gaming operation and, unless exempted, employees

involved in the gaming operation in a non-gaming position must be licensed

(temporary, provisional, conditional or regular license) prior to beginning

employment or conducting business with the gaming operation. Management

companies and financiers; and unless otherwise exempted, suppliers, distributors,

manufacturers, and vendors shall be licensed. The Gaming Commission shall

inspect and license all gaming facilities. All licensing shall be in compliance with

applicable law, including tribal law and regulations, IGRA and regulations

promulgated thereunder, and any applicable Gaming Compact.

4.1 Key Employees

Class II or III gaming employees including but not limited to those who

perform one or more of the following functions are considered Key Employees, and

must obtain a Class A license: bingo caller; counting room supervisor; chief of

security; custodian of gaming supplies or cash; floor manager; pit boss; dealer;

croupier; approver of credit; or custodian of gambling devices, including persons

with access to cash and accounting records within such devices. If not otherwise

included, all persons whose total cash compensation exceeds $50,000 per year and

the four (4) most highly compensated persons in the gaming operation must qualify

7
for a Class A license. The Gaming Commission may, in its sole discretion, include

other positions within the definition of Key Employee.

4.2 Primary Management Officials

Primary Management Officials associated with a Class II or a Class III

gaming enterprise are required to qualify for a Class A license and include: any

person having management responsibility for a management contract; any person

who has authority to hire and fire employees or to set up working policy for the

gaming operation; and the chief financial officer or other person who has financial

management responsibility. The Gaming Commission may, in its sole discretion,

include other positions within the definition of Primary Management Official.

4.3 Gaming Commission Licenses

The Gaming Commission may issue the following licenses:

4.3.1 Class III Gaming Employee License

Persons employed in class III gaming activities, including

banking card games, lottery-type games, roulette, craps, and other

table games or activities designated as class III gaming, and including

all class III key employees and primary management officials, must

qualify for and hold a Class A gaming employee license.

4.3.2 Class II Gaming Employee License

Persons employed in or associated with class II gaming

activities, including bingo, non-banking or other class II card games,

pulitabs, punchboards, or other Class II gaming activities, as well as

any class II key employee or primary management official, must

qualify for and hold a Class A gaming employee license.

4.3.3 Employee License - Non-Gaming

Persons employed in a class II or class III gaming facility in a

non-gaming related position including but not limited to facilities

maintenance and food services employees, must qualify for and hold a

Class B license.

4.3.4 Vendor Employee

Persons employed by a vendor, supplier, or other service

provider who work within the gaming facility may also be required to

8
complete an application for licensing or registration under the

provisions of Section 12.0 of these regulations.

4.3.5 Management Company / Financiers

4.3.5.1 Persons or entities with which the Tribe enters into

an agreement for financing, development, management or

operation of any class II or III gaming operation, must qualify

for a Class A license, and are subject to the requirements set

forth in Section 12.0 of these regulations. The Gaming

Commission may issue a license to any such persons and entities

without further investigation if they hold a valid certification or

license from the NIGC. The federal government, commercial

lending institutions, and tribal governments that extend

financing (directly or indirectly) to the gaming operation are

exempt from the licensing requirements, unless otherwise

required by the Gaming Commission.

4.3.5.2 No license shall be granted to a management

company if any elected official of the Tribe, or a member of the

Gaming Commission serves on the board of directors or holds

(directly or indirectly) ten percent (10%) or more of the issued

and outstanding stock of the corporation, or ten percent (10%) or

more of the beneficial interest in any partnership, trust, or other

entity, in any such corporation, partnership, trust or other

entity that has a financial interest in or management

responsibility for such contract. No license shall be granted if

an elected official of the Tribe, member of the Gaming

Commission, or a member of another committee or agency of the

Tribe has a financial interest in or management responsibility

for any other agreement between the management company and

the Tribe.

4.3.5.3 No management company shall be granted a

license if the Gaming Commission determines that the company

or its agents have unduly interfered with or influenced for their

advantage any decision or process of tribal government relating

to the gaming operation or has deliberately or substantially

failed to follow the terms of the management contract or the

Tribes gaming laws.

4.3.5.4 The Gaming Commission, in its sole discretion,

may require any employee, officer, or director of a management

9
or financing company to be licensed individually if the interest of

the Tribe will be served by such licensing. Upon Gaming

Commission request, the management or financing company

shall require such persons to apply to the Gaming Commission

for a license in accordance with the laws and regulations then in

effect.

4.3.6 Suppliers, Distributors and Manufacturers

Manufacturers, distributors, and suppliers of gaming services or

goods are subject to the requirements set forth in Section 12.0 of

these regulations.

4.3.7 Gaming Facility

4.3.7.1 The Gaming Commission shall issue a license to

each facility where class II or III gaming is conducted on the

Reservation. A gaming facility license is valid for two (2) years

from date of issuance unless otherwise revoked, suspended or

invalidated. The licensing inspection may include but is not

limited to security and surveillance procedures and equipment;

and compliance with all applicable law and regulations;

including those relating to safety, food handling, and

environmental matters.

