Section 2.08 Protection of the Environment and Public Health and Safety.
Class II and Class III gaming facilities shall be constructed, maintained and operated in a

manner that adequately protects the environment and the public health and safety.

Section 2.09 Licenses for Class II and Class II Key Employees and Primary Management

Officials, and Gaming Employees, and Non-Gaming Employees.

All gaming employees, non- gaming employees, key employees and primary management
officials shall apply for and be granted a Tribal gaming license prior to employment in the gaming
operation. The Tribe shall ensure that the policies and procedures set out in this section are
implemented with respect to anyone employed at any Class II or Class III gaming enterprise
operated on Indian lands:

A. Definitions:

For the purpose of this section, the following definitions apply:

1. Key employee means:

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

1) Bingo caller, supervisor, cashier;
2) Counting room supervisor, personnel, and drop team personnel;
3) Chief of security, and all security personnel;
4) Custodian of gaming supplies or cash;
5) Floor manager;
6) Pit boss;
7) Dealer;

8) Croupier;

12


under this Ordinance, licenses may be suspended, revoked, or limited and gaming establishments
may be closed. All such action shall be taken at the discretion of the Gaming Commission, subject
to the right of appeal to the Viejas Independent Review Board. Winnings found to have been

received in violation of this Ordinance shall be forfeited and become the property of the Tribe.

Section 3.27 Due Process Regarding Enforcement Actions. The Gaming Commission shall

promulgate regulations protecting due process rights of all individuals subject to the enforcement of
this Ordinance. Such regulations shall, at a minimum:

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

(b) provide fair notice and opportunity for hearing before the Gaming Commission
regarding any revocation or suspension of license, and regarding any enforcement action taken
pursuant to this Ordinance; and

(c) provide the right to appeal, de novo, any Gaming Commission disciplinary or

enforcement action to the Viejas Independent Review Board.

Section 3.28 Patron Disputes.

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

1) At least five hundred dollars ($500), the Gaming Facility Operator shall
immediately notify the Tribal Gaming Commission. The Tribal Gaming Commission shall conduct

whatever investigation it deems necessary and shall determine whether payment should be made; or

33


(a) Negotiating contracts for payments by the Tribe for the provision of security,
surveillance, outside independent auditing services. Such contracts must be approved by the Council
and shall not constitute a waiver of jurisdiction by the Tribe;

(b) Correspond with the National Indian Gaming Commission and do whatever is
necessary to ensure compliance with the rules and regulations of that agency. Specifically, the
Commissioner, with approval of the Tribal Council, shall arrange for an annual outside audit of
authorized gaming and will provide a copy to the National Indian Gaming Commission.

(c) The Commissioner will assure that all gaming activity is conducted in a manner
which adequately protects the environment and the public’s health and safety;

(d) The Commissioner will ensure that background investigations are conducted
pursuant to section 2.09 on all primary management officials, key employees, gaming employees
and non-gaming employees of any gaming establishment and that oversight of such officials and
their management is conducted on an ongoing basis. The Commissioner will make suitability
determinations on the granting of Tribal licenses for all of the gaming operation employees. The
Commissioner shall immediately notify the National Indian Gaming Commission of the issuance of
such licenses for primary management officials and key employees. The Commissioner will review
all license applications and background investigations to ensure that no person shall be eligible for
employment if that person’s prior activities, criminal record (if any), or reputation, habits and
associations pose a threat to the public interest or to the effective regulation of gaming or create or
enhance the dangers of unsuitable, unfair, or illegal practices and methods and activities in the
conduct of gaming or jeopardize the integrity or reputation of the Tribe or its Gaming Operation.
The Commissioner shall notify the National Indian Gaming Commission of the results of such
background checks before the issuance of such licenses to primary management officials and key

employees.

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unlawfully influencing a public official or employee of a Tribe, a State, or the U.S. Government, or
of any crime, whether a felony or misdemeanor, involving any gaming activity, misappropriation of
funds or physical harm to individuals or moral turpitude;

(g) makes a misrepresentation of, or fails to disclose a material fact to the Federal,
State, or the Tribal Gaming Regulatory authorities;

(h) is subject to current prosecution or pending charges, or a conviction which is
under appeal, for any of the offenses included under subsection (f) of this Section; provided that the
Gaming Commission may defer decision upon the application during the pendency of such
prosecution or appeal;

(i) has had a gaming license issued by any State or Tribe in the United States
revoked or denied;

(j) has demonstrated a willful disregard for compliance with Gaming Regulatory
authority in any jurisdiction, including suspension, revocation, denial of application or forfeiture of
license;

(k) has pursued or is pursuing economic gain in an occupational manner or context
which is in violation of the criminal laws of any state if such pursuit creates probable cause to
believe that the participation of such person in gaming or related activities would be detrimental to
the proper operation of an authorized gaming or related activity in this State. For the purposes of
this paragraph, occupational manner or context shall be defined as the systematic planning,

administration, management or execution of an activity for financial gain;

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Section 1.19 “Management contract” means any contract, subcontract, or collateral

agreement between an Indian tribe and a contractor or between a contractor and a subcontractor if

such contract or agreement provides for the management of all or part of a gaming operation.

Section 1.20 “Net revenues” means gross gaming revenues of an Indian gaming operation
less:
(a) Amounts paid out as, or paid for, prizes; and

(b) Total gaming — related operating expenses, excluding management fees.

Section 1.21 “Non-gaming employee” means any employee of the gaming operation who is

not a gaming employee, primary management official or key employee. Non-gaming employees
shall also be licensed by the Tribal Gaming Commission in accordance with any limitations,

restrictions or regulatory requirements deemed appropriate by the Commission.

Section 1.22 “Person having a direct or indirect financial interest in a management

contract” means:

(a) When a person is a party to a management contract, any person having a direct financial
interest in a management contract;

(b) When a trust is a party to a management contract, any beneficiary or trustee;

(c) When a partnership is a party to a management contract, any partner;

(d) When a corporation is a party to a management contract, any person who is a director or
who holds at least 10% of the issued and outstanding stock alone or in combination with another
stockholder who is a spouse, parent, child or sibling; or

(e) When an entity other than a natural person has an interest in a trust, partnership or
corporation that has an interest in a management contract, all parties of that entity are deemed to be

persons having a direct financial interest in a management contract.

6


3) The arbitrator(s) shall confer with the parties immediately after appointment
to determine an arbitration schedule including whether and to what extent discovery is required. The
arbitrator(s) may set the matter for an evidentiary hearing or oral argument, or may dispose of the
dispute based upon written submission only.

(d) Arbitration Costs, The cost of arbitration shall be borne equally by the parties, with one
half of the expenses charged to the Tribe and one-half charged to the other party or parties. The
parties shall bear their own costs and attorneys’ fees associated with their participation in the
arbitration unless the decision of the arbitrator shall specify otherwise.

(e) Arbitration Decision. The decision of the majority of the arbitrator(s) shall be final,
binding and unappealable. Failure to comply with judgement upon the award entered in such

arbitration proceeding shall be deemed a breach of the Ordinance.

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information to the Gaming Commission or the Tribal officials who negotiate such contracts or has
refused to respond to questions propounded pursuant to CFR 25 Section 5.01 (b); or
4) has been determined to be a person whose prior activities, criminal record if

any, or reputation, habits, and associations pose a threat to the public interest or to the effective
regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods, and activities in the conduct of gaming or the carrying on of the business and
financial arrangements incidents thereto;

(b) The management contractor has, or has attempted to unduly interfere or to influence for
its gain or advantage any decision or process of Tribal government relating to gaming activity;

(c) The management contractor has deliberately or substantially failed to comply with the
terms of this management contract or the provisions of this Ordinance or any regulations adopted

pursuant to this Ordinance or the Indian Gaming Regulatory Act.

Section 5.05 Modifying or Voiding Contract. The Gaming Commission, after notice and

hearing, shall have the authority to require appropriate contract modifications or may void any
contract if it subsequently determines that any of the provisions of this Chapter have been violated.
If the Tribe elects to contractually agree to resolve disputes in a manner other than the revocation of
a license, such contractual agreement shall supersede any conflicting provisions of this section, so
long as the agreement provides a reasonable avenue for the Tribe to ensure a licensee’s compliance

with all other aspects of this Gaming Ordinance.

Section 5.06 Conveying Interest in Land. No management contract for the operation of a

gaming activity regulated by this Ordinance shall transfer or, in any other manner, convey any

interest in Tribal land or other real property.

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CHAPTER VII

AUTHORIZATION OF GAMING

Section 7.01 Prohibition Against Gaming. No person licensed by the Gaming Commission

shall engage, conduct or condone any game unless such game is approved by the Gaming
Commission and regulations for rules governing such game have been duly promulgated by the

Gaming Commission and approved by the Viejas Independent Review Board.

Section 7.02 Grace Period. The prohibition contained in Section 7.01 shall not apply to those
games already being played as of the date of enactment of this Ordinance, provided however, that

the licensee conform to the rules promulgated hereunder within five (5) days of such promulgation.

Section 7.03 Authorization of Gaming. The Gaming Commission may authorize the playing
of any Class II game not prohibited by the laws of the State of California. The Gaming Commission
shall promulgate regulations for rules governing all authorized games, including regulations
governing the equipment (chips, dice, cards, tiles, devices, etc.) used in such game. Any provision
in the Tribe’s Compact with the State of California providing for testing, notice to, and comment
from the State, shall be complied with before any game is authorized by the Gaming Commission.
When there is reasonable cause to question the classification of a game (i.e. Class II or Class III)
the Tribal Gaming Commission shall authorize such games to be conducted as Class II, unless or
until the National Indian Gaming Commission rules otherwise or until a court of competent

jurisdiction has ruled otherwise.

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Chapter IX

Unlawful Acts

Section 9.01 /t is Unlawful for any Person:

(a) to alter or misrepresent the outcome of a game or other event on which wagers have
been made after the outcome is determined but before it is revealed to the players;

(b) to place, increase or decrease a bet or to determine the course of play after acquiring
knowledge, not available to all players, of the outcome of the game or knowledge of any event that
affects the outcome of the game or knowledge that is the subject of the bet or wager;

(c) to aid anyone in acquiring such knowledge as set forth in subparagraph (b), for the
purpose of increasing or decreasing a bet or wager, or for the purpose of determining the course of
play contingent upon that event or outcome;

(d) to claim, collect or take, or attempt to claim, collect or take, money or anything of value
in or from a gambling game with intent to defraud, without having made a wager contingent
thereon, or to claim, collect or take an amount greater than the amount won;

(e) knowingly to entice or induce another to go to any place where a gambling game is
being conducted or operated in violation of the provisions of this chapter, with the intent that the
other person play or participate in that gambling game;

(f) to place or increase a bet or wager after acquiring knowledge of the outcome of the
game or event which is the subject of the bet or wager, including past posting and pressing bets;

(g) to reduce the amount wagered or cancel the bet after acquiring knowledge of the
outcome of the game or other event which is the subject of the bet or wager, including pinching bets;

and

56


(b) Any person listed pursuant to subsection (a) (i) shall be required to respond to such
written or oral questions that the Gaming Commission may propound in accordance with its
responsibilities under this section.

(c) For purposes of this Ordinance, any reference to the management contract described in
CFR 25 Section 5.01

1) shall be considered to include all collateral agreements to such contract that
relate to the gaming activity.

(d) After the Gaming Commission has given its approval of a management contract, the
Gaming Commission shall submit such contract to the National Indian Gaming Commission for its
approval. Any such contract shall be void until the National Indian Gaming Commission has

approved it.

Section 5.02 Approval of Management Contracts. The Gaming Commission may approve

any management contract entered into by the Tribe pursuant to this Chapter only if it determines that
such contract provides at least:

(a) for adequate accounting procedures that are maintained, and for verifiable financial
reports that are prepared for the Council on a monthly basis;

(b) for access to the daily operations of the gaming operation to appropriate Tribal officials
who shall also have a right to verify the daily gross revenues and income made from any such Tribal
gaming activity;

(c) for a minimum guaranteed payment to the Tribe that has preference over the retirement
of development and constructions costs;

(d) for an agreed ceiling for repayment of development construction costs;

(e) for a contract term not to exceed five years, except that, upon the request of the Tribe,

the gaming Commission may authorize a contract term that exceeds five years but does not exceed

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

8) For each felony for which there is an ongoing prosecution or a
conviction, the charge, the name and address of the court involved, and the date and disposition if

any;
9) For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), within 10 years of the date of the application, the name and
address of the court involved and the date and disposition;

10) For each criminal charge (excluding minor traffic charges), whether or
not there is conviction, if such criminal charge is within 10 years of the date of the application and is
not otherwise listed pursuant to paragraph (a)(8) or (a)(9) of this section, the criminal charge, the
name and address of the court involved and the date and disposition;

11) The name and address of any licensing or regulatory agency with

which the person has filed an application for an occupational license or permit, whether or not such
license or permit was granted;

12) A current photograph;

13) Any other information the Tribe deems relevant; and

14) Fingerprints consistent with procedures adopted by the Tribe according
to 25 C.F.R. §522.2 (h). Fingerprints shall be required for employees defined as key employees and

primary management officials only unless otherwise requested by the Tribal gaming commission.

Section 2.10 Background Investigation of License Applicants Pursuant to Section 522.2 (b)

of the Rules and Regulations of the National Indian Gaming Commission. The Tribe shall conduct

an investigation sufficient to make a determination under Section 2.12. below. In conducting a


2) Less than five hundred dollars ($500) and the patron and operator do not
come to an agreement, the Gaming Facility Operator shall inform the patron of his or her right to
request that the Tribal Gaming Commission conduct an investigation. Upon request of the patron,
the Tribal Gaming Commission shall conduct whatever investigation it deems necessary and shall
determine whether payment should be made.

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

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

(d) Review of Decision. Within thirty (30) days after the date of receipt of the
written decision, the aggrieved party may file a petition with the Viejas Independent Review Board.
Upon receipt of the petition the chairperson of the Review Board shall immediately forward a copy
of the petition to the Gaming Commissioner. The Review Board shall promulgate procedures to
determine whether patron disputes are eligible for a hearing and for the conduct of any hearing. The
Review Board shall take into consideration the prior decision and other documentation provided to it
by the patron, the Gaming Commission, and the Gaming Facility Operator. The chairperson of the
Review Board shall then issue a written decision and mail it to the parties pursuant to the procedures
set forth in Section 3.28 (b). The decision of the Viejas Independent Review Board shall be final
and binding upon the patron and the Gaming Facility Operator and shall not be subject to judicial

review, dispute resolution or other legal action.

34


shall be paid a stipend at a rate to be established annually by the Gaming Office budget,
and approved by the Tribal Council. Initially the stipend shall be at the rate of $350.00
per member per meeting. Board members shall be reimbursed for actual expenses
incurred on Gaming Office business, including necessary travel expenses. In no event
shall compensation be based on a percentage of net profits from gaming operations of the
Tribe.

8. Section 3.07 Selection of Chairperson. The Review Board shall select annually from

its membership a Chairperson, who shall chair all necessary hearings and meetings. If
the Chairperson determines that a meeting must be continued or postponed, the
Chairperson may set the time and date for additional meeting/hearing times. The
Chairperson shall communicate the scheduling of all meetings/hearings with the Gaming

Commissioner.

9. Section 3.08 Meetings/Hearings. The Review Board shall not meet more than twice

per month unless deemed necessary by the Chairperson or at special request of the
Commissioner. Should additional meetings be necessary, the Chairperson and
Commissioner shall concur on mutually agreeable dates and times. Meeting and hearings
shall take place on the Viejas reservation. Meetings and hearing proceedings shall have
official minutes recorded by the secretary or administrative assistant of the Commission.

Records of board meetings and hearings shall be exempt from state subpoena.

10. Section 3.09 Quorum — Majority Vote. A quorum shall consist of three (3) members
of the Review Board. All decisions shall be made by a majority vote of the Board

members.

11. Section 3.13 Request for Review Board Action. The General Manager of the Gaming

operation may file a petition in a manner and form approved by the Review Board
requesting the amendment or repeal of a regulation. Upon receipt of the petition, the
Chair of the Review Board shall within thirty (30) days schedule the matter for

consideration by the Review Board pursuant to this chapter, and shall immediately


Section 3.14 Due Process, Appealing Commission Actions. Any Commission decision
resulting in approving, disapproving, revoking, suspending, limiting or conditioning a license, or the
imposition of other sanctions under this Ordinance shall be made by the Commissioner. Should an
applicant or licensee disagree with the determination of the Commissioner, the Commissioner shall
schedule a hearing with the Review Board to review the decision, within thirty (30) working days

from the date an applicant files his/her written appeal with the Gaming Commission.

Section 3.15 Review Board's Findings. Following such hearing, the Review Board shall,
within three (3) working days reach a determination conceming:
(a) the accuracy of the facts presented at the hearing;
(b) whether the license in question should be granted, denied, reinstated suspended,
revoked, conditioned, or limited; and
(c) whether any other action recommended to the Review Board including,

but not limited to fines and forfeitures, should be taken

Section 3.16 Notification of Review Board Decision. Within ten (10) working days following

this determination, the Review Board shall inform the subject and the Commission in writing of the

determination. The determination of the Review Board shall be final and not subject to further

appeal.

Section 3.17 Appointment of Commissioner. The Council shall appoint a Commissioner who
shall be responsible for the day-to-day management of the affairs of the Gaming Commission as well
as overseeing the establishment and operation of all gaming activities for compliance with all
applicable Federal, State and Tribal gaming laws and regulations. A detailed background
investigation shall be conducted on the Commissioner before his/her appointment. The

Commissioner shall report directly and only to the Tribal Council. No one convicted of a felony of

27


9) Any cashier;
10) Approver of credit; or
11) Any employee engaged in finance or accounting functions;
12) Custodian of gambling devices including persons with access to cash and
accounting records within such devices;
(b) If not otherwise included, any other person whose total cash compensation is in
excess of $50,000 per year; or
(c) If not otherwise included, the four most highly compensated persons in the
gaming operation.

2. Primary management official means:

(a) The person having management responsibility for a management contract;

(b) Any person who has authority:
1) to hire and fire employees; or
2) to set up working policy for any portion of the gaming operation; or

(c) The chief financial officer or any other person who has financial management

responsibility.
B. Application forms
1. The following notice shall be placed on the application form for a gaming employee,

non-gaming employees, key employee, or a primary management official before that form is filled

out by an applicant:


Section 2.13. Procedures for Forwarding Applications and Reports for Key Employees and

Primary Management Officials to the National Indian Gaming Commission.

(a) When a key employee or primary management official begins work at a gaming
operation authorized by this ordinance, the Gaming Commission shall forward to the National Indian
Gaming Commission a completed application for a gaming license and conduct the background
investigation and make the determination referred to in Section 2.12.

(b) The Tribal Gaming Commission shall forward the report referred to in Section 2.13(a) to
the National Indian Gaming Commission within 60 days after an employee begins work or within 60
days of the approval of this Ordinance by the Chairman of the National Indian Gaming Commission.

(c) The gaming operation shall not employ as a key employee or primary management

official a person who does not have a license.

Section 2.14 Report to the National Indian Gaming Commission.

(a) Pursuant to the procedures set out in Section 2.09, the Tribal Gaming Office shall
prepare and forward the National Indian Gaming Commission an investigative report on each
background investigation. An investigative report shall include all of the following:

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

3) Conclusions reached; and

4) The bases for those conclusions.

(b) The Gaming Commission shall submit, with the report, a copy of the eligibility
determination made under Section 2.12.

(c) Ifa license is not issued to an applicant, the Gaming Commission:

1) Shall notify the National Indian Gaming Commission;

2) may forward copies of its eligibility determination and investigative report

19


C. Background Investigation: No license shall be granted to any person or entity who has
been determined to be a person or entity whose prior activities, criminal record, if any, or
reputation, habits, and associations pose a threat to the public interest or to the effective regulation
and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices,
methods, and activities in the conduct of gaming or by the carrying on of the business and financial
arrangements incidental thereto.

1. License Application Minimum Requirements:

(a) The Tribe shall request from each license applicant all of the following
information:

1) Full name, other names used (oral or written), social security
number(s), birth date, place of birth, citizenship, gender, all languages (spoken or written);

2) Currently and for the previous 10 years; business and employment
positions held, ownership interests in those businesses, business and residence addresses, and drivers
license numbers;

3) The names and current address of at least three personal references,
including one personal reference who was acquainted with the applicant during each period of
residence listed under paragraph (a) (2) of this section;

4) Current business and residence telephone numbers;

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

6) A description of any existing and previous business relationships with

the gaming industry generally, including ownership interest in those businesses;


any kind or misdemeanor related to gambling or moral turpitude can serve as Commissioner. The
Commissioner shall have no personal interest in the gaming activity. Neither the Commissioner
nor any Commission employees may gamble in the gaming establishment nor have any personal

financial interest in any gaming establishment patron.

Section 3.18 Commissioner’s Contract. The Commissioner shall be hired on a contract. The

terms of the contract will be negotiated with the Tribal Council and approved by the Council. The
Commissioner’s compensation shall be part of the negotiations. Compensation for the

Commissioner shall not be based, in whole or in part, on the profitability of the gaming operation.