4.3.7.1 The Gaming Commission may inspect a licensed

gaming facility at any time, with or without prior notice, and

may take action to:

4.3.7.1.1 Ensure the safety and welfare of employees,

tribal members, patrons, and the general public;

4.3.7.1.2 Ensure the honesty and integrity of any

gaming activity offered;

4.3.7.1.3 Ensure the conduct of employees and patrons

is regulated and that operation and regulation of gaming

activities, food and beverages, entertainment, and other

matters as the Gaming Commission shall determine,

complies with applicable law; and

4.3.7.1.4 Ensure compliance with all other applicable

laws and regulations.

10
4.3.8 Renewal

The Gaming Commission shall require applicants renewing a

license to submit updated information as requested on the license

renewal application. Applicants for renewal will not be required to re

submit historical data already available to the Gaming Commission.

Unless otherwise specifically provided in these regulations, all licenses

shall be effective for two (2) years from the date of issuance, unless

revoked, suspended, or otherwise invalidated prior to expiration. A

licensee that has applied in a timely manner to renew a license may

continue to be employed or provide goods or services under an expired

license until the Gaming Commission takes action to grant or deny the

license, or until the license is revoked, suspended, or otherwise

invalidated.

4.3.9 Temporary, Provisional, or Conditional

The Gaming Commission may grant to any license applicant a

temporary, provisional, or conditional license in lieu of a regular

license pending completion of the background investigation and

application review, or to address specific areas of concern. The

expiration date and any applicable conditions to be satisfied prior to

issuance of the regular license will be stated on the temporary,

provisional, or conditional license. The Gaming Commission will not

authorize the continuation of employment of a person as a Key

Employee or Primary Management Official for more than ninety (90)

days, unless that person or entity holds a valid Class A license issued

by the Gaming Commission.

Section 5. LICENSE APPLICATION -

REQUIRED NOTICES

5.1 Required Notices

Key employees and primary management officials, and other applicants

unless exempted by the Gaming Commission, must acknowledge in writing the

applicability of the Privacy Act of 1974 and sign a notice regarding the penalty for

making false statements on the application. Employees who have not signed an

application containing the required notices must either sign a statement which

contains the notices or complete and sign a new application form which contains the

notices.

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Section 6. CONFIDENTIAL LICENSING INFORMATION

All licensing information submitted as part of the application process

becomes the property of the Gaming Commission and may be subject to inspection

and disclosure unless otherwise protected under provisions of tribal laws or

regulations, or an applicable exception as follows:

6.1 Documents Designated as Confidential

An applicant may designate specific materials or documents the

applicant reasonably believes to contain confidential information by clearly marking

those materials or documents as Confidential. Those Confidential materials and

documents shall not be subject to public disclosure or made part of the public record

of the Gaming Commission without first providing the applicant notice and an

opportunity for a Gaming Commission hearing regarding whether the materials,

documents, or information should be made public. The Gaming Commission will

balance the applicants claimed confidentiality concerns against the materiality of

the information to the license application, the publics right to be made aware of the

information, and the Gaming Commissions need to make the information part of

the public record in order to remain fully accountable for the licensing decision. The

Gaming Commission shall consider all facts and circumstances relevant to making

a proper ruling. The decision of the Gaming Commission shall be final when issued.

6.2 Arrest and Conviction Records

Information or statements regarding arrests or convictions of any

person will not be disclosed to the public, except as relevant to the applicant or

licensees suitability in a hearing to appeal denial, revocation, or suspension of a

license; in another legal proceeding, or as otherwise required by law.

6.3 Identity of Persons Interviewed

The identity of each person interviewed in the course of a licensing

background investigation shall be kept confidential.

Section 7. BACKGROUND INVESTIGATIONS

The Gaming Commission is responsible for conducting background

investigations prior to licensing of applicants to ensure the Tribes gaming operation

does not employ or contract with those whose prior activities, criminal record,

reputation, habits, and associations pose a threat to the interest of the Tribe or

gaming public, or to the effective regulation of gaming, or enhance the danger of

unfair, unsuitable, or illegal practices and activities in the conduct of gaming.

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7.1 Investigation Scope and Standards

Class A license applicants, and other applicants unless exempted by

the Gaming Commission, shall be subject to a complete background investigation,

including fingerprinting, prior to granting of a license. The Gaming Commission

shall use any information available to it in conducting a background investigation.

Applicants will be assessed and evaluated under standards at least as stringent as

those contained in the Tribes laws and regulations, an applicable tribal-state

gaming compact, and other applicable law. The Gaming Commission reserves the

right to conduct a more comprehensive investigation than required under other

licensing jurisdictions or applicable laws.

7.1.1 Coordination with Enforcement Agencies

The Gaming Commission shall refer persons to the Snohomish

County Sheriffs Office for fingerprinting, and will coordinate with that

recognized law enforcement agency, as necessary, regarding criminal

history information, investigation procedures, as well as for taking

applicant fingerprints. Criminal history checks for key employees,

primary management officials and others required to be licensed under

the Compact will be conducted through the Washington State

Gambling Commission or the NIGC.