Section 3.19 Termination of Commissioner. The Commissioner shall be terminated

immediately and without the necessity of a vote of the Council upon the Commissioner’s conviction
in a Federal or State court of competent jurisdiction for any felony, or for any misdemeanor related
to gambling or moral turpitude, or upon conviction of any charge that the Council finds relates to the
Commissioner’s honesty or ability to fulfill his/hers duties. If the Commissioner is convicted of
violating any part of this Ordinance, he/she shall be immediately terminated. Additionally, the
Commissioner may be terminated for inadequate performance of the duties required, or may

additionally be terminated for associations or conduct that would tend to bring the Commissioner’s

integrity or gaming operation into disrepute.

Section 3.20 Duties of Commissioner. The Commissioner shall perform all duties, exercise

all powers, assume and discharge all responsibilities, and carry out and effect all purposes of this
Ordinance relating to the regulation of all gaming activity. In all decisions, the Commissioner shall
act to promote and ensure integrity, security, honesty, and fairness of the operation and
administration of all gaming activity. The Commissioner’s duties shall include but not be limited to

the following:

28


Section 2.05 Use of Gaming Revenues.

(a) Net revenues from Class II and Class III gaming shall be used only for the following
purposes: to fund Tribal Government operations and programs; provide for the general welfare of
the Tribe and its members; promote Tribal economic development; donate to charitable
organizations; or help fund operations of local government agencies.

(b) If the Tribe elects to make per capita payments to Tribal members, it shall authorize

such payments only upon approval of a plan submitted to the Secretary of the Interior under 25

U.S.C. §2710 (b) (3).

Section 2.06 Audit.

(a) The Tribe shall cause to be conducted annually an independent audit of gaming
operations and shall submit the resulting audit reports to the National Indian Gaming Commission.
(b) All gaming related contracts that result in the purchase of supplies, services, or

concessions in excess of $25,000.00 annually, except contracts for professional legal and

accounting services, shall be specifically included within the scope of the audit that is

described in subsection (a) above.

Section 2.07 Minimum Internal Control Standards

(a) The Gaming Commission shall comply with 25 CFR Part 542 by formally adopting and
making applicable to the Tribe’s gaming operation(s) internal control standards that:
1) Provide a level of control that equals or exceeds those set forth in 25 CFR Part
542, as a published or as revised by mutual agreement between the National Indian Gaming
Commission and the Tribe:

2) Contain standards for currency transaction reporting that comply with 31 CFR

Part 103; and


1) manufacture, development, assembly, sales, or distribution of any gaming
machines, devices, equipment, software, or components thereof;

2) joint ventures with other tribes, entities, persons, etc., related to gaming
activity;

3) management or service contracts with any other Tribes, entities, persons, etc.,
related to gaming activities.

4) any financial loans, grants or other relationship with any Tribe, entity, person
etc., related to gaming activity.

54


Section 1.05 “Class II Gaming” means:

(a) Bingo or lotto (whether or not electronic, computer, or other technologic aids are used)
when players:
1) Play for prizes with cards bearing numbers or other designations;
2) Cover numbers or designations when objects, similarly numbered or designated,
are drawn or electronically determined; and
3) Win the game by being the first person to cover a designated pattern on such
cards;
(b) If played in the same location as bingo or lotto, pull-tabs, punch boards, tip jars, instant
bingo, and other games similar to bingo;
(c) Non-banking card games that:
1) State law explicitly authorizes, or does not explicitly prohibit, and are played
legally anywhere in the state; and
2) Players play in conformity with state laws and regulations concerning hours,

periods of operation and limitations on wagers and pot sizes;

Section 1.06 “Class III Gaming” means all forms of gaming that are not Class I gaming

or Class I] gaming, including but not limited to:
(a) Any banking game, including but not limited to:
1) Card games such as baccarat, chemin de fer, blackjack (21), and pai gow
(if played allowing only one person or entity the opportunity to bank);
2) Casino games such as roulette, craps, and keno;
(b) Any gaming device as defined in 15 U.S.C. §117 (a)(1) and electronic or

electromechanical facsimiles of any game of chance;


Section 3.09 Quorum — Majority Vote. A quorum shall consist of all three (3) members of the

Review Board. All decisions shall be made by a majority vote of the board members.

Section 3.10 Establishment and Authority of the Tribal Gaming Commission. The Viejas

Tribal Gaming Commission is hereby established. The Gaming Commission (also referred to as
Gaming Office) shall exercise all powers necessary to effectuate the purposes of this Ordinance.
The Gaming Commission may exercise any proper power and authority necessary to perform the
duties assigned to it by this Ordinance, and is not limited by the enumeration of powers in this
chapter. The Gaming Commission shall promulgate rules and regulations for the operation of any
gaming establishment and shall hear and resolve all disputes regarding any provision of the
Ordinance. In all decisions, the Gaming Commission shall act to promote and ensure integrity,
security, honesty, and fairness of the operation and administration of gaming and ancillary activities
of the gaming operation. The Gaming Commission shall have the power and authority to deny any
application; to limit, condition, suspend, or restrict any license; make a finding of suitability or
approval of a license, or find suitable the imposition of a fine upon any person or entity licensed, for

any cause deemed reasonable by the Gaming Commission.

Section 3.11 Monthly Report. The Gaming Commissioner shall make at least monthly reports
to the Council within thirty (30) days after the close of the month for which the information is being
required. The report shall at a minimum include a full and complete statement of auditing activities,
expenses and all other financial transactions of the Commission and summary of all licensing

and enforcement actions.

25


Section 11.05 Amendments. All provisions of this Gaming Ordinance are subject to
amendment by the Viejas Tribal Council. All regulations promulgated by the Gaming Commission
are subject to proper revision, repeal or amendment by the Gaming Commission and Review Board.

Section 11.06 Severability. If any provision of this Ordinance, or its application to any
purpose or circumstance, is held invalid by a court of competent jurisdiction, the full remainder of
the provision, or the application of the provision through another person or circumstances, shall not
be affected. If any provision of this Ordinance is determined to be in conflict with any Federal or
State Gaming laws or regulations, or future Tribal — State Compact, the applicable Federal or State
laws and regulations or compact provisions shall prevail as applicable to that conflicting provision of

this Ordinance only. The remainder of this Ordinance shall remain valid and in effect.

Section 11.07 Designated Agent. The designated agent for notice of any official

determination, order, or notice of violation by the NIGC as required by 25 C.F.R. §519.1 is the

Commissioner of the Tribal Gaming Commission;

Section 11.08 Law Enforcement. The designated law enforcement agency as required by

IGRA is the San Diego County Sheriff Department. The procedures set forth in Section 2.09 above
describe the steps taken for a complete investigation. Criminal history checks shall be processed

both on a State and Federal level.

Section 11.09 Effective Date and Supercedure. This Tribal Gaming Ordinance shall take

effect when signed by the Tribal Chairman and upon receipt of approval of the Chairman of the
National Indian Gaming Commission. Upon receipt of approval of the Chairman of the NIGC, this
Tribal Gaming Ordinance shall supercede and replace any and all other Tribal Gaming Ordinance,
Ordinances, laws or resolutions previously adopted or enacted by the Council or Chairman of the

Viejas Band of Kumeyaay Indians.

61


CHAPTER III

ADMINISTRATION AND ENFORCEMENT

Section 3.01 Unauthorized Gaming. Any person who commits any act of unauthorized

gaming on this reservation shall be in violation of this Ordinance and shall be prosecuted in the
appropriate court of competent jurisdiction. Prosecution for such a violation in other than Federal
court is not meant to be exclusive; a finding of guilt or innocence shall not deprive the Federal

government from jurisdiction.

Section 3.02 Ownership- Revenues to Benefit Tribe. The Tribe shall have the sole

proprietary interest in, and sole responsibility for, the conduct of the gaming activity. Such
provision does not, however, limit the Tribe’s ability to enter into a management contract wherein
net profits are divided between the Tribe and other parties to the contract. The Tribe’s share
of net revenues will go entirely to the Tribe and will be used solely for the following purposes:

(a) to fund Tribal government operations or programs;

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

(c) to promote Tribal economic development;

(d) to donate to charitable organizations; or

(e) to help fund operations of local government agencies.

(f) Net revenues from the gaming establishment may be used to make per capita

payments to members of the Tribe pursuant to a plan approved by the Secretary of the Interior.

Section 3.03 Establishment of the Viejas Independent Review Board. The Viejas

Independent Review Board is hereby established. The Review Board shall consist of four (4)

members appointed by a majority vote of the Council. A Board Member shall serve for three (3)

22


14. Section 3.28 Patron Disputes.

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

(1) At least five hundred dollars ($500), the Gaming Facility
Operator shall immediately notify the Tribal Gaming Commission.
The Tribal Gaming Commission shall conduct whatever
investigation it deems necessary and shall determine whether
payment should be made; or

(2) Less than five hundred dollars ($500) and the patron and
operator do not come to an agreement, the Gaming Facility
Operator shall inform the patron of his or her right to request that
the Tribal Gaming Commission conduct an investigation. Upon
request of the patron, the Tribal Gaming Commission shall conduct
whatever investigation it deems necessary and shali determine
whether payment should be made.

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

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

(d) Review of Decision. Within thirty ( 30 ) days after the date of receipt
of the written decision, the aggrieved party may file a petition with the Viejas
Independent Review Board. Upon receipt of the petition the Chairperson of the
Review Board shall immediately forward a copy of the petition to the Gaming
Commissioner. The Review Board shall promulgate procedures to determine
whether patron disputes are eligible for a hearing and for the conduct of any
hearing. The Review Board shall take into consideration the prior decision and
other documentation provided to it by the patron, the Gaming Commission, and
the Gaming Facility Operator. The Chairperson of the Review Board shall then
issue a written decision and mail it to the parties pursuant to the procedures set
forth in Section 3.28 (b). The decision of the Viejas Gaming Review Board shall
be final and binding upon the patron and the Gaming Facility Operator and shall
not be subject to judicial review, dispute resolution or other legal action.


forward a copy of the petition to the Gaming Commissioner. The Chair of the Review
Board will consult with the Gaming Commissioner before ruling on any petition and will
schedule the matter for hearing only if the Review Board disagrees with the Gaming

Commissioner’s recommendation.

12. Section 3.26 Violations of Code — Punishment. Any violation of this Ordinance
may be punished by a fine of no more than Five Thousand Dollars ( $5, 000.00 ) for each

separate count or violation. Each day of violation shall constitute a separate count or
violation under this Ordinance. A violator may also be required to pay costs, storage
fees, and auction or sales fees. All property used or which may be used in activities in
each and every separate violation of this Ordinance may become the property of the
Tribe; persons may be prohibited from trespassing on premises licensed under this
Ordinance, licenses may be suspended, revoked, or limited and gaming establishments
may be closed. All such action shall be taken at the discretion of the Gaming
Commission, subject to the right of appeal to the Viejas Independent Review Board.
Winnings found to have been received in violation of this Ordinance shall be forfeited

and become the property of the Tribe.

13. Section 3.27 Due Process Regarding Enforcement Actions. The Gaming Commission

shall promulgate regulations protecting due process rights of all individuals subject to the
enforcement of this Ordinance. Such regulations shall, at a minimum:

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

(b) provide fair notice and opportunity for hearing before the Gaming
Commission

regarding any revocation or suspension of license, and regarding any
enforcement

action taken pursuant to this Ordinance; and

(c) provide the right to appeal, de novo, any Gaming Commission
disciplinary or

enforcement action to the Viejas Independent Review Board.


3) Establish internal control standards for Class II and Class III games that are not
addressed in the MICS, if any.

(b) In order to verify that the gaming operation is in compliance with the internal control
standards adopted pursuant to paragraph (a), an independent certified public accountant (CPA) shall
be engaged annually to perform “Agreed-Upon Procedures” in the manner provided for in 25 CFR
542.3(f).

(c) Compliance. The Gaming Commission and the National Indian Gaming Commission
shall monitor and enforce compliance with the internal control standards adopted pursuant to
paragraph (a) in the manner provided for in 25 CFR 542.3(g). In addition, the National Indian
Gaming Commission shall, for the purpose of enforcing compliance with the internal control
standards, have to power to:

1) monitor all Class II and Class II] gaming on a continuing basis;

2) inspect and examine all premises on which Class I] and Class III gaming is
conducted; and

3) demand access to and inspect, examine, photocopy, and audit all papers, books,
and records respecting gross revenues of all Class Hi and Class III gaming or any other matters
necessary to ensure and enforce compliance with the MICS.

(d) Enforcement. Any failure to adopt internal control standards pursuant to paragraph (a), to
perform Agreed-Upon Procedures pursuant to paragraph (b), to prevent or obstruct the exercise of
any of the Commission’s powers under paragraph (c), or to comply with the internal control
standards once adopted is a violation of this Ordinance. The Chairman of the National Indian
Gaming Commission shall have the authority to remedy violations of this Ordinance under 25
U.S.C. §2713 and its implementing regulations, and the Tribe shall have all rights and remedies

available thereunder.


TRIBAL GAMING ORDINANCE ?
For the

VIEJAS BAND OF KUMEYAAY INDIANS

CHAPTER |

DEFINITIONS

Section 1.01 Definitions. Unless a different meaning is clearly indicated, the terms
used in this Ordinance shall have the same meaning as defined in the “Indian Gaming Regulatory

Act”, Public Law 100 §497, 102 Stat. 2467, codified at 25 U.S.C. §§2701 et. seq. (Oct. 17, 1988).

Section 1.02 “Calendar Year” means the period beginning on the first day of January at

12:00:01 a.m. and ending the immediately following December 31 at 12:00 o’clock midnight.

Section 1.03 “Chairman” means the Chairman of the National Indian Gaming Commission.

Section 1.04 “Class I Gaming” means:

(a) Social games played solely for prizes of minimal value; or
(b) Traditional forms of Indian gaming when played by individuals in connection with

tribal ceremonies or celebrations.


background investigation, the Tribe or its agent shall promise to keep confidential the identity of

each person interviewed in the course of the investigation.

(a) Pursuant to any approved compact between the Tribe and the State of California

any applicable procedures for Tribal licensing and/or State licensing or certification of all

gaming employees for the conduct of Class III gaming are hereby adopted and incorporated by

reference.

(b) The minimum procedures for conducting background investigations on license applicants

are:

1)
2)
3)
4)
5)
6)
1)
8)

+2)

Criminal history check;

Civil history check;

Financial and credit check;

Reference check;

Previous business and employment check;

Relative check;

Business and personal associates check;

Educational verification;

Document the disposition of all potential problem areas noted and disqualifying

information needed.

10) Any other investigation deemed necessary or appropriate by the Tribal Gaming

Office.

(c) The Tribal Gaming Commissioner is primarily responsible for the conduct of the

background investigations and suitability determinations in consultation with the National Indian

Gaming Commission;

(d) The Tribal Gaming Commission shall be responsible for conducting, reviewing and either

approving or disapproving the investigative work;

17


ANONAL ING,

x %
5 é
S
%, >
March 11, 2008 NG comm?

Via U.S. Mail and Facsimile

Bobby Barrett, Chairman

Viejas Band of Kumeyaay Indians
#1 Viejas Grade Road

Alpine, CA 91903

Fax: (619) 445-5337

Jerry McCawley, Interim Gaming Commissioner
5000 Willows Road

Alpine, CA 91903

Fax: (619) 659-1968

RE: Amendment to Viejas Band of Kumeyaay Indians Gaming Ordinance

Dear Chairman Barrett and Mr. McCawley:

On February 27, 2008, Mr. McCawley on behalf of the Viejas Band of Kumeyaay
Indians (Band) requested that the Office of General Counsel for the National Indian
Gaming Commission (NIGC) review and approve the Band’s amendment to the Viejas
Band of Kumeyaay Indians Gaming Ordinance (gaming ordinance). The Band amended
the gaming ordinance on February 5, 2008, via Resolution No. 020508A. In this
amendment, the Band clarified its compliance with NIGC Minimum Internal Control
Standards (MICS) for Class II and III gaming and added an independent review board to
promulgate regulations.

This letter constitutes approval of the amendment because nothing therein conflicts with
the requirements of the Indian Gaming Regulatory Act (IGRA) and the Commission’s

regulations.

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

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


Section 4.06 Failure of Applicant to Disclose Material Information. An applicant for

licensing shall make true and full disclosure of all information to the Gaming Commission necessary
or appropriate to carry out the policies of this Tribe relating to licensing and control of the gaming
operation. It is the duty of the applicant to disclose all information material to whether the
applicant’s involvement with gaming would jeopardize or compromise the Tribal interest, whether
or not the applicant has been specifically requested to provide that information. It shall constitute a
violation of this Ordinance to fail to disclose, to mislead or to misstate any such material information

to the Commission.

Section 4.07 Temporary Employment Licenses. The Gaming Commission may issue a

temporary license to any person or entity applying for a license to work in or do business with a
licensed gaming establishment which shall be valid pending the completion of a background
investigation of the applicant. In no event shall such temporary license be valid for longer than

180 days.

Section 4.08 Parameters of Licenses. Violation of any material provision of this Ordinance

or any of the Gaming Office’s regulations by a licensee, its agent, or employee shall be deemed
contrary to the public health, safety, morals, good order and general welfare of the Viejas Tribe and
the inhabitants of the Viejas Reservation, and shall be deemed grounds for refusing to grant or
renew a license, suspension or revocation of a license, or shall constitute grounds for the imposition
of sanctions by the Gaming Office or Commissioner. If the Commission elects to resolve disputes in
a manner other than revocation of a license, such agreement shall be made in writing and supersede
any conflicting provisions of this section, so long as the agreement provides a reasonable avenue for
the Tribe to ensure a licensee’s compliance with all other aspects of this Gaming Ordinance.

Acceptance of a gaming license or renewal on the part of the licensee shall constitute the licensee’s

40


Section 1.12 “Game similar to bingo” means any game that meets the requirements for

bingo under Section 1.05 (a) of this part and that is not a house banking game under Section 1.06 of

this part.

Section 1.13 “Gaming employee” means any person employed by the Viejas gaming

operation engaged in the conduct of Class II or Class III Gaming activity as well as any primary

management official or key employee.

Section 1.14 “Gaming operation” means each economic entity that is licensed by a tribe,

operates the games, receives the revenues, issues the prizes, and pays the expenses. A gaming
operation may be operated by a tribe directly, by a management contractor, or, under certain
conditions, by another person or other entity. The operation also includes all ancillary casino

activities which enhance or support the gaming operation.

Section 1.15 “House banking game” means any game of chance that is played with the house
as a participant in the game, where the house takes on all players, collects from all losers, and pays

all winners, and the house can win.

Section 1.16 “Indian lands” means:
(a) Land within the limits of an Indian reservation; or
(b) Land over which an Indian tribe exercises governmental power and that is either--

1) Held in trust by the United States for the benefit of any Indian tribe or individual;
or

2) Held by an Indian tribe or individual subject to restriction by the United States

against alienation.


(c) Any sports betting and pari-mutuel wagering including but not limited to wagering
on horse racing, dog racing or jai alai; or

(d) Lotteries.

Section 1.07 “Collateral agreement” means any contract, whether or not in writing,

that is related either directly or indirectly, to a management contract or to any rights,
duties, or obligations created between a tribe (or any of its members, entities, or organizations)
and a management contractor or subcontractor (or any person or entity related to a management

contractor or subcontractor).

Section 1.08 “Commission” means the National Indian Gaming Commission.

Section 1.09 “Compact” means any agreement reached between the Tribe and the State of
California pursuant to 25 U.S.C. §2710 (d) and approved by the Secretary of the Interior. Any such

agreement shall affect the scope and regulation of Class III gaming activities only.

Section 1.10 “Electronic, computer or other technologic aid” means a device such as
a computer, telephone, cable, television, satellite or bingo blower and that when used:

(a) is not a game of chance but merely assists a player or the playing of a game;

(b) is readily distinguishable from the playing of a game of chance on an electronic
or electromechanical facsimile; and

(c) is operated according to applicable Federal communications law.

Section 1.11 “Electronic or electromechanical facsimile” means any gambling device as

defined in 15 U.S.C. §117 (a) (2) or (3).


Section 7.04 Approval of Gaming Equipment. The Gaming Commission shall have the
discretion to review and approve all gaming equipment and other devices used in the gaming
operation as to quality, design, integrity, fairness, honesty, and suitability.

(a) The Gaming Commission may require a prototype or sample of any model of gaming
equipment or other device used in the gaming operation to be placed in the custody of the
Commissioner and retained as a control for comparison purposes.

(b) The Gaming Commission may contract with any outside independent Gaming Test
Laboratory or other professional expertise it deems necessary or appropriate to ensure the integrity
of gaming devices, equipment, supplies, etc.

(c) Any evidence that gaming equipment or other devices used in the gaming operation have
been tampered with or altered in any way, which would affect the integrity, fairness, honesty or

suitability of the equipment or device shall be immediately reported to the Gaming Commission.