7.1.2 Inspection of Applicant Books and Records

The books and records of applicants shall be subject to

inspection at any time, on demand and with or without notice, during

any application or other investigation process and the term of any

license granted.

7.2 Licensing Authority and Responsibility

The Gaming Commission has the authority and responsibility to

conduct background investigations, develop and transmit to the NIGC the eligibility

determination and investigative reports, and to license employees and other persons

and entities involved in gaming activities or doing business with the gaming

enterprise. For Class A license applicants, and other applicants unless exempted by

the Gaming Commission, the Gaming Commission will conduct, or cause to be

conducted, a background investigation. After independent review of all background

investigation materials, the Gaming Commission will issue or deny the license

requested.

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7.3 Investigation Resources Available

The Gaming Commission shall establish the investigation process

based on requirements under applicable law, availability of staff and resources, and

other considerations and requirements. In all cases, the final decision regarding the

issuance or denial of any license remains with the Gaming Commission. The

Gaming Commission is authorized to conduct investigations and develop eligibility

and suitability determinations through:

7.3.1 Gaming Commission staff;

7.3.2 Agreement with the other jurisdictions, or as otherwise required

under a gaming compact; or

7.3.3 Agreement with one or more independent investigators or

investigatory entities (private or public) to perform all or any portion

of the services required.

7.4 Investigation Staff -

Qualifications and Hiring

Gaming Commission staff responsible for the review and investigation

of gaming applicants include qualified Administrators, Reviewing Agents (Agents)

and Supervisors, with training and experience in conducting background

investigations. Investigation staff will have training and experience in application

review, accounting, auditing, andlor law enforcement. At least one Agent must be

qualified by experience or training to review criminal records and law enforcement

matters. Candidates for Gaming Commission staff positions must apply with the

Gaming Commission office. Candidates will be tested and pre-screened prior to

interviewing with the Gaming Commission. The Gaming Commission may require

that candidates pass a background investigation, including personal, criminal and

financial background, prior to employment.

7.5 Application Investigation Process

Applications will be dated, logged in, and reviewed by the

Administrator upon receipt. The Administrator will ensure all required information

has been provided, and will contact applicants by telephone, facsimile, or in writing

regarding any incomplete information or additional materials required prior to

processing the application. The Administrator will ensure that application fees

have been paid, note payment made, and forward any fees for deposit.

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7.5.1 Fingerprint Cards

Fingerprint cards are processed as required by the agency

transmitting the cards to the FBI for processing. Fingerprint cards

sent to the NIGC for FBI processing will be sent directly from the law

enforcement agency completing those cards. Fingerprint cards

processed will be subject to the procedures of the authorized processing

agency. As appropriate, the Administrator will forward the fingerprint

cards to the authorized agency for processing.

7.5.2 Application Review

When the application is deemed complete and ready for review

and investigation, the Administrator forwards the application to one or

more Agent(s) or outside investigators for review. A record of each

application is maintained by the Administrator, with date application

was received, name of reviewing agent, action dates, and other

tracking information.

7.5.3 Agent Review and Investigation

The license application will be fully reviewed by one or more

Agents. An Agent with training or experience in reviewing such

records will review the applicants criminal history information prior to

completion of the review process.

7.5.4 On Site Review and Investigation

For management companies and other business applicants, and

others as deemed necessary, the Gaming Commission may require an

on-site review of records and operations prior to completion of the

review process. Such review will be conducted by one or more Agents

qualified to review and assess applicants records.

7.5.5 Application Information to NIGC

When a key employee or primary management official begins

work at the gaming operation, the Administrator will forward

employee application information to the NTGC.

7.5.6 Gaming Commission Licensing Responsibility

If the Gaming Commission contracts with an independent

individual or entity for background investigations, a Gaming

15
Commission Agent will review each background investigation report

from the independent investigator, approve or disapprove the

investigative work, and compile the eligibility determination and other

materials for Gaming Commission consideration. The final

determination regarding the issuance or denial of the gaming license

remains, at all times, with the Gaming Commission.

Section 8. CLASS LICENSE REVIEW REQUIREMENTS

8.1 Scope of Investigation

The scope of review of Class A license applications includes, at minimum,

investigation of applicants criminal history, personal history, and financial history

in order to detect unusual relationships or criminal associations, and to assess

applicants reputation. Background investigations shall include, but are not limited

to:

8.1.1 Verification (written or oral) of information submitted by

applicant.

8.1.2 Law enforcement record search, as available, to ensure

applicant has no outstanding warrants.

8.1.3 Request for information about the applicant, directed to

enforcement authorities in jurisdictions where the applicant has

worked or lived during the past ten (10) or more years. Agents inquire

into applicants prior activities, criminal record, if any, and reputation,

habits and associations.

8.1.4 Personal, professional, and developed references will be

interviewed to develop applicants report, including unusual

relationships, financial problems, or criminal record. Inquiries shall be

of sufficient number and depth for the Gaming Commission to make a

finding concerning applicants suitability for employment in or

association with the gaming enterprise.