Section 7.05 Posting of Rules. The Rules of each authorized game offered at any duly

licensed establishment shall be posted in a conspicuous location and shall be clearly legible.

Section 7.06 Gaming Related Activity of the Tribe. The Tribal Gaming Commission shall
have full jurisdiction for regulatory compliance and enforcement of any other gaming related activity
that the Tribe may elect to conduct. The Gaming Commission shall promulgate such regulations
as it deems necessary to ensure the integrity of such activity and to ensure compliance with all
applicable Federal laws and regulations. Gaming Commission approval with regard to compliance
with applicable gaming laws and regulations, shall be required for any contracts related to any such
gaming related activities. For the purposes of this section, such gaming related activities shall

include but not be limited to:

53


Chapter IV

Licensing

Section 4.01 Issuance of Tribal Gaming Licenses. The Gaming Office shall consult with

appropriate law enforcement officials concerning any gaming licenses it may issue. If, after issuance
of a gaming license by the Gaming Commission Office, reliable information is received that a
licensed employee does not meet the standard established under Section 2.11 of this Ordinance, the

Gaming Office shall suspend such license.

Section 4.02 Non ~ Transferability of License. Any license issued pursuant to the provision

of this Ordinance is valid only for the person or entity at the place of business shown on the face
thereof. It is not assignable or otherwise transferable to any other person or entity for any other

location without approval of the Commissioner.

Section 4.03 Granting of License. The Commission, upon completion of appropriate

background investigation and suitability determination shall either grant or deny a license. The
issuance of a license shall be done only provided that,

(a) A completed license application has been received;

(b) All applicable licensing fees have been paid;

(c) No objection has been raised by Federal or State Gaming Officials.

Section 4.04 Suitability Determination, License Denial. The Commissioner may not grant a

license to any applicant who has been convicted of any felony or gaming offense. The
Commissioner may deny a license to any applicant (employee or vendor), or may suspend

or revoke the license of any employee or vendor who:

36


Section 3,05 Purpose and Authority of Review Board. The Review Board shall be responsible

for the review and approval of any Tribal gaming regulations promulgated by the Commission under
the authority of this ordinance. In addition, the Review Board shall serve as a final appeal board to
review any disputes between patrons and the gaming operation as well as review and/or hear any

appeals for any contested licensing actions or fines imposed by the Commission.

Section 3.06 Compensation for Review Board Members. Review Board members shall be
paid a stipend at a rate to be established annually by the Viejas Tribal Gaming Office budget, and

approved by the Tribal Council. Initially the stipend shall be at the rate of $350.00 per member per
meeting. Board members shall be reimbursed for actual expenses incurred on Viejas Tribal Gaming
Office business, including necessary travel expenses. In no event shall compensation be based on a

percentage of net profits from gaming operation of the Tribe.

Section 3.07 Selection of Chairperson. The Review Board shall select annually from its
membership a chairperson, who shall chair all necessary hearings and meetings. If the chairperson
determines that a meeting must be continued or postponed, the chairperson may set the time and
date for additional meeting/hearing times. The chairperson shall communicate the scheduling of all

meetings/hearings with the Commissioner.

Section 3.08 Meetings/Hearings. The Review Board shall not meet more than twice per

month unless deemed necessary by the chairperson or at special request of the Commissioner.
Should additional meetings be necessary, the chairperson and Commissioner shall concur on
mutually agreeable dates and times. Meeting and hearings shall take place on the Viejas reservation.
Meetings and hearing proceedings shall have official minutes recorded by the secretary or
administrative assistant of the Commission. Records of board meetings and hearings shall be

exempt from state subpoena.

24


agreement to be bound by all regulations and conditions of the Commission or Gaming Office and
by the provisions of this Ordinance as the same are now, or may hereafter be amended or
promulgated, and to cooperate fully with the Commissioner and Gaming Office. It is the
responsibility of the licensee to keep informed of the contents of such regulations, amendments,
provisions, and conditions, and ignorance thereof will not excuse violations. All licenses shall have
not more than a two year duration and will require renewal thereafter in accordance with procedures

set forth by the Commission.

Section 4.09 Licensing of Vendors. The Gaming Office may authorize, require, and issue
such licenses as the Gaming Office by regulation may provide, to any person or entity to engage in
the selling, distributing, or otherwise supplying of gambling equipment or paraphernalia, gaming
services, and any other equipment, supplies, materials, etc. for use in connection with the licensed

Gaming Facility or operation.

Section 4.10 Licensing of Gaming Facility. Each Tribal Gaming Facility shall be licensed by

the Tribal Gaming Commission. Prior to the issuance of a facility license the Gaming Commissioner
shall:

(a) determine that the facility is constructed in conformance with all applicable
building codes;

(b) ensure that Security and Surveillance systems are in place to adequately provide
for the safety and security of employees and patrons and for the protection of Tribal assets;

(c) ensure that all employees are properly licensed and that the facility is otherwise

in compliance with all applicable gaming laws and regulations.

41


years and may be removed from of the Council. A Board Member shall serve for three (3) years and
may be removed from office prior to the end of their term only for cause and by a unanimous vote of
Council. In order to establish annually staggered terms, the first Board Members shall be appointed
by the Council as follows: one (1) member shall serve a three (3) year term, one (J) shall serve a two
(2) year term, and one (1) shall serve a one (1) year term for the initial appointment terms only.
Thereafter, all successive terms of appointment shall run for three (3) years. Vacancies shall be

filled within thirty (30) days by the Council.

Section 3.04 Review Board Qualifications for Membership. Each member shall have a

minimum of a four (4) year college degree and eight (8) years of experience in accounting, gaming
management or gaming regulation, or eight (8) years of law experience, or an equivalent
combination thereof. Each member shall be subject to the same background and licensing standards
as currently required for top-level casino management positions according to this Ordinance and
National Indian Gaming Commission regulations. No person shall be eligible to serve as a Viejas
Independent Review Board member who has been convicted or is currently being prosecuted for any
crime of moral turpitude or any felony. Viejas Independent Review Board members may not be
concurrently employed in any gaming operation, may not concurrently hold any elected Tribal
office, and may not be related to any person employed by the Tribal Gaming Operation. Board
Members and their immediate family members may not engage in any gaming activity at the Viejas
Tribal Gaming operation. For the purpose of this section “relative” or “immediate family member”
shall be defined as mother, father, (including step, adopted, or in-law for all), son, daughter, brother,

sister, grandparent, niece, nephew, uncle, aunt, and first cousins.

23


CHAPTER XT

MISCELLANEOUS

Section 11.01 Security. Each licensed gaming establishment must provide for reasonable
security. All security personnel must be licensed by the Gaming Commission.

Section 11.02 Surveillance. The Gaming facility shall provide all surveillance equipment,
supplies, and space as deemed necessary by the Tribal Gaming Commission for the reasonable
protection of patrons, employees, and Tribal assets. All surveillance systems, equipment, rooms,
ect., shall be under the control and jurisdiction of the Tribal Gaming Commission. All surveillance

staff shall be employees of and report only to the Tribal Gaming Commission.

Section 11.03 Maintenance of Ordinance and Regulations. Each licensee shall obtain,

maintain and keep current a copy of the Gaming Ordinance and regulations promulgated thereunder,
which shall be located at the premises used for the conduct of any licensed gaming activity. The
Ordinance and regulations shall be produced by the licensee and shown to any authorized person
upon demand. That a licensee may not have a current copy of the Ordinance, or each of the
regulations of the Gaming Commission, shall not in way diminish the licensee’s obligation to abide

by the Ordinance and regulations.

Section 11.04 Compliance with Other Laws. The construction, maintenance and operation of

any facility in which gaming and related activities are to take place shall be in a manner which
adequately protects the environment and the public health and safety and shall comply with any
otherwise applicable Tribal and Federal laws relating to environmental protection and public health

and safety.

60


15. Section 7.01 Prohibition Against Gaming. No person licensed by the Gaming
Commission shall engage, conduct or condone any game unless such game is approved

by the Gaming Commission and regulations for rules governing such game have been
duly promulgated by the Gaming Commission and approved by The Viejas Independent

Review Board.


“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 tribe’s being unable to hire you in a gaming employee, non-
gaming employee, 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 application.”

2. The following notice shall be placed on the application form for a key employee or
primary official before that form is filled out by an applicant:

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

3. Existing gaming employees, non-gaming employees, key employees and primary
management officials who have not filled out applications with the privacy act notice or false
statement notice as described in section 2.09, (B) (1) and (2) above shall be notified in writing that
they shall either:

(a) Complete a new application which contains the appropriate Privacy Act
notice and/or false statement notice; or

(b) Sign a statement that contains the Privacy Act and/or false statement notice.

14


Section 6.04 Prohibition Against Embezzlement. Any delay, maneuver or action of any kind
which in the opinion of the Commissioner is effectuated by any licensee to unlawfully divert
gaming or other proceeds properly belonging to the Tribe shall constitute grounds for taking
sanctions against that licensee. If the Gaming Commission finds an unlawful diversion was
conducted or attempted, it shall sanction the licensee. Sanctions may include fining, revoking,

suspending, limiting or refusing to renew the license, or prosecution.

St


Section 9.02 Prohibition Against Electronic Aids. Except as specifically permitted by the
Commissioner, no person shall possess with the intent to use, or actually use, at any table game,
either by himself or in concert with others any calculator, computer or other electronic, electrical, or
electromechanical device to assist in projecting an outcome at any table game, to keep track of or
analyze the cards having been dealt, to change the probabilities of any table game or the playing

strategies to be utilized.

Section 9.03 Violations and Sanctions. Any patron or employee who commits any violation

of this Chapter shall be deemed to have committed a violation of this Ordinance. If the Commission
should have reasonable cause to believe any such violation was committed, it may impose licensing

sanctions, fines, prosecution and exclusion.

58


(f) The Review Board members and the Commissioner shall each have full power
and authority to issue subpoenas and compel the attendance of witnesses for hearing at any place
within the Reservation, to administer oaths and to require testimony under oath. Any process or
notice may be served in the manner provided for service of process and notices in civil actions. The
Review Board and the Commissioner may pay such transportation and other expenses of witnesses
as it may deem reasonable and proper. Any licensee failing to comply with any subpoena shall be

subject to immediate revocation of their gaming license.

Section 3.22 Confidentiality of Information. Each member of the Viejas Independent Review
Board and each employee of the Tribal Gaming Commission shall be required to sign a
confidentiality agreement, and will be responsible for ensuring the strictest standards of
confidentiality with respect to all information. All information provided to the Viejas Independent
Review Board and Gaming Commission and all information obtained by the Review Board and
Tribal Gaming Commission in the performance of its duties, shall be kept confidential and shall not
be disclosed to any person or organization without the written consent of the Viejas Tribal Council.
The Review Board and the Commissioner may refuse to reveal, in any court proceeding the identify
of any informant, or the information obtained from the informant, or both the identity and the

information.

Section 3.23 Powers of Delegation. The Viejas Tribal Gaming Commission may organize

itself into a functional division as it may deem necessary and from time to time alter such plan of
organization as it may deem expedient. The Tribal Commission shall establish its own budget for
operations, and acquire such furnishings, equipment, supplies, stationery, books, motor vehicles, and
other things as it may deem necessary or desirable in carrying out its functions, and incur such other

expenses within the limit of funds available to it, as it may deem necessary. Within the limits of a

31


Council approved budget, the Gaming Commission shall employ and fix the salaries of or contract
for the services of such professional, technical and operational personnel and consultants as the
execution of its duties and the operation of the Gaming Commission may require. At the Council’s
discretion, said budget may be reviewed and modified by the Council every six (6) months. Upon
the end of the budget year, any surplus which might exist shall revert to the Tribal Government. The
Commissioner shall keep and maintain a file of all applications for licenses under this chapter,
together with a record of all actions taken with respect to such applications. The Commissioner shall

keep and maintain such other files and records as he/she may deem desirable.

Section 3.24 Sanctions. Any person who engages in activities on property subject to the
provisions of this Gaming Ordinance without a license, in violation of any license or terms imposed
thereon, in violation of terms of suspension, or in violation of the Ordinance, including any person
who unlawfully trespasses upon any premises licensed by this Ordinance without the consent of the
licensee and/or the Gaming Office shall be in violation of this Ordinance and be subject to sanctions

in accordance with the provisions of Section 3.26 hereinafter.

Section 3.25 Limitations Period. No fine shall be assessed nor any action taken for any

violation under the preceding section unless the action is initiated within two (2) years of the

commission of the offense.

Section 3.26 Violations of Ordinance — Punishment. Any violation of this Ordinance may be

punished by a fine of no more than Five Thousand Dollars ($5,000.00) for each separate count or
violation. Each day of violation shall constitute a separate count or violation under this Ordinance.
A violator may also be required to pay costs, storage fees, and auction or sales fees. All property
used or which may be used in activities in each and every separate violation of this Ordinance may

become the property of the Tribe; persons may be prohibited from trespassing on premises licensed

32


Section 5.07 Fee for Investigation Cost. The Gaming Commission shall require a potential

Contractor to pay a fee to cover the actual cost of the investigation necessary to reach a

determination required in Section 5.04 of this Chapter.

Section 5.08 Dispute Resolution. If any dispute arises as to the proper compliance with or

interpretation of the foregoing Sections of this chapter and appendices, the procedures set forth in
this Section shall apply.

(a) Notice. The party asserting noncompliance or seeking an interpretation shall serve
written notice on the other party or parties. The notice shall identify the specific Ordinance
provision alleged to have been violated or in dispute and shall specify in detail the factual basis for
the alleged noncompliance or the proffered interpretation of the Ordinance provision for which
interpretation is sought.

(b) Voluntary Resolution. Representatives of the Tribe and the other party or parties shall
meet within ten (10) days following receipt of the notice in an effort to resolve the dispute.

(c) Arbitration Procedures. If the dispute is not resolved to the satisfaction of the parties
within thirty (30) days after service of the notice set forth above, the dispute shall be adjudicated
through arbitration in California or such other place as the parties may agree as follows:

1) The parties shall attempt to agree upon one arbitrator with expertise in the
subject matter of the dispute.

2) If the parties are unable to agree on an arbitrator, each party shall select an
arbitrator within ten (10) days of the commencement of the arbitration and the two (2) arbitrators
shall mutually appoint a third arbitrator within twenty (20) days of their appointment. If the two (2)
arbitrators are unable to agree on the appointment of a third arbitrator within twenty (20) days, the

third arbitrator shall be appointed by the American Arbitration Association.

47


(if any) to the National Indian Gaming Commission for inclusion in the Indian Gaming Individuals
Records System.

(d) With respect to license applicants, the Tribal Gaming Office shall retain applications for
licensing and employment and reports (if any) of background investigations for inspection by the
Chairman of the National Indian Gaming Commission or his or her designee for no less than three
(3) years from the date denial or revocation of a license, or termination of employment, whichever is

later.

Section 2.15 Granting a Gaming License.

(a) If, within a thirty (30) day period after the National Indian Gaming Commission receives
a report, the National Indian Gaming Commission notifies the Tribe that it has no objection to the
issuance of a license pursuant to a license application filed by a key employee or a primary
management official for whom the Tribe has provided an application and investigative report to the
National Indian Gaming Commission, the Tribe may issue a license to such applicant.

(e) The Tribe shall respond to a request for additional information from the Chairman
of the National Indian Gaming Commission concerning a key employee or a primary management
official who is the subject of a report. Such a request shall suspend the 30-day period under
paragraph (a) of this section unti! the Chairman of the National Indian Gaming Commission receives
the additional information.

(c) If, within the thirty (30) day period described above, the National Indian Gaming
Commission provides the Tribe with a statement itemizing objections to the issuance of a license to a
key employee or to a primary management official for whom the Tribe has provided an application

and investigative report to the National Indian Gaming Commission, the Tribe shall reconsider the

20


(g) Provide that all financial statements and documentation referred to in section (f) be

maintained for minimum of five (5) years.

Section 6.02 Gaming Commission Oversight of Internal Fiscal Affairs. The Gaming

Commission shall, by regulation ensure the conduct of audits of the financial statements of all
gaming operations at least annually. Such audits must:

(a) be made by outside independent Certified Public Accountants holding a permit issued
by the State of California to practice public accounting, such accountants shall be selected by and
contracted with the Gaming Commission;

(b) include an opinion that the financial statement fairly and accurately present the financial
condition of the gaming operation in accordance with generally accepted accounting principals
(GAAP) and in accordance with the Governmental standards of accounting and the gaming auditing
standards established by the American Institute of Certified Public Accountants;

(c) disclose whether the accounts, records and control procedures maintained by the
gaming operation are as required by the regulations promulgated by the Gaming Commission; and

(d) provide for preliminary review of the internal control structure upon adoption of the
policies and procedures by the entity, provide an opinion regarding the adequacy of controls, to
disclose any deviation from prescribed rules and regulations, and report such findings to the Gaming

Commission and management.

Section 6.03 Gaming Commission's Right to Conduct Audit. The Gaming Commission shall
be able to retain its own staff auditors and accountants, or contract an accountant(s), to conduct its

own audits of any gaming operation.

50


CHAPTER X
NATIONAL INDIAN GAMING COMMISSION

AND TRIBAL — STATE COMPACTS

Section 10.01 National Indian Gaming Commission — Regulations. Notwithstanding any

provision in this Gaming Ordinance or any regulations promulgated thereunder, the Tribal Gaming
Commission is fully empowered to comply with all regulations promulgated by the National Indian
Gaming Commission, (NIGC), including but not limited to, all requirements to report ordinances,
contracts, license applications, background checks, and other information to the National Indian
Gaming Commission. The Viejas Tribal Gaming Commissioner shall also serve as the designated

agent as required under the National Indian Gaming Commission regulations.

Section 10.02 National Indian Gaming Commission — Assessment. Notwithstanding any

provisions in the Gaming Ordinance or any regulation promulgated thereunder, the Tribal Gaming
Commission is fully empowered to ensure compliance with all assessments authorized by the
National Indian Gaming Commission. Such assessments shall be directed to be paid by the Gaming

operation.

Section 10.03 Compact with the State of California, Notwithstanding any provision in this

Gaming Ordinance or any regulation promulgated thereunder, the Gaming Commission is fully
empowered to comply with the provisions of any compact between the Tribe and the State of

California.

59


staggered terms, the first Board members shall be appointed by the Council as follows:
one (1) member shall serve a three (3) year term, one (1) shall serve a two (2) year term,
and one (1) shall serve a one year (1) year term for the initial appointment terms only.
Thereafter, all successive terms of appointment shall run for three (3) years. Vacancies
shall be filled within thirty (30) days by the Council.

5. Section 3.04 Review Board Qualifications for Membership. Each member shall have a

minimum of a four (4) year college degree and eight (8) years of experience in
accounting, gaming management or gaming regulation, or eight (8) years of law
experience, or an equivalent combination thereof. Each member shall be subject to the
same background and licensing standards as currently required for top-level Casino
management positions according to this ordinance and National Indian Gaming
Commission regulations. No person shall be eligible to serve as a Viejas Independent
Review Board member who has been convicted or is currently being prosecuted for any
crime of moral turpitude or any felony. Viejas Independent Review Board members may
not be concurrently employed in any gaming operation, may not concurrently hold any
elected Tribal office, and may not be related to any person employed by the Tribal
Gaming Operation. Board members and their immediate family members may not
engage in any gaming activity at the Viejas Tribal Gaming operation. For the purpose of
this section “relative” or “immediate family member” shall be defined as mother, father,
(including step, adopted, or in-law for all), son, daughter, brother, sister, grandparent,

niece, nephew, , uncle, aunt and first cousins.

6. Section 3.05 Purpose and Authority of Review Board. The Review Board shall be

responsible for the review and approval of any Tribal gaming regulations promulgated by
the Commission under the authority of this ordinance. In addition, the Review Board

shall serve as a final appeal board to review any disputes between patrons and the gaming
operation as well as review and/or hear any appeals for any contested licensing actions or

fines imposed by the Commission.

7. Section 3.06 Compensation for Review Board Members. Review Board members



(1) is a career offender or a member of a career offender organization or an
associate of a career offender or career offender organization in such a manner which creates
probable cause to believe that the association is of such a nature as to be detrimental to the proper
operation of the authorized gaming or related activities in this State. For the purpose of this
paragraph, career offender shall be defined as any person whose behavior is pursued in an
occupational manner or context for the purposes of economic gain utilizing such methods as are
deemed criminal violations of Tribal law, Federal law or the laws and the public policy of this State.
A career offender organization shall be defined as any group of persons who operate together
as career offenders;

(m) is a person whose prior activities, criminal record, if any reputation, habits and
associations pose a threat to the public interest of the Tribe or to the effective regulation and control
of Gaming, or creates or enhances the dangers of unsuitable, unfair or illegal practices, methods, and
activities in the conduct of gaming, or the carrying on of the business and financial arrangements
incidental thereto; or

(n) fails to provide any information requested by Tribal Gaming Office within

fourteen (14) days of the request for the information.