8.1.5 Review of criminal history information from the FBI fingerprint

check and other available sources.

8.1.6 Review of applicants credit record.

8.1.7 Document the disposition of all potential problem areas noted

and any disqualifying information obtained for use in developing

eligibility determination report.

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8.2 Determining Eligibility

During the review and investigation of all Class A license applicants,

the Agent will complete a checklist containing information required for the

eligibility determination. Information will be verified, problem areas and

discrepancies noted, and other comments provided as applicable.

8.3 Supervisor Review

When the review process is completed the applicant file, with

comments and other information received by Agents, will be forwarded to the

Supervisor. The Supervisor will review all materials, approve the investigative

work, and note any other pertinent information. The Supervisor will finalize the

eligibility (suitability) determination for Gaming Commission review and action.

8.4 Applicant Investigative Report

Applicant investigative reports will establish a record of the review

process, including the steps taken in conducting the background investigation, the

results obtained, conclusions reached, and the basis for reaching such conclusions

and determinations.

8.5 Gaming Commission Approval

The application and investigative materials will be reviewed, and

approved or disapproved by action of members of the Gaming Commission.

8.6 Licensing Information to NIGC

Unless otherwise exempted by the NIGC, the Gaming Commission will

forward all approved key employee and primary management official files to the

NIGC together with a copy of the completed license eligibility determination and

the investigative report.

8.7 License Issuance

Upon Gaming Commission approval, a gaming license either with or

without restrictions may be issued to the applicant.

8.8 Temporary or Provisional Licenses

The Gaming Commission may issue a temporary or provisional license

to the applicant prior to completion of the investigative process; provided that no

temporary license will remain valid for more than ninety (90) days. The Gaming

Commission will not authorize the continued employment of a person as a key

17
employee or primary management official for more than 90 days unless that person

holds a valid license issued by the Gaming Commission.

Section 9. CLASS LICENSE REVIEW

9.1 Gaming Commission Processing and Review

Class B license applicants will obtain and submit forms as provided

in these regulations for such licensing. Gaming Commission Agents will review

Class B applications and develop an eligibility determination report for internal

use. Licenses will be granted or denied based on information obtained during the

review process.

9.2 Scope of Investigation

Class B background investigations will be conducted by Gaming

Commission staff in a similar manner but generally with a narrower scope than the

investigation for Class A applicants. The Gaming Commission may, in its sole

discretion, conduct a more comprehensive investigation for Class B applicants as

deemed necessary. Class B license investigations shall include:

9.2.1 Review of application to ensure complete information provided;

9.2.2 Verification of information submitted by applicant;

9.2.3 Search of law enforcement records for outstanding warrants;

9.2.4 Review credit history, including applicants credit report as

deemed necessary.

9.2.5 Inquiry of sufficient depth into applicants prior work record,

personal, and criminal record, if any, to develop an understanding of

applicants reputation, habits and associations. This inquiry may

include interviewing (by phone or in person) personal and professional

references, former employers, and others in order to provide a basis for

the development of an eligibility determination, and to assess the

applicants suitability for a gaming license; and

9.2.6 Documentation of any potential problem areas and disqualifying

information obtained.

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Section 10. NIGC LICENSE AND INVESTIGATION REPORTS

10.1 Investigation Reporting Process

Within sixty (60) days after a Class A license applicant or licensee

begins work in the gaming operation, or within sixty (60) days after approval of the

Ordinance by the NIGC, the Gaming Commission will forward to the NIGC

application information, investigative report and eligibility determination used in

evaluating applicants eligibility for a license. The responsibility for transmittal (or

causing the transmittal) of investigative reports to the NIGC remains with the

Commission Chairman. Investigative reports shall include at least the following

information:

10.1.1 Steps taken in conducting the background investigation;

10.1.2 Results obtained;

10.1.3 Conclusions reached; and

10.1.4 The basis for those conclusions.

10.2 NIGC Notification of License Denial

If the Gaming Commission determines it will not issue or renew a

Class A license, the Gaming Commission will notify the NIGC of such denial and

may forward copies of the eligibility determination and investigative report, if any,

to the NIGC for inclusion in the Indian Gaming Individuals Records System.

10.3 Retention of Applications

10.3.1 Class A

The Gaming Commission will retain applications for Class A

licenses, including reports of background investigations, for a period of

no less than three (3) years from the date of license denial or

termination of employment, whichever is later. Such records will be

made available for inspection by the Chairperson of the NIGC or their

designee.

10.3.2 Class B and other licenses

The Gaming Commission will retain Class B and other license

information for such employees and to the extent necessary after

19
termination of employment or denial, suspension or revocation of the

license. No investigative report or eligibility determination will be

forwarded to the NIGC for these license applicants who are not key

employees or primary management officials under IGRA, unless

specifically requested by the NIGC and approved by the Gaming

Commission.