Section 4.05 Licenses and Regulation of Class II] Gaming Activities; Tribal — State Compact

Compliance. The Gaming Office shall follow each, every, and all of the requirements for licensing
and regulation of Class III gaming pursuant to the terms and conditions of any compact between the

Tribe and the State of California.

39


(a) has knowingly and willfully provided false statements or information or omitted
material information on his or her license application or background questionnaire; or

(b) is determined to be a person whose prior activities, criminal record if any, or
reputation, habits, and associations pose a threat to the public interest or to the effective regulation
and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, and
methods, and activities in the conduct of gaming or the carrying on of the business and financial
arrangements incidental thereto, or jeopardizes the integrity or reputation of the Tribe or its Gaming
Operation; or

(c) has violated, failed or refused to comply with the provisions, requirements,
conditions, limitations or duties imposed by any provision of this ordinance, the Compact, or any
provision of any Federal, State, or Tribal Gaming Regulations, or when any such violation has
occurred upon any premises occupied or operated by any such person or over which he or she has
substantial control;

(d) knowingly causes, aids, abets, or conspires with another to cause any person or
entity to violate any of the laws of this State or the applicable rules of the State or Tribal Gaming
Office, or the provisions of the Compact;

(e) has obtained a State Gaming license or certification or Tribal license by fraud,
misrepresentation, concealment or through inadvertence or mistake;

(f) has been convicted of, or forfeited bond upon a charge of, or plead guilty to,
forgery, larceny, extortion, conspiracy to defraud, willful failure to make required payment or
reports to any Government, whether Tribal, State, or the United States; or U.S. Government Agency

at any level, or filed false reports therewith, or of any similar offense(s), or of bribing or otherwise

37


END OF THE TRIBAL GAMING CODE OF THE VIEJAS BAND OF KUMEYAAY INDIANS
DULY ADPOTED THIS__31_ DAY OF _ JULY 199 8.

Trib: rman


Section 1.23 “Person having management responsibility for a management contract” means

the person designated by the management contract as having management responsibility for the

gaming operation, or a portion thereof.

Section 1.24 “Primary management official” means

(a) The person having management responsibility for a management contract;
(b) Any person who has authority:

1) To hire and fire employees; or

2) To set up working policy for any portion of the gaming operation; or

(c) The chief financial officer or other person who has financial management responsibility.

Section 1.25 “Secretary” means the Secretary of the Interior.

Section 1.26 “Viejas Tribal Gaming Office” (also known as the Viejas Gamin

Commission)” means the Viejas Tribe Gaming Office, established as the Tribal Governmental

gaming regulatory agency.

Section 1.27 “Viejas Tribal Gaming Agent” means any of the members or employees of the

Viejas Tribal Gaming Office, or Commission.

Section 1.28 “Council” means the Viejas Tribal Council.

Section 1.29 “Commissioner” means the Commissioner of the Viejas Tribal Gaming Office

appointed by the Council as the chief administrator of Viejas Tribal gaming regulatory agency.

Section 1.30 “Tribe” means the Viejas Band of Kumeyaay Indians.
Additionally, any definitions set forth in any provisions of a compact signed by the Tribe and the

State of California are adopted as if set forth at this point.

7


Chapter VI

Auditing, Fiscal Oversight, and Internal Controls

Section 6.01 Minimum Procedures for Control of Internal Fiscal Affairs. The Gaming
Commission shall promulgate regulations for internal controls and fiscal audits of all gaming
operations. At a minimum, those regulations shall:

(a) Prescribe minimum procedures for safeguarding the gaming operation’s assets and
revenues, including recording of cash and evidences of indebtedness and mandatory count
procedures. Such procedures shall establish a control environment, accounting system, and
control procedures that safegaurd the assets of the organization, assures that operating transactions
are properly recorded, and encourage adherence to prescribed policies;

(b) Prescribe minimum reporting requirements to the Gaming Commission;

(c) Provide for the adoption and use of internal audits by Commission auditors and
Certified Public Accountants licensed to practice accounting in the State of California.

(d) Ensure that a uniform code of accounts and accounting classifications are formulated to
assure consistency, comparability and effective disclosure of financial information. Such Code
shall require that records be retained that reflect statistical drop (amount of cash wagered by
patrons), statistical win ( amount of cash won by the gaming operation ) and the percentage of
statistical win to statistical drop, or provide similar information, for each type of game or each
gaming device.

(e) Prescribe the intervals at which such information shall be furnished;

(f) Provide for the maintenance of documentation (i.e., checklists, transaction forms,
programs, reports, etc.) to evidence all internal work performed as it relates to the requirements of

this section; and

49


Chapter VIH

Exclusion or Ejection of Individuals

Section 8.01 List of Undesirables. The Gaming Commission may, by regulation, provide for
the establishment of a list of persons who are to be excluded or ejected from any duly licensed
gaming operation. The list may include any person whose presence in the gaming establishment is
determined by the Gaming Commission to pose a threat to the interests of the Tribe, the gaming

public, or to licensed gaming.

Section 8.02 Prohibition Against Listed Individuals. It shall be violation of this Ordinance for
any licensed employee to knowingly fail to exclude or eject from the gaming establishment any
person(s) placed on the list referred to in Section 8.01. It shall be a violation of this Ordinance for
any person whose name appears on the list referred to in Section 8.01 to enter into or engage in any
game at a duly licensed gaming establishment, and any such presence shall be considered

trespassing.

Section 8.03 Prohibition Against Certain Individuals, \t shall be a violation of this Ordinance
for any licensee who knowingly fails to exclude or eject from the gaming establishment any

individual who is under the age of eighteen years and engaging in gaming activity.

55


CHAPTER IT

ORDINANCE

Section 2.01 Purpose.
The Viejas Band of Kumeyaay Indians (hereinafter “Tribe”), a Federally recognized
Sovereign Indian Tribe hereby enacts this ordinance to authorize and set the terms for Class II and

Class III gaming operations on Tribal lands.

Section 2.02 Gaming Authorized.

Class II gaming as defined in the Indian Gaming Regulatory Act, P. L. 100-447, 25 U.S.C.
§2703 (7) (a) (‘IGRA”) and by the regulations promulgated by the National Indian Gaming
Commission at 25 C.F.R. §502.3 (as published in the Federal Register at 57 FR 12382-12393,
April 9, 1993) is hereby authorized. Additionally, all forms of Class III gaming set forth in any

Compact between the Tribe and the State of California are authorized.

Section 2.03 Ownership of Gaming.

The Tribe shall have the sole propriety interest in and responsibility for the conduct of any
gaming operation authorized by this ordinance (unless the Tribe elects to allow individually

owned gaming).

Section 2.04 License Required.

A Tribal license shall be required for each place, facility, or location on Tribal lands where

gaming occurs pursuant to 25 C.F.R. §522.4 (b) (6).


Cc. Compliance. The Gaming Commission and the National Indian Gaming
Commission shall monitor and enforce compliance with the internal
control standards adopted pursuant to paragraph A in the manner provided
for in 25 CFR 542.3(g). In addition, the National Indian Gaming
Commission shall, for the purpose of enforcing compliance with the

internal control standards, have the power to:

1. monitor all Class II and Class II] gaming on a continuing basis;

2. inspect and examine all premises on which Class II or Class IIT

gaming is conducted; and

3. demand access to and inspect, examine, photocopy, and audit all
papers, books, and records respecting gross revenues of all Class IT
and Class III gaming or any other matters necessary to ensure and

enforce compliance with the MICS.

D. Enforcement. Any failure to adopt internal control standards pursuant to
paragraph A, to perform Agreed-Upon Procedures pursuant to paragraph
B, to prevent or obstruct the exercise of any of the Commission’s powers
under paragraph C, or to comply with the internal control standards once
adopted is a violation of this Ordinance. The Chairman of the National
Indian Gaming Commission shall have the authority to remedy violations
of this ordinance under 25 U.S.C. 2713 and its implementing regulations,
and the Tribe shall have all rights and remedies available thereunder.

4. Section 3.03 Establishment of the Viejas Independent Review Board. The Viejas

Independent Review Board is hereby established. The Review Board shall consist of
four (4) members appointed by a majority vote of the Council. A Board Member shall
serve for three (3 ) years and may be removed from office prior to the end of their term

only for cause and by a unanimous vote of Council. In order to establish annually


(e) Hiring, pursuant to the approval of the Tribal Council, such professional,
clerical, technical and administrative personnel as may be necessary to carry out the provisions of
this Ordinance.

(f) Inspect, review and copy all records, documents, equipment and facilities,

or anything else necessary and pertinent to enforcement of any provisions of this Ordinance.

(g) Making decisions and execute any sanctions on any person subject to the

jurisdiction of this Ordinance, as deemed necessary, appropriate and lawful.

Section 3.21 Right of Inspection. The Commissioner and his/her agents, inspectors, and
employees have the authority:

(a) to inspect and examine all premises wherein gaming is conducted or gambling
devices or equipment are used, manufactured, sold or distributed;

(b) to inspect all equipment and supplies in, upon or about a gaming establishment,
or inspect any equipment or supplies wherever located, which may, or have been used in the gaming
establishment;

(c) to summarily to seize and remove from a gaming establishment (or wherever
located) and impound such equipment or supplies for the purpose of examination, inspection,
evidence, or forfeiture;

(d) to demand immediate access to and inspect, examine and audit all papers,
books, and records of applicants and licensees, and require verification of income and all other
matters affecting the enforcement of the policy of or any of the provisions of this Ordinance;

(e) to seize and impound any patron’s winnings which the Gaming office has
reason to believe may have been won or obtained in violation of this Ordinance pending a civil

forfeiture hearing on such seizure;

30


(e) The Tribal Gaming Commissioner is responsible for reporting the results of the
background investigations to the National Indian Gaming Commission for key employees and
primary management officials only.

(f) For the purposes of obtaining necessary fingerprints for processing, the Tribal Gaming
Commissioner and designated agents shall have Tribal law enforcement authority.

(g) Suitability determination and selection of Gaming Office members is more specifically
Set forth later in this ordinance.

(h) The investigative reports shall set forth, in detail, the:

1) Steps taken in conducting the background investigation;
2) Results obtained;
3) Conclusions reached;

4) The basis for those conclusions.

Section 2.11 Application Fee. The Gaming Office shall set a fee for applications, background
investigations and licenses. All such fees shall be made payable to the Viejas Tribe and

delivered to the Viejas Tribal Treasurer.

Section 2.12 Eligibility Determination. The Tribal Gaming Office shall review a person’s

prior activities, criminal record, if any, and reputation, habits and associations to make a finding
concerning the eligibility of a Gaming license applicant. If the Gaming Office determines that
licensing 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, or jeopardizes the integrity or reputation of the Tribe or its Gaming

Operation, a license shall not be granted.