Section 11. NIGC REVIEW OF LICENSING

11.1 NIGC 30-Day Review Period

The NIGC has thirty (30) days after receipt of the report provided by

the Gaming Commission as required in Section 10.0, to notify the Tribe of any

objections to the issuance of a Class A license. If the NIGC, within the thirty (30)

day period, provides to the Gaming Commission a statement itemizing objections to

the issuance of a license to a Class A license applicant, the Gaming Commission will

reconsider the application taking into account the objections raised. The Gaming

Commission will issue a final decision after full reconsideration of the application

and any additional information.

11.2 Suspension of Review Period

If, within the thirty (30) day period in section 11.1, the NIGC requests

additional information concerning a Class A applicant for whom a report is

provided, that request suspends the thirty (30) day period until the NIGC receives

the information requested.

11.3 Notice of Disqualifying Information

If, after issuance of a Class A license, the Gaming Commission receives

reliable information from the NTGC that the licensee is not eligible for employment

under the provisions herein, the Gaming Commission will take the following steps:

11.3.1 Suspend the license and notify the licensee immediately of the

suspension and proposed revocation;

11.3.2 Notify the licensee of a time and a place for a hearing on the

proposed revocation of the license;

11.3.3 Conduct the revocation hearing and make a determination

whether to revoke or to reinstate the license; and

11.3.4 Notify the NIGC of the final decision regarding the revocation or

reinstatement of the Class A license.

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11.4 Applicability to Class B Licenses

The above provisions of Section 11 may, in the sole discretion of the

Gaming Commission, be applicable to Class B licenses.

Section 12. VENDOR LICENSING

12.1 Individuals and business entities (including principals, officers,

directors, representatives, owners, on-site representatives, and other persons

working with the business entity) doing business with the Tribes gaming

enterprise, whether or not the goods or services provided are gaming related, unless

otherwise exempted by the Gaming Commission in compliance with the IGRA and

regulations promulgated thereunder, and the Compact with the State of

Washington, are subject to the following regulations and procedures and to all other

provisions of the Gaming Act and these regulations. The Gaming Commission may,

in its sole discretion, issue a license without further investigation to such

individuals or business entities holding a valid certification or license from the

Washington State Gambling Commission.

12.2 Definitions

For the purposes of these procedures, the following definitions shall be

applicable:

12.2.1 Gaming Vendor

Gaming Vendor shall mean an individual or business entity

providing goods or services to the Tribe or the gaming enterprise,

whether on or off site, related to the operation of the Tribes class II or

class III gaming activities, and shall include but is not limited to

gaming-related equipment, maintenance, management or consulting

services, financing, gaming supplies, and security or surveillance

services. Gaming vendors include manufacturers, suppliers, and

distributors of such equipment, services, or supplies. For the purposes

of these regulations, gaming services shall not include professional

legal and accounting services nor provision of indirect goods or services

such as food and beverages, laundry services, and the like.

12.2.2 Vendor

Vendor shall mean an individual or business entity providing

only non-gaming related goods or services to the Tribe or the gaming

enterprise, whether on or off site, in connection with the operation of

the Tribes Class II or Class III gaming activities, and shall include but

21
is not limited to food and beverage suppliers, laundry service suppliers,

non-gaming related equipment, clothing, food, or supplies for resale in

the gaming facility, magazines, and publications.

12.2.3 The Gaming Commission, in its sole discretion, may waive the

licensing requirements for Vendors and Gaming Vendors providing

goods or services of no more than $25,000 in value in any twelve (12)

month period. All license requirements shall be applicable when the

goods or services provided total $25,000 in any twelve (12) month

period.

12.2.4 The Gaming Commission, in its sole discretion, may require an

employee, officer, or director of a Vendor or Gaming Vendor to be

licensed individually, even if the Vendor or Gaming Vendor is

otherwise exempted from licensing requirements, if the Gaming

Commission determines that the interest of the Tribe will be served by

such licensing. At the request of the Gaming Commission, the Vendor

or Gaming Vendor shall require such persons to apply to the Gaming

Commission for a license in accordance with the laws and regulations

then in effect.

12.3 Vendor Contracts Subject to Licensing and Independent Audit

Under the Gaming Act, all contracts with Vendors and Gaming

Vendors, including each supplier, manufacturer, distributor, or other services

supplier doing business with the Tribes gaming activities (Vendor Contracts) are

subject to licensing by the Gaming Commission. Payments to Vendors and Gaming

Vendors may be delayed until the licensing process is completed. All Vendor

Contracts in the amount of $25,000 or more annually for supplies, services, or

concessions related to gaming activities on the Reservation are also subject to

independent audit.

12.4 Time for License Application

Each Vendor or Gaming Vendor, as defined herein, is responsible for

filing a license application with the Gaming Commission within five (5) business

days after execution of a contract to do business with the Tribes gaming enterprise,

and prior to receiving payment thereunder. The Gaming Commission may, in its

sole discretion, require licensing or other pre-approval of the company or

individuals to be completed prior to execution of the contract or prior to beginning

any work with the gaming enterprise.

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12.5 Vendor Licensing and License Categories

The Gaming Commission is authorized to issue three categories of

Vendor Licenses. The Gaming Commission shall require Vendors and Gaming

Vendors to complete the process for one of those three categories. All three

categories of Vendor Licenses are considered Class A licenses, subject to the specific

provisions of this Section 12.0.

12.6 Vendor License Information Required

The Gaming Commission shall require all Vendors and Gaming

Vendors to submit basic licensing information to the Gaming Commission. The

Gaming Commission is further authorized to require the submission of either a

greater or lesser amount of information from any Vendor or Gaming Vendor based

on factors including but not limited to (a) their relationship to the gaming activities;

(b) size, complexity, and organizational structure of the vendor; (c) total dollar

amount of contracts with the Tribe andlor the gaming enterprise; (d) licensing

status in other jurisdictions; (e) total number of contracts with the Tribe and/or the

gaming enterprise; (f) number of on-site employees; (g) frequency and amount of

overall contacts with the Tribe and/or the gaming enterprise; (h) reputation and

record of the vendor in prior dealings with the Tribe and/or the gaming enterprise;

and (g) general reputation of the vendor in business dealings and in the community.

12.6.1 Category A-i Vendor License

Individuals and entities defined herein as Gaming Vendors, as

well as those providing non-gaming services, materials, or equipment

and that must access any secure or non-public area of the gaming

facility (such as locksmiths, alarm contractors, surveillance equipment

maintenance) shall apply for a Category A-i Vendor License if their

contracts with the Tribe are, or are estimated to be, $25,000 or more

within the twelve month period beginning with the date of the initial

contract. Category A-i Vendor Licensees must be investigated and

fully licensed before the total of their contracts with the tribes gaming

activities exceeds the $25,000 amount.

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12.6.2 Category A-2 Vendor License

Individuals and entities defined herein as Vendors, and

including those providing non-gaming goods and services who must

access any secure or non-public area of the gaming facility (such as

Iocksmiths, plumbers, electrical contractors, computer support

services, camera suppliers), as well as independent concessionaires

who provide goods or services to the public through the gaming facility

(such as, for example, catering companies, valet services, cash machine

services, and the like) shall apply for a Category A-2 Vendor License, if

the total of their contracts with the Tribe and its gaming enterprise

are, and are reasonably estimated to be, no more than $25,000 within

the twelve month period beginning with the date of the initial contract.

12.6.3 Category A-3 Vendor License

All other providers of either gaming or non-gaming related goods

or services (including distributors, manufacturers, or suppliers) to the

gaming enterprise, and are not otherwise included in Categories A-i or

A-2, shall apply for a Category A-3 license. At the discretion of the

Gaming Commission, any Category A-3 Vendor may be required to

meet the licensing requirements of a Category A-i or A-2 Vendor.

12.7 Vendor License Fees and Costs

Basic Vendor License fees shall be established by the Gaming

Commission for category A-i, A-2, and A-3 licenses. Initial license fees shall be

available on request from the Gaming Commission and may be adjusted from time

to time to cover the actual cost of investigation and licensing. The Gaming

Commission is further authorized to increase or decrease basic license fees for any

Vendor or Gaming Vendor based on the amount of business the vendor has done or

expects to do with the Tribes gaming activities, or to waive or defer license fees as

the Gaming Commission, in its sole discretion, deems appropriate. In processing

Vendor applications, the Gaming Commission may, in its sole discretion, use inhouse investigation services, outside investigation services, or a combination of

both. The Gaming Commission may require additional fees at any time during the

licensing and investigation process to cover costs and expenses of investigation,

licensing, and regulation.

12.8 Basic Vendor License Information Reciuired

The Gaming Commission shall require the following information,

unless the Gaming Commission, in its sole discretion, specifically waives some or all

24
of the information required from Vendors and Gaming Vendors as part of the

licensing process:

12.8.1 Completed Vendor Application for the company and for each

person required by the Gaming Commission to be licensed as part of

the Vendor License process, including application attachments and

license fees;

12.8.2 Copy of company Personnel Policy;

12.8.3 Copy of company Drug and/or Alcohol Program, with

certification of its implementation;

12.8.4 Copy of all contractual agreements with Tribes gaming

activities; and

12.8.5 Any other materials requested by the Gaming Commission.

12.9 Gaming Commission Vendor License Investigation and Processing

12.9.1 Gaming Commission staff shall provide in-person or send a

Vendor Application packet to Vendors and Gaming Vendors who

request such information, are identified by the gaming enterprise, or

are otherwise identified by the Gaming Commission as requiring a

Vendor License.

12.9.2 Gaming Commission staff shall review incoming completed

applications for the following:

12.9.2.1 All portions of the application have been completed

and are legible;

12.9.2.2 Photographs and fingerprint cards (if required)

have been included;

12.9.2.3 Legible copies of all required identification

documents have been provided (Washington

Drivers License, Alien Registration, Naturalization

documents, and the like);

12.9.2.4 All required fees have been provided;

12.9.2.5 Application and all required forms have been

signed and notarized as necessary;

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12.9.2.6 Any other required attachments such as financial

information, business organizational documents,

and the like have been provided; and

12.9.2.7 The application materials include information

required for vendor on-site representatives;

company owners, directors, and officers; and any

other individuals required to be licensed or

investigated as part of the company application.