“a
“
&
Viejas Tribal Gaming Ordinance Amendments 2

1. The word “Code” has been replaced by the word “Ordinance” wherever the former

referred to the Viejas Tribal Gaming Ordinance.

2. Section 1.31 “Viejas Independent Review Board, "(also known as the””Review Board”,

means a four member board appointed by the Council for the review and approval of
Tribal Gaming regulations promulgated by the Commissioner and to hear and decide
appeals relating to licensing actions, impositions of fines, patron disputes, and appeals

pursuant to the Tribe’s Tort Liability Ordinance.

3. Section 2.07 Minimum Internal Control Standards
A. The Gaming Commission shall comply with 25 CFR Part 542 by formally

adopting and making applicable to the Tribe’s gaming operation(s)

internal control standards that:

1. Provide a level of control that equals or exceeds those set forth in
25 CER part 542, as published or as revised by mutual agreement

between the National Indian Gaming Commission and the Tribe;

2. Contain standards for currency transaction reporting that comply
with 31 CFR Part 103; and

3. Establish internal control standards for Class II and Class III games
that are not addressed in the MICS, if any.

B. In order to verify that the gaming operation is in compliance with the
internal control standards adopted pursuant to paragraph A, an
independent certified public accountant (CPA) shall be engaged annually
to perform “Agreed-Upon Procedures” in the manner provided for in 25
CFR 542.3(f).


Section 4.11 License Fees. Licensing fees shall be established by the Commission and

approved by the Tribal Council.

Section 4.12 Gaming Commissioner and Commission Employees. The Gaming

Commissioner and employees shall not require licensing unless otherwise provided for by a
Compact. However eligibility for employment will be at least as stringent as that for any licensing

of a primary management official, including full background checks.

42


Section 3.12 Prior Notice of Actions. In promulgating, amending, and repealing regulations,

the Gaming Commission shall give prior notice of the proposed action to all licensees and other
persons whom the Commissioner has reason to believe have a legitimate and bona fide interest in
such proposed action. Said notice shall inform such persons as to the general nature of the proposed
actions and advise them as to the manner in which comments on said proposed action shall be
received by the Gaming Commission. Upon receipt of input and comments from affected parties,
the Commissioner shall schedule a meeting with the Review Board and present proposed regulations
for approval and adoption. Any disagreements between parties affected by the proposed regulations
and the Commission will be considered by the Review Board prior to adoption. In emergencies, the
Gaming Commission may summarily adopt, amend or repeal any regulation if at the time the
Commissioner determines such action is necessary for the immediate preservation of the public
peace, health, safety, morals, and good order or general welfare, together with a statement of facts
constituting the emergency; provided the Gaming Commissioner and Review Board shall schedule
such emergency action for a regular hearing as soon as possible not to exceed thirty (30) days after

any such emergency action.

Section 3.13 Request for Review Board Action. The General Manager of the Gaming

operation may file a petition in a manner and form approved by the Review Board requesting the
amendment or repeal of a regulation. Upon receipt of the petition, the Chair of the Review Board
shall within thirty (30) days schedule the matter for consideration by the Review Board pursuant to
this chapter, and shall immediately forward a copy of the petition to the Gaming Commissioner. The
Chair of the Review Board will consult with the Gaming Commissioner before ruling on any petition
and will schedule the matter for hearing only if the Review Board disagrees with the Gaming

Commissioner’s recommendation.

26


Section 3.29 Independence of Gaming Office. The Commissioner, Commission Employees,

members of the Council and their immediate families shall receive no personal compensation, gift,
reimbursement or payment of any kind from any person doing or wishing to do business with the
Tribe relating to gaming nor with any person wishing to obtain an unfair advantage in any
authorized wager on gaming. Any property received in violation of this provision, including cash
payments, shall be immediately forfeited to the Tribe and the offending persons shall be prosecuted
to the fullest extent possible. The Gaming Commission shall cooperate to the fullest extent possible
with any Federal or State law enforcement agency to pursue prosecution under applicable Federal or

State law.

35


application, taking into account the objections itemized by the National Indian Gaming Commission.

The Tribe shall make the final decision whether to issue a license to such applicant.

Section 2.16 License Suspension.

(a) If, after the issuance of a gaming license, the Tribe receives from the National
Indian Gaming Commission or other source, reliable information indicating that a key employee or a
primary management official is not eligible for employment under subsection (c) above, the Gaming
Commission shall suspend such license and shall notify in writing the licensee of the suspension and
the proposed revocation.

(b) The Gaming Commission shall notify the licensee of a time and place for a hearing on
the proposed revocation of a license.

(c) After a revocation hearing, the Gaming Commission shall decide to revoke or to
reinstate a gaming license. The Gaming Commission shall notify the National Indian Gaming

Commission of its decision.

Section 2.17 Class III Gaming. In addition to the above, any Tribal-State licensing and/or

certification requirements and procedures for Tribal licensing and/or State certification or licensing
in a Compact between the Tribe and State of California are adopted and incorporated herein by

reference.

Section 2.18 Repeal.

Upon approval of this gaming ordinance by the Chairman of the National Indian Gaming

Commission all prior gaming ordinances enacted by the Tribe are hereby repealed.

21


Section 1.17 “Indian tribe” means any Indian tribe, band, nation, or other organized group or
community of Indians that the Secretary recognizes as--

(a) Eligible for the special programs and services provided by the United States to Indians
because of their status as Indians and

(b) Having powers of self-government.

Section 1.18 “Key employee” means:

(a) A person who performs one or more of the following functions:
1) Bingo caller, supervisor, cashier;
2) Counting room supervisor; and count and drop personnel;
3) Chief of security; and security personnel;
4) Custodian of gaming supplies or cash;
5) Floor manager;
6) Pit boss;
7) Dealer;
8) Cashier;
9) Croupier;
10) Approver of credit;
11) Any employee engaged in finance or accounting functions;
12) Custodian of gambling devices including persons with access to cash and
accounting records within such devices;
(b) If not otherwise included, any other person whose total cash compensation is in excess
of $50,000 per year; or
(c) Ef not otherwise included, the four most highly compensated persons in the gaming

operation.


(h) to manipulate with intent to cheat, any component of a gaming device in a manner
contrary to the designed and normal operational purpose for the component, with knowledge
or hope that the manipulation affects the outcome of the game or prize or with knowledge of
any event that affects the outcome of the game or prize;

(i) to solicit funds or anything of value from any patron or employee;

G) to unlawfully take or attempt to take any chips, coin(s), token(s) machine credits
currency, or anything of value from any patron or employee on the premise;

(k) to refuse to leave the gaming establishment when appropriately advised to do so by a
member of management, security, or the Tribal Gaming Commission;

(1) to damage or attempt to damage either intentionally or negligently any property, gaming
device or equipment, or any article belonging to the Tribe, patron, employee, or Tribal corporation;
(m) under the 18 years of age to make any wager either directly or indirectly in any

Class If or Class III gaming activity;

(0) to either intentionally or negligently cause injury or harm to any patron, or employee or
threaten to do so;

(p) to possess any chips, tokens, cards, device, paraphernalia, ect., that could reasonably be
concluded as useful in cheating, defrauding, manipulating, or altering any game, gaming device
equipment, machine, computer, or supplies;

(q) for any employee to aid, conspire, collude or assist in any way any other employee or

patron to win or have any unfair advantage to win or otherwise acquire anything of value unfairly.

57


CHAPTER V

MANAGEMENT CONTRACTS

Section 5.01 Gaming Commission Approval Required.

(a) Any management contractor shall be licensed by the Tribal Gaming Office. Prior to
licensing any management contract entered into by the Tribe for the operation and management of
any class I] and/or Class III gaming activity must be submitted to the Gaming Commission for
approval, but before approving such contract, the Gaming Commission shall require and obtain the
following information:

1) the name, address, and other additional pertinent background information on each
person or entity (including all officers and management officials comprising such entity) having
direct financial interest in, or management responsibility for such contract and in the case of a
corporation, those individuals who serve on the board of directors of such corporation and each of its
stockholders who hold (directly or indirectly) 10 % or more of its issued and outstanding stock;

2) adescription of any previous experience that each person listed pursuant to
subsection (1) has had with other gaming contracts with Indian tribes or with the gaming
industry generally, including specifically the name and address of any licensing or regulatory
agency with which such person has had a contract relating to gaming.

3) Any further or additional information as may be required under a Tribal/State
Compact entered into between the Tribe and the State;
4) Any further or additional information as may be required under existing rules

and regulations for management contracts required pursuant to IGRA;

43


seven years if the Gaming Commission is satisfied that the capital investment required, and the
income projections, for the particular gaming activity require additional time;

(f) for grounds and mechanisms for terminating such contract, but actual contract
termination shall not require the approval of the National Indian Gaming Commission;

(g) for preference to Tribal members and non-member Indians in hiring of employees for
the gaming establishment.

(h) for all which may be required by the IGRA.

Section 5.03 Percentage of Net Revenue Fees.

(a) A management contract providing for a fee base upon a percentage of the net revenues
of a Tribal gaming activity may be approved by the Gaming Commission if such percentage fee is
reasonable in light of surrounding circumstances. Except as provided in this Section, such fee shall
not exceed 30% of the net revenue;

(b) Upon request of the Council, the Gaming Commission may approve a management
contract providing for a fee upon a percentage of the net revenue of a Tribal gaming activity that
exceeds 30% but not more than 40% of the net revenues if the Gaming Commission and Council are
satisfied that the capital investment required, and income projections, for such Tribal gaming activity

require the additional fee.

Section 5.04 Contract Disapproval. The Gaming Commission shall not approve any contract

if it determines that:
(a) Any person listed pursuant to CFR 25 Section 5.01 (a) (i):
1) isan elected member of the council;
2) has been or subsequently is convicted of any felony or gaming offense,

3) has knowingly and willfully provided materially important false statements of

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Section 1.31 “Viejas Independent Review Board” (also known as the “Review Board”)

means a four member board appointed by the Council for the review and approval of Tribal Gaming
regulations promulgated by the Commissioner, and to hear and decide appeals relating to licensing
actions, impositions of fines, patron disputes, and appeals pursuant to the Tribe’s Tort Liability

Ordinance.

Section 1.32 “Words and Terms” tense, number and gender. In constructing the provisions
of this Ordinance, save when otherwise plainly declared or clearly apparent from the context:

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

(b) words in masculine, feminine and neuter genders shall include all genders;

(c) words in the singular shall include the plural, and in the plural shall include the singular.

Section 1.33 “Working Days” means Monday through Friday except for Federal or Tribal

holidays.