12.9.3 Upon completion of the above review, the Gaming Commission

may authorize the issuance of a temporary Vendor License that will be

valid for no more than a one (1) year period.

12.9.4 Gaming Commission staff will continue to process the completed

application as follows:

12.9.4.1 Social security number review and verification for

each owner and other individuals as required to be

licensed as part of the vendor licensing;

12.9.4.2 Review financial reports and organizational

documents provided;

12.9.4.3 Verify PUC including number, insurance, and

number and type of vehicles;

12.9.4.4 Review state and federal tax returns as required;

12.9.4.5 Obtain business credit information and report;

12.9.4.6 Conduct asset search, if deemed necessary after

above review;

12.9.4.7 Check state and federal civil, criminal, and

bankruptcy court records for jurisdiction where

business located and where principals reside, if

necessary;

12.9.4.8 Check references listed, including at least one bank

reference;

12.9.4.9 For any employee whose proposed job duties with

the gaming enterprise include driving or carrying

26
d

passengers, conduct DMV record review; search

state and local court records; review copy of drivers

license and medical card; conduct reference checks;

and review and verify employment history;

12.9.4.10 For any employee proposed as an on-site

representative at the Gaming Enterprise, verify

social security number; search state, local, and

federal court records; verify prior employment;

verify and contact personal references to the extent

necessary (may include developed references);

review and verify professional licenses; obtain

credit report; and conduct DMV record review; and

12.9.4.11 The Gaming Commission may conduct the

investigation specified above through use of

qualified in-house staff, or may contract with

another jurisdiction, individual, or agency to

conduct some or all of the above work, or to conduct

further investigation.

12.9.5 Vendor Licenses (Category A-i, A-2, and A-3) may, in the sole

discretion of the Gaming Commission include the following:

12.9.5.1 Temporary Gaming License issued upon receipt

and initial review of the application as provided in

12.9.3 above;

12.9.5.2 Vendor Gaming License regular license issued

upon completion of investigation and valid for no

more than two (2) years (includes issuance of a

photo identification to be worn at all times when

licensee and its on-site representatives are in the

gaming enterprise; and

12.9.5.3 Provisional License may be issued if applicant is

unable to pay total licensing fee at one time and

payment schedule is developed; if applicant

(business or individuals) must comply with specific

provisions to maintain the license; and other

circumstances deemed appropriate to protect

persons and property.

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A

12.9.6 Closure of Applicant Files During Gaming Commission

processing, the Applicants license file may be closed for reasons

including but not limited to the following: licensing and background

information is not provided as requested; the application is not

completed or fees are not paid as required; or applicants services are

no longer required by the gaming enterprise. Prior to closing an

applicant file, Gaming Commission staff will send a letter via certified

or overnight mail to applicant at applicants last known address, with

a copy to the gaming enterprise, indicating the file is closed effective

that date, and that no further goods or services may be provided to the

gaming enterprise.

12.9.7 Denial of License to Applicant For applicants who, after

investigation is completed, are not deemed suitable to do business with

the gaming enterprise, the Gaming Commission staff will send a letter

to the applicant at applicants last known address, via certified or

overnight mail, a letter indicating that the license has been denied and

setting forth the appeal procedures. If the appeal is not filed within

fifteen (15) days, or if the denial is not overturned as a result of the

appeal process, the applicant is no longer authorized to do business

with the gaming enterprise. Denial of the Vendor License may also be

considered for other purposes, and may result in the applicant being

denied the opportunity to do business with the Tribes government or

other business enterprises.

Section 13. LICENSE AND INVESTIGATION FEE PROVISIONS

13.1 License Investigation Fees

Basic license fees are established and published by the Gaming

Commission, and may be changed without prior notice at any time for any class of

license. If the cost of investigation and processing an application exceeds the fee

established, the Gaming Commission may require that additional fees be paid prior

to license issuance. License application fees may include an amount to cover the

reasonable costs of regulation and enforcement.

13.2 Payment of Fees

Applicants must comply promptly with any request for a deposit to

cover the estimated cost of investigation and processing. Applicants failure to pay

any fee deposit as and when requested may result in denial of the license. The

Gaming Commission, in its sole discretion, may delay the issuance of a license for a

28
I

sufficient period of time to ensure that a check offered to cover such fees has cleared

the bank.

13.3 WaiverofFees

The Gaming Commission reserves the right to waive or adjust license

fees for a member of the Tribe or for a member of another tribe. The decision of the

Gaming Commission regarding such requests shall be final and non-appealable.

Section 14. NOTIFICATION OF LICENSING ACTION

The Gaming Commission shall provide written notification to each applicant

upon the grant or denial of the license. To the extent required under federal, state,

or other applicable laws, the Gaming Commission will notify the NIGC and others

as required regarding issuance, revocation or denial of Class A licenses.

Section 15. LICENSE NOT A VESTED RIGHT

The Gaming Commissions issuance of any license shall not be construed as

granting a vested right in any of the privileges the license confers.

Section 16. LICENSEE DUTIES AND RESPONSIBILITIES

16.1 Updating Information

Each licensee shall assume full responsibility for providing to the

Gaming Commission on an on-going basis, information to supplement, correct, or

update that provided in the original license application, as well as any other

information that may impact the licensees suitability for continued licensing.

Failure to provide such information on a timely basis may result in suspension,

revocation, or denial of the license.

16.2 Compliance with Applicable Law and Conditions

Each licensee and licensees employees shall be legally responsible for

compliance with all applicable laws, including tribal, federal, and state laws and

regulations. Further, licensees issued a conditional or provisional license shall

assume the responsibility for full and timely compliance with any conditions or

restrictions set forth in conjunction with issuance of such license. Failure to comply

with applicable law or conditions established may result in suspension or revocation

of the license issued.

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16.3 Evidence of Suitability

The issuance or renewal of any license may be conditioned as

necessary, including successful completion of required programs or training or the

presentation of evidence of the person or entitys suitability.

16.4 Rewards, Bribes, and Compensation

No applicant or licensee shall give, provide, or offer to give or provide

(directly or indirectly) to any official of the Tribe, Gaming Commission, or any other

employee or agency of the Tribe any compensation, reward, or share of the money

received through gambling activities in consideration for obtaining a license or

authorization to participate in any gaming operation. Any violation shall result in

denial or revocation of any license held or sought.

16.5 Responsibility of Employees and Licensee Businesses

Licensees and employees of a business entity, as well as the licensee

entity itself, shall be legally responsible for any violation of the Tribes laws and

regulations, license requirements, and other applicable laws and regulations,

including IGRA and any applicable tribal-state compact.

Section 17. LICENSEE PROCEEDINGS CLOSED TO PUBLIC

Hearings regarding licensing proceedings or reconsideration of an application

shall be closed to the public unless specifically opened to the public by a two-thirds

majority vote of the Gaming Commission.

Section 18. LICENSE DENIAL. SUSPENSION OR REVOCATION

18.1 Grounds for Denial, Suspension or Revocation

The Gaming Commission may deny a license, or suspend or revoke a

license when the applicant or licensee, or any other person or entity with any

interest in the applicant or licensee:

18.1.1 has violated, failed or refused to comply with the provisions,

requirements, conditions, limitations or duties imposed by the

Ordinance and or other applicable laws or regulations;

18.1.2 knowingly causes, aids, abets or conspires with another to cause

any person to violate any applicable laws or regulations;

18.1.3 has obtained a license by fraud, misrepresentation, concealment,

or through inadvertence or mistake;

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4 a

18.1.4 fails to promptly produce for inspection or audit any book,

record, or document required by applicable laws or regulations;

18.1.5 has been convicted of, or forfeited bond upon a charge of, or

pleaded guilty to the crime of forgery, larceny, extortion, conspiracy to

defraud, tax evasion, or similar offenses, or of any crime, whether a

felony or misdemeanor, involving moral turpitude or a gambling

activity; or

18.1.6 allows any person who has been convicted of or forfeited bond

upon any of the offenses above to participate in the management or

operate in a key position with the entity licensed by the Gaming

Commission, without prior notice to and written approval from the

Gaming Commission.

18.2 Surrender of License

Upon receiving written notice of the suspension or revocation of any

license issued by the Gaming Commission, the licensee is required, within five (5)

days, to surrender the license and return it to the Gaming Commission.

18.3 Suspension or Revocation After Hearing

In addition to other procedures set forth in these regulations, any

license issued under these regulations may be suspended or revoked by the Gaming

Commission for a breach or violation of the provisions of applicable laws or

regulations, and a hearing before the Gaming Commission called no more than

twelve (12) or less than eight (8) working days from the time the licensee is given

notice of the alleged breach or violation. The licensee, and any person directly

affected by the license action shall have the right to be present and to offer sworn

oral or documentary evidence relevant to the breach or violation charged.

18.4 Summary Suspension or Revocation

Nothing in these regulations shall preclude the Gaming Commission

from summarily suspending or revoking any license if the continued licensing

appears to constitute a threat to Tribes or the public health, safety or welfare;

enhance the opportunity for unfair or unscrupulous practices in the gaming

operation; or increase the likelihood that the integrity and reputation of the gaming

operation might be compromised.

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18.5 Appeal of Denial, Suspension or Revocation

18.5.1 Decisions of the Gaming Commission regarding the denial,

suspension or revocation of licenses shall be final and effective when

issued.

18.5.2 An applicant or licensee whose license is denied, revoked or

suspended may, within fifteen (15) days after the date of receipt of a

written decision of the Gaming Commission, file with the Gaming

Commission a request to reconsider the decision. The request must set

forth the basis of the request for reconsideration. If no request or

petition for reconsideration is received by the Gaming Commission

within the time prescribed, the decision shall be deemed final and not

subject to further reconsideration, appeal, or review by the Gaming

Commission.

18.5.3 Notwithstanding the above, a member of the Tribe may, in

addition, appeal a denial, suspension or revocation of a license to the

Gaming Commission within sixty (60) days of written notice under the

provisions set forth in the Ordinance.

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